21ruba038 Final Report

PROJECT REPORT ON
THE IMPACT OF COMPENSATION & INCENTIVE SYSTEM ON THE

PERFORMANCE OF THE EMPLOYEES WORKING IN
R.R. INDUSTRIES
BY
K. KARTHICK
21RUBA038
Under the guidance of

Dr. P. ANBUOLI
Assistant Professor
DEPARTMENT OF BUSINESS ADMINISTRATION
MANNAR THIRUMALAI NAICKER COLLEGE (Autonomous)

PASUMALAI, MADURAI –625004.
APRIL-2024
Mannar Thirumalai Naicker College (AUTONOMOUS), Madurai-4
Department of Business Administration
DECLARATION
I,Karthick.K, hereby declare that the project report titled “THE IMPACT OF
COMPENSATION & INCENTIVE SYSTEM ON THE PERFORMANCE OF THE
EMPLOYEES WORKING IN R.R. INDUSTRIES” submitted for the award of the degree
of bachelor of business administration is my original work done under the guidance and
supervision of Dr.P.Anbuoli, Assistant professor of business administration Mannar
Thirumalai Naicker College, Madurai.
Place:
Date:
K.KARTHICK
(21RUBA038)
Dr.M.Sakthivel Dr.P.Anbuoli
Associate professor and Head Assistant Professor
Department of Business Administration Department of Business Administration
Mannar Thirumalai Naicker College Mannar Thirumalai Naicker College
Pasumalai, Madurai -625004 Pasumalai, Madurai - 625004
CERTIFICATE
ACKNOWLEDGEMENT
My sincere thanks to the management and the Principal (i/c) Dr. A. Ramasubbiah, Mannar
Thirumalai Naicker College (Autonomous) Pasumalai, Madurai, for their esteemed support.
I express my thanks to Dr.M.Sakthivel, Associate Professor& Head, Department of Business

Administration, Mannar Thirumalai Naicker College (Autonomous), Madurai - 625004 for
his constant encouragement and help rendered throughout my study.
I am very much grateful to faculty guide Dr. P. Anbuoli, Assistant Professor, Department of
Business Administration, Mannar Thirumalai Naicker College (Autonomous), Madurai-
625004 for the invaluable guidance given by her at every stage of this study.
I want to thank Mr. S. MOHAMED ISKAQ Owner of R.R. INDUSTRIES for permitting
me to do the project in his company
Finally, and more importantly I am deeply indebted to my parents, family Members and
friends for their constant encouragement and moral support throughout my study Endeavour.
There are many others who have helped me directly and indirectly to complete this project
report work. I thank them all whole heartedly.
K. KARTHICK
(21RUBA038)
TABLE OF CONTENTS
CONTENT PAGE NO
LIST OF TABLES I
LIST OF DIAGRAMS II
CHAPTER
I.INTRODUCTION OF RESEARCH STUDY 2-3
II.COMPANY PROFILE 5-19
III.RESEARCH METHODOLOGY 21-23
IV.REASEARCH DATA ANALYSIS AND INTERPRETATION 25-48
V.RESEARCH FINDINGS AND CONCLUSTIONS 50-51
VI.SUGGESTIONS 53
VII.BIBLIOGRAPHY 55
VIII.APPENDICES 57-61
LIST OF TABLES
Table. TITLE OF THE TABLE Page

No No
4.1 Table shows the classification of the respondents based on age

25
4.2 Table shows the classification based on gender

26
4.3 Table shows the classification based on marital status

27
4.4 Table shows the classification-based on education qualification

28
4.5 Table shows the classification based on the income

29
4.6 Table shows the classification based on departments

30
4.7 Table shows the classification based on salary method

31
4.8 Table shows the classification based on compensation systems

followed in R.R. industries 32
4.9 Table shows the classification based on overcome with the workers
if they got injury, disability or death 33
4.10 Table shows the classification based on how workers feel about
compensation system 34
4.11 Table shows the classification based on reward received because of

achievement 35
4.12 Table shows the classification based on wages given to employees
without any bias 36
4.13 Table shows the classification based on employees prefer to

celebrate team achievements 37
4.14 Table shows the classification based on management currently

recognize your performance 38
4.15 Table shows the classification based on team achievement

39
4.16 Table shows the classification based on incentives due you received
by company 40
4.17 Table shows the classification based on incentives plan is most

preferable to you 41
4.18 Table shows the classification based on workers opinion about

incentives plan offered by the company 42
4.19 Table shows the classification based on woman employee’s

maternity leave 43
4.20 Table shows the classification based on opinion about current

4.21 Table shows the classification based on company wages is enough

to support your family 45
4.22 Table shows the classification based on how satisfied with overtime
46
work compensation
4.23 Table shows the classification based on compensation system put

positively impact employee’s performance
47
4.24 Table shows the classification based on wages policy is

encouraging your work involvement 48
LISTS OF THE DIAGRAM
Table.
TITLE OF THE DIAGRAMS Page. No
No
4.1 Classification of respondents based on age 25
4.2 Classification of respondents based on gender 26
4.3 Classification of respondents based on marital status 27
4.4 Classification of respondents based on education qualification 28
Classification of respondents based on income 29

4.5
4.6 Classification of respondents based on departments

30
4.7 Classification of respondents based on salary method 31
4.8 Classification of respondents based on compensation systems 32

followed in R.R. industries
4.9 Classification of respondents based on overcome with the workers if 33
they got injury, disability or death
4.10 Classification of respondents based on how workers feel about 34

compensation system
Classification of respondents based on reward received because of 35

4.11
achievement
Classification of respondents based on wages given to employees

4.12
without any bias 36
Classification of respondents based on prefer to celebrate team

