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Documents 1
Documents 1
INTRODUCTION
NEED FOR THE STUDY
OBJECTIVES OF THE STUDY
SCOPE OF THE STUDY
METHODOLOGY
LIMITATIONS
CHAPTER 2:
INDUSTRY PROFILE
COMPANY PROFILE
CHAPTER 3:
THEORETICAL FRAME WORK OF THE STUDY
CHAPTER 4:
ANALYSIS AND INTERPRETATION OF THE STUDY
1
A STUDY ON
WAGE AND SALARY ADMINISTRATION
(With Special Reference to FACOR ALLOYS LIMITED)
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.
The remuneration paid to the clerical and managerial personnel employed on monthly or
annual basis. It is the amount of remuneration for unit of time excluding incentives, overtime pay
etc. Is the amount of wage fixed for the unit of time fixed on the basis of job evaluation
standards? Is an assembly of all properly evaluated standard?
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NEED FOR THE STUDY
Many organizations today, in order to competent enough to meet the challenges need to
continuously changes to develop wage and salary administration.
Thus Companies are supposed to adopt well-built wage and salary administration.
Need for the study is that the performance of wage and salary administration is to be
studied in order to make changes if any, in order to retain the employees and also to
attract.
The new employees to meet the challenges of the organization.
The study also aims at evaluating the practical wage and salary administration under
taken by the organization in their work environment to improve their working skills.
The present study has been conducted with the following objectives:
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 Factor.
METHODOLOGY
In study the primary data collected by means of personal interview with the help of
questionnaire.
PRIMARY DATA:
The information consists of data gathered from the different 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:
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The data is collected from published reports, unpublished reports, annual reports,
unpublished manuals and materials etc.
The study made by me in FACOR ALLOYS Limited was confined to determine wage and
salary method and practices being followed:
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INDUSTRY PROFILE
FERRO ALLOY INDUSTRY REQUIRES LEVEL PLAYING FIELD IN
THE LIBERALISED ECONOMY:
The Indian Ferro Alloy Industry is not as old as the Steel Industry. From a humble
start in the fifties the capacity has grown enormously with enough potential to increase exports in
future. However, the high power tariff in India is the stumbling block. Though the industry
started getting power from National Power Corporation at NTPC tariff, it is still higher than the
power tariff available in countries like Norway, China, and Russia, Kazakhstan etc., which are a
major producers and exporters of Ferro alloy too.
What is more, the import duty on Ferro alloy has also been reduced drastically to 25
per cent in the post – liberalized era. Further, steel exporters are eligible to import their raw
material including Ferro Alloys free of duty against advance license. With plenty of raw
materials like ores and reluctant available in the country, what the industry needs is a level
playing field by power being made available at international comparable tariff. The Indian Ferro
Alloy Industry is more than four decades old, as produces Bulk and Noble Ferro Alloys.
Through this Industry is not as old as the steel industry, its capacity has increased
substantially from a humble start in the fifties, meeting the requirement of the steel industry in
the country. The growth of the steel industry has not picked up as expected, whereas the growth
of the Ferro Alloy Industry has stepped up, much more than the expected level. With the result,
the capacity available in the country is much more in the Ferro Alloy Industry.
It is a lot of potential to increase its exports in the near future. India has been
6
Table 1 statement showing production of Ferro Alloys during 2006-07 to 2010-11 as
available with the association. (Quantity in Tones)
The capacity increase of the Ferro industry in general, followed the course to meet the
planned target of steel industry in the country, and also to remain potential exporters of Ferro
Alloys in the international market to earn substantial foreign exchange for the country. However,
the performance of the industry started deteriorating from the mid-sixties, due to various reasons,
the foremost being, steep increase in the power tariff, fuel, oil, raw materials and transport
charges.
