A STUDY ON HRIS WITH REFERENCE TO COMPENSATION AND BENEFITS MANAGEMENT FOR MACMILLAN INDA LTD. Submitted in partial fulfillment of the requirements of for the award of the degree of MASTERS OF BUSINESS ADMINISTRATION of BANGALORE UNIVERSITY Submitted By Mr. RAJESH.V.D Reg. No. 05JJCM6039 Under the guidance of DR. ARUN KUMAR DEAN 1
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Study on HRIS With Refference to Compensation and Bennefit.
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A STUDY ON HRIS WITH REFERENCE TO
COMPENSATION AND BENEFITS MANAGEMENT FOR
MACMILLAN INDA LTD.
Submitted in partial fulfillment of the requirements of
for the award of the degree of
MASTERS OF BUSINESS ADMINISTRATION
of
BANGALORE UNIVERSITY
Submitted By
Mr. RAJESH.V.D
Reg. No. 05JJCM6039
Under the guidance of
DR. ARUN KUMAR
DEAN
KRISTU JAYANTI COLLEGE OF MANAGEMENT AND TECHNOLOGY
BANGALORE
2007
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STUDENT’S DECLARATION
I, Rajesh, hereby declared that this project titled “A study on HRIS with
reference to compensation and benefits management for Macmillan” submitted by
me to the department of Management of Bangalore University in partial fulfillment of
requirement of MBA programme is a bonafide work carried by me under the guidance of
Dr. Arun Kumar. This has not been submitted earlier to any other university or institution
for the award of any degree diploma / certificate or published any time before.
Rajesh V D
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CERTIFICATE FROM GUIDE & HEAD OF THE INSTITUTION
Certified that this declaration entitled “Study on HRIS with reference to Compensation
and Benefits management for Macmillan India Ltd”, submitted in partial fulfillment for
the award of MBA Degree of Bangalore University was carried out by Mr. Rajesh under
the guidance of Dr. Arun Kumar. This has not been submitted to any other university or
institution for the award of any degree/ diploma/ certificate.
GUIDE DEAN MBA DEPARTMENT
PRINCIPAL
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Acknowledgement
My project work would have become practical without the help of grace of the
“Almighty” and timely advice and creative support rendered by many. I express my
affectionate thanks to The Principal, Kristu Jayanti College, and Bangalore for giving
me an opportunity to do this training.
I am highly indebted to my faculty guide Dr. Arun Kumar department of
management studies for inspiring me and for his valuable guidance and assistance
provided. I also thank all other staff members of the department for guiding me in my
training. I would also thank Mr. Abijith Ganguly (HR Manager) of Macmillan India
Ltd, for permitting me to do the practical training in the organization.
I express my sincere gratitude and special thanks to all employees for their
valuable suggestions and keen interest which are extremely helpful in shaping this project
work to success.
Rajesh.V.D
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EXECUTIVE SUMMARY
The project “study on HRIS with reference to compensation and benefits” was conducted
at McMillan India Ltd. The project basically dealt with building the compensation and
benefits modules as a part of the Human Resource information system, which was being
implemented in the organization using an Enterprise Resource planning (ERP) package,
SAP – which suited most of the requirements and functions of Macmillan.
The project was initiated by putting down all the activities that were currently being done
at the organization and the activities, which should be pursued in future.
The project involved studying the existing modules of compensation and benefits and
trying to improve it with added features for an easy automation. For this to achieve, there
was a small research conducted by interviewing employees and clients (who have bought
this package or have designed one by their own) by use of a questionnaire designed by
me. With the help of the research I got insight into the latest features that are used in the
compensation and benefits, which helped me to design the needed modules of
compensation and benefits. The modules are designed in such a way that all the activities
are in a sequential order.
The modules designed consisted of every detail beginning from the compensation
philosophy the company should use to the various benefits the company can offer. It
involved designing of various forms, which is built with the idea of simplifying the
process to the maximum extent, and to make it very clear how each form should be used.
The entire modules are looked into form the strategic Human Resource perspective,
which stresses on both the qualitative and quantitative issues compensation and benefits
process. Quantitative measures were particularly used in a few areas to reduce
subjectivity.
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The project is provides a clear distinction between who is authorized to use which form,
so that there is no mixing up of decision making and results by un concerned or
unauthorized people. The process is made very clear by specifying the objectives of each
activity in the process.