4.13
achievements 37
Classification of respondents based on management currently

4.14
recognize your performance 38
Classification of respondents based on team achievement
4.15
39
Classification of respondents based on incentives due you received

4.16
by company 40
4.17 Classification of respondents based on incentives plan is most 41

preferable to you
Classification of respondents based on workers opinion about

4.18
incentives plan offered by the company
42
Classification of respondents based on woman employee’s maternity

4.19
leave 43
4.20 Classification of respondents based on opinion about current

4.21 Classification of respondents based on company wages is enough to 45

support your family
Classification of respondents based on how satisfied with overtime 46

4.22
work compensation
Classification of respondents based on compensation system put

4.23
positively impact employee’s performance 47
Classification of respondents based on wages policy is encouraging

4.24
your work involvement 48
CHAPTER – I
INTRODUCTION OF RESERCH STUDY
1.1 INTRODUCTION OF THE STUDY
1.2 PROBLEM OF THE STUDY
1.3 NEED FOR THE STUDY
1.4 OBJECTIVE OF THE STUDY
1.5 SCOPE OF THE STUDY
1.6 LIMITATION OF THE STUDY
1
1.1 INTRODUCTION OF THE STUDY:
The objective of incentive compensation is to incentivise individual and/or collective

performance, and to recognise and reward this performance. Its aim is to motivate staff - i.e., to
encourage employees to target their actions and adapt their behaviours in order to produce the level of
qualitative and/or quantitative performance expected by the company. Companies may also make use
other kinds of compensation measures, which must be validated within the overall package. While these
additional components of global package may evolve over time, they are not considered as “incentive”.
In fact, incentive compensation must always carry some requirement in terms of performance - in
particular, individual performance. Fringe benefits, profit sharing, stock options and free shares may all
vary from one period to another for a company employee. However, these do not have the same
motivational impact on team members, as their function depends more on recognition of a contribution
to an overall result, or being part of a certain business category, than the incentive to achieve a result or
requirement set by the company. Incentive compensation is a form of variable compensation in which
a salesperson’s (or other employee’s) earnings are directly tied to the amount of product they sell, the
success of their team, or the organization’s success. Incentive compensation management is the strategic
use of incentives to drive better business outcomes and more closely align sales rep behaviour with the
organization’s goals. Incentives can be structured in multiple ways, including straight commissions,
bonuses, prizes, “spiffs,” awards, and recognition. A company’s incentive compensation plans must
align to corporate goals but maintaining this alignment can be difficult.
1.2 STATEMENT OF THE PROBLEM :

The compensation & benefits is very important in increasing the employee motivation to perform
well. This is because it can improve the life of the employees & secure their life in the future. The
employee will raise their performance so that they will get the bonus or promotion as the compensation
and benefit
1.3 NEED FOR THE STUDY:

 To analysis the work involvement on the basic of compensation and incentive system.
 To make study on the productivity after giving compensation or incentive to the workers.
 To study about the reduce the absenteeism.
2
1.4 OBJECTIVES:
 To study the demographic profile of the respondents.
 To identify the workers compensation system followed in R.R. INDUSTRIES.
 To find the effect of wages system upon the target achievement of workers.
 To analyse the type of incentive preferred/offered by the employees.
 To offer suitable suggestion on the basic of the findings in the study.
1.5 SCOPE OF THE STUDY:

 The development of any of the organization is mainly depending on the satisfaction level of
the employees so that they can perform well in the organization.
 I can understand how actually an organization works and can get more insight on the concept
of employee satisfaction.
 It provides me a great opportunity to relate theoretical concepts learn in my course to the actual
happenings in the organization.
1.6 LIMITATIONS OF THE STUDY:

 Respondents show reluctance towards giving correct information.
 Finding of the study are based on the assumption the respondents have disclosed in
the questionnaire.
 Some of the respondents were not co-operative.
 This project is carried among from the limited numbers of respondents.
3
CHAPTER – II
PROFILE OF THE COMPANY
2.1 COMPANY PROFILE
2.2 VISION AND MISSION OF THE COMPANY
2.3 COMPANY PRODUCTS
2.4 NATURE OF THE BUSINESS
2.5 ORGANIZATIONAL STRUCTURE
4
PROFILE OF THE COMPANY
2.1 COMPANY PROFILE:
Registered in 2018, R.R. INDUSTRIES has made a name for itself in the list of top
Manufacturing, Retail and Wholesale business of Ro System and Ro Interior parts in Tamil Nadu. The
company main branch located in Kappalur, Madurai and other branches in Chennai, Bangalore, Trichy,
Tirunelveli, Chengalpattu and overseas in China.
R.R. INDUSTRIES is listed in trade India’s list of verified sellers offering supreme
quality of Ro System and Interior parts etc. Buy Ro System and Interior parts in bulk from us for the
best quality products and services.
5
COMPANY NAME R.R. INDUSTRIES
OWNER NAME MOHAMED ISKAQ.S
NATURE OF THE BUSINESS MANUFACTURING, RETAIL BUSINESS

AND WHOLESALE BUSINESS.
YEAR OF ESTABLISHMENT 2018
PRODUCT RO SYSTEM AND RO INTERIOR PARTS
NUMBER OF EMPLOYEE 60 EMPLOYEES
TYPE PROPRIETORSHIP
WORKING HOURS 8 - 10 HOURS

