A PROJECT REPORT ON REMUNERATION SYSTEM IN NAYAGARH SUGAR COMPLEX LIMITED

A SUMMER INTERNSHIP TRAINING PROJECT REPORT SUMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENT FOR THE AWARD OF MASTER OF BUSINESS ADMISTRATION TO BIJUPATNAIK UNIVERSITY OF TECHNOLOGY ROURKELA
SUBMITTED BY

BULU DAS REGD.NO-1006305004

UNDER THE GUIDANCE OF

MRS. MADHUMITA PANDA (FACULTY OF HRM, KIT, BERHAMPUR)

KALAM INSTITUTE OF TECHNOLOGY

GOVINDBIHAR, GOVIND0PUR, BERHAMPUR (GM) 2010-12

Factory site: At-Panipoila, Po-Balugaon, Dist- Nayagarh -752070, Orissa, India, Ph - 06753-254257, 0674 - 2335282, 2335285, Fax No 06753 - 254276. Ref.No NSCL/Admn/002 Date: 04.09.2011

TO WHOM SO EVER IT MAY CONCERN

This is to certify Mr. Bulu Das, a student of MBA in Kalama Institute of Technology, Berhampur, bearing Regd. No- 1006305004 has done his summer internship project entitled REMUNERATION SYSTEM IN NAYAGARH SUGAR COMPLEX LIMITED in our factory for a period of four weeks from Aug 5th to Sep 4th. He has taken all pains to evaluate and to provide a best report on the subject. He is very sincere his subject and we wish him all the best for his future.

Manoranjan Mahanty Manager Admnd PNL, Nayagarh Sugar Complex Ltd.

Admn. Office: 448. IDCO Tower 2000 Mancheswar Industrial Estate Bhubaneswar-751010, Orissa, INDIA, Telefax: 0674-2586823 / 2583573 E-mail: bbsr@ecp-infotech.com

Corporate Office: 611/612, Raheja Arade, Sector-11 C.B.D Belapur, Navi, Mumbai 400 614, INDIA Tel No: 91-11-27570236/27570060. E-mail : Mumbai@ccp-industris.com

Declaration
I, Bulu Das bearing Regd.No 1006305004 of BPUT, hereby declare that the facts and findings presented in the Summer Internship Training Project report s entitled as REMUNERASATION SYSTEM IN NAYAGARH SUGAR COMPLEX LIMITED is represent by me. This report submitted to the BPUT is an original work of mine. I further declare that this work has not submitted to any other university or published by any magazine or journals and it is purely based on my research study. All the data and analytical statements being stated in the project what are submitted by me can be accepted as full authentic and fully authentic and genuine.

PLACE: BERHAMPUR DATE :

Signature

PREFACE

Selection of the topic:Remuneration is a HRM activity that encourages both employees and employer to their everyday activities, because without better remuneration system no organization survives long time. So, the top level management of every organization is careful for the remuneration system of his or her organization. Because remuneration direct influence the production process of an organization. According to the economic boom and the issue of LPG both employees and employer got his salary, wages and others financial and non financial benefits. During my post graduate study at KIT Berhampur, I read certain interesting HRM paper in my MBA course. Master of Business Administration means generally deep knowledge about business. Business means activities of money, because it the main aspect for every organization. An organization spent 70% to 80% money in his production process (raw material) it may be products or service, but only 20% spent other activities. But without proper arrangement of 20% assets the 80% assets are wasted. So my initial objective is to proper utilization of resources and it is possible only proper employees and employer remuneration system of an organization. In the impact of LPG and economic boom number of job opportunity are there, so an employees and employer can change his or her organization. The better remuneration activities influence both employees and employer his post or working place long time.

ACKNOWLEDGEMENT
I take this opportunity to express my feelings and gratitude to those person of eminence whose help enable me to complete this work. First of all I would like to express my deep sense of gratitude to my project Guide Mrs. Madhumita Panda, (Faculty HRM, MBA)KIT, Berhampur and my company Guide Mr. Manoranjana Mahanti, A&P Nayagarh sugar complex limited, for having been a constant source of encouragement and also for his valuable guidance in each and every aspect of this project. I would also thankful to Dr. Prof, Tarini Charan Tripathy, Principal KIT, Berhampur for encouraging me to completed this project report. I am indebted to our H.O.D, Prof, Dr.Umesh Chandra Panigrahi sand all the faculties of our department for his valuable suggestions in this regard. I extend my sincere thanks to all the employees and employer of Nayagarh Sugar Complex Limited, Nayagarh. I accord my sincere thanks to the Library staff of KIT, Berhampur for their co-operation for my research. Then I convey my gratitude to my parents and seniors, classmate for their encouragement and inspirations, co-operation.

Signature

CONTENTS

CHAPTER CHAPTER:1

CHAPTER:2

CHAPTER:3 CHAPTER:4

SUBJECT 1.Introduction 2.Concept of the study 3.Important of the study 4.Objective of the study 5.Review of literature 6.Hypothesis of the study 7.Research methodology 8.Limitation of the study 1.Profile of the organization 2.History of the organization 3.Registration no. of the organization 4.Mission of the organization 5.Vision of the organization 6.Objective of the organization 7.Products 8.Organization structure 9.Sterngth and weakness of the organization 1.Introduction to the concept of the study 2.Concept analysis Epilogue, Data analysis and finding 1.Conclusion 2.Suggesation 3.Bibliography

PAGE

CHAPTER-I

REMUNERATION SYSTEM

INTRODUCTION
Remuneration is the compensation an employee receives in the return for his or her contribution to the organization. Remuneration occupies an important place in the life of an employee. His of her standard of living, status in the society, motivation, loyalty, and d productivity depend upon the remuneration he or she receives. For the employer too, employee remuneration is significant because of its contribution to the cost of production. Compensation is a systematic approach to providing monetary value to employees in exchange for work performed. Compensation may achieve several purposes assisting in recruitment, job performance, and job satisfaction.

