Description
COMPENSATION & BENEFITS
HUMAN RESOURCE MANAGEMENT INTRODUCTION:
Human Resource Management is primarily concern with the people‘s management. It is a crucial sub system in the process of management. The success or failure of the organization not only depends on the material, machines and equipment but also on the personal that put in their best efforts for san efficient performance of the job. Human resource management is the management of employee‘s skills, knowledge, talents, attitudes, creative abilities etc.
DEFENITION:
Personnel management effectively describes the process of planning and deducting the application development and utilization of human resources in the employment. ?DALEYODER? Personnel management is the process of attractive, holding, motivating people involving all managers, line and staff. ?DUNN & STEPHEN?. Earlier HRM was called by different names like Personnel Management, Personnel Administration, Labour Administration, Human Capital Management and Human Asset Management. In the present scenario, HRM is used as a synonym to Personnel Management and a Personnel department is called Human Resource Department.
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OBJECTIVES OF THE STUDY:
? ? ? ? ? ? To study the present profile of Reliance Money Ltd and the organizational structure etc. To observe the level of satisfaction of the employees relating to the compensation benefits. To identify the extent of compensation in Reliance Money Ltd employees and its impact on the job performance of the employees. To evaluate the working environment in Reliance Money Ltd To examine the satisfaction regarding the salary and other benefits of its employees. To suggest suitable measures to improve the overall management of the compensation.
SCOPE OF THE STUDY: In the survey an attempt has been made analyze compensation management of employees in SOMA ENTERPRISES Ltd. Compensation management in SOMA ENTERPRISES Ltd has been analyzed on the basis of the following factors. Salary and Monitory benefits Job security Promotion policy Working environment Nature of job Fringe and welfare benefits Non taxable benefits
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METHODOLOGY:
The present study entitled ?COMPENSATION & BENEFITS? at Reliance Money Ltd was aimed at finding the management of compensation among the employees. The questionnaire was administrated in random sample basis to the employees and was collected within a week.
SOURCE OF DATA:
The data regarding the policies procedures used in order to know compensation management provided to the employees have been collected from the HR Department. Apart from this, data was collected from primary and secondary sources. Primary data has been collected through a self administered questionnaire designed to assess the employee‘s perception of the current HR practices and systems. The questionnaire consists of 16 questions and the sample size is 35.These questions are designed in such a way, that they can be calculated on a graph. Secondary data means data that are already available that is their \refer to data which have already been collected and analyzed by someone else. Sources are books, magazines, newspapers, text books and websites.
LIMITATIONS:
This study is restricted to the Reliance Money Ltd, Hyderabad. Here the findings and the conclusions drawn therein cannot be expected to be same elsewhere.
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COMPENSATION & BENEFITS Introduction:
Compensation refers to all forms of financial returns and tangible services and benefits employee receives as a part of an employment relationship. Compensation may be defined as money received in return to the performance of work, plus the many kinds of benefits and services that organizations provide to their employees. Money is included under direct compensation (popularly known as wages that is gross pay); a ?wage‘ (or pay) is the remuneration paid for the service of labour in production, periodically as salary to an employee or a worker. Wage usually refers to the hourly rate paid to such groups as in the production process (blue-collar workers); on the other hand, salary normally refers to the weekly or monthly rates paid to clerical, administrative and professional employees (white-collar workers. The wage level represents the money an average worker makes in a geographical area or in his organization. It is only an average, specific markets or firms and individual wages can vary widely from the average. The term ?wage structure‘ is used to describe wage or salary relationship within a particular group. The grouping can be according to occupation, or organization, such as wage structure for craftsman (carpenters, mechanics, brick layers etc.) Wages and salaries comes under direct compensation or core compensation while benefits come under indirect compensation, and may consist of life, accident and health insurance, the employers contribution to retirements, pay for vacation or illness and employer‘s requirements for employee welfare as social security. These benefits are usually known as ?fringe benefits‘ – as they are offered by the employer to the employee
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as ?fringe‘. Different terms have been used for these benefits such as ?fringe benefits‘ ?welfare expenses?, ?wage supplements?, ?sub wage? or social changes?, ?perquisites? other than wages or ?transpecuniary incentives?. The other terms used are extra wages, ?hidden payroll?, ?non-wage labour costs? or ?selected supplementary compensation practices?. The glossary of current industrial relation and wage terms has defined fringe benefits as ?supplement to wage received by workers at a cost to employers. The term encompasses a number of benefits paid vacation, pension, health and insurance plans, etc. –which usually add up to a practice that may constitute a dubious benefit for workers?. Management is concerned with attracting and keeping employees whose performance meets at least minimum levels of acceptability; and at keeping ?absenteeism‘ and ?turnover‘ to tolerable levels. The provision of ?benefits‘ and ?services‘ can be and are important in maintain the employees and reducing or keeping turnover and absenteeism low. It is important to note that ?financial‘ incentives are paid to specific employees whose work is above standard. ?Employee benefits and service‘ on the other hand, are available to all employees based on their membership in the organization and not to stimulate them to great effort and higher performance. They foster loyalty and act as a security base for the workers. With the immense competition of attracting and retaining talented human resource, compensation package is the only motivation factor available with the organization be it Indian foreign organizations or foreign-owned multinationals. With the high attrition rate organizations are increasing their salary packages to attract and retain.
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To develop a competitive advantage in a global economy, the compensation program of the organization must support totally the strategic plans and actions of the organization. The individuals occupying the execute position of the organization are responsible for establishing and developing the strategy of the organization. The overall strategic plans inform all of the organization‘s members of the direction wishes to take. Management and organizational specialists review these strategic plans and take the actions necessary within their domain to ensure accomplishment of the plans. For the human resources / compensation specialist, the assignment to ensure accomplishment of organizational strategy begins with determining The work that must be performed by some work units or individuals. The kinds and levels of knowledge and skill required. The quality of people needed to promote organizational success, and The rewards the organization can offer to their member that promotes a work culture that ensures accomplishment of organizational strategy. An organization is formed to accomplish a specific mission. To do this, it must attract and hire people who have certain knowledge, skills, aptitudes, and attitudes. To attract and retain such people, the organization provides rewards. An organization designs and implements a reward system to focus worker attention on the specific behaviors the range from simply arriving at work at the scheduled time to meeting specified performance standards and to be useful in stimulating desired behaviors, they must meet the demands of the employees whose behaviors they are intended to influence.
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Evolution of Compensation
Today‘s compensation systems have come from a long way. With the changing organizational structures workers‘ need and compensation systems have also been changing. From the bureaucratic organizations to the participative organizations, employees have started asking for their rights and appropriate compensations, the higher education standards and higher skills required for the jobs have made the organizations provide competitive compensations to their employees. Compensation strategy is derived from the business strategy. The business goals and objectives are aligned with the HR strategies. Then the compensation committee or the concerned authority formulates the compensation strategy. It depends on both internal and external factors as well as the life cycle of an organization.
Traditional compensation system Modern compensati on systems
Change in compensation systems
Evolution of strategic compensation
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Traditional Compensation System
In the traditional organizational structures, employees were expected to work hard and obey the bosses‘ orders. In return they were provided with job security, salary increments and promotions annually. The salary was determined on the basis of the job work and the years of experience the employee is holding. Some of the organizations provided for retirement benefits such as, pension plans, for the employees. It was assumed that humans work for money, there was no space for other psychological and social needs of workers.
Change in Compensation System
With the behavioral science theories and evolution of labour and trade unions, employees started asking for their rights. Maslow brought in the need hierarchy for the rights of the employees. He stated that employees do not work only for money but there are other needs too which they want to satisfy from their job, i.e. social needs, psychological needs, safety needs, self-actualization, etc. Now the employees were being treated as human resource. Their performance was being measured and appraisal based on the organizational and individual performance. Competition among employee existed. Employees were expected to work hard to have the job security. The compensation system was designed on the basis of job work and related proficiency of the employee.
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Self Actualizati on
Self Actualization
Esteem Social Needs Safety Needs Psychological Needs
Today’s Modern Compensation Systems
Today the compensation systems are designed aligned to the business goals and strategies. The employees are expected to work and take their own decisions. Authority is being delegated. Employees feel secured and valued in the organization. Organizations offer monetary and non-monetary benefits to attract and retain the best talents in the competitive environment. Some of the benefits are special allowances like mobile, company‘s vehicle; House rent allowances; Statutory leaves, etc.
Types of Compensation
Intrinsic Compensation: It represents psychological mindset of the employee resulting from job-performance. Extrinsic Compensation: It includes both the monetary and non-monetary rewards. Monetary Compensation is to reward the employee according to his or her performance in the job. Monetary Compensation represents core compensation. Ex: Base pay, Cost of living adjustments, Seniority, Merit pay.
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Non-monetary rewards include medical insurance, variations which are considered as employee benefits or fringe compensation.
3Base pay: This is the pay which the employee receives for performing their jobs. This
could be hourly pay or wage or salary pay.
Cost of Living Adjustments (COLAs): COLAs are the base pay increased that
are done periodically as per the changes in prices as indexed by the consumer price index (CPI).
Seniority Pay: Seniority pay is a reward given to the employees according to the
length of their service in organization. It is given to the employees because they refine existing skills which enables them to work more productively.
Merit Pay: Merit pay is given to those employees who show a difference in their job
performances. Employees earn a permanent increase in their base pay. It therefore helps in retaining the skilled employees in the organization.
Incentive Pay: It is called compensation or an extra amount other than the salary
rewarded to an employee for he has attained a standard based on goals of the organization.
Components of compensation System
Compensation systems are designed keeping in minds the strategic goals and business objectives. Compensation system is designed on the basis of certain factors after analyzing the job work and responsibilities. Components of a compensation system are as follow:
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Job Analysis
Pay Structures
Salary Surveys
Types of Compensation
Compensation provided to employees can direct in the form of monetary benefits and / or indirect in the form of non-monetary benefits known as perks, time off, etc. Compensation does not include only salary but it is the sum total of all rewards and allowances provided to the employees in return for their services. If the compensation offered is effectively managed, it continuous to high organizational productivity. Direct Compensation Indirect Compensation
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Need of Compensation Management
A good compensation package is important to motivate the employees to increase the organizational productivity. Unless compensation is provided no one will come ad work for the organization. Thus, compensation helps in running an organization effectively and accomplishing its goals. Salary is just a part of the compensation system, the employees have other psychological and self-actualization needs to fulfill. Thus, compensation serves the purpose. The most competitive compensation will help the organization to attract and sustain the best talent. The compensation package should be as per industry standards
Motivation
Compensation Package
Employee Retention
Need Satisfaction
Strategic Compensation
Strategic compensation is determining and providing the compensation packages to the employees that are aligned with the business goals and objectives. In today‘s competitive scenario organizations have to take special measures regarding compensation of the employees so that the organizations retain the valuable employees. The
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compensation systems have changed from traditional ones to strategic compensation systems.
Direct Compensation
Direct compensation refers to monetary benefits offered and provided to employees in return of the services they provide to the organization. The monetary benefits include basic salary, house rent allowance, conveyance, leave travel allowance, medical reimbursements, special allowances, bonus, pf / gratuity, etc. They are given at a regular interval at a definite time.
Basic Salary
Salary is the amount received by the employee in lieu of the work done by him/her for a certain period say a day, a week, a month, etc. It is the money an employee receives from his/her employer by rendering his/her services.
House Rent Allowance
Organizations either provide accommodations to its employees who are from different state or country or they provide house rent allowances to its employees. This is done to provide them social security and motivate them to work.
Conveyance
Organizations provide for cab facilities to their employees. Few organizations also provide vehicles ad petrol allowances to their employees to motivate them.
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Medical Reimburse ments Basic Salary Special Allowances
House Rent Allowances
Direct Compensati on Bonus
Conveyance
Leave Travel Allowances
Leave Travel Allowance
These allowances are provided to retain the best talent in the organization. The employees are given allowances to visit any place they wish with their families. The allowances are scaled as per the position of employee in the organization
Medical Reimbursement
Organizations also look after the health conditions of their employees. The employees are provided with medic-claims for them and their family members. These medic-claims include health-insurance and treatment bills reimbursements.
Bonus
Bonus is paid to the employees during festive seasons to motivate them and provide them the social security. The bonus amount usually amount to one month‘s salary of the employee.
