Wage and Salary Administration Sample Full Project
Wage and Salary Administration Sample Full Project
Wage and Salary Administration Sample Full Project
1
INDEX
CHAPTER 1:
INTRODUCTION
NEED FOR THE STUDY
OBJECTIVES OF THE STUDY
SCOPE OF THE STUDY
METHODOLOGY
LIMITATIONS
CHAPTER 2:
INDUSTRY PROFILE
COMPANY PROFILE
CHAPTER 3:
THEORETICAL FRAME WORK OF THE STUDY
CHAPTER 4:
ANALYSIS AND INTERPRETATION OF THE STUDY
CHAPTER 5:
SUMMARY
FINDINGS
SUGGESTIONS
ANNEXURES
BIBLIOGRAPHY
INTRODUCTION
One of the most important factors in Human Resource Management is Compensation
Management. The soundness of compensation management depends upon the amount of wage or
salary is paid to an employee for a fair days work.
Wage and Salary administration refers to the established and implementation of sound
policies and practices employee compensation. Wage and salary administration is one of the vital
areas of the personnel administration. For sound wage and salary policies and programs are
essential. To procure, maintain, develop, promote and transfer employees and to get effective
results from them.
An organization has to balance fairly financial and non financial rewards extrinsic
awards. Effective awards and intrinsic awards. Effective reward system requires not only that the
absolute level of compensation paid by an organization compares favorably but also enquires that
it satisfies the principles of internal equity and equity with the job content. The employees‟ gets
pay satisfaction of the perceived salary is equal to actual salary received and actual salary is less
than perceived salary the employee is dissatisfied with the salary. The remuneration paid by the
employer for the services of hourly, daily, weekly and fortnightly employees.
The remuneration paid to the clerical and managerial personnel employed on monthly or
annual basis. It is the amount of remuneration for unit of time excluding incentives, overtime pay
etc. Is the amount of wage fixed for the unit of time fixed on the basis of job evaluation
standards? Is an assembly of all properly evaluated standard wage rates set from in the sequence
according to the job and size of the rate. Refer to compensation given to the employees over and
above wage rates which often is not directly related to output performance of time worked. Refer
to special rates to certain period such as over time, Sundays and holidays. The objective of wage
and salary administration is numerous and sometimes conflict with each other. Candidates decide
upon their career in a particular organization mostly on the basis of the amount of remuneration
the organization mostly on the basis of the amount of remuneration the organization offers
qualified and competent people join the best paid organization. The organization should aim at
payment of salaries at that level where they can attract competent and qualified people. If the
salary does not present compare favorable with that of other similar organization. Employees
quit the present one and join the other organization.
The organization must keep the wage levels at the competent level, in order to prevent
quite. Internal equity does mean payment of similar wages for similar jobs within the
organization. External equity implies payment of similar wages to similar jobs in comparable
organization.
Over all salary range for all the jobs in an organization is arranged. Each job grade will
be assigned salary range. These individual salary ranges will be filled into an overall range
Overall salary grades of the organization may be adjusted on the data information collected about
the salary levels of similar organizations. Individual salary may also be adjusted based on the
performance of the individual employees.
NEED FOR THE STUDY
Many organizations today, in order to competent enough to meet the challenges need to
continuously changes to develop wage and salary administration.
Thus Company‟s are supposed to adopt well built wage and salary administration.
Need for the study is that the performance of wage and salary administration is to be
studied in order to make changes if any, in order to retain the employees and also to
attract.
The new employees to meet the challenges of the organization.
The study also aims at evaluating the practical wage and salary administration under
taken by the organization in their work environment to improve their working skills.
OBJECTIVES OF THE STUDY
The present study has been conducted with the following objectives:
To study the fluctuations in wage and salary policies of FACOR management and
employee satisfaction.
To compare the wage and salary administration practices between workers and officials
of M/s FACOR.
To know the strategies adopted in the wage and salary administration practices of
FACOR during the challenging situation faced by it and to come out if such situations.
To know the level satisfaction of the employees regarding the wage & salary
administration in Facor.
SCOPE OF THE STUDY
The Scope of the study covers with extent of help to check all the activities of salary
administration against the company polices.
An attempt was made to know the pleasure of employees regarding their wages and
salary administration.
Hence this study specially is focused on wages and salary administration which is a key
factor for employee job satisfaction.
The Organization under study namely, FACOR Alloys Corporation Limited,
ShreeramNagar (Garividi) is one of the major concern in India for a generating and distributing
HC Ferro manganese, silicon manganese, HC Ferro chrome, Ferro silicon magnesium, MC Ferro
magnesium, LC Ferro chrome to the industries and domestic purpose in south India.
METHODOLOGY
In study the primary data collected by means of personal interview with the help of
questionnaire.
PRIMARY DATA:
The information consists of data gathered from the differnt source. Primary data is
the refresh data. This has been collected from various sources. The sources adopted to get data is
questionnaire and through observation.
Questionnaire is designed in such way that every employee can understand. It
consists of 16 questions which are sample and close and open end question.
SAMPLING:
In order to get data a sample size of 100 is taken and employee selected on
random base.
SECONDARY DATA:
The data is collected from published reports, unpublished reports, annual reports,
unpublished manuals and materials etc.
The study made by me in FACOR ALLOYS Limited was confined to determine wage and
salary method and practices being followed:
The Indian Ferro Alloy Industry is not as old as the Steel Industry. From a humble
start in the fifties the capacity has grown enormously with enough potential to increase exports in
future. However, the high power tariff in India is the stumbling block. Though the industry
started getting power from National Power Corporation at NTPC tariff, it is still higher than the
power tariff available in countries like Norway, China, and Russia, Kazakhstan etc., which are a
major producers and exporters of Ferro alloy too.
What is more, the import duty on Ferro alloy has also been reduced drastically to 25
per cent in the post – liberalized era. Further, steel exporters are eligible to import their raw
material including Ferro Alloys free of duty against advance license. With plenty of raw
materials like ores and reluctant available in the country, what the industry needs is a level
playing field by power being made available at international comparable tariff. The Indian Ferro
Alloy Industry is more than four decades old, as produces Bulk and Noble Ferro Alloys.