Exports started sliding from 1978 onwards. The eighties witnessed the maximum
erosion in the export performance of the Ferro Alloy Industry. However, after initiation of the
liberalization programmed, there has been a spurt in the export of Bulk F
ORGANIZATION PROFILE
FERRO ALLOYS CORPORATION LIMITED
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Name : FACOR Alloys Corporation Limited
Incorporation : 1955
Director : R.K.Saraf
Aim Saran
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State Bank of India
Syndicate Bank
FACOR has created a respectable place for a remote place called Gravid in the
industrial scenario after establishing its first Ferro Alloys plant in 1956. The FACOR township is
named after late Bahadurseth Shreeramji, the father of the founder of this great organization late
Sri. Durgaprasad Sharif (father of the present Chairman Sri.Umashankar Agarwal and V.C &
MD.Sri.R.K.Sharaf) as SHREERAMNAGAR.
FACOR was established as a public limited company by the families of SHARAF’S and
MOR’S in the History of Ferro Alloys, this has become the first of its kind and a major producer
of Ferro Manganese in the country. FACOR is not only a leader in
CREDENTIALS OF FACOR:
It is the country’s first Ferro Alloys Plant.
It is the first plan to innovate and introduce Chromium Alloys and also the only single unit to
meet country’s requirements.
It is the first unit to produce Magnesium Ferro Silicon.
It is the first to take up the erection and commissioning of the wholly indigenous furnace without
any foreign component or consultancy.
The first in the country’s to export Ferro Manganese
It is the first among the various Ferro Alloys, producing unit to take up the manufacture
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FACOR (FACOR Alloys Limited) at Shreeramnagar (Gravid) is situated at 85 Km north
of Visakhapatnam port. The main factors motivated to establish a factory in Shreeramnagar are
Availability of labor at cheap rates
Availability of continues water supply
Availability of power station near by
Availability of low grade Manganese or near by
Cheap availability of the communication and transport facilities.
Availability of labor at cheap rates is one of the important and it is true in the case of
FACOR. Regarding supply of water there is a big Banta situated very nearer to with the plant. It
is big tank of 200 ft. depth and four five acres of plinth area.
This unit was established along the Madras-Howrah Railway Track which generally
contribute to easy transportation and FACOR is located the side roadway linking Srikakulam-
Visakhapatnam. Hence it offered good communication and infrastructural facilities. It is nearer
to Visakhapatnam Port to export its products.
The Government of Andhra Pradesh supplies electricity at lower rate. The nearby villages
are the main sources of raw materials like sand, manganese or is available at nearest villages
Gravid, Koura, Garb ham, Divide and Sadanandapuram.
TECHNICAL COLLABORATION:
The Ferro Manganese plant located at Shreeramnagar works division contains three
furnaces of each 7.5 KVA capacity to produce all varieties of Ferro Alloys, to meet the demand
of country’s steel makers. The technical assistance was provided to establish these Furnaces by
M/s Elkin A/s Oslo, Norway.
The technical process is very advanced and innovative that visitors from Finland,
Norway, South Africa, Germany, Austria etc., visited the plant and learnt about the process. The
Ferro Chrome Division has also obtained the technical assistance in constructing two furnaces
from M/s Elkin, Oslo, Norway and M/s Electro Invest A/S St
As a part of FACOR’S vertical integration it has set up a steel plant at Nagpur in 1978,
producing special steels like Carbon Steels low alloy steel for the free going industry and various
stainless steels of all grades under quality control standards to meet the demand of the country.
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Thus FACOR is called as a ‘Steel Maker’. In 1979, FACOR established its own Research and
Development wing the remarkable technology to produce charge chrome, the wonder alloy for
stainless steel manufactures, desired b
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Electric Power.
The raw materials are obtained from Orissa, Maharashtra, Bihar and West Bengal,
Sometimes coke and chrome ore are also imported from Japan, China, Turkey, U.A.E. etc.
Annual consumption of the raw materials for full production is around 3 lakh tones.
The raw materials are sized and blended in ore preparation plant before using in the
furnaces. Blended materials are stocked in the yard sheds near the furnaces.
