A Study on

COMPENSATION MANAGEMENT, AT BHILAI STEEL PLANT

A Project Report Submitted for the Partial fulfilment of the requirement for the award of the degree of Master of Business Administration (MBA)

Supervised By Dr. Harish Kumar

Submitted By Dileshwar singh Roll No.

2013 Department of management studies Guru Ghasidas Vishwavidyalaya, Bilaspur (C.G.)

Title of the project

Compensation Management at Bhilai Steel Plant

Objective of the study

The following are the objectives of the study: To find out the Current Compensation Policies. To find the importance of Compensation policies Impact of the Compensation in corporate sector. How Compensation policies influence the organizations. To study the procedure of formulating Compensation policies

Introduction
What is compensation management?
Compensation is payment in the form of hourly wages or annual salary combined with benefits such as insurance, vacation, stock options, etc. that can positively or negatively affect an employee's work performance. An ideal compensation management system will help you significantly boost the performance of your employees and create a more engaged workforce thats willing to go the extra mile for your organization. Such a system should be well-defined and uniform and should apply to all levels of the organization as a general system.. Plus youll enjoy clearer visibility into individual employee performance when it comes time to make critical compensation planning decisions. With effective compensation management youll also enjoy clearer visibility into individual employee performance when it comes time to make critical compensation planning decisions. These performance appraisals assist in determining

compensation and benefits, but they are also instrumental in identifying ways to help individuals improve their current positions and prepare for future opportunities.

Why compensation management?

Compensation management is a key factor in attracting and keeping the best employees and ensuring the competitive edge in an increasingly competitive world, compensation and reward system play a vital role in a business organisation. Human resource plays a significant role in bringing about the process of business/ production, therefore, to except a fair share of the business profit is only natural for the employees. A fair compensation system will help in the following An ideal compensation system should encourage the employees to perform better and achieve the standard fixed. It should help in setting an ideal job evaluation and the set standards would be more realistic and achievable. Compensation system should be uniform and consistent. It should motivate and give encouragement those who perform better.

Components of Compensation System

Compensation systems are designed keeping in minds the strategic goals and business objectives. Compensation system is designed on the basis of certain factors after analysing the job work and responsibilities. Components of a compensation system are as follows:

fig :- components of compensation system

Significance of the project

Important for both employers and employees to know their position in the organization helps in discriminating the grades of the employees. Builds up a hospitality between the employers and employees. Helps in stopping the disputes arising in the organization. Helps in giving job satisfaction to the employees. Helps the employees in making understand the importance of their job role.

Research Methodology
Sources of data Type of research Tools for collecting primary and secondary data Sampling plan Limitations of the study

Chapter plan
Chapter 1 Objectives of compensation Elements of compensation Compensation objectives and policies Benefits of compensation Compensation management process

Chapter 2- Company Profile Mission Vision Credo Manufacturing facilities Corporate social responsibility BSP Profile Product-Mix Flow Chart of Bhilai Steel Plant Plant Level Policies Quality Policy HR Policy

Chapter 3- Data analysis and interpretation

Data analysis and interpretation

Chapter 6 -Suggestions and conclusion Suggestions and conclusion

Annexure