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Special Allowance
Special allowance such as overtime, mobile allowances, meals, commissions, travel expenses, reduced interest loans; insurance, club membership, etc. are provided to employees to provide them social and motivate them which improve the organizational productivity.
INDIRECT COMPENSATION:
Indirect compensation refers to non-monetary benefits offered and provided to employees in lieu of the services provided b them to the organization. They include Leave policy, Overtime policy, Car policy, Hospitalization, Insurance, Leave travel assistance limits, Retirement benefits, and Holiday homes.
Leave Policy
It is the right of employee to get adequate number of leave while working with the organization. The organizations provide for paid leaves such as, casual leaves, medical leaves (sick leave), and maternity leaves, statutory pay, etc.
Overtime policy
Employee should be provided with the adequate allowances and facilities during their overtime, if they happened to do so, such as transport facilities, overtime pay, etc.
Hospitalization
The employees should be provided allowances to get their regular check-ups, say at an interval of one year. Even their dependents should be eligible for the medic-claims that provide them emotional and social security.
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Overtime policy Hospitalizatio n
Leave Policy
Flexible Timings
Indirect Compensation
Insurance
Holiday Homes Retirement Benefits
Leave Travel
Insurance
Organizations also provide for accidental insurance and life insurance for employees. This gives them the emotional security and they feel themselves valued in the organization.
Leave Travel
The employees are provided with leaves and travel allowances to go for holiday with their families. Some organizations arrange for a tour for the employee of the organization. This is usually done to make the employee stress free.
Retirement Benefits
Organizations provide for pension plans and other benefits for their employees which benefits them after they retire from the organization at the prescribed age.
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Holiday Homes
Organizations provide for holiday homes and guest house for their employees at different locations. These holiday homes are usually located in hill station and other most wanted holiday spots. The organizations make sure that the employees do not face any kind of difficulties during their stay in the guest house.
Flexible Timings
Organizations provide for flexible timings to the employees who cannot come to work during normal shifts due to their personal problems and valid reactions.
COMPENSATION AND ORGANIZATION STRATEGY
Compensation and organization should support the strategic plans and actions of the organization to develop its competitive advantage in the global economy. Strategic refers to future course of action. Strategic plans are those which help the individuals to know what the organization wishes to achieve. Human Resource Compensation specialist ensures the accomplishment of the organizational strategy by determining the following factors: ? ? ? The kind and levels of skills required by the individuals. Efficiency of the work performed by the individuals. The amount of quality that is required by the organization for its development through the individuals. ? Finally compensation pay program that the organization has to provide the individuals, to promote a work culture that ensures the accomplishment of the organizational strategy employed.
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COMPENSATION PAY
The role of HR manager in designing the compensation pay is based on employee income, life-style and social class. It is necessary to have an understanding of the lifestyle and standard of living through the pay, income, earnings which the individual gets to know the importance of pay provided by the employer. A survey conducted in 1989 noted that stress decreases with age and income. The study found out that ?the lower the income is, the higher the stress level is?. Pay structures should be well designed to retain valued employees. Human resource professional group jobs into pay grades based on similar compensable factors and value. No two persons having same credentials can do the jobs equally well. Therefore companies recognize these differences and pay them according to their knowledge, job performance, etc. Compensation professionals should decide what compensation should be paid for which pay structure.
Compensation Professional Goals
They design and promote effective compensation systems which in turn help the organization to retain the highly skilled employees in the organizations They take up help of the compensation surveys and strategic analysis for this purpose. Strategic analysis helps the business professionals to know and understand their position in the market based on external and internal factors. Compensation surveys are very helpful to the condensation professionals because they provide a realistic views of the competitor‘s helpful to the compensation professional because they provide realistic views of the competitor‘s pay practices and guide them to design a compensation system that best suits the organization.
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Steps in constructing a pay structure
The compensation structure as to fulfill the objective of the organizations, the HRM department and the employees of the organization. A sound compensation structure considers job analysis and job evaluation to determine wage structure. Compensation specialist develops pay structures based on the following steps: Deciding on the number of pay structures Determining a market pay line Developing pay grades Evaluating the results.
EMPLOYEE BENEFITS MANAGEMENT Compensation of Legally Required Benefits of Employee
The various laws that are needed to be followed to provide legally required benefits to the individuals are: Social security act, 1935 Workers compensation laws Family and medical leave act of 1993
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Social securityact-1935
Social security act was introduced in the year 1937 to protect the families and provide them with basic securities in case of unemployment. This Act also looks after the retirement income, health and welfare of the employees and their families. It includes. Unemployment Insurance Old age survivor and Disability Income (OASDI) Medicare
Workers compensation laws
It is given to employees in case of work place injuries and illness. It covers injuries and diseases that arise while in the course of employment, its laws specify four kinds of benefits. They are: ? ? ? ? Medical benefits Disability income Death benefits Rehabilitative services
Family and medical leave act or 1993
It provides job protection to the employees in case of family or medical emergency. The minimum criteria for eligibility under this act are: The employee must have worked at least 1250 hours for the employer in the previous year. The eligible employees must have been employed for at least 12 months by a given employer.
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VOLUNTARY EMPLYEE BENEFITS ASSOCIATION (VEBA)
It is tax-exempt trust designed to meet the specific needs of an organization. It is an independent trust fund, similar in many respects to a pension fund. It is offered by a nonprofit, tax-exempt VEBA trust managed by a board of trustees appointed by the plan sponsors. The major advantage is that the trust can accumulate funds tax free.
EMPLOYEE BENEFITS AND EMPLOYEE SERVICES
They are indirect compensation since they are usually extended as a condition of employment to motivate employees. They are any benefits that the employee receives in addition to the remuneration.
Employee Benefits
They can be classified under the following seven major groups: ? ? ? ? ? ? ? Disability income continuation Loss-of –job income continuation Deferred income Spouse or family income continuation Health and accident protection Property and liability protection and A special group of benefits and services called perquisites.
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Employee Services
Employees are provided with wide range of services to enhance their life-style. There are the marginal extra earnings to make the employee feel comfortable at the work place. The major three components that form the employee services group are as follows: Pay for time not worked. Example: Vacations Time off without pay. Example: Employees medical, life insurance Income equipment payments and reimbursements for incurred expenses. Example: Education subsidies.
DISCRETIONARY CORE/ FRINGE COMPENSATION:
Discretionary benefits are offered that the will of company management. Discretionary benefits are classified under three categories. Protection programs. Example: Financial assistance in case of unemployment, disability or serious illness. Paid time-off. Example: Holidays, vacation and sick leave. Services. Example: Transportation services, day care assistance to employees
INTERNATIONAL COMPENSATION:
Compensation managers of many organizations face difficulty in designing and managing the compensation of employees who work for the company in foreign country because of an entirely different set of issues. Globalization has an increased concern for creating internationally equitable compensation systems in many companies. It is crucial that organizations understand. The kind of employees employed by the international firms.
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The elements of international compensation system. The problem associated with returning citizens on overseas assignments to their home country.
Components of compensation
Job Analysis:
Job analysis is a systematic approach to defining the job role, description, requirements, responsibilities, evaluation, etc. It helps in finding out required level of education, skills, knowledge, training, etc. for the job position. It also depicts the job worth i.e. measurable effectiveness of the job and contribution of job to the organization. Thus, it effectively contributes to setting up the compensation package for the job position.
Importance of Job Analysis
Job analysis helps in analyzing the resources and establishing the strategies to accomplish the business goals and strategic objectives. It forms the basis for demand– supply analysis, recruitments, compensation management, and training need assessment and performance appraisal.
Components of job analysis
Job analysis is a systematic procedure to analyze the requirements for the job role and job profile. Job analysis can be further categorized into following sub components.
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Job Position
Skills, Knowledge, Attitude
Job Description
Role & Responsibilitie s Education, Experience
Job Worth
Job position:
Job position refers to the designation of the job and employee in the organization. Job position forms an important part of the compensation strategy as it determines the level of the job in the organization. For example management level employees. The nonmonetary benefits offered to tow different levels in the organization also vary.
Job Description
Job description refers the requirements of an organization looks for a particular job position. It states the key skill requirements, the level of experience needed, level of education required, etc. It also describes the roles and responsibilities are key determinant factor in estimating the level of experience, education, skill, and etc. required for the job. It also helps in benchmarking the performance standards.
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Job Worth
Job worth refers to estimating the job worthiness i.e. how much the job contributes to the organization. It is also known as job evaluation. Job description is used to analyze the job worthiness. It is also known as job evaluation. Roles and responsibilities helps in determining the outcome from the job profile. Once it is determined that how much the job is worth, it becomes easy to define the compensation strategy for the position. Therefore, job analysis forms an integral part in the formulation of compensation strategy of an organization. Organization should conduct the job analysis in a systematic at regular intervals. Job analysis can be used for setting up the compensation packages, for reviewing employees‘ performance with the standard level of performance, determining the training needs for employees who are lacking certain skills.
Pay structure:
Once job analysis has been done organizations need to decide upon the pay structures. Pay structure refers to the process of setting up the pay for a job in an organization. The process deals with internal and external analysis to estimate the compensation package for a job profile. Internal equity, External equity and individual equity are the most popular pay structures. Job descriptions provide the in-depth knowledge about the job profile and its worth. Pay structures are the strong determinant of employee‘s value in the organization. It helps in analyzing the employee‘s role and status in the organization. It provides for fair treatment to all employees. Pay structures also includes the estimation of incentives. The level of incentives also depends on the level of job position in the organizational hierarchy.
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Internal Equity
The internal equity method undertakes the job position in the organizational hierarchy. The process aims at balancing the compensation provided to a job profile in compensation to the compensation provided to its senior and junior level in the hierarchy. The fairness is ensured using job ranking, job classification, level of management, level of status and factor comparison.
Job Ranki ng
INTERN AL EQUITY Factor Comparis on
Job classifi cation
Point System s
External Equity
Here the market pricing analysis is done. Organization formulates their compensation strategies by assessing the competitors‘ or industry standards. Organizations set the compensation packages of their employees aligned with the prevailing compensation packages in the market. This entails for fair treatment to the employees. At
Organiza tions
Market Rate
fairnes s
EXTERN AL EQUITY
times organizations offer higher compensation packages to attract and retain the best talent in their organization.
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Industry Standards
Competito rs‘ Offer
Salary – Surveys
Organizations have to bridge the gap between the industry standards and their salary packages. They cannot provide compensation packages that are either less than the industry standards or are very higher than the market rates. For the purpose they undertake the salary survey. The survey is the research done to analyze the industry standards to setup the compensation strategy for the organization. Organizations can either conduct the survey themselves or they can purchase the survey reports from a reputed research organization. These reports constitute the last 2-5 years or more compensation figures for the various positions held by the organizations. The analysis is done on the basis of certain factors defined in the objective of the research.
Objective of Salary survey
To gather information regarding the industry standards. To know more about the market rate i.e. compensation offered by the competitors. To design a fair compensation system. To design and implement most competitive reward strategies. To benchmark the compensation strategies.
Types of Compensation Surveys
There are two types of compensation surveys undertaken by the organization
COMPENSATION SURVEY
CUSTOM 27
STANDARD
Standard Surveys
Standard surveys are undertaken by organizations on a regular basis. These surveys are conducted annually based on the organizational objectives. These surveys attempt to cover the same companies every year and provide the same time of analysis. The reports are published annually by the research organizations. The organizations willing to formulate their compensations strategies based on the surveys purchase the reports from the research organization.
Custom surveys
At times, a few organizations need to know some specific information. The surveys which cater this need are known as custom surveys. The organizations either higher research organizations to conduct these surveys for them or they themselves conduct the survey by sampling few of the competitors on their own. These surveys do not have any time interval. They are undertaken as the need arises. They focus on important issues usually one or two.
Survey Reports
The survey reports consist of the analysis and conclusion drawn from the evaluative date based on the objectives of the study. The reports also include the data, facts, and figures to support the analysis and conclusion. The supportive data and annexure provided in the report.