STORAGE AND FEEDING TO FURNACES:
The raw materials are initially fed to respective Ground Hopers, Skips Hoist, Bucket
Elevators, Temper Cars etc., in sequence in order to have intermediate storage at individual
furnaces.
RECRUITMENT:
A thorough job analysis is under taken and then existing employee pool is referred
and matches to the required employee qualities with job specification, if it matches the employee
is assigned the job, if not a new candidate will be introduced into the organization.
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CAPTIVE POWER PLANT:
One of the basic raw materials for FACOR is power, which constitutes shortage,
and heavy and continuous power cuts and low voltages, production hampered and there were
heavy losses due to non-availability of finished goods at required time. So FACOR planned to
establish its own power generate plant during 1990-91 and the cost of generation is almost 50%
of cost of power supplied by APSEB power generated in the plant is meeting also 50% of the
FACOR requirement.
The basic raw material for power plant lubricants is produced from HPCL Vizag.
The FACOR provides employment nearly for 10000 employees and has been instrumental in
building industrial township of Shreeramnagar (A.P) Durgaprasad and Sri Durgapur (Orissa).
MANUFACTURING PROCESS:
The raw materials are smelted/heated to 1500 to 2000c and then alloys are trapped
from electric arc furnaces in molten states, at prescribed intervals, along with the bye-products
which are called slag. The melt is separated into metal and slag and collected in receptacles.
After cooling the metal and slag are handled separately.
FINISHED PRODUCTS:
The various types of Ferro Alloys products are as follows:
Among the products, the High Carbon Ferro Chrome is only producing by FACOR at present
.
WORKMEN/EMPLOYEE EMPLOYED:
The existing manpower at Shreeramnagar works in about 1000, out of which:
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Work men Skilled 219
Work men Administration 89
Work men Permanent 213
Mining employees 5
TOTAL 636
PERSONNEL MANAGEMENT:
The Management has committed for the professional management in the process
of which the employees are considered very important and prime resources for the development
of the organization. Thus, management envisaged Employee’s excellence Scheme (EERS).
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is based on eight quality international standard to imply uniformity in the structure of quality
management systems of uniformity of documentation.
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e) EDUCATIONAL FACILITIES
f) CULTURAL & SPORTS
g) PLACES OF WORKSHIP
h) TV & VCR FACILITIES
i) KALYANA MANDAPAM
j) SOCIAL ACTIVITIES
k) OEU LIONS EYE HOSPITAL
l) BALVIHAR FOR ORPHANS
m) WOMEN WELFARE CENTRE
n) NARINIKETAN.
School for Deaf & Dumb & Mentally retarded, a school for Blind and
Handicapped children.
For wellbeing & improving the socio economic conditioned in the area also.
LYSIS OF WAGE AND SALARY ADMINSTRATION:
The following are the allowances which are given to employees and to workers in
FACOR
ACTING ALLOWANCE:
1) FOR REGULAR WORKMEN:
A: Acting allowance will be paid to the workmen in the grade of 01, 02 and 03
Grades in case they work on any day in a vacancy in a permanent sanctioned post of 1, 2, 3 and 4
grade respectively, at the rate of Rs.30/- per day provided and said vacancy is due to the absence
of the workmen on the higher grade but not of workmen who has been awarded the said higher
grade by virtue of length of services without getting the designation in the higher grade.
B: Any workmen who have been awarded the next higher grade due to length of
the services only will be eligible for acting allowances when on any day he works in the vacancy
of the higher unit he is promoted to the higher cadre by change of designations and when
permanent vacancy arises in the higher cadre.
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Acting allowance shall also be paid to the casual operation when they are engaged
in place of permanent workmen in the higher category of 03 & 04 grade at the rate of Rs.30/- per
day. No acting allowance will they are engaged in the place of 2 grade personnel.
GENERAL:
1) Acting allowance shall not be paid.
a) Unless there is a temporary vacancy of permanent sanctioned higher category.
b) If there is a permanent vacancy filled in the same category or the same grade.
2) Claims for the acting allowance from all departments must be routed through Personnel
department only.
