A

PROJECT REPORT

ON

“A DETAIL STUDY ON WAGES AND SALARY”

WITH SPECIAL REFERENCE TO

“RELIANCE RETAIL LIMITED”

Dissertation Submitted to

OSMANIA UNIVERSITY, HYDERABAD.

In partial fulfilment for the award of the Degree of

BACHELOR OF BUSINESS ADMINISTRATION

SUBMITTED BY

HUSNA FAHEEM

[H.T.NO: 2096-21-684-065]

Under the guidance of

Dr. DEBOSHREE CHATTERJEE

SAANVI DEGREE COLLEGE FOR WOMEN

(AFFILIATED TO OSMANIA UNIVERSITY)

I.S Sadan Rd, Vinay Nagar Colony, Santosh Nagar,

HYDERABAD, TELANGANA.
 DECLARATION
I hereby declare that this project report titled “A DETAIL STUDY ON WAGES AND
SALRAY” with special reference to “RELIANCE RETAIL LIMITED” submitted by me to
the department of BUSINESS MANGEMENT which is affiliated to OSMANIA
UNIVERSITY, HYDERABAD, bonafide work undertaken by me and is not submitted to any
other university or institution for the award of any degree/diploma/certificate or published any
time before…

Date:
Place: Hyderabad

Signature

HUSNA FAHEEM

(2096-21-684-065)
 ACKNOWLEDGEMENT
The presentation of the report in the way required has been made possible by the way of
contribution of various people. The completion of the project titled “A DETAIL STUDY ON
WAGES AND SALARY” with special reference to “RELIANCE RETAIL LIMITED”
brings to express thanks to one and all of those who helped along the way.

I would like to express my gratitude to team manager HARSHA VARDHAN of RELIANCE

RETAIL LIMITED for giving his support and guidance throughout the project.

I would also like to express my gratitude to Dr. MOUNIKA REDDY (Ph.D., OU) director
of SAANVI DEGREE COLLEGE, for giving her support and guidance throughout this
project.

I express my deep sense of gratitude and sincere thanks to my project guide Dr. DEBOSHREE
CHATERJEE for her proficient guidance, invaluable advice and constant encouragement
during the course of this project work.

I am very thankful to the lecturers for their valuable suggestions and scholarly guidance.

I thank all my beloved Friends, Classmates who helped me to complete the work and lastly
those who had been involved directly or indirectly with the successful completion of the
dissertation work.

I express my heartfelt gratitude to all my family members for their constant encouragement
and support for completing my project smoothly.
 ABSTRACT
This research aims to investigate the need and importance of “Wage and Salary” for
employees in the organization. The Wage and Salary Administration is responsible for the
establishment and implementation of sound policies and procedures for workers compensation,
includes job evaluation, salary and salary research, analysis of organizational problems,
development and maintenance of salary structure, establishing rules for managing salaries,
salaries compensation, profit sharing, changes and salaries, additional payments, compensation
costs etc. data collected by questionnaire and interview method. Second data collected through
books, journals and online. All respondents received regular salaries and wages, wage
compensation and other benefits. Their relationship with management is strong. That salary
and wages administration is an essential part of any productive organization. The researcher
also found out that salary and wages improve the performances of the employees in an
organization. The major conclusion of this study is that importance of salary and wages
administration in an organization cannot be overemphasized. In view of the above, the
following recommendation is, that the salary administration policyto be implemented across
Board so that all the level offers especially the junior cadre have sense of belonging.
 CONTENTS

Chapter No. Particulars Page No.

Introduction
1.1 Introduction
1.2 Scope of the study
6 - 19
1 1.3 Need of the study
1.4 Objectives of the study
1.5 Research methodology
1.6 Limitations of the study

2 Review of Literature
20 - 66

Profiles
3 3.1 Industry profile 67 - 84
3.2 Company profile

4 Data analysis & Interpretation 85 - 105

5 Finding, Suggestions, Conclusion 106 - 114

CHAPTER 1
 WAGE AND SALARY

WAGE: I.L.O defined the term “wage” as “The remuneration paid by the employer forthe
service of hourly, daily, weekly and fortnightly employees.” It also means that remuneration
paid to production and maintenance or blue-collar employees.

SALARIES: The term “salary” is defined as “The remuneration paid to the clerical and
managerial personnel employed on monthly or annual basis.”

Wages and salaries are the remuneration paid or payable to employees for work performed on
behalf to employer or services provided. Normally, an employer is not permitted to withhold
the wages or any part thereof, except as permitted or required by law. Employers are required
by law to deduct from wages, commonly termed “withhold”, income taxes, social contributions
and for other purpose, which are then paid directly to tax authorities, social security authority,
etc., on behalf of the employee. Garnishment is a court ordered withholding from wages to
pay a debt. Wages and salaries are typically paid directly to an employee in the form of cash
or in a cash equivalent, such as by cheque or by direct deposit into the employee’s bank account
or an account directed by the employee. Alternatively, all part or a part may be paid in kind in
the form of goods or services provided to the employee, such as food and board.

For tax purposes, wages and salaries normally do not include other non-cash benefits
received by an employee, such as flights, payment of school fees etc. These are usually referred
to as fringe benefits. In the national accounts, in accordance with the System of National
Accounts, wages and salaries are the sum of remuneration paid to employees, including the
values of any social contributions, income taxes, etc., payable to employees.For administrative
convenience, or due to a legal requirement or some other reason all or a part of such payments
may actually be withheld by the employer and paid directly to tax authorities, etc. on behalf of
the employee.

However, labor related expenses of a business, such as payroll taxes, pension fund
contributions, social insurance schemes, workers compensation insurance, etc., are not counted
as wages and salaries for national accounts purposes. Similar concepts apply to general
accounting treatment of labor expense. Wages and salaries in cash consist of such amounts
payable at regular intervals, such as weekly, monthly or other intervals, including payments by
results and piecework payments; allowances, such as those for working overtime; amounts paid
to employees away from work for short periods [e.g., on holiday, sick
leave, etc.]; ad-hoc bonuses and similar payments; commissions, gratuities and tips received
by employees.

Wages and salaries in kind consists of remuneration in the form of goods or services
that are not necessary for work and can be used by employees in their own time, and t their
own discretion, for the satisfaction of their own needs or wants or those of other members of
their households. Wages constitute the major factor in the economic and social life of any
community in an economic sense; wages represent payment of compensation in return for work
done. In a sociological sense, wages characterize stratification of occupational categories. In a
psychological sense, wages satisfy need directly and indirectly in response to changing
employee aspiration.

It constitutes one of several elements of job satisfaction and is instrumental for the
satisfaction of some needs more than others. In a legal sense, the term wages or salaries has
acquired various connotations, depending on the context and has become a subject of special
law in many countries. It is most important to an industrial worker because his standard of
living and that of his family depends upon his earnings. Wages have at least two connotations
from the stand points of employers and employees in organizational settings – First, the
employers perceive wages as a cost of their business efforts and are keen to reduce labor cost
per unit of output. Explicitly, wages form an important cost factor for the enterprise. Although
the employers are inclined to save this cost, they have also come to realize that it would not be
possible for them to attract and maintain an effective workforce without compensating it
adequately, Second, employees consider wages as a means for satisfying their needs in terms
of an expected standard. They desire to receive at least as remunerationas other individuals
equipped with similar skills for doing similar work.
 PROCESS OF WAGE AND SALARY:

JOB ANALYSIS: Job Analysis tends to report the duties, responsibilities, rights and
authorities, working conditions and inter-relationship amidst the jobs. It seeks to track and
study the particulars related to the training, skills, competencies, efforts, qualifications,
capabilities, expected from the incumbent. Once the job specification is complete, the process
of grading, rating and jab evaluation takes place, in which the job is rated, so as to ascertain the
value of the job in relation to other jobs in the organization. Thereafter job is associated with
the price, which encompasses the translation of the relative job values into terms of money.

WAGE SURVEY: This step involves a survey of the wages being paid by the other
organizations, for the same job, in a particular industry. Based on the utility, if the wages for
the concerned job are lower in comparison to the wages for the wages for the same job in other
firm, then the following disadvantages will occur.

GROUP SIMILAR JOBS INTO PAY GRADES: On the receipts of necessary data
relating to job analysis and wage survey, it is now the time to assign pay rates to eachand
every job, however, there is a precondition to group the jobs into pay grades. In a pay grade
system, the job of almost equal strain or importance is ascertained by job evaluation. It states
the amount of pay received by an employee, often on the basis of the responsibilities
undertaken.
PRICE EACH PAY GRADE: The assignment of pay rate to each pay grade is attained
with the help of the wage curve. A wage curve reflects on a graph, the existing pay rate, which
is paid for jobs in various pay grade, in relation to the ranks assigned to each job.

FINE TUNE PAY RATES: As the name suggests, it involves:

1. MAKING CORRECTIONS TO OUT OF LINE: The average pay for a job

may not be equitable, i.e. too high or low, in relation to other jobs. If the pay is below
the line, then a raise is required, whereas if the pay is above the wage line, then pay cut
or pay freeze is preferred.
2. ESTABLISHING RATE RANGES: In general, employer organization do not
prefer a single rate for all the jobs in a specific pay grade, rather they establish rate
ranges for different grades so that there exist different levels and equivalent pay rates
within each pay grade.

SCOPE OF THE STUDY

• The scope of the study covers with extent of help to check all the activities of salary
against the company policies. The study enables to understand the working of a
personnel department in manufacturing units and especially implementation of wage
and salary.
• Wage and salary are taken up as we can see the industries are becoming very
competitive and the organizations are trying to gain an edge by possessing quality
people. One of the techniques that is used is by paying attractive salaries.
• An attempt was made to know the pleasure of employees regarding their wages and
salary. Hence, this study is specially focused on wages and salary which is a key factor
for employee job satisfaction.
• The report may be useful for management students for reading and may be useful in
preparing their report on wages and salary.

NEED OF THE STUDY

➢ Many organizations today, in order to competent enough to meet the challenges need
to continuously changes to develop wage and salary.
➢ Thus, Companies are supposed to adopt well-built wage and salary.
 ➢ The main objective of wage and salary are to control the cost, to establish a fair and
equitable remuneration to all, to utilize the wages and salarydevice as an incentive
to greater employee productivity and to maintain a satisfactory public relation image.
➢ The need of the study is to know what are the fair wages that bring congruence between
employees and employer. It is a study to understand the application of wages act in
organization.
➢ The study also aims that evaluating the practical wage and salary under taken by the
organization in their work environment to improve their working skills.

OBJECTIVES OF THE STUDY

The study was conducted to achieve the following objectives:

▪ To know the level satisfaction of the employees regarding the wage and salary.
▪ To identify what are the factors affecting on wage and salary whilegiving salaries
to the employees.
▪ To make suggestions to the organizations about wages and salaries.
 RESEARCH METHODOLOGY

In dealing with any problems, it is often found that data at hand are inadequate, and therefore
it becomes necessary to collect data that are appropriate. There are the several ways of
collecting appropriate data, which defer considerably in context of time and other resources.

Two types of data can be used for doing the research:

• Primary Data
• Secondary Data

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
a way that every employee can understand. It consists of 16 questions which are simple and
close and open-end questions.
SECONDARY DATA: The data is collected from published reports, unpublished
reports, annual reports, unpublished manuals and materials etc.

SAMPLING: In order to get a data sample size of 100 is taken and employees selected
onrandom base.