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SOMA ENTERPRISE PROFILE
About Soma
Soma Enterprise Ltd..
is one of the fastest growing infrastructure developers in India focused
on construction and development of core infrastructure projects in the transportation, hydel power and water resource sectors among others. Soma has recently diversified into urban infrastructure projects including commercial and residential real estate. In addition to construction contracts, Soma also takes up projects on EPC / Turnkey and Build Operate Transfer (BOT) basis. Soma has achieved revenues of Rs.17.44 billion in 2006—07, and is currently executing projects worth over Rs.Rs.110 billions. As an integral part of its approach to construction, Soma deploys state of the art equipment and technology in the projects to ensure efficient execution. Soma owns most of the critical equipment needed for all aspects of complex infrastructure projects. Over the years, Soma has excelled and won accolades from its clients and peer community for quality and timely delivery of projects. An experienced board of directors leads a highly motivated team of over 1800 engineers and technical staff, 3000 support staff, and 7200 skilled and semi-skilled personnel to ensure consistent quality delivery on time. Backed by the strength of years of know how, experience of key-management and financial's, Soma is able to take up large infrastructure projects either on its own or as part of a consortium. Soma is currently executing projects in Joint Venture with several national and international companies. As Soma consolidates its position in the
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infrastructure space in India, it is also keen to participate in similar projects in other regions including South and South-East Asia, Middle East, Africa and Russia.
Mission and Vision
Just as Water, which is the life force of all living beings, the driving force of Soma is its Mission & Vision
Mission Our Mission has always been to set new standards in quality and mastering the art of intime completion along with time-bound delivery. Earmarking excellency in productivity, quality, innovation and management.
Vision Our Vision has been to evolve as a predomiant defining force in the Infrastructure industry by exploring new frontiers.
Key Management Team
The strength and the source of energy of Soma is its Key Management team. Soma‘s Key Management Team consists of experienced and efficient Directors who lead a highly motivated team of over 1800 engineers and technical staff, 3000 support staff and 7200 skilled and semi-skilled personnel to ensure consistent quality delivery on time.
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Mr. Rajendra Prasad Maganti Chairman and Managing Director Over three decades of experience in Contract Management, Administration and Construction of complex and massive civil works. Mr. Avinash Bhosale Joint Managing Director Extensive experience in Business Promotion and Entrepreneurship Mr. M. M. Prabhakar V. Prasad Director Over two decades of experience in Project Management & Mechanized Construction Mr. B. Ramesh Kumar Director Over three decades of rich experience in all aspects of Plant and Equipment Management. Mr. Ankineedu Maganti Director The youngest member on the Board. Ankineedu spearheads our efforts to continuously improve various aspects of our operations. Mr. Girish Pankaj Baliga Additional Director
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Awards, Accolades & Accreditation
Time and again Soma has proved its excellence in the field of engineering. The following Awards stand a proof of Soma‘s success and achievement. Awards and Achievements Udyog Ratan Award - Mr. Rajendra Prasad Maganti, CMD of Soma Enterprise Ltd., has been awarded the Udyog Ratan Award by the Institute of Economic Studies. Mr.Rajendra Prasad Maganti receiving an award from Hon'ble. Minister for Major Irrigation Govt.of Maharastra, Shri Ajit Pawar for excellence in the execution of Temghar Masonry Dam.
Certificate of Excellency - Soma has been awarded the ?Certificate of Excellency‘ in productivity, quality, innovation and management by Shri Dharam Singh, Hon'ble ChiefMinister of Karnataka. Certificate of Excellence 2007-08 - This certificate of excellence and a golden memento was presented to Soma on 7th January 2008 by Hon'ble Minister for Water Resources, Maharastra, Shri Ajit Pawar for providing & erecting 27 Nos vertical lift type mild steel gates of size 15m x 9m having steel component of 5730 MT for Prakasha Barrage Project, Tal .Shahada, Dist. Nandurbar, Maharashtra (contract awarded by Tapi Irrigation Development Corporation). This task was completed in a short span of 18 months. Best Performance Award - The Vidarbha Irrigation Development Corporation has awarded 'The Best Performance Award' to Soma for the year 2003 - 2004
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Award of Excellence - In line with the past achievements of the Company in mastering the art of in-time completion and appreciation of executing the strengthening of Koyna Dam, Soma has been honored with an ?Award of Excellence? by Government of Maharashtra on 18th June 2006 in Pune.
SOMA has been awarded the prestigious Gold Award and Certificate of Excellency for its outstanding performance and recognizing record progress by Ho‘ble Minister for Water Resources, Shri Ajit Pawar.
ISO 9001-2000 Certification for Design, Planning, Construction and Project Management of Infrastructure projects and Turnkey Projects.
Corporate Social Responsibility
Soma has never deterred from its commitment to society, while keeping its focus on performance. The following activities give a glimpse of Soma‘s initiatives towards Corporate Social Responsibility. Guiding The Corporate Ethic Dedication of the Projects to the People of A.P Soma believes that corporate are part of a larger framework of society and need to contribute their bit for the overall progress of the society they operate in. Towards this end, the company takes an active interest in contributing to the society in every way it can.
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Check Dam across Budipaleru Soma has made it a matter of policy to employ environmentally conscious methods in all its projects and ensure that the ecological balance is not disturbed Smt. Maganti Jhansi Lakshmi Bai Block at Andhra Mahila Sabha, Hyderabad Soma places ‘Education‘ above everything else and believes that it is the foundation of all progress. Many of the project sites that Soma operates in happen to be located at socially backward areas where people do not have access even to basic education. The company takes a great interest in educating the people around the project site. It helps in the construction schools and colleges to provide the much needed access to education. It strives to create opportunities for bright children to realize their full potential.
Career with Soma
Driving the growth of the Soma Enterprise are over 8000 committed employees, spread across the country. The diversity and challenges of location, language and culture blends seamlessly into a common work ethos, which hinges on fostering excellence, recognizing and rewarding entrepreneurship.
We believe in empowerment, delegation and calculated risk taking. Our ongoing endeavor is to create an organizational ambience where talent can bloom. While there have been many success stories, we believe the entrepreneurial attitude is unique and mastered to an art in Soma.. Soma‘s relationship with its employees is changing from the patriarchal to the practical, but the bond continues to be nourished with compassion and care. The richness of this relationship, fashioned by a tradition of benevolence and empathy, represents a
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workplace culture that goes way beyond work. Our commitment to our people is reflected in the sense of belonging and pride every employee feels towards the company and the passion and commitment they bring to their work.
Foundations of Soma
Culture of entrepreneurship, empowerment & enrichment Values of integrity & mutual respect Passion for success through speed of execution Commitment, initiative & ownership of employees Excellent customer relationships Soma is a pioneer in implementing integrated work and living campuses at most of its sites. The benefits of which are having same work and living standards across the levels, proximity of employees and their families helps in community living and better bonding, easy accessibility to work location, faster decision making with key personnel available round the clock.
completed Projects
This section contains a brief overview of the projects that have been completed by Soma. AP - 18 Project (84.5 Km) Koyna Tunnel Nellore Bypass (17.5 Km) - BOT - Annuity Temghar Dam
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Nira Deoghar Earth Dam Maddur - Mysore (49 Km) Tarali Dam Orsang Aqueduct Koyna Dam Strengthening Prakasha Barrage - 503 M long (incl. approaches 708m) Purna Project Alaganuru Balancing Reservoir Maddur - Mysore (49 Km) Madikheda Dam Ranganadi Main Tunnel Teesta HE Project - Diversion Tunnels Khambale Tunnel Takari Pump House Kamshet Tunnel on the Mumbai - Pune Expressway Noida Expressway - Package - IV-B Noida Expressway - Package – II Khandala Tunnel on the Mumbai - Pune Expressway SRSP Flood Flow Canal Package-I
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Current Projects
Soma is currently executing major infrastructure projects at various locations in the country. 2000 MW Subansiri Lower Hydroelectric Project Bangalore Elevated Expressway Pimpalgaon - Dhule (115 Km) BOT RJ-2 Project (44 Km) Vamsadhara (Hiramandalam Reservoir) MP-1 Project (55 Km) Indira Sagar Project (Polavaram) Right Main Canal Package-I Indira Sagar Project (Polavaram) Left Main Canal Package-II Porbandar - Bhiladi Highway on NH-8B, Gujarat Package-I Dhapewada Barrage Digras Barrage Babhali Barrage Bhiladi - Jetpur Section - Pkg-II Bhosa-Khind Tunnel Parabati Head Race Tunnel Mongra Barrage Sipat STPP Stage-I Mongra Left Branch Canal Prakasha Barrage Gates
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Project
Phase
-
II
Hyderabad - Bangalore (170 Kms) MRTS Project Adilabad Expressway (55 kms) - BOT (Annuity) Panipat -Jalandhar Highway 6 Lanning (291.10 Kms)
Facilities offered by Soma -Working and living camps built with prefabricated structures. - Free accommodation and utilities - Subsidized Mess facilities with steam cooking. - Offices with VSAT & Broad band connectivity - Automated laundry services (currently at select sites) - Free travel within and across Project locations
Benefits offered at Soma o In addition to the statutory benefits, we offer o Competitive compensation package o Medical o Bonus o LTA o Gratuity o Project profitability linked incentives
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1. Are you satisfied with the basic pay offered to you?
S. No Response No of Respondents % of respondents
1 2 3 4 5
Strongly agree Agree Neutral Disagree Strongly disagree Total
14 17 2 2 0 35
40% 48.57% 5.71% 5.71% 0% 100%
50% 40% 30% 20% 10% 0%
40%
48.57%
5.71% 5.71%
0.00%
Strongly Agree
Neutral
Strongly Disagree
INTERPRETATION:
Based on the above research 40% of the employees were strongly agreed, 48.57% of the agreed. Only 5.71% Employees were not satisfied with the present basic pay.
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2. I am satisfied with the present promotion criteria.
S. No Response No of Respondents % of respondents
1 2 3 4 5
Strongly agree Agree Neutral Disagree Strongly disagree Total
12 14 6 3 0 35
34.29% 40% 17.14% 8.57% 0% 100%
40.00% 30.00% 20.00% 10.00% 0.00%
34.29%
40.00%
17.14% 8.57% 0.00%
Strongly Agree
Agree
Neutral Disagree Strongly Disagree
INTERPRETATION:
From the above table we come to know that present criteria satisfied strongly agreed by 34.29% of the employees and 40% of the employees are agreed and only8.57% of the employees were not agreed the present promotion criteria.
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3.My salary is purely based up on my qualifications and experience.
S. No Response No of Respondents % of respondents
1 2 3 4 5
Strongly agree Agree Neutral Disagree Strongly disagree Total
10 13 8 4 0 35
29.45% 37.14% 22.85% 11.42% 0% 100%
40.00% 29.45% 35.00% 30.00% 25.00% 20.00% 15.00% 10.00% 5.00% 0.00%
Strongly Agree
37.14% 22.85% 11.42% 0.00%
Neutral
Strongly Disagree
INTERPRETATION:
Above table reveals that 29.45% of the employees were strongly agreed that their salary is purely based on their qualification and experience and 37.14% employees are agreed only 11.42% of the employees are disagreed.
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4. Present wage structure of the company motivates the employees to perform the duties effectively and efficiency.
S. No Response No of Respondents % of respondents
1 2 3 4 5
Strongly agree Agree Neutral Disagree Strongly disagree
Total
10 15 6 4 0
35
28.57% 42.85% 17.14% 11.42% 0%
100%
50.00% 40.00% 28.57% 30.00% 20.00% 10.00% 0.00%
Strongly Agree
42.85% 17.14%
11.42%
0.00%
Agree
Neutral Disagree Strongly Disagree
INTERPRETATION:
Above table reveals that 28.57% of the employees were strongly agreed with the present wage structure of the company motivates the employees to perform effectively and efficiently. 42.85% are agreed and only 11.42% of the employees are disagreed with this.
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5. Wage / Salary influences as a motivating factor in human performance
S. No 1 2 3 4 5 Response Strongly agree Agree Neutral Disagree Strongly disagree Total No of Respondents 17 12 4 2 0 35 % of respondents 48.57% 34.28% 11.42% 5.71% 0% 100%
48.57%
50.00%
40.00% 30.00% 20.00% 10.00% 0.00%
Strongly Agree Neutral Strongly Disagree
34.28% 11.42%
5.71% 0.00%
INTERPRETATION
Above chat reveals that aim of the wage / salary influences the motivating factor in human performance48.57% of the employees are strongly agreed and 34.28% of the employees are agreed and 5.71% are disagreed.
