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A PROJECT REPORT

ON

STUDY OF COMPENSATION POLICY

IN

INDO ASIAN FUSE GEAR

(SONEPAT)

Submitted in partial fulfillment of the requirement for the award of


degree of BACHELOR OF BUSINESS ADMINISTRATION
SESSION 2010-2011

Under the guidance of: Submitted By:


Mr. ANIL SRIVASTAV HEMAKSHI
Factory HR Manager B.B.A 3rd YEAR
IAFL – Sonepat 5634

G.V.M. GIRLS COLLEGE, SONEPAT


(Affiliated By M.D. University, Rohtak)
DECLARATION

I Hemakshi, Roll No. (5634) B.B.A Final Year (5th Semester) of G.V.M. Girls College
hereby declare that the project entitled “COMPENSATION POLICY” this
analysis is an original work and the same has not been submitted to any other
institute for the award of degree.

Signature of the Candidate


TABLE OF CONTENTS
S.NO. TOPICS

1 Acknowledgement

2 Executive Summary

3 Company Profile

4 Literature Reviews

5 Objectives of Study

6 Research Methodology

7 Introduction of the Study

8 Data Analysis and Interpretation

9 Conclusion

10 Recommendations

11 Limitations

12 Bibliography

13 Questionnaire
ACKNOWLEDGEMENT

This project bears the impact of many persons and I have immense pleasure in
acknowledging the cooperation extended towards me by all of them during my training.

I am immensely indebted to Mr. Anil Srivastava, (HR Manager) IAFL – Sonepat, for
his invaluable guidance, interest, constant encouragement and constructive criticism for
successful completion of this project.

I would be failing in my duty if I do not thank my faculty members for their constant
encouragement and inspiration.

I express my sincere thanks to my parents and siblings for their constant support
throughout my project.

HEMAKSHI

Roll no .5634
COMPANY

PROFILE
ABOUT INDO ASIAN

Indo Asian was formed in 1958 by a young group of technocrats indigenously

developed India’s first sheet steel enclosed rewirable switch at Jalandhar in

Punjab. This marked the birth of INDO ASIAN, which today has grown into a

multi product, multi Location Company specializing in manufacturing and

marketing a wide range of high-tech. electrical products used for distribution,

protection, control and conservation of electrical energy. The superior quality of

these products has earned them the respect of the Indian market and the world

over where they are popular under the brand names: Indo Asian industrial plugs &

sockets, stopshock RCCBs, Indo Asian HRC fuse links and Contactors & Relays.

The group’s annual turnover, which grew from Rs. 10 million in 1986, to Rs. 900

million last year, is slated to reach Rs. 2500 million by the year 2007. Its modern

manufacturing units at Sonipat, Noida, Parwanoo, and Jalandhar, are being

further augmented. Once achieved, this would be largest production base in India

of the next generation of RCCBs, and Compact Fluorescent lamps and other high

technology, high quality electrical control and safety equipments.

At present the group comprises the following companies:-

1) INDO ASIAN FUSEGEAR LTD., MURTHAL

2) INDO ASIAN FUSEGEAR LTD., NOIDA

3) INDO ASIAN FUSEGEAR LTD., JALANDHAR

4) INDO ASIAN FUSEGEAR LTD., LIGHTING DIVN. HARIDWR.


The registered office of the group is located in Okhla New Delhi.

Products manufactured by the INDO ASIAN are domestic products,

special application products, industrial products and lighting products:-

DOMESTIC PRODUCTS:-

MCBs RCCBs
DBs
SPDs FR PVC Wires
Wiring Accessories

SPECIAL APPLICATION PRODUCTS:-

Time Switches Plug and Socket


INDUS
TRIAL PRODUCTS:-
MCCBs Fuses

Cubical Switch
RewirableSwitches

Onload changeover Feeder Pillars

LIGHTING PRODUCTS:-
CFLs FTLs
Domestic Luminaries
VISION

Our vision “enriching quality of life by ensuring safe, efficient and convenient use

of electricity” has been our guiding force for development of new and better

products. The culture of innovation and constant change has played a key role in

our success.

COMMITEMENT

Our focus on “energy management” i.e. designing and building products that not

only protect and control but conserve and comprehensively manage mankind’s

greatest asset i.e. electrical energy has enabled us to serve millions of our

customers both in India and abroad with world class products.

Today Indo Asian has emerged as a strong brand name and has proven track

record both in domestic and international markets. Our deep commitment to social

responsibility gives us much satisfaction as the fact that millions of customers in


every corner of the world respect us, trust us and use our products for protection

of people, property and possessions.

MISSION

 BETTER TECHNOLOGY

 BETTER QUALITY

 BETTER TOMORROW

VALUES OF INDO ASIAN

 Quality and care are vital for customer satisfaction.

 Empowered people are the most valuable assets for our organization.

 Profitable growth is achieved through fostering mutually beneficial relations

with all.

 A culture of innovation and constant change is essential for us to successed.


SOME OF INDO ASIAN MAJOR CUSTOMERS IN INDIA
INCLUDES:-
Railway integral coach factory, Electricity Board, CPWD, PWD, NTPC, Indian

Oil Corporation Limited, Oil and natural gas commission, Reliance Industries

Ltd., Bluestar Ltd, M.R.F Ltd., Ashok Leyland Ltd., Bajaj Auto Ltd., Hindustan

Liver Ltd., Tata Honeywell Ltd.

CROSSING GLOBAL FRONTEIRS

Indo Asian products are well accepted in countries around the world, our regular

overseas market include Russia, Australia, Malaysia, Nepal, Srilanka, U.A.E.,

Iran, Syria, jorden, Angola, and Cyprus. Some of our valued major foreign

customers include public utilities in South Africa.

Bovara Pvt. Ltd. Australia persuasion listriknagra (PNL), Jakarta, Indonesia,

public utilities board Singapore. Ceylon Electricity Board srilanka, Rahad

corporation khartourn, Sudan. Ministry of Electricity and water Dubai, Dubai

Electricity company Dubai. Water and Electricity company Abu Dhabi, ministry

of Electricity and water Doha, ministry of electricity and water Muscat Oman,

Jordanian Electric power supply company Amman..


GROUP’S FOREIGN COLLABORATION

The group’s pursuit of excellence is backed by extensive in-house R&D technical

and commercial collaboration with world leaders such as:-

1) HEINRICH KOPP AG, GERMANY

2) DOEPKE & CO. AG, GERMANY

3) MENNEKES ELECTRO TECHNIC. GMBH & CO., GERMANY

4) KLOCKNER MOELLER CMBH, GERMANY

5) TECHNOELECTRIC, SVI OF ITALY

With over 150 highly qualified manages and 550 strong work force of quality conscious

superbly trained personnel, Indo Asian is all set of scales new heights of growth,

excellence and worldwide acceptance.


QUALITY-CENTERS AROUND THE CUSTOMERS

The name "Indo Asian" is today synonymous with high quality in the field of

electrical distribution and protection equipment in India, Asia as well as other developed

countries.

Quality of our products and processes is, in fact, checked by impartial bodies which is

now a variety of Indo Asian products are ASTA tested and their manufacturing plants

have won ISO 9001 certification from BVQ1, UK. In fact, Indo Asian Fuse gear

Ltd.Was the first Indian manufacturer of electrical safety equipment, to be awared ISO

9001 certification under the upgraded 1994 guidelines.