To attract, retain and motivate the best employees, a remuneration and reward strategy must be flexible enough to meet the rapidly-changing demands of an organization, while still meeting current and future organizational needs.

Remuneration is the pay or compensation that one receives for a service. In terms of a standard job, remuneration is typically the wage or salary, but also includes tips or bonuses. While a person might consider any perks of a job (in addition to pay) as remuneration, the best way to think of it is in terms of whatever compensation you receive for a service that the government will tax.

Remuneration is the reward for the services offered and can be salary, commission, and bonus, share in profit etc. it includes perquisite in the form of cars, house, servants, driver etc.

CONCEPT OF THE STUDY

Compensation is a tool used by management for a variety of purposes to further the existence of the company. Compensation may be adjusted according the business needs, goals, and available resources. Compensation may be used to:

Recruit and retain qualified employees. Increase or maintain morale/satisfaction. Reward and encourage peak performance. Achieve internal and external equity. Reduce turnover and encourage company loyalty. Modify (through negotiations) practices of unions.

Recruitment and retention of qualified employees is a common goal shared by many employers. To some extent, the availability and cost of qualified applicants for open positions is determined by market factors beyond the control of the employer. While an employer may set compensation levels for new hires and advertise those salary ranges, it does so in the context of other employers seeking to hire from the same applicant pool. Morale and job satisfaction are affected by compensation. Often there is a balance (equity) that must be reached between the monetary value the employer is willing to pay and the sentiments of worth felt be the employee. In an attempt to save money, employers may opt to freeze salaries or salary levels at the expense of satisfaction and morale. Conversely, an employer wishing to reduce employee turnover may seek to increase salaries and salary levels. Compensation may also be used as a reward for exceptional job performance. Examples of such plans include: bonuses, commissions, stock, and profit sharing, gain sharing.
The remuneration system is one of the essential aspects in the strategy of the banks and not only because it is one of the biggest costs of it. In order for the workers and bank to achieve the desired goals, the first ones must receive a fair remuneration from the last ones, in spite of the subjective this can be. If the worker is paid very little he will lose motivation and won't carry out his/her obligations; if he is paid very much, inflation can appear, illness of many enterprises. Remuneration programs have an enormous impact in the hardness of the competition in a country, as they affect with no doubt the performance of people at work. Therefore the

remuneration system must be integrated in the strategy of the management, as it has a direct influence on the individual behavior and it can help to achieve the main goals of the institution. Is an ancient problem that matters the individuals, the institution employer, and even the society: besides, each of these parts has their own objectives. In addition to those affected elements, Government and worker unions must be mentioned because they have a great influence on the receiving salaries. Worker unions try to get higher remuneration and bigger safe in the employment, although it can seem contradictory. The bank must find a balance between these increases in costs, and the growth in productivity, because otherwise the scaring inflation could appear. On the long term, the increase in salaries shouldn't be a decision taken just by the Company, Government or Unions, but it should just depend on the competitive capacity of the companies in the markets.

Focus
In this paper I will try to explain what right knows the trends according to the payments of the employees in the Spanish banking. First of all, I will begin to explain in some paragraphs what are the main necessities of the employees inside the organization, as well as outside it, because the bank as the provider of the quality of their lives must consider which are their preferences, and therefore, try to fulfill their requirements. Afterwards, I will continue by explaining what does the concept of total remuneration mean, and why the concept of the monetary payment as the only way to remunerate the employees is old fashioned. I will try to explain as well which are the normal preferences among the employees of the Spanish banking and therefore, what can the managers do to. I have tried to make a summary of every piece of information I found, so that I would speak about every aspect of the remuneration in Spain. Among the data founded, obviously I had to omit writing it in the report, but I think the most important information is included in it. Motivation of money. Although it is said that usually money is the main mechanism to compensate and modify the behavior at work, it is very little known about the way it works. People that think that money does not motivate, value the money because of the goods and services that can be purchased with it as well as the personal self-respect. The ones that think it is a motivator make a difference between the goods and services that can be acquired and the selfrespect. Experts say that monetary rewards motivate employees just to a certain point, but furthermore, another kind of motivation is needed. It shouldn't be forgotten that money is an important part of any motivation program, and it can provide the capacity to acquire goods and services with great importance in the quality of life. But the attitude at work depends on other factors, not necessarily monetary. Several studies say several principles about the decisions that can be taken by employees about their job and their salary and they insist on the possibility to carry them out in most of the cases. A person with a sufficient rent, receiving little percentage increases, will tend to change his/her work or to work harder, to either improve his/her results or quit working and be a lazy person.

Once passed the previous necessity level, is necessary a monetary incentive allowing to improve the quality of life. With a similar increase, we have seen that they tend to change the bank he/she they are working in, and from then on, they will need more and more to feel motivated. Banks paying higher salaries recruit much more easily the best employees. To achieve that goal it is enough with annual increases of 2 or 3 percent, if the other conditions remain the same. It is not true that banks paying highest salaries are the most competitive. On the other hand it is really true that money is a great motivator when the employee thinks that his remuneration really reflects his efforts and performance at work. Money will have a negative effect if the worker thinks that the salary given is not fair, either if it is higher or smaller than the level of accomplishment carried out by him/her. There must be an equilibrium between the level of satisfaction of intrinsic and extrinsic necessities; an excess of money wouldn't compensate, for example, the lack of recognition by higher parts of the hierarchy nor even a very unpleasant work. Money has two main reasons to be a way to remunerate: One is because of the payment of the given services in the past (justice) and the other one has a relation with the stimulation of services to be given in the future (motivation).

Concept of total remuneration.

