A Dissertation Report

ON

“EMPLOYEES SATISFACTION REGARDING PAYROLL

SYSTEM”

DHAMPUR SUGAR MILLS LTD.

SUMMER TRAINING PROJECT REPORT SUBMITTED TOWARDS PARTIAL FULFILLMENT

OF

BACHELOR OF BUSINESS ADMINISTRATION(AFFILIATED TO CH. CHARAN SINGH UNIVERSITY, MEERUT)

(ACADEMIC SESSION 2007-2010)

MODERN COLLEGE OF PROFESSIONAL STUDIESMOHAN NAGAR, GHAZIABAD

Under supervision of: Submitted by:

Ms. Bhawna (Faculty) Vishal Kr. Rajput

Submitted to: S/o Sh. Ompal Singh

Mr. Gulshan Gambhir (H.O.D.) Univ.roll.no - 9951614

PREFACE

Research work is management parlance is extremely important for a given

close view of the relatives of the real life business issues. For any

management student who is striving to perform outstandingly, it is of

paramount importance that apart from theoretical knowledge the most also

gain some practical knowledge. Survey report deals specially with providing

an opportunity to management students to have some exposure in real

business world. My study topic deals with analyzing the workers

satisfaction about payroll system. .

Payroll regarded as one of the major achievement of the organization. The

main objective of dissertation and project i.e. familiarization with the

necessary theoretical input and to gain sufficient practical exposure to

establish a distant linkage between the conceptual knowledge acquired at

the institute and practicing these concepts.As mba degree require equal

attention practical as well as theoretical aspect of the business, various

problems are to be death within these courses, that is why research

program are to given deep as well as through knowledge of the subjects.

I have attempted to live up these requisites while preparing this project. It is

a part of professional courses. With the help of project we can able to

understand the deep knowledge about the specific topics assign to us.

During my project work I observed some of the aspects of magnum paper

ventures ltd and gathered all the necessary information regarding paper

2

industries. . It is hoped that this report meets the given expectations and

various requirements of the research.

ACKNOWLEDGEMENT

I express my utmost gratitude and in debt ness to all who have

contributed in some way or the other and been linked with the

project from day one.

From the core of my heart. I express my sincere thanks to

( Mr.S.P CHATRURVEDI ,(H R MANAGER) MAGNUM VENTURES

LTD. GHAZIABAD, for encouragement and guidance.

I would also like to thanks to MRS. SHWETA GARG (Lecturer)

for her ready assistance, interest and valuable suggestions.

I am extremely grateful to my parents, the respondents and all my

friends for their unconditional support and ready assistance.

(ANKITA VERMA)

3

STUDENT DECLARATION

I here declare that the project report title “Workers

Satisfaction Regarding payroll system at DHAMPUR

SUGAR MILLS” submitted in partial fulfillment of the

requirement for the Degree of Master of Business

Administration in HR is record of bonafide research work

carried out by Vishal and that no part of this report has

been submitted for the award of any other diploma degree

fellowship or other similar title prize. The report is based

on my personal opinion here cannot be referred for official

or legal purpose.

VISHAL

4

Executive Summary

Management ideas without any action based on them mean

nothing. That is why practical experience is vital for any

management studies. Theoretical studies in the class room are

not sufficient to understand the functioning climate and the real

problems coming in the way of management. So, practical

exposures are indispensable to such courses. Thus, practical

experience acts as a supplement to the classroom studies.

This report deals with “Employees Satisfaction regarding payroll

system at Magnum ventures ltd.

.

Indian sugar industry, second largest agro-based processing

industry afterthecotton textiles industry in country, has a lion's

share in accelerating industrialization rocess and bringing socio-

economic changes in under developed rural areas. Sugar ndustry

covers around 7.5% of total rural population and provides

employment to 5 lakh ural people. About 4.5 crore farmers are

engaged in sugarcane cultivation in Inda. Sugar ills (cooperative,

private, and public) have been instrumental in initiating a number

5

of ntrepreneurial activities in rural India. Present paper is an

attempt as to review progress f sugar industry in India,

understand it's problems and challenges in context of ongoing

beralization process. Indian sugar industry can be a global leader

provided it comes out f the vicious cycle of shortage and surplus

of sugarcane, lower sugarcane yield, lower sgar recovery, ever

increasing production costs and mounting losses. It needs quality

anagement at all levels of activity to enhance productivity and

production. Attention is equired on cost minimization and

undertaking by product processing activities.

Indian sugar industry contributes 15% of global sugar production.

While its share n global sugar consumption is around 13.4%.

Sugar exports from India had shown rarkable growth during 1998-

99 to 2002-03, i.e. from 10000 MTs to 1410000 MTs. owever,

exports of sugar declined substantially during 2003-04 by 78.72%

and 93.33% uring 2004-05 over their respective previous years

due to decreased sugar production nd uncompetitive sugar prices

(Table 5). Whenever there is lower production of sugar in he

country, sugar is imported to meet domestic demand. Sugar

imports during 1998-99 o 2003-04 had mixed growth trend.

Domestic consumption of sugar in India had slight luctations

during 1998-99 to 2003-04.

6

TABLE OF CONTENTS

CHAPTER 1: PAGE NO.

1. INTRODUCTION OF THE SUBJECT 10-45

1.1 INTRODUCTION TO THEORETICAL VIEW

1.2 REVIEW OF LITERATURE

CHAPTER 2:

2. INTRODUCTION TO ORGANIZATION 44-56

2.1 COMPANY PROFILE

2.2 HISTORY

2.3 RECENT ACHIEVEMENTS

2.4 PRODUCT RANGE

2.5 CURRENT STATUS

2.6 FUTURE SCENARIO

CHAPTR 3:

3. OBJECTIVE OF THE STUDY 57-57

3.1 SCOPE OF THE STUDY

7

CHAPTER 4:

4. RESEARCH METEHDOLOGY 58-61

4.1 RESEARCH DESIGN

4.2 DATA COLLECTION METHOD

4.3 SAMPLE DESIGN

4.4 DATA PROCESSING

CHAPTER 5: PAGE NO.

5. DATA ANANLYSIS AND INTERPRETATION 62-70

CHAPTER 6:

6. FINDING AND CONCLUSION 70-73

6.1 FINDING

6.2 LIMITATION

CHAPTER 7:

7. SUGGESTIONS 74-76

CHAPTER 8:

8. CONCLUSION 77-77

BIBLOGRAPHY 78-79

ANNEXURE 80-87

8

1. INTRODUCTION

9

1.1 INTRODUCTION OF THE SUBJECT

Payroll system in the organization

Definition of payroll

Wages and salary administration affect levels of employee

commitment to the organization. Every employee joins with

organization because they wants to money in the form of salary or

wages (pay). Pay affects the way people work-how much and

how well. A large part of compensation that people receive from

work is monetary. Many employees’ individuals feel that they

should get more of it for what they do. Wages salaries and many

employee benefits and services are form of compensation that

people receive from work is monetary. Many employees

individuals feel that should get more of it for what they do. Wages

salaries and many employee benefits and services are from of

compensation.

