HR Project

Wages and Salary Administration
INTRODUCTION
NATURE OF THE INDUSTRY

Clothes are an epitome of a culture. People in different parts of the world have their own
styles of dressing which symbolize their culture and status. The last two centuries have seen an
upsurge in the use of man made textiles like polyster, nylon, acrylic, PP, etc in almost every part
of the world.
The textile industry including readymade garments occupies a unique position in the
Indian economy. Its predominant presence in the Indian economy is manifested in terms of its
significant contribution to the industrial production, employment generation and foreign exchange
earnings. It contributes about 14% to the industrial production and about 4% to the GDP. It has
immense potential for employment generation particularly in the rural and remote areas of the
country on account of its close linkage with agriculture. It provides direct employment to about
35 million persons including substantial segments of SC and ST women. In fact, the textile
industry is the second largest provider of employment after agriculture. The contribution of this
industry to the gross export earnings of the country is about 37% while it adds only 1-1.5% to the
gross import bill of the country. It is the only industry which is self reliant and complete in value
chain that is from raw material to the highest value added products that is garments or made ups.
As a corollary to this the growth and promotion of this industry has a significant influence on the
overall economic development of our country.
Sikkim Manipal University, Distance Education, Bangalore
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INTRODUCTION TO HRM
HRM basically deals with personal factor or manpower. All the resources in the form of
money, materials, methods and machines would be rather insignificant without people or men.
Human Resources are that part of management function which is primarily concerned with the
human relationship with in the organization. Therefore personal management is planning,
organizing, directing and controlling of the performance of those operative functions.
An organization is formed for the fulfillment of certain objectives like earning a desired
rate of profit on investment, exploitation of certain natural resources, development of a given
geographical area supplying to the public some essential goods or services. Machines, Materials,
Money and all other non-human resources are the tools and aids that man uses to achieve his
tasks. Thus, a proper selection of men, their tactful handling and proper management of an
organization.
However this is the most difficult of all the management tasks in an organization. Some
people also say that management means managing men tactfully. One often comes into contact
with HR department. For Example selection, placement, training, discipline, grievance handling,
wage administration, dismissal etc.
DEFINITION OF HRM
Edward Flippo states:
Human Resource Management is concerned with planning, organizing, directing and
controlling of the procurement, development, compensation, integration, maintenance and
separation of human resource of the end that individual organization and social objective and
accomplished.
According to French:
Human Resource Management is the recruitment, selection, development, utilization and
accommodation to human resources by organization. Human Resources of an organization consist
of all individual regardless of their role, who are engaged in any of the organization activities.
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IMPORTANCE OF HRM
The importance of human resource management is as fallows:
Social significance:Proper management of personnels enhances their dignity by satisfying their social needs.
1. Maintaining a balance between the jobs available and the jobseekers, according to the
qualification and needs.
2. Providing suitable and most productive employment which might bring them
psychological satisfaction.
3. Making maximum utilization of the resources in an effective manner.
Professional significance:-
By providing healthy working environment it promotes teamwork in the employees

1.
Maintaining the dignity of the employee as a human being.
2.
Providing maximum opportunities for personal development.
3.
Maintaining healthy relationship between different work groups so that

work is effectively performed.
4.
Correcting the errors of wrong posting and proper reallocation of work.

Significance for individual enterprises:-
It can help the organisation in accomplishing its goals.

1.
Gearing right attitude among the employees through
effective motivation.
2.
Utilizing effectively the available human resources.
3.
Securing willing co-operation of the employees for
achieving goals of the enterprise and fulfilling their own social and other psychological
needs for reorganization, love, affection, belongingness, esteem and self-actualization.
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HRM GOALS:Develop the individual to realize his potential as
an individual to the maximum extent.

Develop the individuals capabilities to perform
his present job.
Develop and maintain a high motivation level of
the employees.
To strengthen superior subordinates relationship.
To strengthen team spirit among different units.
To promote inter-team collaborations.
To
promote
organization
climate
and
development
To meet competition and social obligation
To maintain moral in organization so that

employees remain motivated to carry on their
jobs
To integrate individual goals with that of
organization goals
To attain the forgoing objective economically
and effectively
Human Resource Development in the organizational concept is a process by which the

employee of the organization are helped in a planned way to acquire or sharpen capabilities
required to perform various functions associated with their present or expected in future roles and
to discover and exploit their inner potentials to the professional well being of the employees.
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INTRODUCTION TO WAGES AND SALARY ADMINISTRATION

WAGES: it is the remuneration paid by the employer to the employee for the service rendered by
the employee it may be hourly, daily and weekly.
CONCEPTS OF WAGES:
While evolving wage policy three concepts of wages namely,
1. minimum wages
2. fair wages
3. living wages
Minimum wage:
It is a wage, which provides not only for bare sustenance of life, but also for the
preservation of the efficiency of the worker.
Fair wage:
It is the wage above the minimum wage but below the living wage.
Living wage:
It is one which should enable the earner to provide for himself and his family not only
bare essential of food, clothing and shelter, but a measure of frugal comfort including
education for his children, protection against ill health, measure of insurance etc.
Nominal wage:
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Nominal wage is the wage received expressed in terms of money received.
Real wage:
It is the equivalent to nominal wages minus compulsory deductions example taxes, ESI
etc.
WAGE POLICY IN INDIA

Wage policy refers to all systematic efforts of the government in relation to national wage
and salary system. It includes orders, legislations and so on to regulate the levels or structures of
wages and salaries with a view to achieving economic and social objectives of the government.
Specifically, the objectives of wage policy are:
1. To obtain for the workers a just share of the fruits of economic development.
2. To set minimum wages for workers whose bargaining position is weak
3. To bring about a more efficient allocation and utilization of human resources through
wage and salary differentials.
4. To bring abolish malpractices and abuses in wage and salary payments.
The first step towards the evolution of a wage policy was the enactment of the Payment of
Wages Act, 1936. The main objective of the Act is to prohibit any delay or withholding of wages
legitimately due to the employees. The next step was the passing of the Industrial Disputes Act,
1947, authorizing all the state governments to set up industrial tribunals which would look into
disputes relating to remuneration. Another notable development that led to the evolution of wage
policy was the enactment of the Minimum Wages Act, 1948. the purpose of the Act is the fixation
of minimum rates of wages to workers in sweated industries such as woolen, carpet making, flour
mills, tobacco manufacturing, oil mills, plantations, quarrying, mica, agriculture and the like. The
Act was amended several times to make it applicable to more and more industries. Then came the
Equal Remuneration Act, 1976, which prohibits discrimination in matters relating to remuneration
on the basis of religion, region or sex.
The Constitution of India committed the government to evolve a wage policy. Successive
five-year plans have also devoted necessary attention to the need for a wage policy. Following the
recommendations of the First and Second Plans, the Government of India constituted wage boards
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for important industries in the country. A wage board is a tripartite body comprising
representations from the government, owners and employees. Technically speaking, a wage board
can only make recommendations and wage policies are normally implemented through
persuasion.
In spite of legislations, tribunals and boards, disparities in wages and salaries still persist.
Some of the disparities are:
1.
Employees of MNCs are paid much more than their counterparts in host countries
for identical work.
2. Different industries have different wage and salary structures resulting in disparities in
remuneration for identical work.
3.
Wide gaps exist between wages and salaries of employees in the organized sector
and of those in the unorganized sector, the latter earning much less than the former.
4. Differences exist between earnings of employees in the government sector and those in the
private sector.
5.
Within the government sector, salary differences exist among employees of

different departments.
The disparities are glaring. If an illiterate supervisor in a leather processing unit can
earn Rs12000 plus per month and a half-yearly bonus, how much can a university professor
earn? Rs10000 and no bonus? If an auto driver can earn Rs3000 per month, how much
should a temporary lecturer in a college earn? Rs1200 per month? And remain temporary
forever. A sweeper in L&T is an income tax assessee but a BE or an MBBS degree holder
works for Rs800 per month in a small-scale unit of Rs1200 in a private nursing home,
respectively.
There are clerks in Mumbai who get nearly twice as much as a labour tribunal judge-the
man who arbitrates everyones wages and salaries. And a head clerk in the LIC gets, at the
maximum of his grade, more than half of the salary of a high court judge, not less.
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In order to correct such disparities, the Government of India appointed a Committee
headed by Mr Bhootalingam in 1979. The brief given to the Committee was to suggest rational
and integrated wage policy covering all sectors of the economy. Soon after the Committee
submitted its report, there was hue any cry raised against the recommendations. It was criticized
as anti-labour and impracticable. The report was promptly and predictably shot down.
BASIC KINDS OF WAGE PLAN

There are two kinds of wage and salary payment plans. Those under which remuneration
does not vary with output or the quality of output but depends on time consumed in performing
work known as time wage plans.
The second one is concerned with the output or some other measure of productivity during
a given period of time known as piece or output wage plan.
Balance or debt methods, is a combination of time and piece rates.
ELEMENTS OR INGREDIENTS OF A GOOD WAGE PLAN

