internship project of hero cycles pvt ltd

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UNIVERSITY OF HYDERABAD

SCHOOL OF MANAGEMENT STUDIES

PROJECT REPORT ON

PAYROLL MANAGEMENT AND WELFARE MEASURES OF HERO CYCLES, BIHTA,

PATNA

Submitted By:

Kumar Anubhav Deep

Masters of Business Administration (MBA)

School of Management Studies, Hyderabad Central University

Hyderabad, Telangana

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ACKNOWLEDGEMENT

Simply put, I could not have done this work without the help and support I received from the HERO CYCLES, PATNA. Everybody is very friendly and cheerful and no one could never feel stressed out or burned out in such a wonderful work culture. First of all I would like to thank my guide Mr.Nirbhay Singh Nahar (Senior HR Manager) Hero Cycles, Patna and Mr.Rajesh Kumar (General Manager, Operations), Hero Cycles, Patna. He supported me throughout the project with utmost co-operation. I am very much thankful to you sir, for sparing your precious and valuable time for me and for helping me in doing this project. I express my gratitude to my faculty guide Dr. Sapna Singh Mam, Associate Professor, School of Management Studies, for his valuable guidance, which helped me in preparing this project report. I place a deep sense of gratitude to my family members and my friends who have been constant source of inspiration during the preparation of this project work.

Kumar Anubhav Deep

MBA Second Semester

(14MBMA63)

University Of Hyderabad

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DECLARATION

This is to certify that the project titled “Payroll Management and Welfare

Measures of Hero Cycles, Bihta,Patna ”has been done and is a bonafide

work completed by Kumar Anubhav Deep(Enrolment Number

14MBMA63), in partial fulfilment of the requirement of the Masters of

Business Administration (MBA).

I hereby declare that this project work is the result of my own efforts which

I made in doing work in the bank and has not copied from any other source.

I have taken help from various sources to gather necessary information to

continue my project and the research on the above topic. Some of the

references from which information is taken are given in the reference

section of this report.

This work has not been submitted earlier at any other university or institute

for the award of the degree.

Kumar Anubhav Deep

14MBMA63

University Of Hyderabad

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Index

Executive Summary…………………………………………………………….7

Introduction of Hero Cycles…………………………………………………11

Hero Group…………………………………………………………………………15

Need, Objectives and Limitations of study…………………………..24

Review of literature of Hero Cycles …………………………………….26

Research Methodology of Hero Cycles………………………………..43

Analysis and Interpretations…................................................46

Payroll and Attendance System in Hero Cycles……………………60

Introduction of Welfare Measures in Hero Cycles……………….63

Hero Cycles Production Process ………………………………………...66

Findings and Suggestions…………………………………………………….67

Conclusion…………………………………………………………………………..71

Bibliography…………………………………………………………………………72

Questionnaires…………………………………………………………………….74

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Certificate

This is to certify that the project entitled “Payroll Management and

Welfare Measures in Hero Cycles” submitted by “Kumar Anubhav Deep”

in partial fulfilment of the requirements for the award of “Master in

Business Administration” at “University Of Hyderabad” is an authentic

work carried out by him under my supervision and guidance.

To the best of my knowledge the matter embodied in the project has not

been submitted to any other university/ institute for the reward of any

degree.

Faculty Guide

(University Of Hyderabad)

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EXECUTIVE SUMMARY

PAYROLL MANAGEMENT IN HERO CYCLES

What is payroll management?

Payroll Management can be defined as the administration of the financial

record of employees' salaries, wages, bonuses, net pay, and deductions.

An employer, regardless of the number of workers they employ, must

maintain all records pertaining to payroll taxes (income tax withholding,

Social Security and federal unemployment tax) for at least four years after

the tax becomes due or is paid, whichever is later. Altogether, 20 different

kinds of employment records must be kept just to satisfy federal

requirements.

Income Tax Withholding Records

1. Name, address, and Social Security number of each employee

2. Amount and date of each payment for compensation

3. Amount of wages subject to withholding in each payment

4. Amount of withholding tax collected from each payment

5. Reason that the taxable amount is less than the total payment

6. Statements relating to employees' nonresident alien status

7. Market value and date of noncash compensation

8. Information about payments made under sick-pay plans

9. Withholding exemption certificates

10. Agreements regarding the voluntary withholding of extra cash

11. Dates and payments to employees for non-business services

12. Statements of tips received by employees

13. Requests for different computation of withholding taxes

Social Security (FICA) Tax Records

1. Amount of each payment subject to FICA tax

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2. Amount and date of FICA tax collected from each payment

3. Explanation for any difference

Federal Unemployment Tax (FUTA) Records

1. Total amount paid during calendar year

2. Amount subject to unemployment tax

3. Amount of contributions paid into the state unemployment fund

4. Any other information requested on the unemployment tax return

Payroll for a small firm is a simple task with a good one-write system. Any

office supply store can show samples of one-write systems, which most

accountants recommend because they reduce errors and save time in

making payroll entries.

Payroll management can be quite a challenge for the new business

owner. There are many federal and state laws regulating what they have

to track related to payroll. Failure to do so could result in heavy fines--or

worse.

Many business owners use outside payroll services. These companies

guarantee compliance with all the applicable laws. This keeps the

business owner out of trouble with the law and saves time that can be

devoted to something else in the business.

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PAYROLL MANAGEMENT SYSTEM IN HERO

CYCLES

Effective software systems contain two basic systems operating in

conjunction: an evaluation system and a feedback system. The main aim of

the evaluation system is to (if any). This gap is the shortfall that occurs

when performance does not meet the standard set by the organization as

acceptable. The main aim of the feedback system is to inform the employee

about the quality of the software provided by the organization. (However,

the information flow is not exclusively one way. The Technology team also

receives feedback from the employee about software problems, etc.)

One of the best ways to appreciate the purposes of performance appraisal

is to look at it from the different viewpoints of the main stakeholders: the

employee and the organization. Employee Viewpoint From the employee

viewpoint, the purpose of software used to calculate payroll process in

four-fold:

(1) Tell me what you want me to do

(2) Tell me how well I have done it with software used in the organization

(3) Help me improve my software skills

(4) Reward me for doing well.

Organizational Viewpoint From the organization's viewpoint, one of the

most important reasons for having software is to establish and uphold the

principle of accountability. For decades it has been known to researchers

that one of the chief causes of organizational failure is "non-alignment of

responsibility and accountability." Non-alignment occurs where employees

are given responsibilities and duties, but are not held accountable for the

way in which those responsibilities and duties are performed. What

typically happens is that several individuals or work units appear to have

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overlapping roles. The overlap allows - indeed actively encourages - each

Individual or business unit to "pass the buck" to the others. Ultimately, in

the severely non-aligned system, no one is accountable for anything. In this

Event, the principle of accountability breaks down completely.

Organizational failure is the only possible outcome. In cases where the non-

alignment is not so severe, the organization may continue to function,

albeit inefficiently. Like a poorly made or badly tuned engine, the non-

aligned organization may run, but it will be sluggish, costly and unreliable.

One of the principal aims of performance appraisal is to make people

accountable. The objective is to align responsibility and accountability at

every organizational level.

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INTRODUCTION OF HERO CYCLES

HERO-There is always a better way

Hero", the brand name symbolizing the steely ambition of the Munjal

brothers, came into being in the year 1956. From a modest manufacturer

of bicycle components in the early 1940's to the world's largest bicycle

manufacturer today, the odyssey was fuelled by one vision - to build long-

lasting relationships with everyone, including workers, dealers and

vendors. This philosophy has paid rich dividends through the years. Hero, a

name synonymous with two wheelers in India is today a multi-unit, multi-

product, geographically diversified Group of companies. Through fully

integrated operations, the Munjalsroll their own steel, make critical

components such as free wheels for their bicycles, and have the foresight

to simultaneously diversify into myriad ventures, like product designing, IT

enabled services, finance and insurance, just to name a few. Like every

success story, Hero's saga contains an element of spirit and enterprise; of

achievement through grit and determination, coupled with vision and

meticulous planning. Throughout its success trail, the Hero Group and its

members have displayed unwavering passion of setting higher standards

for themselves and delivering simply the best to their customers. The Hero

Group philosophy is:

"To provide excellent transportation to the common man at easily

affordable prices and to provide total satisfaction in all its spheres of

activity."