At Indo Asian, we recognize that Quality holds the greatest insurance to our

Customer. Especially, when one manufacturer's product looks no different from anothers!

Which is why,

in spite of certifications and recognitions , we have put in place Quality

Management Cycle that works right around, from materials procurement to

product application; with everything revolving around the customer's needs,

customer's preferences and his objectives.


Ultimately, how well our products safeguard human lives and property, is our

primary concern.

REVIEW

OF

EXISTING
LITERATURE
To research any problem, it is necessary to review the existing literature. Various studies

relating to different aspects of recruitment have been conducted in the past. A brief

review of some of the major studies in recent years is given below.

R.S. Diwivedi (1998)1 concluded that Motivation is a major determinants of

productivity. Motivation refers to inter striving conditions called wishes, desires, drives,

etc. There is three kinds of motives: psychological, socio-psychological and general.

There exists diverse view relating to motivation. Theories of motivation are classified as

‘contents’ and ‘process’ oriented. The content theory tell what motivates people but

indicates people very little about how motivation is expressed. The process theories

interpret the underlying process of motivation and indicates how to motivate people.

Moorhead Griffin (2002)2 explains the equity theory of motivation assumes that

people want to be treated fairly. It hypothesizes that people compare their own input-to-

outcome ratio in the organization to the ratio of a comparison other. If they feel their

treatment has been inequitable, they take steps to reduce the inequity. Expectancy theory

is based on the assumption that people are motivated to work toward a goal if they want it

and think they have a reasonable chance of achieving it.


Archna Tyagi (2002)3 sys that motivation is the extent to which persistent effort

is directed toward a goal. Intrinsic motivation stems from the direct relation ship between

the worker and the task and is usually self-applied. Extrinsic motivation stems from the

environment surrounding the task and is applied by others.

Fred Luthans (1997)4 explains Motivation is probably more closely associated

with micro prospective of organization behavior than in any other topic. A

comprehensive understanding of motivation includes the need-drive – incentive

sequence, or cycle. The basic process involves needs, which set drives in motion to

accomplish incentives. The drives or motives may be classified into primary, general, and

secondary categories. The primary motives are unlearned and psychologically based. The

general motives are also learned but are not psychologically based. Secondary motives

are learned and are most relevant to the study of organization behavior.

Jerald Greenberg Robert A. Baron (2002)5 Defines motivation is concerned

with the set of processes that arouse, direct and maintain behavior toward a goal. It is not

equitant to job performance, but it is not of several determinants in job performance.

Today’s work ethic motivates people to seek interesting and challenging jobs instead of

simply money.
Stephen P. Robbins (2001)6 explains Motivation is a general inspirational

process which gets the members of the team to pull their weight effectively, to give their

loyalty to the group, to carryout properly the tasks that they accepted and generally to

play an effective part in the job tat group has undertaken. Motivation means a process of

stimulating people to action to accomplish desired goals.

Paul Mersey (1997)7 defines motivation as the driving force within the individual

that peoples him or her towards a behavior or action. Motivation is a psychological

concept that generates with in an individual. It is an inner feeling which energies a person

to work more. Management tries to utilize all the sources of production in a best possible

manner. This can be achieved only when employees cooperate in this task. Efforts should

be made to motivate employees for contributing their maximum.


INTRODUCTION

TO

THE
PROJECT
CONCEPTUALIZATION
Compensation becomes the weak link during uncertainty or downturns. Salary levels
have been taken to unrealistic level. Today the ratio of 1.5:1.0 can be seen between salary
levels for similar positions between IT and non-IT sectors. This has resulted in low
withstanding capacity of companies. And hence downsizing, which surfaced engineering
industry after a couple of decades, is widespread in the IT industry in less than a decade.

It is time to re-look at this factor. Fixed and variable pay should be clearly defined.
Emphasis should be laid on other benefits and social security and welfare schemes for
employee retention rather than only increasing cash component. Companies need to work
towards employability as a retention tool rather than salary.

Benefits could be categorized into salary (fixed and variable), asset building, long term
security, medical needs, social / family needs, education / learning of employee and
family, long term association and specific superior performance awards.

Wage bill should be considered as an important element to be monitored in terms of


percentage of revenue and profits, which is for revenue generating employees and
revenue spending employees.

Thus compensation package and welfare schemes are one of the significant tools in
employee retention and motivation.
OBJECTIVES OF THE STUDY

Primary Objective:

To know the benefits and welfare schemes included in the compensation policy
at INDO ASIAN Securities Ltd. and to measure the satisfaction level of the
employees getting these benefits.

Secondary Objectives:

As the project basically deals with human resource so the objective of the study
is to know different dimensions of HRD. These are as follows:

o Understanding the task and responsibilities of the employees in


the HR department.
o Understanding the role played by the benefits and incentives in
retaining the employees.
o To know the functions of HRD.
o How to ask for long term commitments from the employees by
giving them exclusive benefits.
INTRODUCTION

WHAT IS COMPENSATION?

COMPENSATION:

Compensation is the process of providing adequate, equitable and fair


remuneration to the employees. It includes job evaluation, wage and salary
administration, incentives, bonus, fringe benefits, social security measures etc.

JOB EVALUATION:

It is the process of determining relative worth of jobs.

• Select suitable job evaluation techniques


• Classify jobs into various categories
• Determining relative value of jobs in various categories

WAGES AND SALARY ADMINISTRATION:

This is a process of developing and operating a suitable wage and salary


programs. It covers:

• Conducting wage and salary survey


• Determining wage and salary rates based on various factors
• Administering wage and salary programs
• Evaluating its effectiveness

INCENTIVES:

It is the process of formulating, administering and reviewing the schemes of


financial incentives in addition to regular payment of wages and salary. It
includes;

• Formulating incentive payment schemes


• Helping functional managers on the operation.
• Review them periodically to evaluate effectiveness.

BONUS:

It includes payment of statutory bonus according to the “Payment of Bonus


Act”, 1965, and its latest amendments.

In India the employees drawing above certain compensation are not covered
under the Bonus Act. However, the employer pays them suitable lump sum
variable amount depending upon their level in the organization which is called
“Exgratia”. This is not compulsory on the part of the employer but acts as an
incentive to the employee.

FRINGE BENEFITS:

These are the various benefits at the fringe of the wage. Management provides
these benefits to motivate the employees and to meet their life’s contingencies.
These benefits include:

• Disablement benefit
• Housing facilities
• Educational facilities to employees and their children
• Canteen facilities
• Recreational facilities
• Conveyance facilities
• Credit facilities
• Legal clinic
• Medical, maternity and welfare facilities
• Company stores

SOCIAL SECURITY MEASURES:

Management provides social security to their employees in addition to the


fringe benefits. These measures includes:

• Workmen’s compensation to those workers (or their dependents) whole


involve in accidents
• Maternity benefits to women employees
• Sickness benefits and medical benefits
• Disablement benefits/allowance
• Dependent benefits
• Retirement benefits like provident fund, pension, gratuity etc.

BENEFITS

“Benefits are part of the compensation”

When thinking about a job, considering the salary and the benefits offered by
an employer is important. Many benefits play a critical role in the lives of
employees and their families by assisting in health needs, future financial
security, needed absence from work, and more. Benefits may include programs
like paid time off, medical insurance, dental insurance, disability, life
insurance, retirement benefits, family leave, education and training programs,
bonuses, commission and stock options.