The total remuneration of an individual is very important for several reasons; it is a large cost, that in some cases can be half of the operational costs, and it is a motivation factor for employees. From the point of view of them, total remuneration determines the level of life and activities that the workers can have outside work. To achieve motivation of personnel it is necessary that the banks knows ambitions, and desires of individuals, and that these last ones understand the objectives of the company. Total remuneration concept includes every component perceptible by an individual, and it will be the combination of these five:

Annual cash fix retribution: Gross annual amount guaranteed received in cash. Annual cash variable remuneration: Amount received by the employee like little increases depending on his/her performance. Incentives on the medium/long term: Remuneration received lately or in a longer period than a year. Payment in kind. Non-salary benefits

CONCEPT OF WAGES:
While evolving, wage policy, three concepts of wages, namely, (i) minimum wages,(ii) fair wages and (iii) living wages are generally considered. These are broadly

based on the needs of the workers, capacity of the employee to pay, and the general economic conditions prevailing in a country. (i) Minimum wage providing for sustenance of life plus for preservation of the efficiency of worker. (ii) Fair wage equal to the rate prevailing in the same trade and in the neighborhood, or equal to the predominant rate for similar work throughout the country. (iii) Living wages higher than fair wage, provides for bare essentials plus frugal comforts. REMUNERATION SPECIAL GRUPS Special groups such as professionals, teams ,contract employees, expatriates, and executives pose unique challenges to HR managers so far as their remuneration is concerned. The following section throws light on these unique groups. (i) (ii) (iii) (iv) Team based pay Remunerating professionals Contract employees Expatriates and Executives

DIFFERENT TYPES OF COMPENSATION INCLUDE:

Base Pay Commissions Overtime Pay Bonuses, Profit Sharing, Merit Pay Stock Options Travel/Meal/Housing Allowance Benefits including: dental, insurance, medical, vacation, leaves, retirement, taxes...

IMPORTANT OF THE STUD Performance-based Remuneration Systems are increasingly being implemented by Small and Medium Enterprises (SMEs) to remain competitive. One of the ways to ensure that an SME maintains its competitive edge is to make sure that any increase in remuneration is supported by improved performance. NSCL is a small industry, so the role of employees and employer remuneration system take a vital role in this study. Because without a better remuneration system an enterprise can not survive long time. It is also a seasonal industry so the remuneration system role important here, because as a student of HRM one should known the remuneration system in all industries pay system so we choose this topic in my SIP work. These economies support the growth of SMEs within their economies. Various plans and policies ensure that SMEs are on the same growth path as other industries in the economy because they comprise more than 90% of business establishments in these economies. In all the economies discussed, performance-based remuneration systems were developed by the economies themselves. Prior to this, the systems used include:

 Balance Scorecard Management by objective Key Performance Indicators Benchmarks High Performance Work Systems Excellence Models and Performance evaluation based on set objectives and targets The fixed component and the variable component constitute the two elements in SMEs. The fixed component comprises the basic wage or remuneration while the variable component or performance element is linked to productivity improvement, profitability, or determined through specific performance measures.

Importance of Performance-Based Remuneration Systems

The study of individual firms shows vast improvements have occurred. Some firms recorded an increase in profits two-fold within two to three years. Productivity improvements were more than double over a three year period. Other areas that impacted the implementation of performance-based systems included expansion of sales, reduction in sales costs through creative and innovative means, increased motivation, and improved staff morale through a sense of commitment and dedication. Pay for performance became an acceptable normal practice. In addition, multi-tasking to reduce unwarranted recruitment of staff was initiated. The positive impact of implementing performance-based remuneration systems revealed the shared cooperation employers and employees. Through this system feelings of ownership and responsibility were acquired and rewards were real and reflective of performance. Thus each individual found ways to support and contribute to improvement, ultimately leading to better quality for all. OBJECTIVE OF THE STUDY

The main objective of this study to find out the remuneration system of a seasonal organization and its impact on both employees as well as employer. The objective of the remuneration policy is to attract, motivate and retain qualied members of the Board of Management of the highest caliber, with an international mindset and background essential to the successful leadership and effective management of a large global company. The members of the Board of Management are rewarded accordingly; an important part of their remuneration is based on performance of the company. The remuneration structure for the Board of Management is therefore designed to balance short term operational performance with the long term objectives of the company and value creation for its shareholders.
The total remuneration system depend on the performance appraisal the employees. The main objective of the management find out and evaluating the performance of employees proper way because it total dependent on the productivity activities of the organization. The are two types, telling the employee where he stands and using the data for personnel decisions concerning pay, promotion, etc. the development objectives focus on finding individual and organizational strengths and weaknesses, developing healthy superior subordinate relations and offering appropriate counseling coaching to the employee with a view to develop his potential in future.

REMUNERATION OF THE EMPLOYEES SERVES SEVERAL SEFUL PURPOSES.

a) Compensation Decision: It can serve as a basis for pay raises. Managers need performance appraisal to identify employees who are performing at or above expected levels. This approach to compensation is at the heart of the idea that raises should be given for merit rather than for seniority. Under merit systems, employees receive based on performance.

b) Promotion Decision: it can serve as a useful basis for fob change of promotion. When merit is the basis for reward, the person doing the best job receives the promotion. If relevant work aspects are measured properly, it helps in minimizing feeling of frustration of those who are not promoted. c) Training and development programs: it can serve as guide for formulating a suitable training a development program. Performance appraisal can inform employees about their progress and tell them what skills they need to develop to become eligible for pay raises of promotions or both.

d) Feedback: Performance appraisal enables the employee to know how well he is doing 0on the job. It tells him what the can do to improve his present performance and go up the organizational ladder. e) Personal Development: Performance appraisal can help reveal the causes of good and poor employee performance. Though discussions with individual employees a line manager can find out why they perform as they do and what steps can be initiated to improve their performance. ADMISISTRATIVE OBJECTIVE: i) PROMOTION: This is perhaps the most important administrative use of performance appraisal. It is to common interests of both the management and employees to promise employees into positions where they can most effectively utilities their abilities. A properly developed and administered performance appraisal system can aid in determining whether individuals should be considered for promotions.