10

According to D.S.Beach

Wages & salaries administration refers to

the establishing and implement of sound policies and practices of

employee compensation. It includes such areas as job evaluation.

Surveys of wages & salaries, analysis of relevant organizational

problems, development and maintenance of wage structure,

establishing rules for administrating wages, wage payment

incentives, profits sharing, wage changes and adjustments,

supplementary payments, control of compensation costs & other

related items.

Thus, wages & salaries administration aims to establish and

maintain an equitable wage and salary structure & an equitable

labor cost structure.

Objective of wage & salary administration

11

A should plan of wage & salary administration seeks to achieve

the following objective:-

1. To establishing a fair and equitable compensation offering

similar pay for similar work.

2. To attract competent and qualified personnel.

3. To improve motivation and moral of employees.

4. To improve union management relations.

5. To minimize the chance of favoritism while assigning the

wage rate.

Purpose

1. To recruit persons for a firm.

2. To control payroll costs.

3. To satisfy people, to reduce the incidence of quitting,

grievance and factions over pay.

4. To motivate people to perform better.

TIME OFFICE:

It is very important feature of human resource development of any

organization as it keeps the details of each and every employee in

terms of appointment salary attendance, leaves, overtime, bonus,

appraisal etc. these issues are very important for employee

12

because their payment of salary, promotion is dependent on their

performance which is continuously looked by the time office.

Category of employees

Permanent

These employees have jobs in permanent basis. They are

required to work on off season.

Seasonal

The employees work only on seasonal basis. In sugar industry the

season is from November to March. Retaining allowances is a

must on basis of grade in the organization.

13

Temporary

These employees have jobs in temporary basis they works when

the organization required.

Substitute

These are work for seasonal basis. Company can take substitute

only for unskilled labor and for these labor 33% presents are

compulsory.

Trainee

These are the people who are selected by the company through

campus selection & interviews and after the selection company

gave training to those people for a particular time period.

Apprentice

These are the people who are the selected by the government

from different institute

Contractual labor

14

These are work for contract basis.

The time office is required to do the following task: -

1. After receiving appointment letter entry is done on form no.

12.

2. Preparing personal file of each employee.

3. Provident fund department is separate in the company which

is run by trust whereas in some companies it is the duty of it

off.

4. Form 16 under factory act to be filled by employee.

5. Attendance is to be taken form 12. Today punching machine

system is in use from this year only and all employees have

identification card.

LEAVE

Leave sanction according Category of employees in

this organization.

1. Permanent

15

Supervisory

labour

8 medical leaves 10 medical

leaves

7 casual leaves 6 casual

leaves

30 earn leaves 15 earn

leaves

1. Seasonal-

½ medical leave

½ casual leave

1 earns leave if work in 20 days in a month by

worker.

2. Temporary -

Only 1 leave if working 20 days in a month.

3. Substitute-

16

(Only for unskilled worker)

Work for seasonally depend upon nature of

work.33% attendance count necessary some time substitute

work 30days+12days over time.

4. Trainee/apprentice -

In a month

1 medical L

1 casual L

5. Casual labor/contractual labor -

No leave in any situation.

17

RETAIN EARNINGS FOR SEASONAL

WORKERS

1. unskilled worker has 20%

2. Semiskilled worker has 30%

3. Skilled B, A, highly skilled has 50%

4. Clerk 50%

5. Supervisor B, A has 50%

18

Payroll is administered on monthly and

annual basis

Monthly Payroll

While administrating the monthly payroll basic salary, HRA,

conveyance, and other special allowances such mobile, etc are

considered. There are some deductions which are provident fund

(12%) of the salary, taxes and other deductions. which are

provident fund (12%) of the salary, taxes and other deductions

Deductions such as tax and loan/advances taken by the

employee from organizations are deducted only where applicable.

Dearness Allowance and House rent allowance is provided at a

fixed rate stated by the employment law. Provident fund is

deducted from the gross salary of employee on the monthly basis

as per the employment law, which is provided later to the

employee. Organizations also contribute the same amount to the

provident fund of the employee.

19

Annual payroll

Annual payroll consists of leave travel allowances, incentives,

annual bonuses, meal

vouchers/reimbursements, and medical reimbursements.

     Allowances, incentives, bonuses and reimbursements are

based on organizational policies. Some organizations provided

the allowances on a fixed rate say 10% or 12% of the basic

salary. Some organizations go for performance based incentives.

Payroll management

Payroll management is divided in to two parts

Payroll   Accounting

Payroll accounting involves calculations of employees’ salaries

and tax deductions. It also undertakes the activities such as

preparation of tax returns, maintaining the payroll records, etc.

Payroll   Administration

Payroll Administration involves managerial activities such as

maintaining employees’ records, referring employment laws.

Here, the HR comes into picture which maintains the daily record

if employees attendance.

  

20

Compensation management

Human Resource is the most vital resource for any organization.

It is responsible for each and every decision taken, each and

every work done and each and every result. Employees should be

managed properly and motivated by providing best remuneration

and compensation as per the industry standards. The lucrative

compensation will also serve the need for attracting and retaining

the best employees.

Compensation is the remuneration received by an employee in

return for his/her contribution to the organization. It is an

organized practice that involves balancing the work-employee

relation by providing monetary and non-monetary benefits to

employees

21

Types of compensation1. Direct compensation

2.Indirect compensation

Components of direct compensation

House   Rent   Allowance

Organizations either provide accommodations to its employees

who are from different state or country or they provide house rent

allowances to its employees. This is done to provide

them social security and motivate them to work.

Conveyance

Organizations provide for cab facilities to their employees. Few

organizations also provide

vehicles and petrol allowances to their employees to motivate the

m.

22

Leave   Travel   Allowance

These allowances are provided to retain the best talent in the

organization. The employees are given allowances to visit any

place they wish with their families. The allowances are

scaled as per the position of employee in the organization.

Medical   Reimbursement

Organizations also look after the health conditions of their

employees. The employees are provided with medi-claims for

them and their family members. These medi-claims include

health-insurances and treatment bills reimbursements.

Bonus

Bonus is paid to the employees during festive seasons to

motivate them and provide them the social security. The bonus

amount usually amounts to one month’s salary of the employee.

23

Special   Allowance

Special allowance such as overtime, mobile allowances, meals,

commissions, travel expenses, reduced interest loans; insurance,

club memberships, etc are provided to employees to provide them

social security and motivate them which improve the

organizational productivity.

Components of indirect compensation

Overtime   Policy

Employees should be provided with the adequate allowances and

facilities during their overtime, if they happened to do so, such as

transport facilities, overtime pay, etc.

Hospitalization

The employees should be provided allowances to get their regular

check-ups, say at an interval of one year. Even their dependents

should be eligible for the medi-claims that

provide them emotional and social security.

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Insurance

Organizations also provide for accidental insurance and life

insurance for employees. This

gives them the emotional security and they feel themselves

valued in the organization.