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6.The company is giving more salaries than competitors.
S. No Response No of Respondents % of respondents
1 2 3 4 5
Strongly agree Agree Neutral Disagree Strongly disagree Total
10 15 6 4 0 35
28.58% 42.85% 17.15% 11.42% 0% 100%
50.00% 40.00% 28.58% 30.00% 20.00% 10.00% 0.00%
Strongly Agree
42.85% 17.15%
11.42% 0.00%
Agree
Neutral Disagree Strongly Disagree
INTERPRETATION:
Above table we come to know company is giving more salaries than the competitors strongly agreed by the 28.58% employees and 42.85% employees are agreed, only 11.42% employees are disagreed.
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7.The basic aim of wage administration is to attract, retain and motivate the employees
S. No Response No of Respondents % of respondents
1 2 3 4 5
Strongly agree Agree Neutral Disagree Strongly disagree Total
9 14 6 4 2 35
25.71% 40% 17.15% 11.42% 5.71% 100%
40.00% 25.71% 30.00% 20.00% 10.00% 0.00% Strongly Agree
INTERPRETATION:
40.00%
17.15% 11.42% 5.71%
Neutral
Strongly Disagree
In the above table we agree that the wage administration is to attract, retain and motivate the employees is strongly agreed by 25.71% of the employees and agreed by 40%, only 11.42% are disagreed and 5.71% are strongly disagreed.
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8.An effective wage administration should not have favoritism in its fixation S. No 1 2 3 4 5 Response Strongly agree Agree Neutral Disagree Strongly disagree Total No of Respondents 18 12 5 0 0 35 % of respondents 51.43% 34.28% 14.29% 0% 0% 100%
60.00% 50.00% 40.00% 30.00% 20.00% 10.00% 0.00%
51.43%
34.28% 14.29%
0.00% 0.00%
Strongly Agree
INTERPRETATION:
Neutral
Strongly Disagree
In the above table it was strongly agreed by 51.43% of the employees and 34.28% are agreed of the employees, by this we came to know that a wage administration should not have favoritism
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9.The production has increased after wage settlement S. No 1 2 3 4 5 Response Strongly agree Agree Neutral Disagree Strongly disagree Total No of Respondents 6 21 5 3 0 35 % of respondents 17.14% 60% 14.29% 8.57% 0% 100%
70.00% 60.00% 50.00% 40.00% 30.00% 17.14% 20.00% 10.00% 0.00%
Strongly Agree
60.00%
14.29% 8.57% 0.00%
Neutral
Strongly Disagree
INTERPRETATION:
From the above table we came to know that production has increased after wage settlement is strongly agreed by 17.34% and was agreed by 60% of the employees, only 8.57% are disagreed with this.
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10.Medical facilities offered by this company are appreciable S. No 1 2 3 4 5 Response Strongly agree Agree Neutral Disagree Strongly disagree Total No of Respondents 13 18 0 3 1 35 % of respondents 37.14% 51.42% 0% 8.58% 2.86% 100%
60.00% 50.00% 37.14% 40.00% 30.00% 20.00% 10.00% 0.00%
51.42%
8.58% 0.00%
2.86%
Strongly Agree Neutral DisagreeStrongly Agree Disagree
INTERPRETATION:
Above table reveals that medical facilities offered by the company are appreciable is strongly agreed by the 37.14% and agreed by the 51.42%% of the employees and 8.58% of the employees are disagree and only 2.86% were strongly disagreed.
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11.The company undergoes good health management programs. S. No 1 2 3 4 5 Response Strongly agree Agree Neutral Disagree Strongly disagree Total No of Respondents 15 11 5 4 0 35 % of respondents 42.85% 31.42% 14.29% 11.43% 0% 100%
50.00% 42.85% 40.00% 30.00% 31.42%
20.00%
10.00% 0.00%
Strongly Agree Agree
14.29% 11.43% 0.00%
Neutral Disagree Strongly Disagree
INTERPRETATION:
Company under goes good health management program is strongly agreed by the 42.85% of the employees and 31.42%were agreed and 11.43%% were disagreed there for there in an improvement in the health management program.
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12.External health facilities (health card) provided by the company. S. No 1 2 3 4 5 Response Strongly agree Agree Neutral Disagree Strongly disagree Total No of Respondents 13 16 6 0 0 35 % of respondents 37.14% 45.71% 17.15% 0% 0% 100%
45.71% 50.00% 37.14% 40.00% 30.00% 20.00% 10.00% 0.00%
Strongly Agree Agree Neutral Disagree Strongly Disagree
17.15%
0.00% 0.00%
INTERPRETATION:
In the above table 37.14% of the employees were strongly agreed and 45.71% were agreed with this, almost all the employees are favorer about this.
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13. Good canteen facilities are provided in this company S. No 1 2 3 4 5 Response Strongly agree Agree Neutral Disagree Strongly disagree Total No of Respondents 13 16 4 2 0 35 % of respondents 37.14% 45.71% 11.43% 5.72% 0% 100%
45.71% 50.00% 37.14% 40.00% 30.00% 11.43%
20.00%
10.00% 0.00%
Strongly Agree Agree
5.72%
0.00%
Neutral
Disagree Strongly Disagree
INTERPRETATION:
From the above table we come to know that the canteen facilities are provided in this company are strongly agreed by 37.14% and agreed by 45.71% of the employees, only 5.72% were disagreed with this.
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14.The company offers good incentive schemes. S. No 1 2 3 4 5 Response Strongly agree Agree Neutral Disagree Strongly disagree Total No of Respondents 14 15 4 2 0 35 % of respondents 40% 42.85% 11.43% 5.72% 0% 100%
50.00% 40.00% 40.00% 30.00% 20.00% 10.00% 0.00%
Strongly Agree
42.85%
11.43%
5.72%
0.00%
Agree
Neutral
Disagree Strongly Disagree
INTERPRETATION:
From the above table we come to know that company incentive schemes are strongly agreed by the 40% and agreed by the 42.85% of the employees, only 5.72% of the employees were disagreed with the present incentive system.
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15.Incentive scheme is up to your expected level? S. No 1 2 3 4 5 Response Strongly agree Agree Neutral Disagree Strongly disagree Total No of Respondents 10 14 7 3 1 35 % of respondents 28.57% 40% 20% 8.57% 2.86% 100%
40.00% 40.00% 35.00% 30.00% 25.00% 20.00% 15.00% 10.00% 5.00% 0.00% 28.57% 20.00% 8.57% 2.86%
Strongly Agree
Agree
Neutral
Disagree Strongly Disagree
INTERPRETATION:
Incentive scheme is up to employees expected level is strongly agreed by 28.57% of the employees and agreed by 40% of the employees, 8.57% of the employees were disagreed and only 2.86% of the employees were strongly disagreed with the present inventive scheme.
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16. Introduction of group working skills in various department and section is appreciable S. No 1 2 3 4 5 Response Strongly agree Agree Neutral Disagree Strongly disagree Total No of Respondents 8 20 4 2 1 35 % of respondents 28.57% 40% 20% 8.57% 2.86% 100%
40.00% 40.00% 28.57% 35.00% 30.00% 25.00% 20.00% 15.00% 10.00% 5.00% 0.00%
Strongly Agree Agree
20.00% 8.57% 2.86%
Neutral
Disagree Strongly Disagree
INTERPRETATION:
From the above table we come to know that the introduction of group working skills in various department are strongly agreed with this were 28.57% and 40% were agreed, 8.57% of the employees were disagreed and only 2.86% of the employees were strongly disagreed wit this. 54
Findings
? Many of the employees are satisfied with their present compensation package offered in the organization ? The basic pay offered by the company is satisfied by many of employees only few employees are not satisfied ? Maximum employees are satisfied with their Incentives offered by the organization. ? ? Company is giving more salaries than the competitors. Present promotion criteria in the organization are satisfied by the employees, only few employees are not satisfied. ? Employee‘s salaries are purely on their qualification and experience
? .Maximum employees are strongly agreed that wage administration should not
have favoritism in its fixation.
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Limitations
? ? The study is restricted to the Reliance Money Lt, Hyderabad. Hence the findings and the conclusions drawn therein cannot be expected to be same at the other branches ? .Therefore the above limitations have to be taken into account while considering the findings of the study for the policy decision in other word, the information brought out in the present study is only indicative and might not hold true for the entire population.
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Based on the analysis of date in the previous chapter, an attempt is made to draw certain conclusions and few suggestions are put forward in this chapter.
Suggestions
All employees are desired to improvement in the pay structure due to increase in the cost of living in the society. There is an improvement in the good health management programs. And external health facilities (health card) by the company. Development of group working skills in various department and section. Annual benefits which are provided by the organization must be increased. Many of the employees has satisfied with the present promotion criteria satisfied strongly agreed by 34.29% of the employees and 40% of the employees are agreed and only8.57% of the employees were not agreed the present promotion criteria. Comparing to other organization, this organization is providing more allowances to the employees. Every year company is giving sum amount of lump sum amount as bonus.
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Conclusion:
The wage package is most important to an individual worker because his / her standard of living and that of their family depends upon their earnings. It is also important to an employer as it constitutes of the principal items that enter into his cost production. The government and the community at large are vitally interested in wages levels because of large number of industrial disputes and work stoppages revolving around the question of wages, bonus and allowances. Government is also concerned with wage standards. Which affect the social climate of the country as well as such important parts of the economy as employment, prices and inflation, national productivity and the ability of the country to export enough goods to pay for its imports and so keep its international receipts and payments in balance.
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BIBLIOGRAPHY
PERSONAL MANAGEMENT BY C.B.MEMORIA HUMAN RESOURCE MANAGEMENT BY P.SUBBA RAO HUMAN RESOURCE MANAGEMENT BY BISWAJEET PATTANAYAK.
WEBSITES REFERRED
www.citehr.com www.linkhr.com www.dietrichsurveys.com www.allbusiness.com www.web.absochot.com www.hrcompensation.com
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QUESTIONNAIRE:
Questions
1. Are you satisfied with the basic pay offered to you? A. Strongly agree B. Agree C. Neutral D. Disagree E. Strongly Disagree 2. I am satisfied with the present promotion criteria. A. Strongly agree B. Agree C. Neutral D. Disagree E. Strongly Disagree
3. My salary is purely based up on my qualification and experience.
A. Strongly agree B. Agree C. Neutral D. Disagree E. Strongly Disagree
4. Present wage structure of the company motivates the employees to perform the duties effectively and efficiently.
A. Strongly agree B. Agree C. Neutral D. Disagree E. Strongly Disagree
5. Wage/salary influences as a motivating factor in human performance.
A. Strongly agree B. Agree C. Neutral D. Disagree E. Strongly Disagree
6. The company is giving more salaries than competitors.
A. Strongly agree B. Agree C. Neutral D. Disagree E. Strongly Disagree
7. The basic aim of wage administration is to attract, retain and motivate the employee.
A. Strongly agree B. Agree C. Neutral D. Disagree E. Strongly Disagree
8. An effective wage administration should not have favoritism in its fixation.
A. Strongly agree B. Agree C. Neutral D. Disagree E. Strongly Disagree
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9. The production has increased after wage settlement.
A. Strongly agree B. Agree C. Neutral D. Disagree E. Strongly Disagree
10. Medical facilities offered by this company are applicable.
A. Strongly agree B. Agree C. Neutral D. Disagree E. Strongly Disagree
11. The company undergoes good health management programs.
A. Strongly agree B. Agree C. Neutral D. Disagree E. Strongly Disagree
12. External health facilities (health card) provided by the company.
A. Strongly agree B. Agree C. Neutral D. Disagree E. Strongly Disagree
13. The company offers good incentive schemes.
A. Strongly agree B. Agree C. Neutral D. Disagree E. Strongly Disagree
14. Good canteen facilities are provided in this company
A. Strongly agree B. Agree C. Neutral D. Disagree E. Strongly Disagree
15. Incentive scheme is up to your expected levels?
A. Strongly agree B. Agree C. Neutral D. Disagree E. Strongly Disagree
16. Introduction of group working skills in various departments and section is appreciable.
A. Strongly agree B. Agree C. Neutral D. Disagree E. Strongly Disagree
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doc_203989527.docx
COMPENSATION & BENEFITS
HUMAN RESOURCE MANAGEMENT INTRODUCTION:
Human Resource Management is primarily concern with the people‘s management. It is a crucial sub system in the process of management. The success or failure of the organization not only depends on the material, machines and equipment but also on the personal that put in their best efforts for san efficient performance of the job. Human resource management is the management of employee‘s skills, knowledge, talents, attitudes, creative abilities etc.
