about compensation

8/7/2019 About compensation

1/5

REVIEW OF LITERATURE

INTRODUCTION:

If you go down to the root of any problem, you shall find HUMAN.- PETER F. DRUCKER

This saying is ever applicable to any situation, it is omnipresent and omnipotent.

Human Resources are recognised as most valuable asset for the development of

Organisations. The rapid social and technological change that is occurring, our

society is faced with acute human problems never before encountered. The

Organisations are becoming more complex and more competitive day-by-day.

Besides, work ethics and values and traditional work system warrants a change to

get a better yield.

So from the above table Compensation also plays a vital role in the functions of HR.

Compensation increases ones ability and increases motivation, which results in the

increase of Production, Profitability, and Goodwill of the organisation. This makes

company to provide compensation regularly which satisfies the individual employee

of the organisation.

CONCEPT:

According to Workmen compensation act 1923 Compensation means payment

by the Employer to a work man.

Ordinarily Compensation means payment for loss or injury to a person.

Eg. 1. Claims for injury suffered by accident,

2. Salary paid to an employee.


2/5

CHAPTER - III

NEED FOR THE STUDY

In the present Globalised economy, everybody has realised Human

Resources as Assets instead of maintenance factors in any Organisation. Technology

plays a vital role in fulfilling the sea demands of people, but in the absence of

Personnel, Technology becomes wasteful and hence up-gradation of Technology is by

Personnel efforts, is pre-requisite.

As it is the only asset, which has the dynamic property, and when managed

properly yield optimum results synchronised synergetic effect and any change that

affects the productivity of Human Resources should be noted and rectified at proper

intervals.

In such a big Organisation, maintenance of records of personnel, grievances

handling, wage administration and other related jobs are well established.

Even though with the enhanced technology, and in the changing

technological scenario in all spheres, it is very difficult to get full information

regarding effective utilisation / administration of Human Resources.

It may very hard to quantify the performance of Personnel Department

unlike other functional areas viz., Production, Marketing, Finance, Planning, R&D.

Though it is essential to monitor the performance / effective functioning of HRD,

there is no yardstick to measure the performance of HR Department. But, assessing

some key areas of Human Resource Development, it could be possible to explore the

perception of the respondents, who are ultimately the employees of the Organisation

and they are best in reflecting the image of the HR Department in any Organisation.


3/5

The study Compensation and benefit analysis of the organisation will be

very much helpful to the Top Management. The Overall performance of the

Personnel Department could be well quantified and would be helpful to all levels of

Management by knowing the current scenario prevailing in NLC.

Evaluation of the current trend can be made and the inferences drawn will be

helpful in arriving at the conclusion. Suggestions made in this study could be useful

in formulating and implementing the changes, if needed. Ways to improve the

existing process may be progressed by suitable actions. This study will throw light on

the areas, in which improvement has to be made and rectification of certain errors in

process may be set right.

Objectives:

To identify the compensation packages provided by the company.

Quantifying the employees attitude towards key parameters of Compensation

packages.

To arrive at an overall perspective of employees opinion over the

compensation packages.

To analyse the impact of demographic variables such as age, years of

experience, nature of work, educational background, designation etc.

To provide rational suggestions based on the results and findings of the study.

Scope and Limitation of the Study:

The study has been carried out in Neyveli Lignite Corporation Limited, a giant Public

Sector Enterprise consistently making profits and having approximately 19000


4/5

employees. All categories of employees were considered for the sample, which is

drawn using convenience-sampling procedure.

The study with formulated objectives is aimed at measuring the

Compensation and benefit analysis of the organisation. The attitudes will be

measured with number of key parameters namely, Injuries when he met with an

accident | Age | Nature of work etc.

The study also explore whether there is any perceived differences in attitudes

of the employees on account of age, category of job, educational background,

income level, nature of job, etc., by making use of sophisticated statistical inferential

techniques. The study is likely to throw light on employees perception over the

Compensation and benefits they enjoy.

Limitations of the topic:

The study is about the measuring attitudes of the employees about the

compensation and other benefits they enjoy and its quantitative in nature. The

method of assessment is based on structured questionnaire. If the respondents have

pre-conceived notions over the HR Department, the study is not likely to provide the

original attitudes of the employees. The study is based on a disproportionate random

sampling which is used for collecting data. The estimates may not be having the

accurate information but still they provide a benchmark for further researches on the

topic.


5/5

about compensation

Documents