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Thus apart from being customer-centric, the Hero Group also provides its

employees with a fine quality of life and its business associates with a total

sense of belonging.

"Engineering Satisfaction" is the prime motive of the Hero Group and it has

become a way of life and a part of the work culture of the Group.

This is what drives the Group to seek newer vistas, adopt faster technology

and create quality driven products to the utmost satisfaction of customers,

partners, dealers and vendors. Today the Hero Group has a number of

accolades and achievements to its credit yet consumer requirements and

newer technologies provide fresh challenges every day, and at Hero the

wheels of progress continue to turn...

Vision

"We, at the Hero Group are continuously striving for synergy between

technology, systems and human resources to provide products and

services that meet the quality, performance, and price aspirations of the

customers. While doing so, we maintain the highest standards of ethics and

societal responsibilities, constantly innovate products and processes, and

develop teams that keeps the momentum going to take the group to

excellence in everything we do."

Mission

"It’s our mission to strive for synergy between technology, systems and

human resources, to produce products and services that meet the quality,

performance and price aspirations of our customers. While doing so, we

maintain the highest standards of ethics and societal responsibilities.

Values Customer Focus

We believe in walking the extra mile in delivering quality to meet the

customers' expectations, both expressed and implied. We do this for both

external and internal customers.

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Innovation and Agility

We continuously seek ways to improve our services and processes,

anticipating changes and responding proactively.

Individual Dignity and Team Work

We treat people with dignity, care for our colleagues, collaborate without

boundaries and contribute wherever we can.

Ethics and Integrity

We are fair in our dealings, respect the law of the land and follow the

highest level of intellectual, moral, financial and professional conduct.

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HISTORY OF HERO CYCLES

Hero Cycles is a product of this philosophy. The philosophy that installs

commitment, team work and foresight. Hero’s colossal journey started

before independence. The four Munjal brothers, hailing from a small town

called Kamalia, now in Pakistan, are the men who are behind the mission.

Brotherhood apart, what knit the men together was the wealth of will,

integrity, ambition & determination. In the year 1944, they decided to start

a business of bicycle spare parts in Amritsar. It is modest beginning and the

next 3 years saw the business grow rapidly. But the dark clouds of partition

eclipsed their plans of the future. With renewed vigor and optimism, the

operational base was shifted to Ludhiana. By 1956, the brothers had begun

manufacturing key components of bicycles and as a logical way forward,

began to assemble the entire cycle at their manufacturing plant in

Ludhiana. In the early days, the plant had a capacity for 25 cycles per day.

Over the next few years, the Bicycle Unit started growing in stature and

size, attracting skilled engineers, technocrats, administrators and

entrepreneurs. From a modest beginning of mere 639 bicycles in the year

1956, Hero Cycles produced over 18500 cycles a day today, the highest in

global reckoning. With the 48% share of the Indian market, this volume has

catapulted Hero in the ‘Guinness Books of World Records’ in 1986 and edge

over global players is being maintained. A tiny acorn has now become a

mighty Oak. From cycle to two - wheelers were a natural step, and the Hero

Group came into being. The Hero Group, today, is a vast conglomerate of

companies, either in the form of collaborations, joint ventures or fully

owned subsidiaries, with more than Rs. 10000 Crore turnover annually.

Hero Group, besides being the world’s largest manufacturers of bicycles,

motorcycles and chains to this date, has diversified into newer segments

like Information Technology, IT Enabled Services and Financial Services.

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HERO-GROUP

The Hero Group has done business differently right from the inception

and that is what has helped us to achieve break-through in whatever

product category we have ventured in. The Group’s low key, but focused,

style of management has earned dealers, as also worldwide recognition.

The growth of the Group through the years has been influenced by the

number of factors. The Hero Group through the Hero Cycles Division was

the first to introduce the concept of just-in-time inventory. The Group

boasts of superb operational efficiencies. Every assembly line worker

operates two machines simultaneously to save time and improve

productivity. The fact that most of the machines are either developed or

fabricated in-house, has resulted in low inventory levels. In Hero Cycles

Limited, the just-in-time inventory principle has been working since the

beginning of production in the unit and is functional even till date. The

vendors bring in the raw material and by the end of the day the finished

product is rolled out of the factory. This is the Japanese style of

production and in India. Hero is the first company to have mastered the

art of the just-in-time (JIT) inventory principle.

The company has fulfilled its social obligation, charged with their mission

nationalistic fervor, the Hero Group has always been actively involved in

Social and Medicare activities, such as providing medical facilities for the

under privileged. Hospitals, Heart Research Foundation and Mobile

Medical Vans help to fulfill this objective. Hero also runs schools and

colleges, maintains parks and public facilities.

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Global Gearing > Exports

Hero Cycles

Hero Honda Motors

Hero Motors

Hero Corporate Service Limited

(Hero Mindmine, Munjal eSystems, NsurePlus)

Hero Management Service Limited (HEROITES)

Munjal Showa Limited

As early as in the 1960s' very few Indian bicycle manufacturers were

interested in exports. However, the Hero Group's foray into the overseas

markets in 1963 pioneered Indian exports in the bicycle segment. It was a

move prompted essentially by the need to remain attuned to the global-

market. While initial exports were restricted to Africa and the Middle

East, today more than 50 percent of the exports from

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Hero Cycles Limited meet the demands of sophisticated markets in

Europe and America. This is primarily because of appropriate product

development and excellent quality that Hero offers. The Group has been

continuously upgrading technology and has set up special units - like

Gujarat Cycles Limited (now Munjal Auto Industries Limited), to meet

international quality standards.

Munjal Auto Industries Limited has state-of-the-art equipment’s imported

from Europe and Taiwan. The unit is designed to match international

standards and is an Export Oriented Unit (EOU). Its products are supplied

to the International Markets of developed countries like United Kingdom,

Germany, and France etc.

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Dr. Lall was the elder brother, and after family property division Cycles

division came under control of the youngest Brother Mr. O.P.Munjal, who

contributed in the following manner:

Mr. O P Munjal, Chairman – Hero Cycles Ltd

Date of

birth : 26th August 1928

Residing

place : Ludhiana (Born at Kamalia in Pakistan)

Education : Undergraduate (from the District

Kamalia in Pakistan)

Mr. O P Munjal has been the Chairman of the group’s flagship company

Hero Cycles Ltd. He has also been on the Board of Directors of the group

companies, which includes – Hero Honda Motors Ltd, Hero Motors Ltd,

Munjal Kiriu India (P) Ltd and ZF Hero Chassis Systems.

Mr. O.P Munjal has been truly a visionary and a first generation

entrepreneur. He has spearheaded the entire initiative of transforming

Hero Cycles from a local player to an international brand. Under his

leadership the group’s business and revenues have grown manifolds. Today

the group has emerged as a large conglomerate with diversified interests

and joint ventures with global players.

His contribution to towards the economic and social developments are

briefly described, as under –

Economic development

Mr. Munjal started Hero Cycles in 1956 with limited resources and no

technical qualification. He had migrated from Pakistan and set up Bi-cycle

parts unit in Ludhiana. He had before him the formidable challenge of

providing a low cost means of transportation at an affordable cost for the

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Common man the AAM ADMI. He achieved that successfully and today

Hero Cycles features in the Guinness Book of World record for

manufacturing 18500 Bi-cycles daily. Mr. Munjal had pioneered the

concept of, off the assembly line in India and a pull based supply system,

which was sheerly driven by the constraint of capital. Inspite of rapid

industrialization he maintained Hero Cycles as a labour intensive unit since

for him the employees were an extended family. Most of them have joined

and retired from Hero Cycles, which is a no mean achievement.