THE SOURCES ARE:

➢ Interview with assistant personal manager.

➢ Collecting necessary information by conducting survey through questionnaire.
➢ Annual report
➢ Bulletins.
➢ Files (DA files, Bonus files)

LIMITATIONS OF THE STUDY

➢ Time was the main constraint for the project.
➢ The collected one does not give the complete information.
➢ The lack of availability of information.
➢ The sample size taken for the research is small due to constraint of time.
➢ Some of the employees had not co-operated in filling of questionnaire.
➢ The responses can be biased.
CHAPTER 2:
REVIEW OF LITERATURE
 WAGE AND SALARY
Wage and salary are a collection of practices and procedures used for planning and distributing
company-wide compensation programs for employees. These practices include employees at
all levels and are usually handled by the accounting department of a company.

Wages are payments for labor services rendered frequency, expressed in hourly rates, whilea
salary is similar payment, expressed in weekly, monthly or annual rates.

A ‘wage’ (or pay) is the remuneration paid, for the service of labor in production, periodically
to an employee/worker. “Wages” usually refer to the hourly rate or daily rate paid to such
groups as production and maintenance employees (“blue collar workers”).Salary normally
refers to the weekly or monthly rates paid to clerical, and professional employees (“white collar
workers”).
 NATURE AND CHARACTERISTICS

NATURE:

❖ The basic purpose of wage and salary is to establish and maintain an equitable wage
and salary structure.
❖ It is concerned with the establishment and maintenance of equitable labor coststructure
i.e. an optimal balancing of conflicting personnel interest so that the satisfaction of the
employees and employers is maximized and conflicts are minimized.
❖ The wage and salary are concerned with the financial aspect of needs, motivation and
rewards.
❖ Employees should be paid according to the requirement of their job i.e. highly skilled
jobs are paid more compensation than low skilled jobs.
❖ To minimize the chances of favoritism.

CHARACTERISTICS:

❖ Payment of wages is in accordance with the terms of contract between the employer
and the worker.
❖ The wages are determined on the basis of time-rate system or piece-rate system.
❖ Wages change with the change in the spent by the laborer.
❖ Wages create utility.
❖ Wages may be paid weekly, fortnightly, hourly, or monthly basis.
❖ Wage is the reward paid to the workers for the services rendered by them.
❖ Wages can be paid in cash or in kind.
❖ All kinds of allowances are included in wages.
In accordance with the system of National Accounts, wages and salaries include the value of
any social contribution, income tax, etc., payable to the employee even if they are actually
withheld by the employer for administrative convenience or other reasons and paid directly to
social insurance schemes, tax authorities, etc., on behalf of the employee. Wages and salaries
may be paid in various ways, including goods or services provided to employees for
remuneration in kind instead of, or in addition to, remuneration in cash.

Wages and salaries in cash consists of wages of salaries payable at regular basis like weekly,
monthly or other intervals, including payments by results and piecework payments; plus
allowance such as those for working overtime; plus commissions, gratuities and received by
employees. Wages and salaries in kind of consists of remuneration in the form of goods and
or services that are not necessary for work and can be used by employees in their own time,
and at their own discretion, for the satisfaction of their own needs or wants or those of other
members of their households.

Money is ranked as a key motivator as well as a reason for us to seek employment. This unit
is designed to provide an understanding of the key challenges that compensation/salary
management poses for the enterprise. The terms wage/alary/compensation are often used as
synonyms. The term wage is usually associated with contractual employee whose pay is
calculated according to the number of hours worked/ units produced. The word
salary/compensation applies to the remuneration that is paid for a fixed period and does not
depend upon the number of hours worked. It is associated with white collar workers. Certain
theories were propounded for determination of wages but these could not stand the test of time.

Employees compensation is one of the major determinants of employee satisfaction in an

organization. The compensation policy and the reward system of an organization are viewed
by the employee as indicators of the management’s attitude and concern for them. It is not
just the compensation in tote, but its fairness as perceived by the employees that determines the
success of a wage and salary administration system. Hence, it is very important for the
management to design and implement its compensation system with utmost care and tact. A
good wage and salary administration should be able to attract and retain employees, give them
fair deal, keep the organization competitive and motivate employees to perform their best.
Wage and salary determination and administration has always remained sensitive issue for an
organization management, since employees moral, motivation, productivity and their
relationship with the management more or less associated with the compensation management
system.
 FACTORS AFFECTING WAGE AND SALARY LEVELS

ABILITY TO PAY: The ability of an industry to pay will influence wage rate to be paid,
if the concern is running into losses, then it may not be able to pay higher wage rates. A
profitable enterprise may pay more to attract good workers. During the period of prosperity,
workers are paid higher wages because management wants to share the profits with labor.

DEMAND AND SUPPLY: The labor market conditions or demand and supply forces to
operate at the national and local levels and determine the wage rates. When the demand for a
particular type of skilled labor is more and supply is less than the wages will be more. On the
other hand, if supply is more demand on the other hand is less, then persons will be available
at lower wage rate also.

PREVAILING MARKET RATES: No enterprise can ignore prevailing wage rates.

The wage rates paid in the industry or other concerns at the same place will form a base for
fixing wage rates. If a unit or concern pays low rates then workers leave their jobs whenever
they get a job somewhere else. It will not be possible to retain good workers for long periods.
COST OF LIVING: In many industries wages are linked to enterprise cost of living which
ensures a fair wage to workers. The wage rates are directly influenced by cost of living of a
place. The workers will accept a wage which may ensure them a minimum standard of living.
Wages will also be adjusted according to price index number.

BARGAINING OF TRADE UNIONS: The wage rates are also influenced by the
bargaining power of trade unions. Stronger the trade union, higher will be the wage rates. The
strength of a trade union is judged by its membership, financial position and type of leadership.

PRODUCTIVITY: Productivity is the contribution of the workers in order to increase

output. It also measures the contribution of other factors of production like machines, materials,
and management. Wage increase is sometimes associated with increase in productivity.
Workers may also be offered additional bonus, etc., if productivity increases beyond a certain
level.

GOVERNMENT REGULATIONS: To improve the working conditions of workers,

government may pass a legislation for fixing minimum wages of workers. This may ensure
them, a minimum level of living. In under developed countries bargaining power of labor is
weak and employers try to exploit workers by paying them low wages. In India, Minimum
Wages Act, 1948 was passed empower government to fix minimum wages of workers.
Similarly, many other important legislations passed by government to improve the wage
structure.

COST OF TRAINING: In determining, the wages of the workers, in different

occupations, allowances must be made for all exercises incurred on training and time devoted
for it.
 PRINCIPLES OF WAGE AND SALARY

• Wage policy should be developed keeping in view the interests of all concerned parties
viz., employer, employees, the consumers and the society
• Wage and salary plans should be sufficiently flexible or responsive to changes in
internal and external conditions of the organization.
• Efforts should be made to ensure that differences in pay for jobs are based onvariations
in job requirements such as skill, responsibility, efforts and mental and physical
requirements.
• Wage and salary administration plans must always be in conformity with the social and
economic objectives of the country like attainment of equity in income distribution and
controlling inflation etc.
• These plans and programs should be responsive to the changing local and national
conditions.
• Wage and salary plans should expedite and simplify administrative process.
• Workers should be associated, as far as possible, in formulation and implementation
of wage policy.
• An adequate data base and a proper organizational set up should be developed for
compensation determination and administration.
• The general level of wages and salaries should be reasonably in line with that prevailing
in the labor market.
• There should be a clearly established procedure for hearing and adjusting wage
complaints. This may be integrated with the regular grievance procedure, if it exists.
KEY DIFFERENCES BETWEEN SALARY AND WAGES
Salary is the fixed amount of compensation which is paid for the performance of an
employee. Wage is the variable amount of compensation which is paid on the basis of
hours spent in finishing a certain amount of work.
Salary is given to the skilled persons who apply their proficiencies in respective fields
and generate the revenues for the firm. Whereas wages are paid to the semi-skilled or
unskilled worker such as carpenter, welder, electrician, etc. who work on hourly basis.
In the case of salary, the cost incurred is fixed i.e. fixed amount is paid monthly.
Whereas in wages, the cost is variable, because it can vary with the day-to-day
performance of an individual.
Salary once decided, in the beginning, remains fixed throughout. Whereas in wage
system, there is a wage rate that keeps on changing and an individual is paid on the
basis of prevailing wage rate.
Salary is paid on the basis of the performance of an individual. Whereas wages are paid
on hourly basis i.e. the amount of work done in hours.
Salary is paid to employees who possess the skills and efficiencies in completing the
office work. Whereas wages are engaged in manufacturing processes and do the work
on hourly basis.
 IMPORTANT ASPECTS OF SALARY AND WAGES

ECONOMIC ASPECTS: The economic issues are of utmost importance in wage and
salary administration. Wages and salaries constitute an important element of cost of production.
As a purchaser of labor services, the employer tries to obtain the greatest quantity and the
highest quality for his money paid for the services. On the other hand, the worker tries to get
the highest price for his able to command.

SOCIOLOGICAL ASPECTS: The pay received by a worker is also symbolic of his

social status. “In many cases, the nature of social prestige is reflected in the type of job itself,
yet monetary rewards associated with various jobs also, in part, symbolize distinctions.” The
amount of pay received by a worker has manifestations in family status, friendships and
social interactions. The establishment of wage relativities requires careful consideration of
customary and traditional forces.

PHYCHOLOGICAL ASPECTS: Pay constitutes an important motivator to people by

way of providing a means for satisfying needs. Although non-financial rewards also contribute
towards motivating people at work, financial inducements play a very important role in
motivating them. This is particularly true in organization with poorly paid employees.

POLITICAL ASPECTS: Compensation issues often involve political considerations in

the form of power and influence. The influence of trade unions affiliated to political parties in
power or of even strong unaffiliated unions is very often reflected in collective bargaining. Not
infrequently, wage-bargains are unionized industries also. Similarly, strong employees or their
organizations having the support of political party in power dominate wage negotiations. This
has been particularly true in the era of globalization all over the world. Even within a particular
organization, groups influence internal wage negotiations.
ETHICAL ASPECTS: In many cases, emphasis has to be laid on establishing fairness in
wage relativities and reducing gross inequities in wage structure. Pay decisions are very often
made to correct inequities and discrimination against employers, unions, groups and
individuals. The question of establishing fairness often results in formulation of norms in
matters of wages. Norms pertaining to “minimum wage”, “fair wage”, “living wage”,
reckoning of differentials and women’s wages may be cited as examples.
 WAGE AND SALARY THEORY
Wage and salary, income derived from human labor. Technically, wages and salaries cover all
the compensation made to employees for either physical or mental work, but they do not
represent the income of the self-employed. Labor costs are not identical to wage and salary
cost, because total labor costs may include such items as cafeterias or meeting rooms
maintained for the convenience for the employees. Wages and salaries usually include
remuneration such as paid vacation, holidays, and sick leave, as well as fringe benefits and
supplements in the form of pensions or health insurance sponsored by the employer. Additional
compensation can be paid in the form of bonuses or stock options, many of which are linked to
individual or group performance.

WAGE THEORY

Theories of wages determination and speculations on what share the labor force contributes to
the gross domestic product have varied from time to time, changing as the economic
environment itself has changed. Contemporary wage theory could not have developed until the
feudal system had been replaced by the modern economy with its modern institutions (such as
corporations).