Leave   Travel

The employees are provided with leaves and travel allowances to

go for holiday with their families. Some organizations arrange for

a tour for the employees of the organization. This is usually done

to make the employees stress free.

Retirement   Benefits

Organizations provide for pension plans and other benefits for

their employees which benefits them after they retire from the

organization at the prescribed age.

25

Holiday   Homes

Organizations provide for holiday homes and guest house for their

employees at different locations. These holiday homes are usually

located in hill station and other most wanted holiday spots. The

organizations make sure that the employees do not face any kind

of difficulties during their stay in the guest house.

Flexible   Timings

Organizations provide for flexible timings to the employees who

cannot come to work during normal shifts due to their personal

problems and valid reasons

Incentive Plans

Bonuses

Bonuses are given to employees on a pre established goal or

criteria. The organizations set policies regarding the bonuses.

Usually bonuses are provided during the festive season.

26

Merit   Raises Merit raises are given on the basis of predetermined policies. The

employees are given raise on the basis of their performance. The

performance standards are set by the organizations

much in advance.

Standard   Hour   Pay

Standard hour plan provides incentives to employees based on

the time saved by them during the job course. Employees’

productivity and quality is evaluated with respect to the set

standards.

Maturity   Curves

Maturity curve incentive plan considers the experience and

performance of an employee for giving out the incentives. It is

practiced in all the industries. Experience is always given a

weight-age as experienced people can produce better quality

results.

Gain   Sharing

27

Gain sharing incentive plans undertake those employees who

give outstanding performances and provide for cost saving

measures. Organizations believe in sharing the profits with the

employees who are responsible for producing those results.

Profit   Sharing Profit sharing incentive plans are practiced in retail and FMCG

sectors. Other sectors too implement the plan based on

organizational policies. It refers to giving out the share of profits

the organization earned to all the employees. Indirectly all the

organizations follow the plan by giving out the dividends.

BONUS

Eligibility for bonus

Every employee shall be entitled to be paid by his employer in an

accounting year, bonus, in accordance with the provisions of this

Act, provided he has worked in the establishment for not less than

thirty working days in that year.

Disqualification for bonus

28

Notwithstanding anything contained in this Act, an employee shall

be disqualified from receiving bonus under this Act, if he is

dismissed from service for -- (a) Fraud or

(b) Riotous or violent behavior while on the premises of the

establishment; or

(c) Theft, misappropriation or sabotage of any property of the

establishment.

Payment of minimum bonus

Subject to the other provisions of this Act, every employer shall be

bound to pay to every employee in respect of the accounting year

commencing on any day in the year 1979 and in respect of every

subsequent accounting year, a minimum bonus which shall be

8.33 per cent of the salary or wage earned by the employee

during the accounting year or one hundred rupees, whichever is

higher, whether or not the employer has any allocable surplus in

the accounting year:

Provided that where an employee has not completed fifteen

years of age at the beginning of the accounting year, the

provisions of this section shall have effecting relation to such

29

employee as if for the words “one hundred rupees”, the words

“sixty rupees” were substituted.]

Payment of maximum bonus

Where in respect of any accounting year referred to in section 10,

the allocable surplus exceeds the amount of minimum bonus

payable to the employees under that section, the employer shall,

in lieu of such minimum bonus, be bound to pay to every

employee in respect of that accounting; year bonus which shall be

an amount in proportion to the salary or wage earned by the

employee during the accounting year subject to a maximum of

twenty per cent, of such salary or wage.

In computing the allocable surplus under this

section, the amount set on or the amount set off under the

provisions of section 15 shall be taken into account in accordance

with the provisions of that section.]

Proportionate reduction in bonus in certain cases

Where an employee has not worked for all the working days in an

accounting year, the minimum bonus of one hundred rupees or,

as the case may be, of sixty rupees, if such bonus is higher than

8.33

30

Computation of number of working days

For the purposes of section 13, an employee shall be deemed to

have worked in an establishment in any accounting year also on

the days on which—

GRATUITY

Payment of gratuity

(1) Gratuity shall be payable to an employee on the termination of

his employment after he has rendered continuous service for not

less than five years, -

31

(a) On his superannuation, or

(b) On his retirement or resignation, or

(c) On his death or disablement due to accident or disease:

Provided that the completion of continuous service of five years

shall not be necessary where the termination of the employment

of any employee is due to death or disablement:

Provided further that in the case of death of the employee,

gratuity payable to him shall be paid to his nominee or, if no

nomination has been made, to his heirs, and where any such

nominees or heirs is a minor, the share of such minor, shall be

deposited with the controlling authority who shall invest the same

for the benefit of such minor in such bank or other financial

institution, as may be prescribed, until such minor attains majority.

Provided that in the case of a piece-rated employee, daily wages

shall be computed on the average of the total wages received by

him for a period of three months immediately preceding the

termination of his employment, and, for this purpose, the wages

paid for any overtime work shall not be taken into account.:

Provided further that in the case of [an employee who is

employed in a seasonal establishment and who is riot so

32

employed throughout the year], the employer shall pay the

gratuity at the rate of seven days wages for each season.

The amount of gratuity payable to an employee shall not exceed

three lakhs and fifty thousand] rupees.

For the purpose of computing the gratuity payable to an

employee who is employed, after his disablement, on reduced

wages, his wages for the period preceding his disablement shall

be taken to be the wages received by him during that period, and

his wages for the period subsequent to his disablement shall be

taken to be the wages as so reduced. Nothing in this section shall

affect the right of an employee to receive better terms of gratuity

under any award or agreement or contract with the employer..

Recovery of gratuity

If the amount of gratuity payable under this Act is not paid by the

employer, within the prescribed time, to the person entitled

thereto, the controlling authority shall, on an application made to it

in this behalf by the aggrieved person, issue a certificate for that

amount to the Collector, who shall recover the same, together

with compound interest thereon at such rate as the Central

Government may, by notification, specify,] from the date of expiry

33

of the prescribed time, as arrears of land revenue and pay the

same to the person entitled thereto :

Provided that the controlling authority shall, before issuing a

certificate under this section, give the employer a reasonable

opportunity of showing cause against the issue of such certificate:

Provided further that the amount of interest payable under this

section shall, in no case exceed the amount of gratuity payable under this

Act.

Features of Important Indian Labor Laws relevant for Industrial Sector

Employees’ Provident Fund Act, 1952

34

 Benefits available to the workers include the provident

fund, employees deposit linked insurance and the

pension to the workers and their families

 Applicable to 180 industries/classes of establishments

employing 20 or more workers

 Wage ceiling for coverage is Rs. 6,500 per month

 24.53 million workers are covered under the Act

 These are administered by the Employees Provident

Fund Organisation under the overall supervision and

direction of the Central Board of Trustees and Committees

 Central Provident Fund Commissioner (CPFC) is the

Chief Executive Officer of the Organisation

 

Workmen’s Compensation Act, 1923

Provides for compensation to workmen or their

survivors in cases of industrial accidents and

occupational diseases, resulting in disablement or

death

35

 Compensation in case of death ranges from Rs. 50,000

to Rs. 4.56 lakh and in the case of permanent total

disablement from Rs. 60,000 to Rs. 5.48 lakh.