In short, the project deals with the entire spectrum of compensation and benefits from
start to finish in a sequential order to help the employees use each form (each activity) to
the fullest for organizational benefit and to achieve positive results by the end of the
process.
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LIST OF CONTENTS
Chapter No Topic Page No
1 Introduction 1 - 4
2 Company profile 5 - 9
3 Research design 10 - 12
4 Analysis and interpretation of the data 13 - 73
5 Summary of conclusion and recommendation 74 - 77
6 Bibliography 78 - 79
7 Annexure 80 - 83
7
LIST OF TABLES
Table No Tables Page No
1 Levels and responsibilities 26
2 Job evaluation points 28 - 29
3 Job evaluation results 39
4 Compensation details 40 - 41
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LIST OF CHARTS
Chart No Charts Page No
1 Internally consistent compensation structure 25
2 Compensation administration process 27
3 Establishing pay structure 37
4 Job evaluation results 38
Figure No Figures
1 Compensation policies 62
2 Variable pay 63
3 Analysis of compensation and benefits 64
4 Compensation philosophy 65
5 Job evaluation technique 66
6 Compensation administration process 67
7 Salary structure 68
8 Compensation statistics 69
9 Variable pay 70
10 Incentive plan 71
11 Staff recognition 72
12 Benefits 73
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1. INTRODUCTION
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1. INTRODUCTION
The project basically dealt with building the compensation and benefits modules as a
part of the Human Resource information system, which was being implemented in the
organization using an Enterprise Resource planning (ERP) package, SAP – which suited
most of the requirements and functions of Macmillan .The project involved studying the
existing modules of compensation and benefits and trying to improve it with added
features for an easy automation.
For this to achieve, there was a small research conducted by interviewing vendors (who
already have a package designed for compensation and benefits for a readymade use by
the companies) and clients (who have bought this package or have designed one by their
own) by use of a questionnaire designed by me. With the help of the research I got insight
into the latest features that are used in the compensation and benefits, which helped me to
design the needed modules of compensation and benefits
It involved designing of various forms, which is built with the idea of simplifying the
process to the maximum extent, and to make it very clear how each form should be used.
The entire modules are looked into form the strategic Human Resource perspective,
which stresses on both the qualitative and quantitative issues compensation and benefits
process. Quantitative measures were particularly used in a few areas to reduce
subjectivity.
A Brief Introduction of The Company
Macmillan is one of the largest and best-known publishers in the world. It is
characterized by high-quality academic, educational, fiction and non-fiction publishing in
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many forms: educational course materials, science, technology and medicine, college
textbooks, dictionaries, monographs and reference materials.
A unique player in India’s education market, Macmillan India enjoys a cutting-edge
niche as partner-in-progress in the socio-economic development of the country. It is in
this field that Macmillan's flame burns the brightest – publishing educational books and
materials for over 100 years.
The company has the distinction of continuity in India’s fragmented educational market –
which is also amongst the largest and the fastest growing in the world. India has a million
schools however, a large part of the school market is closed to private publishers since
the state governments themselves publish books for state board schools. It is hoped that
state-level educational publishing will be opened to private publishers in due course. This
would be a huge and an exciting opportunity. The Indian publishing community consists
of over 5,000 publishers but major and organized players are few.
Macmillan India has over 2,500 titles in its list and has played a significant role in the
growth and success of Indian writing. The company has relationships with over 15,000
schools all over India and with its 22 offices and showrooms, possibly the widest all-
India network.
As a major player in providing typesetting, data coding and conversion and editorial
services to publishers globally, Macmillan has been a pioneer in the information
technology-enabled service (ITES) space. It started its export-oriented typesetting
operations in 1975. Mainly British and European publishers have driven the market so far
but now US publishers are looking actively at outsourcing to India. This will have a
positive impact on the current export market estimated to be around Rs 8,000 million
(US$ 181.82 million) (Source: Industry estimates). Macmillan employs 3,354 staff with
about 1,500 in the ITES activity.
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Industry Profile
Book Publishing is the industry concerned with the production of literature or
information – the activity of making information available for public view. In some
cases, authors may be their own publishers.
Traditionally, the term publication refers to the distribution of printed works such as
books and newspapers. With the advent of digital information systems and the Internet,
the scope of publishing has expanded to include websites, blogs, and the like.
