0601088 wage and salary administration

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0601088 wage and salary administration

  1. 1. 1 Topic – Wage and Salary Administration Name – Gandhare Mayur Course - MBA
  2. 2. 2 EXECUTIVE SUMMARY The history of media in India is colored by the colonial experience. William Bolts, an ex- employee of the British East India Company attempted to start the first newspaper in India in 1776. Bolts had to beat a retreat under the disapproving gaze of the Court of Directors of the Company. Although the first printing press was imported into Bombay as early as 1670 by the Parsi businessman Bhimjee Parikh, it was more than a hundred years before the first newspaper was printed. The first vernacular newspaper in Bombay was the Gujarati daily Mumbai Samachar, published in 1822 by Fardoonjee Marzban. The promoter of Business is Late V. R. Kothari. He started this Newspaper in 1931for the social purpose. In that period India is under the rule of British Government and in that period also people need the newspaper for expressing his feeling towards British Government. It is my pleasure thatI was given opportunity to do project on Wage and Salary Administration in Daily Prabhat &Poona Daily News Pvt.Ltd. . It was to get the view of the staff members about the wage structure of the company. My project started with the study of some books relating to the topic and I observe the problem of the employees about it.
  3. 3. 3 There is always a scope to study the wage and salary structures of the entire organization and bifurcations of all the levels of organization. It also deals and designs the updations of wage and salary with current government scenario. In this project, I studied about the present salary composition of Daily Prabhat &Poona Daily News Pvt.Ltd. along with the evaluation of incentives, bonus, and allowances given to the employees. After analyzing the data and interviewing the employees its found that the wage and salary administration of the company was satisfactory.
  4. 4. 4 COMPANY PROFILE
  5. 5. 5 The Business organization is a Pvt. Ltd. Co. Mr. Anand Ashok Gandhi is a Managing Director of the Daily Prabhat & Poona Daily News Pvt. Ltd. Co. The Newspaper had started in the year of 1931. The nature of business firm is mainly a printing and publishing of newspaper. The Newspaper is one of the type of media. There are many types of media such as audio, visual, printing media etc. The newspaper is a type of printing media. The newspaper is a effective media of expressing the peoples opinion in the country like India. People have a very useful weapon of newspaper for expressing his feelings towards government, organizations etc. Because of this purpose the Late Mr. V.R.Kothari started a newspaper in 1931. In that period India is under the rule of British Government and in that period also people need the newspaper for expressing his feeling towards British Government. The promoter of Business is Late V. R. Kothari. He started this Newspaper in 1931for the social purpose. Late Mr. V.R.Kothari is a teacher of Sanskrit. And in the name of him Daily Prabhat &Poona Daily News Pvt.Ltd give a price to the student who scores a highest mark in Sanskrit in Maharashtra state of secondary examination i.e. in S.S.C examination. The Daily Prabhat was one of the old newspaper in Pune at that time. And from the time started the newspaper the paper maintains the quality and is one of the successful newspaper in Marathi language in Pune city as well as in rural area. The newspaper has won the The Manisana (Wage Board Award has accepted by Govt. by notified date 5 Dec. 2000
  6. 6. 6 The yearly approximate turnover of Daily Prabhat &Poona Daily News Pvt.Ltd is in Rs.50000000 How the printing done at Prabhat ? The Editorial Process The process of producing a daily edition of a Daily Prabhat newspaper begins with a meeting of the paper's editors, who determine the amount of editorial copy in an issue based on the advertising space that has already been sold. A specific number of pages is agreed upon, and the editorial assignments are made to the various departments. The section of national and international news, generally the first part of the paper, is compiled from correspondents who send in their stories electronically, usually via computer modern, to their editor's computer. There, the editor checks the stories, sometimes rewriting them or increasing or decreasing their length. Additional stories of importance are compiled from wire services such as United Press International, Associated Press, and Reuters. These are organizations that employ reporters in various cities of the globe to Compile stories and items quickly for dissemination over telephone wires. For a typical, news breaking story of local origin, the process begins with a Correspondent submitting a report, either in person or via computer modern, to the "rewrite" desk person. The rewrite journalist fine-tunes the wording of the story and makes sure it answers the six important questions: who, what, where,
  7. 7. 7 when, why, and how. He or she then sends it over to the computer at the city desk. The city desk editor, who is responsible for the paper's local content, looks over the story, makes additional changes if necessary, and sends it over to the news desk. The news editor, who makes the final call about which stories to run in the upcoming edition based on their relevance, may make further changes before submitting the piece to the copydesk. The story arrives there with guidelines for length as well as headline instructions regarding size and type. From this point, the story is set to be inserted on a certain page that has already been roughly laid out by both the news editor and a makeup editor. A mock-up of the page, essentially a blank form showing where the stories will run and where pictures and advertising will be inserted, is called the "dummy." The makeup editor has already met with the advertising department to determine how such pages will be laid out with ad space. The dummy has rough notes for headlines, story insertions, and graphic elements such as photos and tables of statistics. It also shows the date of the edition as well as a page and section number. After the news editor has determined the placement of the story on the page in as well as the other items set to run the dummy is sent on to a composing room.