CLASSICAL THEORIES

The Scottish economist and philosopher Adam Smith, in The Wealth of Nations (1776), failed
to propose a definitive theory of wages, but he anticipated several theories that were developed
by others. Smith thought that wages were determined in the marketplace throughthe law of
supply and demand. Workers and employers would naturally follow their own self-interest;
labor would be attracted to the jobs where labor was needed most, and the resulting
employment conditions would ultimately benefit the whole society. Although Smithdiscussed
many elements central to employment, he gave no precise analysis of the supply and demand
for labour, nor did he weave them into a consistent theoretical pattern. He did, however,
prefigure important developments in modern theory by arguing that the quality of worker skill
was the central determinant of economic progress. Moreover, he noted that workers would need
to be compensated by increased wages if they were to bear the cost of acquiring new skills an
assumption that still applies in contemporary human capital theory. Smith also believed that in
the case of an advancing nation, the wage level would have to be higher than the subsistence
level in order to spur population growth, because more people would be needed to fill the extra
jobs created by the expanding economy.

WAGES-FUND THEORY
 Smith said that the demand for labour could not increase except in proportion to the increase
of the funds destined for the payment of wages. Ricardo maintained that an increase in capital
would result in an increase in the demand of labour. Statements such as these foreshadowed
the wages-fund theory, which held that a predetermined “fund” of wealth existed for the
payment of wages. Smith defined this theoretical fund as the surplus or disposable income
that could be used by the wealthy to employ others. Ricardo thought of it in terms of the capital
such as food, clothing, tools, raw materials, or machinery needed for conditions of employment.
The size of the fund could fluctuate over periods of times, but at any given moment the amount
was fixed, and the average wage could be determined simply by dividingthe value of this fund
by the number of workers.

This theory was generally accepted for 50 years by economists such as Nassau William Senior
and John Stuart Mill. After 1865 the wages-fund theory was discredited by W.T. Thornton,
F.D. Longe, and Francis A. Walker, all of whom argued that the demand for labour was not
determined by a fund but by the consumer demand for products. Furthermore, the proponents of
the wages-fund doctrine had been unable to prove the existence of any kind of fund that
maintained a predetermined relationship with capital, and they also failed to identify what
portion of the labour forces contribution to a product was actually paid inwages. Indeed, the
total amount paid in wages depended upon a number of factors, including the bargaining power
of laborers. Despite these telling criticisms, however, the wages-fund theory remained influential
until the end of the 19th century.
BARGAINING THEORY

The bargaining theory of wages holds that wages, hours, and working conditions are
determined by the relative bargaining strength of the parties to the agreement. Smith hinted at
such a theory when he noted that employers had greater bargaining strength than employees.
Employers were in a better position to unify their opposition to employee demands, and
employers were also able to withstand the loss of income for a longer period than could the
employees. This idea was developed to a considerable extent by John Davidson, who proposed
in “The Bargaining Theory of Wages (1898)” that the determination of wages is an extremely
complicated process involving numerous influences that interact to strength of the parties.

PROS AND CONS OF WAGES AND SALARY

PROS OF WAGES AND SALARY:

▪ ATTRACT AND RETAIN THE EMPLOYEES: If an organization

possesses good wage and salary structure, it will attract and retain suitable, qualified
and experienced personnel.
▪ BUILDS HIGH MORALE: The wage rates established for various categories
of jobs should be internally consistent; it will motivate the employees of the
organization. It will build high morale of employees and act as an incentive to greater
employee productivity and efficiency.
▪ SATISFIED EMPLOYEES: A good wage and salary structure will keep the
employees satisfied. There will be lesser labour turnover, industrial disputes and
employee grievances and exigencies.
▪ LABOUR COST EQUITABLE: A good wage and salary structure will
maintain two types of equitabilities viz. (a) labour cost equitable and (b) equitable wage
and salary structure. Pay according to the work performed by an employee, if the
employees is performing hazardous work pay him more.
▪ NO FAVOURITISM/BIAS: If an organization has definite wage and salary
structure, favoritism/bias can be avoided.
▪ CLEARLY DRAWN LINE OF PROMOTIONS: If a company has good
wage and salary structure, it can have a definite sequence of jobs and clearly draw line
of promotions.
 CONS OF WAGES AND SALARY:

▪ NO HOLIDAY OR OVERTIME PAY: Salaried individuals may not receive

overtime pay for working more than 40 hours or extra pay for working holidays.
▪ ON-CALL: Some employees work unusual hours or are on-call for extended hours.
This can cause stress for employees. Employers hire employees who can meet the
demands of the business, regardless of how much they are paid.
▪ BONUSES CONTINGENT ON PERFORMANCE: If there are
performance benchmarks which are not met, salaried employees could lose their
opportunity of receiving bonus.
▪ HOURS WORKED AND CUTS: Waged employees are paid for hours worked.
While, this is an advantage on some levels, it can also be a disadvantage if you are
unable to work enough hours to make comfortable earnings.
▪ BENEFITS: Employees who are paid in wages are less likely to enjoy benefits that
salaried employees receive.

LEGAL FRAMEWORK OF WAGES AND SALARIES

➢ THE PAYMENT OF WAGES ACT, 1936: The Royal Commission Labour in its
report (1931) recommended, among other things that the legislation on timely payment of
wages, deduction from wages and fines, was necessary and desirable. In the light of its
recommendations the Government of Inia introduced a bill in 1936, and the Act came into
force from 28th March, 1937.
➢ THE MINIMUM WAGE ACT, 1948: The genesis of the Minimum Wage Act is
traceable to the Minimum Wage Fixing Machinery Convention, 1928 (No. 28) of the
International Labour Organization (ILO). This convention has become one of the most
widely accepted instruments of the ILO. The Minimum Wage Bill was introduced in the
Central Legislature in 1946 and was passed in 1948. The Actcontains 31 Sections.

THE PAYMENT OF BONUS ACT, 1965: In pursuance of the decision taken at the 18th
session of the Indian Labour Conference, the Government of India constituted the Bonus Commission
on December 6, 196. The Government acceptedthe recommendation of the Commission with slight
modification, and promulgated an ordinance on May 29, 1965. The Act came into force from October
25, 1965. Subsequently, there were a of amendments to the Act. The Act consists of 40 Sections and
four schedules.
 THE PAYMENT OF BONUS ACT, 1965: In pursuance of the decision taken at the 18th
session of the Indian Labour Conference, the Government of India constituted the Bonus Commission
on December 6, 196. The Government acceptedthe recommendation of the Commission with slight
modification, and promulgated an ordinance on May 29, 1965. The Act came into force from October
25, 1965. Subsequently, there were a of amendments to the Act. The Act consists of 40 Sections and
four schedules.

➢ THE EQUAL REMUNERATION ACT, 1976: To give effect to Article 39 of

the Indian Constitution, the Government of India, on the 26th of September 1975
promulgated the Equal Remuneration Ordinance. The Ordinance was replaced by the Equal
Remuneration Act, 1976. It came into force from the assent of the President of India on
11th February 1976. It came into force from 11th March 1976 throughout India in the
employments notified for the purpose. In exercise of the powers conferred under Section 13
of the Act, the Central Government framed rules known as the EqualRemuneration Rules,
1976.
 WAGE AND SALARY SURVEYS

• Once the worth of a job has been established using one of the job rating systems the
actual salary to be paid for each job must be determined.
• A major factor in making the determination is the wage survey.
• Since salaries paid by the other companies have an effect on employment, morale and
turnover rate. Close attention is paid to the salary that is prevailing in the community
and industry for specific jobs.

• A survey of employers in the same industry and the same area showing the wages and
salaries they pay to their employees.
• Wage and salary surveys are useful because they show the prevailing compensation in
a given city or other place, which may result in employers making upward or downward
adjustments.

• The actual salary to be paid for each job must be determined.

• Informal surveys may be conducted through telephones or informal interviews.
• Formal surveys use questionnaires based on benchmarks jobs.
• The Human Resource Department are preparing sets of questionnaires.
 TYPES OF WAGES AND SALARIES

TYPES OF WAGES

▪ TIME WAGE: In this type the worker is given remuneration according to time. This
type of remuneration may be per hour, per day or per month or per year. There exists
no relationship between the quantum of work and the wage. This type is an operation
in all industries in India. This plan is very simple to understand. The workerworks after
due thinking and with convenience. However, it encourages the tendency of prolonging
or delaying the work unnecessarily. Moreover, it is very difficult to measure the
productivity of the workers under this type of pain.
▪ PIECE RATE SYSTEM: In this type of plan, worker gets remuneration
according to his output irrespective of the time he takes in finishing his job. Here, the
payment of remuneration is related to work and not to time. Under this type, the workers
are encouraged to earn more and more. The more the output is, the more the
remuneration is. The workers are also at liberty for their job with interest and they need
not be supervised. However, this type of wage payment is noy suitable for commodities
of artistic taste. Moreover, the quality of goods goes down.
▪ WAGE INCENTIVE PLAN: This type of wage payment is the combination of
two types the above referred. Efforts have been made here to obtain the advantages of
both these types while avoiding their disadvantages. This includes:

a) Taylor’s Plan: Taylor Plan is based on wages per unit. In other words, a
 worker is paid wages in accordance with his output. Higher price rate is fixed for
the workers who give production over and above the standard workload fixed. The
lower rate is fixed for the workers who give production below the standard
workload fixed
b) Merrick Plan: This plan is somewhat a modified form of Taylor’s plan. This
plan offers three grade piece rates than the two offered in the Taylor’s plan. (i)
First limit is for new workers and is very low, (ii) Second limit is for workers with
average efficiency, (iii) Third limit is for very efficient workers.

c) Gantt Plan: This is also a modified form of Taylor’s plan. In it wages are fixed
on the basis of time. On the other hand, the efficient workers are given wages per
unit. Thus, the workers who give more output get their wages at enhanced rates.
d) Emerson Plan: This plan is a combination of Taylor, Merrick and Gantt plans.
However, a slight modification in these plans has been made and different rates of
bonus have been fixed under this plan. The amount of bonus increases with the
increase in efficiency.

e) Profit Sharing Scheme: Under this scheme, workers are given a certain
percentage of profits as bonus. But it suffers from one defect. Suppose, there is no
profit in a particular year, workers will also not be given the bonus for that very
year. The workers think that they have been deceived by the employers and
therefore, clash with them on this very issue.
f) Scalan Plan: Under this scheme, the workers are paid bonus equal to the
percentage of profits earned more than profits earned last year by the organization.
15% of the bonus is deducted and this deduction is deposited in the fund which is
distributed among the workers in the year to come.

TYPES OF SALARIES

▪ Hourly Salary: Hourly is the type of wage that is paid based on the number of hours
worked. This type of wage is typically used in jobs that are not salaried, such as retail
or food service jobs. To calculate an hourly salary, simply multiply the number of hours
worked in a week by the hourly pay rate. For example, if someone makes
$10 per hour and works 40 hours per week, their weekly salary would be $400. the best
thing about being paid hourly is that an employee can easily budget their expenses. It’s
easy to calculate bills and other payments. Additionally, if someone works more hours
one week, they will earn more money.
 Salary by Commission: A commission is a fee that is paid to an employee based
on their performance. This means that if an employee meets or exceeds their sales goals,
they will earn a commission on top of their base salary. Commissions are typically a
percentage of sales, and can vary depending on the product or service being sold.

