A

PROJECT REPORT
ON
“Effect of culture on leadership style of leader’’
At
SUBMITTED
BY
Pawar Pooja Vasant
Under the Guidance of
Prof. Nisha Wagh

In partial fulfillment of Requirements for the Award of Degree

MASTER OF BUSINESS ADMINISTRATION
DR. B.V. HIRAY COLLEGE OF MANEGEMENT AND RESEARCH
CENTRE
2020-21

DECLARATION
I hereby declare that this Project Report “Customer Satisfaction for Digital Marketing (Bajaj FinServ Ltd.
Malegaon)’’ at Bajaj FinServ Ltd. submitted by me is based on actual work carried out by me under the
guidance of Prof. Nisha Wagh. Any reference to work done by any other person or institution or any
material obtained from other sources have been cited and referenced. It is further to state that this work is
not submitted anywhere else for any examination.

Place: Malegaon PAWAR POOJA VASANT

Date:

1
ACKNOWLEDGEMENT

I would like to take this opportunity to express my deep regards towards all those who offered valuable
guidance.

I am highly obliged to my project guide Prof. Nisha Wagh without whose assistance this could ever see the
light of the day.

I would like to express my appreciation to all the people who have contributed to the successful completion
of the project.

PAWAR POOJA VASANT

2
STUDENT DECLARATION

I,Pawar Pooja Vasant (Name of Student) hereby declare that the project entitled
“ Customer Satisfaction for Digital Marketing (Bajaj FinServ Ltd. Malegaon) ” is a
genuine and original work for the partial fulfillment of Master in Business Administration to Savitribai
Phule Pune University. To the best of my knowledge, any part of this context has not been submitted earlier
for any degree, or Certificate examination. The collected data and certificate are true. Further I undertake
that I will be solely responsible for anything arise out of unfair mean.

Date: - / /

Place: -

Name:……………………..

Sign: ………………………...

INDEX

Chapter No. Title of contents Page No.

1 Introduction 1-6

3
 Project Profile 7-12
Objective of the study
2 Scope the Study
Limitation of Study

Company/Organization Profile (Including 13-17

3 Company/Organization chart)

Research Methodology 18-28

4 Statement of the problem
Research Design
Hypothesis if any
5 Data Interpretation 29-37
(Chart, Graph, Diagrams)
Finding 38-41
6 Suggestions & Recommendations

7 Conclusion 42-44

References 45-48
Appendix

4
INTRODUCTION

5
1 INTRODUCTION

One of the most important factors in Human Resource Management is Compensation Management. The
soundness of compensation management depends upon the amount of wage or salary is paid to an employee
for a fair days work. Wage and Salary administration refers to the established and implementation of sound
policies and practices employee compensation. Wage and salary administration is one of the vital areas of
the personnel administration. For sound wage and salary policies and programs are essential. To procure,
maintain, develop, promote and transfer employees and to get effective results from them. An organization
has to balance fairly financial and non-financial rewards extrinsic awards. Effective awards and intrinsic
awards. Effective reward system requires not only that the absolute level of compensation paid by an
organization compares favorably but also enquires that it satisfies the principles of internal equity and
equity with the job content. The employees’ gets pay satisfaction of the perceived salary is equal to actual
salary received and actual salary is less than perceived salary the employee is dissatisfied with the salary.
The remuneration paid by the employer for the services of hourly, daily, weekly and fortnightly employees.
The Covid-19 virus is a genetic branch of the coronavirus, which has infested as an infectious disease
amongst a severe global pandemic. This illness, declared to be a pandemic by WHO early this year, has
spread across the world, causing deaths in large numbers and a buzzing sense of uncertainty among people.
In response to the life-threatening pandemic, most countries have taken various measures, including
imposition of a total lockdown that has had a detrimental impact across economies. This research paper
studies the impact of the novel coronavirus on various macroeconomic factors of the Indian economy. The
study is an analysis of data that is secondary in nature, using various statistical tools and techniques to come
to a conclusion. Additionally, the impact of Covid-19 on one of the most vulnerable sectors of the economy-
the medium, small and micro enterprises- has been shown with the help of a case study. The research also
analyses various policy measures taken by the Reserve Bank of India and the Central Government of India,
to ameliorate the economic shock and make a promising recovery of the Indian economy The Indian
economy has been experiencing significant slowdown over the past few quarters. In the third quarter of the
current fiscal, the economy grew at a six-year low rate of 4.7%. There was a strong hope of recovery in the
last quarter of the current fiscal. However, the new coronavirus epidemic has made the recovery extremely
difficult in the near to medium term. The outbreak has presented fresh challenges for the Indian economy
now, causing severe disruptive impact on both demand and supply side elements which has the potential to
derail India’s growth story. India reported its first confirmed case on January 30. However, there are only
some signs of community transmission – the percentage of affected people is still low, with most cases
related to travel. That said, the domestic situation remains fluid and warrants constant monitoring. The
impact on the Indian economy could be significant if the virus continues to penetrate the country which will
have a longer lasting effect. While the impact on economic prospects due to activity being affecting in
countries like China, S Korea, Japan, Italy, etc. would be through trade, investment and services routes, it
could be more damaging if there is any shutdown in India. The objective of the Survey is to understand the
opinion from the business fraternity regarding the downside risks to the Indian economy on the backdrop of
outbreak and spreading of this virus

6
the supreme court, while hearing a batch of petitions challenging the ministry of home affairs (MHA)
notification on payment of wages. Observed that some negotiations have to happen between employers and
workers to iron out what has to be done for the salary for these 54 days. The center told the apex court that
the payment of wages to workers during the lockdown period is a matter between employers and
employees. If further said that it would not interfere .in Contrast , the center had directed payment full
wages during the lockdown. “Covid-19 “a junction from where we decide which way to go” and while this
moment might indeed open up new paths towards justice, India’s history of inequality ensures that those
paths will almost certainly be lined with the bodies of thousands dying medically preventable but socially
mandated deaths. The coronavirus pandemic is that unique moment when the entirety of society is only as
healthy as its most vulnerable. As such, our country’s decades of deep-seated callousness to the poor is now
going to cost us all dearly” The government said it would neither be in the interest of justice nor in public
interest to adjudicate the validity of notification which operated only for 54 days – from March 25 to May
17 – to mitigate the financial hardships of crores of workers and employees.“In the event this court is not
inclined to dispose of the present proceedings as having become infructuous and is inclined to adjudicate
this matter on merits, the petitionersemployers must be directed to furnish proof of their incapacity to pay
wages and salaries in terms of the order dated March 29, 2020 by placing on record their audited balance
sheets and accounts,” the affidavit said.The affidavit has been filed as the apex court, while hearing the
matter on May 26, had asked the Centre to file counter affidavit within a week on the issues raised in the
petitions.The MHA had passed an order on March 29 asking all employers to make payment of wages to
their workers without any deduction for the period their establishments were under closure during the
lockdown.The affidavit filed by the government has said that no material has been placed on record to
establish the contentions raised in the petitions that employers are not in a financial position to pay their
employees and workers. It said that petitions have raised grounds of “financial hardship, incapacity or lack
of desire” of the employers to pay their employees or workers during the lockdown without taking work
from them.“It is respectfully submitted that this ground of financial incapacity is a legally untenable ground
to challenge a direction issued by the competent authority in exercise of its statutory power,” the affidavit
said.It further said that these measures were proactively taken by the government to prevent “perpetration of
financial crisis within the lower strata of the society, labours and salaried employees”.“There was a
7
legitimate state interest in issuance of the said directions. The said directions were neither arbitrary nor
capricious. The same were also neither excessive nor disproportionate….,” it said, adding that the direction
was issued as an economic and welfare measure. The affidavit said the Centre has regularly assessed the
situation and after taking feedback from the experts in the field, it permitted opening up of the commercial
activities enabling the employees and workers covered by these directions to resume work.“It is respectfully
submitted that the said decision was taken by the respondent Union of India to ensure that no financial
hardship, detriment to the very existence of the employers of such employees and workmen is caused and
they are able to resume their commercial activity so that the burden of paying salary without work/business
is mitigated,” it said.It also said that through a letter dated March 20 issued by the Secretary (Labour and
Employment) to the chief secretaries of all the states, the Centre had said that employers of public/private
establishments may be advised to extend their coordination by not terminating their employees, particularly
casual or contractual workers, from job or reduce their wages.