Through this Industry is not as old as the steel industry, its capacity has increased
substantially from a humble start in the fifties, meeting the requirement of the steel industry in
the country. The growth of the steel industry has not picked up as expected, whereas the growth
of the Ferro Alloy Industry has stepped up, much more than the expected level. With the result,
the capacity available in the country is much more in the Ferro Alloy Industry.
It is a lot of potential to increase its exports in the near future. India has been bestowed
with adequate resources of all basic raw materials required for the production of Manganese,
Silicon and Chrome Alloys. Most of the Ferro Alloy Units have come up in the six States Andhra
Pradesh, Madhya Pradesh, Maharashtra, Orissa and West Bengal, mainly due to availability and
/or proximity of the raw materials. Ferro Alloys is a power intensive industry.
The total connected load of the industry has grown almost 8 to 9 times from 130 MVA in
the mid sixties to over 1000 MVA as on date. With the result, the installed capacity of the
industry is 1.5 million tones of Bulk and Noble Ferro Alloys. Capacity of Manganese Alloys is
around 700,000 tones. Ferro Silicon 175.000 tones and Ferro Molybdenum, Ferro Vanadium,
Ferro Tungsten, Silicon Magnesium, Ferro Titanium, Ferro Phosphorous, etc., around 20,000
tones.
The capacity increase of the Ferro industry in general, followed the course to meet the
planned target of steel industry in the country, and also to remain potential exporters of Ferro
Alloys in the international market to earn substantial foreign exchange for the country. However,
the performance of the industry started deteriorating from the mid-sixties, due to various reasons,
the foremost being, steep increase in the power tariff, fuel, oil, raw materials and transport
charges.
Exports started sliding from 1978 onwards. The eighties witnessed the maximum
erosion in the export performance of the Ferro Alloy Industry. However, after initiation of the
liberalization programmed, there has been a spurt in the export of Bulk Ferro Alloys. Like all
other Sectors, exports from this sector have also increased.
ORGANIZATION PROFILE
FERRO ALLOYS CORPORATION LIMITED
Incorporation : 1955
Director : R.K.Saraf
Asim Saraf
Syndicate Bank
FACOR has created a respectable place for a remote place called Garividi in the
industrial scenario after establishing its first Ferro Alloys plant in 1956. The FACOR township is
named after late Bahadurseth Shreeramji, the father of the founder of this great organization late
Sri. Durgaprasadji Sharaf (father of the present Chairman Sri.Umashankar Agarwal and V.C &
MD.Sri.R.K.Sharaf) as SHREERAMNAGAR.
FACOR was established as a public limited company by the families of SHARAF‟S and
MOR‟S in the History of Ferro Alloys, this has become the first of its kind and a major producer
of Ferro Manganese in the country. FACOR is not only a leader in the field of Ferro Alloys, but
also produces special steels of high standard. Its diversified activities extended beyond mining
and production of Ferro Alloys, to making the special steel and embrace the production and
manufacture of synthetic yarn and maize products. Low Ferro Chrome was imported to India
until 1966 to meet the demand of steel industry. Then, FACOR has step up a Ferro Chrome plant
with two furnaces having capacity of about 12000mt low/high Carbon Ferro Chrome to
substituted the imports of Ferro Chrome and meet the domestic demand along with Ferro
Manganese Production and saved lot of valuable foreign occupies the first position as producer
and exporter of Ferro Alloys, in the country. It is a pride for the organization for such credentials.
CREDENTIALS OF FACOR:
It is the country‟s first Ferro Alloys Plant.
It is the first plan to innovate and introduce Chromium Alloys and also the only single unit to
meet country‟s requirements.
It is the first unit to produce Magnesium Ferro Silicon.
It is the first to take up the erection and commissioning of the wholly indigenous furnace without
any foreign component or consultancy.
The first in the country‟s to export Ferro Manganese
It is the first among the various Ferro Alloys, producing unit to take up the manufacture of low
Carbon Ferro Alloys.
It is the first firm to produce a total of one million tones of Ferro Alloys by the end of
1981. FACOR develops Ferro Alloys as per customer specifications besides making sizeable
exports. FACOR was awarded certificate for export recognition by the Engineering Export
Promotion council, Western Region, and Bombay in Recognition of the outstanding performance
in the export of Ferro Manganese, Ferro Chrome, during the 1981-82.
TECHNICAL COLLABORATION:
The Ferro Manganese plant located at Shreeramnagar works division contains three
furnaces of each 7.5 KVA capacity to produce all varieties of Ferro Alloys, to meet the demand
of country‟s steel makers. The technical assistance was provided to establish these Furnaces by
M/s Elkin A/s Oslo, Norway.
The technical process is very advanced and innovative that visitors from Finland,
Norway, South Africa, Germany, Austria etc., visited the plant and learnt about the process. The
Ferro Chrome Division has also obtained the technical assistance in constructing two furnaces
from M/s Elkin, Oslo, Norway and M/s Electro Invest A/S Stockholm Sweden, subsidiary of M/s
Asia, Sweden. Technical knowhow for production of low carbon Ferro Chrome was also taken
from M/s Electro Invest, A/S Swede, for an initial period of about five years. FACOR crossed
another mile stone in Ferro Alloys, production by establishing a sub merged are smelting furnace
with 16 MVA capacities which is commissioned in 1981. Thus FACOR has its credit of six
furnaces in operation at Shreeramnagar, producing various Ferro Alloys of Manganese,
Chromium and Silicon for Steel manufacture.
As a part of FACOR‟S vertical integration it has set up a steel plant at Nagpur in 1978,
producing special steels like Carbon Steels low alloy steel for the free going industry and various
stainless steels of all grades under quality control standards to meet the demand of the country.
Thus FACOR is called as a „Steel Maker‟. In 1979, FACOR established its own Research and
Development wing the remarkable technology to produce charge chrome, the wonder alloy for
stainless steel manufactures, desired by steel makers all over the world.