1. It should be easily understandable
2. It should be capable of every compensation
3. It should be capable of effectively motivating the employees
4. It should provide remuneration to employees
5. It should be relatively stable.
SALARY
It is the compensation paid to the indirect labour in the form of cash to supervisors,
managers and supporting staff like office assistance, clerks etc, it refers to the monthly rate of pay.
Wages and salaries are subject to annual increments.
COMPENSATION
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Compensation is any form of payment given to employees in exchange for work they
perform. Wages and salaries are compensation paid in the form cash. Compensation consists of
wages, salaries, allowances, bonus, overtime pay and social security benefits.
OBJECTIVES OF COMPENSATION POLICY

1. To recognize the value of all jobs in relation to each other within the company
2. To take account of wage rates paid by companies of similar size, product and philosophy
3. To ensure stable earnings
4.
To enable individuals to reach their full earning potential as far as is reasonably

practicable
5.
To ensure employees share in the companys prosperity as a result of increasing

efficiency.
INCENTIVES
Incentives are monetary benefits paid to the employees in recognition of their outstanding
performance they defined as variable rewards granted according to variations in achievement of
specific results.
ADMINISTRATION OF WAGES AND SALARIES

Wages and Salary Administration should be controlled by some proper agency. This
responsibility may be entrusted to the personnel department or the general company organization
or to some job executive. It is usually entrusted to a committee composed of high ranking
executives. The major functions of such committee are:
1. Approval and/or recommendations to management on job evaluation methods and
findings;
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2. Review and Recommendations of basic wages and salary structures;
3. Help in the formulation of wage policies
4. Coordination and review of relative departmental rates to ensure conformity and;
5. Review of budget estimates for wage and salary adjustments and increases
This committee should be supported by the advice of the technical staff. Such staff
committees may be for evaluation, job description, merit rating, wage and salary surveys in an
industry and for a review of present wage rate procedure and policies. The personnel department
reviews recommendation to ensure compliance with established rules of administration.
PRINCIPLES OF WAGE AND SALARY ADMINISTRATION:

The generally accepted principles governing the fixation of wages and salary are:
There should be definite plan to ensure that differences in pay for jobs are based upon
variations in job or working conditions, mental and physical requirements;
The general level of wages and salaries should be reasonably in line with that prevailing
in labour market;
The plan should carefully distinguished between jobs and employees;
Equal pay for equal wok;
An equitable practice should be adopted for the recognition of individual differences;
There should be a clearly established procedure for hearing and adjusting wage
complaints;
The employees and trade unions should be informed about the procedure used to establish
wage rates;
The wage should be sufficient to ensure for the worker and his family reasonable standard
of living;
The wage and salary structure should be flexible;
Prompt and current payment of the dues of the employees;
For revision of wages, a wage committee should always be preferred to the individual
judgement;
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The wage and salary payments must fulfill a wide variety of human needs, including the
need for self-actualization.
FACTORS INFLUENCING WAGE AND SALARY STRUCTURE AND

ADMINISTRATION
The wage policy are different organizations vary some what. A sound wage policy is to
adopt a job evaluation programme in order to establish fair differentials in wages based upon
differences in job contents. Besides, the basic factors provided by a job description and job
evaluation, those that are usually taken into consideration for wage and salary administration are:
1.
The organizations ability to pay:

Wage increases should be given by those organizations which can afford them. Companies
that have good sales and therefore high profits tend to pay higher wages than those which running
at a loss or earning low profits. All employers irrespective of profits or losses, must pay not less
than their competitors and need pay no more if they wish to attract and keep workers.
2.
Supply and demand of labour:

The labour market conditions or supply and demand forces operate at the national,
regional and local levels and determine organizational wage structure and level. If the demand for
certain skill is high and the supply is low, the result is a rise in the price to be paid for the skills.
3.
Prevailing market rate:

An organization compensation policy generally tends to conform to the wage rates payable
by the industry and the community.

4.
Cost of living:
The cost of living pay criterion calls for pay adjustments based on increases or decreases
in an acceptable cost of living index.
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5.
Trade Unions bargain power:

Trade unions do affect rate of wages. Stronger and more powerful the trade union, the
higher the wages.
6.
The living wage:

The living wage means that wages should be adequate to enable an employee to maintain
himself and his family at a reasonable level of existence.

7.Productivity:
Productivity is another criterion and is measures in terms of output per man-hour. It is not
due to labour efforts alone. Technological improvements, better organization and management,
the development of better methods of production by labour and management, greater ingenuity
are all responsible for increase in production.
8.
Job requirements:
More difficult the job, the higher the wages are paid. Jobs are graded according to the
relative skill, effort, responsibility and job conditions required.

9.
Managerial attitudes:
The managerial attitudes have a decisive influence on the wage structure and wage level
since judgement is exercised in many areas of wage and salary administration.

10.
Psychological and Social factors:

These determine in a significant measure how hard a person will work for the
compensation received or what pressures he will exest to get his compensation increased.
WAGES AND SALARY ADMINISRATION IN SONA SYNTHETICS

Wages and salary administration is the establishment and implementation of sound
policies and practices of employee compensation. It includes areas like wage structure, wage
payments, supplementary payments, surveys of wage and salary etc.
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Here, an attempt is made to study the wages and salary administration in Sona Synthetics
and the areas includes in wages and salary administration. The data is collected and the data has
been analyzed, interpretated and tabulated. Here the data is collected through questionnaire.
WAGE SRUCTURE AT SONA SYNTHETICS

The wage structure is comprised of job of approximately equal difficulty or importance as
determined by job evaluation.
CATEGORIES OF WORKERS AT SONA SYNTHETICS
Skilled
Semi-skilled
Unskilled
Payments are made according to nature of work, responsibility, qualification and experience.
These are difficult categories of employees according to the nature of production. There
are spinning sider, Winding sider, Open End sider, Simplex sider, Blow Room tenter, Carding
tenter, Comber, Drawing tenter, Doffers, Helpers etc. They are classified as skilled, semi-skilled
and unskilled.
The employees have been covered under all the aspects such as:
1.
Payment of Wages Act,
2.
Payment of Bonus Act,
3.
Employees State Insurance Act,
4.
Provident Fund Act,
5.
Minimum Wages Act.
WAGE STRUCTURE FOR WORKERS / LABOURERS

1. Highly skilled
Spinning sider
Winding sider
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Open End sider
Simplex sider
2. Skilled / Semi-skilled
Blow room tenter
Carding tenter
Comber
Drawing
3. Unskilled
Doffers
Helpers
Dearness Allowances
Payment of DA will be subject to a minimum of Rs0.31 per point. The points are to be
given by Shimla Government. These points will be variate as per the variation of the value of
Onions in Shimla. The number of points in the month of January 2010- February 2010 is
calculated at 3935 points. So that, the total DA to be paid in the month of January 2010February 2010 is Rs1220.
Increment
There is no standard date for increment to all the levels. At Sona Synthetics, the levels are:
1. Bottom level
2.
Middle level
3. Top level.
At the bottom level, the categories of workers are as follows:
Skilled
Semi-skilled
Unskilled
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Middle level consists of categories as:
Supervisors
Clerks
Officers.
Top level consists of categories as:
Managers
General manager
Spinning manager
Deputy spinning manager
Hence, the increment is made annually.

Probation
Standard period of probation, both in cases of appointments and promotions are as
follows:
Executives
One Year
Workmen
Six months
Probation may be extended at the discretion of the competent authority.

Night shift Allowance
Workmen detailed to work in 2nd and 3rd shifts are eligible for night shift allowance at
following rates.
2nd Shift
Rs8/- per shift
3rd Shift
Rs12/- per shift
Split Shift Allowance

Workmen in Group-G and below in Canteen, transportation and technical departments
who are paid an allowance of Rs10/- per day of attendance
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Service Weightage Pay
Workmen who were on the regular rolls of the company and who continued to be on rolls
are paid service weightage pay.
Canteen Allowance
Employees in offices where the facility of subsidized canteens have been discontinued are
paid canteen allowance at Rs12/- per day of attendance, limited to Rs350 per month canteen
services are available at such offices on payment of actual charges.
Washing Allowance
Workmen in the categories of drivers, dispatch riders, cooks and waiters/ware washers are
paid washing allowance at the rate of Rs48/- per month. All other employees (including officers)
are paid washing allowance at Rs12 per month.
Attendance Bonus
Every workmen are entitled to get attendance bonus at the rate of one days basic pay as
on 31st December of the year, for each day of unutilized casual leave, subject to maximum of 10
days in a calendar year. They should have worked for the prescribed number of days in a year to
become eligible for bonus.
Conveyance Charges
Conveyance charges incurred by employees on tour on local travel at the temporary duty
station and also for journeys between Railway station/Airport/Air Booking office or vice versa,
where the company vehicle is not used for such purposes, will be reimbursed at the rates
indicated under Road.
Journey DA: For the journey period (by modes other than Air), Ordinary rates of DA as
for stay in Guest House above would be admissible.
Regulation of DA: Full DA will be granted for each completed period of 24 hours absence
reckoned from the time of departure from the head quarters to the time of return. DA will be
admissible at the following rates for fractions of 24 hours:
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1. Less than 6 hours
30%
2. More than 6 hours but less than 12 hours
50%
3. More than 12 hours
Full
Turn out Allowance

