Professional Documents
Culture Documents
IWP
IWP
CONTENTS
PREFACE
ACKNOWLEDGEMENT
DECLARATION
INTRODUCTION
COMPANY PROFILE
KNOWLEDGE ABOUT COMPANY/INTRODUCTION
QUALITY ASSUARANCE & RESEARCH AND PRODUCTS
VISION & MISSION
VALUES & CUSTOMER FOCUS
MANUFACTURING PROCESS
ORGANISATION CHART
EMPLOYEES & THEIR CATEGORISATION
COMPENSATION & BENEFITS
TYPES OF WAGES
DIFFERENT METHODS OF REMUNERATING LABOR
ALLOWANCES
FRINGE BENEFITS
STATUTORY &OTHER BENEFITS
WELFARE & OTHER FACILITIES
INCENTIVES
o INCENTIVE PLAN
o INCENTIVE SCHEME IN IWP
o ATTACHMENTS
OBJECTIVES OF THE REPORT
RESEARCH METHDOLOGY
SUMMARY OF RESEARCH DESIGN
DATA ANALYSIS & INTERPRETATION
FINDINGS
SUGGESTION & RECOMMENDATIONS
CONCLUSION
LIMITATIONS OF THE PROJECT REPORT
BIBLIOGRAPHY
APPENDIX
PREFACE
As a part of the partial fulfillment of the MBA (HR) programme at Rakshpal
Bahadur Management Institute Summer Training was undertaken with
The Indian Woods Products Co. Limited (Katha Factory), Izatnagar
Bareilly a unit of Katha/Black Catechu and Cutch production in India (U.P.).
Bareilly Unit is one of the biggest Katha producing Factory in India. The
company was established in 1913 by M/S Gillianders Arbuthnot & Co.
Limited and the production of katha started in 1920 hence the company
has now completed their 98 years of excellence in Katha production.
The purpose of the training was to have the practical experience of working
in a Human Resource department and to have the exposure to the various
management practices in the field of human resource & how the
Compensations, Salary, Wages, Incentives, Allowances, Facilities and other
benefits are distributed in the company.
ACKNOWLEDGEMENT
Nothing concrete can be achieved without an optimal combination
inspiration and perspiration. No work can be accompanied without taken the
guidance of experts. It is only critics from ingenious that help transform a
product into a quality product.
For this, I am grateful to Mr. C.S. Sharma (Sr. Personnel Manager) for his
constant encouragement and invaluable critical suggestions given during
my summer training programme. His timely advice and guidance proved his
commitment in completing my training.
Last but not the least, our sincere thanks to the IWP Co. Limited who were a
vital thrust to our thoughts and needs throughout the training programme.
Finally thanks to teachers at Rakshpal Bahadur Management Institute, who
put in numerous hours to make the intangible tangible..
DECLARATION
4
I hereby declare that the project report entitledCOMPENSATION & BENEFITS SCHEME IN IWP CO. LTD.
The analysis and findings in this report are based on the information
collected by me through a Structured Questionnaire having Open Ended
Questions.
HEMAN
SRIVASTAVA
BACKGROUND:
The Indian Woods Co. Limited was promoted by Mr. H. N. Gladston, Mr.
H. Bateson, Mr. E .H. Bray of London and others in 1919. The company
was limited by shares under the Companys Act 1913 with the sole
object to manufacture Katha and Cutch at Izatnagar, Bareilly (U.P.)
India. The manufacturing activities started in 1920 and the board of
directors appointed M/S Gillianders Arbuthnot & Co. Limited as the
managing agents who would look after the daily activities of the
company.
Till 1962, the company was under the Director of Industries, Kanpur
(U.P.) and it was only in 1963 that the company was granted an
Industrial License by the Ministry of Commerce and Industry. This
entitled the company to manufacture 600 million tons of Katha & 1200
million tons of Cutch per annum. With the abolition of Managing
Agency Systems by the Companies Act, M/S Gillianders Arbuthnot &
Co. Limited ceased to act as the Managing Agents of the Company.
Thereafter, the control and management of the Company vested with
the Board of Directors consisting of directors of M/S Gillianders
Arbuthnot & Co. Limited and their associate companies. In 1970 it
became an Indian Company. In 1980 the present management
acquired the controlling interest in the company.
At present, Mr. K. K. Mohta (Chairman) and Mr. K. K. Damani (Executive
Director) manage the entire range of daily operations of the company
under the strict control of Board of Directors.