As a business, publishing includes the development, marketing, production, and
distribution of newspapers, magazines, books, literary works, musical works, software
and other works dealing with information.
Some of the major players are:
Macmillan India ltd
Oxford press
Himalaya publishing house
S.chand publications
Pearson Education
Prentice hall of India pvt ltd
RDSA publishers
The Indian publishing community consists of over 5,000 publishers but major and
organized players are few. The above mentioned are some of them. Mainly British and
European publishers have driven the market so far but now US publishers are looking
actively at outsourcing to India. This will have a positive impact on the current export
market estimated to be around Rs. 8,000 million (US$ 181.82 million) (Source: Industry
estimates).
5
COMPANY PROFILE
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2. COMPANY PROFILE
Daniel and Alexander Macmillan, two brothers from the Scottish Isle of Arran, founded
Macmillan in 1843.
Daniel was the business brain, while Alexander laid and the literary foundations,
publishing such great authors as Charles Kingsley, Tomas Hughes, Lewis Carroll, Alfred
Lord Tennyson, Henry James, Tomas Hardy, Rudyard Kipling and H.G.Wells.
As the company evolved, the Macmillan family’s vision continued to inspire the
publishing of major writers including WB Yeats, Sean O’Casey, John Maynard Keynes,
Charles Morgan, Hugh Walpole, Margaret Mitchell, C.P.Snow and Rumer Godden.
INERNATIONAL EXPANSION
An ambitious expansions programme was initiated in the late 1960s when Harold
Macmillan retired from politics after his spell as Prime Minister and Became chairman of
the company.
Serious academic, educational and literary publishing was followed by significant growth
in reference programme and college textbooks as well as educational and scientific
journals.
New international opportunities were grasped and publishing operations were set up in
Japan, Mexico and the emerging markets of Africa and Asia.
MACMILLAN TODAY
Macmillan is one of the largest and best-known international publishers in the world.
High-quality academic characterizes it and scholarly, educational, fiction and non-fiction
publishing in many forms: from STM and social science journals to serious non-fiction
and literary fiction; academic monographs and reference.
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Macmillan operates in over seventy countries. The diversity and relative autonomy of the
individual companies within the group ensures a vibrancy and local relevance to its
publishing in all markets.
A privately owned company (once owned by the Macmillan family it is now wholly
owned by the Verlagsgruppe Gorge von Holtzbrinck, a German family group), one of the
Macmillan’s strengths is its ability to focus on organic development and investment for
the long term. Macmillan prides itself on a willingness to innovate and on employing
people with the creative and business sense to develop and implement new ideas. Hence,
for example, in current years it has been able to develop ambitious online educational
resources-such as the Macmillan English Campus-and to invest in growing list of
scientific journals ambitiously, extending the nature philosophy and brand to a number of
new ventures.
Macmillan is particularly unusual in the publishing world in its commitment to service. It
is one of the only large publishing group that serves third party clients and its own
companies with services including typesetting and data capture, web design and
development in India, print sourcing facilities in the far east, and warehousing and
fulfillment in the UK, USA and, Australia. Its clients include many other publishers, from
Reed Elsevier through Bloomsbury to yellow pages.
Internationally, the group consists of five main operational units:
1. Nature publishing group (NPG): scientific, technical and medical journals and
reference.
2. Palgrave Macmillan: academic publishing in humanities, social sciences and
business.
3. Pan Macmillan: fiction and non-fiction for adults and children.
4. Macmillan education: English language teaching and general curriculum learning
materials for international markets.
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5. Publishing services: book and journal order fulfillment, warehousing and
distribution, printing and electronic production, web development and information
processing.
PRESENT OWNERSHIP
Verlagsgruppe George von Holtzbrinck GmbH, a large media group created in 1971,
owns the Macmillan group. Holtzbrinck owns around 40 companies apart from
Macmillan and is headquartered in Stuttgart.
Its interests include book, magazine and news paper publishers and new media firms.
The group’s portfolio is built upon five key areas:
1. Fiction and non-fiction book publishing.
2. Education science publishing.
3. Business and finance/ national newspapers.
4. Regional newspaper and printing.
5. Electronic media.
Industry Profile
Book Publishing is the industry concerned with the production of literature or
information – the activity of making information available for public view. In some
cases, authors may be their own publishers.