The growth and prosperity of Hero Cycles was not just restricted to the

promoters but was shared with the vendors, dealers and other associates.

The loyalties developed are mutual and everlasting. Today Ludhiana is

synonymous with Hero Cycles and a large population is dependent either

directly or indirectly on Hero Cycles.

As part of corporate social responsibility Mr. Munjal is known for his

highest contribution to the exchequer of the Punjab State Govt. He has

been accredited with the ‘Samman Patra’ for his contribution made to the

state for several years.

Social development

The success of a man is too gauged not purely from his wealth/ prosperity

or economic standing but also on what he gave back to society. Mr. Munjal

has made significant contribution to the society by establishing many

schools, colleges / institutions and hospitals benefiting the society at large.

Mr. Munjal has nurtured schools and institutions in and around Ludhiana -

over 20,000 children gets education every year. There are concessions for

students from economically weaker sections and their employees.

He has set up a world class medical facility in the name of ‘Dayanand

Medical College’ (DMC). The hospital is equipped with most modern

equipment and facilities. There is a highly experienced/dedicated team of

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Doctors to provide high quality treatment at an affordable cost.

Awards and accreditations

Recognition / honors from the former Presidents of India - Dr.

Radhakrishnan, Sri V V Giri, Sri Giani Jail Singh and Dr. Abdul Kalam

Udyog Rattan Award from Capt. Amrinder Singh – former CM of Punjab

for outstanding contribution towards economic development of the

State (Punjab)

‘Samman Patra’ award towards highest contribution to exchequer of the

state Govt. between year 1995-1996 to 1999-2000

‘Indira Gandhi National Unity’ award to recognize his social contribution

‘Punjab Rattna’ award to commemorate his contribution to the state

economy.

Om Prakash Munjal (left hand side in the above photo), chairman of

bicycle giant Hero Cycles Ltd, died after a heart attack in Ludhiana. He was

survived by a son, four daughters and 10 grandchildren.

OP, as he was famously known (his older brother Brijmohan Lal is fondly

called BM), was born on 26 August 1927 in Kamalia, in the then undivided

Punjab. It is now in Pakistan.

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His father Bahadurchand owned a small wholesale shop in the village where

farmer’s grains were sold. A nationalist, OP spent most of his initial days

doing community service until one day his elder brother, Dayanand, asked

him to join the business. That also meant he could not study beyond the 10th

grade.

The family shifted base to Amritsar and then to Ludhiana in 1944, before

India’s Independence in 1947, in search of greener pastures. India needed

affordable mobility for its growing population and the Munjals were quick

to understand that. They set up a business that made bicycle parts, but

wanted to do more. The family won a contract from the Punjab government

to make cycles in 1956.

While BM is often credited with building the group as it exists today, OP

was instrumental in getting the group’s fundamentals right.

“Brijmohan used to say that people often underestimate his brother and

overestimate him,” said Gita Piramal, a business historian and post-doctoral

fellow at Oxford University.

He built the firm’s distribution network, a rarity in those days.

“His role was very important in areas such as accounting and putting systems

in place. Most importantly, he will be remembered for setting up the sales

machinery of Hero Cycles,” Sunil Kant Munjal, joint managing director,

Hero MotoCorp, said in a phone interview. Sunil was BM’s son.

Both the brothers travelled across India and built relationships with vendors

and dealers that support the family and its business to date.

In fact one story, according to a person who still has business interest with

the family, goes like this: A dealer partner had lost a sizeable chunk of his

business in Jammu when a truck carrying Hero Cycles caught fire. The

remains had no value and the dealer wanted to shut shop.

“The family asked him to come with the ashes and returned him the money

that he had paid for the cycles,” this person said, requesting anonymity.

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It was gestures like these that helped the family when Japanese automaker

Honda Motor Co. was looking for a local partner to build motorcycles in

India, Sunil Kant Munjal said in a 2013 interview

“After they did choose Hero as a partner, we asked them why they picked

our company,” he said. “The responses were quite interesting. They said four

or five things. They said we like the way you treat your people. Secondly,

they said we like the way you treat your suppliers, which was in some sense

a Japanese thing to do,” Sunil Munjal had said.

In 1986 Hero Cycles was recognized by the Guinness Book of World

Records as being the world’s largest maker of bicycles. By now, the B.M.

Munjal family was looking after the then Hero Honda Motors Ltd, the

group’s automotive business.

The O.P. Munjal family also tried its hand at the automotive sector, but with

little success. In 1996, Hero Motors partnered with BMW to manufacture

motorcycles in India, but the deal fell through as the Hero Group had a non-

compete agreement with Honda.

A partnership with Italy’s Aprilia to make and sell scooters was called off

after Piaggio and Co. SpA acquired the Italian manufacturer in 2005.

In 2010, Hero MotoCorp Ltd, run by BM’s sons Pawan Kant and Sunil Kant,

split with long-time partner Honda Motor Co.

From the time the Munjal brothers set shop in Amritsar to sell bicycle parts,

they have stuck together, said Piramal.

“In an attempt to reduce tensions, elders kept young minds busily focused

on work rather than on each other,” Piramal said. “New companies or

divisions were floated for every incoming blueblood.”

“Frankly, they believe in a web of relationship,” she added.

Until 2011, the larger Munjal family had cross-holdings in each other’s

companies, but a settlement that year saw these being unwound. Pankaj

Munjal, O.P. Munjal’s son, now owns most of Hero Cycles.

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Perhaps the reason the Hero Group stayed together when so many business

houses split messily was because they, unlike the Munjals, probably didn’t

take relationships as seriously.

“We were fortunate that it was done in a very friendly manner and it was

done very proactively,” Sunil Munjal said. “It is all about the values,

practising the motherhood statements. After all, we all grew up in one house

in Ludhiana.”

“He is a big loss to the family, group and above all the city of Ludhiana. He

was one of the leaders of the city.”

After the death of O.P.Munjal Hero Cycles, world's largest bicycle manufacturer, has appointed Pankaj Munjal (Son of O.P.Munjal) as its chairman and managing director. He succeeds the co-founder of Hero Cycles, Om Prakash Munjal, who led the Ludhiana-based company for more than 60 years.

Hero Cycles had also recently announced the appointment of Mr K.K. Vij as Chief Executive Officer. Vij has been earlier associated with Eicher Motors and Escorts Construction Equipment’s.

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Pankaj Munjal had recently announced Hero Cycles' entry in European

market with special focus on UK and Germany and setting up of an

assembly plant for high-end cycles in Poland. As part of his corporate

strategy, Mr Munjal has announced that the group will aim to increase its

current turnover from Rs 3000 crore to Rs 8000 crore by 2018.

The company has a manufacturing capacity of 7.5 million bicycles per

year, with its unit in Ludhiana (Punjab), Bihta (Bihar) & Ghaziabad (UP).

The company has a highly integrated plant in Ludhiana which produces

19,000 cycles every day. It also manufactures automotive rims and

various other auto components. The company produced 5.5 million

bicycles in FY14

Need For the study:-

The following are the needs to do the research at Hero Cycles Ltd.

To check existing system is effective or not and also employees are

satisfied with current system or not.

To measure the satisfaction level of the employees and workers and role

of technology using the software named SAP.

Objectives

To know the role of HR in payroll and the payroll software’s used in the

organization.

To know the basic functions of HR manager in manufacturing plant.

To determine the appropriate working environment for workers in

manufacturing plant.

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To review the effectiveness of the Payroll process of Hero Cycles.

To find about the software’s used in Payroll process and satisfactory level

of employees who are handling software’s.

To analyze the user friendliness of the software.

Dealing with conflict management and shift management of workers in

manufacturing plant.