STATUTORY PROFILE
BANKER ICICI
GST NO 33AXCPM9607Q1ZX
PAYMENT AND SHIPMENT DETAILS
PAYMENT MODE BANK TRANSFER, CHEQUE AND CASH
SHIPMENT MODE BY ROAD
2.2 COMPANY MISSION AND VISION
 Mission is to innovate and bring in the best product development & through process
product development.
 Vision is to provide the maximum number of satisfactions to our customers to
continuous improvement of efficiency and cost effectiveness.
6
2.3 COMPANY PRODUCTS
1. AQUA XL
TECHNICAL SPECIFICATION
POWER RATING 25 W
COLOURS BLUE, GREEN AND OTHERS
VOLTAGE 230V - 50Hz
TDS REMOVAL 90 - 93%
TANK CAPACITY 12 L
7
2. AQUA ROMA
POWER VOLTAGE AC 220-230V/50HZ
POWER CONSUMPTION 30 W (APPROXIMATELY)
COLOURS CHERRY, BLUE AND OTHERS
TANK CAPACITY 10 LTR.
SHIPPING DIMENSION 430 x 305 x 570 mm
WEIGHT 12 KG (APPROXIMATELY)
8
3. AQUA JIL
9
4. AQUA BIZ
MODEL AUA BIZ
COLOUR BLUE, BLACK AND GREEN
TANK CAPACITY 10 LTR
NET WEIGHT 12 KG
POWER CONSUMPTION 24 / 36 / 48 W
10
5. CLEAN WATER
11
6. I PEARL
COLOURS BLUE, GREEN, TRANSPERENT AND

COPPER
12
7. AQUA TOUCH
SPECIFICATION
POWER RATING 25 W
COLOURS BLUE, BLACK AND OTHERS
VOLTAGE 230V 50Hz
NET WEIGHT 12 KG
13
8. APPLE WATER PURIFIER ALFA
MODEL ALFA
COLOUR WHITE / TRANSPERENT
NET WEIGHT 12 KG
POWER CONSUMPTION 24 / 36 / 48 W
14
9. NOVA STAR
SPECIFICATION
MODEL UNDER SINK
COLOURS BLUE, BLACK AND OTHERS
VOLTAGE 230V 50Hz
POWER RATING 25 W
NET WEIGHT 12 KG
15
10. OTHER RO INTERIOR PARTS
RO SOLENOID VALVE
RO PUMP
16
RO MEMBRANE
RO IN LINE
17
RO ANTICIPANT BALLS
RO FLOAT
18
2.4 NATURE OF BUSINESS
We are widely recognized in this sector due to our premium quality range products in various models.
Due to the following unique reasons, we are able to carve a nice in this field:
 High quality range of products.

 Positive records.
 Transparent dealings.
 Prompt delivery.
 Well-equipped warehouse.
 Affordable price structure.
2.5 ORGANIZATION STRUCTURE
CEO
HR MANAGER
ADMIN FACTORY SALES ASSEMBLE
QUALITY
SYSTEM ACCOUNTS PRODUCTION MARKETING TRANSPORT PACKING
CHECK
BANKING DELIVERY DISPATCH
19
CHAPTER – III
RESEARCH METHODOLOGY
20
3.1 RESEARCH METHODOLOGY
3.1.1 MEANING OF RESEARCH

Research is common parlance refer to a “search of knowledge”. It is an art of scientific
investigation. It consists of enunciation the problem, formulation a hypothesis collecting fact (or)
data, analyzing the facts reaching certain conclusion.
3.1.2 RESEARCH METHODOLOGY:

It is a way to systematically solve the research problem. It may be understood as a science
of studying how research is done scientifically.
3.1.3 RESEARCH DESIGN:

“A research design is the arrangement of conditions for collection and analysis of data in a
manner that aims to combine relevance to the research purpose with economy in procedure”.
3.1.4 DESCRIPTIVE RESEARCH:

The study is descriptive in nature.
It includes survey and fact findings enquiries of different kinds.
3.2 SAMPLING DESIGN:

Sample design lays down all the detail to be included in sample. It is definite plan or
obtaining sample from a given population. The sampling technique used was the convenience
sampling.
Sample design of the study consists two steps
o Selection of study area
o Selection of the sample size.
3.2.1 SAMPLING METHODS:
The study applies convenience sampling.
It means when population elements are selected for inclusion in the sample based on the case
of access.
21
3.2.2 SAMPLING AREA:
Sampling is being taken by R.R. INDUSTRIES in Madurai city.
3.2.3 SAMPLING SIZE:
The sample size for the projects is 52 respondents.
PERIOD OF STUDY:
The period of this study is 1 month.
3.3 METHODS OF DATA COLLECTION:

They are two methods for data collection
i. Primary data
ii. Secondary data
PRIMARY DATA:
It means data which is collected from the respondents.
The research collected the information through “questionnaire”.
SECONDARY DATA:
Data which are collected from books, journals, magazines and websites are called secondary
data.
In this study the required data were collected from the company’s websites and external
sources.
3.4 TOOLS USED FOR ANALYSIS:
The following tools are used for analysis
Percentage analysis Tabulation

The collected data is arranged in the form of rows and columns that is in the tabulation form.
The purpose is to simplify the presentation and to make comparison.
22
3.5 CHAPTER SCHEME:
Chapter I
Deals with introduction and design of the study. It consists of statement of problem, objectives
of the study, scope of the study and limitations.
Chapter II
The second chapter is devoted to trace the profile of the R.R. INDUSTRIES
Chapter III
The third chapter includes research design, sampling design, sampling method, data collection
methods and tools used for analysis.
Chapter IV
Data analysis and interpretation.
Chapter V
Findings and Conclusion.
Chapter VI
Suggestions.
Chapter VII
Bibliography
Chapter VIII
Appendices
23
CHAPTER-IV
REASEARCH DATA ANALYSIS AND INTERPRETATION
24
ANALYSIS AND INTERPRETATION
TABLE 4.1 - SHOWING THE CLASSIFICATION BASED ON AGE
S.NO AGE NO OF RESPONDENTS PERCENTAGE

