A SUMMER TRANING REPORT ON COMPENSATION MANAGEMENT BALLACK CARPETS (PANIPAT) (SUBMITTED IN THE PARTIAL FULFILLMENT FOR THE DEGREE OF BACHELOR OF BUSINESS ADMINISTRATION (SESSION) SUBMITTED TO: SUBMITED BY: MISS NISHA GUPTA ASHIMA JUNEJA B.B.A. III YEAR CLASS ROLL No. 7872 UNIVERSITY ROLL No..
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A
SUMMER TRANING REPORT
ON
COMPENSATION MANAGEMENT
BALLACK CARPETS (PANIPAT)
(SUBMITTED IN THE PARTIAL FULFILLMENT FOR THE DEGREE
OF BACHELOR OF BUSINESS ADMINISTRATION
(SESSION)
SUBMITTED TO: SUBMITED BY:
MISS NISHA GUPTA ASHIMA JUNEJA
B.B.A. III YEAR
CLASS ROLL No. 7872
UNIVERSITY ROLL No..
I.B.(P.G.) COLLEGEAFFILIATED BY
KURUKSHETRA UNIVERSITY, KURUKSHETRA
DECLARATION
I ASHIMA JUNEJA student of B.B.A. III year in I.B.(P.G.) College, Panipat
hereby declare that the project report entitled “COMPENSATION MANAGEMENT
BALLACK CARPETS” submitted for the degree of B.B.A. III year is my original work and the project report has not formed the basis for the award of any diploma, degree, associate ship, fellowship or similar other titles. It has not been submitted to any other university or institution for the award of any degree or diploma.
ASHIMA JUNEJA
ACKNOWLEDGEMENT
Survey is an excellent tool for learning and exploration. No classroom routine can
substitute which is possible while working in real situations. Application of
theoretical knowledge to practical situations is the bonanzas of this survey.
Without a proper combination of inspection and perspiration, it’s not easy to
achieve anything. There is always a sense of gratitude, which we express to others
for the help and the needy services they render during the different phases of our
lives. I too would like to do it as I really wish to express my gratitude toward all
those who have been helpful to me directly or indirectly during the development of
this project.
I would like to thank my professor MISS.NISHA GUPTA who was always there
to help and guide me when I needed help. Her perceptive criticism kept me
working to make this project more full proof. I am thankful to her for his
encouraging and valuable support. Working under her was an extremely
knowledgeable and enriching experience for me. I am very thankful to her for all
the value addition and enhancement done to me.
No words can adequately express my overriding debt of gratitude to my parents
whose support helps me in all the way. Above all I shall thank my friends who
constantly encouraged and blessed me so as to enable me to do this work
successfully.
ASHIMA JUNEJA
INDEX OF CONTENTS
INTRODUCTION TO THE INDUSTRY
1.0) INDUSTRY PROFILE
1.1) CARPET MANUFACTURERS IN INDIA
1.2) CARPET MANUFCTURING PROCESS
1.3) SWOT ANALYSIS OF CARPET INDUSTRY
1.4) OPORTUNITIES:
TOPIC – 2 INTRODUCTION TO THE COMPANY
2.0) INTRODUCTION TO BALLACK CARPETSFAB
2.1) COMPANY PROFILE
2.2) COMMITMENTS
2.3) PRODUCTS
2.4) QUALITY
2.5) INFRASTRUCTURE
2.6) PRODUCTION CAPACITY
2.7) LOOMS AND MACHINES AVAILABLE WITHIN THE COMPANY
2.8) RESEARCH MARKETS
CHAPTER 3 INTRODUCTION TO COMPENSATION SYSTEM
3.0) INTRODUCTION
3.1) COMPONENTS OF EMPLOYEE COMPENSATION
3.2) IMPORTANCE OF COMPENSATION
3.3) CONCEPT OF FAIR WAGES:
3.4) ADVANTAGES OF FAIR WAGES
3.5) FACTORS INFLUENCING WAGE AND SALARY STRUCTURE
3.6) SYSTEMS OF WAGE PAYMENT
3.7) ADVANTAGES OF TIME RATE SYSTEM
3.8) DISADVANTAGES OF TIME RATE SYSTEM
3.9) MERITS OF PIECE RATE SYSTEM
3.10) DEMERITS OF PIECE RATE SYSTEM
3.11) INCENTIVE SYSTEMS OF WAGE PAYMENT
3.12) FEATURES OR REQUISITES OF A GOOD INCENTIVE PLAN
CHAPTER – 4 RESEARCH METHODOLOGY
4.0)INTRODUCTION
4.1) JUSTIFICATION OF THE STUDY
4.8) TOOLS USED FOR ANALYSIS
4.3) THE BASIC TYPES OF RESEARCH ARE AS FOLLOWS
4.4) RESEARCH DESIGN
4.5) SAMPLE DESIGN
4.6) METHODS OF DATA COLLECTION
4.7) DATA USED FOR THE PROJECT
4.2) OBJECTIVES OF RESEARCH
TOPIC – 5 FINDING & SUGGESTION
5.0) FINDINGS
5.1) RECOMMENDATIONS
5.2) CONCLUSION
TOPIC – 06
BIBLIOGRAPHY
EXECUTIVE SUMMARY
In this project, the researcher analyzed the different aspects of compensation
system of . Prime objective was to understand and interpret the compensation
structure which includes various components such as – wages, salaries, incentives,
perquisites & other benefits. As employee compensation is usually the single
largest expense. So, organizations continuously try to optimize the cost. But these
simple cost cutting measures are not always effective. And also employees create,
deliver and maintain most of the organization’s value and losing those valuable
people in the organization can cost a lot.
