Internship Report 1

Summer Internship Report

“Organizational Study”

A study conducted at Facil Internet Technologies Private Limited

BY:

Prasanna B

III SEMESTER, MBA

11MB8607

Guide Name

NSB

Project Report Submitted to the University of Mysore in Partial Fulfillment of The

Requirements of III Semester MBA Degree Examination 2011-13


NSB School of Management Studies

Bangalore - 560068

TITLE OF THE PAGE



Bangalore-560068

Date:-

CERTIFICATE

This is to certify that Prasanna B student of III Semester MBA course has prepared

this report entitled “ Organizational Study “, Mysore in Partial Fulfillment of the

Requirements of MBA Degree examination of 2011-13.

Azam Illiyaz

Placement Director



Bangalore-560068

Date:-

GUIDE CERTIFICATE

The project report titled “Organizational Study “is submitted by Student Name

under my guidance. This report is submitted to the University of Mysore in partial

fulfillment of the requirement s of III semester MBA Degree examinations of

2012.

Prof.(PROJECT GUIDE)


DECLARATION

I ,Prasanna B student of II semester MBA,NSB School of Management Studies Bangalore, hereby declare that this project Report, entitled” “ during the year 2012 has been prepared under the valuable guidance and supervision of Prof. ,toward the fulfillment of the requirement for the award of Master’s Degree in Business Administration, University of Mysore.

I further declare that this project report is a result of my own efforts and that it has not been submitted in part or in full to any other University or Institution for the award of any degree or Diploma.

Place: -Bangalore Prasanna B

Date: 11MB8607


CHAPTER 1

INTRODUCTION


Introduction:

Organizational Study is done in order to know about the operations of an organization

structure, vision , mission and services/products offered by a organization. Also organization

should also cover the various departments of an organization. This is because in order to know

about an organization. It helps to see how theoretical concepts are applied practically and this

report also gives a significant importance to market research since the main part of focus is

market research on payroll process which is also a comparative analysis.

Market Research is done in order to find out the potential market for a company’s product or

services. This is mainly to find out whether the product or service will be able to gain a part of

market share. Also market research helps the company to find out the expectations of consumer

from a service.

A research is done in order to acquire knowledge similarly market research is

done in order to find out the consumer behavior, macro and micro environmental factors that

Influence the success of a service. Generally a Research has different steps namely

Identification of research problem

Literature review

Specifying the purpose of research

Determine specific research questions or hypotheses

Data collection

Analyzing and interpreting the data


Reporting and evaluating research

Similarly here A Study on Comparative Analysis of Market Research Payroll

process is market research that helps to in order to get complete knowledge about industry

structure, market potential, Consumer behavior and segments to focus on future.

Generally research is based on a hypothesis. This market research is based on the

hypothesis of a payroll process.

. A hypothesis is a testable statement that gives the relationship between two or more

variables.

There are two kinds of hypothesis namely

1. Null Hypothesis

2. Alternative Hypothesis

A null hypothesis is a statement that is given to prove that there is no statistical

significance between two different variables. The following is an example of null hypothesis

Mr VB sees that his investment strategy produces higher average returns than simply

buying and holding a stock. The null hypothesis claims that there is no difference between the

two average returns, and Chuck has to believe this until he proves otherwise. Chuck sees that his

investment strategy produces higher average returns than simply buying and holding a stock. The

null hypothesis claims that there is no difference between the two average returns, and Chuck has

to believe this until he proves otherwise.

The alternative hypothesis for the following statement is the investment strategy gives

him the maximum return.

Alternative hypothesis (or maintained hypothesis or research hypothesis) is the

opposite of the null hypothesis. It is the main thing that is useful to conduct research.

Summer Internship Report Hypothesis testing is done on the basis of both null and alternative hypothesis. Here in this

market research the following is the hypothesis given

Objective: To find out whether there is a market for payroll outsourcing

Null Hypothesis: There is no market for Payroll Outsourcing.

Alternative Hypothesis: There is market for Payroll Outsourcing.


CHAPTER 2

INDUSTRY PROFILE


Industry Profile

A company is small unit of the economy. An Industry is a combination of two or more

companies. Here a simple example can be given

Maruthi Udyog Limited is a company that manufactures cars.

The entire Industry is known as Automobile Industry.

Similarly Facil Internet Technologies is a company. It comes under the Human Resource

Services Industry.

The industry name itself shows the function of this industry. This industry has gained more

reputation because of increasing business complexities and growth of various industries and

business enterprises.

There are different services offered by HR services these are mainly classified into

Temporary Recruitment

Permanent Recruitment

Other Segments

Temporary Recruitment consists of three different sub categories namely

Professional Staffing

General Staffing White Collar

General Staffing Blue Collar

The first category is Professional Staffing it is particularly for technically

skilled professionals in the IT and Engineering.