  8. 8. 8 The Manufacturing Process Typesetting The composing room receives the story in an electronic format, with the computer text file already translated with typeset codes. In a typeset file, the characters are of the same style, size, and width as they appear on the pages of the newspaper. The setting of stories into the type that a reader sees went unchanged for several decades until the latter years of the 20th century. Well into the 1800s, type was set by hand, letter by letter. A typesetter dropped small metal letters into a hand-held tray called a "stick." The invention of the Linotype machine in 1884 made possible a quicker, more efficient method of typesetting. Invented by German immigrant Ottmar Mergenthaler of Baltimore, Maryland, this large, cumbersome machine worked by casting hot lead into a line of type with the assistance of an operator who typed in the copy on a keyboard. Individual lines of type were then placed by hand onto a page form. When a page was completed, it was then sent to a stereotyping room where a curved metal plate was made from the page form. The page form was then placed on the printing press. Modern technology has replaced the Linotype process through a method called phototypesetting. The first step in this process is the transfer of the dummy to the page layout section of the newspaper. There, an operator transfers the instructions on the dummy into a rough page prototype. A printed version may be looked over and adjusted several times by one of the reporters whose story
  9. 9. 9 is featured as well as by the copy editor. If another breaking story comes in, this page layout can be altered in a matter of minutes. Image transference The final version of the page is then approved by the editor on duty—sometimes a night editor in the case of a paper that is slated for a morning edition—and sent over to a process department. There, the page is taken in its computer format and transferred via laser beams onto film in an image setter apparatus. The operator then takes the film to a processor in another section of the paper, who develops it and adjusts it for its final look. Photographs are scanned into another computer terminal and inserted into the page layout. The pages that are set to be printed together are then taped down onto a device called a "stripper," and an editor checks them over once more for errors. The strippers are then put into frames on light-sensitive film, and the image of each page is burned onto the film. The film of each page is inserted into a laser reader, a large facsimile machine that scans the page and digitally transfers the images to the printing center of the newspaper. At the printing center, typically a large plant separate from the newspaper's editorial offices and centrally located to facilitate citywide distribution, the pages arrive at the laser room and are put through a laser writer, another scanning device that makes a negative image of them. In the negative image of the page, the text is white while the blank spaces are black. The final images of each page are further adjusted. This last-minute adjustment may involve
  10. 10. 10 fine-tuning of the colored sections and retouching photographs. Platemaking From these negatives, the forms from which the paper will be printed are composed in a platemaking room. The film of the page, usually done two pages at a time, is then placed on a lighted box. Next, an aluminum plate containing a light-sensitive coating is placed on top of the image of the pages. The light box is then switched on, and ultraviolet light develops the image of the pages onto the aluminum plate. The aluminum plate is then bent at the edges so that it will fit into a press, and is fitted onto plate cylinders. Printing The aluminum plates of each page next move on to the actual printing press, an enormous machine often two stories high. When the press is running, the noise in the building is deafening and employees must wear earplugs. The most common method of printing newspapers is called web offset. The "web" refers to the large sheets of blank newsprint that are inserted in rolls, sometimes weighing over a ton, into the actual printing press. The reels of newsprint are loaded in at the bottom floor of the press. The rolls are inserted onto a reel stand, which has three components: the first reel brings a roll of paper up to the press, a second is loaded and ready to replace the first roll when it runs out, and a third reel stays empty and ready to be fed with another when the first reel is almost finished. Each roll of blank newsprint has double-sided tape at its edges, so that when one roll runs out in the press, another
  11. 11. 11 smoothly takes up where the other left off without interrupting the printing process. The plate cylinders then press the image of the page onto a blanket cylinder, leaving a version of the page's image on the cylinder's soft material. When the paper runs through the press, the blanket cylinder presses the image onto it. The chemical reaction of the ink, which contains oil, and the squirting of jets of water into the process result in the actual newspaper page of black or colored images on a white back-ground. Since oil and water do not mix, the areas where ink should adhere to the page are black or colored, and water washes away the parts where ink is not needed. This is why this printing process is referred to as "offset." Next, the large sheets of printed newsprint move on to another large piece of machinery called a folder. There, the pages are cut individually and folded in order. This entire printing process can move as fast as 60,000 copies per hour. Quality control technicians and supervisors take random copies and scan them for printing malfunctions in color, order, and readability. Next, a conveyer belt moves the papers into a mail room section of the plant, where they are stacked into quires, or bundles of 24. The quires then move to another section where a machine wraps them in plastic. The bundles are now ready to be loaded onto delivery trucks for distribution.
  12. 12. 12 Head Office : All types of administrative work are done here. The departments under the Head Office of Daily Prabhat are below: Human Resources Department (HRD): The Human Resource Department is basically responsible for caring out overall personnel management related activities of the company within the scope of personnel policies, administrative procedures and coordination with the management. Public Relations Department (PRD): It is involved to circulate the different financial statements, activities. They also publish half yearly magazine known as Delta Barta , produce yearly calendar, diary, and greeting cards. They advertise company s employment notice subject to the requirements of the HRD. MD s Secretariat: This department arranges appointment of the delegates and the higher officials with Managing Director of the company. Control and Compliance (C & C): They verify the bills of TA/DA and check the salary of the employee. Internal Audit: They visit different offices in order to verify the statements made by the department. If any irregularity is found then they request the concern department for necessary actions to correct the error. Establishment:
  13. 13. 13 They look after all visible assets (excluding depositing money) of the company, purchase all stationary and hardware, computer accessories, maintenance of the existing assets. Accounts: They prepare financial statements, annual reports, budget, book keeping of the company. They are accountable for the over all financial functions of the Legal: This department handles all the legal aspects of the company. Training Department: They arrange on-the-job training and also arrange long-term training program for the newly recruited executives and the marketing people. There is a separate building newly constructed at Pune only for training and development purpose named as Training Institute which will conduct only the short-term and long-term training programs and courses. Servicing Department: This department Issues money receipt Informs the ad agencies advocates about the date of deposit the money by sending letters. Accounts Department: It plays a vital role for the efficient use of the finance of the company. It is responsible for all payments and transactions of the company. Daily Prabhat has efficient and qualified team for maintaining its accounts.