DEFENITION:
Personnel management effectively describes the process of planning and deducting the application development and utilization of human resources in the employment. ?DALEYODER? Personnel management is the process of attractive, holding, motivating people involving all managers, line and staff. ?DUNN & STEPHEN?. Earlier HRM was called by different names like Personnel Management, Personnel Administration, Labour Administration, Human Capital Management and Human Asset Management. In the present scenario, HRM is used as a synonym to Personnel Management and a Personnel department is called Human Resource Department.
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OBJECTIVES OF THE STUDY:
? ? ? ? ? ? To study the present profile of Reliance Money Ltd and the organizational structure etc. To observe the level of satisfaction of the employees relating to the compensation benefits. To identify the extent of compensation in Reliance Money Ltd employees and its impact on the job performance of the employees. To evaluate the working environment in Reliance Money Ltd To examine the satisfaction regarding the salary and other benefits of its employees. To suggest suitable measures to improve the overall management of the compensation.
SCOPE OF THE STUDY: In the survey an attempt has been made analyze compensation management of employees in SOMA ENTERPRISES Ltd. Compensation management in SOMA ENTERPRISES Ltd has been analyzed on the basis of the following factors. Salary and Monitory benefits Job security Promotion policy Working environment Nature of job Fringe and welfare benefits Non taxable benefits
2
METHODOLOGY:
The present study entitled ?COMPENSATION & BENEFITS? at Reliance Money Ltd was aimed at finding the management of compensation among the employees. The questionnaire was administrated in random sample basis to the employees and was collected within a week.
SOURCE OF DATA:
The data regarding the policies procedures used in order to know compensation management provided to the employees have been collected from the HR Department. Apart from this, data was collected from primary and secondary sources. Primary data has been collected through a self administered questionnaire designed to assess the employee‘s perception of the current HR practices and systems. The questionnaire consists of 16 questions and the sample size is 35.These questions are designed in such a way, that they can be calculated on a graph. Secondary data means data that are already available that is their \refer to data which have already been collected and analyzed by someone else. Sources are books, magazines, newspapers, text books and websites.
LIMITATIONS:
This study is restricted to the Reliance Money Ltd, Hyderabad. Here the findings and the conclusions drawn therein cannot be expected to be same elsewhere.
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COMPENSATION & BENEFITS Introduction:
Compensation refers to all forms of financial returns and tangible services and benefits employee receives as a part of an employment relationship. Compensation may be defined as money received in return to the performance of work, plus the many kinds of benefits and services that organizations provide to their employees. Money is included under direct compensation (popularly known as wages that is gross pay); a ?wage‘ (or pay) is the remuneration paid for the service of labour in production, periodically as salary to an employee or a worker. Wage usually refers to the hourly rate paid to such groups as in the production process (blue-collar workers); on the other hand, salary normally refers to the weekly or monthly rates paid to clerical, administrative and professional employees (white-collar workers. The wage level represents the money an average worker makes in a geographical area or in his organization. It is only an average, specific markets or firms and individual wages can vary widely from the average. The term ?wage structure‘ is used to describe wage or salary relationship within a particular group. The grouping can be according to occupation, or organization, such as wage structure for craftsman (carpenters, mechanics, brick layers etc.) Wages and salaries comes under direct compensation or core compensation while benefits come under indirect compensation, and may consist of life, accident and health insurance, the employers contribution to retirements, pay for vacation or illness and employer‘s requirements for employee welfare as social security. These benefits are usually known as ?fringe benefits‘ – as they are offered by the employer to the employee
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as ?fringe‘. Different terms have been used for these benefits such as ?fringe benefits‘ ?welfare expenses?, ?wage supplements?, ?sub wage? or social changes?, ?perquisites? other than wages or ?transpecuniary incentives?. The other terms used are extra wages, ?hidden payroll?, ?non-wage labour costs? or ?selected supplementary compensation practices?. The glossary of current industrial relation and wage terms has defined fringe benefits as ?supplement to wage received by workers at a cost to employers. The term encompasses a number of benefits paid vacation, pension, health and insurance plans, etc. –which usually add up to a practice that may constitute a dubious benefit for workers?. Management is concerned with attracting and keeping employees whose performance meets at least minimum levels of acceptability; and at keeping ?absenteeism‘ and ?turnover‘ to tolerable levels. The provision of ?benefits‘ and ?services‘ can be and are important in maintain the employees and reducing or keeping turnover and absenteeism low. It is important to note that ?financial‘ incentives are paid to specific employees whose work is above standard. ?Employee benefits and service‘ on the other hand, are available to all employees based on their membership in the organization and not to stimulate them to great effort and higher performance. They foster loyalty and act as a security base for the workers. With the immense competition of attracting and retaining talented human resource, compensation package is the only motivation factor available with the organization be it Indian foreign organizations or foreign-owned multinationals. With the high attrition rate organizations are increasing their salary packages to attract and retain.
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To develop a competitive advantage in a global economy, the compensation program of the organization must support totally the strategic plans and actions of the organization. The individuals occupying the execute position of the organization are responsible for establishing and developing the strategy of the organization. The overall strategic plans inform all of the organization‘s members of the direction wishes to take. Management and organizational specialists review these strategic plans and take the actions necessary within their domain to ensure accomplishment of the plans. For the human resources / compensation specialist, the assignment to ensure accomplishment of organizational strategy begins with determining The work that must be performed by some work units or individuals. The kinds and levels of knowledge and skill required. The quality of people needed to promote organizational success, and The rewards the organization can offer to their member that promotes a work culture that ensures accomplishment of organizational strategy. An organization is formed to accomplish a specific mission. To do this, it must attract and hire people who have certain knowledge, skills, aptitudes, and attitudes. To attract and retain such people, the organization provides rewards. An organization designs and implements a reward system to focus worker attention on the specific behaviors the range from simply arriving at work at the scheduled time to meeting specified performance standards and to be useful in stimulating desired behaviors, they must meet the demands of the employees whose behaviors they are intended to influence.
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Evolution of Compensation
Today‘s compensation systems have come from a long way. With the changing organizational structures workers‘ need and compensation systems have also been changing. From the bureaucratic organizations to the participative organizations, employees have started asking for their rights and appropriate compensations, the higher education standards and higher skills required for the jobs have made the organizations provide competitive compensations to their employees. Compensation strategy is derived from the business strategy. The business goals and objectives are aligned with the HR strategies. Then the compensation committee or the concerned authority formulates the compensation strategy. It depends on both internal and external factors as well as the life cycle of an organization.
Traditional compensation system Modern compensati on systems
Change in compensation systems
Evolution of strategic compensation
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Traditional Compensation System
In the traditional organizational structures, employees were expected to work hard and obey the bosses‘ orders. In return they were provided with job security, salary increments and promotions annually. The salary was determined on the basis of the job work and the years of experience the employee is holding. Some of the organizations provided for retirement benefits such as, pension plans, for the employees. It was assumed that humans work for money, there was no space for other psychological and social needs of workers.
Change in Compensation System
With the behavioral science theories and evolution of labour and trade unions, employees started asking for their rights. Maslow brought in the need hierarchy for the rights of the employees. He stated that employees do not work only for money but there are other needs too which they want to satisfy from their job, i.e. social needs, psychological needs, safety needs, self-actualization, etc. Now the employees were being treated as human resource. Their performance was being measured and appraisal based on the organizational and individual performance. Competition among employee existed. Employees were expected to work hard to have the job security. The compensation system was designed on the basis of job work and related proficiency of the employee.
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Self Actualizati on
Self Actualization
Esteem Social Needs Safety Needs Psychological Needs
Today’s Modern Compensation Systems
Today the compensation systems are designed aligned to the business goals and strategies. The employees are expected to work and take their own decisions. Authority is being delegated. Employees feel secured and valued in the organization. Organizations offer monetary and non-monetary benefits to attract and retain the best talents in the competitive environment. Some of the benefits are special allowances like mobile, company‘s vehicle; House rent allowances; Statutory leaves, etc.
Types of Compensation
Intrinsic Compensation: It represents psychological mindset of the employee resulting from job-performance. Extrinsic Compensation: It includes both the monetary and non-monetary rewards. Monetary Compensation is to reward the employee according to his or her performance in the job. Monetary Compensation represents core compensation. Ex: Base pay, Cost of living adjustments, Seniority, Merit pay.
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Non-monetary rewards include medical insurance, variations which are considered as employee benefits or fringe compensation.
3Base pay: This is the pay which the employee receives for performing their jobs. This
could be hourly pay or wage or salary pay.
Cost of Living Adjustments (COLAs): COLAs are the base pay increased that
are done periodically as per the changes in prices as indexed by the consumer price index (CPI).
Seniority Pay: Seniority pay is a reward given to the employees according to the
length of their service in organization. It is given to the employees because they refine existing skills which enables them to work more productively.
Merit Pay: Merit pay is given to those employees who show a difference in their job
performances. Employees earn a permanent increase in their base pay. It therefore helps in retaining the skilled employees in the organization.
Incentive Pay: It is called compensation or an extra amount other than the salary
rewarded to an employee for he has attained a standard based on goals of the organization.
Components of compensation System
Compensation systems are designed keeping in minds the strategic goals and business objectives. Compensation system is designed on the basis of certain factors after analyzing the job work and responsibilities. Components of a compensation system are as follow:
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Job Analysis
Pay Structures
Salary Surveys
Types of Compensation
Compensation provided to employees can direct in the form of monetary benefits and / or indirect in the form of non-monetary benefits known as perks, time off, etc. Compensation does not include only salary but it is the sum total of all rewards and allowances provided to the employees in return for their services. If the compensation offered is effectively managed, it continuous to high organizational productivity. Direct Compensation Indirect Compensation
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Need of Compensation Management
A good compensation package is important to motivate the employees to increase the organizational productivity. Unless compensation is provided no one will come ad work for the organization. Thus, compensation helps in running an organization effectively and accomplishing its goals. Salary is just a part of the compensation system, the employees have other psychological and self-actualization needs to fulfill. Thus, compensation serves the purpose. The most competitive compensation will help the organization to attract and sustain the best talent. The compensation package should be as per industry standards
Motivation
Compensation Package
Employee Retention
Need Satisfaction
Strategic Compensation
Strategic compensation is determining and providing the compensation packages to the employees that are aligned with the business goals and objectives. In today‘s competitive scenario organizations have to take special measures regarding compensation of the employees so that the organizations retain the valuable employees. The
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compensation systems have changed from traditional ones to strategic compensation systems.
Direct Compensation
Direct compensation refers to monetary benefits offered and provided to employees in return of the services they provide to the organization. The monetary benefits include basic salary, house rent allowance, conveyance, leave travel allowance, medical reimbursements, special allowances, bonus, pf / gratuity, etc. They are given at a regular interval at a definite time.
Basic Salary
Salary is the amount received by the employee in lieu of the work done by him/her for a certain period say a day, a week, a month, etc. It is the money an employee receives from his/her employer by rendering his/her services.
House Rent Allowance
Organizations either provide accommodations to its employees who are from different state or country or they provide house rent allowances to its employees. This is done to provide them social security and motivate them to work.
Conveyance
Organizations provide for cab facilities to their employees. Few organizations also provide vehicles ad petrol allowances to their employees to motivate them.
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Medical Reimburse ments Basic Salary Special Allowances
House Rent Allowances
Direct Compensati on Bonus
Conveyance
Leave Travel Allowances
Leave Travel Allowance
These allowances are provided to retain the best talent in the organization. The employees are given allowances to visit any place they wish with their families. The allowances are scaled as per the position of employee in the organization
Medical Reimbursement
Organizations also look after the health conditions of their employees. The employees are provided with medic-claims for them and their family members. These medic-claims include health-insurance and treatment bills reimbursements.
Bonus
Bonus is paid to the employees during festive seasons to motivate them and provide them the social security. The bonus amount usually amount to one month‘s salary of the employee.