Thus a charge chrome plant was set up at D.P.Nagar in Orissa in 1983. Using
sophisticated Japanese furnace and indigenous technology. FACOR accomplished the task of
converting low grade chrome ores and rejects into a quality charge chrome which are obtained
from which Bowla, Kathapal and Osthapal mines the beneficiation of which is done at DES
Bowla plant meant for beneficiation. The FACOR again stands first in India in the quality
production of charge chrome and whose total production is exported.
RECRUITMENT:
A thorough job analysis is under taken and then existing employee pool is referred
and matches to the required employee qualities with job specification, if it matches the employee
is assigned the job, if not a new candidate will be introduced into the organization.
CAPTIVE POWER PLANT:
One of the basic raw materials for FACOR is power, which constitutes shortage,
and heavy and continuous power cuts and low voltages, production hampered and there were
heavy losses due to non availability of finished goods at required time. So FACOR planned to
establish its own power generate plant during 1990-91 and the cost of generation is almost 50%
of cost of power supplied by APSEB power generated in the plant is meeting also 50% of the
FACOR requirement.
The basic raw material for power plant lubricants is produced from HPCL Vizag.
The FACOR provides employment nearly for 10000 employees and has been instrumental in
building industrial township of Shreeramnagar (A.P) Durgaprasad and Sri Durgapur (Orissa).
MANUFACTURING PROCESS:
The raw materials are smelted/heated to 1500 to 2000c and then alloys are trapped
from electric arc furnaces in molten states, at prescribed intervals, along with the bye-products
which are called slag. The melt is separated into metal and slag and collected in receptacles.
After cooling the metal and slag are handled separately.
FINISHED PRODUCTS:
PERSONNEL MANAGEMENT:
The Management has committed for the professional management in the process
of which the employees are considered very important and prime resources for the development
of the organization. Thus, management envisaged Employee‟s excellence Scheme (EERS).
ACTING ALLOWANCE:
1) FOR REGULAR WORKMEN:
A: Acting allowance will be paid to the workmen in the grade of 01,02 and 03
Grades in case they work on any day in a vacancy in a permanent sanctioned post of 1,2,3 and 4
grade respectively, at the rate of Rs.30/- per day provided and said vacancy is due to the absence
of the workmen on the higher grade but not of workmen who has been awarded the said higher
grade by virtue of length of services without getting the designation in the higher grade.
B: Any workmen who have been awarded the next higher grade due to length of
the services only will be eligible for acting allowances when on any day he works in the vacancy
of the higher unit he is promoted to the higher cadre by change of designations and when
permanent vacancy arises in the higher cadre.
GENERAL:
1) Acting allowance shall not be paid.
a) Unless there is a temporary vacancy of permanent sanctioned higher category.
b) If there is a permanent vacancy filled in the same category or the same grade.
2) Claims for the acting allowance from all departments must be routed through Personnel
department only.
3) Regarding making of the details and the workmen engaged in acting places. DFR (daily
foreman report) should be confirmed so that time office can follow acting allowance formula
accurately.
4) If any workmen to refuse to act in higher grade against the instructions of his supervisors with
a workmen will disqualify himself for the further promotions of higher cadre and the concerned
head and the departments are suggested to make a note of such refusal and intimate the personnel
department for nothing the personnel file of concerned employee.
CAR ALLOWANCE:
GRADE ALLOWANCE P.M
63 & above Rs.2500/-
SCOOTER ALLOWANCE:
For all workmen Rs.530/- & supervisors Rs.560/-.
MOPED ALLOWANCE:
For all workmen Rs.320/- & supervisors Rs.350/-.
CYCLE ALLOWANCE:
All permanent workmen and supervisory personnel are eligible for cycle allowance of
Rs.65/- pm unskilled workmen Rs.30/- pm.
UNIFORM ALLOWANCE:
Uniform allowance of Rs.450/- per annum is paid annually to certain categories of
employees and above.
TRAVELLING ALLOWANCE:
An employee is eligible for traveling allowance if journey is undertaken for following
purpose.
Tour (official)
For medical examination or treatment of an employee any member of his family of
Approved by company medical officer
To participate in sports, games and cultural programmers this authorized sponsor by the
company.
To receive national awards.
To attend training programmers, seminars, conferences.
To appear in courts as witness or assessor.
For any other journey undertaken as per the instructions of the management.
ENTITLEMENT AND MODE OF TRAVEL:
Entitlement and mode of travel in different pay ranges as mentioned below
SETTING ALLOWANCES:
A person on joining is entitled from reimbursement of railway fare from itself, wife,
dependent and children for travel from its place to shreeramnagar by the shortest route detailed
below.
EXTRA WAGES:
These are granted on the basing on the recommendation of the departmental heads in case
of employee works on one day off.
In case of employee works on extra hours beyond their duty.
In case of employees asked to work on paid holidays or optional holidays, one extra wage
is given in the paid holiday.
In case of employee calming extra wage of the extra work after the normal working
hours. Extra work of minimum three hours and above will be considered.
This system is for 5 grades. In case of assistant managers i.e., from grade 6 the extra
hours is for 8 hours continuously after normal working hours, the employees from grade
7 are eligible for extra wages.
In case of deputy managers and Sr. Deputy Manager‟s works on Sunday as paid Holiday
they are given compulsory d-off for that days.
Managers and above are not given extra recommendations for working d-off paid day.
CLASSIFICATION OF OVERTIME:
The over time is classified as details below:
1) For emergency breakdown due to which production activity etc., get hampered.
2) To fill up sanctioned complement due to leave vacancy absence where usual workman
could not be arranged.
3) For completion of normal work which could not be in regular time.
For completion of annual of such works which are not being regular in nature but have asked
to carry in regular time.
COMPENSATORY D-OFF:
SITUATION (1):
If a workman works on day off paid/optional holiday workman will be granted in CD in
he had worked for the while day on his day-off/paid-optional holidays.
Half CDO if he had worked only for half day off paid holidays.
Will be granted one CDO if he had worked for whole day on his day off/paid optional
holiday.
FOR WORKERS:
Section in charge will grant the CDO. If he had worked for whole day off/paid holiday or
optional holiday.
FOR SUPERVISORS:
Department Head will grant the CDO.
He will be granted one CDO if he had worked for whole day off/paid holiday or optional
holiday.