  14. 14. 14 The Accounts Department (OL) is basically divided into 7 working wings with specific functions, duties and responsibilities. The personnel attached to each section are responsible for work as specified below and they are reporting to their Line Manager or Supervisor. The wings are 1. Collection, Deposit and Payment Wing 2. Final Account, Budget and MIS Wing 3. Claim, and Loan Wing 4. Daily Collection Sheet (DCS) Processing Wing 5. Daily Expense Sheet (DES) Processing Wing 6. Bank Memo (BM) Process Wing 7. Computer Wing The advertising content of a newspaper can be divided into two parts, classified and display. Classified ads are small, text-only items obtained via telephone and set into the format by the classified advertising representative. Display ads are obtained by sales representatives employed by the newspaper who actively solicit local businesses for this larger, more visually oriented ad space. A newspaper is printed on thin paper made from a combination of recycled matter and wood pulp, and is not intended to last very long. Large printing presses, usually located at a plant separate from the editorial and advertising headquarters, print the editions, and a network of delivery trucks bring them to the newsstands and geographical distribution centers for subscribers. A newspaper is a publication containing news and information and advertising,
  15. 15. 15 usually printed on low-cost paper called newsprint. It may be general or special interest, most often published daily or weekly. The first printed newspaper was published in 1605, and the form has thrived even in the face of competition from technologies such as radio, television, and the internet. Recent developments on the internet are posing major challenges to its business model, however. Paid circulation is declining in most countries, and advertising revenue, which makes up the bulk of a newspaper’s income, is shifting from print to online, resulting in a general decline in newspaper profits. This has led to some predictions that newspapers’ role in society will shrink or even disappear, although historically, new media technologies such as radio and television never supplanted print media. Content General-interest newspapers are usually journals of current news. Those can include political events, crime, business, culture, sports, and opinions (either editorials, columns, or political cartoons). Newspapers use photographs to illustrate stories; they use editorial cartoonists, usually to illustrate writing that is opinion, rather than news.
  16. 16. 16 Some specific features a newspaper may include are: weather news and forecasts an advice column critic reviews of movies, plays, restaurants, etc. editorial opinions a gossip column comic strips and other entertainment, such as crosswords, sudoku and horoscopes a sports column or section a humor column or section a food column
  17. 17. 17 VISION The company will serve their customers with respect and will provide the best solution for their needs. It will be a company with qualified professionals who will work together as a team and serve with dignity and the highest level of integrity. It believes in excellence and will continuously improve its customer service and will obtain the loyalty of its customers with service beyond their expectations. Adding Value will be the operative words of the organization. Values - TRUEST Team work Respect for all people Unquestionable integrity Excellence in everything they do Speed in servicing Truthfulness
  18. 18. 18 Advertising Newspaper make nearly all their money from advertising; the income from the customer’s payment at the news-stand is small in comparison. For that reason, newspapers are inexpensive to buy, and some are free. The portion of the newspaper that is not advertising is called editorial content, editorial matter, or simply editorial, although the last term is also used to refer specifically to those articles in which the newspaper and its guest writers express their opinions. In recent years, the advertorial emerged. Advertorials are most commonly recognized as an opinion-editorial which third-parties pay a fee to have included in the paper. Advertorials commonly advertise new products or techniques, such as a new design for golf equipment, a new form of laser surgery, or weight-loss drugs. The tone is usually closer to that of a press release than of an objective news story. Publishers of Newspaper strive for higher circulation, so that advertising in their newspaper becomes more effective, allowing the newspaper to attract more advertisers and to charge more for the service. But some advertising sales also market demographics: some newspapers might sacrifice higher circulation numbers in favor of an audience with a higher income. Many paid-for newspapers offer a variety of subscription plans. For example,
  19. 19. 19 someone might want only a Sunday paper, or perhaps only Sunday and Saturday, or maybe only a workweek subscription, or perhaps a daily subscription. Some newspapers provide some or all of their content on the internet, either at no cost or for a fee. In some cases, free access is available only for a matter of days or weeks, after which readers must register and provide personal data. In other cases, free archives are provided.
  20. 20. 20 Theoretical Background Introduction to Salary Administration Wage and Salary Administration is an important part of Personnel Management. Personal Management deals with wages and salaries. A company has specific wage policies which are translated into action through a number of programms. It includes such areas as job evaluation, surveys of wages and salaries, analysis or relevant organizationa problems, development and maintenance of wage structure, establishing ruses for administering wages, wage payments, incentives, profit sharing, wage changes and adjustments, supplementary patments control of compensation costs and other related items. What is Salary? The Roman word salarium linked employment, salt and soldiers, accepting salt from a person was synonymous with drawing sustenance, taking pay, or being in that person's service. Soldiers were known to have been paid, and maintain instead that the salarium was an allowance for the purchase of salt At that time salt production was strictly controlled by the monarchy or ruling elite. Today, the idea of a salary continues to evolve as part of a system of all the combined rewards that employers offer to employees. Salary (also now known as fixed pay) is coming to be seen as part of a "total rewards" system which includes variable pay (such as bonuses, incentive pay, and commissions), benefits and perquisites (or perks), and various other tools which help employers link rewards to an employee's measured performance.
  21. 21. 21 A salary is a form of periodic payment from an employer to an employee, which is specified in an employment contract. From the point of view of running a business, salary can also be viewed as the cost of acquiring human resources for running operations, and is then termed personnel expense or salary expense. In accounting, salaries are recorded in payroll accounts. Salary is compensation to an employee for services rendered on a weekly, monthly or annual basis. Salary is usually associated with office employees, supervisors, managers and professional and technical staff. In any organization, salaries and wages constitute a significant portion of the cost of operation of the business. Salary Policy Formulation of a sound salary policy is an important function of personnel department of any company. A sound salary policy is essential to procure, maintain and develop employees and to get effective results from them. In the word of Northcott, Wages operate both on the circumference and at the centre of industrial relations . An effective salary policy helps - in achieving and maintaining good industrial relations - to attract staff of the right caliber and encourage to make full use of their abilities and develop their potential - to convince its employees that its policy on salary is fair and realistic - to reward staff according to their contribution - in recruiting new employees in times of labor shortage - to cover specific personnel matters such as promotion, transfer, up gradation etc.
  22. 22. 22 OBJECTIVES OF PROJECT
  23. 23. 23 The project report is prepared as a part of practical work personally carried out by me during a visit to Daily Prabhat &Poona Daily News Pvt.Ltd. This is done during 2nd year on Masters degree in Business Administration. The purpose of the study is to know the current wage and salary administration offered to the employees of Daily Prabhat &Poona Daily News Pvt.Ltd. and to identity the remuneration needs of all personnel in this establishment and the wage structure in such way that the works of the who want there achieves should appropriate and value their independence. Primary Objective 1.To study the salary administration in Daily Prabhat &Poona Daily News Pvt.Ltd. 2.To analyse the pay scale and fixation of basic salary in Daily Prabhat &Poona Daily News Pvt.Ltd. 3. To know the effectiveness of various labour facilities. 4.To know the effect it has on employer and employee relationship. Secondary Objective 1.To study the performance appraisal procedure & its implications on promotion, increment & other benefits in Daily Prabhat &Poona Daily News Pvt.Ltd. 2.To understand the calculation of incentives, bonus, allowances, provident fund, gratuity, income tax in Daily Prabhat &Poona Daily News Pvt.Ltd.
