Summer training report...

SUMMER TRAINING REPORT

Presented By: Hema Jain MBA 1st

COMPENSATION MANAGEMENT

INTRODUCTION

Compensation is a systematic approach to providing monetary value to employees in exchange for work performed. Compensation may achieve several purposes assisting in recruitment, job performance, and job satisfaction.

  Compensation management, also known as wage and salary

administration, remuneration management, or reward management, is concerned with designing and implementing total compensation package. The traditional concept of wage and salary administration emphasized on only determination of wage and salary structures in organizational settings.

OBJECTIVES OF THE STUDY

To understand the compensation policy of the company. To identify the pay structure . To identify the factors affecting compensation.

SIGNIFICANCE OF THE STUDY

  Every project carried out has its significance .There is always a

motive behind it. After the project is completed, we can found some results, some recommendation and some conclusion.

The significance of choosing this project is to understand the compensation management policy of the company.

COMPANY PROFILE

AV Services Pvt Ltd also known as AVS which has been operating in the Indianmarket for the last 8 years. We represent with some of the biggest and the most respected HR/Staffing companies around the world.

  AVS has made substantial investment to have a PAN India

reach through its 3 own office and 15 network offices. We currently cater to 3000+ associates PAN India through

our own and network offices. At AVS we keep expanding our reach as per business

volumes and client requirement. National presence – 3 own offices and 15 network offices. Scalable as per requirement.  

DATA COLLECTION & SAMPLING

Data Collection   Data collection is one of the important tasks of the research, which is based on PRIMARY and

SECONDARY DATA  Primary data:   The primary data are those data, which are collected for the first time and thus happen to be

original in character. There are some important methods:  Observation method Interview method Through questionnaires Through Schedules  In this study the primary data was gathered through the help of a questionnaire Secondary data: Secondary data is the data that have been already collected by and readily available from

other sources. Such data are cheaper and more quickly obtainable than the primary data and also may be available when primary data can not be obtained at all.

SAMPLE DESIGN

It is not possible for any researcher to include each and every member of the universe in his research process. So, he selects small portion of the universe, which is its true representative. This group is known as Sample and this process is called Sampling.

  Sampling Techniques are of two types: Non-Probability Sampling Probability Sampling  

Probability Sampling:   It is also known as “Random Sampling” or “Chance Sampling”. In it, each population element has equal chance of

selection.   It can be of following types:- Simple Random Sampling Stratified Sampling Cluster Sampling 

II. Non-Probability Sampling: In it, sample deliberately by researcher, by using his own judgement. In this, every item of universe does not have equal

chance of inclusion in the sample. It can be of following types:- Convenience Sampling Judgement Sampling Quota Sampling

SAMPLE SIZE

A total number of 100 employees responded to the questionnaire.

SAMPLE SIZE 100 Respondents (Employees) SAMPLING UNIT Individual AREA OF STUDY Study area is confined to the employees of AV Services Pvt

Ltd. ANALYSIS PATTERN Pie charts METHOD OF DATA COLLECTION Questionnaire method

Data Analysis & Interpretation

Q1:- WHAT IS YOUR ORGANIZATION'S COMPENSATION POLICY? 

Stay even with area labor market 15 Stay ahead of area labor market 0 Stay below area labor market 0 Stay even with industry pay practices 85 No formal policy 0

Interpretation:- In the study I found that 85% of the employees said that the company

compensation policy is based upon Industry Pay Practices whereas on the other hand 15% of the employees said that the company compensation policy is based upon labor market practices.

Stay even with area labor market

15%

Stay even with in-dustry pay practices

85%

Compensation Policy

Q2:- WHAT TYPES OF SALARY INCREASES ARE GRANTED TO EMPLOYEES?

Merit

80 General 0 Automatic Progression 0 Cost of Living 20 Length of Service 0

Interpretation:- In the study I found that 80% of the employees said that the Salary increase’s

granted is based upon merit or performance of the employee whereas on the other hand 20% of the employees said that in some cases some slight increase was made because of the factor like cost of living.

Merit80%

Cost of Living20%

Salary Increase's Granted

Q3:- WHAT TYPE OF INCENTIVE SYSTEMS DO YOU CURRENTLY HAVE IN PLACE?

Individual incentives 74 Small group/team incentives 0 Organization specified goal bonus 26 None 0

Interpretation:- In the study I found that 74% of the employees said that the Individual Incentives

are given to the employees and 26% of the employees think that along with the individual incentives organisational specified goal bonus was is also paid to the employees

Individual Incentives74%

Organization specified goal bonus

26%

Incentive System

Q4:- DO YOU LINK PAY TO PERFORMANCE APPRAISAL?