1 20-25 12 23%
2 25-30 15 29%
3 30-35 17 33%
4 35-Above 8 15%
Total 52 100%
SOURCE: PRIMARY DATA

Table 4.1 shows that 33% of respondents belongs to age group of 30 -35 and 15% of
respondents belongs to age group of above 35 age.
It is inferred that majority of the respondents belongs to the 30-35 age level.
It is illustrated by the following diagram:
DIAGRAM 4.1
CLASSIFICATION BASED ON AGE
18 17
16 15
14
12
12
10
8
8
2
23% 29% 33% 15%
0
20-25 25-30 30-35 35-Above
NO. OF RESPONDENTS PERCENTAGE
25
TABLE 4.2 - SHOWING THE CLASSIFICATION BASED ON GENDER
S.NO GENDER NO OF RESPONDENTS PERCENTAGE
1 Male 22 42%
2 Female 30 58%
Total 52 100%
Table 4.2 shows that 42% of respondents are male and 58% of respondents are female.
It is inferred that majority of the respondent belongs to female.
DIAGRAM 4.2
CLASSIFICATION BASED ON GENDER
35
30
30
25
22
20
15
10
42% 58%
0
NO.OF RESPONDENTS PERCENTAGE
Male Female
26
TABLE 4.3 - SHOWING THE CLASSIFICATION BASED ON MARITAL STATUS
MARITAL
S.NO NO OF RESPONDENTS PERCENTAGE
STATUS
1 Married 35 67%
2 Unmarried 17 33%
Total 52 100%

Table 4.3 shows that 67% of respondents are married and 33% of respondents are
Unmarried.
It is inferred that majority of the respondents are married.
DIAGRAM 4.3
CLASSIFICATION BASED ON MARTIAL STATUS
MARITAL STATUS
40
35
35
30
25
20
17
15
10
5
67% 33%
0
MARITAL STATUS
Married Unmarried
27
4.4 - TABLE SHOWING THE CLASSIFICATION BASED ON EDUCATIONAL
QUALIFICATION
EDUCATIONAL
S.NO NO OF RESPONDENTS PERCENTAGE
QUALIFICATION
1 1-6th std 4 8%
2 7-12th std 28 54%
3 UG/PG 12 23%
4 Others 8 15%
Total 52 100%

Table 4.4 shows that 54% of respondents have completed 7-12Th std and 8% of
respondents are have completed 1-6th std.
It is inferred that the majority of the respondents have completed 7-12Th.
DIAGRAM 4.4
CLASSIFICATION BASED ON EDUCATIONAL QUALIFICATION
1-6th std
Others 8%
15%
1-6th std
7-12th std
UG/PG UG/PG
23%
Others
7-12th std
54%
28
4.5 - TABLE SHOWING THE CLASSIFICATION BASED ON THE INCOME
S. NO INCOME STATUS NO OF RESPONDENTS PERCENTAGE
1 Below 10,000 4 8%
2 Rs 10,000-15,000 24 46%
3 Rs 15,000-20,000 16 31%
4 Above 20,000 8 15%
Total 52 100%

Table 4.5 shows that 46% of the respondent’s income level is Rs 10,000-15,000 and
8% of the respondents have below Rs 10,000 as income.
It is inferred that the majority of the respondents belongs to Rs 10,000-15,000 as
income.
DIAGRAM 4.5
CLASSIFICATION BASED ON THE INCOME
30
25 24
20
16
15
10 8
5 4
8% 46% 31% 15%

0
Below 10,000 Rs 10,000-15,000 Rs 15,000-20,000 Above 20,000
NO OF RESPONDENTS PERCENTAGE
29
4.6 - TABLE SHOWING THE CLASSIFICATION BASED ON DEPARTMENTS
S. NO DEPARTMENTS NO OF RESPONDENTS PERCENTAGE
1 Production 15 29%
2 Dispatch 12 23%
3 Accounts &Finance 8 15%
4 Admins and Others 17 33%
Total 52 100%

Table 4.6 shows that 33% of the respondents belongs to Admins and Others and 29% of
the respondents belongs to production department.
It is inferred that the majority of the respondents belongs to Admins and Others.
DIAGRAM 4.6
CLASSIFICATION BASED ON THE DEPARTMENTS
33%
Admins and Others
17
15%
Accounts &Finance
8
23%
Dispatch
12
29%
Production
15
0 2 4 6 8 10 12 14 16 18
PERCENTAGE NO OF RESPONDENTS
30
4.7 - TABLE SHOWING THAT CLASSIFICATION BASED ON SALARY METHOD
S. NO SALARY METHOD NO OF RESPONDENTS PERCENTAGE
1 Daily 12 23%
2 Weekly 0 0%
3 Monthly 40 77%
4 Others 0 0%
Total 52 100%
Table 4.7 shows that 77% of the respondents are monthly and 23% of the respondents are
said daily.
It is inferred that the majority of the respondents belongs to monthly about salary method.
DIAGRAM 4.7
CLASSIFICATION BASED ON SALARY METHOD
45
40
40
35
30
25
20
15 12
10
5
23% 0 0% 77% 0 0%
0
Daily Weekly Monthly Others
31
4.8 - TABLE SHOWING THE CLASSIFICATION BASED ON COMPENSATION SYSTEM
FOLLOWED IN R.R. INDUSTRIES
S .NO COMPENSATION NO OF RESPONDENTS PERCENTAGE
1 Over time 14 27%

2 Weekly 7 days 0 0%
3 Work from home 4 8%
4 Salary deduction 34 65%
Total 52 100%
Table 4.8 shows that 65% of the respondents experience salary deduction and 8% of the
respondents have mentioned work from home.
It is inferred that the majority of the respondents undergo salary deduction
DIAGRAM 4.8
CLASSIFICATION BASED ON COMPENSATION SYSTEM FOLLOWED IN R.R.