Dock Workers (Safety, Health & Welfare) Act, 1986

 Contains provisions for the health, safety and welfare of

workers working in ports/docks

 Administered by Director General Factory Advice

Service and Labour Institutes, Directorate General

FASLI as the Chief Inspector there are inspectorates of

dock safety at 10 major ports in India viz. Calcutta,

Mumbai, Chennai, Visakhapatnam, Paradip, Kindler,

Mormugao, Tuticorin, Cochin and New Mangalore

 Inspectorate at Jawaharlal Nehru Port is being made

operational

 Overall emphasis in the activities of the inspectorates is

to contain the accident rates and the number of

accidents at the ports

 Payment of Wages Act, 1936

 

The Payment of Wages Act was enacted during the British Rule in

1936 on the recommendations of the Royal Commission on

36

Labour. The Act regulates the payment of wages to workers and

ensures that they are disbursed by the employers within the

stipulated time frame and without any unauthorized deductions.

 

The Act lays down that the wage period exceeding one

month should not be fixed and payment of wages must be made

before the entry of specific day after the last day of the wage

period. The specific day is the seventh day of a month where the

number of workers is less than 1000 and tenth day in case the

number of workers is one thousand or more. All wages must be

paid in current legal tender. The wages can also be paid by

cheque or credited to the bank account of the employed persons

with the written authorization of the letter. The beneficiary under

the Act are, however those who are in receipt of wages below the

Rs 1600/- per month.

 

Enforcement of the Payment of Wages Act is primarily the

responsibility of the State Governments. Inspectors are

appointed under the provisions of the Act who conduct regular

inspections to ensure that the employers pay the wages timely

and correctly. The defaulting employers are advised to pay full

wages in time. In case of non-adherence to the advice, there are

provisions of prosecutions also. The Central Government is

37

responsible to enforce the Act only in mines, railways, oilfields

and air transport service by virtue of Section 24 of the Act.

 

Section 15 of the Act provides that the wages of an

employed person shall be paid to him without any deductions

except those authorized under the Act. Deductions permissible

from wages inter-alia relates to unauthorized absence from duty,

deductions for house accommodations, recovery of advances and

statutory dues etc. It also prevents the employers from making

any delay in the payment of wages. The employees can apply to

the authorities prescribed under the Act for redressal, if deduction

is made or there is delay in payment of wages. The authority

after giving opportunity may direct the employers to refund the

wages with compensation.

38

1.2 LITERATURE REVIEW

39

REVIEW OF RELATED LITERATURE

Importance of Employee Satisfaction

According to Marc Drizin, an employee loyalty specialist,

“Employees are assets with feet. They’re the only resource

companies have that make a conscious decision to return the

next day” (Modic, 2005).

The effects employee satisfaction has on an organization’s

business are numerous.Some of the most relevant and profitable

effects are described below.

Studies show that businesses that excel in employee satisfaction

issues reduce turnover by 50% from the norm, increase customer

satisfaction to an average of 95%, lower labor cost by 12% and lift

pretax margins by an average of 4% (Carpitella, 2003). Value is

created by satisfied, loyal and productive employees.

Employees who feel a sense of teamwork and common purpose,

a strong commitment to communication, and managerial

empowerment are most able, and willing, to deliver the results

that customers expect (“Employee Satisfaction”,2005)

Payment by result system

40

Henk Thierry (2000) "Payment by results" (PBR) vary

considerablement selon les pays, aussi bien en Europe de l'ouest

que de Test. Les donnees disponibles laissent entendre que les

pays de Test appliquent le PBR a la plupart de leurs travailleurs.

Parmi les pays de l'ouest, l'lrlande et le Royaume Uni se placent a

un niveau eleve, tandis que les Pays-Bas sont en queue de liste.

II est surprenant que des bilans des recherches sur l'efficacite

comparee du PBR et des systemés de salaire fixe ne soient pas

disponibles. Dans notre travail, les donnees sont dans la mesure

du possible presentees par systemés distincts a partir desquels

on discute les recherches portant sur l'efficacite relative du PBR.

Le "merit rating" est decevant. Le "Scanlon Plan" donne des

résultats encourageants. Toutefois, la plupart des donnees

interdis-ent d'inferer avec certitude sur les relations causales. On

insiste sur quelques-uns des domaines que la recherche se doit

d'explorer et sur les conditions favorisant I'elaboration et le choix

de strategies pertinentes de remuneration

LUMP-SUM BONUS SATISFACTION

MICHAEL C. STURMAN (1979) There are both practical and

theoretical reasons to measure lump-sum bonus satisfaction. The

practical need for such a measure stems from its increased use

as a component in modern compensation practices. Based on the

41

means of administering and allocating lump-sum bonuses, a

theoretical case can be built suggesting that lump-sum bonus

satisfaction constitutes a separate component of pay satisfaction

fitting into the Pay Satisfaction Questionaire's (PSQ) theoretical

framework. We develop 4 questions that complement the PSQ,

and use a series of techniques to test the convergent and

discriminant validity of the measure. Empirical evidence shows

that bonus-related items are more related to the lump-sum bonus

satisfaction measure than other PSQ dimensions. We also

demonstrate that the dimension of lump-sum bonus satisfaction

has a substantive relationship with attitudinal variables beyond

that provided by pay level variables and the PSQ. The

development of this measure should foster greater accuracy when

assessing pay satisfaction levels and the effects of lump-sum

bonus pay policies.

Benefit System and Benefit Level Satisfaction

Margaret L. Williams (1988) Compensation research

distinguishes between satisfaction with pay level and the system

that determines and delivers pay, but has neglected to make a

similar distinction with respect to benefits. We (1) develop a

measure of the benefit system satisfaction construct, (2) examine

42

the discriminant validity of benefit system satisfaction, and (3)

examine aspects of procedural and distributive justice and

transaction costs as they relate to benefit satisfaction.

Confirmatory factor analysis of a comprehensive pay satisfaction

measure supported a separate benefit system satisfaction

dimension. Structural equation models supported common and

unique antecedents of benefit system and benefit level

satisfaction, and supported their relationships with global job

satisfaction.