ii) TRANSFERS: In an organization, it may be necessary to consider various types of personnel actions such as transfers, lay offs, demotions and discharges . in some cases, such actions are called for because it may be called for due to economic conditions over which the organization has no control because of charges in production process.

iii) WAGE AND SALARY ADMINISTRATION: In some cases, the wage increases are based on the performance appraisal reports. In some cases, appraisal and seniority are used in combination.

iv) TRAINING AND DEVELOPMENT: Performance appraisal can help in spotting the talented employees so as to train and develop them to create and inventory of executive skill. It can also provide the areas where the employees of executives could be further trained and positioned to meet retirement and explanation situation. v) PERSONAL RESEARCH: Performance appraisal helps in research in the fields of personnel management. Various theories in human relationship between the personal and their performance and it direct influence the remuneration system of organization.

vi) SELF IMPROVEMENT: The performance appraisal brings out the deficiencies and shortcornings of the employees. A discussion between the boss and the subordinates conducted is a spirit of cooperation and mutual understanding gives the chance to employee to have an insight on his performance in the general step up of the organization . the way these discussions are conducts gives chances to the employees to take suitable steps to improve upon their performance or to correct their short comings. Performance rating answers the questions of employee like how am I doing? And where do I stand?
So performance appraisal method is the key element to decide the employee remuneration system for an organization. According to the performance appraisal the management takes remuneration distribution decision.

REMUNERATION ELEMENTS AND MARKET ALIGNMENT The remuneration for members of our Board of Management consists of three elements: 1. Fixed base salary. 2. Variable compensation, linked to performance, consisting of: a. short term incentive component, and b. a long term incentive component. 3. Pension arrangements

VARIABLE COMPENSATION
We consider variable compensation to be an important part of the remuneration package for the members of the Board of Management. Therefore, a substantial part of the total direct compensation of the members of the Board of Management consists of variable compensation on performance. The bonus targets and performance conditions reect the key drivers for value creation and medium to long term growth in shareholder value, as well as drivers for the realization of our mission-related goals. The challenge for the Board of Management is to achieve sustainable performance for both the short term and the long term.

Short term incentive: cash bonus

The short term incentive scheme for the members of the Board of Management reects the accountability for our annual budgets and our mission by rewarding both nancial and nonnancial performance as required for sustainable results.

Targets

Financial targets: o economic profit, o earnings, and o revenue growth.

Non-financial targets: o exceeding customers expectations: continued improvements in our relations with customers, which are measured through customer satisfaction surveys and by assessing the relationship with our customers in person, o instilling pride in our people: continuous improvement in engaging our staff, which is measured through employee engagement surveys, and o sharing responsibility for our world implementing the agreed Social Responsibility standards: making a difference to our environment. This can be accounted for by our global initiatives to reduce the emission of CO2 and our involvement with the United Nations World Food Programmed.

The Supervisory Board will designate specic projects and initiatives to each member of the Board of Management for which the individual member will be personally responsible.

All targets are measured separately. The realization of each target can result independently in bonus payments. The bonus for non-nancial performance does not have a sliding scale. The Supervisory Board allocates the non-nancial bonus based on the achievement of individual targets of the Board of Management and determines the associated pay-out.

Research methodology :Method is any systematic study of principles that guide the scientific investigations. In this method the study of attitude of the employee and employers are made for effectiveness of the techniques used in the performance rating. The data are collected from both the primary sources and secondary sources. Primary data were collected directly from management officials and employees. The structured questionnaire method and interview were followed it collect the data. The secondary data were collected indirectly from published booklet, leaflet, records, bulletins, different reports , annual survey booklets of ppt , etc. a progressive random sampling method was used to collect the data and analysis was done on percentages basis.

SOURCES OF DATA:Two types of data collected methods were adopted i) ii) primary sources of data and secondary data

Primary data:Primary data was collected through the open end and close. The primary data refers to the data collected through the questionnaire method and formal interview and direct interact with the customer.

They were chiefly in written form and they provide much information about the incorporation of the company, its manpower personal policies HRD activities share capital financial status, information about generating units etc of the organization.

Secondary data:Secondary data are those already collected by some one or any other ways like internet, annual report, library, journal, magazine etc. This types of data are collection are take less time, so many researcher choose it, it also easy and financial less from primary data collection process. In this research I use both data collection process, because without one we cannot collect all the data. So when a researcher go to find any type fact or research obviously he or she use both process.

Limitation of the study:The main limitation is lack of time to prepare a big project in a short period of time, because a project work is not a easy task and it take long time to prepare a good project, because time is the main aspect for every research. Another problem is seasonal problem because now the season of rain so obviously it direct impact to the project work. Because the researcher not always study inside the company some time some activities happen out side the organization.

CHAPTER- II

A BRIEF STUDY ON NAYAGARH SUGAR COMPLEX LIMETED

Introduction
NAYAAGARH SUGAR COMPLEX LTD. is one of the fastest growing Sugar Industries in the Eastern Part of India. The Plant is located at Nayagarh which is 90 minutes drive from the State Capital of Orissa i.e. Bhubaneswar. Currently the Company is crushing 1500 tones of sugar cane per day.

NAYAAGARH SUGAR is a very Big FAMILY of more than 10,500 family members comprising 10000 farmers, 500 employees and many more. Nayagarh Sugar plans to be an integrated

manufacturing company with strategic focus on Sugar and its allied products in Power and Ethanol. The Company's registered office is in Bhubaneswar, Orissa and Corporate Office is at Mumbai. Nayagarh Sugar Complex Ltd was incorporated on 20th June 2004 after it acquired a 4 years closed 1250 TCD unit from the the Government of Orissa. Subsequently plant capacity was increased to 1500 TCD with a parallel development in the

Agricultural side looking to achieve both horizontal and vertical growth.