INDUSTRIES
40
35 34
30
25
20
15 14
10
5 4
27% 0 0% 8% 65%
0
Over time Weekly 7 days Work from home Salary deduction
32
4.9 - TABLE SHOWING THE CLASSIFICATION BASED ON R.R INDUSTRIES
OVERCOME WITH THE WORKERS IF THEY GOT INJURY, DISABILITY OR DEATH
HOW OVERCOME WITH
S. NO NO OF RESPONDENTS PERCENTAGE
THE WORKERS
1 Immediate attendance/access 17 33%
2 Monitary benefits 0 0%
3 Insurance 28 54%
4 Treatment cost 7 13%
Total 52 100%
Table 4.9 shows that 54% of the respondents prioritize Insurance and 33% of the
respondents prioritize Immediate attendance/ access.
It is inferred that the majority of the respondents are Insurance.
DIAGRAM 4.9
CLASSIFICATION BASED ON R.R INDUSTRIES OVERCOME WITH THE WORKERS

IF THEY GOT INJURY, DISABILITY OR DEATH
Treatment cost
13% Immediate
attendance/acces
s
33%
Immediate attendance/access
Monitary benefits
Insurance
Treatment cost
Monitary benefits
0%
Insurance
54%
33
4.10 - TABLE SHOWING THE CLASSIFICATION BASED WORKERS OPINION ABOUT
COMPENSATION SYSTEM
S .NO PARTICULARS NO OF RESPONDENTS PERCENTAGE
1 Very good 8 15%

2 Good 28 54%
3 Average 12 23%
4 Poor 4 8%
Total 52 100%
Table 4.10 shows that 15% of the respondents rate as very good and 54% of the
respondents rate as Good.
It is inferred that the majority of the respondents belongs to good about compensation
system.
DIAGRAM 4.10
CLASSIFICATION BASED ON WORKERS OPINION ABOUT COMPENSATION

SYSTEM
30 28
25
20
15
12
10 8
5 4
15% 54% 23% 8%

0
Very good Good Average Poor
34
4.11 - TABLE SHOWING THE CLASSIFICATION BASED ON REWARD RECEIVED
BECAUSE OF ACHIEVEMENT
S.NO REWARD RECEIVED No of Respondents Percentage
1 Cash reward 36 69%

2 Promotion 2 4%
3 Salary increment 9 17%
4 Others 5 10%
Total 52 100%
Table 4.11 shows that 69% of the respondents belongs to Cash reward and 4% of
respondents belongs to promotion.
It is inferred that the majority of the respondents are cash reward.
DIAGRAM 4.11
CLASSIFICATION BASED ON REWARD RECEIVED BECAUSE OF ACHEIVEMENT
10%
17%
Cash reward
Promotion
Salary increment
4% Others
69%
35
4.12 - TABLE SHOWING THE CLASSIFICATION BASED ON GIVING UNBIASED
WAGES GIVEN TO THE EMPLOYEES
S. No PARTICULAR No of Respondents Percentage
1 Strongly agree 16 31%

2 Agree 25 48%
3 Neutral 11 21%
4 Disagree 0 0%
Total 52 100%
Table 4.12 shows that 48% of the respondents are agree and 21% of respondent are
neutral.
It is inferred that the majority of the respondent belongs to agree.
DIAGRAM 4.12
CLASSIFICATION BASED ON GIVING UNBIASED WAGES GIVEN TO THE

EMPLOYEES
60%
50% 48%
40%
31%
30%
21%
20%
10%
0%
0%
Strongly agree Agree Neutral Disagree
36
4.13 - TABLE SHOWING THE CLASSIFICATION BASED ON EMPLOYEES PREFER TO
CELEBRATE OR ACKNOWLEDGE TEAM ACHIEVEMENTS
1 Team recognition events 5 10%

2 Special team lunch 13 25%
3 Providing flexible work hours 9 17%
4 Tour 25 48%
Total 52 100%

Table 4.13 shows that 17% of the respondents prefer providing flexible work hours
and 48 % of the respondents prefer tour.
It is inferred that the majority of the respondents belongs to tour.
DIAGRAM 4.13
CLASSIFICATION BASED ON EMPLOYEES PREFER TO CELEBRATE OR
ACKNOWLEDGE TEAM ACHIEVEMENTS
48%
Tour
25
17%
Providing flexible work hours
9
25%
Special team lunch
13
10%
Team recognition events
5
0 5 10 15 20 25 30
PERCENTAGE NO OF RESPONDENTS
37
4.14 - TABLE SHOWING THE CLASSIFICATION BASED ON BASIS MANAGEMENT
CURRENTLY RECONGNISE & ACKNOWLEDGE YOUR PERFORMANCE
1 Result oriented 17 33%

2 Team good player 8 15%
3 Good communication 12 23%
4 Task completed 15 29%

Total 52 100%

Table 4.14 shows that 15% of the respondents focused on team good player and 33% of
the respondents are Result oriented.
It is inferred that the majority of the respondents belongs to Result oriented.
DIAGRAM 4.14
CLASSIFICATION BASED ON THE BASIS MANAGEMENT CURRENTLY