THE IMPACT OF FLEXIBLE BENEFITS ON EMPLOYEE SATISFACTION

ALISON E. BARBER (1978) This study examines the

attitudes of 110 employees of a financial service organization

before and after the introduction of a flexible benefit plan. A large,

statistically significant increase in benefit satisfaction was

observed following implementation, as was a smaller significant

increase in overall satisfaction. Employee understanding of the

benefit package also increased significantly. No significant

relationships were found between demographic characteristics

and responses to the flexible plan. Potential confounds due to the

complexity of the intervention are discussed. Future research is

called for to examine the processes through which flexible

43

benefits impact worker reactions and to examine the impact of

flexible benefits on behavioral responses such as attraction and

retention

The Role of Organizational Justice in Pay and Employee Benefit Satisfaction, and its Effects on Work Attitudes

Michel Tremblay (1985) The objective of our study is to

provide a complementary approach with regard to organizational

justice in the domain of compensation. It presents research

undertaken on a sample of 285 employees in three different

Canadian organizations. The results reveal that employees

distinguish clearly between pay satisfaction and benefit

satisfaction, and that distributive justice perceptions are better

predictors of pay satisfaction than procedural justice perceptions.

This result is reversed for employee benefit satisfaction:

Procedural justice perceptions are better predictors than

distributive justice perceptions. Lastly, the results show that

distributive justice perceptions with regard to pay play a more

important role than procedural justice in job satisfaction and

satisfaction with the organization.

44

PAY-FOR-PERFORMANCE PERCEPTIONS AND PAY SATISFACTION

ROBERT L. HENEMAN(1974) A study was conducted with

104 hospital employees to assess the relationship between pay-

for-performance perceptions and pay satisfaction. Unlike previous

research examining this relationship, a multi-item measure of pay-

for-performance perceptions and a multidimensional measure of

pay satisfaction were used. As hypothesized, the results indicated

a positive relationship between pay-for-performance perceptions

and pay-raise satisfaction, pay-level satisfaction, and overall pay

satisfaction even after the effects of salary level, salary increases,

performance ratings, job tenure, job satisfaction, and promotions

were controlled. The importance of gathering perceptual data on

characteristics of the pay system believed to have differential

relationships with the subdimensions of pay satisfaction are

discussed

45

2. INTRODUCTION OF THE COMPANY

Dhampur Today

The Dhampur Group with a combined capacity of 39500 TCD is

spearheaded by its dynamic Chairman, Mr.V.K.Goel. His

46

visionary innovativeness and emphasis on continuous R&D have

made the company a technological leader in sugarcane

processing and green energy solutions.

Starting from 300 TCD in 1933 the Dhampur Group has recorded

an impressive performance taking its crushing capacity of

sugarcane to 39500 TCD, with power co-generation capacity of

125 MW and alcochem capacity of 140 KLPD. Through its

successful pioneering efforts, the Dhampur Group directed the

industry’s development by introducing new technologies like

Fibrizors, Pressure Feeders, Fiber based single tandem, Pressure

Evaporation System with Falling Film Type Evaporator Bodies,

Vertical Continuous Pans etc. These innovations became the

mainstay of sugar technology in India.

Dhampur is one of the most integrated sugarcane processing

companies in India. In 2006-07, Dhampur's sugarcane co-

generation capacity was one of the largest in the country and it

has perhaps the highest ethanol manufacturing capacity relative

to it’s cane crushing capacity, in the country. It is also the first and

the largest producer of refined sulphurless sugar in the country.

Sugarcane processing units wield a tremendous impact on the

area of their location. We continue to play our role with absolute

commitment and watch with fascination and pride as even the

47

most backward areas where our units are located, slowly

transform into a beehive of activity, touching the lives of

thousands of people, now a part of the ever increasing Dhampur

family.

2.1 COMPANY PROFILE

Dhampur Sugar Mills Ltd - Company Profile

Company Profile: Dhampur Sugar Mills Ltd

Ticker: 500119

Exchanges BOM

2008 Sales 6,678,700,000

Major Industry Food & Beverage

Sub Industry Sugar Producers

Country INDIA

48

Business description

Dhampur Sugar Mills Ltd. The Group's principal activity is to

produce and sell sugar, chemicals, ethanol and power in India.

The Group operates in three segments Sugar, Chemicals and

Others. Sugar segment manufactures Double Refined White

Sulphurless Sugar, Plantation White Sugar and Raw Sugar.

Chemical segment produces Acetaldehyde, Acetic Acid and

Acetic Anhydride and Alcohol. It also produces eco friendly

energy using bagasses as the fuel. DSM Hitech Products Ltd., a

wholly owned subsidiary merged with in September 2007 and in

06-Jun--2007, Kashipur Sugar Mills Limited ceased to be a

subsidiary

Mission & Vision

 Dhampur stands tall with the collective confidence that our

farmers, our workers, our vendors and our stakeholders have

pledged with us. Their sense of belonging, their hopes and

expectations motivate us to perform better each time. Preserving

their trust is our corporate mantra.

49

 At Dhampur we have striven to realize a corporate environment

of collaborative effort and have worked towards continuous

improvement in every sphere of our activity. In our quest for

excellence we have given special consideration to our social

obligations, whether it is caring for the rural hinterland or the

environment we live in. A significant and endearing feat for the

Group is that some of its employees have been a part of the

Dhampur family for two to three generations.

Projections of the sugarcane based Industry in India are

exceptionally promising and Dhampur is totally geared up to think

beyond the cube:

           To provide energy alternatives to an energy-starved

country through co-generation and ethanol.

          To value add on our product portfolio

          To maximize the potential of the agro industry in India.

          To continuously bring down the cost of conversion.

          To encourage creativity and resourcefulness, and focus

on continuous R&D.

          To optimize the value of stakeholder investments with a

continuous improvement in financial performance.

          To diversify and protect the bottom-line during industry

downturn.

50

          To attain the highest level of accountability, corporate

governance and shareholder value.

 

In a country where agriculture is the predominant activity,

sugarcane processing units wield a tremendous impact on the

area of their location. We continue to play our role with absolute

commitment and watch with fascination and pride as even the

most backward areas where our units are located, slowly

transform into a beehive of activity, touching the lives of

thousands of people, now a part of the ever increasing Dhampur

family.

Area of Study

I covered area in Dhampur sugar mills for collection data moreover. I had visited various departments head to obtain the stratified data

2.2 HISTORY OF THE COMPANY

The Dhampur Group began its operations at Dhampur, Uttar

Pradesh in 1933 with a crushing capacity of 300 TCD. The current

capacity of Dhampur Group is 39,500 TCD. Its products include

51

Power, Ethanol, Chemicals, Refined Sugar and Plantation White

Sugar.

Leadership begins with a vision

Lala Ram Narain ji [1880 – 1943], founder of the Dhampur Group,

took on the task of supporting his entire family at a very young

age and shouldered his responsibilities with fortitude and

confidence. During this period he worked with a forest contractor

but the craving to press forward and accomplish, burnt deep

within his heart. He soon spotted an opportunity in supply of

wooden sleepers, for laying new railway tracks and boldly struck

out on his own. His determination defied logistics and laid the

foundations of the Dhampur Group.

From such modest beginnings, he hand-crafted the destiny of the

corporate house that today, directly and indirectly, provides

52

employment and livelihood to a large number of individuals and

families of the rural India.

In the early 1930’s, while the strategists debated over choice of

role models on which to shape the Indian economy, Lala Ram

Narain ji anticipated the need for industrialization. The outcome of

his foresight was investment in two sugar mills – one at Dhampur

and the other as a 50% partner, at Bareilly, in Uttar Pradesh.