Limitations of the study

Workers were present on contractual basis.

Most of the respondent feared to give their name.

Most of the employees were busy with their tight work and they don’t want to

be disturbed.

Since its new plant so employees are very limited and duration is limited.

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REVIEW OF LITERATURE OF HERO CYCLES

INTRODUCTION OF PAYROLL SYSTEM

Payroll system is the heart of any Human Resource System of an

organization. The solution has to take care of the calculation of salary as

per rules of the company, income tax calculation and various deductions

to be done from the salary including statutory deductions like Income tax

and provident fund deductions. It has to generate pay-slip, cheque

summary and MIS reports.

It is understood that we are tired of managing thousands of odd papers,

pay slips, payroll reports, and salary details and so on. Imagine that we

have a payroll processing system which will generate our pay slips and

payroll reports within seconds. We can help others automated your

payroll system by developing a customized payroll application that suits

your specific requirements.

PURPOSE

Main aim of developing Employee Payroll Management is to provide an

easy way not only to automate all functionalities involved managing

leaves and Payroll for the employees of Company, but also to provide full

functional reports to management of Company with the details about

usage of leave facility and Salaries paid or to be paid to employees.

We are committed to bring the best way of management in the various

forms of EPM. We understand that EPM in not just a product to be sold, it

is a tool to manage the inner operation of Company related to employee

leave and Payroll.

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BENEFITS

• To improve the efficiency.

• Quickly find out information of an employee details.

• To provide easy and faster access information.

• To provide user friendly environment.

ER DIAGRAM OF PAYROLL MANAGEMENT SYSTEM

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USE CASE DIAGRAM OF PAYROLL MANAGEMENT

SYSTEM

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ACTIVITY DIAGRAM OF PAYROLL MANAGEMENT

SYSTEM

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ATTRIBUTES OF PAYROLL MANAGEMENT SYSTEM

Masters:

This module helps the administrator to enter the designation and the

related description. It also helps to add the department.

Employee:

This module helps to add the details of the employee like the personal

detail and the employee detail.

Search:

This module helps to search the employee details department wise and

designation wise.

Attendance:

This module helps to different types of leave for different year. It also

helps the employee to enter their entry and exit time. Using the

attendance module the employee can also check their remaining leaves

and also apply for the leave.

Salary:

This module helps to calculate the salary by adding the allowances and

the basic salary and by deducting the deductions based on the leaves and

also the PF, ESI. It also helps to generate the employee pay slip.

Report:

This module helps to generate the administrative reports like the Salary

Report, Attendance Report and the Employee Report which is in can be

exported to word, pdf.

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Payroll Methodology

SAP-source is a software-Talent payroll service provider which can take best

of the available software to suite client need.

We can use any payroll software with strong methodical service orientation.

To believe sensitive activity like payroll service is more important than the

tool used.

Execution Objective

To build methodical & service oriented approach in execution of Payroll

as it is a:

sensitive activity and needs to be executed,

Timely & consistently

Correctly to the last detail

To Fulfill statutory obligations/compliances

To give complete picture every month to management and employee

Supportively & predictably

Methodical structured approach to payroll outsourcing

To help us Access, Analyze and to Build solid execution

There are Four Stages under this:

Analysis stage –documenting the details gathered.

Transition stage - preparation

Pilot stage – verification

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Production stage

Stage-I: Analysis

Understand client business

Alignment of outsourcing strategy with the corporate strategy

Assess requirement

Review environment

Confirm viability

Identification of an outsourcing champion

Establishment of clear timelines around the

outsourcing initiative

Stage-II: Transition

Team mobilization (technology & domain)

Training in tools and procedures if required

Hand-over of responsibility to our team

Establishing necessary set-up

Stage III: Pilot

Data collection and entry in the D/B

One time data

Company & employee

Monthly data

Data in between the months

Data validation with the client

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Verify per the checklist, if we have received the monthly data in complete

Enter the data in the salary processing software

Data entry validation

Verify if software has given considerations to all exceptions. If not do the

necessary changes manually.

Generate salary working and send ‘variance’ & ‘monthly’ report to customer

for verification

Stage IV: Execution

Monthly: (pdf file over the email)

Salary slip to the employee with leave balance & to date fig.

Consolidated report to the management

Note to the Bank for disbursement of salary

Monthly tax deduction statement

Monthly PF/Society contributions

Projected Income tax working for the year Annually/Quarterly

MIS

Quarterly tax return documents to company and to employee

Salary certificate to the employee

Attending to the call of the employer/employee on specific issues

34 | P a g e

Payroll Back Office

Scope of services

Maintenance and updating of employee information sheet / salary register

Calculation and preparation of monthly salary sheets.

Calculation and deduction of statutory deductions like Provident Fund,

Profession Tax, Income Tax etc. as and when they are applicable.

Calculation of withholding tax, statutory and non-statutory deductions on

salary.

Monthly pay-slips to employees

Quarterly IT report to employees

TDS CERTIFICATES

Issue Form 16 to all employees

TDS RETURNS, Filing of quarterly salary E-TDS returns

Why Payroll software used in the organization?

The study specifically seeks to answer the following problems in manual

payroll process:

Speed in processing payroll tends to be slow.

Prone to mathematical errors that could consume much time than it

should and could cause financial or legal trouble.

Tallying of time cards is done manually.

Time consuming in double checking the consistency of all the

reports.

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Difficult and time consuming in keeping up-to-date in taxes and other

deductions.

Storage of files is susceptible to be damaged as well as loss of data.

Significance of the study

• Speed in processing payroll will have a faster performance by means

of decreasing the manual input areas.

• Mathematical errors will be prevented by automatic computations

that the proposed system will provide and you may not have to worry

about having financial or legal trouble.

• Tallying of time cards will be done automatically by including a

computerized employee log-in system in the proposed system which will

be responsible in computing the time the employee worked.

• The proposed system will record all data in all reports at the same

time so you can make sure they are consistent and it also saves time.

• Employers will never have to spend much time in keeping up to date

with taxes and deductions because the system will be designed updated

to such deductions.

• Storage of files will be safe and secured with “username and

passwords” and can easily be accessed.

Terminology Definition which is used in SAP software

This section gives a definition and explanation of some of the terms used

in the project:

Employee Data: This is the employee's information in the company. It

consists of the employee identification number, employee name, pay rate,

pension plan flag, and union member flag.

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Payroll Records: The payroll records are used to store each month’s hours

worked, and the rates for that month.

Rates: Rates consists of the percentage that would be deducted from the

gross pay depending on union membership status, pension plan, state and

federal tax. Each employee can have a unique hourly rate.

Payroll Ledger: This is a table that shows the calculated pay of employees

and the month in which they earned the pay. The ledger can be filtered by

name, identification number, year and month.

Hours Worked: This is the number of times that an employee work in a

month. The hours worked is used to calculate the pay that an employee will

receive for that month.

Net Pay: The net pay is the final salary amount that would be given to the

employee after all the deductions are subtracted from the gross pay. The

deductions include among others taxes, union member dues and pension

plan.

Gross Pay: The gross pay is the amount that the employee earns before the

deductions are subtracted.

Deductions: Deductions are made up of taxes, union membership dues,

pension plan. They are subtracted from the gross pay to give the net pay

which is the employee's final pay for the month.

Taxes: The taxes consists of the state dues and federal dues. A percentage

of the employee's salary goes to state and country.

Union Membership Dues: This is meant for employees that are union

workers in the company. They get to pay a percentage for union dues. An

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employee can be a union member and later change status to be a non-union

member.

Pension Plan: Employees that opted to use the pension plan of the company

get to pay a particular

Percentage of their pay in preparation for their retirement.

Pay slip: These are similar to pay cheques. They allow the employee to have

his or her pay printed out on paper so that they can cash it.

Year-To-Date Total: The year-to-date total is the summation of all the

previous earnings till the month before the current month.