▪ Salary by Project or Task: When it comes to salary, there are two different
approaches that companies take. The first is to base salary on the specific projects that
an employee works on.
 VIEWS OF SOME SCHOLARS ON WAGES AND
SALARY
ODOGWU JOURNAL OF BUSINESS THEORY 2014 “Wages and Salary”:
Salary and wages is the process of compensating an organizations employee in accordance with accepted
policy and procedures. An important component of a successful organization salary and wage policy is
monitoring and evaluatingall employee’s compensation to ensure in that they are being paid appropriately,
both with respect to others in the same organization and to the marketplace as a whole. Wage and salaryoften
an integral function of the organization’s human resources department, but in general, the larger the
organization, the more likely it is that it will be handled by a separate department.

NWACHUKWU ASIAN JOURNAL OF APPLIED SCIENCE AND

TECHNOLOGY 2017 “Impact of effective Wages and Salaries”: In any
organization, be it in private or public sector, money is a very sensitive issue, not only to
management but also to employees. Wages and salaries constitutea significant part of the total
cost of operation in any organization or establishment.

HASSAN, EURO ECONOMICA JOURNAL 2015 “Wages and Salaries as

a motivational tool for enhancing organizational performance”: This study
examined how the organizations human capital was compensated and see whether the
compensation even serves as a motivational tool to enhance organizational performance. Based
in the findings the following recommendations were preferred that there should be wages and
salaries scale and schedule.

PRAVIN WARAKAR, KISHORE WARAKAR INTERNATIONAL

JOURNAL 2015 “Study of Salary and Wages Administration: The basic
purpose of wage and salary administration is to establish and maintain an equitable wage and
salary structure. The wage and salary administration are concerned with the financial aspects
of needs, motivation and rewards managers, therefore analyze and interpret the needs of their
employees so that reward cab be individually designed to satisfy these needs.
WALTER AERTS, PENG CHENG JOURNAL OF ACCOUNTING AND
PUBLIC POLICY 2011 “Casual disclosures on earnings and earnings
management in an IPO setting”: We examine the association of earnings management
and narrative impression management as reflected in properties of casual explanations of
reported earnings in the prospectus of Chinese IPO firms. Anticipated earningsmanagement
concerns are argued to be a significant incentive for casual disclosures on earnings in order to
rationalize and legitimize earnings outcomes. We find evidence of close alignment of a firm’s
earnings management propensity and its use of tactical casual disclosures. Stronger earning
management is associated with more intense assertive casual disclosure.

AHSAN HABIB, JAMES C HANSEN JOURNAL OF ACCOUNTING

LITERATURE 2008 “Review of earning management around earnings
benchmarks”: The earnings benchmarks are the earning levels (loss avoidance), earnings
improvement (earnings changes), and the analysts forecast benchmark. Healy and Wahlen
(1999) review that the implications of earnings management studies for a standard setter. With
a standard setter framework and a focus on earning benchmarks as the motive for earnings
management, we document the direction of earning management studies since Healy and
Wahlen (1999) studies have

(1) found that firms management have market incentives and also compensation incentives to
meet or beat the three earning benchmarks,

(2) questioned the cross-sectional distribution evidence of the frequency of earnings

management around the earnings benchmarks,

(3) documented methods firms’ management use to manage earnings to beat benchmarks, and

(4) tested whether the market sees through firms that manage earnings to beat benchmarks. We
discuss research that identifies factors that constrain earnings management to beat benchmarks
and research that has attempted to determine which benchmark is the most important to firms’
management. We also discuss areas of interest to standard setters that have not been addressed
by current accounting literature and present avenues for future research.

THOMAS M ROBERTSON PERSONNEL JOURNEL 1986

“Fundamental strategies for wage and salary”: Suggests that a company’s wage
and salary program have a significant influence on an organization’s success
or failure. Job descriptions, job evaluation, performance appraisals, and pay survey information
are discussed as important factors in an effective pay program that exhibits internal equity and
external competitiveness.

JENNIFER J JONES JOURNAL OF ACCOUNTING RESEARCH 1991

“Earnings management during import relief investigations”: This study tests
whether firms would benefit from import relief (e.g.: tariff increases and quota reductions)
attempt to decrease earnings through earnings management during import relief investigations
by the United States International Trade Commission (ITC). The important relief determination
made by the ITC is based on several factors that are specified in the federal trade acts, including
the profitability of the industry. Explicit use of accountingnumbers in import relief regulation
provides incentives for managers to manage earnings in order to increase the likelihood of
obtaining import relief and/or increase the amount of relief granted.

CHI-KEUNG MAN, BROSSA WONG JOURNAL OF APPLIED

BUSINESS RESEARCH 2013 “Corporate governance management: A
survey of literature”: Corporate governance can reduce or even eliminate the extent of
earnings management. Normally, an institutional environment that provides better legal
protection can control managers self-interest to a certain extent. Takeover force can exert
market pressure on managers to do the best for shareholders. Prior studies have investigated
different corporate governance mechanisms that can have negative relationships with earnings
management. Board independence can enhance certain monitoring behaviors in managers,
including the misappropriation of assets. Female directors can develop trust leadership, which
requires managers to share information, and are more likely to be risk- averse to frauds and
opportunistic earnings management. An audit committee can oversee the internal control for
financial reporting and the quality of financial information.

DAVID BURGSTHALER, ILIA DICHEV JOURNAL OF ACCOUNTING

AND ECONOMICS 1997 “Earnings management to avoid earnings
decreases and losses”: This paper provides evidence that firms manage reported earnings
to avoid earnings decreases and losses. Specifically, in cross-sectional distributions of earnings
changes and earnings we find usually blow frequencies of small losses and unusually high
frequencies of small increases in earnings and small positive income. We find evidence that
two components of earnings, cash flow from operations and changes in workingcapital, are
used to achieve increases in earnings. We present two theories, based on
stakeholder use of information processing heuristics and prospect theory, about the motivation
for avoidance of earnings decreases and losses.

KATHERINE SCHIPPER JOURNAL OF ACCOUNTING HORIZONS

1989 “Earnings Management”: Understanding earnings management has implications
for one of the central questions confronted by practicing professional accountants and academic
accountants. Although the variety of accrual options available under Generally Accepted
Accounting Principles and the susceptibility of accruals to manipulation mean that the resulting
accounting numbers could in principle to be managed to the point of un informativeness,
available empirical evidence indicates that accruals do in fact have information content. The
empirical evidence so far on whether earnings are managed is suggestive but not conclusive.
Some research find evidence that income decreasing accruals occur more or less in the ordinary
course of events when earnings are either extreme or above a contractually specified target.
Tests can therefore be constructed around the intervention in the regulatory force giving rise to
earnings management. Even though they are not definitive, the empirical and analytical results
accumulated so far can be used to facilitate systematic analysis of practical decisions.

GILELMAN 1968 “Investment Theory of Wages and Salary”: He proposed on

investment of wages as a replacement for the marginal productivity (MPT). That as the
marginal productivity theory focuses on the output of labour input, wages and salary are
assumed to be a return on worker investment, then one would assume that the larger the
investment, the higher the wages and salaries. In practice, however, this will not always be true.

DAGGET AND HABU 2004 “Salary administration is the method and

process that an organization uses for compensating their workers”: They
argued that workers cannot obtain financial job satisfactions unless the organization achieved
its goals. These scholars advanced that linking pay to the labour market and variable pay to
success of the organization, the managers can use the salary system to foster teamwork and
other organizational goals. it is therefore necessary for the reward system not to make
inflationary rate in the country into related business to be introduced by both private and public
sectors of the Nigeria economy.

OBIKEZE AND ANTHONY 2003: Salaries or wages are the reward that individuals
receive from organization in exchange for their labour and that every organization has its
distinct salary system. Choosing a successful salary system depends on consideration of salary
levels, salary structure and individual pay determination.
 CHAPTER 3

INDUSTRY PROFILE
 INDUSTRY PROFILE
The private sector is the part of the economy that is run by individuals and companies for profit
and is not state controlled. Therefore, it encompasses all for profit businesses that are not owned
or operated by the government. Companies and corporation that are government run are part of
what is known as the public sector, while charities and other non-profit organizations are part
of the voluntary sector. The private sector consists of all privately owner, for profit businesses
in the economy. The private sector tends to makeup a large share of the economy in free market,
capitalist based societies. Private sector businesses can also collaborate with government run

agencies in arrangements called public-private partnerships. The private sector is the segment
of a national economy that is owned, controlled, and managed by private individuals or
enterprises.

The private sector has a goal of making money and employs more workers than the public
sector. A private sector organization is created by forming a new enterprise or privatizing a
public sector organization. a large private sector corporation may be privately or publicly
traded. Businesses in the private sector drive down prices for goods and services while
competing for consumers money, in theory customers do not want to pay more for something
when they can buy the same item elsewhere at a lower cost. In most free economies, the
private sector makes up a big portion of the economy, as opposed to nations that have more
state control over their economies, which have a larger public sector. For example, the United
States has a strong private sector because it has a free economy, while China, where the state
controls many of its corporations, has a larger public sector. The private sector is very diverse
sector and makes up a big part of many economies. It is based on many different individuals,
partnerships, and groups. The entities that form the private sector include:

• Sole Proprietorships
• Partnerships
• Small and mid-sized businesses
• Large corporations and multinationals
• Trade unions

Even though the state may control the private sector, the government does legally regulate it.
Any business or corporate entity operating in that country must operate under the laws. The
private sector employs workers through individual business owners, corporations or other non-
government agencies. Jobs include those in manufacturing, financial services, professions,
hospitality, or other non-government positions. Workers are paid with part of the company’s
profits. Private sector workers tend to have more pay increases, more career choices, greater
opportunities for promotions, less job security, and less comprehensivebenefit plans than public
sector workers. Working in a more competitive marketplace often means longer hours in a
more demanding environment than working for the government.

The private and public sector sometimes work together while promoting common interests.
Private sector businesses leverage governmental assets and resources while developing,
financing, owning and operating public facilities or services. For example, a private company
might pay a state a one-time fee to operate a specific length of freeway for a set time in
exchange for revenue from trolls. A 2013 study by the “International Finance Corporation”
(part of the world bank group) identified that 90 percent of jobs in developing countries are in
private sector.

States legally regulate the private sector. Businesses operating within a country must comply
with the laws in that country. In some cases, usually involving multinational corporations that
can pick and choose their suppliers and locations based on their perception of the regulatory
environment, local state regulations have resulted in uneven practices within one company. For
example, workers in one country may benefit from strong labour unions, while workersin
another country have very weak laws supporting labour unions, even though they work for the
same employer. In some cases, industries and individual businesses choose too self-
regulate by applying higher standards for dealing with their workers, customers, or the
environment than the minimum that is legally required of them.

There can be negative effects from the private sector. In the early 1980s, the “Corrections
Corporations of America” pioneered the idea of running prisons for a profit. Today, corporate-
run prisons hold eight percent of America’s inmates. Since it is from the private sector, their
main priority is not rehabilitation, but profit. This has resulted in many human rights violations
across the United States.

The private sector plays a vital role in the economy by creating jobs, providing goods and
services, and stimulating economic growth. It is an important source of tax revenue for
governments. Businesses pay taxes to help to fund public services and enable governments to
invest in infrastructure and other important projects. The private sector is a key driver of
innovation. Private companies invest in research and development, which leads to newproducts
and services that boost the economy and improve people’s lives. The invention of the iPhone
is one example, as it revolutionized the way people communicate and carry out every day.