  24. 24. 24 RESEARCH METHODOLOGY
  25. 25. 25 Introduction Research is an art of scientific investigation through search of new facts in any branch of knowledge. It is movement from unknown to known. The study of research methodology gives the student the necessary training in gathering materials required, and also training in technique for the collection of data appropriate to particular problem. It helps in the use of statistics, questionnaire and controlled experimentation and in recording evidences, sorting it out and interpreting it. Knowledge of research methodology is helpful in various fields. Research methodology plays key role in project work. It consists of series of actions or steps necessary to effectively carry out research and the desired sequencing of these steps: Basic features of a research process are : Research always start with a question or a problem. It s purpose is to find answers to questions through the application of scientific method. It is a systematic and intensive study directed towards a more complete knowledge of the subject studied.
  26. 26. 26 Methods Of Data Collection Data collection is an elaborate process in which the researcher makes a planned search for all relevant data and is the foundation of all researches. It is the raw material with which a researcher functions. The task of data collection begins after a research problem has been defined and research plan is chalked out. While deciding about the method of data collection to be used for the study the researcher should keep in mind two types of data viz., primary data and secondary data. In order to carry out the project work, both the methods were used . Primary data was collected through questionnaire form, observation method and interview. Whereras secondary data was gathered by referring the official documents, files, books, literature etc. Sources Of Data A. Secondary data Secondary data is the data already collected by others for purposes other than solution of the problem at hand. In case of Secondary data the nature of data collection work is merely that of compilation. Secondary data has several supplementary uses. 1. Internal sources Company Records. Service Reports.
  27. 27. 27 Annual Report. Company Brochure. Company Library. 2. External sources Journals. Reference Books. Magazines. Newspapers. B. Primary data The data that is being collected for the first time or to particularly fulfill the objectives of the project is known as primary data. In my study work, interpersonal interview was the method of data Collection. The most effective form of collecting the date for project was the questionnaire form. A questionnaire was prepared in a series covering the matter required for the purpose of study. A sample size of 20 employees was selected from different departments and the questionnaire was handed over to them. The feedback was taken from the employees in the answer form. Then the data collected from the feedback was sorted and analysed in order to carry out the further study.
  28. 28. 28 From the feedback the similar responses were grouped together. These groups were then represented in graphical form covering the overall information needed from the employees. Data Evaluation All the data and information collected from the secondary sources and company officials was filtered & only relevant data is introduced in the report which helped in achieving objective of the project. This relevant data is finally evaluated to make the final report and to draw the conclusion.
  29. 29. 29 Questionnaire 1. Wheather employees have knowledge about rules and regulation of the company? 2. Wheather employees are satisfied with their wages and salary? 3. Does the management handle your problem related to payment and allowance? 4. Do you feel wage & salary which you receive as per agreement entered with you? 5. Did you ever complained for unauthorized deduction to the management? 6. In the period when the company is facing crisis will you accept salary/wages reduction for that period? 7. allowances in your views should be given to the current allowances scheme? 8. Do you get any financial assistance apart from the allowances? 9. While availing the facilities do you face any problem?
  30. 30. 30 WAGE AND SALARY ADMINISTRATION IN DAILY PRABHT AND POONA DAILY NEWS PVT,LTD. Salary refers to the monetary payment on a monthly or annual basis. Wages are the remuneration paid by the employer for the service of a worker who is engaged by the hour, days, week or fortnight. Wages are payments to hourly-rated production and maintenance employee. 14 Compensation refers to all forms of financial returns, tangible services and benefits employees receive as a part of an employment relationship. Compensation may be received directly in the form of cash (wage, bonus, incentives) or indirectly through services and benefits (pensions, health insurance, vacations). Salary administration refers to the establishment and implementation of sound policies and practices of employee s compensation. The salary administration is thus concerned with the monetary or financial aspects of needs, motivation rewards. The responsibility for salary administration usually lies with the top management. DAILY PRABHT AND POONA DAILY NEWS PVT,LTD follows the computerised system of time keeping . with regard to late coming of every employee or worker is concern, the late attendence upto 10 minutes for three occasions in a month is allowed. Upto 3 times the attendance in a month is not affected for their wages or salaries.
  31. 31. 31 In DAILY PRABHT AND POONA DAILY NEWS PVT,LTD. There are 100 employees. The department is usually and effectively hauling this strength. As it is a newspaper firm the working is done of 24 hrs. but generally office working time is 10.00a.m. to 6.00p.m. But in the night shift paper is printed so machine operators job is started at 11.30p.m. and ends at 6.30 a.m. Objectives of Salary Administration DAILY PRABHT AND POONA DAILY NEWS PVT,LTD 1. Control of cost. 2. Establishment of fair and equitable structure of remuneration 3. Utilization of wages and salaries as an incentive to greater employee productivity 4. Maintenance of a satisfactory public image 5. Determination of the system of job description and job evaluation 6. Decision of what and how people will be paid 7. Checking all activities of the salary administration group 8. To recommend changes in the salary policy and specific raises for executives at various levels 9. To review salary scheme 10. To attract and encourage staff to make full use of their abilities and develop their potential.