TECHNOLOGY (TOOLS & TECHNIQUES)

HARDWARE AND SOFTWARE REQUIREMENT OF PAYROLL

MANAGEMENT SOFTWARE

Software Requirement

TURBO C++

MS DOS

WINDOWS XP, WINDOWS 7,8 OR 10

MICROSOFT OFFICE ACCESS

Hardware Requirement

CPU – Intel Core 2 Duo E7300

RAM I GB (MINIMUM)

HARD DISK (I60 GB)

OPERATING SYSTEM- WINDOWS XP WITH SERVICE PACK 3 (CHT)

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SOFTWARE REQUIREMENT SPECIFICATION AS PER HERO CYCLES

Functional Requirements

INTRODUCTION:

Requirements analysis is usually the first phase of large-scale software

development project. It is undertaken after a feasibility study has been

performed to define the precise costs and benefits of a software system.

The purpose of this phase is to identify and document the exact requirements

for the system.

The customer, the developer, a marketing organization or any combination

of the three may perform such study. In cases where the requirements are

not clear e.g., for a system that is never been defined, more interaction is

required between the user and the developer.

The requirements at this stage are in end-user terms

Administrator module

1. Test case: Login

Input: ID, Password.

Process: Click on the login link. If administrator enters ID and password

correct it goes to the admin services otherwise displays the same page with

an error message.

Output: Displays the admin services page.

2. Test case: Add new employee

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Input: Name, Id, designation, Date of joining.

Process: A new employee can be added into the system and admin can

update his details.

Output: The employee can be credited salary based upon his details.

3. Test case: Salary details

Input: Id, designation, basic salary, PF, DA,HRA.

Process: The admin can update his salary details

Output: Employee salary details will be updated to the database.

4. Test case: Loan details

Input: Id, Loan number, EMI, Repaid amount, Balance amount.

Process: Administrator can update a particular employees loan details.

Output: Employee Loan details will be updated to the database.

5. Test case: Leave details

Input: ID, Type of leave, Number of Leaves.

Process: Administrator updates the leave details.

Output: Employee Leave details will be updated to the database.

6. Test case: Tax details

Input: Id, Basic salary, Tax percentage, income tax.

Process: The tax details of an employee can be updated by the administrator.

Output: Employee Tax details will be updated to the database.

7. Test case: Salary slip

Input: Id, Basic salary, Designation, Net pay.

Process: Based on the leave, loan, and tax details the slip will be generated

Output: Salary slip will be generated.

8. Test case: Bank details

Input: Id, Designation, salary

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Process: The employee’s salary is credited to bank.

Output: Employee can View and receive the salary.

Employee modules

1. Test case: Login

Input: ID, Password.

Process: Click on the login link. If Employee enters ID and password correct

it goes to the other page otherwise displays the same page with an error

message.

Output: Displays the Information to be viewed by an employee.

2. Test case: Update profile

Input: Id, Name, Designation, Email-id, Mobile number, Address, key skills,

qualification

Process: The employee can update his profile if any modifications occur in

his details

Output: The details of an employee can be updated

3. Test case: Change password

Input: Id, Old password, new password

Process: Employee can be able to change his password by using this test

case

Output: Employee new password will be updated

4. Test case: View earnings

Input:ID,Month,Year.

Process: The earnings can be displayed by this test case

Output: The total earnings of an employee for the specified month and

year can be viewed

5. Test case: View deductions

Input: Id, Month, Year

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Process: The deductions can be known by using this test case

Output: The total deductions of an employee for the specified month and

year can be viewed

6. Test case: View salary slip

Input: Id, Month, Year.

Process: The employee can view the salary slip.

Output: The salary slip of an employee for the specified month and year

can be viewed.

MAJOR DUTIES OF HR

In a manufacturing plant such as hero cycles here are the few major

duties of HR manager:

Ensures timely and accurate preparation of all Institution payroll operations

and works closely with the Human Resources Office to ensure that payroll

actions are in conformance with employment and benefits practices and

accounting procedures.

Oversees preparation of all federal and state payroll tax reports, including

quarterly and year-end returns; determines taxability of non-wage payments

and serves as in-house contact for technical tax compliance issues, including

tax liabilities of foreign nationals.

Interprets Institution employment policies and government regulations in

connection with payroll activities and makes recommendations on

modifications to senior management as appropriate.

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Handles federal and state agency audits and maintains close contact with ITI

and other regulatory agencies to ensure that the Institution has accurate

information and is in compliance.

Maintains all payroll records, reports, computations and audits, including

periodic internal audit tests of labor utilization; works closely with internal

and external auditors to ensure compliance with relevant tax laws and

government regulations.

Interfaces routinely with Human Resources on employee benefits issues

(deductions, retirement payments, etc.) to ensure timely and accurate

processing.

Works closely with Management Information Systems on developing

payroll applications that ensure internal controls and facilitate the

implementation and maintenance of payroll and HR master files.

Provides periodic analysis of payroll and disbursement records to ensure that

adjustments are in accord with management's criteria.

Supervises Payroll Office staff and operations; provides on-going assistance

to Institution employees in tax-related payroll matters.

Participates in business re-engineering activities to support the

establishment and integration of electronic information processes and

principles at the Institution.

Handling conflicts between workers (Conflict Management).

Providing appropriate working environment to the worker for increasing

efficiency of the production.

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RESEARCH METHODOLOGY OF HERO CYCLES

RESEARCH DESIGN:

A research design is the arrangement of conditions for collection and

analysis of data in a manner that aims to combine relevance to the research

purpose with economy in procedure.

EXPLORATORY RESEARCH:

Exploratory research focuses on collecting data using an unstructured formal

or informal procedures to capture data and to interpret them. It is often used

to classify the problems or opportunities and it is not intended to provide

conclusive information from which a particular course of action can be

determined.

SAMPLING DESIGN:

A sample design is a definite plan for obtaining a sample from a given

population.

POPULATION:

The employees of HERO CYCLES will constitute the entire population.

Here the entire population is considered for my study because the population

is limited and amounts around 45-50 employees along with contractual

workers on the daily basis.

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DATA COLLECTION:

Data is recorded measure of phenomena. While deciding about the method

of data collection, the researcher should keep in the mind about two types of

data. They are, Primary Data and Secondary Data

Primary data

Primary data represent the first hand raw data that have been specifically

collected for the current research problem. Primary data are raw,

unprocessed and yet to receive any type of meaningful interpretation.

Sources of primary data tend to be the output of conducting some type of

exploratory, descriptive or casual research.

DATA COLLECTION: OBSERVATION, INTERVIEW

Directness of the observation

Based on the directness of observation, it can be grouped as direct or

indirect. Direct observation happens when the observer is physically present

and monitors while the event is taking place. This is highly flexible as the

observer can decide what to observe, how much time to spent on observation

of an aspect, when to shift focus etc. The observer may feel bored or

frustrated by constantly being on the watch and may tend to lose focus. This

might reduce the accuracy and completeness of the observation. Another

weakness is that the observer may be overloaded when the events takes place

quickly which cannot be kept track of or recorded.

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Secondary data

The secondary data is the historical data previously collected and

assembled for some other research problem. Secondary data can be usually

gathered at faster and economical manner than the primary data. However

the data may not fit in the researchers information need. The secondary data

can be obtained from the libraries, website, published as well as unpublished

documents etc.

Sampling methodology and procedure

Non-probability sampling the research finding cannot be generalized and

the sampling error cannot be assessed. The findings are limited to the

sample, which provided the original raw data. However non-probability

sampling may be the only choice in case where the population cannot be

ascertained.

SAMPLING TECHNIQUE: PURPOSIVE SAMPLING

Sample size

The sample size for the given project is 50.

Period of study

The study period taken for this project is 5-7 weeks.