Both private sector businesses and public sector offices work together to form a fully
functioning economy. At times, they can work together on common goals. For example, private
sector businesses might use government assets or resources to assist with public services. Yet
for most start-up entrepreneurs, the private sector is where you will operate.
ROLE OF THE PRIVATE SECTOR: The role of the private sector is
integral to the development of an economy. Here are some specific roles of the private sector.

❖ SIGNIFICANT STAKEHOLDERS OF THE ECONOMY: The private

sector is an important player in the economy due to the input it makes to the national
income. Particularly, it delivers vital goods and services, contributes to tax revenues
and ensures the efficient flow of capital.
❖ GENERATE EMPLOYMENT: The private sector plays the pivotal role of
generating employment opportunities within its community. A significant number of
businesses are under the control of the private sector, which suggests that these firms
provide more jobs than the public sector.
❖ ASSIST IN DEVELOPMENT: The private sector plays a dominant role in
different types of developments. Specifically, it enhances the process of
industrialization-on and community improvement. By introducing new commodities,
equipment, machinery and technology, companies in the private sector produce
innovative ideas that modify methods of production and leads to economic
development. Alternatively, the private sector contributes to community development
through promoting community business, local exchange systems, cooperatives and
informal credit. It also attracts potential investors who promote and expand existing
companies.
❖ PROVISION OF GOODS AND SERVICES: The private sector is the main
provider of goods and services. It promotes human capital development, which gives
it the ability to produce more goods and services and therefore satisfy market demand.
❖ PROMOTE DIVERSIFICATION OF BUSINESS: The private sector is
full of firms conducting varied businesses. Essentially, this sector provides new
companies with the opportunity to develop no matter the type of business. With this
freedom, private companies are able to diversify their operations.
 MAIN FEATURES OF THE PRIVATE SECTOR
The main feature of the private sector is its management by private individuals without
government involvement, but there are more features of the private sector:

• Profit motive
• Private ownership and control
• No state participation
• Independent management
• Private finance
• Work culture of employees

PROFIT MOTIVE: The primary focus of companies in the private sector is

making a profit. By operating within the regulations and compliances of the respective
country, companies in the private sector typically manage to realize more profits
compared to firms in the public sector. Additionally, profits provide reward forthe risk
taken and the required return on capital.
PRIVATE OWNERSHIP AND CONTROL: Private entrepreneurs are
responsible for owning, controlling and managing the private sector. The management
may be either by a single individual or by a group of people. When the ownership
belongs to a single person, the private sector company is referred to as a sole
proprietorship. Alternatively, a group of persons may jointly own a firm in the form of
a cooperative society, partnership or a joint-stock company.
NO STATE PARTICIPATION: Private sector entities have less exposure to
government interference. There is no participation by the state or central governments
in the ownership and control of a private sector.
INDEPENDENT MANAGEMENT: The management of the private sector
relies entirely on its owners. In the case of a sole proprietorship, the manager makes
all of the decisions and acts on behalf of the company in legal matters. On the other
hand, the management of a joint-stock company depends on a group of directors who
are elected representatives of the shareholders.
PRIVATE FINANCE: The private sector obtains capital from its owners or
shareholders. Different types of private sector undertakings have varied means of
raising capital. A sole trader contributes capital for a sole proprietorship, and partners
invest capital in case of a partnership. Alternatively, a joint-stock company raises
capital through the issue of share and debentures (a type of long-term debt). Requesting
loan for a long and short term needs or funds is also another way the private sector
raises capital.
WORK CULTURE OF EMPLOYEES: The private sector has a competitive
work culture, characterized by performance-based career growth and better
compensation. Private sector companies strive to create the best work environment for
their employees to maintain a competitive advantage over other firms in the private
sector.
 MARKET SIZE AND GROWTH OF PRIVATE SECTOR

As of the last decade, the growth and investment in the private sector has well surpassed the
growth in the public sector. The share of the private sectors in the net sales of manufacturing
and services industry augmented from 48.83% in 2001 to 68.55% in 2009-10. Subsequently
the share of the public sector reached to 31.45% from a higher percentage of 51.17%. The
shares of private sector in the net profit in the non-agricultural economy rose to 63.86% from
39.17%. The share of the public sector subsequently declined to 36.14% from 60.83%.

This increase in the private sector’s share is largely due to the higher foreign direct investment
over the last decade. Over the last decade or so, with the liberalization of the economic policies,
India has been able to achieve higher investment from the private sector. For instance, due to
modifications and changes in the economic policies the transport and telecommunication
industry witnesses a higher percentage of growth and investment in the private sector.
 INFRASTRUCTURE OF PRIVATE SECTOR

❖ The private sector can play a role in improving inclusivity in infrastructure projects, but
careful planning is necessary to ensure this result.
❖ The appropriate application of incentives, such as the linking of government payments
to inclusive outcomes, can help to align the private sector with government inclusivity
objectives, such as improving gender equity in access to infrastructure services.
❖ Many large infrastructure projects are monopolistic by nature. Regulation of
infrastructure can promote and enforce compliance with government objectives, such
as the desire to meet the basic infrastructure needs of low-income households.
❖ The creation of jobs is an important part of tackling poverty. Infrastructure projects can
both directly and indirectly promote employment. Policies can be established to
improve inclusive job opportunities and increase the involvement of small and medium
sized enterprises owned by monitory groups that are likely to face discrimination and
higher barriers to entry.
 ❖ The private sector can help develop innovations in infrastructure, which can assist in
meeting the specific needs of disadvantaged groups, such as people with hearing
disabilities.
❖ The general principles and guidance under this action area applicable to all
stakeholders, but some of the recommended approaches to private sector participation
in this action area are sector specific. All recommendations should however be adjusted
as necessary to take into account the individual features of the infrastructure project
under consideration, so as to optimize opportunities that will benefit targeted
stakeholder groups.

STATISTICS AND FACTS OF PRIVATE SECTOR

The private sector contributes 15.87% of the overall. It’s worth mentioning that agriculture
works the most, contributing to more than 53% of the population. Facilities and secondary
sectors comprise around 29 percent and 18 percent of the overall workforce, respectively. Gross
fixed capital formation, private sector (% of GDP) in India was reported at 22.39% in 2020,
according to the World Bank collection of development indicators, complied from officially
recognized sources. India – Gross fixed capital formation, private sector (% of GDP) actual
values, historical data, forecasts and projections were sourced from the World Bank on April
of 2023. Private investment covers gross outlays by the private sector (including private non-
profit agencies) on additions to its fixed domestic assets. In financial year 2021, there were
over 154 thousand companies registered in India with a total authorized capital of over 790
billion Indian rupees.
 CHAPTER - 3

COMPANY PROFILE
Reliance Retail is an Indian retail company and a subsidiary of Reliance Industries. Founded
in 2006, it is the largest retailer in India in terms of revenue. Its retail outlets offer foods, groceries,
apparel, footwear, toys, home improvement products, electronic goods, and farm implements and
inputs. Apart from physical outlets, the company also sells products on its e-commerce channels.
It has 280,000 employees at 16,700 store locations.

In September 2020, it was announced that American investment firm Silver Lake has bought
1.75% stake in Reliance Retail for ₹7,500 crore (US$940 million) valuing the business at
₹4.28 trillion (US$54 billion). On 23 September, it was announced that KKR has bought 1.28%
stake for ₹5,500 crore valuing the venture at ₹4.28 trillion or $58 billion.

In October 2020, Singapore’s GIC bought a 1.22% stake for $752 million, while TGPacquired
a 0.41% stake for $250 million giving Reliance Retail a pre-money valuation of
%58.5 billion.

In 2022, Reliance Retail launched fashion stores under Azote brand, under which it retails
footwear, fashion accessories, home and beauty products.

In March 2023, Reliance Consumer Products (RCPL), the fast-moving consumer goods arm
and subsidiary of Reliance Retail Ventures (RRVL) announced the relaunch of the iconic brand
Campa Cola.
 RELIANCE RETAIL INFORMATION

Logo :

Type : Subsidiary

ISIN : INE002A01018

Industry : Retail

Founded : 2006; 17 years ago

Founder : Mukesh Ambani

Headquarters : Mumbai, Maharashtra, India

Number of locations : 14,412 (2020)

Area served : India

Key people : Mukesh Ambani (chairman)

Isha Ambani (managing director)

Services : Supermarket

Hypermarket

Superstore

Convenience shop

Revenue : ₹260,364 crore (US$33 billion) (2023)

Operating income : ₹12,130 crore (US$1.5 billion) (2023)

Net income : ₹9,181 crore (US$1.1 billion) (2023)

Total assets : 168,311 crore (US$21 billion) (2023)

Owner : Reliance Industries (85.12%)

Owner : Infotel Infocom (0.6%)

Sovereign wealth funds (5.86%)

Private equity firms (4.32%)

Number of employees :139,000+ (2020)

Parent : Reliance Industries

Subsidiaries : Reliance Fresh

Reliance Smart

Reliance Digital

Reliance Trends

Reliance Trends Footwear

Jio Stores

Justdial

Hamleys

Jio Mart

AJIO

Fynd

Urban Ladder

Net meds

C – square

Smart Bazaar

Centro

Websites : www.relianceretail.com
 ACQUISITIONS AND PARTNERSHIPS

On 29 August 2020, Reliance Retail announced that it is acquiring the retail, wholesale,
logistics and warehousing business from the Future Group for ₹24,713 crore (US$3.1 billion)
adding 15 lakh square meters of retail space to the company.

On 15 November 2020, reliance retail announced that it had acquired a majority ownership of
the furniture and decorating company Urban Ladder.

On 7 October 2021, the company announced its partnership with 7-Eleven to open its stores
in India. The announcement came a day after Future Group announced the end of its partnership
with 7-Eleven, citing the inability to meet the target of opening stores andpayment of franchisee
fees. The first 7-Elebven in India opened in Mumbai.

October 2021: - Acquired milk basket

On 6 January 2022, Reliance Retail invested $200 million in Dunzo for 25.8% stake.

In 2022, Campa Cola was acquired by Reliance Industries for ₹22 crores. Reliance Retail
Ventures, the retail arm of the Reliance group launched three variants of the drinks (cola,
orange and lemon) at some selected stores.
Reliance Retail is the retail initiative of Reliance Industries Limited and is central to the
groups consumer facing businesses. Reliance retail has been at the forefront of bringing about
Organized Retail revolution in India. Reliance Retail’s operating model unleashes the
aspirational energy of the new, resurgent India. Reliance Retail’s guiding philosophy rests on
the tenets of enabling inclusion, growth and building sustainable societal value for millions of
Indians. In a short period, it has forged strong and enduring bonds with millions of consumers
by providing them unlimited choice, outstanding value proposition, superior quality and
unmatched shopping experience across all its stores.