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Special Allowance
Special allowance such as overtime, mobile allowances, meals, commissions, travel expenses, reduced interest loans; insurance, club membership, etc. are provided to employees to provide them social and motivate them which improve the organizational productivity.
INDIRECT COMPENSATION:
Indirect compensation refers to non-monetary benefits offered and provided to employees in lieu of the services provided b them to the organization. They include Leave policy, Overtime policy, Car policy, Hospitalization, Insurance, Leave travel assistance limits, Retirement benefits, and Holiday homes.
Leave Policy
It is the right of employee to get adequate number of leave while working with the organization. The organizations provide for paid leaves such as, casual leaves, medical leaves (sick leave), and maternity leaves, statutory pay, etc.
Overtime policy
Employee should be provided with the adequate allowances and facilities during their overtime, if they happened to do so, such as transport facilities, overtime pay, etc.
Hospitalization
The employees should be provided allowances to get their regular check-ups, say at an interval of one year. Even their dependents should be eligible for the medic-claims that provide them emotional and social security.
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Overtime policy Hospitalizatio n
Leave Policy
Flexible Timings
Indirect Compensation
Insurance
Holiday Homes Retirement Benefits
Leave Travel
Insurance
Organizations also provide for accidental insurance and life insurance for employees. This gives them the emotional security and they feel themselves valued in the organization.
Leave Travel
The employees are provided with leaves and travel allowances to go for holiday with their families. Some organizations arrange for a tour for the employee of the organization. This is usually done to make the employee stress free.
Retirement Benefits
Organizations provide for pension plans and other benefits for their employees which benefits them after they retire from the organization at the prescribed age.
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Holiday Homes
Organizations provide for holiday homes and guest house for their employees at different locations. These holiday homes are usually located in hill station and other most wanted holiday spots. The organizations make sure that the employees do not face any kind of difficulties during their stay in the guest house.
Flexible Timings
Organizations provide for flexible timings to the employees who cannot come to work during normal shifts due to their personal problems and valid reactions.
COMPENSATION AND ORGANIZATION STRATEGY
Compensation and organization should support the strategic plans and actions of the organization to develop its competitive advantage in the global economy. Strategic refers to future course of action. Strategic plans are those which help the individuals to know what the organization wishes to achieve. Human Resource Compensation specialist ensures the accomplishment of the organizational strategy by determining the following factors: ? ? ? The kind and levels of skills required by the individuals. Efficiency of the work performed by the individuals. The amount of quality that is required by the organization for its development through the individuals. ? Finally compensation pay program that the organization has to provide the individuals, to promote a work culture that ensures the accomplishment of the organizational strategy employed.
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COMPENSATION PAY
The role of HR manager in designing the compensation pay is based on employee income, life-style and social class. It is necessary to have an understanding of the lifestyle and standard of living through the pay, income, earnings which the individual gets to know the importance of pay provided by the employer. A survey conducted in 1989 noted that stress decreases with age and income. The study found out that ?the lower the income is, the higher the stress level is?. Pay structures should be well designed to retain valued employees. Human resource professional group jobs into pay grades based on similar compensable factors and value. No two persons having same credentials can do the jobs equally well. Therefore companies recognize these differences and pay them according to their knowledge, job performance, etc. Compensation professionals should decide what compensation should be paid for which pay structure.
Compensation Professional Goals
They design and promote effective compensation systems which in turn help the organization to retain the highly skilled employees in the organizations They take up help of the compensation surveys and strategic analysis for this purpose. Strategic analysis helps the business professionals to know and understand their position in the market based on external and internal factors. Compensation surveys are very helpful to the condensation professionals because they provide a realistic views of the competitor‘s helpful to the compensation professional because they provide realistic views of the competitor‘s pay practices and guide them to design a compensation system that best suits the organization.
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Steps in constructing a pay structure
The compensation structure as to fulfill the objective of the organizations, the HRM department and the employees of the organization. A sound compensation structure considers job analysis and job evaluation to determine wage structure. Compensation specialist develops pay structures based on the following steps: Deciding on the number of pay structures Determining a market pay line Developing pay grades Evaluating the results.
EMPLOYEE BENEFITS MANAGEMENT Compensation of Legally Required Benefits of Employee
The various laws that are needed to be followed to provide legally required benefits to the individuals are: Social security act, 1935 Workers compensation laws Family and medical leave act of 1993
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Social securityact-1935
Social security act was introduced in the year 1937 to protect the families and provide them with basic securities in case of unemployment. This Act also looks after the retirement income, health and welfare of the employees and their families. It includes. Unemployment Insurance Old age survivor and Disability Income (OASDI) Medicare
Workers compensation laws
It is given to employees in case of work place injuries and illness. It covers injuries and diseases that arise while in the course of employment, its laws specify four kinds of benefits. They are: ? ? ? ? Medical benefits Disability income Death benefits Rehabilitative services
Family and medical leave act or 1993
It provides job protection to the employees in case of family or medical emergency. The minimum criteria for eligibility under this act are: The employee must have worked at least 1250 hours for the employer in the previous year. The eligible employees must have been employed for at least 12 months by a given employer.
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VOLUNTARY EMPLYEE BENEFITS ASSOCIATION (VEBA)
It is tax-exempt trust designed to meet the specific needs of an organization. It is an independent trust fund, similar in many respects to a pension fund. It is offered by a nonprofit, tax-exempt VEBA trust managed by a board of trustees appointed by the plan sponsors. The major advantage is that the trust can accumulate funds tax free.
EMPLOYEE BENEFITS AND EMPLOYEE SERVICES
They are indirect compensation since they are usually extended as a condition of employment to motivate employees. They are any benefits that the employee receives in addition to the remuneration.
Employee Benefits
They can be classified under the following seven major groups: ? ? ? ? ? ? ? Disability income continuation Loss-of –job income continuation Deferred income Spouse or family income continuation Health and accident protection Property and liability protection and A special group of benefits and services called perquisites.
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Employee Services
Employees are provided with wide range of services to enhance their life-style. There are the marginal extra earnings to make the employee feel comfortable at the work place. The major three components that form the employee services group are as follows: Pay for time not worked. Example: Vacations Time off without pay. Example: Employees medical, life insurance Income equipment payments and reimbursements for incurred expenses. Example: Education subsidies.
DISCRETIONARY CORE/ FRINGE COMPENSATION:
Discretionary benefits are offered that the will of company management. Discretionary benefits are classified under three categories. Protection programs. Example: Financial assistance in case of unemployment, disability or serious illness. Paid time-off. Example: Holidays, vacation and sick leave. Services. Example: Transportation services, day care assistance to employees
INTERNATIONAL COMPENSATION:
Compensation managers of many organizations face difficulty in designing and managing the compensation of employees who work for the company in foreign country because of an entirely different set of issues. Globalization has an increased concern for creating internationally equitable compensation systems in many companies. It is crucial that organizations understand. The kind of employees employed by the international firms.
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The elements of international compensation system. The problem associated with returning citizens on overseas assignments to their home country.
Components of compensation
Job Analysis:
Job analysis is a systematic approach to defining the job role, description, requirements, responsibilities, evaluation, etc. It helps in finding out required level of education, skills, knowledge, training, etc. for the job position. It also depicts the job worth i.e. measurable effectiveness of the job and contribution of job to the organization. Thus, it effectively contributes to setting up the compensation package for the job position.
Importance of Job Analysis
Job analysis helps in analyzing the resources and establishing the strategies to accomplish the business goals and strategic objectives. It forms the basis for demand– supply analysis, recruitments, compensation management, and training need assessment and performance appraisal.
Components of job analysis
Job analysis is a systematic procedure to analyze the requirements for the job role and job profile. Job analysis can be further categorized into following sub components.
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Job Position
Skills, Knowledge, Attitude
Job Description
Role & Responsibilitie s Education, Experience
Job Worth
Job position:
Job position refers to the designation of the job and employee in the organization. Job position forms an important part of the compensation strategy as it determines the level of the job in the organization. For example management level employees. The nonmonetary benefits offered to tow different levels in the organization also vary.
Job Description
Job description refers the requirements of an organization looks for a particular job position. It states the key skill requirements, the level of experience needed, level of education required, etc. It also describes the roles and responsibilities are key determinant factor in estimating the level of experience, education, skill, and etc. required for the job. It also helps in benchmarking the performance standards.
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Job Worth
Job worth refers to estimating the job worthiness i.e. how much the job contributes to the organization. It is also known as job evaluation. Job description is used to analyze the job worthiness. It is also known as job evaluation. Roles and responsibilities helps in determining the outcome from the job profile. Once it is determined that how much the job is worth, it becomes easy to define the compensation strategy for the position. Therefore, job analysis forms an integral part in the formulation of compensation strategy of an organization. Organization should conduct the job analysis in a systematic at regular intervals. Job analysis can be used for setting up the compensation packages, for reviewing employees‘ performance with the standard level of performance, determining the training needs for employees who are lacking certain skills.
Pay structure:
Once job analysis has been done organizations need to decide upon the pay structures. Pay structure refers to the process of setting up the pay for a job in an organization. The process deals with internal and external analysis to estimate the compensation package for a job profile. Internal equity, External equity and individual equity are the most popular pay structures. Job descriptions provide the in-depth knowledge about the job profile and its worth. Pay structures are the strong determinant of employee‘s value in the organization. It helps in analyzing the employee‘s role and status in the organization. It provides for fair treatment to all employees. Pay structures also includes the estimation of incentives. The level of incentives also depends on the level of job position in the organizational hierarchy.
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Internal Equity
The internal equity method undertakes the job position in the organizational hierarchy. The process aims at balancing the compensation provided to a job profile in compensation to the compensation provided to its senior and junior level in the hierarchy. The fairness is ensured using job ranking, job classification, level of management, level of status and factor comparison.
Job Ranki ng
INTERN AL EQUITY Factor Comparis on
Job classifi cation
Point System s
External Equity
Here the market pricing analysis is done. Organization formulates their compensation strategies by assessing the competitors‘ or industry standards. Organizations set the compensation packages of their employees aligned with the prevailing compensation packages in the market. This entails for fair treatment to the employees. At
Organiza tions
Market Rate
fairnes s
EXTERN AL EQUITY
times organizations offer higher compensation packages to attract and retain the best talent in their organization.
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Industry Standards
Competito rs‘ Offer
Salary – Surveys
Organizations have to bridge the gap between the industry standards and their salary packages. They cannot provide compensation packages that are either less than the industry standards or are very higher than the market rates. For the purpose they undertake the salary survey. The survey is the research done to analyze the industry standards to setup the compensation strategy for the organization. Organizations can either conduct the survey themselves or they can purchase the survey reports from a reputed research organization. These reports constitute the last 2-5 years or more compensation figures for the various positions held by the organizations. The analysis is done on the basis of certain factors defined in the objective of the research.
Objective of Salary survey
To gather information regarding the industry standards. To know more about the market rate i.e. compensation offered by the competitors. To design a fair compensation system. To design and implement most competitive reward strategies. To benchmark the compensation strategies.
Types of Compensation Surveys
There are two types of compensation surveys undertaken by the organization
COMPENSATION SURVEY
CUSTOM 27
STANDARD
Standard Surveys
Standard surveys are undertaken by organizations on a regular basis. These surveys are conducted annually based on the organizational objectives. These surveys attempt to cover the same companies every year and provide the same time of analysis. The reports are published annually by the research organizations. The organizations willing to formulate their compensations strategies based on the surveys purchase the reports from the research organization.
Custom surveys
At times, a few organizations need to know some specific information. The surveys which cater this need are known as custom surveys. The organizations either higher research organizations to conduct these surveys for them or they themselves conduct the survey by sampling few of the competitors on their own. These surveys do not have any time interval. They are undertaken as the need arises. They focus on important issues usually one or two.
Survey Reports
The survey reports consist of the analysis and conclusion drawn from the evaluative date based on the objectives of the study. The reports also include the data, facts, and figures to support the analysis and conclusion. The supportive data and annexure provided in the report.