SECTION (4):
Sanction of CDO‟s at stretch.
SECTION (5):
Time limit with in3 months, CDO‟s must be availed.
HUMAN RESOURCE MANAGEMENT DEFINITION:
According to Flippo, human resource management is the planning, Organizing, directing
and controlling of the procurement, development, compensation, integration Maintenance and
reproduction of human resources to the individual, organizational and societal objectives are
accomplished.
To help the organization to attain its goals by providing well-trained and well-motivated
employees.
To utilize the human resources effectively in the achievement of organizational Goals.
To enhance the job satisfaction and self actualization of employees by Encouraging and
assisting every employee to realize his or her full potential.
To establish and maintain productive, self respecting and internally satisfying working
relationships among all the members of the organization.
To bring about maximum individual development of members of the organization by
providing opportunities for training and advancement.
To develop and maintain a quality of work life which make employment, in the
organization a desirable personal and social situation.
To maintain high employee morale and sound human relations by sustaining and
improving various conditions and facilities.
To manage change to the mutual advantage of individuals, groups, the organization and
the society.
PRINCIPLES OF HUMAN RESOURCE MANAGEMENT
b) PROFESSIONAL SIGNIFICANCE:
Developing people on continuous basis to meet the challenges of their jobs.
Maintaining the dignity of personnel at work place.
Providing proper physical and social environment at the work place to utilize the
capabilities of the people effectively.
Providing environment and incentives for developing and utilizing creativity.
c) SOCIAL SIGNIFICANCE:
Maintaining balance between jobs and job sealers in terms of job.
Requirements and job seekers abilities and attitudes.
Providing most productive employment from socio psychological satisfaction can be
derived.
Utilizing human capabilities effectively and matching rewards for the contribution made
by people.
d) NATIONAL SIGNIFICANCE:
SALARY
Fixed periodical payment to a person doing other than manual or mechanical work. It
refers to monthly rate of May, irrespective of the number of hours put by an employee.
WAGES:
Payment paid for manual and mechanical work is wages. Represents hourly rates of pay.
“wages means all remuneration, capable of being expressed in terms of money which would if
the terms of the contract employment express or implied ,were fulfilled ,be payable to a person
employed in respect of his employment or of work done in such employment”.
OBJECTIVES OF WAGE AND SALARY ADMINISTRATION:
The objective of wage and salary administration is numerous and sometimes conflict with
each other.
If the salary does not present compare favorably with that of other similar
organization. Employees quit the present one and join the other organization. The
organization must keep the wage levels at the competent level, in order to prevent quite.
Internal equity does mean payment of similar wages for similar jobs within
the organization. External equity implies payment of similar wages to similar jobs in comparable
organization.
JOB EVALUATION:
All the jobs will be analyzed and graded to establish the pattern of internal
relationships. It is the process of the determining relative worth of jobs. It includes suitable
job evaluation techniques classifying jobs into various categories and determining relative
value of jobs into various categories.
WAGE INCENTIVES:
Wage incentives are extra financial motivates. They are designed to stimulate human
effort by rewarding the persons, over and above the time rate remuneration for improvements in
the present or targeted results.
TYPES OF INCENTIVES PLANS:
HALSAY SYSTEMS:
Under this system a standard time is fixed for the completion of job if the worker
completes the job in less than the standard time the time actually spent on the job he is paid at
hourly rate plus a bonus for the time saved.
ROWAN SYSTEM:
Under this system, a standard time is allowed for job and a bonus is paid for time
saved. The bonus is percentage of the workers part at a hourly basis. The percentage being equal
to the proportion the proportion the time saved bears to standards is attained.
COST OF LIVING:
The cost of living is another important factor that influences the quantum of
salary the employees expect that their purchasing power be maintained at least at the
same level. If not increased by adjusting wages to changes in cost of living.
PRODUCTIVITY:
An interesting development in wage determination has been productively standard
this is based on the fact that productivity increase is also result of employees.
2) WAGE THEORIES :
JUST WAGE THEORY:
This was the first theory on wages advocated during medieval period. The essence
of this theory is that the worker should be paid on the level of maintain himself and his
family.
SUBSISTENCE THEORY:
According to Ricardo “the laborers are paid to enable them to subsist and
perpetuate the race without increase or diminution.
Karl Marx pointed out that “wage of labor is determined by a traditional standard
of living, which, in turn, is determined by the mode of production of the country
concerned.
According to J.S.Mill, the wages are determined on the basis of the relationship
between the amount of fund allocated for the purpose of wage payment and number of
workers in the country.
According to walker, the wages are determined on the basis of amount left after the
payment of profits and interest to land, entrepreneur and capital respectively out of the
production level.
According to J.B. Clark, the wages are determined on the basis of marginal
contributions of the workers to production. The employer stops employing further workers where
the contributions of most recently employed worker are equal to his wages.
BARGAINING THEORY OF WAGES:
According to this theory the wages and other terms of employment are determined on
the basis of the relative bargaining strength of the two parties, viz., the employer and the
employees. Webs stated that, “the haggling of the market which under a system of the
completion and individual bargaining determines the conditions of employment.
1) ANNUAL INCREMENTS:
Annual increments of all the employees will be effected twice in a year as a matter
convince as an annual increment will be awarded in January or in July.
2) SPECIAL INCREMENTS:
Increments are awarded for employees for extra ordinary performance on job per
direction on management.
FITMENT:
If a workman‟s basic pay short by Rs.3/- and fit in to particular slab in a particular scale,
such shortage will be covered by adding of amount to such shortage this benefit is extended only
during the subsistence of union agreement 1989/93. Additional increment for completion of
every 5 years of service.
BONUS:
The following are the bonus given to the employees and workers as well.
1. ANNUAL BONUS:
Annual bonus to all the employees is paid on accordance with the provision of payment
of bonus act 1965 and its amendments from time to time. The financial year of the company is
from 1st April to 31st March.
2. ATTENDANCE BONUS:
Attendance bonus is payable on the basic of attendance on quarterly basis to workmen
only. Quarterly means Jan-March, April-June, July-September, October-December of each
calendar year.