Reliance Retail’s growth over the years has triggered a large socio-economic transformation
on an extraordinary scale in India. Reliance Retail has been ranked as the fastest growing
retailer in the world. It is ranked 56th in the list of Top Global Retailers and is the only Indian
Retailer to feature in the Top 100. It is the largest and the most profitable retailer in India
with the widest reach. Reliance Retail has nearly 200 million registered customers buying
across all its formats. It recorded more than 500 million footfalls across all its stores in FY22,
a scale unmatched by any other retailer in India. With over 120,000 transactions per hour,
Reliance Retail operates at a scale unparalleled in the Indian retail industry and continues to
enrich the quality of lives of millions of Indians every day.
Reliance Retail has adopted a multi-prong strategy and operates a wide array of store formats
which cater to planned shopping needs as well as daily or occasional needs of the customers
across major consumption baskets of Grocery, Consumer Electronics and Fashion and
Lifestyle. In Grocery consumption basket, Reliance Retail operates Reliance Fresh Signature,
SMART, Smart Point, Fresh pick, Shree Kannan Departmental and Jayasurya stores focused
on food, fresh produce, bakery, dairy products, home and personal care products, as well as
general merchandise items. In Consumer Electronics consumption basket, Reliance Retail
operates a portfolio of formats that serves customers across value, mid, premium and luxury
segments. Reliance Retail operates Trends, Trends Woman, Trends Man, Trends Footwear,
Avantra by Trends, Reliance Jewels, Hamleys formats and a portfolio of more than 50marquee
international brands such as Armani, Burberry, Diesel, GAS, Marks and Spencer, Superdry,
Brooks Brothers, Steve Madden and more.

Reliance Retail has strong presence in digital commerce channels through AJIO.com, acurated
fashion and lifestyle store bringing bast of national and international brands to customers
doorsteps and Jio mart, India’s largest hyperlocal retail solution that leverages the wide network
of Reliance Retail’s grocery stores and well-established supply chain infrastructure. Reliance
Retail reported a turnover of ₹1,99,704 crore for the financial year 2020-21. As on 31st March
2022, Reliance Retail operates 15,196 stores across 7,000+ cities with a retail area of over 41.6
million sft. Reliance Retail Ventures Limited, a subsidiary of Reliance Industries Limited is
the holding company of Reliance Retail Limited which operates the retail business.

Since its inception in 2006, Reliance Retail has grown to become India’s retailer delivering
superior value to its customers, suppliers and shareholders. Our nationwide network of retail
outlets delivers a world-class shopping environment and unmatched customer experience
powered by state-of-the-art technology and seamless supply-chain infrastructure.
BACKGROUND

Reliance industries limited initially founded by late Dhirubhai H. Ambani, which is one of the
largest private sector company employing thousands of people. The company’s main interest
is in energy and material value chain. Reliance industries have got one uniquefeature, which
is backward vertical integration. Initially starting its business with fabric during late 1970’s.
reliance industries made investments in ventures such as in plastics, fiber intermediaries,
polyester fibers, petroleum refining, petrochemicals and oil and gas exploration and extraction.
Globally the company is the largest producer of polyester yarn and being the producer of
various petrochemical products. RIL made offer of shares in 1977, that is initial public offer
made. The company being biggest producer of polyester yarn and fiber in the world and
enjoying leadership in their business around the world and it is among top ten producers in the
products of petrochemical.

The founder chairperson late Dhirubhai H. Ambani have been credited to bring equity sect in
the country during late 1970’s and have been an icon in the country for various enterprises.
Reliance industries limited is living evidence towards his strong determination, single minded
enthusiasm and remorseless obligation towards his goals.

VISION

Vision of the company is revised every time/keeps changing, as the company’s founder late
Dhirubhai h. Ambani said “Growth has no limits at Reliance. I keep revising my vision. Only
when you can dream it, you can do it”. So, vision of the company is consistently revised and
is aimed for higher and higher goals to be achieved by the company.

MISSION

Establishment of systems f learning for creation of employees with efficient knowledge in

mainly cost-effective approach. employees in turn will reduce operational cost along with
maintaining quality, consistency, safety and security and other policies of the company.

OBJECTIVES

❖ Development of new knowledge, skills, approaches and required competencies

equipped with schemes in order to lead quality presentation, multi-tasking roles and
enhance innovative capability.
❖ In short period of time, to train employees which are new that enables them to take
responsibilities.
 ❖ To make stronger the infrastructure, network of learning and system which are
currently exist.
❖ Establishment of new facilities to promote transfer of knowledge and acquisition.
❖ To identify and fill-up the gaps in new scheme and system developed by
benchmarking the leading organization.
❖ To encourage employees to take part in various fields along with many subsidiaries
and associates. We are going to focus on Reliance Petroleum Limited.
❖ As a whole leadership style, organizational structure and culture are inter-related and
affects each other very closely.

ORGANIZATIONAL STRUCTURE

Organizational structure of the company is multi-divisional structure whereby every project

undertaken by the company is managed by different groups having their own management team
for each project such that within multi-divisional structure there is sub-hierarchical
organizational structure for each project. Existence of teamwork among the members and as
well as in some situation there exit democratic form of decision making. Top management level
makes strategic decision for welfare of the business and lower level implements the decision
made. Given below is the organizational structure of the Reliance Industries Limited.

The company have got combined non-executive and executive directors; the board is composed
of 14 directors including 7 independent directors.
Success and the position attained by reliance industries, itself reflects the leadership provided
by its late initiator, who kept on saying that “Growth has no limit at Reliance. I keep revising
my vision. Only when you can dream it, you can do it”. The leadership is based on creation of
value, especially for consumers and shareholders. The company along with its integration
vertically, of their chain, from refinery to textiles, have got structure which is fully integrated
and produces fabrics from crude oil. The company’s assurance to merit and its hard work to
continuously increase the quality of products, processes and services contributes mainly to its
management in its most important businesses. Use of technique such as TQM (Total Quality
Management) has considerably benefited in getting better output, quality of the product,
consistency, efficiency and effectiveness and involvement of members in the progress of the
business.

Manufacturing unit at Hazira (Surat-India) embarked with Six Sigma during 2001, pleased their
shareholders by creation of an organizational culture of zero defects all the way through
involvement of employees. Shareholders also take part in the processes of identification of
project, evaluating the project and its impact on the businesses. Shareholders are moreanxious
regarding profitability, customer loyalty and growth in volume whereas operational
management located better prominence on recycling of waste and efficiency. Every project has
got team members working together to achieve the stated goals, working as team management
that’s what is called team work. Members of teams are evaluated according to their capacities,
awareness specifically on six sigma, creativity, quality tools and leadership are assessed. Team
members are allocated with responsibilities in accord with their strengths. Members of team
bring vital skills and traits such as leadership, solving of problems, pronouncement making and
team guts to their work.

Belief of the company is that in order to conduct any business, has to be ethical than only it is
possible to achieve success through out and it rest on core values such as integrity, respect,
honesty, fairness, trustworthiness, citizenship, caring, responsibilities and purposefulness.
There is mutual understanding among the team members that they all are equal and one owns
interest is same as of another person. The core of these ethics is that members of team conduct
business of the company with honesty and integrity, in accord with laws and in such a manner
that values of all stakeholders is created. The culture of the company is to work together in
order to accomplish the established goals. working together as team in each project making
full use of their potentiality, efficiency, knowledge, skills and their capabilities. Teamwork for
members stands for “Together Everyone Accomplishes More with Organizational
Responsibilities and Knowledge”.
 SALARY STRUCTURE

DESIGNATION AVERAGE SALARY

Store Manager ₹5,03,540/yr

(0-18 yrs exp) (2.2L/yr - ₹10.1L/yr)

Department Manager ₹3,52,869/yr

(0-15yr exp) (₹2.0L/yr - ₹6.0L/yr)

Sales Officer ₹3,17,333/yr

(0-12 yrs exp) (₹1.4L/yr - ₹5.0L/yr)

Deputy Manager ₹7,85,998/yr

(0-17 yrs exp) (₹3.7L/yr – 16.0L/yr)

Team Lead ₹3,19,612/yr

(0-13 yrs exp) (₹80.0K/yr - ₹8.0L/yr)

Retail Store Manager ₹5,13,391/yr

(0-16 yrs exp) (₹2.5L/yr - ₹9.8L/yr)

 OPERATIONS (PRODUCTS AND SERVICES)

The company’s petrochemical, refining, and oil and gas-related operations form the core ofits
business; other divisions of the company include cloth, retail, telecommunications, and special
economic zone (SEZ) development. In 2012-13, it earned 76% of its revenue from refining,
19% from petrochemicals, 2% from oil and gas and 3% from other segments.

In July 2012, RIL informed that it was going to invest US$1 billion over the next few years in
its new aerospace division which will design, develop and manufacture equipment and
components, including aircraft, engine, radars, avionics and accessories for military andcivilian
aircraft, helicopters, unmanned airborne vehicles, and aerostats.

As of 16 March 2023, the company had 234 subsidiary companies and 11 associate companies.
Although Reliance Retails grocery businesses primarily markets products of thirdparty FMCG
players, they also sell inhouse brands including: Best Farms, Good Life, Enzo, Mopz, Expelz
and Home One.
 SHAREHOLDING

The number of shares of RIL are approximate 644.51 crore (6.44 billion). The promoter group,
the Ambani family, holds 49.11% of the total shares whereas the remaining 50.89% shares are
held by public shareholders, including FII and corporate bodies. Life Insurance Corporation of
India is the largest non-promoter investor in the company, with 7.98% shareholding. In January
2012, the company announced a buyback program to buy a maximum of 12 crore (120 million)
shares for ₹10,400 crore (US$1.5 billion). By the end of January 2013, the company had bought
back 4.62 crore (46.2 million) shares for ₹3,366 crore(US$420 million).

LISTING

• The company’s equity shares are listed on the National Stock Exchange of India
Limited (NSE) and the BSE limited. The Global Depository Receipts GDRs) issued by
the company are listed on London Stock Exchange.
 • It has issued approx. 5.6 crore (56 million) GDRs wherein each GDR is equivalent to
two equity shares of the company. Approximately 3.46% of its total shares are listed on
Luxembourg Stock Exchange.
• Its debt securities are listed at the Wholesale Debt Market (WDM) Segment of the
National Stock Exchange of India Limited (NSE).
• It has received domestic credit ratings of AAA from CRISIL (S&P subsidiary) and
fitch. Moody’s and S&P have provided investment grade ratings for international debt
of the company, as Baa2 positive outlook (local currency issuer rating) and BBB+
outlook respectively.
• On 28 December 2017, RIL announced that it will be acquiring the wireless assets of
Anil Ambani led Reliance Communications for about ₹23,000 crores.

EMPLOYEES

As of 31 March 2018, the company had 29,533 permanent employees of which 1,521 were
women and 70 were employees with disabilities, it also had 1,58,196 temporary employees on
the same date which makes a total of 1,87,729 employees. As per its Sustainability Report for
2011-12, the attrition rate was 7.5%. but currently, the same attrition rate has gone up to 23.4%
in March 2015 as per latest report released by the organization.

In its 39th Annual General Meeting, its chairman announced investment and staffing plans
which would increase staffing in its retail division from existing strength of 35,000 to1,20,000
over 3 years and increase staffing in its Telecom division from 3,000 to 10,000 over 12 months.

FORMER HOLDINGS

In March 2017, Reliance Industries Ltd completed the sale process of its 76% equity stake in
Mauritius based oil retailer Gulf Africa Petroleum Corp (GAPCO) to Total Marketing and
Services, a subsidiary of the French Oil and gas firm Total SE.

