Human resource Management
Human resource management deals with the management of people in an organization it is assessed and accepted that Human resource are the main components of an organization and the human or failure of an organization depends on how effectively this components is managed. This is the concept, which is integrated and involving the entire human force of that organization to work together with a sense of common purpose that how to be infused to the organization.
Human resource management is dedicated to develop a suitable corporate, culture programs or design and implement to reflect core values, of the enterprise., "Human resource management is proactive rather than waiting to be told what to do about recruiting, payments or training the people "Human resource…………
Management is related to the continues process of man power planning selection performance appraisal, administration, training and development. Human resource management always is deep rooted comprehensive activity taken up to improve that quality of human beings who are vital assets of the organizations competence and capability of the employees will be improved by adopting scientific methods which enable them to play their assigned roles effectively.
Today management techniques in corporate enterprise are changing very fast it is more so in Human resource management. Human resource development manager has to actuate every being that works in the organizations. His job is to created a team spirit in the minds of the His job is to create a team spirit in the minds of the corporate enterprise before has actuates his workers he should be able to self actuate and work with his group of workers. "Actuating is getting all the members of the group to work and to strive to archive objectives of the enterprises.
MEANING
In simple sense Human resource management means employing people and development their resource utilizing maintaining people and compensation their services in tune with the jobs and organization requirements with a view to achieve the goal of the organization individual and the society.
Human resource management functions helps in the managers in recruiting, relations, training and development the members for an organization. Human resource management is also concerned with hiring motivating, and people in an organization it forces on people in organization.
DEFINITIONS
According to Leon C meginson Human resource management is "The total knowledge of skills, creative abilities, talents and aptitudes of an organization workforce as well as the value attitude and beliefs of the individuals involved.
According to Flippo Human resource management is "The planning organizing, directing, and co-ordinating and controlling of the procurement,
DEFINITION
According to Leon C meginson Human resource management is "The total knowledge of skills, creative abilities, talents and aptitudes of an organization workforce as well as the value attitude and beliefs of the individuals involved".
According to Flippo Human resource management is "The planning, organizing, directing, and coordinating and controlling of the procurement, development, compensation, integration, maintenance, organization and social objective are accomplished.
Human resource management can be defined as managing production organizing and controlling the functions of employing, development and compensation, Human resource resulting in the creations and development of human relations resulting with a view to contribute proportionately to the organizational, individual and social goals.
SCOPE OF HUMAN RESOURCE MANAGEMENT
Scope of Human resource is indeed vast. All major activities in the working life of worker from the time of his or her entry into an organization until he specifically the activities included are Human resource planning job analysis and design, recruitment selection, organization, and placement, training and development, performance appraisal and job evaluations.
Setting general and specific management policy for organizations relationship and establishing and maintaining a suitable organization for better cooperation.
Collective bargaining contract negotiation, contract administration and grievance handling.
Aiding in the self-development of employees at all levels providing opportunities for personal development and growth as for acquiring requisite skill and experience.
Developing and maintaining motivating for workers by providing certain incentives.
OBJECTIVES
Primary objective of Human resource management is to ensure the availability of a component and willing workforce to an organization. Beyond this there are another objective too specifically Human resource management objective are divided into four fractions i.e., social organizational, functional and personal.
SOCIAL OBJECTIVE
Every organization has to set objective keeping the society in mind. Along with the organizational objectives it has to set certain other social objectives in order to help the society the primary objective of the organization is to be ethically and socially responsible to meet the need and challenges of the society while minimizing the negative impact of such demands upon the organization the failure of organizations to use there resource for the society benefits in ethical ways may led to restrictions.
ORGANIZATIONAL OBJECTIVES
To recognize the role of human resource management is burning about organizational effectiveness. Human resource management is not an end in itself it is only a mean to assist the organization with its primary objectives the department exists to serve the rest of the organization.
FUNCTIONAL OBJECTIVES
Functional objective should not become too expensive at the cost of the organization it serves while personal objectives assist employees in achieving their personal goals to maintain the departments contributed at the level appropriate to the organization needs resource are wasted when HRM is either more or less sophisticated to suit the organizations demands.
PERSONAL OBJECTIVES
To assist employees in achieving their personnel goals which enhance the individual contribution to the organization personal objective of employees have to meet if workers are to be maintained, retained and otherwise employee performance and satisfactions may decline and the employee may try to leave the organization.
IMPORTANCE OF HUMAN RESOURCE MANAGEMENT
Yodder" and other discuss the importance of Human resource management from three standpoints.