The Dhampur Sugar Mill was commissioned in 1933.

Shri Murli Manohar ji [1916 – 1964], eldest son of Lala Ram

Narain ji took up the baton at an early age to carry forward the

vision and legacy of his father. Even in face of a youth spent in

comparatively difficult circumstances, the indomitable will he

inherited from his father manifested itself in 1947 when the Indian

Sugar Industry was passing through a challenging phase.

 

He resisted efforts to divest the Dhampur unit and took over the

Managing Agency of the factory agreeing to pay a fixed dividend

to his partners. He accomplished this task with great élan and

successfully turned around the fortunes of the Dhampur factory.

He passed away at the young age of 48 but the path for the future

generations had already been etched.

53

2.3 RECENT ACHIEVEMENT’S

Balrampur chini acquires Dhampur sugar unit

Mumbai: Balrampur Chini Mills is acquiring an integrated sugar unit of Dhampur Sugar Mills at Rauzagaon in Uttar Pradesh in an all-cash deal for Rs182 crore. The Rauzagaon unit of Dhampur Sugar has a crushing capacity of 7,500 tonnes crushed per day (TCD) and 12 mw cogen power unit. Balrampur Chini has a crushing capacity of 29,000 tcd at its three units at Tulispur, Balrampur and Babhnan in Uttar Pradesh. There are plans for scaling up capacity to 47,000 tcd by the 2006-07 crushing season.

Dhampur Sugar Mills is planning to reduce its high-cost debt, through the sale and save huge amounts by way of interest cost. The interest outgo for the entire group is of the order of Rs40 crore per annum. Through this sale the company's balance will look better with the inflow of Rs182 crore from the sell-off. Dhampur is also planning to expand its power production. Dhampur has become almost a zero-debt company, will announce its borrowing and expansion plans in the next two weeks.

Reacting to the development, Balrampur Chini scrip closed higher at Rs88.70 against its previous close of Rs84.30, down 4.40 per cent on the BSE. Dhampur Sugar Mills closed at Rs157.70 up 15.15 per cent.

The Dhampur Sugar Mills, the largest sugar company in the

country (cap: 350,000 tpa) intends to sell two of its sugar units

and a paper mill in order to reduce its debt obligations. It expects

54

Rs 80-100 cr from the sale and will use the funds to pay off debts

worth Rs 240 cr. The company has put its expansion plans on

hold and is planning to restructure its financials, aiming at a debt

equity ratio of 1:1 from 1:1.5 at present. DSML is also scouting for

a joint venture partner for its co-generation power unit.

Dhampur Launches Sulphurless Sugar

Chandigarh,May,24

Dhampur Sugar Mills, one of the largest producers of sugar in

India, today announced the launch of “Dhampure” sugar which is

double refined and is the only sugar in India where no sulphur is

used in the manufacturing process which makes it free from all

toxins.

2.4 Brand Value

BRAND : DHAMPURE  

55

 

With the belief that the Indian consumer today is as quality and

health conscious as any other consumer today the world over,

Dhampur Sugar Mills made an initiative to produce a sugar

comparable to the high standards of the western countries, in

India. Dhampur embarked on the project in 1996, under the aegis

of the Sugar Technology Mission to make sugar that would be

sparkling white, pure and healthier. Dhampur perfected the

technique and the result was India's first double refined

sulphurless sugar sold under it’s brand Dhampure.

Dhampure is a better sugar simply because its processing

continues long after that of ordinary sugar has stopped.

 

         The secret behind Dhampure's purity is the unique Defeco

Remelt Process, in which the sugar after it has crystallized is

melted all over again and all the impurities are removed without

the use of sulphur.

 

56

         Since no sulphur is used in the manufacturing of

Dhampure sugar, it meets even the strict standards of the

European Union on sulphur content.

 

         The double refined Dhampure sugar has no impurities, so

its crystals have natural translucent white colour and don't require

bleaching with sulphur-dioxide.

 

         Dhampure is packed under a controlled environment,

untouched by hand, assuring impeccable hygiene.

 

2.5 CURRENT STATUS OF THE COMPANY

Dhampur Sugar Mills Limited is situated on the State highway

near the Dhampur Railway Station. This sugar complex is the

most integrated of the facilities operated by the Dhampur Group

with production capacities of 15000 TCD for Plantation White

Sugar, 170 KLPD for Ethanol and other Ethanol based Chemicals

and a Co-generation capacity of 60 MW – the largest in India in a

single unit. Dhampur is the first in the world to implement 105

kg.cm2 boiler and turbine and has perhaps the most efficient

cogeneration system in the world. It has also been the most

57

consistent and profitable enterprise and has contributed to the

steady growth of the Group. It epitomizes the synergy in the

diversification program of Dhampur.

 

During the 2007-08 season, the unit was operational for 127 days

and crushed 143.48 lac quintals of sugarcane, thereby witnessing

a daily increase of 2.21 % over the previous season. The Unit

also showed an average increase of 0.26 in recovery.

 

The Dhampur unit has undertaken innumerable revolutionary

changes in terms of technologies, manufacturing processes and

practices and various allied systems. Dhampur has introduced

from this unit, advanced machinery concepts like Fibrizors, 5 and

8 Roller Mills, Toothed Roll Pressure Feeder and Grooved Roll

Pressure Feeder. The unit also deploys Hydraulic Drives that are

used along with the Rollers. This results in substantial saving of

power. The unit targets to reduce power and steam consumption

while increasing it’s distillery and chemical capacity.

 

Along with sugar produced in large quantities, the unit also

manufactures high value industrial chemicals from molasses.

Sugarcane bagasse is used for producing power for internal

consumption and for sale to the State Electricity Board.

58

 

The new cogeneration plant uses boilers at 105 kg/cm2 pressure

and extraction condensing turbines. For the first time by any

sugar company in India and perhaps the world, Dhampur is using

boilers at 105 kg/cm2 for steam generation with bagasse as fuel.

This arrangement has resulted in very high energy efficiency,

leading to reduction in the consumption of steam per MW of

power generation.

 

Sports and social activities are being keenly promoted here. This

facility has, perhaps, one of the best sport complexes available in

any sugar mill in India, with emphasis on Squash. A development

program in sports, lead by a team of able instructors, channelize

the energies of our employees and their children, into a healthy

and productive outlet.

 

The sports complex at Dhampur unit features an air-conditioned

squash court, indoor badminton courts, an indoor swimming pool,

table tennis facilities, a gymnasium and a volleyball court.

59

3. OBJECTIVE OF THE STUDY

a) Employees satisfaction regarding the salary, wages and

other payments.

b) To ascertain the compensation and wages provided by

DSM group.

c) To find out the policy of compensation.

d) To study the awareness of the employees regarding

incentive plans and compensation policies.