3) Regarding making of the details and the workmen engaged in acting places. DFR (daily
foreman report) should be confirmed so that time office can follow acting allowance formula
accurately.
4) If any workmen to refuse to act in higher grade against the instructions of his supervisors with
a workmen will disqualify himself for the further promotions of higher cadre and the concerned
head and the departments are suggested to make a note of such refusal and intimate the personnel
department for nothing the personnel file of concerned employee.
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working in higher position and once he is promoted he would be in a position to carry out the job
easily. Therefore, whenever the workmen are asked to act higher position they are advised to
obey and act in higher position to avoid being disqualified from promotion.
SAM
62: Rs.5500-255-6520-285-7660-315-8920-345-10300-375-11800/-
DM
63: Rs.6000-295-7180-330-8500-365-9960-400-11560-435-13300/-
SDM
64: Rs.6500-335-7840-375-9340-415-11000-455-12820-495-14800/-
M
65: Rs.7000-375-8500-420-10180-465-12040-510-14080-555-16300/-
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SM
66: Rs.7500-415-9160-465-11020-515-13080-565-15340-615-17800/-
AGM
67: Rs.8000-455-9820-510-11860-565-14120-620-16600-675-19300/-
DGM
68: Rs.8500-500-10500-560-12740-620-15220-680-17940-740-20900/-
GM:
69: Rs.10000-1000-14000-1150-18600-1300-23800-1450-29600-1600-36000/-.
CAR ALLOWANCE:
GRADE ALLOWANCE P.M
63 & above Rs.2500/-
SCOOTER ALLOWANCE:
For all workmen Rs.530/- & supervisors Rs.560/-.
MOPED ALLOWANCE:
For all workmen Rs.320/- & supervisors Rs.350/-.
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3. All the employees are eligible for vehicle allowance provided they produce their C-books of
their vehicle to the personnel department once in a quarter for getting allowance subsequent
quarter.
CYCLE ALLOWANCE:
All permanent workmen and supervisory personnel are eligible for cycle allowance of
Rs.65/- pm unskilled workmen Rs.30/- pm.
UNIFORM ALLOWANCE:
Uniform allowance of Rs.450/- per annum is paid annually to certain categories of
employees and above.
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PETROL BUNK DUTY ALLOWANCE:
Petrol bunk duty allowance of Rs.530/- is paid to the clerk of stores and paid to clerk pf
stores and purchases section of materials department who attends to the issue of petrol or diesel
to company’s vehicle and employees vehicles.
TRAVELLING ALLOWANCE:
An employee is eligible for traveling allowance if journey is undertaken for following
purpose.
Tour (official)
For medical examination or treatment of an employee any member of his family of
Approved by company medical officer
To participate in sports, games and cultural programmers this authorized sponsor by the
company.
To receive national awards.
To attend training programmers, seminars, conferences.
To appear in courts as witness or assessor.
For any other journey undertaken as per the instructions of the management.
SETTING ALLOWANCES:
A person on joining is entitled from reimbursement of railway fare from itself, wife,
dependent and children for travel from its place to shreeramnagar by the shortest route detailed
below.
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CATEGORY OF EMPLOYEES DRAWING:
Basic salary per month Eligibility
Actual, air, train, taxi
AC 1st Class, 2nd Class AC
By Train
2nd class by train.
EXTRA WAGES:
These are granted on the basing on the recommendation of the departmental heads in case
of employee works on one day off.
In case of employee works on extra hours beyond their duty.
In case of employees asked to work on paid holidays or optional holidays, one extra wage
is given in the paid holiday.
In case of employee calming extra wage of the extra work after the normal working
hours. Extra work of minimum three hours and above will be considered.
This system is for 5 grades. In case of assistant managers i.e., from grade 6 the extra
hours is for 8 hours continuously after normal working hours, the employees from grade
7 are eligible for extra wages.
In case of deputy managers and Sr. Deputy Manager’s works on Sunday as paid Holiday
they are given compulsory d-off for that days.
Managers and above are not given extra recommendations for working d-off paid day.