How employee benefit programs vary:

• Employee benefits are based on full time vs. part time employment. Part
time employees are rarely offered benefits. This trend is changing,
however as more part time employees have access to better benefit
packages through their employees. There may be some differences in
benefits due to the type of job held such as with clerical, administrative
or production worker.
• The number of employees in a firm plays an important role as to which
benefit programs are offered. Small size companies generally offer fewer
official benefit programs. Large size companies usually offer a wide
range of benefits.
• There may be some variation in benefits offered depending upon the
industry an individual is researching.

Below is the list of different types of benefits employers may offer their
employees:
Paid time off:-

Employees earn paid time off while they work. Paid time off includes vacation
leave, holidays, sick leave, and in some cases, time off for military leave,
funerals and jury duty.

Health insurance:-

It covers the care that doctors and nurses provide. This may or may not include
dental and optical coverage.

Disability insurance:

When a person is unable to perform their job because of illness or inquiry,


short-term and long-term disability insurance can provide financial support.

Life and accidental death and dismemberment insurance:

Life, accidental death and dismemberment insurance can provide financial


support to yourself and/or your family in cases when unexpected occurs.

Retirement benefits:

Retirement benefits are resources set aside for years later in life, when people
will spend less time in the workforce or have ended their career.

Family benefits:

Law requires firms to provide unpaid time off to their employees for family-
related reasons. This includes maternity leave, paternity leave, and
dependent/elder care.

Education and training:

Some firms offer education and training opportunities for their employees.

Bonuses:

Some employers offer bonuses to employees in order to fill vacant positions in


their business. Some employers give bonus to an employee who recommends
an applicant that they hire. Other bonuses are given by employers to entice an
individual to accept employment or to retain an employee already working at a
business.
Unique benefits:

Unique benefits can vary depending upon the nature of the work. Examples of
unique benefits are cars, cell phones, laptops, cafeteria plans, product or service
discounts, telecommuting options, job sharing, credit unions, uniforms, child
care, nap rooms and nursing facilities.

“The key is: Listen closely. Get in the candidate’s skin. Why a
person left a job or jobs tells you more about them than almost
any other piece of data.” – Jack Welch
RESEARCH METHODOLOGY

The data pertaining to the present study of scope of human resource department
was conducted in INDO ASIAN SECURITIES LTD. in the month of June
and July 2007. The main objective of the study was to know the compensation
package and welfare schemes provided .

RESEARCH:

It refers to a “search for knowledge”.

SAMPLING:

SAMPLE

100 respondents were chosen as sample in order to gather information from


these respondents.

Since the universe is large it was not feasible to conduct census survey within
the limited time period. Moreover there was a secrecy issue and lack of
enthusiasm for on the part of the employees. Therefore simple random
sampling method was used in order to get the necessary information from the
employees of the company. The researcher has to carry out the research as per
the convenience of the people
DATA COLLECTION METHOD

Data may be defined as the facts presented to the researcher from the study’s
environment.

Data collection was done in two ways:

PRIMARY DATA: Primary data was collected through questionnaires that


were filled by the employees of “INDO ASIAN LTD.”

SECONDARY DATA: Secondary data was collected through company’s


manual, journals and websites.
THE COMPENSATION POLICY

COMPENSATION PACKAGE IN INDO ASIAN

The compensation package comprises three broad groups viz. :

• Monthly emoluments
• Annual benefits/ reimbursements
• Retiral benefits

The applicability, amount and mode of payment is as per the grade.

BASIC SALARY

Basic salary is taken as a base for the calculation of-

• HRA or Company Leased Accommodation rent- limit.


• Amount of Domiciliary Medical expenses.
• Leave Travel Assistance.
• Bonus
• Provident Fund and Pension under Employee’s pension scheme.
• Superannuation
• Gratuity amount

HOUSE RENT ALLOWANCE

1. An employee can opt either for HRA or Company leased


accommodation. If he opts for Company leased accommodation, HRA is
not payable.
2. The rent receipt has to be submitted to the concerned finance
department.
COMPANY LEASED ACCOMMODATION:

1. Employees may opt for HRA or company leased accommodation. In


event of an employee opting for company leased accommodation, HRA
will be withdrawn. Corporate Law Department is responsible for
coordinating all leased matters.

2. Limits have been specified for rent, security deposits and advance. In the
event of the rent exceeding the permissible limits, recovery will be made
from the monthly salary of the employee.
3. The responsibility of identifying accommodation lies with the employee.
Corporate Law/ designated person, at locations other than Faridabad and
Delhi, will assist him by introducing authorized brokers to him.

EDUCATION ALLOWANCE:

1. Managers receive this allowance as per limits specified.


2. For claiming tax exemptions as per rules, requisite proof/receipts have to
be submitted to the concerned finance department.

GAS/ WATER/ ELECTRICITY EXPENSES REIMBURESEMENTS:

1. The entitlement is for DGMs and above and is based on the grade of the
employee.
2. The employee is required to submit bills at the end of the month to the
concerned Finance Department, for claiming reimbursement.

MEDICAL REIMBURSEMENT/ BENEFITS:

1. Medical expenses claims are reimbursed (w.e.f the date of joining), upto
one month’s basic salary in a financial year, even during the period of
probation. Income Tax will be applicable to reimbursement in excess of
Rs. 15000/- per annum.
2. Medical expenses can be accumulated upto a block of 3 years and
medical expenses of one block period cannot be carried forward to
another block period.
3. The employee is required to submit bills along with the details, to the
concerned Accounts Department for claiming reimbursement.

LEAVE TRAVEL ASSISTANCE:

1. LTA is applicable for travel to any place in India by the employee and
his/her family as per declaration with the Personnel Department. Family
includes spouse, dependent children/parents/brothers/sisters as per
declaration with the Personnel Department.
2. The entitlement per annum (w.e.f. date of joining but on completion of
one year of services inclusive of probation period) is one and a half
month’s Basic Salary, subject to minimum of Rs.3900/-.
3. Amount of LTA payable will be based on the applicable BASIC
SALARY at the time of claim. While claiming LTA for the first time ,
the prorated LTA due in the financial year in which the employee has
joined can be claimed with the LTA of the financial year in which it is
being availed.

4. Claims are to be submitted, in the prescribed form, to the concerned


Accounts Department after verification by the concerned
Personnel/Time Office, that the mandatory leave was actually taken.
Employees are required to avail of earned leave of a minimum of 5 days
for claiming LTA.
5. LTA, can be accumulated upto 2 years entitlement.
6. Journey for availing LTA can be performed by air (economy class) on
the national carrier, by the shortest route. Reimbursement for travel by
any other mode of transport will be restricted to an amount not
exceeding the air conditioned first class rail fare by the shortest route. If
the journey is performed by a mode of public transport to a place not
connected by rail, the tax exemption is the first class or deluxe class fare
for the mode of transport.

SOFT FURNISHING/ HOUSE MAINTENANCE:


At the discretion of management, on selective basis, amounts towards Soft
furnishing/ House maintenance may be paid.

The amount is payable after confirmation only.

FURNITURE AND HOME APPLIANCES:

DGM and above are entitled to purchase furniture and appliances every five
years as per limits specified for each grade. At the end of five years, the asset
may be disposed off by the company at the realisable value.

COMPANY CAR:

Company car(s) are provide to general managers and above. The make and type
is as per policy which is subject to change from time to time. All allotment/
purchase of cars is centrally controlled by Corporate Administration
Department. The employee is required to submit his request to Corporate
Administration through his Business Head/ Corporate Head, specifying the
type/ model, colour etc.