Watch and ward and Fire Brigade personnel are paid this allowance at the rate of Rs50 per
month, subject to certification of their good turnout while on duty during the month by the
competent authority.
Lunch/Meal Allowances
Workers who are sent outside the factory premises on office work for more than four
hours in a day including the lunch interval are eligible for Lunch/Meal allowance at the rate of
Rs15 per day subject to a maximum of Rs150 per month.
Canteen Subsidy
Employees working at outstation Bases and other offices of the company where
subsidized canteen facilities are not being provided are eligible for canteen subsidy at the rate of
Rs12 per day of attendance, subject to a maximum of Rs350 per month.
Rent Recovery For Hostel Accommodation
Rent from Officers/Management trainers/Executives trainers who are allotted Hostel
Accommodation is affected at a flat rate.
Daily Allowance
For journey period, an employee is entitled to one Daily Allowance for himself and each
member of his family who is 12 years and above age, for every 24 hours of Journey time, at the
Ordinary Guest House rates of DA. Members of the family below the age of 12 years will be
allowed half Daily Allowance. For journey period of less than 24 hours, DA will be admissible
as indicated under Regulation of D.
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Special allowance to blind and orthopadically handicapped employees
Rs100/- per month Employees who are availing Transport facilities will have to pay the
normal Transport Recovery.
In addition to the above Rs100/- per month, employees who are not availing Transport
facilities will be paid bicycle Allowance or Conveyance Reimbursement as the case may be,
depending on their eligibility for the same.
WAGE DIFFERENTIALS:
Wage differ is different employments or occupations, industries and locations also
between persons in the same employment or grade.
Wage differentials may be;
Occupational differentials or differentials based on skill
Inter-firm differentials
Inter-area or regional differentials
Inter-industry differentials
Differentials based on sex.
IMPORTANCE OF WAGE DIFFERENTIALS:

Wage differentials have a great economic and social significance, for they are directly
related to the allocation of the economic resources of a country, including manpower, growth of
the national income and the pace of economic development. Social Welfare activity depends in a
large measure on such wage differentials as well;
Cause labour to be allocated among different occupations, industries and geographical
areas in the economy is such as manner as to maximize the national product
Enable full employment of the resources of the economy to be attached and
Facilities the most desirable rate of economic progress.
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RESEARCH DESIGN
INTRODUCTION:
This project report has been prepared on Wages and Salary Administration in Sona
Synthetics, Bangalore.
In this project, the following areas are covered.
Wage payments
Rules of wage administration
Supplementary payments
Incentive schemes
Advance and subsidies
Insurance benefits
TITLE OF THE STUDY:

Theoretically whatever we study in management course can be easily accumulated and
understood when the theoretical part is practically used. When every theoretical knowledge is put into
practical, then their problem, solutions, perfections, experience and clear knowledge about the subject
can be gained.
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As a management student I am undertaking project report namely on wages and salary
administration since this plays a very prominent role in every type of organization.
STATEMENT OF THE PROBLEM:
The principle component of any organization is its human resources or people at work. There
should be an effective co-ordination and utilization of these human resources to attain the objective and
goals of an organization.
From time immemorial, people at work have been exploited without suitable compensation,
rewards or wages/salary. But through passing time, the situation has changed with the help of laws and
policies which sees to it that the workers get the compensation for their work.
People at work comprise a large number of individuals of different age, character, sex and self
needs. People do what they do to satisfy their needs.
Therefore the needs of the employees should be analysed, interpreted so that the reward
can be individually designed to satisfy administration the worker get dissatisfied, due to which
social hazards-like strikes, lock-outs, riots occur. A sound wage and salary administration
motivates people satisfies them. This is a study of the prevailing wage and salary administration at
Sona synthetics, Bangalore.
OBJECTIVES OF THE STUDY:
To study the wage and salary structure at Sona synthetics.
To analyze the impact of wage and salary on employees performance.
To elicit information from employee as to find out their perception regarding remuneration
package in the company.
To know the ways and means to popularize the wage and salary system.
To obtain suggestion from the employee regarding wages, salaries, incentives, advances and
terminal / insurance benefits.
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To suggest the organization to improve the remuneration system.
SCOPE OF THE STUDY:
The scope of study is subject to various elements of limitations. The study covers wage
and salary structure for both officers and workers including wage payments, rules of wage
administration, supplementary payments, incentive schemes, advances and subsidies, insurance
benefits etc. The sample of the study is restricted to 50 employees in different departments in
Sona Synthetics.
RESEARCH METHODOLOGY:
A research design is the arrangement of conditions for collection and analysis of data in a
manner that aims to combine relevance to the research purpose with economy in procedure as
stated by Selltiz, Jahoda, Destch and Cook.
In this study, the research design used here is of descriptive/diagnostic type. Descriptive studies
are the ones that aim at describing the characteristics of a group.
In descriptive type of study, a researcher may be concerned with the estimating proportion of
people in a population. Here, as the wage and salary drawn by different section of working class has to
be studied descriptive/diagnostic method has been adopted.
The trunk of research design is the decisions in respect of the data to be collected, the sample to
be selected, and the manner in which the collected data are to be organized.
Sources of Data Collection:
Sources of information are of two types, viz.
1. Primary data and
2. Secondary data
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Primary data is one where information is collected personally and secondary data is where the
information sources are; personal documents, public documents, Government sources, Non-Government
sources etc.
The main tools to collect Primary data are
1. Questionnaire
2. Interview
3. Observation
4. Schedule Method
In this study of wage and salary administration the data collection are through both primary and
secondary.
Primary data was obtained with the help of employees through questionnaires covering the
subject of matter of the study.
The secondary data was obtained from company records.
Technique of data collection:
Company records
Company publications
Questionnaire for employees.
Plan of analysis:
Comparative analysis between the earlier and update pay structure.
Analysis based on employee opinion.
Sampling Procedure:
A sample can afford an estimate of the characteristics of the population in a much shorter time
than would be possible otherwise it is time saving.
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Cluster Random Sampling Method is used to collect the information. In this the population is
first divided into strata and then a simple random sample is taken from each of the strata.
This study is on wage and salary administration. So the workers population is divided into three
levels, viz., low level, middle level and top level. Then, from each strata the sample is taken randomly
and then are brought together to form the total sample.
Sampling Size:
The total number of samples selected for the study is 50 respondents (workers in the
organization) from different departments.
Tools and techniques used for analysis:
I.
II.
Tools
: Tables, Charts and Graphs
Techniques
: Percentage Analysis
Percentage analysis:
Percentage refers to a special kind of ratio. Percentages are used in making comparison between
two or more series of data. Percentage is used to describe relative terms the distribution of two or more
series of data.
Percentage of respondents
No. of respondents
--------------------------------- X
Total respondents
100
LIMTITATION OF THE STUDY:

During the research the following limitations were expressed.
The study was time bound i.e., the research was supposed to be complete within a prescribed
period of time.
During the survey it was difficult to trace the employees in such a large organization.
It was so difficult in adjusting to the changing shifts of the employees.
Regarding the activities conducted by the organization only theoretical knowledge could be
attracted.
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As some employees were not good at English it was difficult to communicate and translate
the questions to them.
CHAPTER SCHEME:
Chapter 1: INTRODUCTION
Chapter 2: REASEARCH DESIGN
Chapter 3: INDUSTRY \ COMPANY PROFILE
Chapter 4: ANALYSIS AND INTERPRETATION
Chapter 5: SUMMARY OF FINDINGS, SUGGESTIONS AND CONCLUSIONS
APPENDICE AND ANNEXURE
BIBLIOGRAPHY
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COMPANY PROFILE
INTRODUCTION:
The multi-million dollar Sona Valliappa Group began with Valliappa Textiles, a company that
supported self reliance to pioneer the textile industry for the last six decades in India. From textiles, the
Group has diversified into interests in commodities exports, construction and now, software
development. Its Sona Towers is the first software technological park in India, developing and deploying
a diverse suite of world class software services
They are in the Southern part of Peninsula India, with their headquarters in Bangalore. They
have four spinning mills, which are each dedicated to spinning different materials, viz., Cotton,
Poly/Cotton, Poly/Viscose and 100% Viscose and 100% Polyester.
The Groups Textile Involvement is goes back 6 decades, started in the year 1938 as now grown
many folds with the Head Quarters at Bangalore and the Mills at Tamil Nadu, Karnataka. The group has
presently at capacity of 65000 spindles. From the small beginning he group has ventured in to many
areas in Textiles and the forward integration. It has ventured in to:
Spinning
Knitting,
Weaving,
Value Added Yarns,
Processing,
Garments
The Group textile mills are scientifically designed with emphasis to Structure and Architecture.
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HISTORICAL BACK GROUND