3.1 SCOPE OF THE STUDY

This report will present a view or the “compensation and the

method of wage”. Payment the various methods adopted by

Dhampur sugar mill employee satisfaction the present scenario

of Dhampur sugar mill and “the power of integration “. The

current growing trends and present status adopted by DSM

group.

60

4. RESEARCH

METHODOLOGY

61

Research methodology is systematically solving the

research problem. It may be understand as science of studying

how research is done scientifically. In it we study the various

steps that are generally adopted by the researcher in studying his

research problem along with logic behind them.

1)TYPE OF RESEARCH

This is descriptive research .as this research help in knowing

about particular item or a group of item in different describes

the states as it exist as it present.

2)SCOPE OF THE STUDY

This report will present a view or the “compensation and the

method of wage”. Payment the various methods adopted by

62

Dhampur sugar mill employee satisfaction the present scenario

of Dhampur sugar mill and “the power of integration “. The

current growing trends and present status adopted by DSM

group.

3)SAMPLE SIZE

The sample size under taken by me to conduct the survey was 100 employees.

4) DATA COLLECTION & SOURCE

The data collected in this research is first hand so it is primary

data .It is collected directly from the respondent through

interviews questionnaire.

Which was conducted in the DSM moreover secondary data

obtained from the past records books and various acts (bonus,

PF, gratuity and salary acts etc) website www. Dhampur .com.

63

5) DATA COLLECTION METHOD

The data is collected by primary and secondary means primary

through questionnaire based and secondary data through its

past records and bulletins various acts & www.dhampur.com .

The data collected by me is primary in nature i.e the first Hand

data as my main focus concerned there because it’s a better

scope of getting required information so questionnaire method

interview and observation method is adopted as also.

The secondary data has

been obtained from past records bulletins and periodicals and

sites of DSM group.

6)DATA COLLECTION INSTRUMENT

Primary and secondary

7)SAMPLE TECHNIQUES

64

Random

8) DATA ANALYSIS TECHNIQUES

Analysis of data is done through graphical method.

.

5. DATA ANALYZES

&

INTERPRETATION

65

1) Preferable feature by workers or employees (%)

Features employees (%)Salary package 50Retain earnings 30Compensation 12Incentive plans 08

Analysis 1: - The data analysis about this survey mostly employees preferred salary

packages with more benefits e.g. bonus, retain earning, compensation etc. In this

organisation mostly employees preferred basic salary packages improved 30%, and

20% prefer retain earnings,

66

22% employees prefers compensation, 19 % prefer bonus and only 9% employees

preferred scheme of the organisation.

2) Knowing (%) of Dhampure brand

2) Employees participation (%) in decision making

InvolvementEmployees participation (%)

More involvement 18

Normal involvement 32

less involvement 28

No involvement 22

67

18

3228

22

05

101520253035

Mor

ein

volv

emen

t

Norm

alin

volv

emen

t

less

invo

lvem

ent

Noin

volv

emen

t

Series1

Series2

Analysis2:-The above results reveal that 32% of the employees

have normal involvement in decision making of the organisation.

28% of the employees have less involvement in decision making.

Thus this means that different employees have different point of

view.

3) Employees satisfaction towards salary package

68

Satisfaction level

Employees Satisfaction (%)

Highly Satisfied 34

Satisfied 29

Average 25

Less Satisfied 12

Analysis3:-The above results reveal that 34% of the employees

are highly satisfied. 29% of the employees are satisfied 25%

employees are average and 12% employees are less satisfied

with the salary package of the organisation.

69

4) Employees awareness (%) about compensation package

Level of awareness Employees awareness%

Aware 42

Partial 40

Not aware 18

Analysis4:- The above result reveals that 42% employees are

aware about the compensation package 40% employees are

partial and 18% employees are not aware about the

compensation package of the organisation.

4240

18

010

203040506070

Aw

are

Par

tial

Not

aw

are

70

5) Is Company provide fringe benefits

Employees(%)

Yes 80

No 20

Analysis5:- The observe result reveals that 80% employees

feels that company provided fringe benefits and 20% employees

feels that company not provided fringe benefits to them.

Likert Scaling

20

80

0 20 40 60 80

Yes

No

71

Are you satisfied with the Salary package that you have got?

Satisfaction level

Employee Satisfaction (%)

Highly Satisfied 25

Satisfied 23

Average 27

Less Satisfied 14

The above result revels that 34% of employees are average

satisfied with the salary package. This means that employees

satisfaction level is average. 29% of employees are highly

satisfied with the salary package.

72

34 29 25 12

4 3 2 1

Highly Satisfied average satisfied less

satisfied

Satisfied

100*4=400 Highly satisfied

100*3=300 Satisfied

100*2=200 average satisfied

100*1=100 less satisfied

25*4 +23*3 +27*2 +14*1 = 237

Here the score is 237 that lies between 200 & 300, So the

employees are satisfied with the salary package of the

organisation

73

6. FINDINGS

&

LIMITATIONS

74

6.1 FINDINGS

1. The Dhampur group Starting from 300 TCD in 1933 the Dhampur Group has recorded an impressive performance taking its crushing capacity of sugarcane to 39500 TCD.

2. The Dhampur group power co-generation capacity of 125 MW of power from renewable resources which do not contribute to greenhouse gasses.

3. The Dhampur Group directed the industry’s development by introducing new technologies like Fibroses, Pressure Feeders, Fiber based single tandem, Pressure Evaporation System with Falling Film Type Evaporator Bodies, Vertical Continuous Pans etc. These innovations became the mainstay of sugar technology in India.

4. Dhampur is one of the most integrated sugarcane processing companies in India.

5. Dhampur's sugarcane co-generation capacity was one of the largest in the country and it has perhaps the highest ethanol manufacturing capacity relative to it’s cane crushing capacity, in the country.

6. It is also the first and largest producers of refined and

sulphur less sugar in the country.

75

7. It is the number one sugar industry in India.

8. Dhampur encourages use of renewable fuels, which not only

save national resources but also eco–friendly

6.2 LIMITATION

1. Actually there is no limitation in sugar industry because in

the production of sugar by product molasses , bagasse , and

ethanol are sold at a good price there is no waste product.

2. The sugar mills is in loss till last year because the rate of

sugar-cane is fixed by state government and rate of sugar is

also fixed by government so government makes farmers

happy by increasing the rate of sugar-cane every year and

sugar rate is constant so mills come in loss and salary of

workers also fixed by government then factory have to obey

the rules and they comes under loss.

76

7. SUGGESTIONS

77

EASY METHOD

Payroll system is one which is easy to understand and simple

to calculate. An average worker must be able to know the

incentives offered and he should be able to calculate his own

earnings. The linkage between pay and performance should be clear.

RESULT BASED WAGES

Performance appraisal should be done on the organization by

which the organization able to

Know the performance of the employees and according to

their performance wages salary

And incentives should be given.

HEALTHY ENVIRONMENT

Healthy environment should be provide to workers by which

employees feels better and they will contribute more to

dhampur sugar mills.