Policies have been laid down with the regard to expense related to accessories,
fitment items and AC.

TELEPHONE FACILITY:

Office telephone

1. General Managers and above are provided with a Direct telephone


connection.
2. Plan 7A to the PABX Extension, i.e. parallel line to the secretaries, is
also available to General Managers and above.
3. Managers are entitled to external dialing facilities, without S.T.D.,
through the company telephone exchange.
RESIDENTIAL TELEPHONE

1. This facility is need-based for employees and is related to their job/


function. The employee may contact his Administration Department for
details.
2. Eligible managers are entitled to reimbursement of their personal
telephone expenses only subject to approval from their Business/
Corporate Head. Company’s telephone at the residence is provided to
Chief Managers and above, subject to availability of telephones with the
respective telephone exchanges.

INSURANCE SCHEMES AND DEATH BENEFITS:

Following are the insurance schemes for managerial cadre.

a)Medical insurance hospitalisation scheme:

Coverage:

All managers, their spouse, dependent children and financially dependent


parents are covered under this scheme. Premium foe self, spouse and children is
paid by the company and premium for dependent parents is recovered from the
salary of the employee in case he/ she has opted for coverage of parents also
under the scheme.

CATEGORY BENEFITS

MINOR AILMENTS (Rs. p.a. per MAJOR AILMENTS(Rs. p.a. per


member) member)
A 1,00,000 3,00,000
B 80,000 2,50,000
TRAINING AND DEVELOPMENT

Internal Training Programmes:

Regular Training programmes are conducted by the HRD Department to hone


the skills of employees to enable them to perform better in their jobs.

External Training Programmes:

The objective of nominating employees to external training programmes is to


whet specialized skills and knowledge when such skills and knowledge cannot
be imparted through in-house programmes, but are required by the job-holder
currently or in future.

To maximise the benefit of such exposure, after attending the programmes the employee
is supposed to submit a report to the Division Head, with a copy to Corporate HRD.

Self Study Scheme:

This scheme is aimed at enabling the managerial employees to enhance their


knowledge, competence and skills so as to perform their roles more effectively.

Eligibility:

1. All Managerial Employees who have obtained minimum 50% marks in


Diploma/Graduate/Post Graduate course in Arts, Science, Commerce,
Engineering and Medicine are eligible.
2. An employee should have put in at least 2 years of service with the
Group Companies, and should have at least 5 years of service before
superannuation.
3. All categories of Trainees such as MTs, GETs, System Trainees, In-
Plant Trainees, Special Trainees etc., are excluded from this scheme.
LEAVES

General Rules:

1) There are three types of leaves which are given in a calendar year:

 Earned Leave (EL)


 Casual Leave (CL)
 Sick Leave (SL)

2) More than one type of leave (SL, CL, EL) cannot be combined in

one day.

3) Employees joining during the course of the year, can avail CL and

SL on pro-rata basis. EL accrues only in January of the next year to

the extent of pro-rata calculation of number of Els in the year of

joining.

4) Application/availment of any leave more than due will result in

leave-without-pay.

5) Leave entitlement, extent of accumulation and encashment for


employees is as follows:

o CASUAL LEAVE - 7 working days


o SICK LEAVE – 7 calendar days
o EARNED LEAVE – 30 calendar days

6. Wherever a holiday/off day falls between two days of leave which is


calculated on calendar days basis, the holiday/off day will also be
counted as leave. This will however not apply to CLs as it is calculated
on the basis of working days.
7. Sanction of EL at least 15 days before availing it is necessary. CL should
normally be pre- sanctioned.

8. Leaves can be combined in the following manner subject to approval by


the Head of Department.

TYPE OF LEAVE CAN BE PREFIXED WITH CAN BE SUFFIXED WITH


CL SL -------
SL EL EL and CL
EL SL SL

Casual Leave:

1. Casual Leave is intended for urgent work or unforeseen circumstances.


2. Minimum casual leave that can be availed at a stretch at any time is 3
days.
3. CL is credited to the employee’s leave account at the beginning of the
year.

Sick Leave:

1. Application of sick leave for more than 2 days must be supported by a


medical certificate issued by Registered Doctor.
2. Sick leave is credited to the employee’s leave account at the beginning
of the year.

Earned Leave:

1. ELs can be availed subject to minimum of 3 days at a time and can be


availed up to a maximum of three times in a year.
2. EL can be taken for less than three days if SL & CL have exhausted.
3. For any period when an employee is on leave-without-pay, leave is not
earned, and hence proportionate deduction in the number of ELs to be
credited will be made.
4. Minimum of 10 days EL has to be availed by an employee every year,
otherwise the same shall lapse at the end of the year.
5. EL is credited at the beginning of the following year. Once the
accumulated EL is or is in excess of 30 days, the credit for further EL in
a calendar year will be restricted to 20 days (and not for 30 days) in case
the 10 days EL is not actually availed in that calendar year.
6. For encashment of EL, only Basic Salary, Special Allowance is taken
into account. The amount is taxable as per rules.

Study Leave:

1. All confirmed employees below 5o yrs. of age, who have completed 3


yrs. of regular service, are eligible.
2. Leave is granted up to a maximum of 12 months in the entire service of
the employee. It can be divided at the most into two occasions subject to
the maximum limit.
3. Leave is without pay, allowances and benefits. It can however, be
prefixed by EL lying to the credit of the employee.
4. Request for leave should be submitted to Division/ Department Head
along with admission notification and other details of the course to be
pursued.
5. Sanction of leave is discretionary. Leave is allowed only for professional
courses beneficial to the company.

Maternity Leave

1. Eligibility: All women employees who have worked for a minimum of


80 days in the twelve months prior to the delivery.
2. Duration:

 12 weeks in case of delivery.


 6 weeks in case of miscarriage from the date of
miscarriage.
 Additional 1 month for sickness arising out of pregnancy,
premature delivery or miscarriage, medical termination of
pregnancy.

3. The period pf leave is with full salary and can be combined with EL or
SL due as per the rules of EL/ SL. Additionally, a Maternity Medical
Bonus of Rs. 250/- is also payable.

Leave Without Pay

1) Leave-without-pay is the leave applied and granted but not due as per

rules and/ or leave balance of the employee.

2) Miscombination of leaves violating the combination rules will also


result in leave-without-pay.

LOAN SCHEMES

The following loan assistance schemes are operated by INDO ASIAN


Employee’s Welfare Ltd.

Car Loan:

o Eligibility: Assistant Managers and above with 3 years confirmed


service.
o Interest : 6% p.a. flat.
o Recovery Period: if new car- 5 years, if old car- 3 yrs.
o 2nd loan : if new car- 2yrs after clearing 1st loan., if old
car-

1 yr after clearing 1st loan.

Two Wheeler Loan:

o Eligibility: All categories of employees with 5 yrs confirmed


service.
Utility Loans:

o Eligibility: All categories of employees with 5 yrs confirmed


service.
o Interest : 6% p. a. flat.
o Recovery Period: 3 yrs.
o 2nd loan: waiting period 2 years after clearing 1st loan and
employees services are for more than 10 yrs.
o 3rd loan: waiting period 2 years after clearing 2nd loan and
employee services are for more than 20 yrs.