CLASSIFICATION OF OVERTIME:
The over time is classified as details below:
1) For emergency breakdown due to which production activity etc., get hampered.
2) To fill up sanctioned complement due to leave vacancy absence where usual workman
could not be arranged.
3) For completion of normal work which could not be in regular time.
For completion of annual of such works which are not being regular in nature but have asked
to carry in regular time.
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COMPENSATORY D-OFF:
SITUATION (1):
If a workman works on day off paid/optional holiday workman will be granted in CD in
he had worked for the while day on his day-off/paid-optional holidays.
Half CDO if he had worked only for half day off paid holidays.
Will be granted one CDO if he had worked for whole day on his day off/paid optional
holiday.
FOR WORKERS:
Section in charge will grant the CDO. If he had worked for whole day off/paid holiday or
optional holiday.
FOR SUPERVISORS:
Department Head will grant the CDO.
He will be granted one CDO if he had worked for whole day off/paid holiday or optional
holiday.
SECTION (4):
Sanction of CDO’s at stretch.
SECTION (5):
Time limit with in3 months, CDO’s must be availed.
HUMAN RESOURCE MANAGEMENT DEFINITION:
According to Flippo, human resource management is the planning, Organizing, directing
and controlling of the procurement, development, compensation, integration Maintenance and
reproduction of human resources to the individual, organizational and societal objectives are
accomplished.
To help the organization to attain its goals by providing well-trained and well-motivated
employees.
To utilize the human resources effectively in the achievement of organizational Goals.
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To enhance the job satisfaction and self-actualization of employees by Encouraging and
assisting every employee to realize his or her full potential.
To establish and maintain productive, self-respecting and internally satisfying working
relationships among all the members of the organization.
To bring about maximum individual development of members of the organization by
providing opportunities for training and advancement.
To develop and maintain a quality of work life which make employment, in the
organization a desirable personal and social situation.
To maintain high employee morale and sound human relations by sustaining and
improving various conditions and facilities.
To manage change to the mutual advantage of individuals, groups, the organization and
the society.
PRINCIPLES OF HUMAN RESOURCE MANAGEMENT
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5) PRINCIPLE OF TEAM SPIRIT:
Team spirit must be developed in the workers. They should work collectively and
they should feel collective responsibility for the attainment of the objectives of the organization.
6) PRINCIPLE OF EFFECTIVE COMMUNICATION:
There must be effective channel of communication between the management and the
workers. The orders of higher authorities should reach the workers, while workers requests and
grievances should reach the higher authorities in a proper way.
7) PRINCIPLE OF FAIR REMUNERATION:
Labor should be given fair and proper compensation for the work they rendered.
They should also give fair incentives to recognize good performance.
8) PRINCIPLE OF EFFECTIVE UTILISATION OF HUMAN RESOURCES:
The skill and abilities of human resources should effectively utilize. Proper training
facilities should provide to workers.
9) PRINCIPLE OF PARTICIPATION:
This principle emphasis the idea of labor participation in the management of the
enterprise.
10) PRINCIPLE OF CONTRIBUTION TO NATIONAL PROSPERITY:
This principle stresses to provide a higher purpose of work to all the employees and
to contribute to national prosperity.
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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:
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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, even 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 labor –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
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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.
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.
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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.
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.
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.
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JOB EVALUATION:
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.
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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.
ROWAN SYSTEM:
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Under this system, a standard time is allowed for job and a bonus is paid for time
saved. The bonus is percentage of the workers part at a hourly basis. The percentage being equal
to the proportion the proportion the time saved bears to standards is attained.
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One of the principle considerations is the firm’s ability to pay. The firms should
be able to pay the same even at the tough situation (loss).
COST OF LIVING:
The cost of living is another important factor that influences the quantum of
salary the employees expect that their purchasing power be maintained at least at the
same level. If not increased by adjusting wages to changes in cost of living.
PRODUCTIVITY:
An interesting development in wage determination has been productively standard
this is based on the fact that productivity increase is also result of employees.