78

WORKERS PARTICIPATION IN THE

ORGANISATION

Involvement of employees will ensure that they fully understand

the objective and mechanism of the plan.

WORKERS PARTICIPATION IN THE PROFIT

Worker must be provided a share in the profit also addition to

their wages this create a sense of belongingness among

workers and the will contribute maximum to DSM.

IMPROOVE THE QUALITY OF SUGAR

The workers will bother more about the number of unit

produced rather than their quality. Their main target to produce

14 lakhs packets of sugar in a season they are not very much

concerned about the quality. This results in the production of sub

79

standard goods unless other wise more supervisors are appointed

to keep watch on quality.

ECONOMY

The policy of maximum output at the minimum cost should be

adopted this method should be economical and competitive.

TECHNOLOGY UPGRADATION

The organization should adopt the new technology to the

market.

80

8. CONCLUSION

Wage and salary administration affect level of employee

commitment to the organization.

A good compensation package is important to motivate the

employees to increase the organizational productivity.

The most competitive compensation will help the

organization to attract and sustain the best talent

. Unless incentives is provided no one will come and work for

the organization. Thus, incentive plans helps in running an

organization effectively and accomplishing its goals

81

BIBLIOGRAPHY

Referred Websites

o http://www.dhampur.com

o http://www.hrguid.com

o http://www.google.com

o http://findarticle.com/p/articles/mi

o http://www.hewittassociates.com

o http://www.globalservicesmedia.com/content/

general.asp

Referred Books

Ashwathappa, P. Human resource management

82

Joshi, roshi. Human resource management kalyani

publishers ,new delhi

Kothari, C.R, Research methodology, methods &

techniques, new age internati,onal ltd. Publishers,

Second edition, P.no27-42

Gupta, S.P. Stastical methods and techniques, Sultan

Chand & Sons. Educational Publishers, New

Delhi,P.no237-241,628-629

Jain,T.R, Statistics for MBA,V.K.(India) enterprises, New

Delhi.,edition2006-07,P.no 135-137

Referred magazine

1. Sampling, Business Research, June 2005, pp 31

Referred Articles

1. Sturman, M.C., Short, J.C. (2000), "Lump-sum bonus satisfaction: testing the construct validity of a new pay satisfaction dimension", Personnel Psychology, Vol. 53 pp.673

2. Heneman, R.L., Greenberger, D.B., Strasser, S. (1988), "The relationship between pay-for-performance perceptions and pay satisfaction", Personnel Psychology, Vol. 41 pp.745-59.

3. Aleson E. Barber (1985), “ Impect of flexible benefits on employees satisfaction Research in Personnel and Human Resources Management, Vol. 3 pp.115-39.

83

4. Henk Thierry (1974), " Payment by Results Systems ", Industrial Relations, Vol. 13 pp.78-9.

5. Michel Trembley . (1973), " The Role of Organizational Justice in Pay and Employee Benefit Satisfaction, and its Effects on Work Attitudes Personnel Psychology, Vol. 26 pp.503-20.

6. Marget Williams (1961), “ Benefit System and Benefit Level

Satisfaction” Wiley, New York, NY,

ANNEXTURE

84

QUESTIONNAIRE

Workers Satisfaction

Regarding salary package, compensation,bonus etc.

A case study of Dhampur sugar mills ltd

Name : _________________

S/O||D/O : ______________________

Age : ___________________________________________

85

Occupation : ______________I

Address : ___________________________________________

________________________________Ph.________

1. What is most preferable feature you consider?

Salary package incentive plans

Retain earnings

Compensation

2. Employees participation in the organization.

More involvement Normal involvement

Less involvement No involvement

3. Are you satisfied with the salary package that you have got?

Highly satisfied Satisfied

Average Less satisfied

4. Are you aware about the compensation package of the organisation?

Aware Impartial Not aware

5. Whether the company provide fringe benefits?

86

Yes No

GRATUITY FORM

FORM-1

[SEE SUB-RULE (1) OF RULE 7]

Application for gratuity by an employee

To,

(Give here name or description on the establishment with full

address)

Sir/Gentleman,

87

I beg to apply for payment of gratuity to which I am entitled

under subsection (1) of section 4 of the payment of the gratuity

Act. 1972, on account of my superannuation / retirement /

retirement after completion of not less than five years of

continuous service / total disablement due to disease with effect

from the.

Necessary particulars relating to my appointment in the

establishment are given in the statement below.

STATEMENT

Name of full

Address of full

Department/Branch/Section where last employed

Post held with Ticket No. or Serial No., if any

Date of appointment

Date and cause of termination of service

Total period of service

Amount of wages last drown

Amount of gratuity claimed

Kind of employment

I was rendered totally disabled as a result of

(here give the details of the nature of disease of accident)

88

The evidence/witness in support of my total disablement are

as follows

(here give details)

As the amount of gratuity payable is less then rupees one

thousand, I shall request you to arrange for payment of the sum

due to me by postal Money Order at the address mentioned

above after deducting postal money order at the address

mentioned above after deducting postal money order commission

there from.

Place: your’s

faithfully,

Date: signature/thumb

impression

Of the

applicant employee

FORM’J’

[See Sub Rule (2) of Rule 7]

APPLICATION FOR GRATUITY BY A NOMINEE

To,

89

[Give here the name or description of the establishment with

full address.]

Sir/Gentlemen,

I beg to apply for the payment of gratuity to which I am

entitled under sub-section (1) of the payment of gratuity Act, 1972

as a nominee of late……………………………..............................

(Name of the employee) who was an employee of establishment

and died on the ……………………

The gratuity is payable on account of the death of the aforesaid

employee while in service .I superannuation of the aforesaid

employee on ………………………. After completion of …………..

Years of service total disablement of the aforesaid employee due

to accident or disease while in service with effect from the

………………………………necessary particulars relating to my

claim are give in the statement below:

STATEMENT

1. Name of Applicant Nominee

2. Address in full of the Applicant nominee.

3. Martial status of the Applicant nominee.

Unmarried / married / widow / widower.

90

4. Name in full of the employee.

5. Marital status of employee.

6. Relationship of the nominee with the employee.

7. Total period of service of the employee.

8. Date of appointment of the employee.

9. Date and cause of termination of the service

10. Department / Branch / Section where the employee last

work.

11. Post last held by the employee with ticket No or Serial

No. if any.

12. Total wages last drawn by the employee.

13. Date of death and evidence/ witness as proof of death

of the employee.

14. Reference No. of recorded nomination , if available.

15. Total gratuity payable to the employee.

16. Share of gratuity claimed.

17. Kind of employment.

1. I declare that the particulars mentioned in the above

statement are true and correct to the best of my

knowledge and belief.

2. Payment may please be made in / crossed or open

bank cheque.

91

3. As the amount payable is less than rupees one

thousand I shall request you to arrange for payment of

the sum due to me by postal money order at the

address mentioned above after deducting postal money

order commission there from.

Place Yours

Faithfully,

Signature/Thumb

Impression

Date of applicant

nominee

92