House Loan:

o Eligibility: minimum 5 yrs. continuous service in the


Company/Group Company
o Object: For construction of house/ purchase of constructed house/
flat
o Amount of loan: Discretion on a case-to-case basis subject to 85%
of the cost
o Interest rate: @ 8.5% on reducing balance
o Repayment terms: a) 12 months moratorium on Interest and

Principal repayment.

b) repayment within 60 to 120 months or

retirement age whichever is earlier.

SCHOLARSHIP SCHEMES

1. The professional/ academic study scholarship schemes are operated by


INDO ASIAN Employee Welfare Ltd..
2. The scheme is applicable to employees upto managerial grade, who have
five years of confirmed service; and their dependent children.
3. Application from employees/ dependent children muct be submitted
within a month of commencement of the course, in the prescribed form
and carry the approval of the Division/ Department Head.

The scholarship value for different courses at a University or at any other


institution recognised by the Central/ State Government are as follows:

COURSE OF STUDY MONTHLY SCHOLARSHIP VALUE

(Rs/Mnth)

(to be released half yearly)

RESIDENT NON-
RESIDENT
1. Post graduate/ Graduate level course in

• Engineering
250
Modern Medicine (MBBS, BDS, 700
BHMS/DHMS,
BIMS )
250
• Management(MBA), Computer Science/MCA
• Architecture, Textile/ Industrial Design
• Law, MSW, Bachelor/ Masters in Education, Public 700
Administration, Journalism, Advertising, Industrial/
Public Relations 250

• Hotel Management
700

150

400
150

400
2. Diploma Level Course in

• Management 300 150

• Engineering

• Nursing, Physiotherapy, Nutrition


3. Correspondence Course in

• CA, CFA, ICWA Rs. 4800/-

a) Rs. 2400
after passing
intermediate
exam.

b) Rs. 2400
after passing
• Company Secretary final exam.

Rs. 3000/-

a) Rs. 1500
after passing
intermediate
• AMIE exam.

b) Rs. 1500 on
completion of
course.

• General Management from AIMA for 3 years. Rs. 3000/-

a) Rs. 1500
after passing
part A.

• M.B.A. from Open University ( 4 modules). B) Rs. 1500


after passing
part B.

Rs. 3000/-

a) Rs. 1000
after passing
first year.

b) Rs. 1000
after passing
second year.

c) Rs 1000 after
passing third
year.

Rs. 7200/-

Rs. 1800 for


each module
after passing.

Scholarship Support For Academic Studies By Children Of Employees

1. Through this policy INDO ASIAN aims to recognise the performance


and subsidise the cost of education of children of all regular employees
who have completed a minimum 3 years regular service with INDO
ASIAN Group of companies.
2. Applications must be submitted on the prescribed forms ( available with
Personnel Department) once a year, supported by results of the annual
school/ college examination and documentary evidence of admission to
next level of selected course of study.

Merit Scholarship

Covers school/ college education specifically from Class XI to University level


and prescribes higher performance standards for the beneficiaries at Board/
Universities Examination. The scholarship amounts are as follows:

SCHOLARSHIP PAYABLE PERCENTAGE AT PREVIOUS SCHOLARSHIP

FOR STUDY IN CLASS(ES) ANNUAL EXAM AMOUNT(Rs p.a.)

1) XI and XII 70% 2050/-


2) Graduation
70% 2650/-
• B.Sc. (Hons/General)
• B.A. (Hons/pass) 65% 2650/-

• B.Com. (Hons/pass) 65% 2650/-


3)Post Graduation
70% 2800/-
• M.Sc.
65% 2800/-
• M.Com./M.A.

RETIREMENT SCHEMES

1. Employees will retire on attaining the age of 58 years unless otherwise


specifically stated.
2. The normal date of retirement will be the last day of the Calendar month
during which the employee complete their retirement age (as per clause
1 above).

Provident Fund Scheme:

1. Employees are enrolled as members of the Provident Fund Scheme either with
Regional PF Commissioner or the Company’s PROVIDENT FUND TRUST from
their date of joining.

PROVIDENT FUND SALARY = BASIC SALARY + SPECIAL

ALLOWANCE

2. Employees must nominate the person(s) eligible to receive the PF accumulations.


If a member has a family at the time of making a nomination, the nomination shall
be in favour of one or more persons belonging to his family. Any nomination
made in favour of a person not belonging to his family shall be invalid. If at the
time of making the nomination the employees did not have a family, and later on
he acquires a family, the earlier nomination becomes invalid. In absence of any
nomination, the person(s) eligible to receive the PF accumulations will be
determined as stipulated in the PF Act/ Scheme
3. The Company and the employee contribute 12% of the employee’s provident fund
salary as Provident Fund. The employee may contribute a higher percentage but
without a matching contribution by the Company. The accumulation lying to the
credit of a member are:

EMPLOYEE’S CONTRIBUTION+COMPANY’S
CONTRIBUTION+INTEREST

The interest rate is declared by the PF authorities from time to time.

Presently the rate of interest is 12% on a monthly running balance on

PF accumulations.

4. The employee can withdraw the accumulations lying to his credit on:
o Retirement, both normal and voluntary
o Retirement, due to permanent incapacitation.
o Migration from India for permanent settlement abroad.
o 60 days from the date of cessation of service, provided you do

not take up employment in an establishment covered by PF Act.

o In case of self employment (after 60 days from the date of


cessation of service).

o The Trustees of the PF Trust may permit at any time within 12

months before the date of retirement on Superannuation of a

member, the withdrawal of upto 90% of the amount standing to

the credit of the member.

5. In case of death of a member, the accumulated amount is paid to the nominee(s)


in proportion specified by the member in his Nomination Form. In case there is no
nomination, the PF Commissioner/ Trustee have the right to distribute the amount
among family members as given in the company records or on production of
succession certificate/ letter of administration to the satisfaction of the PF
Commissioner/ trustees.
6. The employees can transfer his PF accumulation into and out of the PF scheme at
joining and leaving respectively.
7. Based on minimum qualifying criteria, non-refundable and refundable advances
can be availed from the Provident Fund contribution. The interest rate charged on
refundable loans is higher by 1% than the interest rate which the PF
accumulations earn

EMPLOYEES PENSION SCHEME

1. This scheme is a part of the Provident Fund Act.


2. The Employee’s Pension Scheme applies to:
o All members of the Provident Fund who were contributing to the Family
Pension Fund (FPF) 1971 as at 15.11.95.
o All new entrants to Employee’s Provident Fund Scheme 1952 (EPF) from
16.11.95.
3. The rate of contribution towards employee’s Pension Scheme is 8.33% of the pay
which is diverted from Employer’s share of PF. The Central Government also
contributes 1.16% of the pay of the member (present maximum pay ceiling is Rs.
5000/-)
4. The employee must nominate the person(s) eligible to receive the benefits under
this scheme. In absence of any nomination, the person(s) eligible to receive the
benefits will be determined as stipulated in the PF Act / Employee Pension
Scheme.
5. Pensionable Salary is average of monthly salaries for 12 months preceding the
date of exit.
6. Pensionable Service is the service rendered by the members for which
contributions have been received in Employee’s Pension Scheme, 1995. In case
the member retires on attaining the age of 58 years and/ or has rendered 20 years
of pensionable service, two years will be added as bonus years in the pensionable
service.
7. Eligible Service is the aggregate of Past Service (i.e. period of service before
16.11.95 in which contribution is made towards Family Pension Scheme) and
Actual Service (i.e. of service after 16.11.95).