SOCIAL SIGNIFICANCE: Proper management is that which enhance their dignity by satisfying their social needs it is done by… Maintaining balance between the jobs available and the job seekers according to their needs and qualification. Providing suitable and most productive employment. Eliminating waste or unwanted Human resource. By helping people to make their own decisions that are in their interests.
PROFESSIONAL SIGNIFICANCE: By providing a healthy working environment it promotes team works in the employees, this is done by maintaining the dignity of the employees as a Human resource being.
Providing maximum opportunity for personal development. Improving the employees skills and capacity. Correcting the errors and reallocation of work.
SIGNIFICANCE OF INDIVIDUAL ENTERPRISE: It can help the organization in accomplishing its goals by. Creating right attitude among the employees Utilizing the Human resource to the maximum extent Attaining cooperation among the employees.
FUNCTIONS OF HUMAN RESOURCE MANAGEMENT
The functions of human resource management can be broadly classified into two categories viz.
Managerial functions.
Operational functions.
MANAGERIAL FUNCTION: Managerial functions of personnel management involves planning, organizing, directing, and controlling all these functions influences the operative functions,
Planning; It is a pre-determined course of actions planning pertains to formulating strategies of personnel programs and changes in advance that will contribute to the organization goals.
Organizing; organizing is essential to carry out the determined course of action. Organizing is a structure and a process by which a cooperative group of human beings allocates its task among its members identifies relationships and integrates its activities towards common objective.
Directing; The next logical function after completing planning and organizing is the execution of the plan. The basic function of personal management at any level is motivating, commanding, lending, and activating people the willing and effective cooperation of employees for the attainment of organization goals is possible through proper directing.
Controlling; After planning organizing and directing various activities of personal management is to be verified in order to know that the personal functions are performed in conformity with the plans and directing of an organization.
OPERATIVE FUNCTION: The operative functional human resource management are related to specific activities of personnel management viz employment, human resource development compensation and relations all these functions are interacted with managerial functions.
Employment: It is the operative functions of Human resource management, employment is concerned with securing the employing the people possessing the required kind and level of Human resource necessary to archive the organizational objective.
Human resource development: It is the process of improving, mounding and changing the skills, knowledge, creative ability, attitude, values, commitment etc on present and future job and organizational requirements.
Compensation: It is the process of providing adequate, equitable and fair remuneration, wages and salary administration, bonus, fringe benefits social security measure etc.
1.2 HUMAN RESOURCE DEVELOPMENT
The concept of human resource development is a new concept of the 20th century and is called as human resource development, which emerged as a planned and systematic functions of the HRM.
Human resource development is mainly concerned with developing the skills, knowledge and competencies of people and it is people oriented concept.
Human resource and human resource management are related to human resource development, human resource are simply people, human resource management is the activity of managing people and the business of an organization. Human resource development appears to the systematic process of changing within as organization it is a specialized process that assists people to reach their potential and further strengths the goals of a organization. Human resource development can be applied both for the organizational and national level the concepts of human resource development was formally introduced by LEONARD NADLER in 1989 in a conference organized by the American society for training and development.
1.3. INTRODUCTION EMPLOYEE COMPENSATION
Compensation is what employees receive in exchange for their contribution to the organization. Generally, employees offer their service for three types of rewards. Pay refers to the base wages and salaries employees normally receive. Compensation forms such as bonuses, commissions and profit sharing plans are incentives designed to encourage employees to produce results beyond normal expections. Benefits such as insurance, medical, recreational, retirement etc. represent a more indirect type of compensation. So, the term compensation is a comprehensive one including pay, incentives, and benefits offered by employers for hiring the services of employees. In addition to these, managers have to observe legal formalities for offering physical as well as financial security to employees. All these play an important role in any HR department efforts to obtain, maintain and retain an effective workforce.
1.3.1 NATURE OF COMPENSATION.
Compensation offered by an organization can come both directly through base pay and variable pay and indirectly through benefits. Base pay; it is basic compensation an employee gets, usually as a wage or salary.
VARIABLE PAY: it is the compensation that is linked directly to perform accomplishment (bonuses, incentives, stock options)
BENEFITS: These are indirect rewards given to an employee or group employees as a part organization membership (health insurance vacantion pay, pension etc)
1.3.2 OBJECTIVES OF COMPENSATION AND COMPENSATION PLANNING.
1. To analyze various compensation methods existing in the organization.
2. To identify the relationships of performance with compensation methods in the organizations.
3. To check the level of motivation the employees get through compensation provided.
4. To analysis employees level of satisfaction towards compensation provided by company.
5. To identify process of interlink between performance and compensation method.
1.3.3 COMPENSATION PLANNING
In addition there are other objectives also they are.