LOCATION OF NSCL:

1) 90 minutes drive from the nearest airport. (Bhubaneswar)

2) 60 minutes drive from the nearest railway station. (Khurda Junction)

3) 10 minutes from the nearest Bus Stand. (Nayagarh)

4) a. 120 km. from the nearest port. (Gopalpur)

b. 220 km. from Paradip Port. C. 400 km. from Vishakhapattanam Port.

HISTORY OF THE ORGANIZATION

A sugar industry under co-operative banner in the name and style of nayagarh cooperative sugar industry limited was commissioned in 1988 at nayagarh district. The commercial production of the sugar mill wait for two years and subsequently due to mounting losses the mill was closed in 1991. After that the sugar mill was Handel over the M/S DHARANI SUGAR & CHAMICAL limited a reputed TAMILINADU based company, who operated under the management contract from 1991 to 1998. Due to various reasons company abandoned the project in 1998. Due to public demand and potential strength of sugar growing area, the government during the period from 2000 to 2004 honble chief minister of orissa wanted to revive the sugar mill under private entrepreneurship. At last under disinvestment scheme of government of orissa M/S ECP group of industry a large business house of orissa having provision track record in industry and business take over the sugar mill by signing the sales and purchase agreement on 20.06.2004 and modified by 24.11.2004 the sugar mill now is functioning in the name and style of nayagarh sugar complex limited (NSCL) and commenced its crossing operation immediately after the take over 27.nov.2004.

REGISTRATION NO OF THE ORGANIZATION:The bearing Regd No of this organization is NG 28/2004.

Mission, Vision and Objective of the organization

Nayagarh Sugar Complex Ltd plans to manufacture good quality Sugar, also diversify to Power, Ethanol & Bio-Fertilizer plant. With an able management and robust vision, Nayagarh Sugar will be the leader in the filed of sugar, create an organization that all our associates will be proud of , set benchmarks that will become the standard for others to emulate and through ethical business practices create wealth for our stakeholders. The company is working on organic and inorganic opportunities to strengthen its growth prospects. Our mission to transform Nayagarh Sugar Complex Ltd. into a dynamic and vibrant business entity where growth is an ethos and the long-term value creation for our stakeholders is the paramount objective.

Products of the organization:The main product of NSCL is sugar. Expect sugar some other products are produce by NSCL. Here briefly discuss about other products
Plantation White sugar This sugar is sparkling white, pure, manufactured without any toxic chemicals from the fresh canes. At Nayagarh Sugar we producing M-30 and S-30 sugar as per standard fixed by government of India.

By Products
Molasses: Molasses is the only by-product obtained in the preparation of sugar through repeated crystallization. Molasses is mainly used for the manufacture of alcohol, yeast and cattle feed. Alcohol in turn is used to produce ethanol, rectified spirit, potable liquor and downstream value added chemicals such as acetone, acetic acid, butane, acetic anhydride, MEG etc. Biogases: Biogases are a fibrous residue of cane stalk that is obtained after crushing and extraction of juice. It consists of water, fiber and relatively small quantities of soluble solids. The composition of biogases varies based on the variety of sugarcane, maturity of cane, method of harvesting and the efficiency of the sugar mill. Biogases are usually

used as a combustible in furnaces to produce steam, which in turn is used for power generation. It

is also used as a raw material for production of paper and as feedstock for cattle. By making use of biogases sugar mills have been successful in reducing depends on State Electric Boards, for their power supply as it can procure up to 90-95% of its total power requirement through captive generation from steam turbines. Fly Ash: Fly Ash is the residual output from the boiler furnace after biogases has completely burnt out. This fly can be used as a raw material for brick manufacturing. Press Mud: Press mud, also known as olive cake or press cake, is the residual output after the filtration of the juice. It is mixed with spent wash from the distillery and cultivated to produce high quality bio-manure.

1. Sugar cane, is broadly classified into three varieties early, mid and late. Cane is
sowed during October to March every year. The first seed growth is known as the plant and subsequent growth after harvesting from the stem is known as Raton. The early variety has more sugar content than the general variety.

2. Every farmer within the command area of the Mill is provided with a calendar,
which tells him when he can expect a Mill Supply Ticket (cutting order), against which he will deliver the sugarcane.

3. He then harvests the cane and transports it either in a bullock cart , tractor ,
trolley or truck to the mill.

4. Cane is weighed and unloaded into cane carriers. It is then prepared for milling.
Sugarcane juice is then extracted by pressing the prepared cane through mills. Extracted juice mixed with water is weighed and sent to the boiling house for further processing. Residual biogases are sent to boilers for use as fuel for steam generation.

5.

Sugarcane, is broadly classified into three varieties early, mid and late. Cane is sowed during October to March every year. The first seed growth is known as the plant and subsequent growth after harvesting from the stem is known as Raton. The early variety has more sugar content than the general variety.

6. Every farmer within the command area of the Mill is provided with a calendar,
which tells him when he can expect a Mill Supply Ticket (cutting order), against which he will deliver the sugarcane.

7. He then harvests the cane and transports it either in a bullock cart , tractor ,
trolley or truck to the mill.

8. Cane is weighed and unloaded into cane carriers. It is then prepared for milling.
Sugarcane juice is then extracted by pressing the prepared cane through mills.

9. Extracted juice mixed with water is weighed and sent to the boiling house for
further processing. Residual biogases is sent to boilers for use as fuel for steam generation

10. This juice is heated and then treated with milk of lime and sculpture dioxide.
The treated juice is then further heated and sent to clarifiers for continuous settling. The settled mud is filtered by vacuum filters and filtered juice is returned to be further processed while the Oliver cake is sent out.