8
PROJECT PROFILE

9
2.1 Objective of the study

The present study has been conducted with the following objectives:

• To understand impact of Covid-19 on overall Indian Economy

• To understand impact of Covid-19 on different sectors
• 3. To find out the challenges for different sectors in Indian economy
• To study the fluctuations in wage and salary policies of FACOR management and employee satisfaction.
• To compare the wage and salary administration practices between workers and officials of M/s FACOR.
• To know the strategies adopted in the wage and salary administration practices of FACOR during the
challenging situation faced by it and to come out if such situations.
• To know the level satisfaction of the employees regarding the wage & salary administration in Facor.

2.2 Scope the Study

• The Scope of the study covers with extent of help to check all the activities of salary administration
against the company polices.
• An attempt was made to know the pleasure of employees regarding their wages and salary administration.
• Hence this study specially is focused on wages and salary administration which is a key factor for
employee job satisfaction.

2.3 Limitation of Study

• The lack of availability of information.

• The collected one does not give the complete information.

• As time period is 2 months, it is very difficult to get a clear picture. 11

• The sample size taken for the research is small due to constraints of time. • Some of the employees had
not co-operated in filling of questionnaire.

10
 Company/Organization Profile
(Including Company/Organization char

11
General Impact on Indian economy:

The exact span and depth of the crisis on the Indian economy cannot be measured at this point in time. Only
time will reveal the real picture. However, renowned economists provide estimates on the likely economic
impact of the pandemic on low and middle-incomes countries like India. India’s growth in the last quarter of
FY20 dropped down to 3.1% according to the Ministry of Statistics, mainly due to the effect of the current
pandemic on the economy. While research and economic experts slashed GDP estimations of the economy,
it is also estimated that the country might bounce back quickly because of the organized and unorganized
market composition, the latter being largely dominant. Meanwhile, the organized sectors’ losses are
estimated to over nine trillion Indian rupees in March 2020. Unsurprisingly, the services and manufacturing,
specifically travel and tourism, financial services, mining and construction sectors remain the most affected
industries, with declining rates of up to 23 percent between April and June 2020.

The pandemic caused uncertainty and implications among all businesses across the world. Segments like
consumer retail are expected to see steep declines ranging from 3 to 23 per cent, depending on the market
situation. According to a survey, COVID-19 is having an adverse impact on Indian business. Jobs are at
high risk because firms are looking for reduction in manpower. The pandemic has created a deep routed

12
impact on the Indian economy, negatively affecting its GDP, unemployment rate, inflation rate, domestic
and international trade, financial markets, government budget and various other macro-economic factors.
The most vulnerable sector of the economy at this time, the MSME sector, has witnessed a disturbing phase
in its functioning due to this crisis.

 Impact on GDP:

The pandemic has adversely affected the estimated GDP of the fiscal year 2021. Fall in manpower of
production units, leading to loss of productivity coupled with shortage of demand, has led to negative
impacts across various industries, further leading to a fall in their GDP contribution to the economy. India’s
quarterly GDP was estimated to have declined by over 9% between the months of April and June 2020. This
was a decrease from a 5% growth rate at the beginning of 2020. The country went into a lockdown on
March 25th 2020, restricting 1.3 billion people within the confines of their homes. The real GDP increased
by only 3.1 per cent in the first quarter of 2020, over its corresponding quarter of 2019. This negative
impact on the GDP is partially an outcome of the coronavirus outbreak and the subsequent measures to
prevent it, accompanied by significant dip in growth rate, the declining trend of which started much earlier.
The financial, real estate and professional service sector was worst hit during the period of lockdown.
During the first quarter of India’s nationwide lockdown that was announced following it’s first coronavirus
outbreak, the economy was expected to lose over ₹ 32,000 crore (US$ 4.5 billion) per day (Wikipedia).

 Estimated quarterly impact on GDP:

The pandemic further weakened consumer demand and private investment in the March quarter. In the first
quarter of 2020, only one week of nationwide lockdown was observed. Yet, the economic growth was
estimated to be 2.1% in the March quarter. Growth was 4.2% in the fiscal year through March 2020, as
compared to 6.1% in the fiscal year 2019. The total loss in output is estimated to be around ₹ 6 trillion
based on the GDP at current prices for the fiscal year 2020. This growth rate is extremely poor compared to
the estimated growth rate of 7.5 per cent at current prices for the same fiscal year. Economists expect the
FY20 to see the worst economic contraction in four decades.In the manufacturing sector, output is expected
to decline by about 70 percent. Other industries like metals andengineering have either reduced or shut
operations. Machinery and equipment which includes automobiles, consumer durables and capital goods
that contribute to a considerable portion of the GDP, are greatly impacted by the pandemic as the demand
for their products has reduced significantly. Due to weak domestic consumption and consumer sentiment,
there can be a delay in investment, which can further add pressure to the growth.,

13
The pandemic further weakened consumer demand and private investment in the March quarter. In the first
quarter of 2020, only one week of nationwide lockdown was observed. Yet, the economic growth was
estimated to be 2.1% in the March quarter. Growth was 4.2% in the fiscal year through March 2020, as
compared to 6.1% in the fiscal year 2019. The total loss in output is estimated to be around ₹ 6 trillion
based on the GDP at current prices for the fiscal year 2020. This growth rate is extremely poor compared to
the estimated growth rate of 7.5 per cent at current prices for the same fiscal year. Economists expect the
FY20 to see the worst economic contraction in four decades.In the manufacturing sector, output is expected
to decline by about 70 percent. Other industries like metals andengineering have either reduced or shut
operations. Machinery and equipment which includes automobiles, consumer durables and capital goods
that contribute to a considerable portion of the GDP, are greatly impacted by the pandemic as the demand
for their products has reduced significantly. Due to weak domestic consumption and consumer sentiment,
there can be a delay in investment, which can further add pressure to the growth

14
Three economic scenarios model India GDP estimates

India’s GDP growth for FY2020-21 has been estimated to hit a 30-year low. The country’s GDP
forecast for FY21 by rating agencies and global institutions is abysmally low as well. GDP forecast has
reduced to 2% from 5. 1% according to the Fitch Rating, that expects a global recession this year.
Global ratings have slashed its growth forecast to 3.5% from 5.2% for FY21. The World Bank too has
cut its growth forecast from 5% to 6% as shown in figure 3. The Asian Development Bank expects the
country’s GDP growth to strengthen to
6.2% in FY22 with the help of government reforms. According to CIRIL “India’s fourth recession since
independence, first since liberalisation, and perhaps the worst to date, is here.