In 1996, the company under took wind power project and two
generators of 400 KVA were installed at Poolavadi, Dist. Coimbatore
6
COMPANY
PROFILE:
COMPANY
ADDRESSES:
H.O.
TELEPHONE
(+91-33)2424749/4752
CHAIRMAN
WEBSITE
www.iwpkatha.com
FACTORY
SALES OFFICE
SHIFTS OF WORKING:
In the Factory the production work is done in 3 shifts:
SHIFT-A
7:30am to 3:30pm
SHIFT-B
3:30pm to 11:30pm
SHIFT-C
11:30pm to 7:30am
QUALITY
ASSUARANCE
&
RESEARCH
9
ANNUAL
PRODUCTION
CAPACITY
PRODUCTS
OTHER NAMES
CATECHU
BLACK CATECHU,
KATHA
600M.T.
CUTCH
VEGETABLE
TANNINC
1200M.T.
Our Mission
11
To establish ourselves as
manufacturing
liberalization.
VALUES:
We must also keep in mind the following values:-
INTEGRITY:We shall be honest in our dealings to earn the trust and loyalty of others
and our actions must be just and ethical. We must be truthful, honor
commitments, uphold declared values and be fair. Integrity must be an
integral part of every employee.
COURTESY & HUMILITY:We shall be courteous and modest in our dealings both business and
private. We should not arbitrarily or selfishly but always respect rights and
personal dignity of every individual we deal with. We shall praise and
encourage people freely.
We shall always listen respectfully to public opinion, solicit customers
suggestion and shall make continuously efforts to make ourselves better;
this will also help us to earn trust of society.
COMMUNICATION & OPENNESS:We shall communicate our policies, goals, objectives and expectations to
get involvement of people. The information shared shall be within the limit
of confidentiality.
We shall share related information and data to keep concerned people up to
date to enable them to make right decisions at right Time.
We hall create an environment through effective listening where people are
encouraged to express their views freely and make contributions. We shall
share feelings in constructive manner and gain clear understanding of
alternatives.
HARMONY & CO-OPERATION :Our people are the source of our strength, involvement and team work shall
be our core human values. Alone are we are weak, together we are strong,
we shall work together as a team with mutual understanding, responsibility,
trust, respect and sincerity.
We should always keep in mind that without harmony and co-operation
even a group of very capable individuals cannot accomplish anything of
13
CUSTOMER FOCUS:
Our prime responsibility is towards our customers and all others who are
impacted by our products and services. We shall focus on energies
constantly in understanding, anticipating and meeting customers demand.
We shall consistently provide quality products of good value to their
satisfaction and earn their respect.
To satisfy our external customers, it is imperative that everyone must work
towards meeting the requirements of internal customers.
MANUFACTURING PROCESS
14
Katha and Cutch are obtained from aqueous extract of the heart wood of
Khair tree (Acacia Catechu). Katha is the main product and cutch is the
byproduct of the industry.
Following are the different stages of manufacturing process:
1. DEBARKING & DESAPPINGKhair wood is debarked and desapped to recover heart wood only,
which contains Katha and Cutch. This is done manually with the help
of axe, etc.
2. CHIPPINGStripped Khair wood logs are directly fed into the Chipping Machines
and converted into small chips of about 1*1/4 size.
3. EXTRACTIONSmall chips are filled in Autoclaves and extracted with water at high
temperature for desired time and thin extract thus obtained is
collected in Mother Liquor tank, this liquor contains both Katha and
Cutch as extractives.
4. CONCENTRATIONThin Mother Liquor is passed through triple effect evaporators and
concentrated to make thick liquor. The cooling water used in the
Barometric condenser of this evaporator is partly used in Autoclaves
as hot water and rest of the water is sent in a Cooling Tower for cooling
and recycled back to the Barometric condenser.
5. BLENDING TANKThick Liquor is stored in tanks for 2 days for cooling before filling in
cold chambers.
15
17
THE
ORGANISATION
CHART
18
19
TOTAL WORKERS
229
HIGHLY SKILLED
WORKERS
25
SKILLED
40
SEMI- SKILLED
60
SUPERVISORS
12
CLERKS
12
CHEMISTS
06
OTHER WORKERS
74
OFFICERS:-
TOTAL OFFICERS
50
HEAD OF DEPARTMENTS
06
MANAGERS
08
ASSISTANT/DEPUTY
10
MANAGERS
SENIOR OFFICERS
12
OFFICERS
14
MANAGEMENT:20
POST
NAMES
EXECUTIVE DIRECTOR
AGM- FINANCE
R.K. AGARWAL
N.H. AGARWAL
C.S. SHARMA
SENIOR COMMERCIAL
RAVI CHANDAK
MANAGER
MANAGER (PROJECTS &
A.K. AGARWAL
MAINTENANCE)
21
TYPES OF WAGES
LIVING WAGES:
Living wages means the wages that may be sufficient to provide for the
bare necessities as well as certain amenities for the employee. It means
wages may be sufficient to provide for the bare necessities and such
amenities that are considered necessary for the well-being of the
employee and his family members in accordance with his social status.