  32. 32. 32 DAILY PRABHT AND POONA DAILY NEWS PVT,LTD Tried to put the effective salary policy which helps - in achieving and maintaining good industrial relations - to attract staff of the right caliber and encourage to make full use of their abilities and develop their potential - to convince its employees that its policy on salary is fair and realistic - to reward staff according to their contribution - in recruiting new employees in times of labor shortage - to cover specific personnel matters such as promotion, transfer, up gradation etc. - to prevent moral dissatisfaction among employees with its levels of pay. FINANCIAL REMUNERATION Sr.no Remuneration Heading Components 1 Rates Wages and Salary Basic Payment Dearness Allowance House Rent Allowance 2 Incentives Attendance Bonus Over Time Conveyance House Keeping Allce. Group Bonus scheme 3 Fringe Benefits Gratuity, Provident Fund Pension Fund, Social
  33. 33. 33 Security Insurance, Travel Allowance Uniform Expenses, Awards Competitions etc. 4 Perquisites Medical Aid NON FINANCIAL REMUNERATION Job Context Recognition Promotion Increasing Authority 2 Non Job Context Education Allowance House Loans and other Loans Festival Advance Wage Advance Housing Facility ALLOWANCES IN DAILY PRABHT AND POONA DAILY NEWS PVT,LTD. The company has granted following allowances:
  34. 34. 34 The rule given by The Manisana (Wage Board Award has accepted by Govt. by notified date 5 Dec. 2000 House Rent Allowance: Rates of house rent allowance(% of basic pay per month) As the Manasa determines the rate for all newspaper establishment they are determined on the basis of major Metro cities in India and on the basis of population in cities. The zones are determined according to that Delhi,Mumbai,Kolkata,Chennai State capitals cities with population above 20 lakhs Cities with population bet’n 10 to 20 lakhs Cities with population less than 10 lakhs As the Daily Prabhat is cover under class IV the % of house rent allowance is 9% and as the branches of Daily Prabhat is in the 7 district in Maharashtra they are cover under cities under population less than 10 lakhs so there % is 5% City Compensatory Allowance: Rates of City compensatory allowance(% of basic pay per month)
  35. 35. 35 As the Manisana determines the rate for all newspaper establishment they are determined on the basis of major Metro cities in India and on the basis of population in cities. The zones are determined according to that Delhi,Mumbai,Kolkata,Chennai State capitals cities with population above 20 lakhs Cities with population bet’n 10 to 20 lakhs Cities with population less than 10 lakhs As the Daily Prabhat is cover under class IV the % of city compensatory allowance is Rs.100 and as the branches of Daily Prabhat is in the 7 district in Maharashtra they are cover under cities under population less than 10 lakhs so there % is Rs.40 Night Shift Alliowance: Rates of night shift allowance(% of basic pay per month) As the Manasa determines the rate for all newspaper establishment they are determined on the basis of major Metro cities in India and on the basis of population in cities. The zones are determined according to that Delhi,Mumbai,Kolkata,Chennai State capitals cities with population above 20 lakhs Cities with population bet’n 10 to 20 lakhs Cities with population less than 10 lakhs
  36. 36. 36 As the Daily Prabhat is cover under class IV the % of house rent allowance is Rs.20 and as the branches of Daily Prabhat is in the 7 district in Maharashtra. The rates would be higher by 38% for night shift duty performed in excess of 15 nights in months. Leave Travel Allowance:Rate of Leave travel allowance As the Maisana determines the rate for all newspaper establishment the rates is three week’s basic pay at the minimum of scale of pay. LTA would be admissible once in a block of two years. Grant of LTA is subject to availing of leave and production of necessary documents in proof of journey actually undertaken. Medical Allowance : It will be given Rs.150/- per month per employee. Rent House Allowance : Employees working in the company’s rest house and who are required to attend guest. When required shall be paid such type of allowance. Employees are given this allowance and rate/amount is decided by the management. Salary structure in Daily Prabhat and Poona Daily News Private Ltd. Basic wage means wages drawn in the prescribed scale of wages insluding stagnation increment if any but does not include any other type of wages or pay like special pay, personal pay. Gross revenue of a newspaper means revenue derived by the estableshment from all sources of
  37. 37. 37 its newspaper business, including circulation of and advertisement in its newspaper /s and also includes income from the assets acquired and investments made by it out of funds esrned in the newspaper business. Newspaper employee means working journalist or non-journalist newspaper employee or both. It shall be based on the average gross revenue of three accounting years . the different departments branches and centres of newspaper establishment shall be treated as parts thereof. Classes of newspaper establishment on the basis of their gross revenue Classs Gross revenue IB Rs. 600 crore and above IA Rs.225 crore and above but less than Rs. 600 crore; I Rs. 75 crore and above but less than Rs.225 crore; II Rs.25 crore and above but less than Rs.75 crore III Rs. 11 crore and above but less than Rs.25 crore IV Rs.5.5 crore and above but less than Rs.11 crore V Rs.2.5 crore and above but less than Rs.5.5 crore VI Rs.1.25 crore and above but less than Rs.2.5 crore VII Rs.50 lakh and above but less than Rs.1.25 crore VIII Rs.30 lakh and above but less than Rs.60 lakh IX less than Rs. 30 lakh
  38. 38. 38 The daily prabhat is classified under class IV. The rule given by The Manisana (Wage Board Award has accepted by Govt. by notified date 5 Dec. 2000 Dearness Allowance Basic Pay Slabs Rate of neutralization for determining D.A. payable over quarterly Upto Rs.5000 100% of basic pay Between Rs.5001 80% of basic pay or 1005 of Rs.5000 whichever is higher and Rs.7000 Between Rs.7001 70% of basic pay or 80% of Rs.7000 whichever is higher and Rs.9500 Between Rs.9501 60% of basic pay or 70% of Rs. 9500 whichever is higher and Rs.12500 Above Rs.12500 50% of basic pay or 60% of Rs. 12500 whichever is higher Fixation of initial wages in daily prabhat
  39. 39. 39 1 for the new entrant the wages shallbe fixed in the revised scale at the minimum of the scale. 2 In the case of employees already working in the establishment the wages shall be fixed in the revised scale at the stage next above. 3 Every employee shall be given one increment in the revised scale for completion of every four years service in the post held immediately before the date . 4 The service rendered by the concerned employee in any other post carrying a scale in that , the minimum of which is lower by not more than 30% of the minimum of the scale in which the employee worked shall also be taken into account. 5 The total no. of increments shall not be more than three. 6 No employee shall get more than maximum of the revised scale. Revised scale of wages for working journalist in different slasses of newspaper establishment is prescribed as per rule. Every part time correspondent/photographer shall be paid not less than 40% if he is posted at destrict head quarters and above and not less than 1/3rd if he is posted at place below district head quarters, of the basic pay plus DA applicable to full time correspondent at similar level. In a ddition payment shall be paid to him on column basis, the rate of which to be settled by mutual negotiations.