15
India’s GDP forecast by credit rating agencies:

Impact on unemployment:
The unemployment rate has had a sudden surge due to the total lockdown imposed in the country followed by the
policy of social distancing. The decline of economic activities implies slack labour market conditions that
contribute to rising unemployment rates. Lack of funds for business and movement of migrant labourers back to
their hometown has also resulted in massive unemployment. Between February and April 2020, the share of
households that experienced a fall in income increased to nearly 46 percent. The total lockdown followed by the
practice of social distancing resulted in job losses, specifically those pertaining to Indian society’s lower
economic strata. Several households terminated domestic help services – essentially an unorganized monthly-
paying job. During the nationwide lockdown, labour intensive industries reported the highest rate of
unemployment as efforts were made to reduce manpower due to lack of funds owing to temporary stoppage of
production and prolonged shortage in demand. The informal, unorganised jobs which employ 90% of the
population were the first to be hit. As a result of proctor acts, curfews and closure of businesses, even the formal,
permanent jobs were affected. All these factors have led to a steep rise in the unemployment rate from 6.6 per
cent in January 2020 to 24 per cent in the month of May (in comparison to the 6.30 per cent rate in May 2019)

16
Impact on unemployment rate due to corona lockdown from January to May 2020:

Agriculture, which remains the mainstay of the Indian economy has bucked the trend, adding workers in both March
and April. Many daily-wage earners have returned to farming in the time of the crisis. As a result, the unemployment
rate in the agriculture sector has reduced. However, the overall trend of unemployment has shown a sudden and steep
rise. Although the unemployment rate is reported nationwide, the rates are highest in the red zones, mostly in urban
areas at 29.22%, while rural areas are at 26.69%. As of the end of April, the highest unemployment rate of 75.8% was
reported in Puducherry. Tamil Nadu stood second at 49.8%, Jharkhand at 47.1%, and Bihar at 46.6%. These states
have the highest rates due to the prevalence of a large number of MSMEs and unorganised jobs. The latest estimate-
till May 3rd from the Centre for Monitoring Indian Economy (CMIE) shows that the unemployment rate stands at
27.11%, up by over 20% due to the pandemic.

17
COMPANY PROFILE

18
EPCOS develops, manufactures and markets electronic components modules and systems, focusing on fast-
growing leading-edge technology markets: in IT and telecommunications, but also in automotive, industrial
and consumer electronics. A uniquely broad product portfolio and truly global presence have made EPCOS
a global market leader in products that account for 60 percent of our sales. A further 30 percent is generated
by products in which we are the number one in Europe.
EPCOS was floated simultaneously on the Frankfurt and New York Stock Exchanges on October 15, 1999.
The listed company emerged from Siemens Matsushita Components, a joint venture founded in 1989 by
Siemens and Matsushita. Because of the low trading volume, EPCOS has decided to delist and to deregister
from the New York Stock Exchange in November 2007. Since March 2003, EPCOS has been one of the
largest companies in the TecDAX index of German technology stocks.

EPCOS
ELECTRONIC PARTS AND COMPONENTS

CORPORATE CHARTER

 Vision :
The aim of EPCOS India Pvt. Ltd is to make the name EPCOS synonymous with excellence in electronic
components to customers, employees and investors alike.

19
  Business :

EPCOS develops, manufactures and markets electronic components and modules. These products process
electronic signals, control power supplies and protect electronic circuitry.

 Goals :

The Company wants to generate lasting profits and constantly increase shareholder value. It wants to be a
leader in every market that we serve. Their success is based on strict customer orientation, comprehensive
and outstanding innovative strength.

 Customer Orientation :

Providing products and services that make their customers more competitive is their top priority. The
personal commitment of every EPCOS employee makes a vital contribution to customer satisfaction.

 Cost and Process Competence :

They are continuously improving their work processes and working hard to keep cutting our cost while
increasing their speed and
reliability.

 Innovative Strength :
They create innovative products that provide new solutions for their customers and help to strengthen
existing or establish new business relationship. Innovation is the lifeblood of their company.

 Investor Orientation :

EPCOS shareholders provide the capital for and are the owners of their company. They do their utmost to
maintain and increase shareholder value.

 Employee :

Their employees are their most precious assets. Their resourcefulness, competence, motivation and drive
are essential to their company’s success. They are committed to a corporate culture that promotes creativity,
teamwork and enterprise.

 EPCOS: A company that opens up new prospects to customers, investors and employees.

20
  QUALITY OBJECTIVES

Customer Orientation: Knowing their customers’ needs, requirements and expectations and giving them
outstanding prospects and services.
.
Cost Consciousness:
Opening to new approaches and constantly cutting their cost.

Continual improvement:
Institutionalize the approach in all functions by updating their quality management system. Above
objectives are quantified by individual functions and measured and reviewed to align with quality policy.

PRODUCT PORTFOLIO:

EPCOS is mainly engaged with manufacturing of film capacitors. Following types of film capacitors are
manufactured in Nashik Plant:-

• DC Capacitors

• AC Capacitors

• Power Factor Corrections Capacitors (PFC Gas Failed) MKK.

• Power Factor Correction Resign Filed (PFC).

 MARKET POSION

In the field of electronic components and modules EPCOS regard itself as number 2 world wide and
number 1 in Europe.

 EPCOS INDIA PVT LTD

8 EPCOS has two manufacturing facilities in India

1) Nashik (Maharashtra) founded in 1996

2) Kalyani (Kolkata W.B.)

21
 ORGANIZATIONAL CHART:

22
  IMPORTANCE OF HUMAN RESOURCE MANAGEMENT:
a) ORGANIZATIONAL SIGNIFICANCE :

• Attracting and retaining the required talent through effective human resource planning, recruitment,
selection, placement, orientation, compensation and promotion policies.

• Developing the necessary skills and right attitudes among the employees and performance appraisal etc.

• Securing willing cooperation of employees through motivation, participation grievance handing.

• Utilizing effectively the available human resources.

b) PROFESSIONAL SIGNIFICANCE:
• Developing people on continuous basis to meet the challenges of their jobs.
• Maintaining the dignity of personnel at work place.
• Providing proper physical and social environment at the work place to utilize the capabilities of the
people effectively.

• Providing environment and incentives for developing and utilizing creativity.

c) SOCIAL SIGNIFICANCE:

• Maintaining balance between jobs and job sealers in terms of job.

• Requirements and job seekers abilities and attitudes.
• Providing most productive employment from socio psychological satisfaction can be derived.
• Utilizing human capabilities effectively and matching rewards for the contribution made by people.

d) NATIONAL SIGNIFICANCE:

• Increase in the size and complexity of organizations.

• Rapid technological developments like automation and computerization.
• Rise of professional and knowledgeable workers.
• Increasing workmen in the work force.
• Growth of powerful nationwide trade unions.
• Revolution of technology that might affect the work force.