11. The clear juice is evaporated to a syrup stage, bleached by sculpture dioxide
and then sent to vacuum pans for further concentration and sugar grain formation. Crystals are developed to a desired size and the crystallized mass is then dropped in the crystallizers to exhaust the mother liquor of its sugar as much as possible. This is then centrifuged for separating the crystals from molasses. The molasses is re-boiled for further crystallization

12. Thus, the original syrup is disguised progressively (normally three times) till
finally, a viscous liquid is obtained from which sugar can no longer be recovered economically. This liquid, which is called final molasses, is sent to the distillery for making alcohol.

13. The sugar thus is separated from molasses in the centrifuge is dried, bagged
(50 Kg and 100 Kg), weighed and sent to storage houses. Sugar is made in different sizes and accordingly classified into various grades i.e. large, medium and small.

Technology :The plant and machinery at Nayagarh Co-operative Sugar Industries was supplied by M/s. An and Tanks & Vessels. The specifications of the equipment confirm to standard specification laid down by Govt. of India in 1972 - 73. Major equipment like Mills, Boilers and Centrifugal machines are supplied by M/S. WALCHAND NAGAR INDUSTRIES, PUNE and Turbines by M/S. TRIVENI ENGINEERING WORKS, pumps by M/s. Kirolskar Industries. At no Time during the period of operations between 1988 to 1999 the equipment was subjected to any performance trial, whether the plant and machinery can crush 1250 tons of cane per day. While most of the blame is shifted to non-availability of cane, even the meager amounts crushed, was not to the rated capacity. During the entire years

of operation, only on one day the plant is recorded to have crushed 1160 tons. A 1250 ton plant can become viable if it can crush 1.85 lakhs tons of Sugarcane in a season, achieving a sugar recovery % of 9.5% and above. Infact in the present day context, the plant and machinery should crush 2.25 lakhs tons of cane in 180 days to become viable.

ORGANIZATION STRUCTURE:
Organization is a set of people working together to achieve a common goal. The organization process in the forming of structure interpersonal relationship. The organization process is the forming of structural interpersonal relationship the organization is a mechanism, with which a management directs so, co-ordinates and controls the activities of employees. The organization of NSCL contains a Board of Directors of eminent well experienced persons as directors and headed by a visionary Chairman, Mr. Trailokya Mishra, and Sri Sabyasachi Mishra the yours Director is in charge of Deputy Managing Director who is a dynamic youth and whose guidance the plant is marched ahead to teach the new horizon so far as sugar production productivity is concerned. Each department of NSCL is leaded by able HODS who are working and the direct supervision of director Sri Manoranjan Mishra whose dedication to words the plant. Mr.S.K.Acharya, V.P. (o) is a known name in sugar industry A poor organization may lead to duplicity of work, lack of co-ordination, loose administration and in effective delegation. But a good will definitely avoid all these defects and positively contribute to the efficiency of administration. We may say that an organization is a combination of human beings with defined duties and responsibilities who are brought together to accomplish some desired objects. NAYAGARH SUGAR COMPLEX LIMITED has a well developed and systematic organizational structure. We can show the organizational structure and chart below. The management committee come under the control of chairman and is answerable to the chairman of sugar industry. Vigilance officer function directly under s the A&P is answerable to the Chairman and acts as chairman in his absence.

CHAPTER- III

REMUNERATION SYSTEM IN NAYAGARH SUGAR COMPLEX LIMITED

Introduction to the concept of study:REMUNERATION SYSTEM OF NAYAGARH SUGAR COMPLEX LIMITED

Remuneration system is an essential and is an escapable management activity. Remuneration is necessary for all important decisions relation to people such as job specification and job description as well as long term planning and organization development. In Nayagarh sugar complex limited the remuneration management cycle beings at the initial of every financial year and ends with the end of financial year. It is basically a formal exercise where an organization makes an evaluation in a documented form of its managers in terms of contribution made towards achieving organizational objective and their personal strengths and weaknesses. In Nayagarh sugar complex limited the remuneration management system take an important role for both employees and employer. In such organization the remuneration system based on according to the norms and regulation of organization. Nayagarh sugar complex limited is a seasonal based organization, so there employees and employer level are differ according to the need of work and according to the level of work the remuneration system are differ from employees to employees and employer to employer.

TOTAL NO OF EMPLOYEES WORK IN NSCL:The total number of work of NSCL is more than five hundreds. The five hundreds employee are divided into according to their level of job and according to the skills, and level of job and skills the remuneration fixed by the management of NSCL. TYPES OF WORKERS IN NSCL:i) Regular employees ii) Casual employees iii) Seasonal employees

REGULAR EMPLOYEE:Regular employee are those are work in regular basis for the organization and get remuneration according to the package of management. Under regular employees executive staff (40), cane mill (60), security (40). CASUAL EMPLOYEE:The casual employee are those are work in season but occasional situation ,suppose the raw material percentage increase then obviously the management increase the employee number for production. The casual employees get his of her remuneration according to the management decision.

SEASONAL EMPLOYEE:This types of employee work only season time and the management paid them remuneration in the season and the days of year paid 20 per cent salary of his total remuneration. The number of seasonal employees is more than 200.

WAGES PATTERN OF NSCL Nayagarh sugar complex limited paid wages to his employee in this way daily wages weekly wages monthly wages

i) ii) iii)

SALAYR PATTERN:NSCL paid salary in average salary structure. Beside salary the management pay some extra financial facilities like bonus, gratuity, incentive, leave also. Except financial benefits some non financial facility provide his employee like leave facility, medical facility, sports and game facility, best workers prize, best security prize etc. NSCL provide IR (300) all employees.

TYPE OF INDUSTRY:Nayagarh sugar complex limited is a seasonal industry. So the production possible only four to five months in a year (from, Oct to Feb), because the shortage of raw material. Though it is a seasonal industry more employees need in production time.