Attract talent; compensation needs to be high enough to attract talented people since many firms compete to hire the services of competent people, the salaries offered must be high enough to motivate them to apply.
RETAIN TALENTS: If compensation levels fall below the expectations of employees or are not competitive, employees may quit in frustration.
ENSURE EQUITY: Pay should equal the worth of a job, similar get similar pay, likewise, more qualified people should get better wages.
CONTROL COSTS: The cost of hiring people should not be too high, Effective compensation management ensures that worker are nether over paid nor underpaid.
EASE OF OPERATION: The compensation management system should be easy to understand and operate. Then only will it promote understand regarding pay-related matters between employees union and management.
1.3.4 COMPONENTS OF PAY STRUCTURE IN INDIA.
WAGES. In India, different Acts include different items under wages. Under the workman's compensation act 1923 wages for holiday pay, overtime, bonus attendance bonus, and good conduct bonus "form part of wages.
Bonus or other payments under a profit-sharing schemes which do not form a part of contract of employees.
Value of any house accommodation supply of light, water, medical attendance, traveling allowance, or payment in lieu thereof or any other concession.
Any sum paid to defray special expenses entailed by the nature of security and social insurance benefits.
Any contribution to pension, provided fund or a scheme of social securities and social insurance benefits.
BASIC WAGE: The basic wage in India corresponds with what has been recommended by the fair wages committee (1948) and the 15th Indian labor conference (1957) The various awards by wages tribunals wages board, pay commission reports and job evolutions also serve as guiding principle in determining basic wage they are:
Skill need of the job:
Experience needed;
Difficulty of work mentally as well as physical;
Training needed;
Responsibilities involved;
Hazardous nature of job;
DEARNESS ALLOWANCE: It is the allowance paid to employee in order to enable them to face the increasing dearness of essential commodities. It service as a cushion, as sort of insurance against increasing in price levels of commodities. Instead of increasing wages every time there is a rise in price levels, DA is paid to neutralize the effects of inflation; when prices go down DA can be always be reduced. These has, however, remained a hypothetical situation as price never come down to necessitate a cut in dearness allowance payable to employees.
WAGE AND SALARY ADMINISTRATION.
Employees compensation may be classified into two types basic compensation and supplementary compensation. Basic compensation refers to monetary payments in the form of wages and salaries the term wage implies remuneration to works doing manual work. The term salaries is usually defined to mean compensation to office, managerial, technical and professional staff.
1.3.5 OBJECTIVES: A sound plan of compensation administration seeks to achieve the following objectives;
To attract qualified and competent personnel.
To control labour and administrative costs in line with the ability of the organization units.
To improve motivation and moral of employees and to improve union-management to pay.
To retain the present employees by keeping wages levels in tune with competing units.
PRINCIPLES OF WAGE AND SALARY ADMINISTRATION
Wage and salary plans should be sufficiently flexible.
Job evaluation must be done scientifically.
Wages and salary administration plans and programmers should be responsive to the changing local and national conditions.
These plans should simplify and expedite other administrative processes.
FACTORS INFLUENCING COMPENSATION LEVELS
The amount of compensation received by an employee should reflect the efforts put in by the employee, the degree of difficulty and the demand – supply position within the country, etc. These are discussed below.
JOB NEEDS: Jobs vary greatly in their difficulty, complexity and challenges. Some need high levels of skills and knowledge while other can be handled by almost anyone simple, routine task that can be done by many people with minimal skills received relatively low pay… on the other hand, complex, challenging tasks that can be done by few people with high skill levels generally received high pay.
Ability to pay: Inflation reduces the purchasing power of employees. To overcome this, unions and workers prefer to link wages to that cost of living index.. When the index rises due to raising prices, wages follow suit.
PREVAILING WAGS RATES: This wages rates in competing firms within an industry are taken into account while fixing wages. Accompany that does not pay comparable wages may find it difficult to attract and retain talented employees.
UNIONS: High unionized sector generally have high because well organized unions can exert presence on management and obtain all sort of benefits and concessions to workers.
STATE REGULATION: The legal stipulations in respect of minimum wages, bonus DA, etc: determine the wages structure in an industry.
1.3.8. WAGS POLICY IN INDIA
Minimum wages: minimum wages is that wage which must invariably be paid whether the company, big or small, makes profits or not. It is the bare minimum that a worker can expect to get for services rendered by him.