23
Wage and Salary Administration
Wage and salary Administration is essential application of a systematic approach to the problem of ensuring that
employees are paid in a logical, fair and equitable manner. The payment of wages and salary is an inbuilt
system with human force for their activity performed. To what extent the payment of wages & salary is
reasonable and adequate in consonance to the nature of the work performed.
The payment of wages and salary is an inbuilt system with human force for their activity performed. The supply
of labor is more than the demand and with the result there is exploitation of cheap labor policy. Later the advent
of trade unionism helped to improve the working conditions of labor. Until Second World War, event the
government adopted a “LAISSEZ- FAIRE” policy in this regard. It was as late as in 1947, which the
industrial unrest becomes so uncontrollable that a tripartite conference was convened of (1) Central and
state govt.
(2) Employers
(3) Employees which resulted in Industrial trade resolution.
The basic purpose of wage &salary administration is to establish and maintain an equitable Wage & salary
structure.
The secondary objective is to establish and maintenance of equitable labour –cost i.e. an optimal balancing of
conflicting personnel interests so that satisfaction of employer and employee is maximized.
It is concerned with the financial aspects of needs, motivation and rewards. Managers, therefore, analyze and
interpret the needs of their employees so that rewards can be individually designed to satisfy these needs. The
first and the most important problem in wage and salary administration is the establishment of base compensation
for the job. This problem is enormously complicated by such factors as Supply and Demand, Labor organization,
the firm’s ability to pay, Variations in productivity and Cost of living, Government legislation, Including CIVICS
RIGHTS ACT.
In order to attract and retain needed personnel for the organization, employees must perceive that compensation
offered is equitable in relation to their inputs and relative contributions. The most likely to be used method to
solve this problem at present would be job evaluation, a systematic and orderly process for establishing the worth
of job.
The importance of a pay system to an event of major importance to employees and its effects upon them cannot
be ignored. It is a valid system if it results in a structure acceptable to both employee and employer. In general,
structures that are internally and externally consistent have the greatest chances of affecting overall satisfaction.
Under reward, Over-reward and inconsistency of reward not only tend to lead to lower satisfaction but encourage
behavior that often proves dysfunctional to organizational objectives. A sound, systematic, consistent system of
compensation determination will do much to promote equity and satisfaction, provided that such a system is
understood and accepted by most employees.

NEED FOR THE WAGE AND SALARY ADMINISTRATION:

Wage and salary administration is very much needed in an organization.

• Reward employees according to efficiency and merit.

• Attract and retain the services of desirable employees.
• Get improved employee morale and productivity.

24
 • Keep labor cost within reasonable limits so as to safe guard the interests of shareholders, competitive
worth of the organization and its product and profitability.
• Helps the employees to compare the pay of different employees with their skill, knowledge,
performance etc.

- SALARY:
Fixed periodical payment to a person doing other than manual or mechanical work. It refers to monthly rate of
May, irrespective of the number of hours put by an employee.

- WAGES:
Payment paid for manual and mechanical work is wages. Represents hourly rates of pay.
“wages means all remuneration, capable of being expressed in terms of money which would if the terms of the
contract employment express or implied ,were fulfilled ,be payable to a person employed in respect of his
employment or of work done in such employment”.

OBJECTIVES OF WAGE AND SALARY ADMINISTRATION

The objective of wage and salary administration is numerous and sometimes conflict with each other.

1) TO ACQUIRE QUALIFIED COMPETANT PERSONNEL :

Candidates decide upon their career in a particular organization mostly on the basis of the amount
of remuneration the organization mostly on the basis of the amount of remuneration the organization offers
qualified and competent people join the best paid organization. As such the organization should aim at payment
of salaries at that level where they can attract competent and qualified people
2) TO RETAIN THE PRESENT EMPLOYEES :

If the salary does not present compare favorably with that of other similar organization.
Employees quit the present one and join the other organization. The organization must keep the wage levels at the
competent level, in order to prevent quite.

3) TO SECURE INTERNAL AND EXTERNAL EQUITY :

Internal equity does mean payment of similar wages for similar jobs within the organization. External equity
implies payment of similar wages to similar jobs in comparable organization.

4) TO ENSURE THE DESIRED BEHAVIOUR :

Good rewards reinforce desired behavior like performance loyalty accepting new responsibilities
and changes etc. to keep labor and administration costs in line of the organization to pay. To protect in public as
progressive employers and to comply with the wage legislations. To pay according to comply with wage
legislations. To pay according to the content land difficulty of the jobs and in tune with the effort and merit of the
employees. To facilitate pay role administration of budgeting and wage and salary control. To simply collective
bargaining procedure and negotiations. To promote organization feasibility.
25
 • SYSTEMS TO ACHIEVE THE OBJECTIVES:
The objective is achieved by the use of the following systems:

a. JOB EVALUATION:
i. All the jobs will be analyzed and graded to establish the pattern of internal relationships. It
is the process of the determining relative worth of jobs. It includes suitable job evaluation
techniques classifying jobs into various categories and determining relative value of jobs
into various categories.

b. WAGE AND SALARY RANGES:

i. Over all salary range for all the jobs in an organization is arranged. Each job grade will
be assigned salary range. These individual salary ranges will be filled into an overall range.

c. WAGE AND SALARY ADJUSTMENTS

Overall salary grades of the organization may be adjusted on the data information collected about the salary levels
of similar organizations. Individual salary may also be adjusted based on the performance of the individual
employees.

d. PRINCIPLES OF WAGE AND SALARY ADMINISTRATION:

There are several principles of wage and salary plan, policies and practices. The important among
them are:

• Wage and salary plans and policies should be sufficiently flexible.

• Job evaluation should be done scientifically.
• Wage and salary administration plans must always be consistent with overall organizational plans and
programmes.
• Wage and salary administration plans and programmes should be in conformity with the social and
economic objectives of the country attainment of equity in income distribution and controlling
inflationary trends.
• Wage and salary administration plans and programmes should be responsive to the changing local and
national conditions. These plans should simplify and expedite other administrative process.

26
ELEMENTS OF WAGE AND SALARY ADMINISTRATION:
• Wage and salary system should have relationship with the performance, satisfaction and attainment of
goals of an individual. Henderson identified the following elements of wage and salary administration.
• Identifying the available salary opportunities, their costs, estimating the worth of its members of these
salary opportunities and communicating them to employees.
• Relating salary to needs and goals.
• Developing quality, quantity and time standards relating to work and goals.
• Determining the effort necessary to achieve standards.
• Measuring the actual performance.
• Comparing the performance with the salary received.
• Measuring the job satisfaction gained by the employees.
• Evaluating the unsatisfied wants and un reached goals of the employees.
• Finding out the dissatisfaction arising from unfulfilled needs and unattained goals adjusting the salary
levels accordingly with the view to enabling the employees to reach unreached goals and fulfill the
unfulfilled needs.

• WAGE INCENTIVES:
Wage incentives are extra financial motivates. They are designed to stimulate human effort by
rewarding the persons, over and above the time rate remuneration for improvements in the present or targeted
results.

Number of countries with planned or ongoing social protection measures in response to

COVID-19 (March 20-April 23,2020)

27
global assistance transfers are the most widely used class of interventions (60% of global responses, or 412
measures). These are complemented by significant action in social insurance and labor marketrelated measures
(supply-side measures). Among safety nets, cash transfer programs remain the most widely used safety net
intervention by governments (table 1 and figure 2). Overall, cash transfers include 222 COVIDrelated measures
representing one-third (32.4%) of total COVID-related social protection programs.

Composition of global social protection response (left), and cash transfers as % of social
assistance (right)

Cash transfers include a mix of both new and pre-existing programs of various duration and generosity. About

28
half (47%) of cash transfers are new programs in 78 countries (reaching 512.6 million people), while one-fifth
(22%) of measures are one-off payments. The average duration of transfers is 2.9 months. The size of transfers is
relatively generous, or one-fifth (22%) of monthly GDP per capita in respective countries. On average, this is an
increase of 86.6% compared to average pre-COVID transfer levels (where data is available for a subset of
countries)

Cash transfer size as % of average monthly GDP/capita (left) and as % of pre-covid

transfers (righ) (horizontal lines = average)

Cash transfers are being adapted to COVID-19 response in three ways. This includes expanding coverage,
increasing benefits, and making administrative requirements simpler and more user-friendly. Combined, those
adaptations benefit over 1.36 billion people. Specifically for cash transfers, Administrative adaptations are
occurring in 25 countries (figure 4). For example, anticipation of payments that due at later date (e.g., Malaysia);
flexibility in the time of collection (e.g., Algeria); home delivery of cash for seniors (e.g., Armenia);
postponement of recertification (e.g., Georgia); and waiving of conditionalities (e.g., Philippines). Increases in
benefits among preexisting programs are implemented in up to 33 countries, including transfer value being
increased in 24 countries (e.g., Egypt); additional payment cycles taking place in 11 countries (e.g., Chile). Some
countries have done both (e.g., Turkey). 4 Finally, coverage extension is underway in 72 countries: this includes
expanding coverage to those not into programs, but still in social registries (e.g., Indonesia), or extending
coverage to those partially or not listed in social registries, such as informal sector, self-employed workers (e.g.,
in two-dozen countries).