This project includes components of compensation, its importance in an
organization, factors influencing compensation structure, wage payment system
and all other aspects related to compensation.
In this study, Descriptive Research Design has been used. This research design is
about the characteristics of particular things. The data used in this project is
collected from various websites, manuals, monthly periodicals etc. Researcher’s
analysis of the study undertaken is quite satisfactory which shows that this
company i.e. BALLACK CARPETS has good compensation system.
CHAPTER – 1
INTRODUCTION TO THE INDUSTRY
1.0) INDUSTRY PROFILE
Carpet Industry is one of the oldest industries in India. Carpet Weaving was
brought to India by Moguls. Some of the majestic carpets were woven during this
Mogul era. Over the period, the weaver has become an artist, bringing the magical
exotic colors to the Indian carpets. Artists bring aesthetic touch to the carpets by
creating magic with colors and provide carpets an unusual beauty and elegance.
Indian Carpet Industry has always been an important part of Indian export industry.
Carpet holds recognition from over centuries. Earlier, only a few centers in India
were involved in carpet weaving but slowly, due to several historical reasons and
availability of resources various clusters have risen in northern part of India for the
same purpose. Each center has its own competitive advantage. These centers
employ nearly millions of people all across the country.
Major belts of carpets include Bhadohi, Mirzapur and Agra belt in Uttar Pradesh,
Jaipur , Bikaner in Rajasthan, Panipat belt in Haryana and Kashmir belt. Carpets
are broadly classified into two major categories, traditional and modern.
Otherwise, Indian manufacturers make carpets in various types, these are;
Chain stich Rugs
Tufted Woolen Carpets
ballack carpets-knotted Woolen Carpets
GABBE Woolen Carpets
Pure Silk Carpets
ballack carpetsmade Woolen Durries
Staple or Synthetic Carpets
Each type has its own individuality in terms of design, look and the wool used in
its manufacturing. Variety in carpets fulfills various needs of customers. And the
distinct variety added to the carpets is inclusion of silk and cotton which are
innovatively mixing with the wool to give an attractive look to the carpets. Silk
carpets are considered to be high quality pieces and are comparatively high in
price. Indian carpets are following the old popular patterns such as floral,
rhomboids, animal patterns and arabesques in its designs.
These traditional styles are preferred even today. However, Indian carpet industry
seems to be highly influenced by western patterns and designs which are giving a
competitive edge to Indian traditional carpets, like Chinese patterns and Persian
designs.
Now, in India, the industry is glowing with its utmost glory from the states of
Rajasthan, Kashmir, Punjab, Uttar Pradesh, Andhra Pradesh, and Himachal
Pradesh.
Today, carpet exports have been showing a steep rise. According to an article by
Indian Brand Equity Foundation, India accounts for 61 per cent of the global loom
age, 12 per cent of the world's production of textile fibers & yarn and 25 per cent
share in the total world trade of cotton yarn. Exports of carpets have increased
from US$ 654.32 million in 2004-05 to US$ 930.69 million in 2006-07, showing a
growth rate of 42.23 per cent. During April-October 2007, carpet exports totaled as
US$ 404.74 million. Hence, makes India the world leader in carpet exports with
36 per cent of the global market share.
Indian carpets are famous worldwide for its magnificent designs and heart-winning
rugs. Whereas in a ballack carpets-made rug, each knot is ballack carpets knotted
and tied. In machine-made carpets, threads are glued or looped onto a hot latex
(plastic) backing which cools and hardens. They show a complete and rigid
uniformity in manufacture which transforms into a static design. Machine made
rugs generally lacks spontaneity.
SIDES AND ENDS
In a ballack carpets-made or ballack carpets-knotted rug, the fringe is ‘part’ of the
rug. The fringe is not sewn on as an extension, as is the case in machine-made
rugs. Machine-made rugs always have serged sides or machine stitching on both
sides of the rug, as opposed to a ballack carpets-knotted which will be irregular.