Leaders carve their own pathways. This best describes Mr. C. Valliappa, the Managing Director
of Sona Valliappa Group., Bangalore and Sona Synthetics, Bangalore.
He has been instrumental in spinning other success stories too. Like Sree Rajendra Mills Ltd.,
Spin well Valliappa Private Ltd., Sree Nithyakalyani Textiles Ltd. and Sona Rajendra Spinners Pvt. Ltd.,
where Mr. C. Valliappa is The Director.
The Indian textile industry has an icon to idolize. Mr. C. Valliappa has sown the seeds of
prosperity in quite a few flourishing organizations. Valliappa Software Technological Park Pvt. Ltd.,
Sree Rajarajeshwari Industries Pvt. Ltd., Karnataka Textile Mills Association and Employers Federation
of Southern India.
Noteworthy associations today also bear the mark of Mr. C. Valliappa. He has also been the
brain behind quite a few. Greater Mysore Chambers of IndustryBangalore, Federation of Karnataka
Chamber of Commerce and IndustryBangalore, Bangalore Management Association, The Southern
India Mills Association-Coimbatore, The Indian Cotton Mills Federation-Bombay, The Synthetic and
Rayon Textile Export Promotion Council, Bombay, The South India Textile Research Association,
Coimbatore, The Karnataka State Industrial Investment and Development Corporation Ltd.-Bangalore.
Tomorrow is around the corner.
ORGANISATIONAL GROWTH OF SONA SYNTHETICS
Services:
Diversification underlines growth. The Sona Group has an established presence in plantations,
constructions, investments, software and textile.
Pepper, cardamom and coffee come under the wing of our plantations division. While our
construction company has been catering to the real estate needs of South India, especially Bangalore,
This also happens to be Indias IT centre where top software companies and exporters are setting up
operations. Valliappa has been catering to their needs by offering instant start and uplink facilities.
Page 26
Headquartered in South India Valliappa Textiles is today an international name. 50% of its
produce goes to countries like Belgium, Italy, Germany, Portugal, Bangladesh, Sri Lanka, Malaysia,
Australia, South Korea, etc.
Sree Valliappa Investments has earned mileage in terms of trust and faith of the people it
services. In fact, we are possible for quite a few futures. Diversity adds new dimension to Valliappa and
a new meaning to lives.
Opportunities:
Philosophy of their joint ventures, The Sona valliappa Group over the years has matured into a
group which imbibes certain core values. It believes in core competences, corporate government, and
integrity and in building societies establishing long standing relationships.
Arising from these core values, philosophy of forming partnership and joint ventures, over the
years, they have built up core competences in building, setting up and running large production centers.
Each of their normal business units, sizes from about 200-500 people. All centers are aesthetically built.
They look for partnership and joint ventures globally who have there core competence with
technology and markets. India being the market with nearly one billion people having the largest number
of middle class families, nearly 400 million. It also has 80000 engineering students graduating out every
year. They have in their troop educated institutions established with over four decades of experience,
educating quality students.
Together, they will build an organization imbibing the core strengths of technology, production,
market and management.
Page 27

Commitments:
Awareness and responsibility for the environment come naturally to some.
The Sona Group is committed to uplifting the community by offering training, consultancy and
other related services. The Thiagarajar Polytechnic was set up to offer diploma and post diploma
courses and part-time courses according to the exact needs of the industry, business and community.
Through state-of-the-art equipment, qualified and trained faculties and excellent infrastructure facilities.
Established in August 1958, the polytechnic caters to fields like textiles, computers, and civil,
mechanical, electrical and electronic engineering. The polytechnic is a forerunner in the field of
technical education and will continue to tread the path of excellence.
In fact, this is not just a belief, but a commitment on an individual level, for the benefit of the
society.
VISION:
Their vision is to be a global player in the textiles business and by the tear 2008, to have about
10000 employees. This vision will be achieved with a highly skilled workforce, who is trained to
achieve high quality, in their support services.
MISSION:
Sona groups mission is to be a world class company offering quality products with high level
accuracy to the delight of customers.
OBJECTIVES:
To ensure availability of Total Quality People to meet the organizational Goals and Objectives
To have a continuous improvement in knowledge, skill and competence (Managerial Behavioral
and Technical)
To promote a Culture of Achievement and Excellence with emphasis on Integrity, Credibility and
Quality
To maintain a motivated workforce through empowerment of individual and Team-building
To enhance organizational learning
Page 28

To play a pivotal role directly and significantly to enhance productivity, profitability and improve
the Quality of work life.
STRATEGY:
To be in total alignment with corporate strategy
Maintain Human Resource at optimum level to meet the objectives and goals of the company
Be competent in Mapping, Analysis and Up-gradation of knowledge and skills including
Training, Re-training Multi-skill etc
Cultivate leadership with shared Vision at various levels in the organization
Focus on development of core competence in High-Tech areas
Build Cross-functional Teams
Create awareness of Mission, Values and Organizational Goals through and the company
PRODUCTS AND ITS FEATURES:
Product Range (Yarn Section)
This section will have two product categories:
1. Knitting Yarns
2. Woven Yarns
Knitting Yarns
To manufacture these yarns state of the art automatic Schlafhorst, Rieter, Lakshmi Rieter
machines are used. All yarns are waxed, twisted and steamed with low torsion to import softness to the
yarn.
As the feel is most important, we use the best cotton in SHANKAR-4/6 and the end results is of
LOW CV% of 8% to 9% and low Imperfections most counts below 100. All Hosiery yarns are Autoleveled and Auto-coned.
The counts offered for knitting are as follows:Ne. 8/1, 10/1 and 12/1 for fleece (Brushing)
Page 29

Ne 20/1, 24/1, 26/1, 30/1, 32/1, 40/1, 60/1, 60/2
100% Cotton Polyester, Viscose, Polyester/Cotton and Polyester/Viscose. If required the Group can also
Produce KNITTED FABRICS from its Knitting Division.
Woven Yarns
This product category is further differentiated into two more subdivisions
1. Open End Spun Yarn
2. Ring Spun Yarn
The blends that are available as classified under 1) 100% Cotton, 2) 100% Polyester, 3) 100%
Viscose, 4) Polyester/Cotton, 5) Polyester/Viscose, 6) Viscose/Cotton.
COUNTS OFFERED IN WOVEN YARNS
MATERIAL
100% Cotton
Open End Spun yarn in Ne

6/1, 7/1, 10/1,
Ring Spun Yarn in Ne

12/2, 14/2, 20/1, 20/2, 23/1,
12/1, 14/1, 16/1,
23/2, 24/1, 30/1, 30/2, 36/2,
20/1, 24/1, 26/1,
40/1, 40/2, 60/1, 60/2, 80/1,
10/3, 12/3, 20/2, 24/2
80/2, 84/2, 90/1, 94/2, 100/1,

100/2, 100/2-HT (High Twist)
100% Polyester
6/1, 8/1, 10/1,
20/1, 30/1, 30/2, 40/2, 50/2,
14/1, 18/1, 20/1,
80/1
12/3, 24/3
100% Viscose
12/1, 16/2, 20/1,
24/1, 30/1, 30/2, 40/1, 40/2
2/20
Polyester/Cotton
6/1, 8/1, 9/1, 10/1,
20/1, 24/1, 30/1, 30/2, 36/2,
Mix.Ratio: 65/35, 52/48
12/1, 14/1, 16/1,
40/1, 40/2, 50/2, 56/2, 60/1,
and 35/65
20/1, 22/1
60/2, 66/1, 80/2
Polyester/Viscose
6/1, 8/1, 9/1, 10/1,
20/1, 24/1, 30/1, 30/2, 36/2,
Mix.Ratio: 65/35, 52/48
12/1, 14/1, 16/1,
40/1, 45/1, 40/2, 60/1, 60/2,
Page 30

and 35/65
20/1, 22/1
80/2
Viscose/Cotton
20/1
30/1, 40/1
Mix.Ratio: 55/45 and

65/35
If required the Group can also produce WOVEN FABRICS in its Woven Division.
Yarns
They put in their best to give the best. The raw material they use of the finest quality available.
It involves intensive pre-cleaning, removing foreign fibers and other contamination normally found in
cotton. Ultra-violet light identifies pollutants that the naked eye cant see which are then removed and
sent for micro spinning to determine the standard and quality of yarn. And no, they arent spinning a
yarn, when they are talking of all this quality!
Basically, yarns come in two varieties. Knitting/hosiery and woven. All shirts, undergarments,
nightwear, swimwear are made with Knitted yarn. Woven yarn has a much wider product base; denim,
superfine Indian saris, sheeting, suiting, shirting, dhotis, etc. Thats because woven yarns are blended.
Gassed Mercerized Yarns are the favorites of most of customers.
Sewing Threads
Their sewing threads are also known as Shakti Threads, made from 100% Super High Tenacity
Polyester that even the toughest stitching applications cant beat. What makes them so strong is their
uniformity in every dimension.
Each and every centimeter of yarn spun is weighed by the
microprocessor and if incorrect, automatically adjusted.
State-of-the art European Autolevelled
Machines ensure millimeter to millimeter uniformity in length and strength!