ADAPTATIONS IN CASH TRANSFER

29
Cash transfer programs are more than doubled in coverage, including an average of 152.3% in scale up levels.
Preliminary analysis for a subset of cash transfer programs with comparable data, it is possible to estimate the scale
up of programs relative to Pre-COVID19 levels. Countries like the Philippines and El Salvador are quadrupling their
coverage (in the case of Philippines also via multiple new programs), while even countries in Africa like Mauritania
are almost doubling coverage. We will keep updating and expanding this analysis in coming editions.

Coverage expansion in select cash transfer program

30
The average duration of cash transfer programs in 2.9 months. Most programs have a duration of 3
months, with several monthly one-off schemes and some longer programs in a few other cases Duration
of each transfer schemes (months)

In-kind transfers also adapted considerably, especially school feeding programs. These include 20 measures,
which have been leveraged in creative ways. With school closures, 368 million children are missing school
feeding meals globally. Many adaptations are being rolled out to ensure continuity in provisions of such meals.
For example, schools remined open just for food distribution in Chile; Costa Rica established collection points of
school meals with perishables/fresh food procured from local farmers; many countries switched to home
deliveries of meals, for example Belize; in Guatemala, those home deliveries are organized by parent
associations; in Jamaica, home deliveries will be managed by the private sector; and in Kerala state of India, not
meals, but “ingredients” are delivered to 300,000 families

In terms of social insurance, there has been a significant uptick in measures since last week. This includes moving
from 134 to 179 measures. Unemployment benefits is the most frequently adopted measure (table 2). Sick leave is
present in countries like Algeria, El Salvador, Finland and Lebanon. Unemployment benefits are reported, for
example, in Romania, Russia and South Africa. Deferring or subsidizing social contributions are present, among
others, in Montenegro and the Netherlands.

31
There has been significant expansion also in labor market interventions, including from 78 to 93 global measures.
Wage subsidies continue to be an important area of action, especially in the form of wage subsidies (table 3). As
in previous editions, we only examine a subset of labor market measures, i.e., supply-side interventions related to
workers (i.e., we don’t include demand-side measures like capital injection to firms). Wage subsidies account for
over half (56%) of the global labor market portfolio, with programs being implemented in Jamaica, Kosovo,
Malaysia and Thailand. Activation measures (worker trainings) are also being considered inter alia in Bosnia and
Herzegovina, China and Romania.

32
DEFINITION OF COMPENSATION:

According to Rynes {1987}, compensation is particularly important as a recruitment tool because

1. It is vehicle for satisfying a wide array of human needs,

2. Salary offers are expressed in clear and comparable terms

3. Stating salaries have for future salary progressive, and,

4. Pay system communicate so much about an organization’s philosophy, values, and practices.

OBJECTIVES OF COMPENSATION:

The objectives of any payment systems are numerous and might include the following:

1. To enable the employees to earn a good and reasonable salary or wage;

2. To pay equitable sums to different individuals, avoiding anomalies;

3. To reward and encourage high quality work and output;

4. To encourage employees to develop better methods of working and their acceptance;

5. To discourage wastage of materials or equipment;

6. To encourage employees to use their initiative and discretion;

7. To discourage overtime working unless it is very essential;

8. To raise morale and increases efficiency of the staff and finally keeping them contended.

TYPES OF COMPENSATION:

Compensation provided to employees can direct in the form of monetary benefits and/or indirect in the form of

non-monetary benefits known as perks, time off, etc. Compensation does not include only salary but it is the sum

total of all rewards and allowances provided to the employees in return for their services. If the compensation

offered is effectively managed, it contributes to high organizational productivity.

1. Direct Compensation

2. Indirect Compensation

33
34
4 RESEARCH METHODOLOGY

35
 4.1 Statement of the problem

It will not be mandatory for businesses now to pay wages to their workers during the lockdown. The Home
Ministry’s guidelines for the fourth phase of lockdown starting Monday has withdrawn the order for such an
action.Though, the government has not given any explanation for its move, , with the Supreme Court
barring the government from taking any coercive action against companies not following the Home
Ministry’s order on wage payment, it decided to withdraw it.“Whereas, save as otherwise provided in the
guidelines annexed to this Order (dated May 18), all Orders issued by NEC (National Executive Committee
headed by Home Secretary Ajay Bhalla) under Section 10(2)(I) of the Disaster Management Act, 2005,
shall cease to have effect from 18.05.2020,” the Order issued on Sunday said. This Order has listed various
instructions issued earlier, but not the March 29 order.

The March 29 order had said: “All the employers, be it in the shops and commercial establishment, shall
make payment of wages of their workers, at their workplace, on the due date, without any deduction, for the
period their establishment are under closure during the lockdown.” This order was similar to the Labour
Ministry’s advisory on wage cut or retrenchment. However, Home Ministry’s order was backed by an act
which means it will be mandatory and violation will invite punitive action.Many business organisations had
moved the Supreme Court challenging this order. On Friday, the apex court asked the government not to
resort to any coercive action against private companies which have not paid their workers full wages during
the lockdown in accordance with Home Ministry’s order.A three-judge Bench indicated that payment of full
wages, as directed Home Ministry’s order, may not be viable for small and private enterprises, which
themselves are tottering on the brink of insolvency due to the lockdown.
36
The court remarked that the March 29 order was an omnibus one and there were several issues involved that
required careful reconsideration from the government side. The petitions said a blanket direction from the
government to private establishments to pay full salaries against no work was arbitrary and violative of
Article 14 (right to equality) of the Constitution.
Commenting on the latest development, Virjesh Upadhyay, Genral Secretary of Bhartiya Mazdoor Sangh
(BMS) said that this new order amounts to complete injustice to workers.

4.2 Research Design

As companies try to ensure their survival by cutting costs, many have resorted to slashing salaries and laying off
people. Others have put employees on indefinite leave without pay or put freshly hired staff on hold. According to an
online survey conducted by the Economictimes.com on the impact of Covid-19, as many as 39% of the 3,074
respondents who took the survey are facing a salary cut, while 15% are set to lose their jobs Despite the fact that 15%
respondents are facing a salary cut of more than 25%, almost 43%of these are likely to continue with their current
jobs and not look for new ones.

Expectedly, not only have the careers of employees been impacted, but their budgets and financial planning have also
been skewed. Though the collateral damage is inevitable, there are ways to ensure that there is minimal disturbance to
careers and finances

As the outbreak started in December 2019 the world got alerted about the consequences which can come out
of it. After the spread of the Virus started to hit other countries for example Italy the government took a step
to stop the spread by shutting down the cities which were detected to be infected by the Virus. As the world
travels from country to country in mere 2 months the Virus almost caught every country in the world and
shaking the individual economies of every country and thus giving a massive hit to the world economy.
According to the research as India is a neighbor of China (The origin of the outbreak) there was maximum
chance of the spread in the whole country. Though India was very much confident about the situation as
they stopped international flights from and to infected countries and put a strict quarantine for people
coming from other countries near the infected area.