Article 43 of the Constitution of India states that, The state shall
endeavor to secure by suitable legislation or economic organization or in
other way to all workers, agricultural, industrial work, a living wage,
conditions of work ensuring decent standard of life and full enjoyment of
leisure and social and cultural opportunities.
MINIMUM WAGES:
According to Fair Wages Committee, Minimum Wages should provide not
only for the bare necessities of a worker. It should also provide for the
maintenance of efficiency of a worker. From this point of view, minimum
wages must be sufficient to provide for all requirements of education,
health and other essential amenities.
FAIR WAGES:
22
PIECE RATE SYSTEM:Under this system of wage payment, the workers are paid the wages on
the basis of quantity and quality of work performed by them. Under this
system, the rates of wages are determined according to quality and
quantity of work and the workers are paid according to these rates. The
amount of wages paid to a worker under this system is calculated as
under:Wages = Units Of Production * Rate Per
Unit
23
ALLOWANCES:
An Allowance is money that is given to employees and workers usually on a
regular basis, in order to help them pay for the things that they need.
FRINGE BENEFITS :
The fringe benefits are the services, facilities and comforts
available within and nearby the enterprise so that the employees
working in the enterprise may work in healthy and peaceful
circumstances and take advantage of these facilities to improve the
level of their health and moral.- International Labor Organization.
BONUS:In IWP the Bonus is provided to workers and employees as per Bonus Act,
1966. The important provisions of Bonus Act followed by IWP are as follows:
o Bonus provided between 8.33% to 20% on Profitability of the concern.
o Bonus must be paid compulsorily whether it is in profit or loss.
o This act does not apply on the employees who are getting basic pay of
3,500 per month or more.
E.S.I. Contribution
Employees Contribution
1.75%
Employers Contribution
4.75%
27
o HOUSING (FURNISHED ACCOMODATION):The housing facilities are provided to the officers of the company.
These housing facilities are provided with furnished
accommodation.
o COMPANY CONVEYENCE:The conveyance facilities are also provided to the officers by their
expense of the company.
o FREE ELECTRICITY:Free electricity is provided with the housing facility to the officers.
o CLUB MEMBERSHIP:The club membership like Rotary club is provided to each officer on
their wish.
28
o LEAVE ASSISTANCE:The leave assistance in the company for 365 days or 1 year is as
follow:
No. OF DAYS
TYPE OF LEAVE
Casual Leave
15
Medical Leave
25
Earned Leave
INCENTIVES:
Incentives are the stimulus that motivates the workers to produce to the
best of their capacity, of best quality and minimum cost. Incentives play an
important role in affecting the efficiency of workers and hence results in an
increase in productivity.
Incentive means that which incites or has tendency to incite
action.- George R. Terry.
29
(P.T.O)
INCENTIVE PLAN
TIME WAGE
INCENTIVE PLAN
WAGE
INDIVIDUAL INCENTIVES
GROUP INCENTIVES
BATCH
VACUUM
MAKING
FILTER
PLATE
HYDROLIC
MAKING
PRESSURE
CUTTING
PACKAGING
AUTOMATION
(MANUFACTURING/PR
ODUCTION)
BOILER
AUTO-CLAVE
WOODEN
AMMONIA
MAINTENANCE
WET
PRODUCTION
CLERKS
CHEMISTS
30
SUPERVISOR
In Indian Woods Product Co. Ltd. as per date 12.06.2009 following are the
details of Incentive Agreement between The Indian Woods Product Co.
Ltd and workers Trade Union:-
It was also decided that in factory there not be made any changes in
incentive scheme but as per the requirements would occur the scheme
would be expanded in the same ratio.
31
CONDITIONS OF AGREEMENT:-
Both the parties were agreed upon the condition that the production
would increased from 4000 Boxes to 5000 Boxes with incentive, for
this there would be installed one (7th) additional katha cutting machine.
These increased labor and 1 additional katha machine would used only
for increasing the production from 4000 Boxes to 5000 Boxes.