Yes 100 No 0

Interpretation:- In the study I found that all the employees said that their pay

depends on their performance appraisal as they said that increase in salary depends upon merit or performance appraisal of the employees.

Yes100%

Linkage b/w pay & performance appraisal

Q5:- WHAT IS THE AVERAGE OF WORKING DURATION/HOURS OF AN EMPLOYEE?

8 Hours 83 9-10 Hours 17 More than 10 Hours 0

Interpretation:- In the study I found that 83% of the employees said that the average working

period is of 8 hours whereas some of the employees said in some industries average working hours are also is in a time span of 9-10 hours.

8 Hours83%

9-10 Hours17%

Average Working Hours

Q6:- DO YOU HAVE A FORMAL JOB EVALUATION PLAN IN PLACE?

Yes 100 No 0

Interpretation:- In the study I found that all the employees said that there is a

proper job evaluation is done on the work place to check whether an employee is performing as pet the standards set or not and to find out how much effectively he/she is performing at the work place.

Yes100%

Job Evaluation

Q7:- PLEASE INDICATE WHICH OF THE FOLLOWING BENEFITS ARE PROVIDED TO EMPLOYEES:

Employee assistance program 30 Financial planning 0 Credit Union 0 Employee savings plan 70 Health club/on-site exercise facilities 0 Legal counseling 0 Loan for home/personal computer 0

Interpretation:- In the study I found that 70% of the employees said that Employee savings plan

benefits are provided whereas on the other hand 30% of the employees said that in terms of benefits employee assistance programs are also there

Employee assistance program

30%

Employee savings plan70%

Benefits Provided

Q8:- HOW OFTEN ARE EMPLOYEES PAID?

Weekly 0 Every two weeks 0 Bi-Monthly 0 Monthly 100

Interpretation:- In the study I found that all of the employees said that the payment is done on a

monthly basis to them.

Monthly100%

Payment Made

Q9:- ON WHAT BASIS ARE EMPLOYEES REIMBURSED WHEN TRAVELING?

Actual Costs 100 Per Diem 0

Interpretation:- In the study I found that all of the employees said that the reimbursement

payment is made on the basis of actual costs.

Actual Costs100%

Reimbursement Made

Q10:- DO YOU CONSIDER THE COMPETITORS PAY PACKAGE WHILE DETERMINING THE PACKAGE FOR YOUR EMPLOYEES?

Agree 0 Strongly Agree 77 Disagree 23 Strongly Disagree 0

Interpretation:- In the study I found that 77% of the employees are strongly agree with the fact

that the organisation considers the competitors pay in determining the compensation package and 23% of the employees are disagree with the fact that the organisation considers the competitors pay in determining the compensation package

Strongly Agree77%

Disagree23%

Consideration of Competitor’s Pay Package

Q11:- WHICH TYPE OF COMPENSATION PAYMENT SYSTEM DO YOU PREFER?

Fixed Pay System 20 Variable Pay System 80 Balance Debt Method 0 All 0

Interpretation:- In the study I found that 80% of the employees prefer variable pay

system whereas 20% of the employees prefer fixed pay system.

Fixed Pay System20%

Variable Pay System80%

Compensation Payment System

Q12:- THE MAJOR FACTOR AFFECTING PAY STRUCTURE IS

Corporate Culture & Values 15 Management Philosophy 0 External Economic Conditions 85

Interpretation:- In the study I found that 85% of the employees said that external economic

conditions is one of the major factor that affects pay structure whereas 15% of

the employees said that Corporate Culture & Values also affect pay structure

Corporate Culture & Values15%

External Economic Conditions

85%

Factor Affecting Pay Structure

LIMITATIONS

The following are the major limitations that I had faced during the survey

The study period is limited and it is not possible to collect necessary information.

Some employees give half-hearted response or false information, which may lead to wrong conclusion.

Some of the employees do not co-operate during the survey.

FINDINGS

  85% of the employees said that the company compensation policy is based

upon Industry Pay Practices whereas on the other hand 15% of the employees said that the company compensation policy is based upon labor market practices.

On the basis of study it can be said that Increase in Salary is based upon merit & performance appraisal of the employees.

Most of the employees said that Individual incentives are paid by the organisation.

Most of the employees said that the average working period is of 8 hours. Employees said that there is a proper job evaluation was done on the

workplace. 70% of the employees said that Employee savings plan benefits are provided

to them. On the basis of study it can be said that organisation also takes into

consideration their competitor’s pay structure in deciding the compensation package.

SUGGESTIONS & RECOMMENDATIONS

Provide Health Insurance facilities to the employees. Provide Rewards to Best performers and design a plan that

identifies best performers. 

CONCLUSION

THANK YOU