Bonus: An important components the employees earning, besides salary. Stating as an adhoc and excretion payments, bonus was claimed as DA during world war. In the course of labor history, it has metamorphosed from a reward or an incentives for good work, into a defendable right and a just claim.
1.3.9 CHOICE IN DESIGNING A COMPENSATION SYSTEM:
The compensation system that is followed by a firm should be in tune with its own unique character and culture and allow the firm to achieve its strategic objectives A wider variety of options a firm while designing such a system.
INTERAL AND EXTERAL PAY: Pay equity, as started pensively, is achieved when the compensation received is equal to the value of the work done, compensation policies are internally equitable when employee believe that the wage rates for their approximate job's worth to the organization.
FIXED VARIABLE PAY: Now a days variable pay programs are widely followed through out many organizations and for all levels of employees widespread use various incentives plans team bonuses, profit sharing programmes have been implemented with a view to link growth in compensation results.
PERFORMANCE MEMBERSHIP: Konwledge-based organization these days follow a performance – based payment plans offering awards to employees for cost saving suggestions, bonus, for perfect attendance or merits payment based on supervisory appraisal.
JOB INDIVIDUAL PAY: most tradition organization even today – decide the minimum and maximum values of each job independently of individual worker, ignoring their abilities, potential and to take up multiple job.
BWLOW MARKET AND ABOVE MARKET COMPENSATION: In higher terms R & D workers might be paid better than counterparts in the manufacturing divisions. Blue chips such as HLL, NESTLE, PROCTER in order to attract (and retain)" the crop To grow rapidly and to get ahead of other in the race, especially in knowledge – based industries most companies prefer to pay above-market salaries.
OPEN SECRET PAY: In the real world, the issue of paying compensation openly or in a secret way may often become a bone of contention between employer current research evidence indicates that pay openness is likely to be more successful in organization.
RESEARCH DESIGN
RESEARCH DESIGN
Research designs decides the fate decides the fact of the proposal and its outcome if the designs is defective the whole outcome and report will be faulty and undependable. Designing is preliminary step in every activity it is at designing stage that the purpose for which research is to be used will also have to be decided to the designing stage. Designing thus provides a picture for the whole before starting the work.
Research design is the conceptual structure of research project. It constitutes the blue print for the collection and analysis of data in a manner that aims to combine relevance to research purpose with economy in procedure.
Keeping the objective hypothesis of the study descriptive research has been adopted descriptive reach studies are those studies which are concerned with descriptive research studies are those studies which are concerned with descriptive research studies are those studies which are concerned with describing the characteristic of a particular divided or group so the research has adopted this design to known the age, sex, and education background, nature of work and year of experience of the respondent this research design is also useful to analyze the level of job satisfactions and its impact on work performance of the respondent.
STATEMETN OF PROBLEM.
This project is entitled with effectiveness of employee compensation of employee in BANGALORE MILK UNION (BAMUL). The state of problem is the whether the company is providing effective compensation for their employees and to check whether employees are satisfied with compensation provided to them.
SCOPE OF THE STUDY
This project research selected the company within the location Bangalore. Respondents for the study are only the employees of the company and the time involved in this project were as prescribed by the university.
The present study title employee compensation covers BANGALORE MILK UNION (BAMUL)
The study comprises middle and contract level of employees
The survey was conducted on emplyee's compensation.
OBJECTIVES OF STUDY.
1. To analyse various compensation methods existing in the organization.
2. To identify the relationships of performance with compensation methods in the organization.
3. To check the level of motivation the employees get through compensation provided.
4. To analyse employees, level of satisfaction towards compensation provided by company.
5. To identify process of interlink between performance and compensation method.
METHODOLOGY
Research methodology may be under started as science of studying how research is done scientifically. It is way to systematically solve research problem.
RESEARCH DESIGN IN BAMUL.
"A research design is the arrangement of condition for collection and analysis of data in a manner that aims to combine relevance to the research purpose with the economy in procedure Intact the research design is the conceptual structure within which research is conducted it constitutes the blue prints for the collection, measurement and analysis of data. As such the design include an outline of what the researcher will do from writing the hypothesis and its operational implication to the final analysis of data.
For this research work descriptive design is used, it includes survey and fact-findings, enquires of different kinds. The major purpose of descriptive research is description of the state of affairs, as it exists at preset. In this method the reach has no control over the variable he/she can only report what had happened and what is happening this study tries to describe the effectiveness of job satisfaction in Bangalore milk union (bamul).