Moreover, Shakti Threads was a pioneering event in India! It was the first in India to use knotless
yarn for Sewing Thread (spliced yarn). The latest Automatic Schlafhorst Cone Winders equip sensing
and cutting away minute faults to improve stitching efficiency. Our Two-For-One Twisters (TFO) lend
Valliappa a distinction of sorts. It is one of the very few in India to offer this kind of sophisticated
Page 31

twisting everything from dyeing and finishing of polyester threads to mercerizing, gassing and dyeing of
cotton threads.
Industrial threads
Bheem Shakthi Industrial Threads are yarns eighth average resultant counts in twisting ranging
from Ne 0.7 to Ne 7. Both single ply as well as corded/cable can be twisted. Whether it is cotton,
polyester, viscose, blend of polyesters and cotton or blend of polyesters and viscose. Their state-of-theart equipment does the needful. P.S. Metler for Assembly winding up to 12 Ends/Ply, Volkman Machines
for Two for One twister (TFO) and Weller heavy double with Cop weights of 2 kilos.
Purity is strengthening. A special manufacturing unit is reserved solely for Bheem Shakthi
Industrial Threads. This leaves no room for contamination. Which is why their threads are extremely
strong and ideal for adverse industrial canvas, belting, conveyor belts, tyre cord, filter fabric, shoe
stitching and construction fabrics.
Stretch Yarns
The world today is moving to a fitness and fashion oriented. This has brought an entire
evolution, in the way yarns and fabrics are made today.
Body fit yarns and stretch yarns facilitate snug as well as easy body movement. These yarns
known as elasthane yarns like Lycra and Dolstrone.
These yarns and fabrics make ideal sports and leisure wear as they wear well and are cool and
comfortable as well.
These yarns are made in two different processes:
1. Core spinning Method: In this method, the Elastane Core is introduced in the Spinning Process.
This is ideally suited for knitting yarns and in certain weaving applications.
2. Core Twisted Yarns: These yarns are suites for a broader spectrum of usage from denim to socks
and suiting to blouses. They are used as weft stretch and warp stretch.
These yarns are offers from Joint Venture with Worldtex/Filix a world leader in elastic yarns and
narrow elastic fabrics.
Page 32

Worldtex has in its group Filix a premier stretch yarn manufacturer in France.
KNITS AND WOVENS

Cool Knitted Fabrics from Sona Valliappa Group
Valliappa prides itself in using the best available machinery, like the Mayer & Cie. Knitting
machines that are fitted with bare Lycra attachments.
They believe though that quality goes much beyond machinery. Its down to the very raw
material we use which is why Valliappa manufacturers the very yarn itself. Further, stringent quality
inspections of yarn are carried out in the pre-knitting stage. Sophisticated drying technology then gives
our products a controlled shrinkage guarantee.
Suga is India means comfort.
That is what Sona Valliappa Group has been providing to
customers and people at large, providing the comfort to customers from the 1930s.
A vertical integration, The SONA GROUP enters into the field of knitting two decades back.
They identify Mayer & Cie and Terrot machines, to be the machines would knit future with. From a
small beginning, now can offer fabrics in:
Single Jersey
Polo PK
Rib
Interlock
Fleece
Waffles
Lush/Terry
Jacquard
All the above fabrics can be supplied in various other man made fibers like polyester, viscource, silk
etc., and blends of poly cotton/poly viscose, viscorce-cotton. All the above fabrics are also available
with elasternomo (Lycra).Can also offer:
Yarn-dyed fabrics (in hthp Wessel, azo free, color fasters guaranteed)
Page 33
Fabric-dyed (soft flow, color fasteners guaranteed, compacted and shrinkage guaranteed)
Body Size fabrics
Wide Width fabrics
Printed rolls (Rotary printed up to 8 colors with pigment and reactive printing)
Packing:
The fabrics are offered either in tubular form, or they can be cut, slit and gummed.
Their normal roll size is 20 to 30 kilos per roll. And can also pack in jumbo rolls, ready to print up to
100 kilos.
Flat knitting:
With growing needs of the T-shirt industry, they have ventured into flat knitting, were we
produce collars and cuffs (plains and jacquards for basic T-shirts and for high fashioned, high value
garments. They have the best machines to produce this Shima shakai. This machine can produce many
designs up 20 different jacquard patterns including BIRDS EYE, GANGA, HAPPY, SUGA, BIRDS
EYE WITH HARRING BONE TIPPING, apart from basic.
Woven Fabrics:
From here, weaving division takes over; weaving top-of-line yarns with the help of some of the
most reputed machinery in the world. Our wide-width looms are the most sorts after, world-wide i.e., on
Seltzer type wide width looms up to 118 (also possible split) with Tuck-in Selvedge with a fabric
weight of up to 400 gms/sq.mtr and also Ruti-C looms with 63, 93 and 104 fabric.
It only follows, that products are approved after a meticulously close scrutiny in the finished
fabric stage.
Woven Range
The range includes premium quality cottonsloom state grey as well as finished fabrics.
Superfine Grey Fabrics for Shirting.
Superfine Sheeting in loom state grey in widths up to 130.
Superfine Shirting-Pin Point Oxfords, Poplins and Twills using 80/2 and 100/2 C yarn.
Page 34
Superfine Sheeting up to 400 Thread Count in widths up to 130.
Specialized Dobby Patterns in Viscose Filaments on Cotton.
Superfine Voiles up to 320 cms grey width.
Printed Satins, Poplins, Twills, Satins and Lawn Fabrics.
Types of Woven Fabric

Drill is a strong twilled cotton fabric, used in mens and womens.
Duck in a heavy, durable tightly woven fabric. Heavy weight drill is used in awnings, tents, etc. Lighter
duck is used in summer clothing.
Flannel cotton is plain or twill weave with a slight nap on one or both sides.
Flannelette is a soft cotton fabric with a nap on one side.
Oxford is shirting fabric with a lustrous, soft finish. It is characterized with narrow stripes and can be
woven in plain or basket weave. Also a term used for wool fabric that has black and white fibers. Poplin
is a plain weave fabric with a cross-wise rib. Warp Weft Read Pick Weave Type Width
Poly/Cotton 52/48 30 * 30 76 68 63, 67, 104, 114
,, ,, ,, 30 * 30 76 56 63, 104, 114
,, ,, ,, 40 * 40 110 90 ,, ,, ,
Poly/Cotton 65/35 20 * 20 94 60 2/1 ,,
,, ,, ,,, 14 * 14 82 60 2/1 63
,, ,, ,, 30 * 30 133 72 2/1 63
,, ,, ,, 16 * 12 108 56 3/1 63
,, ,, ,, 12/2 * 7 55 42 63
,, ,, ,, 12/2 * 12/2 55 42 63
Grey fabric on rolls
Bleached on tubes
Bleached fabrics on open width (cut, slit and gummed)
Dyed and finished in tubular or open and slit
Quality
Quality Policy:
Quality Policy of Sona Group shall be to spin and supply yarns of excellent quality to the total
satisfaction of its customers.
Page 35

This shall be achieved through continuous improvements in processes with the involvement of
employees, at all levels of the organization.
Main Features:
1. Intensive training to operators in work practices and involves them in activities concerning quality
and growth.
2. To develop and establish documented quality system to translate and implement the quality policy in
all activities of the organization.
3. To develop and maintain mutually beneficial relationship with business associates to continuously
improve our products.
4. To conduct our business in a manner that is socially acceptable and commands respect, social
responsibility is shouldered by complying with the laws of the state. Conventions of the society and
by maintaining a safe, clean and healthy environment.
5. To achieve and sustain reputation for quality.
Testing Equipments Used:
Testing Done for Fibers.
Fiber fineness Tester for Micronaire,
Shirley Trash Analyzer for Trash content in material.
Uster fibro graph for length testing designs.
Product development-Technicians have done a lot of R&D on silk knitting, and now we also have silk
knitted fabric in knitted range.
Inspection, Testing and Quality:
They have the eye for quality right from the yarn stage and fabrics are also put through the same
quality awareness.
Quality control and standards followed.
Humidity controlled atmosphere relative humidity (r.h.) are maintained.
Steamed-yarns to standardized twist and to reduce the snarling.
Gsm grams per square meter are checked systematically and controlled.
Page 36

Computers the facilities of special soft ware to indicate numbers of defects per role along with min
and max permitted limits.
Production are also computerized to monitor the day to day production.
Foremen training the men and women involved in the shop floor are trained periodically, with modern
methods and ideas to identify all quality parameters.
Raw Materials
Stemming from the fact that we are basically spinners, they pay a paramount attention in
choosing yarns strictly. They look for appearance, feel for comfort and scout for the quality. They strive
for all this so that we may have a SUGA Fabric.
They scrutinize the yarn with uster testers to find out how many faults/impurities the yarn
may have. They also check the uster classimat for even a minuscule aberration that may impede
the SUGAM of our Customers. They go into the minute details as analyze the yarns across the
diameter and length. They also believe that the human eye and the black boards are tested for the
visual appearance. Through experience, we have also discovered that there could be hidden
defects, which arent visible to the naked eye. So they have special ultra violet equipments which
magnify and intensify, in the ultra violet light and showing the contamination in the fabric. Each
and every centimeter of the fabric is inspected before being packed.
Their people are trained to look at yarns and fabrics, with an eye for detailed. They inculcate in
them the character of being a critic, so that they may evaluate and be critical about the yarns and fabrics,
and the way of doing things to evolve what the Japanese put it Kaiezian.
The spectrum of the fabrics range from god given cool cottons to mixing manmade with god
made and generating Poly/Cotton, Poly/Viscose, Viscose/Cotton, 100% Viscose and 100% Polyester
Fabrics.
The time and work spent on nearly a decade has helped them to associate continuously
with some of the leading brands in the world and this has in turn made their processed fabrics
very well accepted round the globe. Their Endeavour is to produce quality knits using yarns
which are proven tested, using machines which have stood the test of time, using testing methods
from which they have learnt and improvised over the years to give Suga Fabrics.
Page 37
DATA ANALYSIS AND INTERPRETATION