  40. 40. 40 Every time rated employee, that is to say a person employed to work as time rate employee for either less or more than prescribed working hours and performs the jobor does the duty of a regular employee, shall be paid on pro-rate basis equivalent to the wages of the regular employee on the basis number of hours for whilch he is employed. Dearness allowance may be sanctioned as soon as the figures for the quarter for which average regional index is to be used for determining rate of DA becomes available. DA will became payable from the beginning of the quarter immediately succeeding the quarter. House rent allowance where and employee is provided residential accommodation by newspaper establishment no house rent allowance will be payable. If an employee is being paid house rent allowance the same will be adjusted against the amount of house rent allowance payable under this provision. Where a newspaper edtablishment contributes on behalf of an employee any anount towards a fund to enable the employee to own his residential accommodation, such amount shall be adjusted against house rent allowance payable under this provision. City compensatory allowance shall be paid by newspaper edtablishment to their employees posted in their respective zones as stated above. Night shift allowance at the rates determined by the newspaper to their respective employees as stated above. Classification of newspaper establishments for the purpose of fixation or revision of rates of wages in respect of working journalist and non-journalist employee.
  41. 41. 41 Grouping of working journalists Group I - Editor Group IA - Executive Editor, Resident Editor,Associate Editor, Joint Editor, Associate Editor Group IB - news Editor, chief reporter, cartoonist, chief news photographer commercial,sports,film editor Group 2A – Deputy chief reporter or senior reporter, senior correspondent etc. Group 3 – reporter, news photographer,artist,chief proof reader Group 3A – Proof reader including Advt. proof reader and planner. Group 4 – all working journalists other than those mentioned under any other group unless placed higher by the establishment.
  42. 42. 42 Grouping of non-journalist employees in administrative staff Group 1 – General Manager, Manager and secretary. Group2 – Departmental Manager (those who are incharge of circulation, advertisement department, personnel, chief account. Group 2A- Liaison officer, accounts officer, chief internal auditor, ass. Managers of all department Group 3 – sectional head, sales representative, head cleark, computer programmer,personal secretary Group 4 – stenographer, accounts cleark, electronic data operator, cashier,translator,senior clearketc. Group 5 – junior cleark, time keeper, typist,telephone operator, receptionist,fireman cum security man. Group 7 – peon, sweeper, call-boy, tailor,durwan, canteen-boy.
  43. 43. 43 Grouping of factory staff Group I – A&B grade supervisor, operator, computer operator, offset printing ooperator, photo type setting operator, terminal operator. Group 1A – air condition mechanic, bromide paster,cameraman, colour etcher, colour paster, board operator, film impositor, micro film technician, plate maker,process developer, nylo plate maker,offset engineer Group 2 – all types of ass. Operators, Group 3 – air condition plant cleaner, caster, carpenter, router, colour proofing pressman, cutter,dark room assistant,driver,electrician, fitter,machineman,store mukadam, turner, wireman,welder,steroman Group 4 – ass. Operators of group 3. Group 5 – all other semi skilled attendants, Group 6 – baller, binding boy,reel loader and unloader, trolleyman.]
  44. 44. 44 As the daily prabhat is cover under class IV the increment in the salary as per the completion of service is given below. Working journalists Class of group of scale Years establishment employees Rs.5.50 crore & 1 No scale 20 above but less than Rs.11 crore 1A Rs.8535-215-10040-250-11790-295-13560 20 (7) (7) (6) 1B Rs.7315-185-8610-215-10115-255-11845 20 (7) (7) (6) 2 Rs.6845-170-8035-200-9435-235-10845 20 (7) (7) (6) 2A Rs.5470-135-8415-160-7535-190-8675 20 (7) (7) (6) 3 Rs.5305-135-6250-155-7335-185-8445 20 (7) (7) (6) 3A Rs.4395-110-5165-130-6075-150-6975 20 (7) (7) (6) 4 Rs.4075-100-4775-120-5615-140-6455 20 (7) (7) (6)
  45. 45. 45 Non working journalist(Administrative staff) Class of group of scale Years establishment employees Rs.5.50 crore & 1 No scale 20 above but less than Rs.11 crore 2 Rs.5815-175-7940-210-8510-255-10040 20 (7) (7) (6) 2A Rs.5350-160-8470-195-7835-235-9245 20 (7) (7) (6) 3 Rs.4500-135-5445-165-6600-200-7800 20 (7) (7) (6) 4 Rs.4335-130-5245-155-6330-190-7470 20 (7) (7) (6) 5 Rs.4005-120-4845-145-5860-175-6910 20 (7) (7) (6) 6 Rs.3825-115-4630-140-5615-170-6630 20 (7) (7) (6) 7 Rs.3560-105-4295-130-5205-155-613 20 (7) (7) (6)
  46. 46. 46 Factory staff Class of group of scale Years establishment employees Rs.5.50 crore & 1 Rs.4280-130-5190-155-6275-190-741520 20 above but less (7) (7) (6) than Rs.11 crore 1A Rs.4170-215-10040-250-11790-295-13560 20 (7) (7) (6) 2 Rs.4045-120-4885-145-5900-175-6950 20 (7) (7) (6) 3 Rs.3950-120-4790-145-5805-175-6855 20 (7) (7) (6) 4 Rs.3860-115-4665-140-5645-170-6665 20 (7) (7) (6) 5 Rs.3670-110-4440-135-5385-160-6345 20 (7) (7) (6) 6 Rs.3380-100-4080-120-4920-150-5820 20 (7) (7) (6)
  47. 47. 47 Personal Evaluation Procedure The objective of an employees work performance evaluation is to: - evaluate the employee s performance in relation to her/his hob description - enable the employee to assess his/her own work and suggest ideas for improvement - enable management to plan his/her career development and appropriate deployment on the basis of this assessment. Such assessment is normally done once in every year. This assessment/performance appraisal is regularly carried out for setting work standards, assessing the employee s actual performance relative to these standards and providing feedback to the employees with an aim of motivating that person to eliminate his performance deficiencies or to continue to perform above par. On every anniversary of confirmed appointment of an employee, he/she subject to satisfactory performance during the preceding year will receive an increment in the scale of his/her grade. If an employee shows outstanding merit and exceptional ability and quality, he/she may receive additional increments solely at the discretion of the management. Non-financial Incentives Non-financial incentives are given by the company for the welfare of the lower grade employees. Cleaner, Driver, Peon and Guard get non-financial incentives as their Uniform (company dress code) by the company. These four types of