Human resource management deals with the management of people in an organization it is assessed and accepted that Human resource are the main components of an organization and the human or failure of an organization depends on how effectively this components is managed. This is the concept, which is integrated and involving the entire human force of that organization to work together with a sense of common purpose that how to be infused to the organization.
Human resource management is dedicated to develop a suitable corporate, culture programs or design and implement to reflect core values, of the enterprise., "Human resource management is proactive rather than waiting to be told what to do about recruiting, payments or training the people "Human resource…………
Management is related to the continues process of man power planning selection performance appraisal, administration, training and development. Human resource management always is deep rooted comprehensive activity taken up to improve that quality of human beings who are vital assets of the organizations competence and capability of the employees will be improved by adopting scientific methods which enable them to play their assigned roles effectively.
Today management techniques in corporate enterprise are changing very fast it is more so in Human resource management. Human resource development manager has to actuate every being that works in the organizations. His job is to created a team spirit in the minds of the His job is to create a team spirit in the minds of the corporate enterprise before has actuates his workers he should be able to self actuate and work with his group of workers. "Actuating is getting all the members of the group to work and to strive to archive objectives of the enterprises.
MEANING
In simple sense Human resource management means employing people and development their resource utilizing maintaining people and compensation their services in tune with the jobs and organization requirements with a view to achieve the goal of the organization individual and the society.
Human resource management functions helps in the managers in recruiting, relations, training and development the members for an organization. Human resource management is also concerned with hiring motivating, and people in an organization it forces on people in organization.
DEFINITIONS
According to Leon C meginson Human resource management is "The total knowledge of skills, creative abilities, talents and aptitudes of an organization workforce as well as the value attitude and beliefs of the individuals involved.
According to Flippo Human resource management is "The planning organizing, directing, and co-ordinating and controlling of the procurement,
DEFINITION
According to Leon C meginson Human resource management is "The total knowledge of skills, creative abilities, talents and aptitudes of an organization workforce as well as the value attitude and beliefs of the individuals involved".
According to Flippo Human resource management is "The planning, organizing, directing, and coordinating and controlling of the procurement, development, compensation, integration, maintenance, organization and social objective are accomplished.
Human resource management can be defined as managing production organizing and controlling the functions of employing, development and compensation, Human resource resulting in the creations and development of human relations resulting with a view to contribute proportionately to the organizational, individual and social goals.
SCOPE OF HUMAN RESOURCE MANAGEMENT
Scope of Human resource is indeed vast. All major activities in the working life of worker from the time of his or her entry into an organization until he specifically the activities included are Human resource planning job analysis and design, recruitment selection, organization, and placement, training and development, performance appraisal and job evaluations.
Setting general and specific management policy for organizations relationship and establishing and maintaining a suitable organization for better cooperation.
Collective bargaining contract negotiation, contract administration and grievance handling.
Aiding in the self-development of employees at all levels providing opportunities for personal development and growth as for acquiring requisite skill and experience.
Developing and maintaining motivating for workers by providing certain incentives.
OBJECTIVES
Primary objective of Human resource management is to ensure the availability of a component and willing workforce to an organization. Beyond this there are another objective too specifically Human resource management objective are divided into four fractions i.e., social organizational, functional and personal.
SOCIAL OBJECTIVE
Every organization has to set objective keeping the society in mind. Along with the organizational objectives it has to set certain other social objectives in order to help the society the primary objective of the organization is to be ethically and socially responsible to meet the need and challenges of the society while minimizing the negative impact of such demands upon the organization the failure of organizations to use there resource for the society benefits in ethical ways may led to restrictions.
ORGANIZATIONAL OBJECTIVES
To recognize the role of human resource management is burning about organizational effectiveness. Human resource management is not an end in itself it is only a mean to assist the organization with its primary objectives the department exists to serve the rest of the organization.
FUNCTIONAL OBJECTIVES
Functional objective should not become too expensive at the cost of the organization it serves while personal objectives assist employees in achieving their personal goals to maintain the departments contributed at the level appropriate to the organization needs resource are wasted when HRM is either more or less sophisticated to suit the organizations demands.
PERSONAL OBJECTIVES
To assist employees in achieving their personnel goals which enhance the individual contribution to the organization personal objective of employees have to meet if workers are to be maintained, retained and otherwise employee performance and satisfactions may decline and the employee may try to leave the organization.
IMPORTANCE OF HUMAN RESOURCE MANAGEMENT
Yodder" and other discuss the importance of Human resource management from three standpoints.