RECONGNISE & ACKNOWLEDGE YOUR PERFORMANCE
18
16 17
14 15
12
12
10
8
8
6
2
33% 15% 23% 29%
0
Result oriented Team good player Good communication Task completed
38
4.15 - TABLE SHOWING THE CLASSIFICATION BASED ON TEAM REWARDS
S. NO TEAM REWARDS NO OF RESPONDENTS PERCENTAGE
1 Always 0 0%
2 Often 4 8%
3 Sometimes 14 27%
4 Never 34 65%
Total 52 100%
Table 4.15 shows that 8% of the respondents are often and 65% of the respondents state
never.
It is inferred that the majority of respondents fall in to never.
DIAGRAM 4.15
CLASSIFICATION BASED ON TEAM REWARDS
40
34
35
30
25
20
14
15
10
4
5
0 0% 8% 27% 65%
0
Always Often Sometimes Never
39
4.16 - TABLE SHOWING THE CLASSIFICATION OF INCENTIVES DO YOU RECEIVED
BY THE R.R. INDUSTRIES
1 Bonus 36 69%
2 Fun gifts 9 17%
3 Rewards and recognition 5 10%
4 Others 2 4%
Total 52 100%
Table 4.16 shows that 69% of the respondents are bonus and 4% of the respondents state
others.
It is inferred that the majority of the respondents are bonus.
DIAGRAM 4.16
CLASSIFICATION BASED ON OF INCENTIVES OF INCENTIVES DO YOU RECEIVED

BY THE R.R. INDUSTRIES
Rewards and Others

recognition 4%
10%
Fun gifts Bonus

17% Fun gifts
Rewards and recognition
Others
Bonus
69%
40
4.17 - TABLE SHOWING THE CLASSIFICATION BASED ON INCENTIVE PLAN IS
MOST PREFERABLE TO YOU
S.NO INCENTIVE PLAN NO. OF RESPONDENTS PERCENTAGE
1 Monetary plan 44 85%
2 Non-Monetary plan 8 15%
Total 52 100%

Table 4.17 shows that 85% of respondents prefer a monetary plan and 15% of respondents
prefer a non-monetary plan.
It is inferred that majority of the respondent belongs to monetary plan.
DIAGRAM 4.17
CLASSIFICATION BASED ON INCENTIVE PLAN IS MOST PREFERABLE TO YOU
50
44
45
40
35
30
25
20
15
10 8
5
85% 15%
0
Monetary plan Non Monetary plan
41
4.18 - TABLE SHOWING THE CLASSIFICATION BASED ON WORKERS OPINION
ABOUT INCENTIVES PLAN OFFERED BY THE COMPANY
1 Very good 7 13%

2 Good 28 54%
3 Average 17 33%
4 Poor 0 0%
Total 52 100%

Table 4.18 shows that 13% of the respondents their experience as very good and 54% of
the respondents rated as good.
It is inferred that the majority of the respondents belongs to good.
DIAGRAM 4.18
CLASSIFICATION BASED ON WORKERS OPINION ABOUT INCENTIVES PLAN

OFFERED BY THE COMPANY
Poor
0% Very good
13%
Average
33%
Very good
Good
Average
Poor
Good
54%
42
4.19 - TABLE SHOWING THE CLASSIFICATION BASED ON WOMEN EMPLOYEE
MATERNITY LEAVE
1 Always 5 10%
2 Often 9 17%
3 Sometimes 36 69%
4 Never 2 4%
Total 52 100%
SOURCE: PRIMARY DATA.
Table 4.19 shows that 69% of the respondents choose sometimes and 4% of the
respondents selected never.
It is inferred that the majority of the respondents belongs to sometimes.
It is illustrated by the following diagram
DIAGRAM 4.19
CLASSIFICATION OF RESPONDENTS BASED ON WOMEN EMPLOYEE MATERNITY

LEAVE
40
36
35
30
25
20
15
9
10
5
5
2
10% 17% 69% 4%
0
Always Often Sometimes Never
43
4.20 - TABLE SHOWING THE CLASSIFICATION BASED ON OPINION ABOUT
CURRENT COMPENSATION SYSTEM
1 Very satisfied 14 27%

2 Satisfied 34 65%
3 Neutral 4 8%
4 Unsatisfied 0 0%
Total 52 100%
Table 4.20 shows that 8% of the respondents are neutral and 65% of the respondents are
satisfied.
It is inferred that the majority of the respondents fall in to satisfied category about the
current compensation system.
DIAGRAM 4.20
CLASSIFICATION BASED ON OPINION ABOUT CURRENT COMPENSATION

SYSTEM
8% 0%
27%
Very satisfied
Satisfied
Neutral
Unsatisfied
65%
44
4.21 - TABLE SHOWING THE CLASSIFICATION BASED ON COMPANY WAGES IS
ENOUGH TO SUPPORT YOUR FAMILY
MINIMUM WAGES IS
SUPPORT TO FAMILY
2 Agree 16 31%
3 Neutral 14 21%
4 Disagree 0 0%
Total 52 100%
Table 4.21 shows that 21% of the respondents are neutral and 41% of the respondents are
strongly agree.
It is inferred that the majority of the respondents belongs to Strongly agree.
DIAGRAM 4.21
CLASSIFICATION BASED ON MINIMUM WAGES IS ENOUGH TO SUPPORT YOUR

FAMILY
25
22
20
16
15 14
10
41% 31% 21% 0 0%

0
Strongly agree Agree Neutral Disagree
45
4.22 - TABLE SHOWING THE CLASSIFICATION BASED ON HOW SATISIFED WITH
THE OVERTIME WORK COMPENSATION
S. NO PARTICULARS NO OF RESPONDENTS PERCENTAGE
1 Very satisfied 4 8%
2 Satisfied 17 33%
3 Neutral 25 48%
4 Unsatisfied 6 11%
Total 52 100%
Table 4.22 shows that 33% of the respondents are Satisfied and 48% of respondents are
neutral.
It is inferred that the majority of the respondents belongs to neutral.
DIAGRAM 4.22
CLASSIFICATION BASED ON HOW SATISFIED WITH THE OVERTIME WORK