Tools can be used

Simple average

Chi square test

One sample run test

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ANALYSIS AND INTERPRETATIONS

SIMPLE AVEARGE ANALYSIS

Reasons for satisfaction/dissatisfaction level towards the Measurement of

Software usage:

Source: Primary Data

90% of the Employees are satisfied by the software and we need to more focus on

the 6 % dissatisfied and 4% not yet responded.

0

10

20

30

40

50

60

70

80

90

SATISFIED DISSATISFIED NEUTRAL

NO.OF RESPONDENTS 45 3 2

% OF RESPONDENTS 90 6 4

45

3 2

90

6 4

Axi

s Ti

tle

Axis Title

Measurement of Software usage.

LEVEL OPTIONS

NO.OF RESPONDENTS

% OF RESPONDENTS

SATISFIED 45 90

DISSATISFIED 3 6

NEUTRAL 2 4

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Reasons for satisfaction/dissatisfaction level towards, whether the software user

friendly:

SOURCE: PRIMARY DATA

Among 50 employees 82 % of the employees are satisfied with the software system

helps for future growth that they had improved themselves after the program. 18 %

of the employees are not satisfied with software system helps for future growth.

0

10

20

30

40

50

60

70

80

90

NO.OF RESPONDENT % OF RESPONDENT

YES 41 82

NO 9 18

41

82

9

18

Axi

s Ti

tle

Axis Title

The software user friendly or not.

YES NO

LEVEL OPTIONS

NO.OF RESPONDENTS

% OF RESPONDENTS

YES 41 82

NO 9 18

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complaints regarding loading of pay sheet in software:


90 % of the Employees are satisfied by the software and we need to more focus on

10% not yet responded.

SATISFIED DISSATISFIED NEUTRAL(PASS)



45

05

90

0

10

-40

-20

0

20

40

60

80

100

120

140

Axi

s Ti

tle

Axis Title

Loading of pay sheet in software.

LEVEL OPTIONS

NO.OF RESPONDENTS

% OF RESPONDENTS

SATISFIED 45 90

DISSATISFIED 0 0

NEUTRAL 5 10

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Reasons for satisfaction/dissatisfaction level towards the usage of new software

for payroll process:


76 % of the Employees are satisfied with the calculation and we need to more focus

on 24% of employees dissatisfied

LEVEL OPTIONS

NO.OF RESPONDENTS

% OF RESPONDENTS

SATISFIED 38 76

DISSATISFIED 12 24

NEUTRAL 0 0




38

12

0

76

24

00

10

20

30

40

50

60

70

80

Axi

s Ti

tle

Axis Title

New software for payroll process.

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delivery of payroll report to clients:


60 % of the Employees are satisfied by the delivery and we need to more focus on the

10% dissatisfied and 30% not yet responded.




30

5

15

60

10

30

0

10

20

30

40

50

60

70

Axi

s Ti

tle

Axis Title

Chart Title

LEVEL OPTIONS

NO.OF RESPONDENTS

% OF RESPONDENTS

SATISFIED 30 60

DISSATISFIED 5 10

NEUTRAL 15 30

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Reasons for satisfaction/dissatisfaction level towards the usage period of payroll

management software:


94 % of the Employees are satisfied by the service provided for the software

complaints and we need to more focus on the 6 % dissatisfied.

NO.OF RESPONDENTS % OF RESPONDENTS

YES 47 94

NO 3 6

47

94

36

0

10

20

30

40

50

60

70

80

90

100

Axi

s Ti

tle

Axis Title

The usage period of software.

LEVEL OPTIONS

NO.OF RESPONDENTS

% OF RESPONDENTS

YES 47 94

NO 3 6

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Reasons for satisfaction/dissatisfaction level towards the Measurement of clients

input:



YES 42 84

NO 8 16

42

84

8

16

0

10

20

30

40

50

60

70

80

90

Axi

s Ti

tle

Axis Title

Measurement of clients input.

LEVEL OPTIONS

NO.OF RESPONDENTS

% OF RESPONDENTS

YES 42 84

NO 8 16

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84 % of the Employees are satisfied by the clients input records and we need to more

focus on the 16 % dissatisfied.


training given to employees:


60 % of the Employees are satisfied by the software training and we need to more

focus on the 40% dissatisfied with training.


YES 30 60

NO 20 40

30

60

20

40

0

10

20

30

40

50

60

70

Axi

s Ti

tle

Axis Title

Measurement of training given to employees.

LEVEL OPTIONS

NO.OF RESPONDENTS

% OF RESPONDENTS

YES 30 60

NO 20 40

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The way in which the organization maintains records as per government norms:


100 % of the Employees are satisfied by the organization maintains all reports

according to government norms.


YES 50 100

NO 0 0

0

20

40

60

80

100

120

Axi

s Ti

tle

Axis Title

Maintains records as per government norms.

LEVEL OPTIONS

NO.OF RESPONDENTS

% OF RESPONDENTS

YES 50 100

NO 0 0

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The maintains of client details confidentially:


92% of the Employees are satisfied by the maintains of client inputs and we need to

more focus on the 8 % dissatisfied


YES 46 92

NO 4 8

46

92

48

0

10

20

30

40

50

60

70

80

90

100

Axi

s Ti

tle

Axis Title

The maintains of client details confidentially.

LEVEL OPTIONS

NO.OF RESPONDENTS

% OF RESPONDENTS

YES 46 92

NO 4 8

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Statistical tool applied:

CHI-SQUARE TEST

Satisfied Dissatisfied Neutral/pass Total

Yes 38 2 1 41

No 7 1 1 9

Total 45 3 2 50

S.no Oi Ei (Oi-Ei)2 (Oi-Ei)2

Ei

1 38 36.9 1.21 0.0327

2 2 2.46 0.2116 0.0860

3 1 1.64 0.4096 0.2497

4 7 8.1 1.21 0.1493

5 1 0.54 0.2116 0.39185

6 1 0.36 0.4096 1.1377

Total 50 50 2.04775

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CALCULATION:

Degree of freedom (m-1)*(n-1) = (3-1)*(2-1) =2

Tabulated value of D.F=2 @ 5% level of significance is 5.991.

Therefore Ho is accepted because the calculated value is less than

tabulated value.

Hence there is no significant difference between observed frequency and

the expected frequency. Hence the software used in hero cycles is good.

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One Sample Run Test

YYYYNYYYYYYYYYYNYYYYYYNYYYYNYYYYYNYYYYYYYYYNYYYYNYYY

YNNYYYYYYN

r=no. of runs= 14

no. of Y= 41

no. of N= 9

Ho: The software is effective and accept at random in sequence.

H1: The software is not effective and not accept at random in sequence.

sE9r) = 2(41) (9) + 1

41+9

= 15.76

S.E (r) = √ 2(41) (9) [2(41) (9)-41-9]

(41+9)2 (41+9-1)

= 2.0358

Z= r- E(r)

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S.E(r)

= 14-15.76

2.0358

= [-0.8645]

Z5% for degree of freedom ∞ = 1.96

0.8645 < 1.96

So, accept H0

Hence the software is effective are accept at random in sequence

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PAYROLL AND ATTENDANCE SYSTEM IN HERO

CYCLES

Organizations of all sizes use time and attendance systems to record

when employees start and stop work, and the department where the work

is performed. However, it’s also common to track meals and breaks, the

type of work performed, and the number of items produced. In addition to

tracking when employees work, organizations also need to keep tabs on

when employees are not working. Vacation time, compensation time,

FMLA time, and jury duty must be recorded. Some organizations also keep

detailed records of attendance issues such as who calls in sick and who

comes in late.

A time and attendance system provides many benefits to organizations. It

enables an employer to have full control of all employees working hours.

It helps control labor costs by reducing over-payments, which are often

caused by transcription error, interpretation error and intentional error.

Manual processes are also eliminated as well as the staff needed to

maintain them. It is often difficult to comply with labor regulation, but a

time and attendance system is invaluable for ensuring compliance with

labor regulations regarding proof of attendance.