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SOMA ENTERPRISE PROFILE
About Soma
Soma Enterprise Ltd..
is one of the fastest growing infrastructure developers in India focused
on construction and development of core infrastructure projects in the transportation, hydel power and water resource sectors among others. Soma has recently diversified into urban infrastructure projects including commercial and residential real estate. In addition to construction contracts, Soma also takes up projects on EPC / Turnkey and Build Operate Transfer (BOT) basis. Soma has achieved revenues of Rs.17.44 billion in 2006—07, and is currently executing projects worth over Rs.Rs.110 billions. As an integral part of its approach to construction, Soma deploys state of the art equipment and technology in the projects to ensure efficient execution. Soma owns most of the critical equipment needed for all aspects of complex infrastructure projects. Over the years, Soma has excelled and won accolades from its clients and peer community for quality and timely delivery of projects. An experienced board of directors leads a highly motivated team of over 1800 engineers and technical staff, 3000 support staff, and 7200 skilled and semi-skilled personnel to ensure consistent quality delivery on time. Backed by the strength of years of know how, experience of key-management and financial's, Soma is able to take up large infrastructure projects either on its own or as part of a consortium. Soma is currently executing projects in Joint Venture with several national and international companies. As Soma consolidates its position in the
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infrastructure space in India, it is also keen to participate in similar projects in other regions including South and South-East Asia, Middle East, Africa and Russia.
Mission and Vision
Just as Water, which is the life force of all living beings, the driving force of Soma is its Mission & Vision
Mission Our Mission has always been to set new standards in quality and mastering the art of intime completion along with time-bound delivery. Earmarking excellency in productivity, quality, innovation and management.
Vision Our Vision has been to evolve as a predomiant defining force in the Infrastructure industry by exploring new frontiers.
Key Management Team
The strength and the source of energy of Soma is its Key Management team. Soma‘s Key Management Team consists of experienced and efficient Directors who lead a highly motivated team of over 1800 engineers and technical staff, 3000 support staff and 7200 skilled and semi-skilled personnel to ensure consistent quality delivery on time.
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Mr. Rajendra Prasad Maganti Chairman and Managing Director Over three decades of experience in Contract Management, Administration and Construction of complex and massive civil works. Mr. Avinash Bhosale Joint Managing Director Extensive experience in Business Promotion and Entrepreneurship Mr. M. M. Prabhakar V. Prasad Director Over two decades of experience in Project Management & Mechanized Construction Mr. B. Ramesh Kumar Director Over three decades of rich experience in all aspects of Plant and Equipment Management. Mr. Ankineedu Maganti Director The youngest member on the Board. Ankineedu spearheads our efforts to continuously improve various aspects of our operations. Mr. Girish Pankaj Baliga Additional Director
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Awards, Accolades & Accreditation
Time and again Soma has proved its excellence in the field of engineering. The following Awards stand a proof of Soma‘s success and achievement. Awards and Achievements Udyog Ratan Award - Mr. Rajendra Prasad Maganti, CMD of Soma Enterprise Ltd., has been awarded the Udyog Ratan Award by the Institute of Economic Studies. Mr.Rajendra Prasad Maganti receiving an award from Hon'ble. Minister for Major Irrigation Govt.of Maharastra, Shri Ajit Pawar for excellence in the execution of Temghar Masonry Dam.
Certificate of Excellency - Soma has been awarded the ?Certificate of Excellency‘ in productivity, quality, innovation and management by Shri Dharam Singh, Hon'ble ChiefMinister of Karnataka. Certificate of Excellence 2007-08 - This certificate of excellence and a golden memento was presented to Soma on 7th January 2008 by Hon'ble Minister for Water Resources, Maharastra, Shri Ajit Pawar for providing & erecting 27 Nos vertical lift type mild steel gates of size 15m x 9m having steel component of 5730 MT for Prakasha Barrage Project, Tal .Shahada, Dist. Nandurbar, Maharashtra (contract awarded by Tapi Irrigation Development Corporation). This task was completed in a short span of 18 months. Best Performance Award - The Vidarbha Irrigation Development Corporation has awarded 'The Best Performance Award' to Soma for the year 2003 - 2004
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Award of Excellence - In line with the past achievements of the Company in mastering the art of in-time completion and appreciation of executing the strengthening of Koyna Dam, Soma has been honored with an ?Award of Excellence? by Government of Maharashtra on 18th June 2006 in Pune.
SOMA has been awarded the prestigious Gold Award and Certificate of Excellency for its outstanding performance and recognizing record progress by Ho‘ble Minister for Water Resources, Shri Ajit Pawar.
ISO 9001-2000 Certification for Design, Planning, Construction and Project Management of Infrastructure projects and Turnkey Projects.
Corporate Social Responsibility
Soma has never deterred from its commitment to society, while keeping its focus on performance. The following activities give a glimpse of Soma‘s initiatives towards Corporate Social Responsibility. Guiding The Corporate Ethic Dedication of the Projects to the People of A.P Soma believes that corporate are part of a larger framework of society and need to contribute their bit for the overall progress of the society they operate in. Towards this end, the company takes an active interest in contributing to the society in every way it can.
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Check Dam across Budipaleru Soma has made it a matter of policy to employ environmentally conscious methods in all its projects and ensure that the ecological balance is not disturbed Smt. Maganti Jhansi Lakshmi Bai Block at Andhra Mahila Sabha, Hyderabad Soma places ‘Education‘ above everything else and believes that it is the foundation of all progress. Many of the project sites that Soma operates in happen to be located at socially backward areas where people do not have access even to basic education. The company takes a great interest in educating the people around the project site. It helps in the construction schools and colleges to provide the much needed access to education. It strives to create opportunities for bright children to realize their full potential.
Career with Soma
Driving the growth of the Soma Enterprise are over 8000 committed employees, spread across the country. The diversity and challenges of location, language and culture blends seamlessly into a common work ethos, which hinges on fostering excellence, recognizing and rewarding entrepreneurship.
We believe in empowerment, delegation and calculated risk taking. Our ongoing endeavor is to create an organizational ambience where talent can bloom. While there have been many success stories, we believe the entrepreneurial attitude is unique and mastered to an art in Soma.. Soma‘s relationship with its employees is changing from the patriarchal to the practical, but the bond continues to be nourished with compassion and care. The richness of this relationship, fashioned by a tradition of benevolence and empathy, represents a
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workplace culture that goes way beyond work. Our commitment to our people is reflected in the sense of belonging and pride every employee feels towards the company and the passion and commitment they bring to their work.
Foundations of Soma
Culture of entrepreneurship, empowerment & enrichment Values of integrity & mutual respect Passion for success through speed of execution Commitment, initiative & ownership of employees Excellent customer relationships Soma is a pioneer in implementing integrated work and living campuses at most of its sites. The benefits of which are having same work and living standards across the levels, proximity of employees and their families helps in community living and better bonding, easy accessibility to work location, faster decision making with key personnel available round the clock.
completed Projects
This section contains a brief overview of the projects that have been completed by Soma. AP - 18 Project (84.5 Km) Koyna Tunnel Nellore Bypass (17.5 Km) - BOT - Annuity Temghar Dam
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Nira Deoghar Earth Dam Maddur - Mysore (49 Km) Tarali Dam Orsang Aqueduct Koyna Dam Strengthening Prakasha Barrage - 503 M long (incl. approaches 708m) Purna Project Alaganuru Balancing Reservoir Maddur - Mysore (49 Km) Madikheda Dam Ranganadi Main Tunnel Teesta HE Project - Diversion Tunnels Khambale Tunnel Takari Pump House Kamshet Tunnel on the Mumbai - Pune Expressway Noida Expressway - Package - IV-B Noida Expressway - Package – II Khandala Tunnel on the Mumbai - Pune Expressway SRSP Flood Flow Canal Package-I
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Current Projects
Soma is currently executing major infrastructure projects at various locations in the country. 2000 MW Subansiri Lower Hydroelectric Project Bangalore Elevated Expressway Pimpalgaon - Dhule (115 Km) BOT RJ-2 Project (44 Km) Vamsadhara (Hiramandalam Reservoir) MP-1 Project (55 Km) Indira Sagar Project (Polavaram) Right Main Canal Package-I Indira Sagar Project (Polavaram) Left Main Canal Package-II Porbandar - Bhiladi Highway on NH-8B, Gujarat Package-I Dhapewada Barrage Digras Barrage Babhali Barrage Bhiladi - Jetpur Section - Pkg-II Bhosa-Khind Tunnel Parabati Head Race Tunnel Mongra Barrage Sipat STPP Stage-I Mongra Left Branch Canal Prakasha Barrage Gates
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Project
Phase
-
II
Hyderabad - Bangalore (170 Kms) MRTS Project Adilabad Expressway (55 kms) - BOT (Annuity) Panipat -Jalandhar Highway 6 Lanning (291.10 Kms)
Facilities offered by Soma -Working and living camps built with prefabricated structures. - Free accommodation and utilities - Subsidized Mess facilities with steam cooking. - Offices with VSAT & Broad band connectivity - Automated laundry services (currently at select sites) - Free travel within and across Project locations
Benefits offered at Soma o In addition to the statutory benefits, we offer o Competitive compensation package o Medical o Bonus o LTA o Gratuity o Project profitability linked incentives
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1. Are you satisfied with the basic pay offered to you?
S. No Response No of Respondents % of respondents
1 2 3 4 5
Strongly agree Agree Neutral Disagree Strongly disagree Total
14 17 2 2 0 35
40% 48.57% 5.71% 5.71% 0% 100%
50% 40% 30% 20% 10% 0%
40%
48.57%
5.71% 5.71%
0.00%
Strongly Agree
Neutral
Strongly Disagree
INTERPRETATION:
Based on the above research 40% of the employees were strongly agreed, 48.57% of the agreed. Only 5.71% Employees were not satisfied with the present basic pay.
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2. I am satisfied with the present promotion criteria.
S. No Response No of Respondents % of respondents
1 2 3 4 5
Strongly agree Agree Neutral Disagree Strongly disagree Total
12 14 6 3 0 35
34.29% 40% 17.14% 8.57% 0% 100%
40.00% 30.00% 20.00% 10.00% 0.00%
34.29%
40.00%
17.14% 8.57% 0.00%
Strongly Agree
Agree
Neutral Disagree Strongly Disagree
INTERPRETATION:
From the above table we come to know that present criteria satisfied strongly agreed by 34.29% of the employees and 40% of the employees are agreed and only8.57% of the employees were not agreed the present promotion criteria.
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3.My salary is purely based up on my qualifications and experience.
S. No Response No of Respondents % of respondents
1 2 3 4 5
Strongly agree Agree Neutral Disagree Strongly disagree Total
10 13 8 4 0 35
29.45% 37.14% 22.85% 11.42% 0% 100%
40.00% 29.45% 35.00% 30.00% 25.00% 20.00% 15.00% 10.00% 5.00% 0.00%
Strongly Agree
37.14% 22.85% 11.42% 0.00%
Neutral
Strongly Disagree
INTERPRETATION:
Above table reveals that 29.45% of the employees were strongly agreed that their salary is purely based on their qualification and experience and 37.14% employees are agreed only 11.42% of the employees are disagreed.
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4. Present wage structure of the company motivates the employees to perform the duties effectively and efficiency.
S. No Response No of Respondents % of respondents
1 2 3 4 5
Strongly agree Agree Neutral Disagree Strongly disagree
Total
10 15 6 4 0
35
28.57% 42.85% 17.14% 11.42% 0%
100%
50.00% 40.00% 28.57% 30.00% 20.00% 10.00% 0.00%
Strongly Agree
42.85% 17.14%
11.42%
0.00%
Agree
Neutral Disagree Strongly Disagree
INTERPRETATION:
Above table reveals that 28.57% of the employees were strongly agreed with the present wage structure of the company motivates the employees to perform effectively and efficiently. 42.85% are agreed and only 11.42% of the employees are disagreed with this.
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5. Wage / Salary influences as a motivating factor in human performance
S. No 1 2 3 4 5 Response Strongly agree Agree Neutral Disagree Strongly disagree Total No of Respondents 17 12 4 2 0 35 % of respondents 48.57% 34.28% 11.42% 5.71% 0% 100%
48.57%
50.00%
40.00% 30.00% 20.00% 10.00% 0.00%
Strongly Agree Neutral Strongly Disagree
34.28% 11.42%
5.71% 0.00%
INTERPRETATION
Above chat reveals that aim of the wage / salary influences the motivating factor in human performance48.57% of the employees are strongly agreed and 34.28% of the employees are agreed and 5.71% are disagreed.