SOCIAL SIGNIFICANCE: Proper management is that which enhance their dignity by satisfying their social needs it is done by… Maintaining balance between the jobs available and the job seekers according to their needs and qualification. Providing suitable and most productive employment. Eliminating waste or unwanted Human resource. By helping people to make their own decisions that are in their interests.
PROFESSIONAL SIGNIFICANCE: By providing a healthy working environment it promotes team works in the employees, this is done by maintaining the dignity of the employees as a Human resource being.
Providing maximum opportunity for personal development. Improving the employees skills and capacity. Correcting the errors and reallocation of work.
SIGNIFICANCE OF INDIVIDUAL ENTERPRISE: It can help the organization in accomplishing its goals by. Creating right attitude among the employees Utilizing the Human resource to the maximum extent Attaining cooperation among the employees.
FUNCTIONS OF HUMAN RESOURCE MANAGEMENT
The functions of human resource management can be broadly classified into two categories viz.
Managerial functions.
Operational functions.
MANAGERIAL FUNCTION: Managerial functions of personnel management involves planning, organizing, directing, and controlling all these functions influences the operative functions,
Planning; It is a pre-determined course of actions planning pertains to formulating strategies of personnel programs and changes in advance that will contribute to the organization goals.
Organizing; organizing is essential to carry out the determined course of action. Organizing is a structure and a process by which a cooperative group of human beings allocates its task among its members identifies relationships and integrates its activities towards common objective.
Directing; The next logical function after completing planning and organizing is the execution of the plan. The basic function of personal management at any level is motivating, commanding, lending, and activating people the willing and effective cooperation of employees for the attainment of organization goals is possible through proper directing.
Controlling; After planning organizing and directing various activities of personal management is to be verified in order to know that the personal functions are performed in conformity with the plans and directing of an organization.
OPERATIVE FUNCTION: The operative functional human resource management are related to specific activities of personnel management viz employment, human resource development compensation and relations all these functions are interacted with managerial functions.
Employment: It is the operative functions of Human resource management, employment is concerned with securing the employing the people possessing the required kind and level of Human resource necessary to archive the organizational objective.
Human resource development: It is the process of improving, mounding and changing the skills, knowledge, creative ability, attitude, values, commitment etc on present and future job and organizational requirements.
Compensation: It is the process of providing adequate, equitable and fair remuneration, wages and salary administration, bonus, fringe benefits social security measure etc.
1.2 HUMAN RESOURCE DEVELOPMENT
The concept of human resource development is a new concept of the 20th century and is called as human resource development, which emerged as a planned and systematic functions of the HRM.
Human resource development is mainly concerned with developing the skills, knowledge and competencies of people and it is people oriented concept.
Human resource and human resource management are related to human resource development, human resource are simply people, human resource management is the activity of managing people and the business of an organization. Human resource development appears to the systematic process of changing within as organization it is a specialized process that assists people to reach their potential and further strengths the goals of a organization. Human resource development can be applied both for the organizational and national level the concepts of human resource development was formally introduced by LEONARD NADLER in 1989 in a conference organized by the American society for training and development.
1.3. INTRODUCTION EMPLOYEE COMPENSATION
Compensation is what employees receive in exchange for their contribution to the organization. Generally, employees offer their service for three types of rewards. Pay refers to the base wages and salaries employees normally receive. Compensation forms such as bonuses, commissions and profit sharing plans are incentives designed to encourage employees to produce results beyond normal expections. Benefits such as insurance, medical, recreational, retirement etc. represent a more indirect type of compensation. So, the term compensation is a comprehensive one including pay, incentives, and benefits offered by employers for hiring the services of employees. In addition to these, managers have to observe legal formalities for offering physical as well as financial security to employees. All these play an important role in any HR department efforts to obtain, maintain and retain an effective workforce.
1.3.1 NATURE OF COMPENSATION.
Compensation offered by an organization can come both directly through base pay and variable pay and indirectly through benefits. Base pay; it is basic compensation an employee gets, usually as a wage or salary.
VARIABLE PAY: it is the compensation that is linked directly to perform accomplishment (bonuses, incentives, stock options)
BENEFITS: These are indirect rewards given to an employee or group employees as a part organization membership (health insurance vacantion pay, pension etc)
1.3.2 OBJECTIVES OF COMPENSATION AND COMPENSATION PLANNING.
1. To analyze various compensation methods existing in the organization.
2. To identify the relationships of performance with compensation methods in the organizations.
3. To check the level of motivation the employees get through compensation provided.
4. To analysis employees level of satisfaction towards compensation provided by company.
5. To identify process of interlink between performance and compensation method.
1.3.3 COMPENSATION PLANNING
In addition there are other objectives also they are.