COMPENSATION
Unsatisfied Very satisfied

11% 8%
Satisfied
33%
Neutral
48%
Very satisfied Satisfied Neutral Unsatisfied
46
4.23 - TABLE SHOWING THE CLASSIFICATION BASED ON COMPENSATION
SYSTEM COULD POSITIVELY IMPACT EMPLOYEE PERFORMANCE
S. NO PARTICULARS NO OF RESPONDENTS PERCENTAGE

2 Agree 17 33%
3 Neutral 28 54%
4 Disagree 0 0%
Total 52 100%

Table 4.23 shows that 13% of the respondents are strongly agree and 54% of the respondents
are neutral about the employee performance.
It is inferred that the majority of the respondents belongs to neutral.
DIAGRAM 4.23
CLASSIFICATION BASED ON COMPENSATION SYSTEM COULD POSITIVELY
IMPACT EMPLOYEE PERFORMANCE
0%
13%
Strongly agree
Agree
54% Neutral
33% Disagree
47
4.24 - TABLE SHOWING THE CLASSIFICATION BASED ON WAGES POLICY IS
ENCOURGING YOUR WORK INVOLVEMENT
WAGES POLICY IS
ENCOURGING YOUR WORK
INVOLVEMENT

2 Agree 28 54%
3 Neutral 12 23%
4 Disagree 4 8%
Total 52 100%
SOURCE: PRIMARY DATA.

Table 4.24 shows that 54% of the respondents are agree and 8% of respondents are disagree.
It is inferred that the majority of the respondents fall in to agree category.
DIAGRAM 4.24
CLASSIFICATON BASED ON WAGES POLICY IS ENCOURGING YOUR WORK
INVOLVEMENT
Disagree
8% Strongly agree
15%
Neutral
23%
Strongly agree
Agree
Neutral
Disagree
Agree
54%
48
CHAPTER - V
RESEARCH FINDINGS AND CONCLUSION
49
5.1 FINDINGS:
 The majority of the respondents are between 30 - 35 years.

 58% of the respondents are female.
 The majority of the respondents are 67% married.
 The majority of the respondents are 7 – 12th std.
 The majority of the respondents are under Rs 10,000 - 15000 monthly income level.
 The majority of the respondents are 33% on admin and others.
 The majority of the respondents are monthly about salary method.
 The majority of the respondents undergo salary deduction.
 54% of the respondents are said insurance.
 69% of the respondents are received cash rewards because of their achievement.
 54% of the respondents are good about workers compensation system.
 48% of the respondents are agree about the wages given to the employees without any bias.
 33% of the respondents are result oriented about management acknowledge your performance.
 48% of the respondents are preferable to celebrate team achievement by tour.
 65% of the respondents are never about team rewards received by them.
 69% of the respondents are received bonus by the company.
 85% of the respondents preferred monetary plan.
 The majority of the respondents are women employee maternity leave are sometimes 69%.
 54% of the respondents are good about incentives plan offered by the company.
 65% of the respondents are satisfied about current compensation systems.
 The majority of the respondents are wages is support to family in 41% strongly agree.
 The majority of the respondents are neutral with overtime work compensation in 48%.
 54% of the respondents are neutral about impact of employee performance.
 The majority of the respondents are wage policy is encouraging your work involvement in 54%
agree.
50
5.2 CONCLUSION:
Compensation is every type of reward that employees receive for performing organizational
tasks. Compensation can be categorized into: cash; as salaries and incentives, and non-cash; as
insurance and working conditions. There are main characteristics that should be addressed by the
successful compensation system; amongst them are adequacy, equity and incentive-providing.
Compensation system should be satisfactory for and meet the objectives of both the employer and
employee. The research objective was to investigate the compensation policies adopted at tour
operators in Egypt and to examine their effects on employees’ satisfaction. Research findings have
shown that over half of the employees are satisfied with their salaries. Moreover, they stated that
fairness and equity are almost not addressed at their firms’ pay systems. Regarding individual
incentives, about two thirds of the employees stated they are applied at their firms, and they indicated
that there is no contradiction between this type of incentives and the sense of teamwork, which
indicated that individual incentives at their firms are well designed and administered Concerning.
51
CHAPTER – VI
SUGGESTIONS
52
6.1 SUGGESTIONS:
 Company mostly gives only cash increment to the employees. Thus, the company gives other
benefits like rewards & promotions to the employees. It helps to motivate to the employees.
 I suggest to provide the extra machineries for cutting the spun. Its helps to reducing the time
and give extra output by the employees.

53
CHAPTER – VII
BIBLIOGRAPHY
54
BIBLIO GRAPHY:
Secondary Data
Webliography
 www.project99.com
 www.wikimedio.com
 https://tikshare.com/rr-industries-4967916
55
CHAPTER - VIII
APPENDICES
56
APPENDIX
THE IMPACT OF COMPENSATION & INCENTIVE SYSTEM ON THE PERFORMANCE