  48. 48. 48 employees get 2 sets of uniforms yearly. The uniform set of male employee includes gray color shirt, gray pant and black shoe (given after every 4 years). Festival Bonus Every regular employee is entitled to receive annual festival bonus equivalent to two months basic salary. The bonus is paid in accordance with the religion of the respective employee. For Muslim employees the festival bonus is payable in two instalments (for Eid-ul-Fitra and Eid-ul-Azaha). For Hindus (Durga Puja), Diwali the festival bonus is paid in one instalment. A new employee who has worked at least 6 months with the company will be entitled to festival bonus. Consolidated employees (temporary & contract basis employees) will get 60% bonus of their consolidated salary. But they have to join the company at least before one month of the festival. Gratuity Gratuity is a lump sum payment made by employer as a mark of recognition of the service rendered by employee. Every employee is entitled to receive gratuity at the end of 3 years of continuous service up to a maximum of 15 years. Provident Fund (PF) Every regular employee is eligible to be a member Provident Fund to be administered in accordance with the relevant law. The membership will only have effect from the Date of Confirmation (DOC). The p.f. is deducted 12% of Rs.6500
  49. 49. 49 Bankers all payments of all employees has been given by cheque. The Bankers associated with Daily Prabhat where the employees of the company can open a salary account to encash the monthly salary are: Bhagini Nivedita Sahakari Bank Ltd.
  50. 50. 50 DAILY PRABHT AND POONA DAILY NEWS PVT,LTD. Gives the importance to proper wage system and they derive the proper way which is given below Achievement of common goals : The primary objective of Organisation is to achieve the goals related to organisation. For achieving any common goal group efforts are required. Concerned persons will take group efforts only if Management shows any interest in giving them equivalent returns. These returns will be to the satisfaction of concerned person only if those are designed, planned and managed i.e. those are systematically worked out or administered. Planning of funds : Organisation spends most of its funds for giving return to its employees. However, until there is some well-defined working of the concerned system everything becomes a mess. Wherever Systematic working is there, Administration will come into play. Evolving Control System : Control system plays a vital role in functioning of the Organisation. Administration is more of intellectual work. It is also top level function and hence is related to monitoring the functioning of various system. Thus, control and Administration go together. Rather admin without control system is of no use.
  51. 51. 51 Productivity improvement : Wage and Salary Administration relates to Administration of returns over individuals devotions towards job given to him. The concerned person will commit his work with more devotion if he is assured of equivalent and handsome return over his work. Such assurance is possible only on adoption of systematic and designed approach towards designing the wage structure is there. A well designed remuneration scheme eill always provide for employees to work hard. Rather a good remuneration scheme is always taking maximum efforts out of employee and giving them maximum returns. Exercising the managerial function : Management is the more of executioner function as compared to Administration, which involves more of intellectual work. Until and unless one designs policies, those can not be executed. Thus, Administration helps in preciding the managerial function. Fixing and revising Wage Structure : The wage structure existing in an industry can be fixed by adopting various methods of wage determination. Further, with periodic review one can also revise wage structures as and when it requires.
  52. 52. 52 Record Keeping : While fixing the wage rate one must consider the standard output time for its completion. Further every day performance of the concerned person should be monitored with reference to the standard set. Thus it involves time recording in itself. Relation of Labour Costing and Product Costing : The accurate and detailed information regarding the cost incurred against the labor is available only through proper administration of the Wage and Salary. Labor cost, whether direct or indirect forms the major portion of total cost of Production.
  53. 53. 53 DAILY PRABHT AND POONA DAILY NEWS PVT,LTD. Tried to implement the Good Wage System which are as follows The choice of a particular method depends upon general consideration such as the nature of the industry, prevailing economic condition, availability of the required type of labour and the standard of education and skill attained by workers. However a good wage system have the following features : Simplicity : It should be simple and capable of being understood by the workers, so that workers can make their own calculation. Also it should be easy to operate with minimum scripty work. Suitability : It should be suitable to industry time wage system is suitable where quality of work is important. Fair and Just : It should be just and fair to both the worker and employer. It should be based upon scientific time and motion study to ensure a standard output to the employer and a fair amount of wages to the workers. Guarantee of minimum wages : It should guarantee a minimum living wage to ensure a satisfactory standard of living. Linking with efficiency : There should be direct relations between reward and efforts, skill and responsibility. More the efforts and skill, higher should be the wages. Incentives offered : the incentives offered to workers should be such that the worders are encorraged to work more and more to get wages.
  54. 54. 54 Standard of performance : Any system of wages should set attainable objectives. This means the standard of performance fixed should be within the abilities of an average worker. Resembleness in particular locality : The system should keep in view the wage rate in the same area or industry. The method selected by and organization should be as far as possible in line with that of its competitors. It should not in no way be entirely different from that of industry of locality. Minimum Cost : The cost in terms of monet, clerical labour and time should be minimum in deciding any wage system. Quality should not be affected : The wage system should be such as “Beter wages for better quality”. Other wise in order to earn more and more wages, the workers may produce inferior quality goods. Worder’s morale : the system should be such which should boost the morale of the workers and should minimize labor turnover absenteeism and late attendance. Equal wages for equal work : The system should be such that the workers with equal efficiency get equal wages, otherwise there will be dissatisfacton among the workers. Permanent Wage system : It should not be changed frequently otherwise the workers will not trust the system.