NUMBER OF SEASONAL EMPLOYEE:Seasonal employee takes a vital role in production process of NSCL, because the all activities of an organization depend on production process of firm. So the seasonal employee role vital for NSCL, because it is a seasonal industry. NSCL keep 200 seasonal employees. They are cane mill, security, civil worker etc. The number of cane mill employee are more than 50, and seasonal security worker no. 50, and the civil worker number are more than 100, some time it increase or decrease according to raw material per cent. SEASONAL WAGES AND SALARY PATTERN:Nayagarh sugar complex limited paid wages and salary to his employee in daily basis, weekly basis and monthly basis also. According to the gradation system of management decides both employees remuneration. WAGES PAID METHOD:NSCL paid wages to his employee according to their skills, so the management divided the employee such as:-

i) Un skills employee ii) Semi skill employee iii) Skill employee iv) High skill employee

NSCL paid wages to his un skills employees in daily basis. Generally the un skills employees did the labour based work and they get Rs.93 per day. Semi skill employee gets Rs.103 per day. Then the skill employee get Rs.116 per day and the high skill employee get Rs.129 per day. NSCL paid wages both daily basis and monthly basis to his or her employees. SALARY GREADETION SYSTEM OF NSCL:

Establish the number of levels - senior, junior, intermediate, and beginner - for each job family and assign a grade to each level. Determine the number of pay grades, or monetary range of a position at a particular level, within each department.

NSCL paid salary to his or her employees and employer monthly basis. According to the gradation system of management both employees and employer divided into different grade and paid salary according to their gradation level. In NSCL gradation system divided into W1 to W6 according to the job specification and job description. The grade W1 employee get salary Rs.4000 per month and grade W2 get Rs.4300 per month, grade W3 get Rs.4500 and the grade W6 employee get 6000 per month respectively. Another gradation system start from E0 to E7, this gradation system starts from assistant store officer to top level management of this organization. In this gradation system the E0 grade employee get Rs.6500 per month and grade E7 get more than Rs.30,000 per month respectively.

HOW MANY DAYS THE SEASONAL WORKER WORKING:NSCL seasonal employees have been working four to five month per year. This types of worker need for organization only production time. Before started production the management invited the seasonal worker for special training then, they join to organization and implement their work. Some seasonal worker working seven to eight month they are technical workers, they work both production time and before production period they work for organization.

RECRUITMENT PROCEDURE OF NSCL:Like other organization recruitment process, NSCL have his own recruitment team. According to the requirement of different department report, the top level management invite the candidate like job description. The recruitment procedure of NSCL is based on his own expert team. After matching of job description and job specification the selection team selected the candidate.

APPOINTMENT OF TRAINEES:After selection of candidate NSCL give them special training by special trainees. The special trainees invited from different big sugar industry inside India. NSCL give big amount of salary pack to the trainees, because all productivity depends on employee training. The trainees appointed by the top level management of NSCL and prepare their salary according to the training period and employees number. Because the whole training period depend on level of employee, so the NSCL management dont want loss his old employees.

LABOUR WELFARE POLICY:Some time the employees dont want only financial facility they give more priority to non financial facility of the organization. NSCL provide a better welfare policy for his worker to attract them. Beside welfare policy NSCL provide his worker some other facilities these are: i) consumer store, ii) health camp, iii) insurance, iv) safety policy, v) labour union etc.

Concept analysis:CONCEPT OF TOTAL REMUNERATION OF NSCL. The total remuneration of an individual is very important for several reasons; it is a large cost, that in some cases can be half of the operational costs, and it is a motivation factor for employees. From the point of view of them, total remuneration determines the level of life and activities that the workers can have outside work. To achieve motivation of personnel it is necessary that the NSCL knows ambitions, and desires of individuals, and that these last ones understand the objectives of the company. Total remuneration concept includes every component perceptible by an individual, and it will be the combination of these five:

Annual cash fix retribution: Gross annual amount guaranteed received in cash. Annual cash variable remuneration: Amount received by the employee like little increases depending on his/her performance. Incentives on the medium/long term: Remuneration received lately or in a longer period than a year. Payment in kind. Non-salary benefits

FOCUS: In this paper I will try to explain what are right know the trends according to the payments of the employees in the NSCL. First of all, I will begin to explain in some paragraphs what are the main necessities of the employees inside the organization, as well as outside it, because the NSCL as the provider of the quality of their lives must consider which are their preferences, and therefore, try to fulfill their requirements. Afterwards, I will continue by explaining what does the concept of total remuneration mean, and why the concept of the monetary payment as the only way to remunerate the employees is old fashioned. I will try to explain as well which are the normal preferences among the employees of the NSCL and therefore, what can the managers do to. I have tried to make a summary of every piece of information I found, so that I would speak about every aspect of the remuneration in Spain. Among the data founded, obviously I had to omit writing it in the report, but I think the most important information is included in it.

CHAPTER- IV

DATA ANALYSIS AND FINDING

EPILOGUE

SURVEY Purpose
To know the employees responses and awareness towards private sector remuneration system and a seasonal organization workers responses. Finding:-1 Types of workers working in NSCL.

250 200 150 Series1 100 50 0 Regular employees] Seasonal employees Casual employees

In NSCL three types of worker working here, they are :- 1)regular employees, 2)seasonal employees, 3)casual employees and the workers number are 140,160 &200 respectively.

Finding: 2
Level of worker according to skills and their daily wages.

140 120 100 80 60 40 20 0 Un skill Semi skill Skill High skill

Series1

NSCL is a small industry, so here different level of worker working according to their skills. Mainly four level of worker working here, they are :- un skill, semi skill, skill and high skill, according skill their wages are:-RS. 93,103,116 and129 respectively.

Finding: 3
SALARY GRADATION SYSTEM OF NSCL (from grade W1 to W6)

7000 6000 5000 4000 3000 2000 1000 0 Grade Grade Grade Grade Grade Grade w1 w2 w3 w4 w5 w6

Series1

Establish the number of levels - senior, junior, intermediate, and beginner - for each job family and assign a grade to each level.