Adding to that Indian Government started deboarding the foreign nationals to their own respective country
just to avoid the spread of the Corona Virus. Everything was going fine until it was found that there were 14
people in the national capital which are positive for the Virus. The government had the clue that the Virus
will affect the country and its economy therefore without wasting any time the search and advisories were
issued to take precautions and help the government to stop the spread of the Virus. Before the situation got
out of control the government found a temporary solution for the safety of society by issuing an advisory to
issue a nationwide lockdown in the country, which accordingly had a negative effect on the Indian
economy. The lockdown was issued for 21 days which made all businesses go on a shutdown mode which
led to losses for the owners, and due to this the company fired their employees resulting in the increasing
rate of unemployment and less money supply in the country.

On the other hand, the priority for the government was the health and safety of the society and not the
economic slowdown as the slowdown can be taken care of once the situation is under control. According to
the research and its result it was found that the society has a futuristic approach towards the situation and is
aware of what is going on in the socio-economic sectors of the country. Most of the people said that there
will be rise in unemployment and the government should spend more share of the GDP towards the
healthcare sector in this particular situation. Another result showed that most of the people were sure about
the rise in the prices of essential item as they know that the business is on a shutdown mode and people

37
started stocking items for future resulting in lower supply and higher prices. The research showed that most
people believe that theMulti-National Companies (MNCs) will fire their employees to cover their losses as
they cannot bear them which will cause a situation of distress amongst people. There were other views
which said that the government might put acap on the prices of essential items if they started increasing
rapidly and gets out of control to bring stability in the Economy and Society. Moreover, as there is a fall in
the price of crude oil, government can take measures for the benefit of the people. Getting to a final
discussion the global economy will get a negative effect from this situation and talking about India the
lockdown is said to be a temporary solution to the situation and once it is over the situation will again start
to get worse. Not only India but the world is contributing towards getting rid of this situation and trying to
get a possible permanent solution to the problem and get the economic and social sectors back on track. The
below graph shows

Responsibility of the Employers

1 Payment of Wages: 

Every Employer is responsible for the payment of wages to the respective employees. In cases of Factory,
Industrial Establishment or Railways following persons shall also be responsible for the payment of wages-
Manager or Supervisor, any person appointed by the establishment/employer for the same, any person
nominated by the Railway Administration in case of Railways for the respective area.

2 Fixation of Wage Periods: 

Each entity responsible for the payment of wages, should fix the wage period which may be on daily,
weekly, fortnightly or monthly basis. But in no case it should exceed beyond one month.

3 Time of Payment:
 Every employer/manager should make timely payment of wages. If the number of employees in any
factory, industry, establishment or railways is less than 1000, then the wage/salary must be paid within the 7
days of the following wage period. In case the number of employees exceeds 1000, the payment should be
made within the 10 days of the following wage period.
Termination of employment by the employer or on behalf, the payment of due wages should be paid within
2 working days from the date of termination. In case of termination due to closure of the factory,

38
establishment as the case may be, payment should be made before such closure.
All payments of wages to be made on the working day.

4 Mode of Payment: 
Salary/Wages may be paid in cash or through cheque or direct credit to the respective bank account of the
Employee is allowed under the Act.
Payment of wages in kind is not permissible.
Deductions from Wage/Salary
 Payment of Wages should be made without any deductions except for those authorized under the
Act or approved by the Government (EPF, ESI, Income Tax, Professional Tax, etc).
 No Fines in respect of an act or omission shall be imposed on employee unless notified under the
Statutory Act or by the Competent Authority. #Fines cannot be levied unless the Employee has been
given the opportunity to defend himself/herself. Amount of fine should not exceed 3% of the wage
payable during the concerned wage period, and should not be recovered after the expiry of 90 days,
or in installments. In case of damage of goods or loss of money, due to employee’s negligence,
he/she should be given complete opportunity to show cause before deduction, not exceeding value of
actual loss.

Wages Payable for the Wage Period Period of Absence (Days)/ Total Wage Period

- Shortfall in terms of hours to be calculated accordingly.

- Employee/s on strike where it is illegal and unjustified, shall also be deemed as absence from duty.
- Employer/s may also deduct wages on the principle of “no work no pay” even if there is no
provision in the contract permitting the same.

- Deduction for accommodation or other amenities as notified by the Government, to be provided by

the employer, not exceeding value of benefit. Recovery of advances (including those for travelling
and conveyance allowance) and interest thereon, shall be made in accordance of the guidelines of the
Government and the Act.
- Deduction for recovery of loans from Labour Welfare Fund, and housing loans, along with interest,
shall be made in accordance to Section 12A and rules laid down by respective State Government.

Deduction Limit

Permissible Deduction during any Wage Period should not exceed;

 wherein, deductions are wholly or partly made for payment in Co-operative Societies, 75% of the
wages; and
in other cases, 50% of the wages.

39
  Maintenance of Record, Registers and Filing

Establishment is required to submit an annual return of Wages in Form IV, in respect of the
concerned year, by 15th February of the Succeeding Year. Register maintaining records of the
Employees, payment of wages, deductions and fines imposed should be maintained by the
Employer. Such records are to be preserved for atleast 3 years.

 Notice Display

Establishment/Factory should display notice containing the abstracts of the Act and the rules made
thereunder, at prominent places within the premises, in prescribed form, in English and vernacular
language understood by majority of the employees.

 Rights of Employers and Employees

Employer/s have right to make permissible deductions from wages of an employee. Along with
rights to appeal against any order related to wrongful deductions within 30 days from issuance of
such order. However, appeal can be made when the compensation exceeds Rs 300/- or financial
liability is in excess of Rs 1,000/-.
Employees have right to claim unpaid or due wages, unauthorized deductions and fines imposed.
Application may be made for such claims within 12 months, any further delay in application needs
to be backed by sufficient cause for delay. Appeal against any order of the payment of wages
authority.

 Offences and Penalties

Violation of the provisions under the Act will attract penalties in form of fines and imprisonment.
Depending on the nature of offence, the fine may go up to Rs 22,500/- and more, provision of
imprisonment up to maximum of 6 months is also provided under the Act

 MANAGE YOUR CARRER

Even as careers run into large-scale disruption, experts are of the opinion that it may not last too long.
“Remember that this is just a phase and normalcy will return after a cure is found. This is not like the 2008
global financial downturn where the uncertainty about recovery was very high,” says Sanjay Shetty, Head,
Strategic Account Management, Randstad India. So it may be a good idea not to have knee-jerk.

40
Here’s how to deal with specific situations:

Even as careers run into large-scale disruption, experts are of the opinion that it may not last too long.
“Remember that this is just a phase and normalcy will return after a cure is found. This is not like the 2008
global financial downturn where the uncertainty about recovery was very high,” says Sanjay Shetty, Head,
Strategic Account Management, Randstad India. So it may be a good idea not to have knee-jerk reactions
and hurt your career prospects.

1. Job losses & salary cuts

Companies are slashing salaries or laying off people in the short term to be able to survive by cutting costs.
It is in the employees’ interest that the company survives to ensure job security. “So even if you’ve had a
big salary cut, wait rather than quit to look for a new job,” says Shetty. “The company is bound to
remember employee support and make up for it later when growth resumes,” he adds. If you feel you might
lose your job, do not bel ..

do not believe all rumours and quit proactively. At the same time, make sure you start circulating your
resume immediately. It is always better to find a new job while you still have one in hand. If you’ve already
lost your job, it might be a good idea to upskill during the lockdown so that you have a better bargaining
power to land a better job.