The payment details of attendance bonus are as follows:
1. Rs.330/- per quarter to workman who has put in full attendance in the quarter without
taking any casual leave of sickness leave.
2. Rs.240/- per quarter to a workmen who has availed maximum one day casual leave on
one day sickness leave and has full of attendance.
3. Rs.190/- per quarter to workmen who has availed maximum, two day casual leave or
sickness leave and has balance full attendance.
Attendance includes attendance leave, earned leave, weekly days off, paid holidays, special
leaves.
With effect of 01-06-2008 management has decided on union‟s request that special leave
and leave for company planning operation are to be considered attendance.
FAMILY PLANNING INCENTIVES:
Management will be paying family planning incentives to employees who are
undergoing family planning operation with a view to promote small family norms against
employees.
The following is the family planning programme implemented to employees.
Special leave for six days will also sanction to such of those employees who undergo
family planning operation. The special leave will also be granted to the employees even of
his/her spouse family planning operation.
COMMUNICATION:
In FACOR, they do not have any communication policy but the media of communication
are by phone, pens, notice board, circulars, notes etc.
A beautiful green belt has been developed in an around the industry addition to the
plants developed within the factors systematic plantation is done to preserve and to beautiful the
environment. By a separate horticulture wing. The developed plantation covered with an area of
about 100 acres. And also the facilities for beneficiation and agglomeration of chrome ores
have been set up. Pilots for sintering of Manganese chrome ore fines and mechanize frequenting
plant were set up.
BRIEF DESCRIPTION OF PROVIDENCE OF FACOR:
The employee provident Fund and miscellaneous provisions Act 1952, is a social Security
Act. It was mainly passed with a view to make some provisions for the future of the individual
workers after his retirement or for his dependents is case of early death. It is also framed to
inculcate the habit of saving among the workers for the further contingencies.
The main object of this act provide substantial security and timely monetary benefit and
assistance to individual employee and their families when there are problems in need some
assistance to meet their family and school obligations, and also to protect them, when they
become older, disabled or and in case of early death of the employee and also in meeting some
other contingencies.
VARIOUS SCHEMES OF THE ACT:
The employee provident fund & miscellaneous provisions Act 1952 has mainly 3 schemes
to provide a broad and real recruit to the employee and their families. They are as follows:
The Employees Provident Fund Scheme. 1952
The Employees Pension Scheme. 1995
The Employees Deposit Linked Insurance Scheme. 1973
REMITTANCE RATES:
The employee has to remit by 15th of every month of the contributions and other
charges at the following rates.
THE WAGE LIMIT (MAXIMUM) FOR ALL THE THREE SCHEMES IS 6,500:
SCHEME CONTRIBUTION
OF EMPLOYER
EMPLOYEE
Scheme
Scheme
(Subject to Min of 2)
The employer and the Employee have to furnish various firms to Provident Fund Office
for different purposed some of them are follows:
NOTE: The incentive payment made at interval exceeding 2 months also constitute as wage.
ANALYSIS AND INTERPRETATION OF THE STUDY
TABLE NO: 1
1 YES 75 75
2 NO 25 25
TOTAL 100 100
GRAPH: 1
100
90
80
70
60
50
40
NO.of respondents
30
percentage
20
10
0
YESNOTOTAL
ANALYSIS :
In table no.1, it shows that75percentage of the respondes are happy with their
job.25 percentage of respondents are not happy with their job . The maximum number of
the respondents are of an opinion that they are satisfied with their job. Minimum number
of respondents are of the opinion that they are not satisfied with their job.
2. Which factor is more important to have job satisfaction
2 35 35
Management
3 Welfare 10 10
benefits
4 Working 15 15
condition
TOTAL 100 100
GRAPH: 2
100
90
80
70
60
50
40
30 NO. OF RESPONDENTS
20 PERCENTAGE (%)
10
0
ANALYSIS :
In table no 2 , it show sthat 40 percentage of the employees say that their salary is
important for job satisfaction, 35 percentage of employees say that their management is
important for job satisfaction,10 percentage employees say that their welfare benefits is
important for job satisfaction ,15 percentage employees say that their working
conditions is important for job satisfaction. The maximum number of the respondents
are of the opinion that they are satisfied with their salary.
3. The salary gives good feeling & personal accomplishment
TABLE NO : 3
GRAPH: 3
100
90
80
70
60
50
40
30 NO. OF RESPONDENTS
20 PERCENTAGE (%)
10
0
Strongly Agree AgreePartly AgreeDisagree TOTAL
ANALYSIS :
In table no.3, 66percentage of the respondents strongly agree that they are satisfied
with their salary, 14 percentage of them agreed, 15 percentage of them partly agreed and 5% of
them totally disagree that their salary is not good. After survey it has been found that all the
employees who are working in the FACOR are satisfied with their salaries and it gives good
TABLE NO: 4
GRAPH: 4
100
90
80
70
60
50
40
30 NO. OF RESPONDENTS
20 PERCENTAGE (%)
10
0
Strongly Agree AgreePartly AgreeDisagreeTOTAL
ANALYSIS :
Majority of the respondents i.e., 53 percentage of them strongly agree that salary are
given on the basis of performance of the employees, 20 percentage of the respondents agree, 17
percentage of them partly agree and 10 percentage of them disagreed. The maximum number of
respondents are of the opinion that salary should be given on the basis of performance and only
TABLE NO. 5
GRAPH: 5
100
90
80
70
60
50
40
30 NO. OF RESPONDENTS
20 PERCENTAGE (%)
10
0
Strongly Agree AgreePartly AgreeDisagreeTOTAL
ANALYSIS :
Most of the respondents agreed that the compensation commensurate with responsibility
to all levels of employee i.e., 67percentage. But some of them strongly agree at 20 percentage,
partly agree at 6 percentage and disagreed at 7 percentage. The maximum number of respondents
are of the opinion that compensation commensurate should be done at all levels of employee. But
TABLE NO: 6
GRAPH: 6
100
90
80
70
60
50
40 NO.OF RESPONDENTS
30 PERCENTAGE (%)
20
10
0
YesNoTOTAL
ANALYSIS :
In table no.6, 100percentage of the respondents said that they are getting the salaries on
time every month. None of them i.e., 0 percentage responded negatively. 100 percentage
respondents stated that they are getting the salaries on time every month in company rules and
regulations.