Benefits Under The Employee’s Pension Scheme:

1. The benefits available under the scheme are :


a. Monthly self pension payable to employee:
 Short service pension: where service is more than 10 years but less
than 20 years at any age.
 Retirement pension: where service is more than 20 years and age is
less than 58 years.
 Superannuation pension: where service is more than 20 years age
is 52 years.
 Disablement pension.
b. Monthly widow pension payable to eligible widow.
c. Monthly dependent pension payable to children/ orphans

2. Summary of benefits:

. NEW ENTRANTS EXISTING


MEMBERS
A RETURN OF Refund of contribution with interest Same benefits together with
CONTRIBUTION @ 2% below Employees Provident past service benefit due to
Fund Rate. The employee will have membership of Employee’s
Cessation service: option not to take such refund and Family Pension Scheme
remain in the scheme until 58 years of being TABLE A multiplied
Less than-10days age, when he/she will be covered for with TABLE B factor for the
widow/children/orphan’s benefits period between 16.11.95 and
Age –any age during this period of deferment. date of exit.
B MONTHLY SELF 1/70x Pensionable salary x Same benefit + past service
PENSION Pensionable service, payable from age pension due to membership
of 58 years. of Employee’s Pension
Superannuation/ Scheme being monthly
Retirement/ Short pension varying between 85
Service Pension: to 170 multiplied by TABLE
B factor for period between
16.11.95 and date of
attaining of 58 years of age
subject to special provision
as given below:

3. Special Provision:

Age as at Type of pension Minimum Minimum In case past service is less


16.11.95 pension pension than 24 years, the pension
including past payable and past service
service benefit benefit taken together shall
if past service is be proportionately less,
24 years subject to minimum of
<48 Superannuation/retirement/short 635 800 450
service
Between Superannuation/retirement 438 600 235
48 and 53
53 and Superannuation/retirement 335 500 265
above

Disablement Pension

A member who is permanently disabled during the employment shall be entitled to


pension as admissible to the member under self pension scheme subject to minimum of
Rs. 250/- per month, not withstanding the fact that the member has not rendered the
pensionable service entitling him to pension under self pension scheme, but provided the
member has made at least one month’s contribution to the pension fund. The monthly
member pension in such a case shall be payable from the date following the date of
permanent/ total disablement and shall be tenable for the lifetime of the member.

Widow’s Pension

a.) If a member dies while in service and atleast one month’s contribution has been paid
in the Employee’s Pension Scheme, then pension shall be payable to the legal widow/
widower equal to monthly member’s pension which would have been admissible as if the
member had retired on the date of death or Rs 450/- or the amount indicated in Table C
whichever is more.

b.) If a member dies after the date of exit from the employment but before attaining the
age of 58 years, a monthly pension shall be payable to legal widow/ widower equal to
monthly member pension, which should have been admissible as if the member had
retired on the date of exit or Rs. 250/- per month or the amount indicated in Table C,
whichever is more.

c.) If a member dies after commencement of payment of monthly member’s pension, the
pension shall be payable to legal widow/widower equal to 50% of the monthly member’s
pension payable to the member on the date of death subject to a minimum of Rs. 250/-
per month.

Children’s Pension

Monthly children’s pension of each child shall be 25% of the amount admissible to the
widow/widower of the deceased member as monthly widow pension subject to minimum
of Rs.115/- per month for each child. Monthly children’s pension shall be payable upto
the age of 25 years of the child and shall be payable to maximum two children at a time
and will run from the eldest to the youngest child in that order.

Orphan Pension

If the deceased is not survived by any widow, but is survived by children failing within
the definition of family; or if the widow pension is not payable, the children shall be
entitled to a monthly orphan pension equal to 75% of the amount of the monthly widow
pension subject to a minimum monthly orphan pension of Rs.170/- per month for each
orphan. In the event of death or remarriage of the widow/widower after sanctioning

widow/widower pension, the children shall be entitled, in lieu of monthly children


pension, to orphan pension from the date of death/remarriage of widow/widower.

The monthly orphan pension shall be admissible to a maximum of two orphans at a time
and shall run in order from the eldest to the youngest orphan.

Option For Commutation:

A member eligible to pension may, in lieu of pension normally admissible under monthly
member’s pension, opt to commute upto a maximum of one-third of his/her pension so as
to receive hundred times the monthly pension so commuted as commuted value of
pension. Balance pension will be paid on monthly basis as per option for return of capital.
Option For Return Of Capital:

A member eligible to pension may, in lieu of pension normally admissible


under monthly member’s pension subject to commutation of pension, if any,
under option for commutation, opt to draw for reduced pension and avail of
return of capital under any one of the three alternatives given below:

ALTERNATIVES REVISED AMOUNT PAYABLE AS


PENSION RETURN OF CAPITAL
PAYABLE
1) Revised pension during lifetime 90% of original 100 times the original monthly
of member with return of capital on monthly pension. pension on death of member to
his/her death. the nominee.
2) Revised pension during the 90% of original 90 times the original monthly
lifetime of member, further reduced monthly pension to pension on death or widow
pension during lifetime of the widow the member. On remarriage to the nominee.
pr her remarriage whichever is his/her death 80% of
earlier and return of capital on the original monthly
widow’s death/remarriage. pension to the widow.
3)Pension for a fixed period of 20 87.5% of the original 100 times the original monthly
years not withstanding whether the monthly pension for a pension at the end of 20 years
member lives for that period or not. fixed period of 20 from the date of
years. commencement of pension to
the member if he/she is alive,
otherwise to his/her nominee.

The Employee’s Pension Scheme is operated by the Regional Provident Fund


Commissioner for all members including those covered by the Company’s Provident
Fund Trust.

GROUP INSURANCE SCHEME AND DEATH BENEFIT SCHEME


1) The Employees Deposit Linked Insurance Scheme is part of the Provident

Fund Act. The company has obtained exemption from the statutory

scheme and in lieu of EDLI has instituted the Group Insurance Scheme.

2) This scheme is applicable to all employees covered under the Provident

Fund Scheme.

3) Employees are eligible for benefits under the Group Insurance Scheme

from their date of joining Provident Fund.

4) In case of death of an employee while in service, Rs. 37,000/- is paid to

the nominee(s)/dependents as specified by the nominations made for the

purpose of receiving Provident Fund accumulations.

5) In addition, the company has taken another policy under Death Benefit

Scheme, from which the following amounts are also paid to the nominee

In case of death of an employee while in service.

GRATUITY

The gratuity scheme is operated by the Company’s Group Gratuity Fund Trust.

1) Gratuity is payable to all employees who have been in the continuous

Service of the company for a minimum period of 5 years. However, in case of death or
incapacitation during the service, no minimum qualifying period is required. The period
of continuous service includes any period of service interrupted by sickness, accident,
leave, layoff, strike, lockout or cessation of work not due to nay fault of the employee.
Period of apprenticeship training is not included.

2) Gratuity is payable on separation from the company on account of:

• Retirement –normal or voluntary.