Salary gradation system (from grade E0 to E7)

30000 25000 20000 15000 10000 5000 0 grade E1 garde E3 grade E5 grade E7 Series1

This gradation system starts from assistant store officer to top level management of this organization. In this gradation system the E0 grade employee get Rs.6500 per month and grade E7 get more than Rs.30, 000 per month respectively.

Finding: 5 Satisfaction rate of employees of NSCL

Satisfied Disstisfied

60 % employees are satisfied with the remuneration system of NSCL and 40 % employees dissatisfied the organization remuneration policy of NSCL, mainly some seasonal employees and some casual employees are mostly dissatisfied the remuneration system.

SWOT ANALYSIS
Strengths: Providing fair remuneration system Remuneration pays at right time Motivated and well behaved among employees and employer. NSCL providing IR (Rs.300) for both employees and employers. Providing some extra financial benefits like best worker prize, best security prize. Providing some non financial benefits like, organized health camp, accidental facilities. Providing leave, sport, rest within working period .

Weakness: Employees not get the proper wages according to the wages policy of government. Compare to Baramba and Aska sugar industry the remuneration policy of NSCL is not sound.

 Lack of sufficient no. of worker The working condition is not sound. Lack of other facilities like- medical, canteen, dress code, Trade union. No employee welfare system here. Same level worker get different types of salary. Opportunities Advance pay system to employees Over time facilities NSCL has his own shopping store for all employees as well as employers. Promotion facilities Leave facilities providing to both employees and employers.

Threats Though it is a private sector some time chances of job loss occur. No labour union here so, employees face threaten from his subordinate of job loss. No medical facilities here, so at the time of accident the possibility of life loss chance are more. The remuneration system is totally handicraft. The security system is totally unfair.

Why I have chosen SWOT analysis

SWOT analysis is a basic, straightforward model that provides direction and serves as a bases for the development of HRM plans. It accomplishes by assessing an organizations strengths and weaknesses in addition to opportunities and threats. SWOT analyses are an important step in planning and its value is often underestimated despite the simplicity in creation. The role of SWOT analysis is to take the information form the environmental analysis and separate it into internal issues and external issues. Once this is completed, SWOT analysis de5termines if the information indicates something that will assist the firm in accomplishing its objectives of if it indicates an obstacle that must be overcome or minimized to achieve desired results. It is not simply enough to identify the strength, weaknesses, opportunities, and threats of a company. In applying the SWOT analysis it is necessary to minimize or avoid both weaknesses and threats of NSCL. Weaknesses should be looked at in order to convert them into strengths. Likewise, threats should be converted into opportunities. Lastly, strengths and opportunities should be matched to optimize the potential of NSCL. Applying SWOT in this fashion can obtain leverage for NSCL. This survey throws light on various issues that the employees face within the organization.

QUESTIONARIES:1) How many days or month you working for this organization?

2) How many hours do you work per day?

3) Do you think that, this much contribution enough for this organization and the organization could achieve his objectives?

4) Do you know the financial position of the organization?

5) How much salary and wages you obtain per day or month?

6) You think, the current remuneration system give satisfy to you?

7) Do you think this much remuneration fulfill your own desire and objectives?

8) You think any other facilities could help you to achieve your career objectives?

CONCLUSION
Man wants and desire are unlimited but remuneration is a way to solve this problem and it is an element inspires every one for better performance for their organization.
Remuneration is an important factor related to organizations long term success is its ability to measure employees contribution to the organization to the organization during a period of time and let employees know how well they have performed in comparison with standards of organization. A development oriented remuneration approach system includes establish performance goals and standards, monitoring process reviewing actual performance, and comparing actual performance with the pre establish goals. Its purpose is to determine job assignments ,rises promotions and terminations an development consisting of feedback provisions, and identifies the needs. Its acts as a motivational factor for employees to increase their productivity and keep their moral high.

In this chapter, an attempt has been made to conclude the findings or study and to suggest various measurers to serve as guidelines for the management of NSCL in order to evolve a suitable remuneration system. The present enquiry has been continued to the different departments of NSCL concerned with the existing remuneration system and has a desire for new development oriented system in NSCL. The objective of study is to check how far the existing remuneration system has been effective in NSCL to achieve its objectives i.e., the medication desired for a development oriented system to know the problems arising out of its implementation and also to find out some solution to these problems. A large number of employees gave opinion that their organization believes in development of human resources and it provides many opportunities of such purposes. But according to them the present remuneration is not appropriate for their organization development as well as employees development, because of lack of participation between their superior and subordinates, confidential nature of report and ; last but not least lack of seriousness on NSCL management for improvement through remuneration process. The respondents opinion on the survey focused that they want change in the system so that it can meet individual and organization objective and solve the main purpose for which the remuneration system is opted i.e. help identifying employees living condition and their standard situation and try to develop that , it direct help in creating a desirable culture and tradition in the organization. In short an overall survey about the remuneration in NSCL show that much seriousness is yet to be given to the system as a whole. Here majority of employees agrees on the high quality of remuneration form but feel that the implementation part should be taken more care. In a way we can say that the study is successful in giving a brief idea about the functioning of remuneration in Nayagarh sugar complex limited and highlighting the other financial and non financial existing system. So it can be concluded that the existing system needs modification especially on the implementation area to yield better result.

SUGGESTION

The remuneration system should be change according to the change wages board and salary policy of government. An employee should be contributing his level best, what types of return he gets from an organization. Except financial benefits some other non financial facility provide for all level of employees.

Always tray to pay the salary and wages in time. Remuneration distribution system should be fair.

BIBLIOGRAPHY
Book and Authors

1. Human Resources Management by K.Aswathapa. 2. Human Resources Management by Deepak Kumar Bhatacharya. 3. Human Resources Management by Gairy Dessler.

From Website www.google.com www.nscl.com

Jay maa santoshi

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