Attract talent; compensation needs to be high enough to attract talented people since many firms compete to hire the services of competent people, the salaries offered must be high enough to motivate them to apply.
RETAIN TALENTS: If compensation levels fall below the expectations of employees or are not competitive, employees may quit in frustration.
ENSURE EQUITY: Pay should equal the worth of a job, similar get similar pay, likewise, more qualified people should get better wages.
CONTROL COSTS: The cost of hiring people should not be too high, Effective compensation management ensures that worker are nether over paid nor underpaid.
EASE OF OPERATION: The compensation management system should be easy to understand and operate. Then only will it promote understand regarding pay-related matters between employees union and management.
1.3.4 COMPONENTS OF PAY STRUCTURE IN INDIA.
WAGES. In India, different Acts include different items under wages. Under the workman's compensation act 1923 wages for holiday pay, overtime, bonus attendance bonus, and good conduct bonus "form part of wages.
Bonus or other payments under a profit-sharing schemes which do not form a part of contract of employees.
Value of any house accommodation supply of light, water, medical attendance, traveling allowance, or payment in lieu thereof or any other concession.
Any sum paid to defray special expenses entailed by the nature of security and social insurance benefits.
Any contribution to pension, provided fund or a scheme of social securities and social insurance benefits.
BASIC WAGE: The basic wage in India corresponds with what has been recommended by the fair wages committee (1948) and the 15th Indian labor conference (1957) The various awards by wages tribunals wages board, pay commission reports and job evolutions also serve as guiding principle in determining basic wage they are:
Skill need of the job:
Experience needed;
Difficulty of work mentally as well as physical;
Training needed;
Responsibilities involved;
Hazardous nature of job;
DEARNESS ALLOWANCE: It is the allowance paid to employee in order to enable them to face the increasing dearness of essential commodities. It service as a cushion, as sort of insurance against increasing in price levels of commodities. Instead of increasing wages every time there is a rise in price levels, DA is paid to neutralize the effects of inflation; when prices go down DA can be always be reduced. These has, however, remained a hypothetical situation as price never come down to necessitate a cut in dearness allowance payable to employees.
WAGE AND SALARY ADMINISTRATION.
Employees compensation may be classified into two types basic compensation and supplementary compensation. Basic compensation refers to monetary payments in the form of wages and salaries the term wage implies remuneration to works doing manual work. The term salaries is usually defined to mean compensation to office, managerial, technical and professional staff.
1.3.5 OBJECTIVES: A sound plan of compensation administration seeks to achieve the following objectives;
To attract qualified and competent personnel.
To control labour and administrative costs in line with the ability of the organization units.
To improve motivation and moral of employees and to improve union-management to pay.
To retain the present employees by keeping wages levels in tune with competing units.
PRINCIPLES OF WAGE AND SALARY ADMINISTRATION
Wage and salary plans should be sufficiently flexible.
Job evaluation must be done scientifically.
Wages and salary administration plans and programmers should be responsive to the changing local and national conditions.
These plans should simplify and expedite other administrative processes.
FACTORS INFLUENCING COMPENSATION LEVELS
The amount of compensation received by an employee should reflect the efforts put in by the employee, the degree of difficulty and the demand – supply position within the country, etc. These are discussed below.
JOB NEEDS: Jobs vary greatly in their difficulty, complexity and challenges. Some need high levels of skills and knowledge while other can be handled by almost anyone simple, routine task that can be done by many people with minimal skills received relatively low pay… on the other hand, complex, challenging tasks that can be done by few people with high skill levels generally received high pay.
Ability to pay: Inflation reduces the purchasing power of employees. To overcome this, unions and workers prefer to link wages to that cost of living index.. When the index rises due to raising prices, wages follow suit.
PREVAILING WAGS RATES: This wages rates in competing firms within an industry are taken into account while fixing wages. Accompany that does not pay comparable wages may find it difficult to attract and retain talented employees.
UNIONS: High unionized sector generally have high because well organized unions can exert presence on management and obtain all sort of benefits and concessions to workers.
STATE REGULATION: The legal stipulations in respect of minimum wages, bonus DA, etc: determine the wages structure in an industry.
1.3.8. WAGS POLICY IN INDIA
Minimum wages: minimum wages is that wage which must invariably be paid whether the company, big or small, makes profits or not. It is the bare minimum that a worker can expect to get for services rendered by him.