7. Whether wages, salaries and increments are followed every
(d) Disagree
TABLE NO: 7
GRAPH: 7
100
90
80
70
60
50
40
30 NO. OF RESPONDENTS
20 PERCENTAGE (%)
10
0
Strongly Agree AgreePartly AgreeDisagreeTOTAL
ANALYSIS :
In table no.7, it has found that 76 percentage of the respondents strongly agree,
10 percentage of them agree, 10 percentage of them partly agree and 4 percentage of them
disagreed that the wages, salaries and increments are followed every year in the company. After
the survey it has found that maximum number of respondents agreed that wages, salaries and
increments are followed every year. Minimum number of them disagreed with it.
8. The Wages and Salary system for all employees in Facor is Satisfactory
TABLE NO : 8
GRAPH: 8
100
90
80
70
60
50
40
30 NO. OF RESPONDENTS
20 PERCENTAGE (%)
10
0
Strongly Agree AgreePartly AgreeDisagreeTOTAL
ANALYSIS :
In table no. 9, 53 percentage of the respondents strongly agree that they are satisfied with
wages and salary system, 22 percentage of them agree, 18 percentage of them partly agree and 7
percentage of them disagreed. Maximum number of the respondents opinion that the wages and
salary system in FACOR is Satisfactory. Minimum number of respondents opinion is that it is
not Satisfactory.
9. Wage & Salary structure implemented according to qualification &
experience (a)Strongly agree (b) Agree (c) Partly agree (d) Disagree
TABLE: 9
GRAPH: 9
100
90
80
70
60
50
40
30 NO. OF RESPONDENTS
20 PERCENTAGE (%)
10
0
Strongly Agree AgreePartly AgreeDisagreeTOTAL
ANALYSIS :
In table no.9, after the survey it has found that 35 percentage of the
respondents strongly agree, 44 percentage them agree, 12 percentage them partly agree
and 9 percentage them disagreed that wages & salary structure implemented according to
qualification and experience.Maximum number of respondents satisfied that wage and
salary structure implemented according to qualification and experience. Minimum
number of respondents did not satisfied with this.
10. Bonus & Incentives are they relative to the employees
(d) Disagree
TABLE NO: 10
GRAPH: 10
100
90
80
70
60
50
40
30 NO. OF RESPONDENTS
20 PERCENTAGE (%)
10
0
Strongly Agree AgreePartly AgreeDisagreeTOTAL
ANALYSIS:
TABLE NO: 12
GRAPH: 11
100
90
80
70
60
50
40 NO.OF RESPONDENTS
30 PERCENTAGE (%)
20
10
0
YesNoTOTAL
ANALYSIS :
In table no. 11, 100 percentage of the respondents said that they are getting their
pay as per the laws. None of them i.e., 0 percentage responded negatively. 100 percentage
respondents stated that they are getting wages according to law. Permanent employees are
getting more than the minimum wages which includes their incentives and bonus on the basis of
their experience. Contract labour are getting wages according to minimum wages act.
12. Are employees paid for overtime if their work over and above their contracted
hours
TABLE NO : 12
GRAPH: 12
100
90
80
70
60
50
40 NO.OF RESPONDENTS
30 PERCENTAGE (%)
20
10
0
YesNoTOTAL
ANALYSIS :
In table no. 12, it has found that 100 percentage of the respondents agree that the
employees are paid for overtime and above their contracted hours. 0 percentage of them
disagreed for that. The standard working hours in a week is 48hrs. As an organization
FACOR avoids persistent working of extra hours. Employees are paid overtime with the
monthly wages for any extra hours worked. 100 percentage employees responded to the
favourably which shows that employees do get monitory benefits as per law when they
put in extra hours at work due to business requirements.
13. How frequently your wages and salary structure is modified
(a) Yearly (b) Half yearly (c) Quarterly (d) More than 1 year
TABLE NO : 13
GRAPH: 13
100
90
80
70
60
50
40
30 NO. OF RESPONDENTS
20 PERCENTAGE (%)
10
0
ANALYSIS :
In table no. 13, 55percentage of the respondents say that wages and salary
structure is modified every year. 20percentage of the respondents say that wages and
salary structure is modified for half yearly. 15percentage of the respondents say that
wages and salary structure is modified for quaterly. 10percentage of the respondents say
that wages and salary structure is modified for more than one year.
14. Dose the company change DA as per the changes taking place in the environment
(a) Yes (b) No
TABLE NO : 14
GRAPH: 14
100
90
80
70
60
50
40 NO.OF RESPONDENTS
30 PERCENTAGE (%)
20
10
0
YesNoTOTAL
ANALYSIS :
In table no. 14, it is clear that only 75% answered favourably where as 25%
felt that they were paid less , when they are asked about DA by the management.
Maximum number of the respondents opinion is that they are getting DA according to
law. Minimum of them disagreed with this.
TABLE NO : 15
GRAPH: 15
100
90
80
70
60
50
40
NO. OF RESPONDENTS
30
PERCENTAGE (%)
20
10
0
ANALYSIS :
In table no. 15, it is clear that only 80% of employers are saying that they are very happy
with the wage/salary that was provided by the FACCOR when comparing with other industries
and 20% of employers are saying that it is good when comparing to other industry.
16. Suggestions
a) you want better salary
b) More monitory benefits are expected
SUMMARY
An organization has to balance fairly financial and non financial rewards extrinsic
awards. Effective awards and intrinsic awards. Effective reward system requires not only that the
absolute level of compensation paid by an organization compares favorably but also enquires
that it satisfies the principles of internal equity and equity with the job content. The employees
gets pay satisfaction of the perceived salary is equal to actual salary received and actual salary is
less than perceived salary the employee is dissatisfied with the salary. The remuneration paid by
the employer for the services of hourly, daily, weekly and fortnightly employees.