OF THE EMPLOYEES WORKING IN R.R. INDUSTRIES
I am Karthick.K, III-year B.B.A Student, Mannar Thirumalai Naicker College (Autonomous) Madurai.
I am doing a survey for the project titled “THE IMPACT OF COMPENSATION & INCENTIVE
SYSTEM ON THE PERFORMANCE OF THE EMPLOYEE WORKING IN
R.R.INDUSTRIES” Kindly cooperate to finish my project successfully. I assure that the information
collected through this survey will be kept confidentially. Thank you.
Questionnaire
1. Name____________________
2. Age
a) 20-25 years
b) 25-30 years
c)30-35 years
d) Above 35 years
3. Gender
(a) Male
(b) Female
4. Marital Status
(a) Married
(b) Unmarried
5. Qualification
a) 1-6th std
b) 7-12th std
c) UG/PG
d) 0thers
57
6. Income
a) Below 10,000
b) Rs 10,000-15,000
c) Rs 15,000-20,000
d) Above 20,000
7. Which department do you belong to?
a) Production
b) Dispatch
c) Accounts & Finance
d) Admin and Others
8.What is your salary method in R.R. INDUSTRIES?
a) Daily
b) Weekly
c) Monthly
d) Others
9. In which ways workers compensation system followed in R.R. INDUSTRIES compensate your absence
according to your designation?
a) Over time
b) weekly 7 days
c) work from home
d) salary deduction.
10. How RR Industries overcome with the workers if they got injury, disability or death?
a) Immediate attendance /Access
b) Monetary benefits
c) Insurance
d) Treatment cost
58
11, How do you feel that current workers compensation system followed in R.R. INDUSTRIES.
a) Very Good
b) good
c) Average
d) Poor
12. Which type of reward you received because of your target achievement?
a) Cash reward
b) Promotion
c) Salary increment
d) others
13. Do you agree that wages are given to employee for their target achievement without any bias?
a) Strongly agree
b) Agree
c) Neutral
d) Disagree
14.Which way do you prefer to celebrate or acknowledge team achievements when targets are met?
a) Team recognition events
b) special team lunch
c) providing flexible work hours
d) Tour.
15. On what basis management currently recognise & acknowledge your performance according to your
designation?
a) Result oriented
b) Team good player
c) good communication
d) task completed
59
16. Do you get team rewards?
a) Always
b) Often
c) Sometimes
d) Never
17. What type of incentives do you received by the R.R INDUSTRIES?
a) Bonus
b) Fun gifts
c) Rewards and recognition
d) others
18. Which type of incentive plan is most preferable to you?
a) Monetary plan
b) Non-monetary plan
19. How do you feel that incentive plans offered by R.R. Industries?
a) Very Good
b) good
c) Average
d) Poor
20. Do you agree that company provide salary to the women employees during maternity leave?
a) Always
b) Often
c) Sometimes
d) Never
60
21.How satisfied are you with the current compensation system in R.R. Industries?
a) Very Satisfied
b) Satisfied
c) Neutral
d) unsatisfied
22. Do you Agree the company wages is enough to support the family?
a) Strongly agree
b) Agree
c) Neutral
d) Disagree
23. Are you satisfied with your overtime work compensation?
a) Very Satisfied
b) Satisfied
c) Neutral
d) unsatisfied
24. Do you agree changes in the compensation system could positively impact employee performance?
a) Strongly agree
b) Agree
c) Neutral
d) Disagree
25. Do you agree that your company wage policy is encouraging your work involvement?
a) Strongly agree
b) Agree
c) Neutral
d) Disagree
61

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PROJECT REPORT ON

THE IMPACT OF COMPENSATION & INCENTIVE SYSTEM ON THE

Under the guidance of

DEPARTMENT OF BUSINESS ADMINISTRATION

MANNAR THIRUMALAI NAICKER COLLEGE (Autonomous)

I express my thanks to Dr.M.Sakthivel, Associate Professor& Head, Department of Business

I.INTRODUCTION OF RESEARCH STUDY 2-3

II.COMPANY PROFILE 5-19

III.RESEARCH METHODOLOGY 21-23

IV.REASEARCH DATA ANALYSIS AND INTERPRETATION 25-48

V.RESEARCH FINDINGS AND CONCLUSTIONS 50-51

Table. TITLE OF THE TABLE Page

4.1 Table shows the classification of the respondents based on age

4.2 Table shows the classification based on gender

4.3 Table shows the classification based on marital status

4.4 Table shows the classification-based on education qualification

4.5 Table shows the classification based on the income

4.6 Table shows the classification based on departments

4.7 Table shows the classification based on salary method

4.8 Table shows the classification based on compensation systems

4.11 Table shows the classification based on reward received because of

4.13 Table shows the classification based on employees prefer to

4.14 Table shows the classification based on management currently

4.15 Table shows the classification based on team achievement

4.17 Table shows the classification based on incentives plan is most

4.18 Table shows the classification based on workers opinion about

4.19 Table shows the classification based on woman employee’s

4.20 Table shows the classification based on opinion about current

4.21 Table shows the classification based on company wages is enough

4.23 Table shows the classification based on compensation system put

4.24 Table shows the classification based on wages policy is

4.1 Classification of respondents based on age 25

4.2 Classification of respondents based on gender 26

4.3 Classification of respondents based on marital status 27

4.4 Classification of respondents based on education qualification 28

Classification of respondents based on income 29

4.6 Classification of respondents based on departments

4.8 Classification of respondents based on compensation systems 32

4.10 Classification of respondents based on how workers feel about 34

Classification of respondents based on reward received because of 35

Classification of respondents based on wages given to employees

Classification of respondents based on prefer to celebrate team

Classification of respondents based on management currently

Classification of respondents based on incentives due you received

4.17 Classification of respondents based on incentives plan is most 41

Classification of respondents based on workers opinion about

Classification of respondents based on woman employee’s maternity

4.20 Classification of respondents based on opinion about current

4.21 Classification of respondents based on company wages is enough to 45

Classification of respondents based on how satisfied with overtime 46

Classification of respondents based on compensation system put

Classification of respondents based on wages policy is encouraging

INTRODUCTION OF RESERCH STUDY

1.1 INTRODUCTION OF THE STUDY

1.2 PROBLEM OF THE STUDY

1.3 NEED FOR THE STUDY

1.4 OBJECTIVE OF THE STUDY

1.5 SCOPE OF THE STUDY