• Resignation.
• Incapacitation during the service rendering the employee incapable of continuing
in service.
• Death during the service.
• Retrenchment
• Termination/dismissal

3) a. The amount of gratuity payable is

(Basic salary+ Special Allowance) x 15x number of years of service

26

b. In case of death of an employee the amount of Gratuity paid to the

nominees are as follows:

LENGTH OF ELIGIBLE SERVICE IN AMOUNT OF GRATUITY


YEARS
Not more than 5 5 months Basic salary and Special
Allowance
More than 5 but less than 10 10 months Basic salary and Special
Allowance
More than 10 but less than 20 15 months Basic salary and Special
Allowance
More than 20 1.5 times gratuity as calculated in 3a. above

4) Employee must nominate the person(s) eligible to receive Gratuity. Gratuity is payable
to the employee or his/her nominee(s). Nominees shall be deemed to consist of the
following in the order specified:

• Spouse
• Children- married/ unmarried
• Dependent parents
• The widow and children of predeceased son

5) Gratuity can be forfeited if:

• Service is terminated for any act of willful omission or negligence causing


damage or loss to or destruction of property belonging to the Company to the
extent of the loss.
• Partially or wholly if service is terminated on account of riotous or disorderly
conduct or any other act of violence.
• Partially or wholly if service is terminated for an offense involving moral
turpitude in the course of employment.

6) As per Income Tax Act, 1961; Gratuity upto a limit of Rs. 250000 is exempted from
Income Tax, subject to other conditions specified in the Act.

SUPERANNUATION SCHEME

The Superannuation Scheme is operated by the Company’s Senior and Supervisory Staff
Superannuation Trust. The Trust buys annuities from LIC for payment of pension at the
time of commencement of payment of pension.

Applicability:

The scheme is applicable on certain terms and conditions to the employees belonging to
the cadre of JM and above. The salient features of the scheme are:

• All employees on confirmation are enrolled as members.


• The company contributes to the Trust as per rules to secure banafits provided in
the rules.
• The eligibility criteria for receipt of pension, is as follows:

a) If retired on normal retirement date: Every member

b) If retired before normal retirement date

i) For members enrolled under the scheme on or before

30.11.80 : years of continuous membership of the scheme

ii) For members enrolled under the scheme on 01.12.80:

40 years of age and 12 years of continued service.

c) On death/ permanent incapacitation of the member:

every member

• The quantum of pension is based on:


a. Pensionable salary
b. Pensionable service
c. Pension factor

Benefits
a) Member pension ( payable for 15 years certain & life thereafter) :

Applicable if a retires on normal retirement date, and is calculated as

under

NORMAL RETIREMENT PENSION = PENSIONABLE SALARY X


PENSIONALBLE SERVICE X PENSION FACTOR

Minimum Pension: Minimum pension is applicable only to the members


who are admitted to the Scheme on or before 30.11.80

b) If a member takes premature retirement and fulfills the eligibility criteria


for receipt of pension ( payable for 15 years certain & life thereafter):

The pension shall be calculated as a) above and shall be payable either on:

(i) On normal retirement date: Full pension as calculated in a) above

(ii) From the date of premature retirement: Pension as calculated in 5a) above
reduced by the discounting factor.

c) On death/ permanent incapacitation of member while in service (payable for 15


years certain & life thereafter):

Amount of pension in such cases shall be calculated as:

Last drawn Basic Salary X Pensionable Service + 50% of remaining service upto the date
of normal retirement X Pension Factor

The options available for receipt of pension are as follows:

• Pension payable assured for fifteen years certain and life thereafter.
• Commute one third of the value of the annuity and receive two third of the normal
pension for 15 years certain and life thereafter.
• Reduced pension payable for life with return of capital (plus any terminal bonus if
declared by LIC) to the nominee. This option can be exercised with or without
commutation of annuity.
• If the member gives months’ notice before his retirement he may opt for life
pension without any guaranteed period but 50% of the pension payable to him
will be payable after his death to any one person of the following:

1. Living spouse

2. Legitimate sons & unmarried daughters each upto the age of 25 yrs.
3. Living parents or mother/ father-in-law, whosoever was habitually

the member.

• A member shall also be entitled to opt for a reduced pension for himself in order
to provide a higher pension over and above 50% of above to other beneficiaries
specified above.

FAMILY BENEFIT SCHEMES APPLICABLE ON THE DEATH OF


AN EMPLOYEE.

1) Death Purse: Collected through voluntary contributions by employees in the respective


Divisions/ Plants. The amount is approximately Rs. 35,000/-

2) (a) Group Insurance Scheme:

All employees covered under EPF scheme are insured for Rs. 37000/-

(b) Death Benefit Scheme:

All employees are insured for Rs. 40,000/-

3. Gratuity
4. Superannuation Pension
5. Pension Under Employee’s Pension Scheme.
DATA
ANALYSIS
AND
INTERPRETATION
DATA ANALYSIS AND INTERPRETATION
SWOT ANALYSIS is a tool for auditing an organization and its environment.

STRENGTHS

• Effective communication between the top level and the lower level management
in INDO ASIAN.
• Good public image of the company that has helped the company to get hold of the
market.
• Experienced and dedicated workforce strives towards achieving the common
organizational goal.
• Ability of the employees to work overtime as and when required.
• Hiring trainers from within the company, this has proved to be cost effective
strategy on the part of top-level management.
• Multi skilled workers at the lower level in order to carry out manufacturing
process effectively.
• High satisfaction level of the employees enabling them to contribute their
maximum towards the organization.

WEAKNESSES

• Lack of internal motivation among the workers in the organization.


• No cash money given to the lower level management for their extraordinary
contribution towards the company.
• Unable to retain the employees due to lack of new welfare schemes.
• There is lack of promotional activities as far as the financial services of the
company are concerned.
• Inability of the company to access new markets so as to earn profits.
• There is lack of coordination between various departments which sometimes
causes hindrance in the smooth sailing of the functions of the organization.
• Lack of enthusiasm among the employees to undergo training and development
programmes apart from their job, which is an obstacle in their overall
development.
• Lock of discipline regarding punctuality at the workplace.

OPPORTUNITIES

• Growth of insurance market brings ample opportunities for INDO ASIAN’


financial services to grow as an individual business.
• Due to the globalization the new markets have emerged and there is an
opportunity for the company to tap these markets.
• To hire trainers from outside the company who train the employees without
charging anything. This will help the organization to reduce the total amount
spent on welfare of the employee.
• To venture in diversified business such as from manufacturing agri machinery to
providing financial services will help the company to attain good reputation in the
market.
• The concept of outsourcing provides ample opportunity to the company to explore
new markets and reach inaccessible markets.

THREATS

• Emerging competitors is a great threat for the company in order to maintain its
market share along with its sales.
• Availability of cheaper technologies poses a big threat for the organization.
• Changing political environment of the company poses a great threat on the
financial resources of the company.
• Growth of urbanization has lead to decline in the selling of its major product
which is a serious matter for INDO ASIAN. Therefore to continue its sales it has
to take some extra measures

PESTE ANALYSIS

It is the technique of analysis in which a thing is analysed on the basis of five aspects
namely political, economical, social, technological and educational.

Political Analysis:

It refers to the level of politics and biasness which affect an organizational environment,
specially the human resource department.

In INDO ASIAN Ltd. no biasness was seen as the system is completely transparent. Also
there was a change in salary structure due to new minimum salary standards set by the
government.

Economical Analysis:

In INDO ASIAN Ltd. 8% – 9% of the total turnover is given to the HR department out of
which 2.3% in spent on benefit and welfare schemes. Similarly each department is
provided with a share to carry out its function smoothly.
It has adopted many cost effective strategies in order to reduce the overall running cost of
the company.

Social Analysis

It aims at improving the standards of living of the employees by providing them extra
benefits apart from the salary. Also society is benefited from its cheap and good quality
products.