The East West Pipeline has been acquired by India Infrastructure Trust, which is owned by
Brookfield Asset Management for a consideration of ₹13,000 crore.
SUBSIDIARIES AND DIVISIONS
There are over 45 subsidiaries and divisions of Reliance Retail. From which some of them are
as follows:

RELIANCE MALL IN DELHI

RELIANCE JEWELS IN ODISHA

RELIANCE SMART BAZAR IN DELHI

RELIANCE DIGITAL IN BANGALORE

FINANCIAL PERFORMANCE

Reliance Retail had a turnover of ₹337 billion in the financial year 2016-17. Reliance Retail
announced revenues of ₹450 billion for the nine months ended December 2017 for financial
year 2017-18, showing over a 90% jump from the corresponding previous period. Thecompany
also reported a profit of ₹7 billion for the period. Reliance Retail revenue from operations
during the quarter was at ₹50,834 crore, up 23.09% as against ₹41,296 crore of the
corresponding period last fiscal. Gross revenue, which includes the value of sales and services,
was up 23.27% to ₹58,017 crore in the three months ended March 2022.

AWARDS AND RECOGNITION

• International Refiner of the Year in 2017 at Global Refining and Petrochemicals

Congress 2017.
• International Refiner of the Year in 2103 at the HART Energy’s 27th World Refining
and Fuel Conference. This is the second time that RIL has received this Award for its
Jamnagar Refinery, the first being in 2005.
• The Brand Trust Report ranked Reliance Industries as the 7th most trusted brand in
India in 2013 and 9th in 2014.
• RIL was certified as Responsible Care Company by the American Chemistry Council
in March 2012.
• RIL was ranked 25th position across the world, on the basis of sales, in the ICIS Top
100 Chemicals Companies list in 2012.
• RIL was awarded the National Golden Peacock Award 2011 for its contribution in the
field of corporate sustainability.
• In 2009, Boston Consulting Group (BCG) named Reliance Industries as the world’s
fifth biggest sustainable value creator in a list of 25 top companies globally in terms of
investors returns over a decade.
• The company was selected as of the world’s 100 best managed companies for the
year 2000 by industry week magazine.
• From 1994 to 1997, the company won National Energy Conservation Award in the
petrochemical sector.
COMPETITORS

• D mart
• Amazon
• Flipkart
• Subhiksha
• Future Group
• Star India Bazaar
• Pantaloons
• Westside
• Lifestyle
• Max
• FBB
• Big basket
• V-Mart
• Adani Enterprises Ltd
• Apar Industries Ltd
• Bombay dyeing & Manufacturing Company Ltd
• 3M India Ltd
• Alembic Ltd
• Aspinwall and Company Ltd
• Balmer Lawrie and Company Ltd
• Oil and Natural Gas Corp Ltd
• Indian Oil Corp Ltd
• Montfort Trading
• Gaubert Oil Company
• CVR Energy
• Gazprom Export
 CHAPTER 4

DATA ANALYSIS AND INTERPRETATION

 1. Are you happy with your job?

Options No. of respondents Percentage

Yes 25 81%

No 25 19%

Total 50 100%

No.of Respondents
Yes No

19%

81%

INTERPRETATION:

From the above table we estimate that, 81% of the employees accept that they are happy with
their jobs and 19% of the employees feel that they are not happy with their jobs.
 2. Which factor is more important to have job satisfaction?

Options No.of Respondents Percentage

Salary 20 61.9%

Management 13 19%

Welfare Benefits 10 4.8%

Working Conditions 7 14.3%

Total 100 100%

No.of Respondents
Salary Management Welfare Benefits Working Conditions

14%

5%

19%
62%

INTERPRETATION:
From the above table we estimate that, 61.9% of the employees accept that salary is more
important to have job satisfaction and 19% of the employees feel that management is important
to have job satisfaction and 14.3% of the employees feel that working conditions are important
for job satisfaction and 4.8% of the employees feel that welfare benefits are important for job
satisfaction.
 3. The salary gives good feelings and personal accomplishment?

Options No.of Respondents Percentage

Strongly Agree 15 38.10%

Agree 10 57.10%

Disagree 13 3.80%

Strongly Disagree 12 1.00%

Total 100 100%

No of Respondents
Strongly Agree Agree Disagree Strongly Disagree

3.80% 1.00%

38.10%

57.10%

INTERPRETATION:

From the above table we estimate that, 38.1% of the employees strongly agree that salary gives
good feeling and personal accomplishment to them, 57.1% of the employees agree that salary
gives good feeling and personal accomplishment to them, 3.8% of the employees disagree that
salary gives good feeling and personal accomplishment and 1% of the employee strongly
disagree that salary give good feeling and personal accomplishment to them.
 4. Salary should be given on the basis of performance of the employee?

Options No.of Respondents Percentage

Strongly Agree 25 57%

Agree 10 20%

Disagree 10 17%

Strongly Disagree 5 6%

Total 50 100%

No.of Respondents
Strongly Agree Agree Disagree Strongly Disagree

6%

17%

57%
20%

INTERPRETATION:
From the above table we estimate that, 57% of the employees strongly agree that salary should
be given on the basis of the performance of the employees, 20% of the employees agree, 17%
of the employees disagree and 6% of the employees strongly disagree that salary should be
given on the basis of the performance of the employees.
 5. Are you getting payment for overtime work?

Options No.of Respondents Percentage

Yes 33 38%

No 12 47.6%

Maybe 5 14.4%

Total 50 100%

No.of Respondents
Yes No May Be

14.4%

38%

47.6%

INTERPRETATION:

From the above table we estimate that, 38% of the employees feels that they are getting paid
for overtime work, 47.6% of the employees feels that they are not getting paid for overtime
work and 14.4% of the employees feels that they may be get paid for overtime work.
 6. Are you satisfied with the salary scheme?

Options No.of Respondents Percentage

Highly Satisfied 30 19%

Satisfied 5 61.9%

Less Satisfied 10 14.3%

Not Satisfied 5 4.8%

Total 50 100%

No.of Respondents
Highly Satisfied Satisfied Less Satisfied Not Satisfied

4.8%
19%
14.3%

61.9%

INTERPRETATION:

From the above table we estimate that, 19% of the employees feel highly satisfied with the
salary scheme, 61.9% of the employees feel satisfied, 14.3% of the employees feel less satisfied
and 4.8% of the employees feel that they are not satisfied with the salary scheme.
 7. Did you receive any other form of earning?

Options No.of Respondents Percentage

Yes 25 52.4%

No 25 47.6%

Total 50 100%

No.of Respondents
Yes No

47.6%

52.4%

INTERPRETATION:

From the above table we estimate that, 52.4% of the employees feel that they receive other
forms of earnings and 47.6% of the employees feel that they don’t receive any other forms of
earnings.
 8. Are you getting salaries on time every month?

Options No.of Respondents Percentage

Yes 35 85.7%

No 15 14.3%

Total 50 100%

No.of Respondents
Yes No

14.3%

85.7%

INTERPRETATION:
From the above table we estimate that, 85.7% of the employees feels that they are getting
salaries on time every month and 14.3% of the employees feels that they are not getting salaries
on time every month.
 9. Whether wages, salaries and increments followed every year?

Options No.of Respondents Percentage

Strongly Agree 15 27.3%

Agree 22 63.6%

Disagree 4 5.1%

Strongly Disagree 10 4%

Total 50 100%

No.of Respondents
Strongly Agree Agree Disagree Strongly Disagree

5.1%
4%

27.3%

63.6%

INTERPRETATION:
From the above table we estimate that, 27.3% of the employees strongly agree that wages,
salaries and increments are followed every year, 63.6% of the employees agree, 5.1% of the
employees disagree and 4% of the employees strongly disagree that wages, salaries and
increments are followed every year.
 10. Are you getting your pay as per the law?

Options No.of Respondents Percentage

yes 35 86.4%

No 15 13.6%

Total 50 100%

No.of Respondents
Yes No

13.6%

86.4%

INTERPRETATION:
From the above table we estimate that, 86.4% of the employees feels that they are getting
paid as per the law and 13.6% of the employees feel that they are not getting paid as per the
law.
 11. Are you getting payment for overtime work?

Options No.of Respondents Percentage

Yes 30 59.1%

No 20 40.9%

Total 50 100%

No.of Respondents
Yes No

40.9%

59.1%

INTERPRETATION:
From the above table we estimate that, 59.1% of the employees feels that they are getting
paid for overtime work and 40.9% of the employees feel that they are not getting paid for
overtime work.
 12. So, employees get financial assistance apart from allowance?

Options No.of Respondents Performance

Yes 30 45.5%

No 10 22.7%

Maybe 10 31.8%

Total 50 100%

No.of Respondents

31.8%

45.5%

22.7%

Yes No May Be

INTERPRETATION:

From the above table we estimate that, 45.5% of the employees feel that they get financial
assistance apart from allowance, 22.7% of the employees feel that they don’t get any financial
assistance apart from allowance and 31.8% of the employees that they may get financial
assistance apart from allowance.
 13. How frequently your wages and salary structure are modified?

Options No.of Respondents Percentage

Yearly 19 59.1%

Half Yearly 15 13.6%

Quarterly 7 13%

More Than 1 Year 9 14.4%

Total 50 100%

No.of Respondents
Yearly Half Yearly Quarterly More Than 1 Year

14.4%

13%

59.1%
13.6%

INTERPRETATION:

From the above table we estimate that, 59.1% of the employees get their salaries and wages
yearly, 13.6% of employees get their half yearly, 13% of the employees get quarterly and 14.4%
of the employees get their wages and salaries for more than 1 year.
 14. What is your opinion in comparing salary / wage with similar industries?

Options No.of Respondents Percentage

Very Good 11 22.7%

Good 31 68.2%

Bad 8 9.1%

Total 50 100%

No.of Respondents
Very Good Good Bad

9.1%

22.7%

68.2%

INTERPRETATION:

From the above table we estimate that, 22.7% of the employees feels that the salaries / wages
are very good as compared to other industries, 68.2% of the employees feel good and 9.1% of
the employees feels that the salaries / wages are bad as compared to other industries.
 15. Compensation commensurate with responsibility to all level of employees?

Options No.of Respondents Percentage

Strongly Agree 13 40.9%

Agree 15 50%

Disagree 12 5%

Strongly Disagree 10 4.1%

Total 50 100%

No.of Respondents
Strongly Agree Agree Disagree Strongly Disagree

4.1%

5%

40.9%

50%

INTERPRETATION:

From the above table we estimate that, 40.9% of the employees strongly agree that the
compensation is commensurate with responsibility to all levels of the employees, 50% of the
employees agree, 5% of the employees disagree and 4.1% of the employees disagree that the
compensation is commensurate with responsibility to all levels of the employees.
 16. Wage and salary structure implemented according to qualification and experience?

Options No.of Respondents Percentage

Strongly Agree 15 35.5%

Agree 25 45.5%

Disagree 5 9.9%

Strongly Disagree 5 9.1%

Total 50 100%

No.of Respondents
Strongly Agree Agree Disagree Strongly Disagree

9.1%

9.9%
35.5%

45.5%

INTERPRETATION:

From the above table we estimate that, 35.5% of the employees strongly agree that the salary
structure is implemented according to qualification and experience, 45.5% of the employees
agree, 9.9% of the employees disagree and 9.1% of the employees strongly disagree that the
salary structure is implemented according to qualification and experience.
 17. Bonus and incentives are they relative to the employee’s contribution?