Companies with large employee numbers might need to install

several time clock stations in order to speed up the process of getting all

employees to clock in or out quickly or to record activity in dispersed

locations.

Depending on the supplier, identification method and number of clocking

points required, prices vary widely. A time and attendance system protects

a company from payroll fraud and provides both employer and employees

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with confidence in the accuracy of their wage payments all while improving

productivity.

Payroll and attendance systems are essential in hero cycles, because they

enable us to compensate our employees for time worked. Each system has

its own dedicated purposes, but they also go hand-in-hand.

Objectives

A payroll system is the medium that allows you actually pay your

employees. During this process, we calculate wages and deductions based

on the employee’s pay scale. We also generate paychecks and pay stubs, and

perform direct deposit and payroll tax procedures. Before we get to those

stages, we must figure the amount of hours to compensate employees who

are paid hourly. Our timekeeping system shows each employee’s daily time

worked and the total hours to pay them for on the upcoming payroll.

Manual Process

If we have only a handful of employees, a manual payroll and attendance

system may work for us. With this system, everything is done by hand.

Employees would complete weekly time sheets, and we will calculate and

verify the time by hand. During payroll processing, we figure wages and

deductions manually and hand-write paychecks. Related duties, such as

keeping records and reporting payroll tax, are also done manually. This

system is prone to errors. If we decide to apply it, a standard punch clock for

timekeeping can be a big help.

Automated System

An automated, or computerized, time clock lets employees clock in and out

via swipe badges, clock cards, finger print or palm print; it depends on the

type of system. It also calculates work hours and rounds the time up and

down so it complies with federal and state rounding rules. Managers and

supervisors track their employees’ time via the automated system and make

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the necessary adjustments before the time reaches payroll for processing.

This system enable to transport the time into payroll software, which is used

to process the payroll. Payroll software reduces manual calculations,

generates paychecks and pay stubs, and enables direct deposit and annual

W-2 processing. It also stores payroll records and limits filing of hard copies.

External Payroll Processing

If a payroll service provider handles your payroll matters, we still track our

employees’ hours in-house, but we use our supplier’s payroll system. For

example, the supplier may require that you fax or email your employees’

hours. It then processes and sends you the paychecks by payday. Or, via a

unique login and password, you may upload the hours into the supplier’s

online system, and print paychecks and payroll reports to your own printer.

The supplier can assist you with your payroll tax matters and in solving

complex payroll problems.

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AN INTRODUCTION OF WELFARE

MEASURES OF HERO CYCLES

The oxford Dictionary defines labor welfare as effort to make life worth

living for workers the voluntary efforts of the employers to establish within

the existing industrial system, working and sometimes living and culture

conditions of employees beyond what is required by law and customs of

the industry and conditions of the market. Welfare works covers all the

efforts which employers make for benefit of their employees over and

above the minimum standards of working conditions fixed by the factories

Act and over and above the provisions of social legislators providing against

old age, unemployment and sickness.

While doing my project I have found various welfare measure taken by HR

Manager of Hero Cycles in manufacturing plant some of them are listed

below:

1. Washing Facility

The Company has provided proper wash rooms to the workers who are

working at different shift hours. There are 10 wash rooms for every 100

workers in the company. They ensure to provide clean and hygiene working

conditions in the company so that workers can put their full effort in all

areas.

2. Canteen Facility

Workers are provided with a separate canteen, where they have their

lunch and other refreshments. There are around 250 workers working in

the plant and in among the two shifts there are nearly 35-40 employees

so the area of canteen has to be big. Considering this point the canteen

provided to them is big in size with the sitting capacity of nearly 500

employees. Canteen prices are also cheap and completely affordable. Tea

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is provided at Rs 5 to the workers and lunch plate worth Rs 25 which

include 2 chapatti’s, rice and 1 dal and 1 curry.

3. Rest Rooms

Proper rest rooms are provided so that the workers can get rest during

the break of 45 mins they get while working in the manufacturing plant.

4. Doctor and First Aid Facility

Every organization with more than 250 employees and worker need to

appoint an MBBS doctor, same has being done by hero cycles. They have

two permanent MBBS Doctor named Dr. Atul Rastogi and Dr. T.P.Dubey

inside the manufacturing plant so that if any accident occurs immediate

treatment could be provided.

5. Dispensary

A fully fledged dispensary with a team of 4 medical staff members is there

in the company and an ambulance is available around the clock.

6. Health &Safety officer:

Health and safety officer acts as an adviser to management on the latest

legal obligations, ensuring the standard of safety is up to the latest

regulatory standards. The officer also imparts advice to others through

training and discussion, as well as creating company policies that deal

with health and safety, such as evacuation procedures.

For further research I have collected data of welfare measures by

preparing questionnaires and distributing within the manufacturing

plant for finding out the satisfaction level of employees and workers.

Questionnaire is given at the last page of the project.

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Results from questionnaire was positive and here are some suggestions

which can be determined after analyzing collected data:

Suggestions

On shop floor worker should be provided with glucose or lemon water

which increases his stamina to work.

Condition of workers canteen and restroom should be improved.

Cleanliness should be maintained in canteen and quality of food should

be provided. Sufficient amount of food should be cooked to meet the

demand of all workers.

Quality circles should be introduced in organization. It will help in

removing day to day work related problems of workers and moreover

workers will feel motivated and sense of belongingness will be

generated when they solve their own problems and increase the

productivity of organizations.

For the welfare of workers monetary and non-monetary rewards and

awards should be provided to workers who completes a certain time of

his tenure.

Proper counseling of workers should be done by supervisors which will

change their perception about work related problems and personal

issues. So proper counseling of workers will help in changing this mind.

A supervisor per shift in charge should be held accountable for a group

of workers their problems, welfare facilities, grievances, motivation

level, participation in activities etc.

Company should lay more stress on taking corrective measures for

safety regarding accidents. Proper training should be provided to

workers; work load should be regulated as per the handling capacity of

the workers so that they do not lose their concentration.

Quality of uniform and shoes should be improved and it should be

designed according to working conditions so that workers do not face

any kind of skin related problem.

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Working environment needs to be improved to enhance the

satisfaction level of workers the environment should be made friendly

and team spirit need to be built up.

Training should be given regarding personal growth and development

of the workers to make them a good citizen.

HERO CYCLES (PRODUCTION PROCESS)

Since company’s new plant in Patna was set up in August 2014 so here are

few objectives of its production process:

Objectives:

Support in developing New Plant Layout with following capacity requirement

of next three years

Targeted Capacity i. Year 2014:3000 cycles / day

ii. Year 2015:4000 cycles / day

iii. Year 2016:5000 cycles / day

• Set up best possible layout for Stores, Assembly, Packaging, and Dispatch

ensuring smooth Material Flow

• Minimum 25% improvement in space, productivity and cost against existing

HCL norms

• To arrive at the required manpower for the scope of the study.

• No material on the floor

• Movement on conveyor and unloading from conveyor to be integral part of

the process.

• No painted component touching each other

• Ensure Smooth Material Flow. Hero Cycles mentioned support required for

Material Planning, Inventory Management based on the principals of Lean

Flow

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FINDINGS AND SUGGESTIONS FOR PAYROLL

SOFTWARE

FINDINGS

1. The effectiveness of the existing software system in HERO CYCLES is

measured by using the following variables:

Software (sap)

Import of data in software

Software calculation

Accept & implement change

Flexibility

Company policies

Education &Computer Skills

Client Relation.

2. 90% of the Employees are satisfied by the software and we need to more

focus on the 6 % dissatisfied and 4% not yet responded.

3. Among 50 employees 82 % of the employees are satisfied with the software

system helps for future growth that they had improved themselves after the

program. 18 % of the employees are not satisfied with software system helps

for future growth.

4. 90 % of the Employees are satisfied by the software and we need to more

focus on 10% not yet responded.