Bonus: An important components the employees earning, besides salary. Stating as an adhoc and excretion payments, bonus was claimed as DA during world war. In the course of labor history, it has metamorphosed from a reward or an incentives for good work, into a defendable right and a just claim.
1.3.9 CHOICE IN DESIGNING A COMPENSATION SYSTEM:
The compensation system that is followed by a firm should be in tune with its own unique character and culture and allow the firm to achieve its strategic objectives A wider variety of options a firm while designing such a system.
INTERAL AND EXTERAL PAY: Pay equity, as started pensively, is achieved when the compensation received is equal to the value of the work done, compensation policies are internally equitable when employee believe that the wage rates for their approximate job's worth to the organization.
FIXED VARIABLE PAY: Now a days variable pay programs are widely followed through out many organizations and for all levels of employees widespread use various incentives plans team bonuses, profit sharing programmes have been implemented with a view to link growth in compensation results.
PERFORMANCE MEMBERSHIP: Konwledge-based organization these days follow a performance – based payment plans offering awards to employees for cost saving suggestions, bonus, for perfect attendance or merits payment based on supervisory appraisal.
JOB INDIVIDUAL PAY: most tradition organization even today – decide the minimum and maximum values of each job independently of individual worker, ignoring their abilities, potential and to take up multiple job.
BWLOW MARKET AND ABOVE MARKET COMPENSATION: In higher terms R & D workers might be paid better than counterparts in the manufacturing divisions. Blue chips such as HLL, NESTLE, PROCTER in order to attract (and retain)" the crop To grow rapidly and to get ahead of other in the race, especially in knowledge – based industries most companies prefer to pay above-market salaries.
OPEN SECRET PAY: In the real world, the issue of paying compensation openly or in a secret way may often become a bone of contention between employer current research evidence indicates that pay openness is likely to be more successful in organization.
RESEARCH DESIGN
RESEARCH DESIGN
Research designs decides the fate decides the fact of the proposal and its outcome if the designs is defective the whole outcome and report will be faulty and undependable. Designing is preliminary step in every activity it is at designing stage that the purpose for which research is to be used will also have to be decided to the designing stage. Designing thus provides a picture for the whole before starting the work.
Research design is the conceptual structure of research project. It constitutes the blue print for the collection and analysis of data in a manner that aims to combine relevance to research purpose with economy in procedure.
Keeping the objective hypothesis of the study descriptive research has been adopted descriptive reach studies are those studies which are concerned with descriptive research studies are those studies which are concerned with descriptive research studies are those studies which are concerned with describing the characteristic of a particular divided or group so the research has adopted this design to known the age, sex, and education background, nature of work and year of experience of the respondent this research design is also useful to analyze the level of job satisfactions and its impact on work performance of the respondent.
STATEMETN OF PROBLEM.
This project is entitled with effectiveness of employee compensation of employee in BANGALORE MILK UNION (BAMUL). The state of problem is the whether the company is providing effective compensation for their employees and to check whether employees are satisfied with compensation provided to them.
SCOPE OF THE STUDY
This project research selected the company within the location Bangalore. Respondents for the study are only the employees of the company and the time involved in this project were as prescribed by the university.
The present study title employee compensation covers BANGALORE MILK UNION (BAMUL)
The study comprises middle and contract level of employees
The survey was conducted on emplyee's compensation.
OBJECTIVES OF STUDY.
1. To analyse various compensation methods existing in the organization.
2. To identify the relationships of performance with compensation methods in the organization.
3. To check the level of motivation the employees get through compensation provided.
4. To analyse employees, level of satisfaction towards compensation provided by company.
5. To identify process of interlink between performance and compensation method.
METHODOLOGY
Research methodology may be under started as science of studying how research is done scientifically. It is way to systematically solve research problem.
RESEARCH DESIGN IN BAMUL.
"A research design is the arrangement of condition for collection and analysis of data in a manner that aims to combine relevance to the research purpose with the economy in procedure Intact the research design is the conceptual structure within which research is conducted it constitutes the blue prints for the collection, measurement and analysis of data. As such the design include an outline of what the researcher will do from writing the hypothesis and its operational implication to the final analysis of data.
For this research work descriptive design is used, it includes survey and fact-findings, enquires of different kinds. The major purpose of descriptive research is description of the state of affairs, as it exists at preset. In this method the reach has no control over the variable he/she can only report what had happened and what is happening this study tries to describe the effectiveness of job satisfaction in Bangalore milk union (bamul).
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