TABLE NO. 1:
TABLE SHOWING AGE GROUP OF THE EMPLOYEE
Age Group
No. of Employees
Percentage
20 - 30
04
30 40
27
54
40 50
14
28
50- 60
05
10
Total
50
100
Analysis:
Out of the total respondents, 80% of them belong to age group of 21-30 and other 54% of
age group belongs to 31-40 and 28% of respondents belong to 40-50 and the remaining 10%
belong to group of 51-60.
Page 38

GRAPH No. 1:
Interpretation:
From the above graph it is clear that most of the respondents belong to the age group of
31-40 and 41-50. It shows that majority of the employees in the company are in the age group of
31 to 50 years.
Page 39

TABLE No.2:
TABLE SHOWING THE DEPARTMENT IN WHICH THE RESPONDENTS ARE
WORKING
SL. No.
Department
No. of Employers
Percentage
1.
Winding
10
20
2.
Spinning
20
40
3.
Technical
05
10
4.
Open End
04
08
5.
Preparatory
05
10
6.
Others
06
12
Analysis:
The above table indicates 20% of respondents working in winding department, 40% of
respondents are working in spinning department, 10% of respondents are working in O.E
department, 5% are in preparatory and remaining 12% of respondents are working other that is
Ceuding, Blow room, Powerhouse etc.
GRAPH No. 2:
Page 40
CHART SHOWING THE

DEPARTMENT IN WHICH THE
RESPONDENTS ARE WORKING
12%
20%
10%
8%
10%
WINDING
OPEN END
40%
SPINNING
PREPARATORY
TECHNICAL
OTHERS
Interpretation:
From the above graph it is clear that majority of the respondents are working in Spinning
department. So spinning department has absorbed majority of the total employees. It is
considered to be a key function or department in the factory.
TABLE No.3:
Page 41

TABLE SHOWING THE GENDER OF RESPONDENTS
Gender
No. of Employees
Male
50
Female
--
Analysis:
The table indicates that all the respondents are Male. The workers who are selected for
the purpose of my study are male workers. Because women workers are absolutely nil in the
factory. It shows that there is gender inequality.
GRAPH No.3:
Page 42
CHART SHOWING THE GENDER OF

RESPONDENTS
50
50
45
40
35
NO. OF
30
EMPLOYEE 25
S
20
15
10
5
0
0
MALE
FEMALE
GENDER
Interpretation:
From the above graph it is clear that only men workers are working but not a single
woman worker. So, it is clear that the role of women workers has deprived.
Page 43

TABLE No. 4:
TABLE SHOWING CATEGORY OF PAY STRUCTURE
SL. No.
Category
No. of employees
Percentage
Skilled
27
54
Semi-skilled
18
36
unskilled
10
Analysis:
The above table indicates that out of the total respondents, 54% are considered as skilled,
36% of respondents are considered as semi-skilled and 10% of respondents are considered as
unskilled labour. More than half of the total workers are skilled workers. It shows that the quality
of work done by skilled worker is also good.
GRAPH No. 4:
Page 44
CHART SHOWING CATEGORY OF

PAY STRUCTURE
10%
54%
36%
SKILLED
SEMI-SKILLED
UNSKILLED
Interpretation:
From the above graph it can be observed that most of the respondents are considered as
skilled labour. It implies that the company has given more importance for skilled workers.
Page 45

TABLE NO. 5:
TABLE SHOWING THE BASIC PAY OF RESPONDENTS
SL. No.
Basic Pay (Rs)
No. of Employees
Percentage
1.
2000 4000
05
10
2.
4000 6000
27
54
3.
6000 8000
11
22
4.
8000 and above
07
14
Total
50
100
Analysis:
The above table shows that 10% of respondents draw between Rs. 2000-4000 as basic pay,
54% of them between Rs. 4000-6000, 22% of them between Rs. 6000-8000 and rest 14% of them
draw Rs. 8000 and above as basic pay respectively. It implies that the majority of the workers are
falling in the pay scale of Rs6000-8000.
GRAPH No. 5:
Page 46
CHART SHOWING THE BASIC PAY OF

RESPONDENTS
NO. OF EMPLOYEES &
PERCENTAGE
60
54
50
40
27
30
20
10
22
14
11
10
BO
VE
80
00
&A
60
00
-8
0
00
00
-6
0
40
00
20
00
-4
00
0
BASIC PAY
Interpretation:
From the above graph it is clear that majority of the respondents draw Rs. 4000 6000 as
basic pay.
TABLE No. 6:
TABLE SHOWING NUMBER OF INCREMENTS TO EMPLOYERS IN A YEAR
Page 47

SL. No.
No. of Increments
No. of Respondents Percentage
1.
One
27
54
2.
Two
18
36
3.
Three and above
05
10
Total
50
100
Analysis:
The above table clearly shows that 54% of respondents have only one increment in a
year, 36% of respondents have two and rest 10% of respondents have three and above increments
in a year.
GRAPH No. 6:
Page 48
CHART SHOWING NO. OF

INCREMENTS IN A YEAR
10%
54%
36%
ONE
TWO
THREE & ABOVE
Interpretation:
The graph above clearly shows that most of the employees have only one increment per
year. Majority of the workers are getting only annual increment.
TABLE No.7:
Page 49

TABLE SHOWING NUMBER OF EMPLOYEES GETTING BONUS IN SONA
SYNTHETICS
SL. No.
Response
No. of respondents
1.
Yes
50
2.
No
Analysis:
By analyzing the table above it can be clearly visualized that all the respondents are
entitled to get bonus.
GRAPH No. 7:
Page 50
CHART SHOWING NO. OF EMPLOYEES

GETTING BONUS IN SONO
SYNTHETICS
50
50
45
40
35
NO. OF
30
RESPONDE 25
20
NTS
15
10
5
0
0
YES
NO
RESPONSE
NO. OF RESPONDENTS
Interpretation:
From the above graph it is clear that all the respondents are entitled to get bonus. It is a
motivating factor which increases the work efficiency and employee morale.
Page 51

TABLE No. 8:
TABLE SHOWING THE RESPONDENTS RECEIVE THE BONUS SCHEME
ACCORDINGLY
SL. No.
Periods
No. of employees
Percentage
1.
Quarterly
2.
Half yearly
04
3.
Yearly
48
96
Analysis:
The above table shows the response of the employees regarding how according they
receive their bonus. 96% of the employees opinion that they receive bonus yearly and 4% of the
employees have opinion they receive bonus half yearly.
Page 52

GRAPH No. 8:
CHART SHOWING THE

RESPONDENTS RECEIVE THE BONUS
SCHEME ACCORDINGLY
0% 4%
96%
QUARTERLY
HALF-YEARLY
YEARLY
Interpretation:
From the above graph it can be observed that the company is giving bonus in yearly
basis.
Page 53

TABLE No. 9:
TABLE SHOWING ALLOWANCE RECEIVED BY THE RESPONDENTS
SL. No.
Types
of No. of employees
Percentage
allowances
1.
Conveyance
09
18
allowance
2.
Canteen allowance
50
100
3.
Uniform allowance
12
24
4.
Traveling allowance
35
70
Analysis:
The table indicates that all the respondents receive all canteen allowance, 70% of
respondents receive traveling allowance, 24% of respondents receive uniform allowance and
18% of respondents receive conveyance allowance.
GRAPH No. 9:
Page 54
CHART SHOWING ALLOWANCES RECEIVED BY THE

RESPONDENTS
100
100
NO. OF
EMPLOYEES
IN
PERCENTAGE
80
70
60
50
40
20
18
0
CONVEYANCE
ALLOWANCE
12
24
35
UNIFORM
ALLOWANCE
TYPE OF ALLOWANCES
NO. OF EMPLOYEES
PERCENTAGE
Interpretation:
From the above graph it is clear that all the respondents receive canteen allowance and
most of the respondents receive traveling allowance.
TABLE No. 10:
Page 55

TABLE SHOWING BENEFITS RECEIVED RESPONDENTS
SL. No.
Types of benefits
Number of
Percentage
employees
1.
Medical benefits
50
100
2.
Housing benefits
34
68
3.
Educational benefits
07
14
4.
All of the above
07
14
Analysis:
The table indicates that all the respondents receive medical benefits, 68% receive
housing benefits, 14% receive educational benefits and 14% of respondents receive all the
benefits mentioned in the table.
GRAPH No. 10:
Page 56
CHART SHOWING THE BENEFITS

RECEIVED BY RESPONDENTS IN
PERCENTAGE
100
100
68
PERCENTA
50
GE
14
0
PERCENTAGE
14
MEDIC HOUSI EDUCA ALL OF

100
68
14
14
TYPES OF BENEFITS
Interpretation:
From the above graph it is clear that all the respondents are entitled to medical benefits
and most of respondents are entitled get housing benefit. The company has taken care about
health aspect of workers. It also gives importance for housing facility.
TABLE No. 11:
Page 57