Options No.of Respondents Percentage

Strongly Agree 15 27.3%

Agree 13 27.3%

Disagree 12 25.4%

Strongly Disagree 10 20%

Total 50 100%

No.of Respondents
Strongly Agree Agree Disagree Strongly Disagree

20%
25.4%

27.3%

27.3%

INTERPRETATION:

From the above table we estimate that, 27.3% of the employees strongly agree that bonus and
incentives are related to the employee’s contribution, 27.3% of the employees agree, 25.4% of
the employees disagree and 20% of the employees strongly disagree that the bonus and
incentives are related to the employee’s contribution.
 18. Does the company change DA as per the changes taking place in the environment?

Options No.of Respondents Percentage

Yes 25 63.6%

No 25 36.4%

Total 50 100%

No.of Respondents
Yes No

36.4%

63.6%

INTERPRETATION:

From the above table we estimate that, 63.6% of the employees feels that the company
change DA as per the changes taking place in the environment and 36.4% of the employees
feel that the company don’t change the DA as per the changes taking place in the environment.
 19. Employees get financial assistance apart from allowance?

Options No.of Respondents Percentage

Yes 25 40.9%

No 15 36.4%

May Be 10 22.7%

Total 50 100%

No.of Respondents
Yes No May Be

22.7%

40.9%

36.4%

INTERPRETATION:

From the above table we estimate that, 40.9% of the employees feels that they get financial
assistance apart from allowance, 36.4% of the employees feel that they don’t get any type of
financial assistance apart from allowance and 22.7% of the employees feel that they may get
financial assistance apart from allowance.
 20. Are you satisfied with the bonus scheme?

Options No.of Respondents Percentage

Yes 25 72.7%

No 25 27.3%

Total 50 100%

No.of Respondents
Yes No

27.3%

73.7%

INTERPRETATION:

From the above table we estimate that, 73.7% of the employees feel that they are satisfied with
the bonus scheme and 27.3% of the employees feel that they are not satisfied with the bonus
scheme.
 CHAPTER – 5

FINDINGS

SUGGESTIONS

CONCLUSION

BIBLIOGRAPHY

ANNEXURE
FINDINGS:
➢ 81% of the employees accept that they are happy withtheir jobs and 19% of the
employees feel that they are not happy with their jobs.
➢ 61.9% of the employees accept that salary is more important to have job satisfaction
and 19% of the employees feel that management is important to have job satisfaction
and 14.3% of the employees feel that working conditions are important for job
satisfaction and 4.8% of the employees feel that welfare benefits are important for job
satisfaction.
➢ 38.1% of the employees strongly agree that salary gives good feeling and personal
accomplishment to them, 57.1% of the employees agree that salary gives good feeling
and personal accomplishment to them, 3.8% of the employees disagree that salary gives
good feeling and personal accomplishment and 1% of the employee strongly disagree
that salary give good feeling and personal accomplishment to them.
➢ 57% of the employees strongly agree that salary should be given on the basis of the
performance of the employees, 20% of the employees agree, 17% of the employees
disagree and 6% of the employees strongly disagree that salary should be given on the
basis of the performance of the employees.
➢ 38% of the employees feels that they are getting paid for overtime work, 47.6% of the
employees feels that they are not getting paid for overtime work and 14.4% of the
employees feels that they may be get paid for overtime work.
➢ 19% of the employees feel highly satisfied with the salary scheme, 61.9% of the
employees feel satisfied, 14.3% of the employees feel less satisfied and 4.8% of the
employees feel that they are not satisfied with the salary scheme.
➢ 52.4% of the employees feel that they receive other forms of earnings and 47.6% of the
employees feel that they don’t receive any other forms of earnings.
➢ 85.7% of the employees feels that they are getting salaries on time every month and
14.3% of the employees feels that they are not getting salaries on time every month.
➢ 27.3% of the employees strongly agree that wages, salaries and increments are
followed every year, 63.6% of the employees agree, 5.1% of the employees disagree
and 4% of the employees strongly disagree that wages, salaries and increments are
followed every year.
➢ 86.4% of the employees feels that they are gettingpaid as per the law and 13.6% of
the employees feel that they are not getting paid as per the law.
➢ 59.1% of the employees feels that they are gettingpaid for overtime work and 40.9%
 of the employees feel that they are not getting paid for overtime work.
➢ 45.5% of the employees feel that they get financial assistance apart from allowance,
22.7% of the employees feel that they don’t get any financial assistance apart from
allowance and 31.8% of the employees that they may get financial assistance apart from
allowance.
➢ 59.1% of the employees get their salaries and wages yearly, 13.6% of employees get
their half yearly, 13% of the employees get quarterly and 14.4% of the employees get
their wages and salaries for more than 1 year.
➢ 22.7% of the employees feels that the salaries / wages are very good as compared to
other industries, 68.2% of the employees feel good and 9.1% ofthe employees feels that
the salaries / wages are bad as compared to other industries.
➢ 40.9% of the employees strongly agree that the compensation is commensurate with
responsibility to all levels of the employees, 50% of the employees agree, 5% of the
employees disagree and 4.1% of the employees disagree that the compensation is
commensurate with responsibility to all levels of the employees.
➢ 35.5% of the employees strongly agree that the salary structure is implemented
according to qualification and experience, 45.5% of the employees agree, 9.9% of the
employees disagree and 9.1% of the employees strongly disagree that the salary
structure is implemented according to qualification and experience.
➢ 27.3% of the employees strongly agree that bonus and incentives are related to the
employee’s contribution, 27.3% of the employees agree, 25.4% of the employees
disagree and 20% of the employees strongly disagree that the bonus and incentives are
related to the employee’s contribution.
➢ 63.6% of the employees feels that the companychange DA as per the changes taking
place in the environment and 36.4% of the employees feel that the company don’t
change the DA as per the changes taking place in the environment.
➢ 40.9% of the employees feels that they get financial assistance apart from allowance,
36.4% of the employees feel that they don’t get any type of financial assistance apart
from allowance and 22.7% of the employees feel that they may get financial assistance
apart from allowance.
➢ 73.7% of the employees feel that they are satisfied with the bonus scheme and 27.3%
of the employees feel that they are not satisfied with the bonus scheme.
SUGGESTIONS:
1. Education level has a significant impact on earning potential.
2. The gender pay gap persists across various industries and occupations.
3. Job experience is often correlated with higher salaries.
4. Different industries offer varying salary ranges and compensation packages.
5. Location plays a role in determining wage levels due to cost-of-living variations.
6. Company size can influence salary levels, with larger companies often offering higher wages.
7. Additional benefits, such as healthcare and retirement plans, contribute to overall compensation.
8. Negotiation skills can impact salary outcomes, with effective negotiators often earning higher
wages.
9. Job satisfaction can be influenced by salary, but it is not solely determined by pay.
10. Skills and certifications can lead to higher salaries in certain industries or professions.
11. Higher levels of education generally lead to higher earning potential in the job market.
12. Wage disparities between different industries can be significant, with some industries offering
higher salaries than others.
13. Factors such as job experience, skills, and certifications can contribute to salary growth and
advancement opportunities.
14. Location can play a role in determining wage levels, with certain areas or regions offering higher
salaries due to cost of living or industry demand.
15. The presence of additional benefits, such as healthcare, retirement plans, or flexible work
arrangements, can enhance overall compensation packages.
16. Wage gaps between different demographic groups, such as gender or ethnicity, continue to be
observed in many industries.
17. Government policies, such as minimum wage laws, can impact wage levels and provide a baseline
for fair compensation.
18. Technological advancements and automation can influence job roles and potentially impact salary
levels in certain sectors.
19. Unionization can lead to higher wages and improved working conditions for employees in certain
industries.
20. Economic factors, such as inflation rates or economic growth, can influence salary trends and wage
negotiations.
CONCLUSION:

Certainly! Here's a concise summary of the key points regarding wages and salaries:
▪ Education level influences earning potential.
▪ Gender pays gap persists across industries.
▪ Job experience correlates with higher salaries.
▪ Different industries offer varying salary ranges.
▪ Location affects wages due to cost-of-living differences.
▪ Company size can impact salary levels.
▪ Additional benefits contribute to overall compensation.
▪ Negotiation skills can lead to higher wages.
▪ Job satisfaction is not solely determined by pay.
▪ Skills and certifications can increase salaries.

Well, based on the information we've discussed about wages and salaries, it's clear that there are
several factors that influence earning potential. Education level, job experience, skills, industry,
location, and additional benefits all play a role in determining salary levels. It's also important to
recognize that wage disparities exist, such as the gender pay gap and differences between demographic
groups. Government policies, technological advancements, and economic factors can further impact
wages. Overall, it's a complex topic with many variables at play. It's essential to continue studying and
advocating for fair and equitable compensation in the workforce.
BIBLIOGRAPHY:
WEBSITES:
https://www.google.com/
https://www.wikipedia.org/
https://www.neerajbooks.com
https://reliance.com/
https://www.shiftbase.com/
https://study.com/
https://relianceretail.com/
https://timesofindia.indiatimes.com/
https://www.yourarticlelibrary.com/
https://workforce.com/

ANNEXURE

QUESTIONNAIRE:

“A DETAIL STUDY ON WAGES AND SALARY”

PERSONAL INFORMATION:

NAME OF THE EMPLOYEE:

AGE:
GENDER:
EDUCATION:
MARITAL STATUS:
DESIGNATION:
DEPARTMENT:

(PLEASE TICK THE APPROPRIATE OPTION)

Q1. Are you happy with your job?

a. Yes
b. No

Q2. Which factor is more important to have job satisfaction?

a. Salary
b. Management
c. Welfare benefits
d. Working conditions

Q3. The salary gives good feelings and personal accomplishment?

a. Strongly agree
b. Agree
c. Disagree
d. Strongly disagree

Q4. Salary should be given on the basis of performance of the employee?

a. Strongly agree
b. Agree
c. Disagree
d. Strongly disagree

Q5. Are you getting payment for overtime work?

a. Yes
b. No
c. Maybe

Q6. Are you satisfied with the salary scheme?

a. Highly satisfied
b. Satisfied
c. Less satisfied
d. Not satisfied

Q7. Did you receive any other form of earning?

a. Yes
b. No

Q8. Are you getting salaries on time every month?

a. Yes
b. No

Q9. Whether wages, salaries and increments followed every year?

a. Strongly agree
 b. Agree
c. Disagree
d. Strongly disagree

Q10. Are you getting your pay as per the law?

a. Yes
b. No

Q11. Are you getting payment for overtime work?

a. Yes
b. No

Q12. So, employees get financial assistance apart from allowance?

a. Yes
b. No
c. Maybe

Q13. How frequently your wages and salary structure is modified?

a. Yearly
b. Half yearly
c. Quarterly
d. More than 1 year

Q14. What is your opinion in comparing salary/ wage with similar industries?

a. Very good
b. Good
c. Bad

Q15. Compensation commensurate with responsibility to all level of employees?

a. Strongly agree
b. Agree
c. Disagree
d. Strongly disagree

Q16. Wage and salary structure implemented according to qualification and experience?

a. Strongly agree
b. Agree
c. Disagree
d. Strongly disagree

Q17. Bonus and incentives are they relative to the employee’s contribution?
 a. Strongly agree
b. Agree
c. Disagree
d. Strongly disagree

Q18. Does the company change DA as per the changes taking place in the environment?

a. Yes
b. No

Q19. Employees get financial assistance apart from allowance?

a. Yes
b. No
c. Maybe

Q20. Are you satisfied with the bonus scheme?

a. Yes
b. No