The parties were also agreed upon that with the installation of 7 th
machine, the additional workers will allocated in various departments
of production like batch making, katha cutting, etc as per the
requirement felt.
The parties were also agreed upon that the incentives would be
provided on the Base Production as per the past trend in the factory
i.e. on 1380 kg katha per shift and there would not be made any
changes or modification in the incentive scheme. For the increased
production of 1890 kg katha the same incentive scheme will be
enhanced in the same ratio. (As Per Attachment A.)
32
The parties were also agreed upon that as in past the casual workers
were provided Rs.10/- per day as incentive this practice would be
discontinued and for encouraging these workers, they would be
provided more profitable and new incentive schedule. (As Per
Attachment B.)
The parties were also agreed upon that if the production would
increased to 5000 peti katha (with incentive) per month and the
production gets stabilizes then the management would make 21
casual workers as permanent and in the factory, the Boiler
Attendant(1) and other 2 required job workers were also appointed as
permanent workers. But by making these workers as permanent the
number of casual workers would not be reduced. In this way, the
number of total permanent workers in the factory would be increased
from 205 to 229.
The parties were agreed upon that if the incentive scheme would be
discontinued, the workers who would make casual to permanent they
would remain in factory as other permanent workers.
PARTIES IN AGREEMENT
33
ATTACHMENT
(1)
WORKLOAD / INCENTIVE:The parties were agreed that following would be the incentive scheme
for the production of 1380 kg weight katha cake (without side cutting):
Production In
kg/shift
Category- A
(In Rs.)
Category- B
(In Rs.)
1380
1410
1440
1470
1500
1530
1560
1590
1620
1650
1680
1710
1740
1770
1800
1830
0
125
250
375
500
625
750
875
1000
1125
1250
1375
1500
1675
1750
1875
0
100
200
300
400
500
600
700
800
900
1000
1100
1200
1300
1400
1500
34
1860
1890
1920
1950
1980
2010
2140
2170
2100
2130
2160
2190
2220
2250
2280
2310
2340
2370
2400
2430
2460
2490
2520
2550
2580
2610
2640
2670
2700
2730
2760
2790
2820
2850
2880
2910
2940
2970
3000
2000
2125
2250
2375
2500
2625
2750
2875
3000
3125
3250
3375
3500
3625
3750
3875
4000
4125
4250
4375
4500
4625
4750
4875
5000
5125
5250
5375
5500
5625
5750
5875
6000
6125
6250
6375
6500
6625
6750
1600
1700
1800
1900
2000
2100
2200
2300
2400
2500
2600
2700
2800
2900
3000
3100
3200
3300
3400
3500
3600
3700
3800
3900
4000
4100
4200
4300
4400
4500
4600
4700
4800
4900
5000
5100
5200
5300
5400
35
ATTACHMENT
(2)
NEW INCENTIVES FOR CASUALS:Production In
kg/shift
Incentive in Rs.
1380
1410
1440
1470
1500
1530
1560
1590
1620
1650
1680
1710
1740
1770
1800
1830
1860
1890
1920
1950
1980
2010
2140
2170
0
30
60
90
120
150
180
210
240
270
300
330
360
390
420
450
480
510
540
570
600
630
660
690
36
2100
2130
2160
2190
2220
2250
2280
2310
2340
2370
2400
2430
2460
2490
2520
2550
2580
2610
2640
2670
2700
2730
2760
2790
2820
2850
2880
2910
2940
2970
3000
720
750
780
810
840
870
900
930
960
990
1020
1050
1080
1110
1140
1170
1200
1230
1260
1290
1320
1350
1380
1410
1440
1470
1500
1530
1560
1590
1620
37
RESEARCH METHODOLOGY
MEANING OF RESEARCH
38
problems,
formulating
hypothesis
or
suggested
solutions;
TYPES OF RESEARCH:
The basic types of research are as follows:
BASIC RESEARCH: - Basic Research is that intended to expand
the body of knowledge in a field or to provide knowledge for others.
APPLIED RESEARCH: - Applied Research is carried out for
solving of a particular problem or for guiding a specific decision and
usually its results are private.
Basic Research is generally for common purpose and Applied
Research is for specific purpose.
Here the research is basic. The sources of data collection are both
Primary and Secondary data.
RESEARCH DESIGN:
The research design is the plan, structure and strategy of investigation
conceived so as to obtain answer to research questions and to control
variance.