2) WAGE THEORIES :
JUST WAGE THEORY:
This was the first theory on wages advocated during medieval period. The essence
of this theory is that the worker should be paid on the level of maintain himself and his
family.
SUBSISTENCE THEORY:
According to Ricardo “the laborers are paid to enable them to subsist and
perpetuate the race without increase or diminution.
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Karl Marx pointed out that “wage of labor is determined by a traditional standard
of living, which, in turn, is determined by the mode of production of the country
concerned.
According to J.S.Mill, the wages are determined on the basis of the relationship
between the amount of fund allocated for the purpose of wage payment and number of
workers in the country.
According to walker, the wages are determined on the basis of amount left after the
payment of profits and interest to land, entrepreneur and capital respectively out of the
production level.
According to J.B. Clark, the wages are determined on the basis of marginal
contributions of the workers to production. The employer stops employing further workers where
the contributions of most recently employed worker are equal to his wages.
According to this theory the wages and other terms of employment are determined on
the basis of the relative bargaining strength of the two parties, viz., the employer and the
employees. Webs stated that, “the haggling of the market which under a system of the
completion and individual bargaining determines the conditions of employment.
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WORKMAN AND SUPERVISORS:
No claim for CDOs will be entertained or granted after expiry of three months from date on
which he worked in line of which CDOs be claimed.
1) ANNUAL INCREMENTS:
Annual increments of all the employees will be effected twice in a year as a matter
convince as an annual increment will be awarded in January or in July.
2) SPECIAL INCREMENTS:
Increments are awarded for employees for extra ordinary performance on job per
direction on management.
FITMENT:
If a workman’s basic pay short by Rs.3/- and fit in to particular slab in a particular scale,
such shortage will be covered by adding of amount to such shortage this benefit is extended only
during the subsistence of union agreement 1989/93. Additional increment for completion of
every 5 years of service.
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BONUS:
The following are the bonus given to the employees and workers as well.
1. ANNUAL BONUS:
Annual bonus to all the employees is paid on accordance with the provision of payment
of bonus act 1965 and its amendments from time to time. The financial year of the company is
from 1st April to 31st March.
2. ATTENDANCE BONUS:
Attendance bonus is payable on the basic of attendance on quarterly basis to workmen
only. Quarterly means Jan-March, April-June, July-September, October-December of each
calendar year.
The payment details of attendance bonus are as follows:
1. Rs.330/- per quarter to workman who has put in full attendance in the quarter without
taking any casual leave of sickness leave.
2. Rs.240/- per quarter to a workmen who has availed maximum one day casual leave on
one day sickness leave and has full of attendance.
3. Rs.190/- per quarter to workmen who has availed maximum, two day casual leave or
sickness leave and has balance full attendance.
Attendance includes attendance leave, earned leave, weekly days off, paid holidays, and special
leaves.
With effect of 01-06-2008 management has decided on union’s request that special leave and
leave for company planning operation are to be considered attendance.
36
Special leave for six days will also sanction to such of those employees who undergo
family planning operation. The special leave will also be granted to the employees even of
his/her spouse family planning operation.
COMMUNICATION:
In FACOR, they do not have any communication policy but the media of communication
are by phone, pens, notice board, circulars, notes etc.
37
is being done by a separate pollution control wing that the pollution levels are far below and safe
limits prescribed by the pollution control boards.
A beautiful green belt has been developed in an around the industry addition to the
plants developed within the factors systematic plantation is done to preserve and to beautiful the
environment. By a separate horticulture wing. The developed plantation covered with an area of
about 100 acres. And also the facilities for beneficiation and agglomeration of chrome ores
have been set up. Pilots for sintering of Manganese chrome ore fines and mechanize frequenting
plant were set up.
BRIEF DESCRIPTION OF PROVIDENCE OF FACOR:
The employee provident Fund and miscellaneous provisions Act 1952, is a social Security
Act. It was mainly passed with a view to make some provisions for the future of the individual
workers after his retirement or for his dependents is case of early death. It is also framed to
inculcate the habit of saving among the workers for the further contingencies.