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5. 76 % of the Employees are satisfied with the calculation and we need to

more focus on 24% of employees dissatisfied

6. 60 % of the Employees are satisfied by the delivery and we need to more

focus on the 10% dissatisfied and 30% not yet responded.

7. 94 % of the Employees are satisfied by the service provided for the

software complaints and we need to more focus on the 6 % dissatisfied.

8. 84 % of the Employees are satisfied by the clients input records and we

need to more focus on the 16 % dissatisfied.

9. 60 % of the Employees are satisfied by the software training and we need

to more focus on the 40% dissatisfied with training.

10. 100 % of the Employees are satisfied by the organization maintains all

reports according to government norms.

11. 92% of the Employees are satisfied by the maintains of client inputs

and we need to more focus on the 8 % dissatisfied.

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SUGGESTIONS

1. In order to improve the Software skills of employees the

organization should create more awareness and to provide feedback

regularly to the employees about software system.

2. Proper training should be given to the employees, in order to

increase their knowledge about the usefulness of the software

system.

3. Top management shall continually review the software according to

the client requirements, which shall be seen as positive support to

the system by the employees as well as clients.

4. After software testing, if there is any changes, the employees should

be informed by the software technology team.

5. The delivery of clients output should be on time.

6. Latest software should be implemented in future to fight with the

competitors and retain their clients.

7. The company should motivate workers by providing monetary and

non-monetary incentives within the manufacturing plant for

increasing efficiency in production and getting whole hearted efforts

from workers.

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LEARNINGS

It was a wonderful opportunity to be a part of HERO CYCLES PVT.

LTD. It was a great experience to compare the theoretical concepts

of HRM and real work activities. During my stay at HERO CYCLES I

was introduced to a highly efficient work culture where coordination

of cooperation was given utmost priority. This summer training

helped me a lot to gain practical knowledge regarding payroll

management and welfare measures which enriched my view

towards managing the work force and to work within a team. This

training also helped me to handle conflicts between workers

(conflict management) and manage the shifts of workers (shift

management).

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CONCLUSION

1. The study had confirmed that the company is having a good Software

System.

2. From this study, it is found that majority of the workers were satisfied

with Software used and working condition of the manufacturing plant.

3. To make the software system more efficient and excellent, the company

should give importance to the clients and create awareness among

employees and it shall consider some of the ways and means suggested by

the employees like addition of parameters such as short cut for calculation

PF,ESI,TAX,Etc,. Dependability and conducting regular training program

on the software usage.

4. The company should conduct the similar type of research at regular

interval to know the changing software’s and to know about the latest

technology like baan software etc..

5. Since plant is established in Patna, Bihar which is known for labors

basically so company can focus on getting permanent labors rather than

labors on contractual basis and from various private agencies.

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BIBLIOGRAPHY

BOOKS

Fisher shoenfelt Shaw-Human resource management-4th edition-Macmillan

Press limited.

Kothari C.R research Methodology-Methods and techniques (2nd edition)-

new age International (pvt) limited.

Bratton John and Gold Jeffery (1994)-HRM-Theory and practice, 6th

edition-Macmillan press Limited.

Mamoria C.B-Human Resource Management-Himalaya publishing home,

11th edition 1993.

REFERENCES

Sasmita Polo-National Journal on Personnel Management-VOL-XXII,

No.3, Pg no.16-20

Parveen Ahmed Alan and Mr. Kaushik-Personnel Today-Indian Journal on

personnel management-VOL.XXIX,NO.2, Pg No.13-15.

Prof.Bata.K.Dey-Indian Journal on Personnel Management-VOL XXIX-

NO.2, pg no. 9-12.

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Websites

WWW.HVS INTERNATIONAL JOURNALS.COM

WWW.SLIDESHARE.COM

WWW.HEROCYCLES.COM

WWW.CITEHR.COM

WWW.MANAGEMENTPARADISE.COM

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Questionnaires

SAFETY QUESTINNAIRE

Name __________________

Age __________________

Department __________________

Marital status ___________________

Q1. Are you aware of safety policy of your organization?

Yes No

Q2. Does the organization provide safety training regarding the handling

of machines/equipment’s related to dangerous operations?

Yes No

Q3. Does your organization provide you safety equipment’s for work on

dangerous machines?

Always Sometimes Never

Q4. To what level machines are properly maintained and fenced?

Highly satisfactory satisfactory average dissatisfactory

highly dissatisfactory

Q5. How frequently do accidents occur in your company?

Very frequently frequently sometimes never

Q6. What are the common reasons for accidents?

____________________________________________________________

______________________

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Q7. Does the company analyze the causes of accidents and take corrective

measures to reduce the number of accidents in future?

Always sometimes never

Q8. Does the safety officer take corrective actions in time whenever

needed?

Always sometimes never

Q9. Does the organization provide safety provisions on the following?

Yes no

Protection of body

Protection against dangerous fumes

To lift heavy loads/weights

Q10. Would you like to give any suggestion for improvement in the safety

policy?

____________________________________________________________

____________________

Thank You!

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WELFARE QUESTIONNAIRE

Q1. Does the company follow the welfare policy?

Yes no

Q2. Is the company providing you best services related to the following:-

Highly agree Agree neutral disagree highly disagree

First aid facility

Ambulance facility

Dispensary

Rest room

Good Working Environment

Q3. To what extent are you satisfied with following:-

Excellent good average below average poor

Washing facility

Drinking water

House keeping

For storing clothes

Canteen/lunch rooms

Q4. Give your opinion related to following canteen facilities?

Excellent good average below average poor

Quality of food

Prices of food

Cleanliness of canteen

Sitting arrangement

Q5 Are you satisfied with the following medical facilities:-

Satisfied Dissatisfied

Doctor

Laboratory

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Medicines

Periodical checkup

Q7. Does the organization provide Employee assistant programs?

Yes no

Q8. Are there any suggestions that you would like to give regarding labor welfare and

safety policy of Hero Cycle?

_______________________________________________________________________

_____________________

Thank You!

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“A STUDY ON PAY ROLL SOFTWARES USED IN HERO

CYCLES, PATNA AND HR ROLL IN PAYROLL”.

INTERVIEW QUESTIONS

QUESTION FOR HR EXECUTIVES AND HR HEADS.

1) Does the clients are satisfied with the software used in hero cycles for the

pay roll processing?

Satisfied Dissatisfied Neutral

2) Is the software user friendly?

YES NO

3) When do you get complaints regarding the loading of pay sheet into

software? Whether satisfied?


4) Has the organization defined its payroll process software to meet client’s

requirements services?

YES NO

5) Are you satisfied with the software to calculate the pf, esi etc.?


6) How about the delivery of payroll report?


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7) How long you have been using the software? Whether it is satisfied or not?


8) Whether your complaints are rectified by the company?

YES NO

9) Whether works closely with Management Information Systems on

developing payroll applications that ensure internal controls and facilitate

the implementation and maintenance of payroll and HR master files.

YES NO

10) Whether clients Provides periodic analysis of payroll and disbursement

records to ensure that adjustments are in accord with management's criteria.

YES NO

11) Whether Supervises Payroll Office staff and operations; provides on-going

assistance to Institution employees in tax-related payroll matters.

YES NO

12) Whether clients and employees Participates in business re-engineering

activities to support the establishment and integration of electronic

information processes and principles at the Institution.

YES NO

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13) Whether company maintains all payroll records, reports, computations and

audits, including periodic internal audit tests of labor utilization; works

closely with internal and external auditors to ensure compliance with

relevant tax laws and government regulations.

YES NO

14) Whether Maintenance and updating of client information sheet / salary

register confidentially?

YES NO

15) Whether the employees Interfaces routinely with Human Resources

department on client benefits issues (deductions, retirement payments, etc.)

to ensure timely and accurate processing

YES NO

Thank You!

internship project of hero cycles pvt ltd

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