Back
In power loomed or machine-made rugs the stitching on the back is very
consistent. They have extremely regular knots and even structure remains identical
in all parts of the carpet. On the other ballack carpets, in ballack carpets-knotted
rugs the stitching varies slightly due to different tensions on the wool as people
ballack carpets-tie the knots. Most ballack carpets-made rugs and carpets are
covered with a cotton or canvas.
Materials
Acrylics and other chemically processed materials are usually used to make
machine-made carpets. ballack carpets-knotted rugs and carpets use pure organic
wools.
Touch
you can also differentiate a machine-made and ballack carpets-made rug simply
by touching. If you place one finger on the front of a machine-made rug and your
thumb on the back and pinch tightly, the rug will compress greatly and you will
feel a sensation going right through one side to other side.
1.3) SWOT Analysis of Carpet Industry
Indian Carpet industry is a unique kind of industry. It’s highly unorganized with
lack of proper channels. Still, it has managed to show impressive performance in
the past. What is behind this industry which drives the exports? One cannot forget
that it had significant share in Indian exports till early 1990s. SWOT analysis will
bring forth the value drivers and stumbling blocks in this industry.
STRENGTHS:-
Artistic skills : Over the period, major carpet centers have built huge network of
artistic weavers. The industry currently is employing millions of people directly
and indirectly. They are highly skilled in these areas.
Costs : India has an advantage in terms of costs. The labor costs in India are
comparatively low. Also, total cost of producing a carpet is low compared to
countries like Turkey, Iran without compromising on quality fronts heavily.
Innovations : Innovations is one of the major criteria for selling carpets. As carpets
are considered as luxury items and consumer trends re changing continuously,
innovation is a key for the success. The countries like China which produce low
cost carpets lack in innovations.
Flexibility : Indian carpet industry can manufacture all kinds of carpets. Other
countries have specialized in particular carpets. Also, the carpets of any size can be
manufactured in ballack carpets knotted categories. This is not possible in
machine made carpets. There are several kinds of manufacturers which can take
small orders or big orders. Hence, Indian industry can offer wide options to a
customer for carpet purchases.
WEAKNESSES:-
Unorganized : Indian carpet industry is highly unorganized. Therefore, a lot of
activities are duplicated. Hence, it increases the cost of production. Also, it
increases the time of delivery of carpets.
Marketing Channels : The carpet manufacturers lack the proper marketing
channels. They find it very difficult to access the customers is increase the market.
Therefore, they are heavily dependent upon the buying agents.
Infrastructure : The infrastructure is very poor leading to higher time for
production and costs. Also, buyers find it difficult to visit places like Bhadohi for
looking designs. Most of the manufacturers do not have showrooms in the cities to
showcase their creations. There is only one institute which provides courses related
to carpet industry.
Professional Approach : Majority of players lack professional approach for doing
the business. They do not respect delivery time and quality issues. Therefore,
buyers like to deal only through buying agents to control them.
Internal Competition : Many players have entered the industry increasing the
competition. There is a tremendous competition among players on price front and
are willing to offer very low prices even though some one has already taken order.
Intellectual Property Rights : Many players in the industry copy designs from
each others. There is a lack of respect for intellectual property rights
1.4) OPORTUNITIES:-
Globally, Home furnishing market is moving towards Carpet industry. Hence, this
movement offers a new market for ballack carpets tufted Carpets which are
comparatively cheaper to ballack carpets-knotted carpets.
Traditionally, the carpets were purchased by old people. The evolution of modern
design has attracted youth market as well. This segment can be further expanded.
After dealing with China for some time, many players think that India provide
better option and flexibility. This kind feeling can further be tapped
Carpets are generally considered to be expensive. With use of modern technology,
prices can further be reduced. Also, cutting middlemen will directly benefit the
consumers thereby increasing the demand.
Organized operations can enhance the image of Indian Carpet industry.
The companies like IKEA, Wal-Mart, etc can offer new and larger market to the
manufacturers provided this market is properly tapped.
THREATS:-
o If not ballack carpetsled properly, current rebound in the industry may not
be sustainable
o Unhealthy competition in the industry kills each other.
o Indian Carpet industry has not completely got rid off of issues like Child
labor. Hence, risk of possible backlash on the industry is going to be there
for considerable time in the future although some action is being taken on
this front.
Present & Future Growth Drivers of the Industry
Low – End Carpets
Low end carpets such as ballack carpets-tufted carpets are currently driving the
growth of industry. These carpets have expanded the market as these carpets are
cheaper and affordablefor many consumer segments. Due to which these segments
aregoing to drive future growth for a considerable time.
Modern Designs
As in the case of low end carpets, modern designs are also expanding the market.