Traditionally, the term publication refers to the distribution of printed works such as
books and newspapers. With the advent of digital information systems and the Internet,
the scope of publishing has expanded to include websites, blogs, and the like.
As a business, publishing includes the development, marketing, production, and
distribution of newspapers, magazines, books, literary works, musical works, software
and other works dealing with information.
9
Some of the major players are:
Macmillan India ltd
Oxford press
Himalaya publishing house
S.chand publications
Pearson Education
Prentice hall of India pvt ltd
RDSA publishers
The Indian publishing community consists of over 5,000 publishers but major and
organized players are few. The above mentioned are some of them. Mainly British and
European publishers have driven the market so far but now US publishers are looking
actively at outsourcing to India. This will have a positive impact on the current export
market estimated to be around Rs 8,000 million (US$ 181.82 million) (Source: Industry
estimates)
10
3. RESEARCH DESIGN
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3. RESEARCH DESIGN
Hypothesis:
Design of human resource information system with reference to
compensation and benefits are highly effective in the organization.
Population:
The study consists of over 150 employees.
Sample size:
Selected sample size for the study would be 50 employees.
Selected on a systematic sampling frame work.
Statistical technique: Suitable statistical technique will be used for the
Analysis of the data.
Scope of the study:
Human Resources Management (HRM) is the attraction, selection, retention,
development, and utilization of labor resource in order to achieve both individual and
organizational objectives. Human Resources Information Systems (HRIS) is an
integration of HRM and Information Systems (IS). HRIS or Human resource Information
system helps HR managers perform HR functions in a more effective and systematic way
using technology. It is the system used to acquire, store, manipulate, analyze, retrieve,
and distribute pertinent information regarding an organization's human resources. A
human resource information system (HRIS) is a system used to acquire, store,
manipulate, analyze, retrieve, and distribute pertinent information about an organization's
human resources.
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Limitations of the study:
1. The time period taken for the study is only one month, this is very less time to
conduct detailed study about the HRIS
2. The organization should be cooperative enough to do the study.
3. The support from clients and vendors should be cooperative during the survey.
Objectives of the study:
The principle objectives of the study are to analyze the following aspects such as;
To know about human resource information system.
To design a human resource information system with reference to compensation
and benefits.
To analyze and interpret the data.
To find out the recommendations.
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4. ANALYSIS AND INTERPRETATION OF
DATA
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4. ANALYSIS AND INTERPRETATION OF DATA
HUMAN RESOURCE INFORMATION SYSTEM
DEFINATION:
An HRIS is a management system designed specifically to provide managers with
information to make HR decisions.
1. It is a management system and is used specifically to support management
decision-making.
2. The need for this kind of information has increased in the last few years,
especially in large and/ or diverse companies, where decision-making has been
moved to lower levels.
3. Large companies generally have the advantage when it comes to HRIS’s, the cost
to develop an HRIS for 200 hundred people is usually close to that for 2000
people, so it is a better investment for large companies, larger companies tend to
have systems that have a fair degree of customization.
HRIS systems include the employee name and contacts information and all or some of
the following:
Department, job title, grade, salary, salary history, position history, supervisor, training
completed, special qualifications, ethnicity, date of birth, disability, veterans status, visa
status, benefits selected etc.
HRIS systems include reporting capabilities. Some HRIS track applicants before they
become employees. Some HRIS systems are interfaced to pay roll or other financial
systems.
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HRIS APPLICATIONS
1. Personnel.
2. Position control.
3. Position clarification.
4. Affirmative action.
5. Automated increase processing.
6. Flexible and traditional benefits administration.
7. Salary survey.
8. Pool accounting budgeting.
9. Salary base component of the budget preparation facility.
HRIS offers a wide array of workforce management tools. From recruiting, through
compensation, performance and benefits administration, and on to COBRA.
JOB AND SALARY HISTORY- tracks dates, rates, locations, divisions, departments, and
salary grades.
Computes and stores compo-ratios, percent-of-range, change amounts, and change
percents. Also computes and stores pay period equivalents for a wide range of pay
frequencies.
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BENEFITS TRAKING - computes full cost for employee, employer, and dependents.
Support simultaneous prior, current, and open enrollment. Reconciles carrier statements