2. Leave without pay

“I’m just so confused about what to do as I love my job but have no way of knowing whether I will retain it or not,”
says Pooja Anand, 20, who works in a digital marketing and PR firm. She has been asked to go on leave without pay
till further notice. “While it is better to wait for two or three months before taking a decision, one should get in touch
with the right stakeholders and recruiters to know what the company is planning,” says Shetty. Similarly, ..
if you’ve just been hired but then put on hold, you should get it in writing from senior people in the organisation that
the job is confirmed and you will be hired after the situation stabilises. Remember that it is not even in the company’s
interest to spend a huge amount of money and go through the hiring process all over again after a few months. So be
patient, but also be proactive

3. Increment and performance

“Most organisations have held back appraisals till the lockdown period and may decide on increments after
stabilisation of offices and work. The status depends on how soon the companies bounce back after the
lockdown,” says Sharma of Teamlease. If your increment or performance-linked pay has already been
withheld, wait. “Three to six months after the lockdown, consumer behaviour will change again. The pent-
up demand will hit the market, resulting in a boost to businesses and the need to reward performers. Expect
a reasonable increment to return next year.

If your salary had been converted to a larger variable component, you will earn even more from bonuses,”
says Devashish Chakravarty, Founder and CEO at QuezX. com. However, if the pandemic resurfaces or
your sector is unable to recover, it may not go as planned.

41
.

B. PROTECT YOUR FINANCES

With salaries slashed, increments withheld and variable pays put on hold, the household budgets of lakhs of
families have gone haywire. The situation is worse for those who have lost their jobs. How do you keep
your finances on track?

1. Secure your risks

The first step is to stop panicking and secure your risks. Do you have an emergency corpus to help you sail
through the period of job loss? If you don’t, build one that is worth six months’ of household expenses
immediately. “One of our surveys has revealed that 58% of people will not be able to meet their monthly
expenses

Next, make sure you have enough health and life insurance. If you lose your job and are without an
employer cover or an independent cover, your medical expenses could deplete your savings. So get a family
floater plan of at least Rs 5 lakh and a term life insurance. “It may be time to think whether you want to
continue with your traditional insurance plans

2 Assess, prioritise, allocate

Next, list your income and outgo, assets and liabilities. While your salary may have reduced, your savings
could have gone up due to reduced travel and work-related expenses, cutting down on eating out and
entertainment, as well as discretionary expenses. This will help you know how much you can afford to
spend and whether you will be able to reach your goals or not. “Based on your assessment.

 Reschedule EMIs, premiums, SIPs

If you’ve lost your job, you may need to reschedule your loan EMIs, stop your SIPs for a few months and
request a delay for your insurance premiums from the respective institutions.

 Supplement your income

Last, but not least, find ways to increase your income. Reskill, start freelancing, and monetise your passions.

42
  PRIMARY DATA:
The information consists of data gathered from the differnt source. Primary data is the refresh
data. This has been collected from various sources. The sources adopted to get data is questionnaire and
through observation.
Questionnaire is designed in such way that every employee can understand. It consists of 16
questions which are sample and close and open end question.

 SAMPLING:
In order to get data a sample size of 100 is taken and employee selected on random base.

 SECONDARY DATA:
The data is collected from published reports, unpublished reports, annual reports, unpublished manuals
and materials etc.

43
4.3 HYPOTHESIS IF ANY
1 Healthcare will become part of a country’s critical infrastructure

The Covid-19 pandemic reminds us that healthcare is part of a country's critical infrastructure. Expenditure
for health care will come to be viewed as an investment in a country’s prosperity and competitiveness, and
no longer as an annoying cost factor. Consequently, development of the healthcare system will become a
central issue on the long-term agenda for each country’s growth, along with ensuring ecological
sustainability and expansion of the digital infrastructure.

2 Technology development and production: Global teamwork wins out over

independent national initiatives

Covid-19 shows us that independent national initiatives in healthcare do not work. Whereas research
facilities searching for quickly available therapy and vaccination solutions now exchange information
unbiased by national egoism, attempts are being made to roll back the global distribution of work in the
development and production of ventilators and protective equipment. But in a crisis such as this, we need
more and not less international cooperation. What has now become painfully clear in this pandemic also
applies to the same extent for chronic illnesses such as cancer and diabetes. No country will be able to
defeat these “creeping” pandemics on its own.

3 More technology and greater efficiency for more humanity

Before the Covid-19 pandemic, global health spending was around seven trillion euros a year. Despite this
huge sum, calls are now emerging for additional investments to prepare for further pandemics. This cannot
be financed and will therefore accelerate a rethinking process: Instead of putting more money into
moderately efficient healthcare systems, we will increase the efficiency of existing systems while enabling
more people to access to modern healthcare. Of the seven trillion euros spent on healthcare globally, less
than one percent is invested in technologies that boost the overall efficiency of the healthcare system. If we
expect physicians and caregivers to provide high-quality and empathic care, we should also ensure they
have the technical resources they need to carry out their tasks as comprehensively and productively as
possible.

44
 Data Interpretation
(Chart, Graph, Diagrams)

45
Q.1 15% of employees may lose their jobs
Company’s reaction to Covid

17.9% of the respondents who are likely to lose their jobs have a work experience of 10-14 years.

46
Q.2 Despite cuts, 43% to continue in same jobs
Will you change jobs after a cut?

19.6% of the respondents who got a 16-25% salary cut have a work experience of 10-14 years.

47
Q.3 15% are facing a salary cut of more than 25%
Salary cut

OVER Rs 2 lakh: The income category which has the most number of respondents with a salary cut of 16-
25%.

48
Q.5 31% are confident they’ll find a new job soon

60% would rather work from home

Do you prefer to work from home?
No: 40%
Yes: 60%

41% of the respondents who believe working from home is a better option belong to the age group of 26-35
years.

49
Q,6. 1 in 2 employees has reskilled in lockdown
Upskilling during lockdown

59.8% of the respondents who have upskilled during the lockdown are those with a work
experience of 10-14 years.

50
Q.7 47% don’t know if they will lose jobs
Will you face job loss?
Yes: 11%
No: 42%
Don't know: 47%

51
Q.8 The Wages and Salary system for all employees in Facor is Satisfactory
(a)Strongly agree (b) Agree (c) Partly agree (d) Disagree

TABLE NO : 8

SL.NO OPTIONS NO. OF PERCENTAGE

RESPONDENTS (%)
1 Strongly Agree 53 53
2 Agree 22 22
3 Partly Agree 18 18
4 Disagree 7 7
TOTAL 100 100

GRAPH: 8

100
90
80
70
60
50
40 NO. OF RESPONDENTS
30 PERCENTAGE (%)
20
10
0
e e e ee L
gre gre gre gr TA
A A A sa TO
ly rtl
y Di
ong Pa
r
St

ANALYSIS :

53 percentage of the respondents strongly agree that they are satisfied with wages and salary system, 22
percentage of them agree, 18 percentage of them partly agree and 7 percentage of them disagreed.
Maximum number of the respondents opinion that the wages and salary system in FACOR is Satisfactory.
Minimum number of respondents opinion is that it is not Satisfactory.