  55. 55. 55 Changes in price should be considered : There should be an escalation clause providing for an automatic rise in wages as cost of living index increases. Within the framework of various laws : It should be in conformity of various labour laws and regulations both local and national. It should not violate any local or nationa trade unions agreements. Analysis of Data
  56. 56. 56 1. Employees knowledge about the rules created to wage and salary of the company. 2. Any sort of administration system is based on communication there must be communication between parties concerned with the portion who are related with the system. Normally whenever wage agreement is entered into, a copy of it is served to each of the employee in the organization to enable then to have knowledge about rules to wages and salary administration.
  57. 57. 57 Observation – In the company it was observed that staff level employees were having good knowledge of the rules related to wages and salary administration the outcome of question “ Do you have the knowledge of all rules & regulations of wages and salary was yes ‘15’ & No ‘5’. The basic reason behind it are as :- Good informal relations Management initiation to provide each individual copy of an agreement Individual attention to be on safer by having almost knowledge. 3. Satisfaction related to wages & salary. The most dominent issue in any organisation is the satisfaction of employees in the organisation. It seldomely happens that the individual is satisfied with his earnings. He requires more & more every time. Nobody is highly satisfied. Observation:- The scnario was not different. Out of 20 samples only 5 employees were satisfied with the current wage structure,another 5 employees were partly satisfied & remaining 10 were not at all satisfied. All most every person interviewed was stressing over the increment in basic & allowance.It means that
  58. 58. 58 the present structure is having some negative points which must be taken into considerations while having wages & salary policy. 4. Does the management handle your problem relating to payment or allowances :- If management handles the problems of employees relating to wages then will definitely work willingly & more productivity & their attitude towards the employer will charge & they realize that the management is interested in their problems. The response says out of 20 employees 14 are satisfied with the management to solve problems related to payment or allowances. To maintain good & harmonious relations with its employees and union. 5. Do you feel wage & salary which you receive as per agreement entered with you?
  59. 59. 59 20 employees have view that they are given per the agreements thus all the samples have no problem in payment of wages as per agreement.it signifies that company is keeping good follow up of its wages as per agreement, further minor things such as miscalculations, wrong accounting are adjusted in a proper way. 6. Did you ever complained for unauthorized deduction to the management? From the some takes I found that there is no practise or company doesn’t deduct any amount from the wages of an employees which is unauthorised & in this aspect all the employees have give positive response. 7. In the period when the company is facing crisis will you accept salary/wages reduction for that period?
  60. 60. 60 From the above response it seems that only 4 are in favour of salary reduction out of 20 in case of crisis.the employees are unable to show their gratitude towards their company. 8. Do you get any financial assistance apart from the allowances? The response got for the above question was very much in favor of the company. It was 100% response from the employees regarding the financial assistance provided by company 9. While availing the facilities do you face any problem?
  61. 61. 61 Regarding the question the response was that 2 employees were unsatisfied whereas 18 employees were satisfied with the service provided to them. 10. If review is taken from current wage structure which area in your view requires more attention? From the above response only 6 employees want increase in wages, 4 employees want increase in basic excluding D.A. or H.R.A. & 10 employees want increase in the number of allowances they want some additional allowances union has not been given to them or in addition to the current allowance scheme.
  62. 62. 62 FINDINGS AND CONCLUSION
  63. 63. 63 Salary administration is the new function assigned to the HR Department. Earlier it was handled by Account Department. A new pay scale is introduced in DLIC from April 1, 2006 ; keeping in mind the present economic condition & inflation rate. The new pay scale includes various new schemes and allowances. After doing the performance appraisal in the company, the new pay scale was applied. Most of the employees were benefited by increments & promotion given according to new pay scale. There is a predetermined rule for computing the fixed basic salary of the employees those who are getting promotion & increments.
  64. 64. 64 The performance evaluation procedure is not absolutely perfect in DLIC. The promotion, incentives & other benefits are determined on the basis of performance evaluation process. There was certain degree of dissatisfaction & conflict emerged due to the performance evaluation. Good incentive plans, bonus, schemes & allowances were given to the employees The Final Payment given to the employee is the accumulation of Provident fund, Gratuity & Earned Leave Encashment. ********************* LIMITATIONS
  65. 65. 65 Salary administration was recently included as a HRD function in the company, so there was lack of sufficient data. Shortage of time to go in-depth of the topic. Due to Companies norms & regulations some of the official & financial data couldn’t t be made available. Sources of data for collection of secondary data were limited. Sufficient books, publications and journal were not available on the topic. The overall span of the organization is too big to cover all the aspects completely related to salary administration. Many times the officials were so busy that they couldn’t t answer the queries
  66. 66. 66 related to the topic. ********************* RECOMMENDATIONS
  67. 67. 67 Performance Evaluation procedure should be modified to avoid conflict & dissatisfaction among the employees. The HR department should recruit skilled, knowledgeable & competent personals and should provide them regular training facility for skill enhancement. Online information should be updated regularly so that the clients and potential customers must get the latest information regarding various insurance schemes and plans offered by the company. Internet connection and Information system should be setup in the HR department so that its functions could be performed smoothly and efficiently. Unnecessary man power should be eliminated so that the various packages can be
  68. 68. 68 increased for rest of the employees. Appraisal should be done fairly so that conflict, dissatisfaction & attrition rate gets reduced. The employees were found working unhappily after performance appraisal is done. All the important and necessary data & files should be properly organized and preserved, Technical equipments should be serviced & repaired at regular intervals. The relationship between top & lower management should be made more cordial to bridge the gap and to fulfill the target set by the company. BIBLIOGRAPHY Human Resource Management - David A . Decenzo Stephen P . Robbins Publisher : John Willy & Sons. (7th edition) Human Resource Management - A.K.Singh, B.R.Duggal, Puneet Mohan Publisher : Sun India Publications. Human Resource Management - P.G.Aquinas.
  69. 69. 69 Publisher: Vikas Publising House Pvt Ltd Human Resource Management - Anjali Ghanekar www.en.wikipedia.org
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