It also caters to the medical needs of the society as it has its own hospitals that are INDO
ASIAN Heart Institute and Research Center and INDO ASIAN Hospital and research
center.

Technological Analysis

Modern and updated technology is used in order to compete with other brands available
in the market.

Moreover the facility of internet and intranet is available for the coordination among the
departments for the smooth functioning of business.

Market watch, real time market movements’ software attached to various stock
exchanges.

Educational Analysis

Regular training and development sessions are carried out so as to enhance the
knowledge and skills of the employees and workers respectively. It has resulted in
effective and efficient production. Training is basically carried out in three ways.

Internal Training Programmes:

External Training Programmes:

Self Study Scheme:


QUESTIONNAIRE ANALYSIS

Reasons for joining VISCO Group

Interpretation:
The above data shows that the reason for joining INDO ASIAN was the compensation
package and welfare schemes for majority of the employees. It throws light on the fact
that people give maximum weightage to the benefits given to the employees while
selecting the job for themselves.
Awareness regarding welfare schemes
Interpretation
100% of the employees were aware of the welfare schemes which show that there is a
smooth communication between the different levels of management. It also conveys to us
at every individual is considered important no matter to which level he belongs to as he’s
given complete information about the company.

Importance of the compensation package and welfare schemes

Interpretation:
Most of the employees at managerial level are of the view that benefits play a significant
role in retaining the employees and the workers. One of their primary reasons for joining
INDO ASIAN was the benefits included in Compensation Package and Welfare
Schemes. This is also a major reason for employee turnover.

Analysis of satisfaction level of the employees


Interpretation:
The above data depicts that the satisfaction of the employees results in high level of
efficiency benefiting both the company and the employees. It also highlights the mission
of the business which is to serve both its customers and its employees in an equal
manner.
Where the company stands on the scale of providing benefits

Interpretation:
Majority of the employees place their company in an excellent position regarding the
benefits which shows their dedication and commitment towards the company. Also it
depicts that the top level management is concerned about the benefits not only at strategic
level but also at grass root level
Which areas of compensation do you think the company should pay
more attention to
Interpretation:
The data shows that the employees are quite satisfied regarding the medical insurance
and retirement benefits given to them. The company should lay more emphasis on the
recreational; facilities inside the company itself. This can include games, seperate
recreational room where the employees could relax during the breaks from their hectic
schedule.

Which of these qualities best describe your trainer

Interpretation:
Training and development is provided to the employees for their overall development.
The data depicts that 42% of the trainers have full knowledge of their subjects while only
28% of them are open to suggestions. Therefore while appointing a trainer all the factors
should be kept in mind so as to satisfy the trainees.

There are some limitations also, which I have faced during the preparation of this project
report. Some of the limitations are as under: -

• Data Secrecy by the Company: - From the companies’ point of view there
are some things that they don’t disclose to everybody. As there are some
confidential matters that should not be leaked out.
• Low Communication With Senior People: - As company people have to do
their own work too, along with providing training to people like us. So, there
remains a communication gap with the senior executives as well.
• Lesser Time:- We too have less time to understand all the working of the
company, employees don’t pay much attention because their own work load.
SUGGESTIONS
Although I do not find myself capable of suggesting something extraordinary to a well
established company yet after undergoing training I have find some suggestions which
can bring some added advantage to the company:

Entry into insurance sector:

As INDO ASIAN has recently entered into financial services, it should also
include insurance services as it is a booming area these days. This will enable it to
earn more profits.

Outsourcing:

The company should outsource its manufacturing in order to enter the new
markets. For example there is no branch of INDO ASIAN in southern part of
India.

Proper Advertising Channels:

More stress should be laid on the advertising of the services being provided by the
company. Print ads and hoardings is a cheaper means of advertising as compared
to other means.

Customize Manufacturing:

Manufacturing should be customized and not standardized so as to suit the needs


of the individual customer. This will enhance the image of the company.

Variety of Rewards:

Instead of mementos, cash prices should be given to the workers in order to boost
their morale.

Various Other Welfare Schemes:

Different welfare schemes should be given at the different levels of management


keeping in mind the motivational requirements of each level.

Other Strategies:
Companies should start looking at benefits, social security and welfare schemes
for employee retention rather than only increasing the monetary part of
compensation.

Other Benefits:

Various other benefits and welfare schemes that can be added in the company
include:

• Instead of privately owned canteens subsidized canteens should be operated.


• There should be some welfare schemes for the family members of employees.
• Entertainment allowance should be part of the benefits given to the employees.
• Presently the working days in the company is 6 days a week which should be
reduced to five days to distress the employees for better productivity.
• Benefits should be directly proportional to the performance and not to the post.
• The training and development program should not be only limited to the workers
but should also be given to the employees at various level for the individual and
organizational welfare.
• People with different skills should be constituted as a group and instead of
individual benefits group benefit schemes should be introduced to propel the spirit
of team work.
• Along with superior performance awards, the concept of specific performance
awards should be included in order to achieve company specific goals.
• Loosing job is a big fear for an employee as well as for his family. The welfare
package should include the job security element for the desired outcome.
• Training not only should include skill enhancement but also to improve the
overall personality of the trainee.
CONCLUSION
An organization is a complex system of people each operating with their own beliefs but
for a common purpose. Compensation Policy and welfare schemes have come up to be
considered as a management discipline, especially since the birth of the concept of the
simultaneous development of individual and organization. An increasing number of
people asserted that because businesses were making a profit from primarily using our
country's human resources, these businesses owed to the people of the country.

In organizations managers face difficult and exciting challenges today. A global


economy in which world-class quality is the ticket to success, increased diversity in the
work force, calls for more attention towards satisfying this diversified work force in order
to retain them. As trustees of society’s precious human, material, financial, and
informational resources, managers hold the key to a better world.

When I embarked on the project to study compensation package and welfare schemes, I
gained valuable learning experience to find out how well this is integrated in the
organization. Managing people and their needs in the workplace holds tremendous
benefit for leaders and managers, benefits both moral and practical. This is particularly
true today when it is critical to understand and manage highly diverse needs and wants in
the competitive environment.

QUESTIONNAIRE:

1. What was your reason for joining VISCO Group?

Unemployed and needed a job

Referred by a friend

Compensation package and welfare schemes

2. Are you aware of the compensation package and welfare schemes provided in
the company?

Yes No

3. Do you think benefits are important for employee satisfaction?

Very important

Important

Not at all important


4. Are you satisfied with the welfare schemes provided in your company?
Very satisfied
Satisfied
Not at all satisfied

5. Where do you rate the company on the scale of providing benefits?


Excellent
Good
Fair

6. Which areas of compensation do you think the company should pay more
attention to?
Medical Insurance
Retirement Program
Loan Schemes
Recreational Facilities

7. Which of the jobs are you engaged in?


Field Job
Office Job

8. Which of these qualities best describe your trainer?


Had knowledge of the subject
Was open to suggestions
Recognized employee contribution

9. What could be your reason for leaving VISCO Group? (52,10,21,17)


Higher Pay
Compensation Package and Welfare Schemes
Better job opportunities
Personal reasons

BIBLIOGRAPHY

S.No. Particulars
1 Books Author
• Human Resource Management in Developing Countries. Taylor and Francis
• Human Resource Management C. B. Mamoria
• Management and Organizational Behavior Laurie J. Mullins
• Company’s annual reports Indo asian
• Journals
2 Websites

www.citehr.com
www.hrcommunity.com
www.wikipedia.com
www.google.com