52
Q.9 Are you getting your pay as per the laws
a)Yes (b) No

TABLE NO: 9

SL.NO OPTIONS NO.OF PERCENTAGE

RESPONDENTS (%)
1 Yes 100 100

2 No 0 0

TOTAL 100 100

GRAPH: 9

100
90
80
70
60
NO.OF RESPONDENTS
50
PERCENTAGE (%)
40
30
20
10
0
Yes No TOTAL

ANALYSIS :

100 percentage of the respondents said that they are getting their pay as per the laws. None of
them i.e., 0 percentage responded negatively. 100 percentage respondents stated that they are getting wages
according to law. Permanent employees are getting more than the minimum wages which includes their

53
Q.10Are employees paid for overtime if their work over and above their contracted hours
Yes (b) No
TABLE NO : 10

SL.NO OPTIONS NO.OF PERCENTAGE

RESPONDENTS (%)
1 Yes 100 100

2 No 0 0

TOTAL 100 100

GRAPH: 10

100
90
80
70
60
NO.OF RESPONDENTS
50
PERCENTAGE (%)
40
30
20
10
0
Yes No TOTAL

ANALYSIS :

In table no. 12, it has found that 100 percentage of the respondents agree that the employees are paid for
overtime and above their contracted hours. 0 percentage of them disagreed for that. The standard working
hours in a week is 48hrs. As an organization FACOR avoids persistent working of extra hours. Employees
are paid overtime with the monthly wages for any extra hours worked. 100 percentage employees responded
to the favourably which shows that employees do get monitory benefits as per law when they put in extra
hours at work due to business requirements.

54
Q.11 Are you getting the salaries on time every month
(a)Yes (b) No

TABLE NO: 11

SL.NO OPTIONS NO.OF RESPONDENTS PERCENTAGE

(%)
1 Yes 100 100

2 No 0 0

TOTAL 100 100

GRAPH: 11

100
90
80
70
60
50 NO.OF RESPONDENTS
PERCENTAGE (%)
40
30
20
10
0
Yes No TOTAL

ANALYSIS :

100percentage of the respondents said that they are getting the salaries on time every month. None of them
i.e., 0 percentage responded negatively. 100 percentage respondents stated that they are getting the salaries
on time every month in company rules and regulations.

As companies try to ensure their survival by cutting costs, many have resorted to slashing salaries and
laying off staff. Others have put employees on indefinite leave without pay or put freshly hired staff on
hold.IMPACT OF COVID19 as many as 39% of the 3,074 respondents who took the survey are facing a
salary cut ,while 15% are set to lost their jobs despite the facts that 15% respondents are facing a salary cut
of mare than 25% almost 43% of these are likely to continue with their current jobs and not look for new
ones.

55
FINDING

56
 1.1 Finding

It is revealed that when the global economy is on a slowdown mode no emerging economy can grow at its
normal pace. The Indian economy was grappling with its own issues and COVID-19 made the matters
worse. India’s GDP has been on a consistent decline after peaking out at 7.9 in Q4 of FY 2018 to 4.5 in Q2
of FY 2020. The industry was facing demand problems, due to which business houses were reluctant to
undertake capex plans, unemployment was at its peak and exports which were consistently down for several
months. India has the problem could be more acute and longer lasting, the economy was in parlous state due
to Covid-19 struck. Due to the measures adopted to prevent the spread of the Coronavirus Disease 2019
(Covid-19), especially social distancing and lockdown, non-essential expenditures are being postponed.

This is causing aggregate demand to collapse across the India. In addition to the demand reduction, there
will also be widespread supply chain disruptions, as some people stay home, others go back to their villages,
imports are disrupted, and foreign travel is stopped. This will negatively affect production in almost all
industries. Gradually the shock will spread to manufacturing, mining, agriculture, public administration,
construction – all sectors of the economy. This will adversely affect investment, employment, income, and
consumption, pulling down the aggregate growth rate of the economy. Like India, several international
economies are becoming cognizant of the risk they face by being overly dependent on one market. Making
the current situation a learning opportunity, this is the time India can work on capturing potentially 40% of
their competitor’s market share by looking at indigenous production of goods, furthering the country’s
Make in India campaign.

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6.2 Suggestions & Recommendations

Here are a few suggestions that the policymakers can consider as they gear up to deal with the economic
crisis. 1. The first measure must be to protect the workers in the informal sector, who will be badly affected,
and yet have little savings to tide them over the shock. This will not be easy to do, but there are two
mechanisms that could be utilized: MNREGA (Mahatma Gandhi National Rural Employment Guarantee
Act) and Jan Dhan accounts.

2. For organized sector as discussed above, the objective should be to make the banks somewhat less risk
averse in their overall lending, while preserving their authority to distinguish between viable and non-viable
firms.

3 To increase liquidity and increase consumer confidence, the Government of India should provide a pay
roll tax holiday for a quarter to help support demand in these stressful times.

4. MSMEs should be provided concessional working capital loan, equivalent to one to three month’s (based
upon the extent of disruption) average turnover of last year. To support them, when the supply chains have
been impacted globally, MSMEs should also be provided concessional finance at a rate of 5% for three
months through SIDBI. The interest payment for such financing can be adjusted over the next three years as
part of GST.

5. CSR spending by corporate organizations should be directed towards a response fund dedicated for the
management of the pandemic.

6. A disaster management framework focused on managing disease outbreak will become essential in the
large and densely populated country.

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 7 Conclusion

In India, this has not yet started in a systematic manner and needs to be prioritised alongside steps to deal with the
health crisis. By rationalizing tax rates or providing tax relief curb the impact of COVID-19 on the Indian economy
might know after implementation of measures. About necessary measures to combat the economic impact from the
rapidly spreading coronavirus, the Government policymakers would need to implement a substantial targeted fiscal,
broader monetary stimulus, and policy rate cuts to help normalize the economic situation. As the COVID-19 crisis
continues to expand, manufacturers will likely face challenges on numerous fronts. Manufacturers will also need to
look beyond their own economic viability. They will need to coordinate closely with the public sector to forge plans
that are essential to both public safety and the solvency of their workforce, while keeping the lights on in their
operations. challenging climate. Some will be austere, but austerity measures should be tempered to preserve long
term objectives.

across the globe and in their own country. People think that the prices of essential commodities like bread, milk, etc.
will rise because of excess demand and shortage of supply which is caused due to disruption in supply chain. They
have a keen insight of the current spectrum of economy and know that the CoronaVirus can lead India as well as
world economy in recession which can cause a massive amount of unemployment in the country resulting in low GDP
per capita and less income in the society. The FDI is also going to reduce resulting in a negative impact on businesses,
due to the lockdown the small and medium scale industries are already at a verge of bankruptcy due to less or no
production. Required skilled workers are not available as all the educational institutions are closed amid of the
outbreak to stop the spread of this deadly respiratory disease which is killing thousands of people. The research also
shows that most of the Indian population thinks that the companies will start firing their employees in order to
overcome the losses they might face due to this pandemic and closing down of businesses all over the world. The
travel industry will be suffering the most as the domestic as well as the international tourism is banned in all the
countries which creates a massive loss in the hospitality and aviation industries. The prices of crude oil will also fall
because of lesser demand and ample supply. The pharmaceuticals industry is also facing a slowdown as China being
the main supplier of raw material is on a shutdown and the imports are on halt. Moreover, requisite skilled labor is not
available to manufacture different drugs.

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 REFERENCES

 Human Resource Management, Excel publications.N.K. Singh

 HRD and Management.Ghosh

 Human Resource management, Oxford university press.Jyothi

 CII (2020). COVID-19 Impact on Industry and Economy, 24th March 2020.
https://www.mycii.in/KmResourceApplication/65567.COVID19PMOnote20Mar2020002.pdf 6.

 CRISIL (2020). The COVID-19 fall out quantifying first-cut impact of the pandemic. 19th March 2020.
https://www.crisil.com/en/home/our-analysis/views-and-commentaries/2020/03/the-covid-19- fallout.html

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