The main object of this act provide substantial security and timely monetary benefit and
assistance to individual employee and their families when there are problems in need some
assistance to meet their family and school obligations, and also to protect them, when they
become older, disabled or and in case of early death of the employee and also in meeting some
other contingencies.
VARIOUS SCHEMES OF THE ACT:
The employee provident fund & miscellaneous provisions Act 1952 has mainly 3 schemes
to provide a broad and real recruit to the employee and their families. They are as follows:
The Employees Provident Fund Scheme. 1952
The Employees’ Pension Scheme. 1995
The Employees Deposit Linked Insurance Scheme. 1973
REMITTANCE RATES:
The employee has to remit by 15th of every month of the contributions and other
charges at the following rates.
THE WAGE LIMIT (MAXIMUM) FOR ALL THE THREE SCHEMES IS 6,500:
38
SCHEME CONTRIBUTION
OF EMPLOYER
EMPLOYEE
Scheme
Scheme
(Subject to Min of 2)
The employer and the Employee have to furnish various firms to Provident Fund Office
for different purposed some of them are follows:
39
COVERED NOT COVERED
1. Payment made for over time working 1.Cycle allowance (paid for using)
2. HRA 2.Coneyance allowance
3. Night shift/shift allowance 3.Lunch allowance per day of.
Attendance
4. Incentive payment made 4.Allowance paid to datary incidental
NOTE: The incentive payment made at interval exceeding 2 months also constitute as wage.
ANALYSIS AND INTERPRETATION OF THE STUDY
(a)YES (b) NO
TABLE NO: 1
1 YES 75 75
2 NO 25 25
TOTAL 100 100
GRAPH: 1
40
100
90
80
70
60
NO.of respondents
50
percentage
40
30
20
10
0
YES NO TOTAL
ANALYSIS
In table no.1, it shows that75percentage of the respondes are happy with their
job.25 percentage of respondents are not happy with their job . The maximum number of
the respondents are of an opinion that they are satisfied with their job. Minimum number
of respondents are of the opinion that they are not satisfied with their job.
TABLE NO: 2
2 35 35
Management
3 Welfare 10 10
benefits
4 Working 15 15
condition
TOTAL 100 100
41
GRAPH: 2
100
90
80
70
60
50
40
NO. OF RESPONDENTS
30
20 PERCENTAGE (%)
10
0
ANALYSIS :
In table no 2 , it show sthat 40 percentage of the employees say that their salary is
important for job satisfaction, 35 percentage of employees say that their management is
important for job satisfaction,10 percentage employees say that their welfare benefits is
important for job satisfaction ,15 percentage employees say that their working
conditions is important for job satisfaction. The maximum number of the respondents
are of the opinion that they are satisfied with their salary.
42
3. The salary gives good feeling & personal accomplishment
TABLE NO : 3
GRAPH: 3
100
90
80
70
60
NO. OF RESPONDENTS
50
PERCENTAGE (%)
40
30
20
10
0
Strongly Agree AgreePartly AgreeDisagree TOTAL
43
ANALYSIS :
In table no.3, 66percentage of the respondents strongly agree that they are satisfied
with their salary, 14 percentage of them agreed, 15 percentage of them partly agreed and 5% of
them totally disagree that their salary is not good. After survey it has been found that all the
employees who are working in the FACOR are satisfied with their salaries and it gives good
TABLE NO: 4
GRAPH: 4
44
100
90
80
70
60
NO. OF RESPONDENTS
50
PERCENTAGE (%)
40
30
20
10
0
Strongly Agree AgreePartly AgreeDisagreeTOTAL
ANALYSIS :
Majority of the respondents i.e., 53 percentage of them strongly agree that salary are
given on the basis of performance of the employees, 20 percentage of the respondents agree, 17
percentage of them partly agree and 10 percentage of them disagreed. The maximum number of
respondents are of the opinion that salary should be given on the basis of performance and only
45
5. Compensation commensurate with responsibility to all levels of employee
TABLE NO. 5
GRAPH: 5
100
90
80
70
60
NO. OF RESPONDENTS
50
PERCENTAGE (%)
40
30
20
10
0
Strongly Agree AgreePartly AgreeDisagreeTOTAL
46
ANALYSIS :
Most of the respondents agreed that the compensation commensurate with responsibility
to all levels of employee i.e., 67percentage. But some of them strongly agree at 20 percentage,
partly agree at 6 percentage and disagreed at 7 percentage. The maximum number of respondents
are of the opinion that compensation commensurate should be done at all levels of employee. But
(a)Yes (b) No
TABLE NO: 6
GRAPH: 6
47
100
90
80
70
60
NO.OF RESPONDENTS
50
PERCENTAGE (%)
40
30
20
10
0
Yes No TOTAL
ANALYSIS :
In table no.6, 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.