The remuneration paid to the clerical and managerial personnel employed on monthly
or annual basis. It is the amount of remuneration for unit of time excluding incentives, overtime
pay etc. Is the amount of wage fixed for the unit of time fixed on the basis of job evaluation
standards. Is an assembly of all properly evaluated standard wage rate set from in the sequence
according to the job and size of the rate. Refer to compensation given to the employees over and
above wage rates which often is not directly related to output performance of time worked refer
to special rates to certain period such as over time, Sundays and holidays.
The objective of wage and salary administration is numerous and sometimes conflict
with each other. Candidates decide upon their career in a particular organization mostly on the
basis of the amount of remuneration the organization mostly on the basis of the amount of
remuneration the organization offers qualified and competent people join the best paid
organization. The organization should aim at payment of salaries at that level where they can
attract competent and qualified people. If the salary does not present compare favorably with that
of other similar organization. Employees quit the present one and join the other organization.
The organization must keep the wage levels at the competent level, in order to prevent
quite. Internal equity does mean payment of similar wages for similar jobs within the
organization. External equity implies payment of similar wages to similar jobs in comparable
organization.
To protect in public as progressive employers and to comply with the wage
legislations. To pay according to comply with wage legislations. To pay according to the content
land difficulty of the jobs and in tune with the effort and merit of the employees. To facilitate
pay role administration of budgeting and wage and salary control. To simply collective
bargaining procedure and negotiations. To promote organization feasibility.
Over all salary range for all the jobs in an organization is arranged. Each job grade will
be assigned salary range. These individual salary ranges will be filled into an overall range
Overall salary grades of the organization may be adjusted on the data information collected about
the salary levels of similar organizations. Individual salary may also be adjusted based on the
performance of the individual employees. Indian Ferro Alloy Industry is not as old as the Steel
Industry. From a humble start in the fifties the capacity has grown enormously with enough
potential to increase exports in future. However, the high power tariff in India is the stumbling
block. Though the industry started getting power from National Power Corporation at NTPC
tariff, it is still higher than the power tariff available in countries like Norway, China, and Russia,
Kazakhstan etc., which are a major producers and exporters of Ferro alloy too.
What is more, the import duty on Ferro alloy has also been reduced drastically to 25
per cent in the post – liberalized era. Further, steel exporters are eligible to import their raw
material including Ferro Alloys free of duty against advance license. With plenty of raw
materials like ores and reluctant available in the country, what the industry needs is a level
playing field by power being made available at international comparable tariff. The Indian Ferro
Alloy Industry is more than four decades old, as produces Bulk and Noble Ferro Alloys.
Through this Industry is not as old as the steel industry, its capacity has increased
substantially from a humble start in the fifties, meeting the requirement of the steel industry in
the country. The growth of the steel industry has not picked up as expected, whereas the growth
of the Ferro Alloy Industry has stepped up, much more than the expected level. With the result,
the capacity available in the country is much more in the Ferro Alloy Industry.
It is a lot of potential to increase its exports in the near future. India has been bestowed
with adequate resources of all basic raw materials required for the production of Manganese,
Silicon and Chrome Alloys. Most of the Ferro Alloy Units have come up in the six States Andhra
Pradesh, Madhya Pradesh, Maharashtra, Orissa and West Bengal, mainly due to availability and
or proximity of the raw materials. Ferro Alloys is a power intensive industry.
The total connected load of the industry has grown almost 8 to 9 times from 130 MVA
in the mid sixties to over 1000 MVA as on date. With the result, the installed capacity of the
industry is 1.5 million tones of Bulk and Noble Ferro Alloys. Capacity of Manganese Alloys is
around 700,000 tones. Ferro Silicon 175.000 tones and Ferro Molybdenum, Ferro Vanadium,
Ferro Tungsten, Silicon Magnesium, Ferro Titanium, Ferro Phosphorous, etc., around 20,000
tones. FACOR was established as a public limited company by the families of SHARAF‟S and
MOR‟S.
In the History of Ferro Alloys, this has become the first of its kind and a major
producer of Ferro Manganese in the country. FACOR is not only a leader in the field of Ferro
Alloys, but also produces special steels of high standard. Its diversified activities extended
beyond mining and production of Ferro Alloys, to making the special steel and embrace the
production and manufacture of synthetic yarn and maize products. Low Ferro Chrome was
imported to India until 1966 to meet the demand of steel industry. Then, FACOR has step up a
Ferro Chrome plant with two furnaces having capacity of about 12000mt low/high Carbon Ferro
Chrome to substituted the imports of Ferro Chrome and meet the domestic demand along with
Ferro Manganese Production and saved lot of valuable foreign occupies the first position as
producer and exporter of Ferro Alloys, in the country. It is a pride for the organization for such
credentials.
It is the country‟s first Ferro Alloys Plant. It is the first plan to innovate and introduce
Chromium Alloys and also the only single unit to meet country‟s requirements. It is the first unit
to produce Magnesium Ferro Silicon.It is the first to take up the erection and commissioning of
the wholly indigenous furnace without any foreign component or consultancy. The first in the
country‟s to export Ferro Manganese. It is the first among the various Ferro Alloys, producing
unit to take up the manufacture of low Carbon Ferro A
FACOR has built up a good track record and developed into India‟s largest
manufacturer and exporter of Ferro Alloys, and maintained this position over the time. Personnel
Department. The personnel department plays a vital role in the organizational climate of any
organization. The personnel department of FACOR has also drawn clear guidelines for personnel
policies and procedures, their by setting up an atmosphere of mutual confidence and respect.
Thus it helps to develop harmonious relations between management and the work force.
A thorough job analysis is under taken and then existing employee pool is referred and
matches to the required employee qualities with job specification, if it matches the employee is
assigned the job, if not a new candidate will be introduced into the organization. One of the basic
raw materials for FACOR is power, which constitutes shortage, and heavy and continuous power
cuts and low voltages, production hampered and there were heavy losses due to non availability
of finished goods at required time. So FACOR planned to establish its own power generate plant
during 1990-91 and the cost of generation is almost 50% of cost of power supplied by APSEB
power generated in the plant is meeting also 50% of the FACOR requirement.
The basic raw material for power plant lubricants is produced from HPCL Vizag.