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6.The company is giving more salaries than competitors.
S. No Response No of Respondents % of respondents
1 2 3 4 5
Strongly agree Agree Neutral Disagree Strongly disagree Total
10 15 6 4 0 35
28.58% 42.85% 17.15% 11.42% 0% 100%
50.00% 40.00% 28.58% 30.00% 20.00% 10.00% 0.00%
Strongly Agree
42.85% 17.15%
11.42% 0.00%
Agree
Neutral Disagree Strongly Disagree
INTERPRETATION:
Above table we come to know company is giving more salaries than the competitors strongly agreed by the 28.58% employees and 42.85% employees are agreed, only 11.42% employees are disagreed.
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7.The basic aim of wage administration is to attract, retain and motivate the employees
S. No Response No of Respondents % of respondents
1 2 3 4 5
Strongly agree Agree Neutral Disagree Strongly disagree Total
9 14 6 4 2 35
25.71% 40% 17.15% 11.42% 5.71% 100%
40.00% 25.71% 30.00% 20.00% 10.00% 0.00% Strongly Agree
INTERPRETATION:
40.00%
17.15% 11.42% 5.71%
Neutral
Strongly Disagree
In the above table we agree that the wage administration is to attract, retain and motivate the employees is strongly agreed by 25.71% of the employees and agreed by 40%, only 11.42% are disagreed and 5.71% are strongly disagreed.
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8.An effective wage administration should not have favoritism in its fixation S. No 1 2 3 4 5 Response Strongly agree Agree Neutral Disagree Strongly disagree Total No of Respondents 18 12 5 0 0 35 % of respondents 51.43% 34.28% 14.29% 0% 0% 100%
60.00% 50.00% 40.00% 30.00% 20.00% 10.00% 0.00%
51.43%
34.28% 14.29%
0.00% 0.00%
Strongly Agree
INTERPRETATION:
Neutral
Strongly Disagree
In the above table it was strongly agreed by 51.43% of the employees and 34.28% are agreed of the employees, by this we came to know that a wage administration should not have favoritism
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9.The production has increased after wage settlement S. No 1 2 3 4 5 Response Strongly agree Agree Neutral Disagree Strongly disagree Total No of Respondents 6 21 5 3 0 35 % of respondents 17.14% 60% 14.29% 8.57% 0% 100%
70.00% 60.00% 50.00% 40.00% 30.00% 17.14% 20.00% 10.00% 0.00%
Strongly Agree
60.00%
14.29% 8.57% 0.00%
Neutral
Strongly Disagree
INTERPRETATION:
From the above table we came to know that production has increased after wage settlement is strongly agreed by 17.34% and was agreed by 60% of the employees, only 8.57% are disagreed with this.
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10.Medical facilities offered by this company are appreciable S. No 1 2 3 4 5 Response Strongly agree Agree Neutral Disagree Strongly disagree Total No of Respondents 13 18 0 3 1 35 % of respondents 37.14% 51.42% 0% 8.58% 2.86% 100%
60.00% 50.00% 37.14% 40.00% 30.00% 20.00% 10.00% 0.00%
51.42%
8.58% 0.00%
2.86%
Strongly Agree Neutral DisagreeStrongly Agree Disagree
INTERPRETATION:
Above table reveals that medical facilities offered by the company are appreciable is strongly agreed by the 37.14% and agreed by the 51.42%% of the employees and 8.58% of the employees are disagree and only 2.86% were strongly disagreed.
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11.The company undergoes good health management programs. S. No 1 2 3 4 5 Response Strongly agree Agree Neutral Disagree Strongly disagree Total No of Respondents 15 11 5 4 0 35 % of respondents 42.85% 31.42% 14.29% 11.43% 0% 100%
50.00% 42.85% 40.00% 30.00% 31.42%
20.00%
10.00% 0.00%
Strongly Agree Agree
14.29% 11.43% 0.00%
Neutral Disagree Strongly Disagree
INTERPRETATION:
Company under goes good health management program is strongly agreed by the 42.85% of the employees and 31.42%were agreed and 11.43%% were disagreed there for there in an improvement in the health management program.
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12.External health facilities (health card) provided by the company. S. No 1 2 3 4 5 Response Strongly agree Agree Neutral Disagree Strongly disagree Total No of Respondents 13 16 6 0 0 35 % of respondents 37.14% 45.71% 17.15% 0% 0% 100%
45.71% 50.00% 37.14% 40.00% 30.00% 20.00% 10.00% 0.00%
Strongly Agree Agree Neutral Disagree Strongly Disagree
17.15%
0.00% 0.00%
INTERPRETATION:
In the above table 37.14% of the employees were strongly agreed and 45.71% were agreed with this, almost all the employees are favorer about this.
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13. Good canteen facilities are provided in this company S. No 1 2 3 4 5 Response Strongly agree Agree Neutral Disagree Strongly disagree Total No of Respondents 13 16 4 2 0 35 % of respondents 37.14% 45.71% 11.43% 5.72% 0% 100%
45.71% 50.00% 37.14% 40.00% 30.00% 11.43%
20.00%
10.00% 0.00%
Strongly Agree Agree
5.72%
0.00%
Neutral
Disagree Strongly Disagree
INTERPRETATION:
From the above table we come to know that the canteen facilities are provided in this company are strongly agreed by 37.14% and agreed by 45.71% of the employees, only 5.72% were disagreed with this.
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14.The company offers good incentive schemes. S. No 1 2 3 4 5 Response Strongly agree Agree Neutral Disagree Strongly disagree Total No of Respondents 14 15 4 2 0 35 % of respondents 40% 42.85% 11.43% 5.72% 0% 100%
50.00% 40.00% 40.00% 30.00% 20.00% 10.00% 0.00%
Strongly Agree
42.85%
11.43%
5.72%
0.00%
Agree
Neutral
Disagree Strongly Disagree
INTERPRETATION:
From the above table we come to know that company incentive schemes are strongly agreed by the 40% and agreed by the 42.85% of the employees, only 5.72% of the employees were disagreed with the present incentive system.
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15.Incentive scheme is up to your expected level? S. No 1 2 3 4 5 Response Strongly agree Agree Neutral Disagree Strongly disagree Total No of Respondents 10 14 7 3 1 35 % of respondents 28.57% 40% 20% 8.57% 2.86% 100%
40.00% 40.00% 35.00% 30.00% 25.00% 20.00% 15.00% 10.00% 5.00% 0.00% 28.57% 20.00% 8.57% 2.86%
Strongly Agree
Agree
Neutral
Disagree Strongly Disagree
INTERPRETATION:
Incentive scheme is up to employees expected level is strongly agreed by 28.57% of the employees and agreed by 40% of the employees, 8.57% of the employees were disagreed and only 2.86% of the employees were strongly disagreed with the present inventive scheme.
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16. Introduction of group working skills in various department and section is appreciable S. No 1 2 3 4 5 Response Strongly agree Agree Neutral Disagree Strongly disagree Total No of Respondents 8 20 4 2 1 35 % of respondents 28.57% 40% 20% 8.57% 2.86% 100%
40.00% 40.00% 28.57% 35.00% 30.00% 25.00% 20.00% 15.00% 10.00% 5.00% 0.00%
Strongly Agree Agree
20.00% 8.57% 2.86%
Neutral
Disagree Strongly Disagree
INTERPRETATION:
From the above table we come to know that the introduction of group working skills in various department are strongly agreed with this were 28.57% and 40% were agreed, 8.57% of the employees were disagreed and only 2.86% of the employees were strongly disagreed wit this. 54
Findings
? Many of the employees are satisfied with their present compensation package offered in the organization ? The basic pay offered by the company is satisfied by many of employees only few employees are not satisfied ? Maximum employees are satisfied with their Incentives offered by the organization. ? ? Company is giving more salaries than the competitors. Present promotion criteria in the organization are satisfied by the employees, only few employees are not satisfied. ? Employee‘s salaries are purely on their qualification and experience
? .Maximum employees are strongly agreed that wage administration should not
have favoritism in its fixation.
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Limitations
? ? The study is restricted to the Reliance Money Lt, Hyderabad. Hence the findings and the conclusions drawn therein cannot be expected to be same at the other branches ? .Therefore the above limitations have to be taken into account while considering the findings of the study for the policy decision in other word, the information brought out in the present study is only indicative and might not hold true for the entire population.
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Based on the analysis of date in the previous chapter, an attempt is made to draw certain conclusions and few suggestions are put forward in this chapter.
Suggestions
All employees are desired to improvement in the pay structure due to increase in the cost of living in the society. There is an improvement in the good health management programs. And external health facilities (health card) by the company. Development of group working skills in various department and section. Annual benefits which are provided by the organization must be increased. Many of the employees has satisfied with the present promotion criteria satisfied strongly agreed by 34.29% of the employees and 40% of the employees are agreed and only8.57% of the employees were not agreed the present promotion criteria. Comparing to other organization, this organization is providing more allowances to the employees. Every year company is giving sum amount of lump sum amount as bonus.
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Conclusion:
The wage package is most important to an individual worker because his / her standard of living and that of their family depends upon their earnings. It is also important to an employer as it constitutes of the principal items that enter into his cost production. The government and the community at large are vitally interested in wages levels because of large number of industrial disputes and work stoppages revolving around the question of wages, bonus and allowances. Government is also concerned with wage standards. Which affect the social climate of the country as well as such important parts of the economy as employment, prices and inflation, national productivity and the ability of the country to export enough goods to pay for its imports and so keep its international receipts and payments in balance.
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BIBLIOGRAPHY
PERSONAL MANAGEMENT BY C.B.MEMORIA HUMAN RESOURCE MANAGEMENT BY P.SUBBA RAO HUMAN RESOURCE MANAGEMENT BY BISWAJEET PATTANAYAK.
WEBSITES REFERRED
www.citehr.com www.linkhr.com www.dietrichsurveys.com www.allbusiness.com www.web.absochot.com www.hrcompensation.com
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QUESTIONNAIRE:
Questions
1. Are you satisfied with the basic pay offered to you? A. Strongly agree B. Agree C. Neutral D. Disagree E. Strongly Disagree 2. I am satisfied with the present promotion criteria. A. Strongly agree B. Agree C. Neutral D. Disagree E. Strongly Disagree
3. My salary is purely based up on my qualification and experience.
A. Strongly agree B. Agree C. Neutral D. Disagree E. Strongly Disagree
4. Present wage structure of the company motivates the employees to perform the duties effectively and efficiently.
A. Strongly agree B. Agree C. Neutral D. Disagree E. Strongly Disagree
5. Wage/salary influences as a motivating factor in human performance.
A. Strongly agree B. Agree C. Neutral D. Disagree E. Strongly Disagree
6. The company is giving more salaries than competitors.
A. Strongly agree B. Agree C. Neutral D. Disagree E. Strongly Disagree
7. The basic aim of wage administration is to attract, retain and motivate the employee.
A. Strongly agree B. Agree C. Neutral D. Disagree E. Strongly Disagree
8. An effective wage administration should not have favoritism in its fixation.
A. Strongly agree B. Agree C. Neutral D. Disagree E. Strongly Disagree
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9. The production has increased after wage settlement.
A. Strongly agree B. Agree C. Neutral D. Disagree E. Strongly Disagree
10. Medical facilities offered by this company are applicable.
A. Strongly agree B. Agree C. Neutral D. Disagree E. Strongly Disagree
11. The company undergoes good health management programs.
A. Strongly agree B. Agree C. Neutral D. Disagree E. Strongly Disagree
12. External health facilities (health card) provided by the company.
A. Strongly agree B. Agree C. Neutral D. Disagree E. Strongly Disagree
13. The company offers good incentive schemes.
A. Strongly agree B. Agree C. Neutral D. Disagree E. Strongly Disagree
14. Good canteen facilities are provided in this company
A. Strongly agree B. Agree C. Neutral D. Disagree E. Strongly Disagree
15. Incentive scheme is up to your expected levels?
A. Strongly agree B. Agree C. Neutral D. Disagree E. Strongly Disagree
16. Introduction of group working skills in various departments and section is appreciable.
A. Strongly agree B. Agree C. Neutral D. Disagree E. Strongly Disagree
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