TABLE NO: 7
GRAPH: 7
48
100
90
80
70
60
NO. OF RESPONDENTS
50
PERCENTAGE (%)
40
30
20
10
0
Strongly Agree AgreePartly AgreeDisagreeTOTAL
ANALYSIS :
In table no.7, it has found that 76 percentage of the respondents strongly agree,
10 percentage of them agree, 10 percentage of them partly agree and 4 percentage of them
disagreed that the wages, salaries and increments are followed every year in the company. After
the survey it has found that maximum number of respondents agreed that wages, salaries and
increments are followed every year. Minimum number of them disagreed with it.
8. The Wages and Salary system for all employees in Facor is Satisfactory
TABLE NO : 8
49
GRAPH: 8
100
90
80
70
60
NO. OF RESPONDENTS
50
PERCENTAGE (%)
40
30
20
10
0
Strongly Agree AgreePartly AgreeDisagreeTOTAL
ANALYSIS :
In table no. 9, 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
TABLE: 9
50
SL.NO OPTIONS NO. OF PERCENTAGE
RESPONDENTS (%)
1 Strongly Agree 35 35
2 Agree 44 44
3 Partly Agree 12 12
4 Disagree 9 9
TOTAL 100 100
GRAPH: 9
100
90
80
70
60
NO. OF RESPONDENTS
50
PERCENTAGE (%)
40
30
20
10
0
Strongly Agree AgreePartly AgreeDisagreeTOTAL
ANALYSIS :
In table no.9, after the survey it has found that 35 percentage of the
respondents strongly agree, 44 percentage them agree, 12 percentage them partly agree
and 9 percentage them disagreed that wages & salary structure
10. Bonus & Incentives are they relative to the employees contribution
51
TABLE NO:1
GRAPH: 10
100
90
80
70
60
NO. OF RESPONDENTS
50
PERCENTAGE (%)
40
30
20
10
0
Strongly Agree AgreePartly AgreeDisagreeTOTAL
ANALYSIS:
CONCLUSION
52
In this thesis, I have explored the area of HRM in project-based organizations and I
have been able to develop some initial constructs. I have not been able to follow
all the interesting trails that have revealed themselves during the research process.
On the one hand, that implies that probably there are some important discussions
missing. On the other hand it leaves many openings for future research. In the
following paragraphs, I will point to some interesting avenues. Firstly, there is a
continuous need for studies that not only focus the project dimension of PBOs, but
that increases the understanding of the various critical aspects of cross project
coordination. I argue that the cross project-coordination of HRM is particularly
critical, especially for the relation to the increasingly independent individuals who
are searching for ways to build a ‘project career’. The increased role of the
individuals as active participants in the HR organization of PBOs is a theme that
has colored many of the discussions in this thesis and that deserves to be further
developed. To what extent can the individual take on the responsibility for her own
competence and employability and what support does she need? What are the
opportunities and obstacles for this development? Secondly, this thesis has given
some implications for the management structures in PBOs, especially concerning
the changed line management role. More studies are needed to further develop the
understanding of this new role and the interplay between the different
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