TABLE SHOWING THE NUMBER OF DAYS OF CASUAL LEAVE THE
RESPONDENTS ARE ENTITLED TO IN A YEAR
SL. No.
No. of CL (in days)
No. of employees
Percentage
1.
5 10
16
2.
10 15
10
20
3.
15 20
17
34
4.
20 and above
15
30
Analysis:
The above table clearly shows that 16% of respondents are entitled to 5-10 days of casual
leave in a year, 20% of respondents are 10-15, 34% are 15-20, and remaining 30% of
respondents are entitled to above 20 days of casual leave in a year.
GRAPH No.11:
Page 58
CHART SHOWING THE NO. OF DAYS

OF CASUAL LEAVE THE
RESPONDENTS ARE ENTITLED TO
IN A YEAR
16%
30%
20%
34%
05 TO 10
10 TO 15
15 TO 20
20&ABOVE
Interpretation:
The above graph clearly shows that majority of respondents are entitled to 15-20 days of casual
leave.
Page 59

TABLE No. 12:
TABLE SHOWING INCENTIVES PROVIDED TO RESPONDENTS
SL. No.
Response
No. of employees
Percentage
1.
Yes
50
100
2.
No
Analysis:
The table shows that all the respondents receive incentives provided by the organization.
GRAPH No. 12:
Page 60
CHART SHOWING INCENTIVES PROVIDED TO

RESPONDENTS
100
100
90
80
70
60
PERCENTAGE 50
40
30
20
10
0
0
YES
NO
RESPONSE
Interpretation:
From the above graph it is understandable that all the respondents receive incentives. It
leads to quality work and job satisfaction. The company is compensating properly.
TABLE No. 13:
Page 61

TABLE SHOWING THE PAYMENT OF INCENTIVE LIMITED TO
SL. No.
Rating
No. of employees
Percentage
1.
Hard work
2.
Productivity
40
80
3.
Efficiency
05
10
4.
Overtime
05
10
Analysis:
The above table indicates the responses regarding. The payment of Incentives to the
employees based on limits. 80% of employees say that incentives are provided on the basis of
productivity and 10% of employees say that it is on the efficiency limit, and 10% of employees
say that it is based on the overtime.
GRAPH No. 13:
Page 62
CHART SHOWING THE PAYMENT OF

INCENTIVE ON THE BASIS OF
RATINGS
10%
10%
0%
80%
HARD WORK
EFFICIENCY
PRODUCTIVITY
OVERTIME
Interpretation:
It is clear from the above graph that the company pays incentives to their employees on
the limits of productivity. The company has given more significance for increasing productivity.
TABLE No. 14:
Page 63

TABLE SHOWING THAT THE SALARY OF RESPONDENTS AT PAR WITH THEIR
EDUCATION
SL. No.
Response
No. of employees
Percentage
1.
Yes
14
28
2.
No
36
72
Analysis:
The above table shows the response of employees regarding their salary at par with their
education.. 72% of the employees are not satisfied with salary they receive at par with their
education and remaining 28% of the employees are satisfied to that.
GRAPH No. 14:
Page 64
CHART SHOWING THE SALARY OF

RESPONDENTS AT PAR WITH THEIR
EDUCATION.
28%
72%
YES
NO
Interpretation:
From the above graph it is clear that more number of employees are not satisfied with
their salary which they receive at par with their education. Majority of the women are dissatisfied
with the prevailing salary structure.
TABLE No. 15:

TABLE SHOWING INSURANCE BENEFITS PROVIDED OT RESPONDENTS
Page 65
SL. No.
Response
No. of employees
Percentage
1.
Yes
50
100
2.
No
Analysis:
The above table shows that the response of employees regarding he insurance benefits
provided by the organization. By analyzing the table above it can be clearly visualized that all
respondents are entitled to insurance benefits provided by the organization.
GRAPH No. 15:
Page 66
CHART SHOWING THE INSURANCE BENEFITS

PROVIDED TO RESPONDENTS
100
100
90
80
70
60
PERCENTAG
50
E
40
30
20
10
0
0
YES
NO
RESPONSE
Interpretation:
The graph clearly shows that all the employees are entitled to insurance benefit provided
by the organization. The company has adopted good social security measures. It safeguards the
future of worker.
TABLE No. 16:
Page 67

TABLE SHOWING PROVISION OF GRATUITY PAYMENT ON RETIREMENT OF
RESPONDENTS
SL. No.
Response
No. of employees
Percentage
1.
Yes
50
100
2.
No
Analysis:
The above table indicates that all the respondents receive the gratuity during their
retirement.
GRAPH No. 16:
Page 68
CHART SHOWING THE PROVISION OF GRATUITY

PAYMENT ON RETIREMENT OF RESPONDENTS
100
100
90
80
70
60
PERCENTAGE 50
40
30
20
10
0
0
YES
NO
RESPONSE
Interpretation:
From the above graph it is clear that all the respondents are entitled to Gratuity payment.
The future of the worker is also secured. It is one of the important social security measure.
TABLE No. 17:
Page 69

TABLE SHOWING NUMBER OF RESPONDENTS GETTING FESTIVAL ADVANCE IN
THE YEAR
SL. No.
Response
No. of employees
Percentage
1.
Yes
28
56
2.
No
22
44
Analysis:
The table indicates that 56% of respondents receive festival advance and remaining 44%
of respondents do not receive.
GRAPH No. 17:
Page 70
CHART SHOWING NO. OF RESPONDENTS

GETTING FESTIVAL ADVANCE IN THE YEAR
44%
56%
YES
NO
Interpretation:
From the above graph it is understandable that most of the respondents receive festival
advance while only few of employees are not entitled to festival advance.
TABLE No. 18:

TABLE SHOWING ESI AND PF FACILITIES PROVIDED TO RESPONDENTS
Page 71
SL. No.
Response
No. of employees
Percentage
1.
Yes
50
100
2.
No
Analysis:
The above table indicates that all the respondents receive the ESI and PF facilities. The
company has taken care about the health of the workers and dependents. It safeguards the health
and future of workers.
Page 72

GRAPH No. 18:
CHART SHOWING ESI AND PF

FACILITIES PROVIDED TO
RESPONDENTS
100
100
80
PERCENTA
60
GE OF
EMPLOYE 40
ES
20
0
0
YES
NO
RESPONSE
Interpretation:
From the above graph it is clear that all the respondents are entitled to ESI and PF
facilities.
Page 73

TABLE No. 19:
TABLE SHOWING EMPLOYEE SATISFACTION WITH RESPECT TO BENEFITS
PROVIDED BY THE ORGANISATION
SL. No.
Rating
No. of employees
Percentage
1.
Very Poor
01
02
2.
Poor
05
10
3.
Average
18
36
4.
Good
19
38
5.
Very Good
07
14
Analysis:
The above table shows that 38% of respondents have rated their benefits as Good.36% of
respondents have rated it as Average. 14% of respondents have rated it as Very good and 10%
of respondents have rated the benefits provided by the organization as Poor.
GRAPH No. 19:
Page 74
CHART SHOWING EMPLOYEE SATISFACTION

WITH RESPECT TO BENEFITS PROVIDED BY
THE ORGANISATION
14%
2%
10%
36%
38%
VERY POOR
POOR
AVERAGE
GOOD
VERY GOOD
Interpretation:
From the above graph it is understandable that maximum number of workers rated as
Good and Satisfactory. It means employees are happy about their benefits.
TABLE No. 20:

TABLE SHOWING EMPLOYEE SATISFACTION WITH RESPECT TO PRESENT PAY
STRUCTURE
SL. No.
Rating
No. of employees
Percentage
Page 75
1.
Very Poor
00
2.
Poor
09
18
3.
Average
20
40
4.
Good
13
26
5.
Very Good
08
16
Analysis:
The above table indicates that no person are dissatisfied about their present pay structure,
18% of respondents has said their opinion as poor, 40% are in neutral, 26% are good and
remaining 16% are fully satisfied regarding their present pay structure.
GRAPH No. 20:
Page 76
CHART SHOWING EMPLOYEE SATISFACTION WITH

RESPECT TO PRESENT PAY STRUCTURE.
16%
0%
18%
26%
40%
VERY POOR
POOR
AVERAGE
GOOD
VERY GOOD
Interpretation:
The above chart clearly indicates that most of the respondents are satisfied regarding their
present pay structure.
Page 77
SUMMARY OF FINDINGS
Most of the respondents belong to the age group of 31-40 and 41-50
On the basis of this survey, it is found that majority of the respondents are working in Spinning
department
Only men workers are working but not a single women worker. So, it is clear that the role of
women workers has deprived.
Majority of the respondents come under the skilled and semi-skilled category of pay structure
Majority of employees salary drawn of Rs4000-6000
On the basis of this survey, it is found that majority of employees are entitled to one increment in
a year
On the basis of this survey , it is found that employees are entitled to 8.33% as bonus per annum
It is found that employees are entitled to

Conveyance allowance
Canteen allowance
Uniform allowance
Travelling allowance
It is found that the company provides the following benefits

Medical benefits
Housing benefits
Page 78

Majority of employees entitled to above 15 days and below 20 days Casual Leave in a
year
It is found that rate of basic pay contribute to Provident Fund (P.F) by employees is
equivalent to 12%
The employees are entitled to terminal benefits such as insurance benefits, gratuity
payment
Company provide two times of Festival Advance per annum that is, Rs1000 during
Yugadi and Ayuda pooja
Company collects Rs30 from employees and Rs60 from employer should be deducted in
the Decembers salary and total amount will be paid on 15th January to the government
It is found that the organization the main factors in determine wage salary fixation on
government regulation
Majority of the employees are satisfied with the present pay structure
Majority of the employees are satisfied with the benefits provided by the company.
Page 79
SUGGESTIONS AND CONCLUSION