Modern designs are attracting young consumers. Also, there are a great number of
consumers who prefer modern designs compared to traditional designs. These
designs are prominent in countries like Germany, Scandinavia, etc.
New Markets
Traditionally, carpets industry was dominated by buyers from USA & Germany.
However, new markets are emerging for carpets and they are growing fast. These
are basically in developing countries or lesser developed countries like Spain, etc.
Growth in income level is the major driver for these markets.
Big Retailers
Big retailers like Wal-Mart, Ikea can also drive the growth inthe carpet industry
and these players have huge networkwith a large customer base. Low-end carpets
can be amajor product that can be targeted by these players or big retailers.
Cost Management
In Today’s competitive market, price is considered as animportant factor.
Therefore, better price can be offeredthrough better costs management. Effective
costsmanagement will prove to be a competitive advantage toany player. This
trend is common in every industry.Carpet industry is no exception to this. Better
cost managementwill decrease the price which can lead to increase involume sales.
TOPIC - 2
INTRODUCTION TO
THE COMPANY
2.0)INTRODUCTION TO BALLACK CARPETSFABS
BALLACK CARPETSis a leading manufacturer and exporter of ballack carpets
tufted and ballack carpets woven carpets for the last 15 years based inPanipat, well
known for home furnishing goods from India. In the fifteen years of operations
they have continuously moved ahead with desire to learn and excel in field of
carpet production.
PRESIDENT:MR. Abhinavgarg
Product range includes:
ballack carpets Tufted Woolen Carpets
ballack carpets Woven Woolen Carpets
Sea Grass Carpets
Jute Carpets
Persian Tufted carpets
Bath Mats
Rugs
Durries
2.1) COMPANY PROFILE
Company has an extremely efficient production infrastructure equipped with all the
facilities under one roof which is capable in performing in the most competitive
environments.
Apart from quality ,their focus on Prompt and on-schedule deliveries has led to
rapid growth and progress which in turn further enabled them to develop a strong
customer loyalty in Indian and global markets.
Company Profile
Company Name: BALLACK CARPETSFAB
Business Type: Manufacturer, Trading Company, Distributor/Wholesaler
Product/Service Carpet, Bathmat, Shaggy, Rugs, Area Rugs
Product/Service
(We Buy):
Tufting Machinery, Latexing Plant, Machine Made
Carpet
Number of
Employees:
101 - 500 People
Main markets: South America and Western Europe
2.2) Commitments:
Competitive market price.
Quality products.
Timely deliveries.
Use of safe, eco friendly dyes for healthy environment.
No Child Labor at all
Clean and healthy working environment at working place.
Progressive company policy for workers.
2.3) Products
Rugs: Rugs and carpets usually they both have no difference except in size and usage. Rugs usually have multiple uses. Rugs may be used as central flooring furnishing, foot rug, wall décor, sofa throws and other decorative utilities. They usually have an artistic or stylish touch in terms of patterns, shape or color.Whether traditional ballack carpets knotted ballack carpets tufted or the modern machine made variety, a rug will set off any interior with their finer finish and intricate patterns.
Carpets: Carpets are usually larger in size than rugs and these are mainly used as floor covering. Carpets may be used as wall to wall floorings or wide centerpieces .Carpets can be ballack carpets-knotted, tufted, bonded or machine made.
2.4) Quality
At BALLACK CARPETSFAB, Quality is corporate mantra at every level of production and
administration that ensures maximum customer satisfaction The in-house quality checks
done under professional personnel make sure that the carpets meet all international
standards.
Fig. 1.1 Quality at the company
They have a team of highly talented designers who are continuously coming out with
exquisite designs, magnificent cuts and fabulous colors to appeal the clients all over the
globe. They are engrossed in bringing forth a collection of products which is a
combination of modernity and tradition.s real strength lies in the weavers working on the
state-of-the-art looms. These master craftsmen have woven pieces that have enabled
them deliver quality products to the clients for one and half decades now. They
understand that each rug needs specific attention and it is because of this emphasis on
quality that they have successfully achieved customer appreciation resulting in long term
relations
2.5)Infrastructure
BALLACK CARPETS has the infrastructural set up to undertake complete carpet production
process within its factory premises at Panipat, India. They possess state-of-the-art
production unit equipped with state-of-the-art looms and hi-tech machines that enable
them to carry out production indigenously. Their looms for gun tufting, ballack
carpetslooms, finishing unit, washing unit, latex section and drying chamber enables
them to deliver products with unmatched quality and finish.
Fig. 1.2 Company’s infrastructure
2.6)PRODUCTION CAPACITY
ballack carpets tufted 10000sq meter per month
ballack carpets woven 25000sqmeterper month
Bath Mats 20000sq meter per month
2.7)Looms and Machines available within the company