The FACOR provides employment nearly for 10000 employees and has been instrumental in
building industrial township of Shreeramnagar (A.P) Durgaprasad and Sri Durgapur (Orissa).
The raw materials are smelted/heated to 1500 to 2000c and then alloys are trapped from electric
arc furnaces in molten states, at prescribed intervals, along with the bye-products which are
called slag. The melt is separated into metal and slag and collected in receptacles. After cooling
the metal and slag are handled separately.
The organization must keep the wage levels at the competent level, in order to
prevent quite. Internal equity does mean payment of similar wages for similar jobs with in the
organization. External equity implies payment of similar wages to similar jobs in comparable
organization. To protect in public as progressive employers and to comply with the wage
legislations. To pay according to comply with wage legislations. To pay according to the content
land difficulty of the jobs and in tune with the effort and merit of the employees. To facilitate
pay role administration of budgeting and wage and salary control. To simply collective
bargaining procedure and negotiations. To promote organization feasibility.
Over all salary range for all the jobs in an organization is arranged. Each job grade will
be assigned salary range. These individual salary ranges will be filled into an overall range
Overall salary grades of the organization may be adjusted on the data information collected about
the salary levels of similar organizations. Individual salary may also be adjusted based on the
performance of the individual employees.
The raw materials are smelted/heated to 1500 to 2000c and then alloys are trapped
from electric arc furnaces in molten states, at prescribed intervals, along with the bye-products
which are called slag. The melt is separated into metal and slag and collected in receptacles.
After cooling the metal and slag are handled separately.
The adoption of quality management system should be a strategic decision by the
top management of an organization. The design and implementation of an organization‟s quality
management system is influenced by varying needs, particular objectives, the products provided,
the processes employed and the size and structure of the organization. This international standard
is based on eight quality international standard to imply uniformity in the structure of quality
management systems of uniformity of documentation.To identify and meet the needs and
expectation of its customers and the interested parties (people in the organization suppliers,
owners, society) to achieve competitive advantage , and to do this effective and efficient manner
and to achieve, maintain, and improve overall organizational performance and capabilities.
The application of quality management principles not only provades direct benefits
but also makes an important contribution to managing costs and risks. Benefit, cost and risk
management considerations are important for the organization, its customers and other interest
parties.
FACOR has performed well during last four decades and its turnover is about Rs.3,
000/- million and is further seeking to diversify into other fields namely metallurgical, petro
chemicals, chemical food based products etc. FACOR is well known nationally and
internationally for 620 million Rupees.
As a pioneer, the company has always been eager to utilize the opportunities for
growth and diversification in the related areas and for that reason FACOR has acquired/set up a
mini-steel plant at Nagapur (Maharashtra) to produce quality steel. A charge – chrome plant
located at D.P. Nagpur, randia, dist. Balasore, costing around 45 crores. This is a 100% Export
Oriented unit with a production capacity of 50,000 tones per annum.
The employee provident Fund and miscellaneous provisions Act 1952, is a social
Security Act. It was mainly passed with a view to make some provisions for the future of the
individual workers after his retirement or for his dependents is case of early death. It is also
framed to inculcate the habit of saving among the workers for the further contingencies.
The main object of this act provide substantial security and timely monetary benefit and
assistance to individual employee and their families when there are problems in need some
assistance to meet their family and school obligations, and also to protect them, when they
become older, disabled or and in case of early death of the employee and also in meeting some
other contingencies.
The capacity increase of the Ferro industry in general, followed the course to meet the
planned target of steel industry in the country, and also to remain potential exporters of Ferro
Alloys in the international market to earn substantial foreign exchange for the country. However,
the performance of the industry started deteriorating from the mid-sixties, due to various reasons,
the foremost being, steep increase in the power tariff, fuel, oil, raw materials and transport
charges.
Exports started sliding from 1978 onwards. The eighties witnessed the maximum
erosion in the export performance of the Ferro Alloy Industry. However, after initiation of the
liberalization programmed, there has been a spurt in the export of Bulk Ferro Alloys. Like all
other Sectors, exports from this sector have also increased.
The Industrial development of any country depends upon the strengths of the basic
industries like Iron and Steel, Cement, Power Generation, Electric and Electronic etc., steel is the
life blood of any industry and also prime requirement for human development. Thus the Ferro
Alloys are the basic raw materials for steel manufacture with various properties for different
application. FACOR Shreeramnagar, works division is fulfilling this demand for steel industry in
the country, thus has unmatched reputation of this-quality production not only in the domestic
market but also in the international market.To help the organization to attain its goals by
providing well-trained and well-motivated employees. To utilize the human resources effectively
in the achievement of organizational Goals. To enhance the job satisfaction and self actualization
of employees by Encouraging and assisting every employee to realize his or her full potential.
To establish and maintain productive, self respecting and internally satisfying working
relationships among all the members of the organization. To bring about maximum individual
development of members of the organization by providing opportunities for training and
advancement. To develop and maintain a quality of work life which make employment, in the
organization a desirable personal and social situation. To maintain high employee morale and
sound human relations by sustaining and improving various conditions and facilities.To manage
change to the mutual advantage of individuals, groups, the organization and the society. Principle
stresses on the development of every person working in an organization. By this employees will
be able to develop themselves to the maximum extent of their capabilities. Their abilities,
productivity and efficiency can be used for achieving the objectives of the organization.
FINDINGS
SUGGESTIONS
The Wages and Salary policy adopted by management is not up to standard level.
The management is paying acting allowance if a person acts in place of another and
The management may announce efficiently based increments to attract deficient, skilled,
committed and personal. So that the experienced skilled employee do not go to other
QUESTIONNAIRE
DESIGNATION:
a) Yes b) No
8) The Wages and salary system for all Employees in FACOR is satisfactory.
10) Bonus & Incentives are they relative to the employee‟s contribution.
12) Are Employee‟s paid for overtime if their work overtime above their contracted hours?
a) Yes b) No
14) Dose the company change DA as per the changes taking place in the environment
a) Yes b) No
BIBLIOGRAPHY
WEB SITES:
www.management.about.com
www.humanresource.about.com