Some suggestion are put forward which may be useful to the organization at least to an extent.
1. There should be recognition of efficiency in paying the wage and incentives.
2. The salary should be fixed according to the education.
3. The wage rate fixed must be fair and the hard work of employees must also be recognized.
4. The wage and salary structure must be flexible so that any changes can be easily made.
5. There must be no ambiguity and confusion fixation on wage rates.
6. Effort should be made to meet employees expectations so that they have a positive
approach towards work in the organization.
7. Medical department in the company can be improved. All types of medicines prescribed by
the company doctors should be made available at all periods in the dispensary.
8. Canteen facilities can be improved for workers.
9. The employees should be educated about the organization policy, rules and plans concerned
with wage and salary administration or wage and salary schemes in order to be in touch with
the changes.
10. The Quality of Work Life (Q.W.L) can be enhanced. By providing favorable work
environment, employees can be encouraged and motivated to increase productivity. By
providing a good environment, the morale of employees can also be improved.
Page 80
CONCLUSION
This study was an attempt to know about prevailing wage and salary administration in Sona
Synthetics, Bangalore.
Through the study, it has been noticed that the wage and salary administration at Sona
Synthetics, is being handled quite efficiently. Wage and salary administration is concerned with the
financial aspects of needs, motivation and rewards.
The principles of wages and salary administration is fixation of wages ad salaries in a definite
plan which ensures that the differences is pay for job are based upon variations in job requirements,
should be reasonably in line with the prevailing labour market, equal pay for equal work etc.
Considering all these points, at Sona Synthetics, the wage structure is prepared for different levels.
As it is rightly said People do what they do to satisfy some need. Before they do anything they
look forward for reward as pay off.
The compensation package forms an important part as a motivational force. It should be able to:
Attract competent personnel
Retain present employees
Should control cost in the interest of employees.
The various components of remuneration must be reviewed consistently and should be flexible to
meet the expectation of employees. This would lead to increase in productivity and reduces turn over.
At Sona Synthetics, the management is trying its maximum and level best to keep the employees
and workers motivated by giving them various benefit and incentives. In spite of this there is a segment
which is not satisfied with the remuneration. The reason is varying, lack of performance appraisal, lack
Page 81

of recognition of hard work, dissatisfied with the salary is compared to their input, lack of proper
division of work etc.
To conclude, the present pay structure of the company is satisfactory and the employees are
provided with various benefits and services, advances and subsidies, terminal / insurance benefits and
incentives, which act as additional motivational factors for the employees.
APPENDICES AND ANNEXURES

QUESTIONNAIRE:
Study on Wages and Salary Administration of Sona Synthetics (unit of Sri Valliappa textiles)
Bangalore.
Appeal letter
Respected Sir/Madam,
I, Miss Vandana Rajgopal, student of MBA, Sikkim Manipal Univeristy, doing a project on
Wages and Salary Administration in Sona Synthetics (unit of Sri Valliappa Textiles) as a partial
fulfillment, I request you to answer the questionnaire and give your views. The data collected from you
would be used only for academic.
Thanking you
Yours faithfully,
Vandana Rajgopal
Page 82
1.
2.
3.
4.
GENDER
AGE
DEPARTMENT
DESIGNATION
EXPERIENCE IN SS
In which category of pay structure are you including?

a.
Skilled
()
b.
Semi Skilled ( )
c.
Unskilled
()
What is the amount of basic pay per month?

a.
Between Rs 2000-4000
()
b.
()
c.
()
d.
Rs 8000 and above
()
How many increments are you entitled to, in a year?

a.
One
()
b.
Two
()
c.
Three and above
()
Are you getting bonus in Sona Synthetics?

a.
Yes
()
b.
No
()
Page 83
5.
6.
7.
8.
If yes how accordingly you receive it?

a.
Quarterly
()
b.
Half yearly
()
c.
Yearly
()
Which of the following allowances is/are provided by the organization?

a.
Conveyance allowance
()
b.
Canteen allowance
()
c.
Uniform allowance
()
d.
Traveling allowance
()
e.
All of the above
()
Which of the following benefits is/are provided by the organization?

a.
Medical benefits
()
b.
Housing benefits
()
c.
()
d.
All of the above
()
How many days of casual leave are you entitled to, in a year?
- - - - - - -- - - - - - - - - -
9.
10.
Are you entitled to any incentives?

a.
Yes ( )
b.
No ( )
If Yes, is the payment of incentive limited to your

a.
Hard work
b.
Productivity
c.
Efficiency
()
()
()
Page 84

d.
11.
12.
13.
14.
15.
16.
17.
Over time
()
Are you entitled to get insurances benefits provided by the organization?

a.
Yes ( )
b.
No
()
Are you entitled to, gratuity payment on retirement?

a.
Yes ( )
b.
No
()
Are you entitled to get festival advance in the year?

a.
Yes( )
b.
No
()
Have you enjoyed ESI and PF facility?

a.
Yes ( )
b.
No
()
Are you entitled to get Advance/Loan on salary?

a.
Yes( )
b.
No
()
Have you paid interest on loan?

a.
Yes
()
b.
No
()
Are you entitled to get Over Time wages?

a.
Yes( )
b.
No
()
Page 85

18.
19.
20.
How do you rate the benefits provided by the organization?

a.
Very good ( )
b.
Good
()
c.
Average
()
d.
Poor
()
e.
Very poor ( )
Is your salary at par with your education?

a.
Yes( )
b.
No
()
How do you rate the present salary of organization?

a.
Very good ( )
b.
Good
()
c.
Average
()
d.
Poor
()
e.
Very poor ( )
Page 86
BIBLIOGRAPHY
SL.NO
01
Title of the book
Name of the
Name of
Year of
author
Publisher
Publication
Human Resource
Cynthia D. Fisher
Biztantra
V edition
Management
Lyle F. Schoen feldt
2004
James B. Shaw
02
Tata Mc
9th reprint
Personal/
Graw-Hill
2004
Management
Publishing
1997-99
Human Resource
K. Aswathappa
Company ltd
03
04
Personal and
Himalaya
II edition
Human Resource
Publishing
1998
Management
House
Human Resource
A. M. Sarma
Subba Rao
Management
05
Human Resource
Dr. C. B. Gupta
Management
www.sonasynthetics@valliappa.com
Page 87

www.kailaasam@valliappa.com
http://www.valliappa.com/sonagroup/promain.htm
Page 88

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Wages and Salary Administration

NATURE OF THE INDUSTRY

Sikkim Manipal University, Distance Education, Bangalore

Wages and Salary Administration

Wages and Salary Administration

By providing healthy working environment it promotes teamwork in the employees

Maintaining the dignity of the employee as a human being.

Providing maximum opportunities for personal development.

Maintaining healthy relationship between different work groups so that

Correcting the errors of wrong posting and proper reallocation of work.

It can help the organisation in accomplishing its goals.

Gearing right attitude among the employees through

Utilizing effectively the available human resources.

Securing willing co-operation of the employees for

Sikkim Manipal University, Distance Education, Bangalore

Wages and Salary Administration

HRM GOALS:Develop the individual to realize his potential as

an individual to the maximum extent.

his present job.

Develop and maintain a high motivation level of

To strengthen superior subordinates relationship.

To strengthen team spirit among different units.

To promote inter-team collaborations.

To meet competition and social obligation

To maintain moral in organization so that

To integrate individual goals with that of

To attain the forgoing objective economically

Human Resource Development in the organizational concept is a process by which the

Wages and Salary Administration

INTRODUCTION TO WAGES AND SALARY ADMINISTRATION

Sikkim Manipal University, Distance Education, Bangalore

Wages and Salary Administration

WAGE POLICY IN INDIA

Wages and Salary Administration

Within the government sector, salary differences exist among employees of

Sikkim Manipal University, Distance Education, Bangalore

Wages and Salary Administration

BASIC KINDS OF WAGE PLAN

ELEMENTS OR INGREDIENTS OF A GOOD WAGE PLAN

Wages and Salary Administration

OBJECTIVES OF COMPENSATION POLICY

To enable individuals to reach their full earning potential as far as is reasonably

To ensure employees share in the companys prosperity as a result of increasing

ADMINISTRATION OF WAGES AND SALARIES

Wages and Salary Administration

PRINCIPLES OF WAGE AND SALARY ADMINISTRATION:

The plan should carefully distinguished between jobs and employees;

Equal pay for equal wok;

An equitable practice should be adopted for the recognition of individual differences;

The wage and salary structure should be flexible;

Prompt and current payment of the dues of the employees;

Sikkim Manipal University, Distance Education, Bangalore

Wages and Salary Administration

FACTORS INFLUENCING WAGE AND SALARY STRUCTURE AND

The organizations ability to pay:

Supply and demand of labour:

Prevailing market rate:

by the industry and the community.

in an acceptable cost of living index.

Sikkim Manipal University, Distance Education, Bangalore

Wages and Salary Administration

Trade Unions bargain power:

higher the wages.