The definition of the three important terms Plan, Structure and
Strategy are:
The Plan is an outline of the research scheme on which the researcher
is to work.
The Structure of the research is a more specific outline or the
scheme.
The Strategy shows how the Research will be carried out, specifying
the methods to be used in collection and analysis of data.
Research design is the specification of methods and the procedure from
acquiring the information needed. It is the operational pattern or framework
40
Element
Workers
2.
Sampling Units
No
3.
Extent
IWP Factory
C. SAMPLING UNIT: The sampling unit is the basic unit containing the
element of the target population. The sampling may be different from
the element. It can be either geographical unit (state, district etc.) or
42
the
Wages
&
Salary
Distribution.
And
getting
filled
some
QUESTIONAIRE
SECONDARY DATA
___________________________________________
LITERATURES
CO.WEBSITES
45
SAMPLING
CONVENIENT SAMPLING
Data source
Research approach :
Survey Method
Research instrument
Sampling Plan
Sample size
Questionnaire
40 Workers
Time
July-August 2011
Sample Area
Contact Method
Personal contact
46
DATA ANALYSIS
&
INTERETATION
47
1.
25%
75%
YES
NO
INTERPRETATION:
25% (10) workers are satisfied with the Working conditions of the
Factory concern.
48
2. Do you think that the Trade Union can properly bargain your problem
with the higher authority?
INTERPRETATION:
70% (28) workers think that the Trade Union can properly bargain their
problem with the higher authority.
49
INTERPRETATION:
70% (28) workers are satisfied with the Incentive Scheme of the
concern.
3.
50
INTERPRETATION:
40% (16) workers are satisfied with the welfare facilities provided to
them.
4.
51
INTERPRETATION:
65% (26) of workers are satisfied with the Medical Benefits provided to
them.
5.
52
INTERPRETATION:
80% (32) Workers are satisfied with the LTA Scheme provided to
them.
6.
53
INTERPRETATION:
65% (26) of the workers are satisfied with the promotion scheme.
54
INTERPRETATION:
75% (30) workers are satisfied with their Present Personal Salary
Structure.
55
INTERPRETATION:
60% (24) workers say that they are considered as Asset of the
organization.
FINDINGS
After the survey we found,
57
CONCLUSION
The Indian Woods Products Co. Limited is the company which has the
good choice of compensation and benefits provisions for distribution to their
workers and employees. As per my research, it shows that the company has
the flexible environment where all the employees are free to do work in an
efficient manner to fulfill the motto and is to complete the work having good
quality.
Various aspects of compensation and benefits scheme are studied. For
conducting this scheme an interview of workers in the factory was
conducted with the help of a structured Questionnaire.
Thus we can conclude that, there should be required an improvement in the
welfare facilities for workers like the infrastructure of the factory concern,
canteen, shelter room, etc. There should also be required improvement in
incentive scheme because they are provided on the productivity basis, it
should be improved from productivity to Productivity + Time basis.
Hence, the report represents that how the distribution of incentives,
compensations, allowances, benefits and facilities are done and the various
procedures and techniques used for their evaluation in IWP Co. Ltd.
58
BIBLIOGRAPHY
I have used the following source for finding the data-
59
APPENDIX
(1)
QUESTIONNAIRE
1. Are you satisfied with the working conditions of the Factory concern?
YES [ ]
NO [ ]
2. Do you think that the Trade Union can properly Bargain your problem with the
higher authority?
YES [ ]
NO [ ]
YES [ ]
NO [ ]
NO [ ]
5. What type of Welfare Facility should also be provided in the Factory (Be
Specific)?
___________________________________________________________________________________
____
6. Do you think that the Medical Benefits provided to workers are satisfactory?
YES [ ]
NO [ ]
NO [ ]
NO [ ]
NO [ ]
NO [ ]
NO [ ]
NO [ ]
NO [ ]
14. Are you satisfied with your Present Personal Salary Structure?
61
YES [ ]
NO [ ]
15. Do you think that you are considered as the Asset of the organization?
YES [ ]
NO [ ]
___________________________________________________________________________________
___________________________________________________________________________________
PERSONAL PROFILE:
Name
: ___________________________________________
Designation
: ___________________________________________
Department
: ___________________________________________
Token Number
: ___________________________________________
Age
: ___________________________________________
Education
:
High School [ ]
Intermediate [ ]
Under 10th [ ]
Illiterate [ ]
APPENDIX
(2)
INCENTIVE SCHEME IN IWP (XEROX)
62
63
64
65
66
67
68
69
70
THANK
YOU
71