Summer Internship Report General Staffing White collar is a category which provides skilled labor

On the payroll of large companies in ITES, Retail and Telecom Sectors.

General Staffing Blue Collar is a category which provides employees to various

Factories and plants.

The following is the different players in the temporary recruitment market.

Key players

Team Lease

Manpower

Adecco

Mafoi

Ikya,

Kelly

Allegis

WDC and

Future Focus

The market worth of temporary recruitment is INR 172 billion which consists of professional

staffing market which has a value of 59 billion INR and General Staffing which has a value of

INR 113 billion .

Permanent Recruitment consists of two different categories namely

Search

Recruitment

Search is done in the levels of CXO and top management and recruitment is

done for middle and junior level employees of an organization.

The following are the key players in the search market

o Egon Zehnder

o Heidrick &Struggles

o Russel Reynolds,

o Spencer Stuart,

o Korn Ferry and


o Transeacrh Amrop

The following are the different players in the recruitment market

Key players:

o ABC Consultants,

o Mafoi And

o Kelly

The market value of Search is INR 6-7 billion in Financial Year 2011

The market value of Recruitment is INR 23-25 billion in Financial Year 2011

The following are the other services that are provided by different companies in

HR Services industry namely

o Payroll Administration

o Employee Training

o Resume Writing

o Back Ground Interviews and Benefit Consulting

o Online Job Portals

The other segments contribute only to a small percentage of HR Industry Growth exactly

14% of the whole industry


14

13

73

Temporary Permenant

Others


73% of Market size is occupied by Temporary Recruitment

13% of Market size is occupied by Permanent Recruitment

14% of Market size is occupied by Other Services.

The majority of market size is occupied by temporary recruitment. This

is because of the global economic slow down many companies wanted to have minimum bench

strength in order to maintain its competitiveness.

Growth rate of HR Industry:

The next thing that is to be considered while analyzing a industry is

to have a idea of growth rate of the industry.

Similarly here the growth of the HR services Industry is analyzed in a

brief manner. This is because the particular segment of payroll process falls under this industry.

And also the analysis of the industry also helps to find the growth level along with the potential

of the market.

Here in this market research this analysis of industry is much useful

because the growth of an individual company depends on the growth of the entire industry. To

Have a clear understanding of growth rate generally diagrams and graphs are used to depict the

growth . Because symbols and pictures are much more effective in communicating results to the

end users.

So here a line graph which shows the growth of the industry.


FY 08 FY 09 FY 10 FY 110

50

100

150

200

250

127

170

202

228

Note: In this Graph the X axis denotes the financial year and the Y axis denotes the market

value in Billion Indian Rupee


The following diagram shows the market growth of HR services Industry.

The market size of HR Services Industry in FY 08 was 127 Billion INR and the market size in

the year FY2011 228 billion.

Though the initial growth of HR Services Growth is very high later it

declined. The initial growth was 33% at FY 08 and the growth at FY11 was 12%. Though the

value of market is increased from 127 billion INR to 225 billion INR the growth rate is reduced

this is mainly due to the global economic slowdown that caused a decline in industry growth and

which in turn affected the overall employability,expansion etc.

Payroll Processing:

Payroll processing comes under other services of HR Services

Industry.

Payroll processing services are gaining significant importance because of

increasing complexities in business and high expenditure on HR and Personnel.

Payroll is the Salary of employees working in an organization. Payroll is

Computed by making certain deductions and also adding allowances. In order to process payroll

Certain statutory regulations must be known. This is because certain deductions are to be made

according to the legal regulations of the central and state governments

Generally the following deductions are made from a person’s

salary/compensation of an employee they are

Professional Tax

Income Tax

Summer Internship Report Provident Fund

ESI

Professional Tax

Professional Tax is the subject of State Government. The following is the

Professional Tax that is prevailing in Karnataka

0- 10000 Nil

10001-14999 150

Above 15000 200

There are certain states without professional tax Rajasthan Delhi and Union

Territories

Income Tax:

Income Tax is a tax levied by the Government of India .This tax is levied on the

basis of Income Slabs. This is a tax that is levied by the central government

The following table shows the income slabs along wit the tax rates

Provident Fund:

Provident Fund is the deduction made from an employee’s salary structure.

Summer Internship Report A company is eligible for provident fund if the number of employees is at least 20.

12% is deducted from the gross salary. And the amount is deposited in the

Employee Provident Fund Account.

This is beneficial because

Employees are eligible to get loan from PF account after five years.

Also the legal heirs are eligible to get financial compensation in case

of death of the employee.

After 10 years the employee is eligible to get pension.

ESIC:

Employees State Insurance Corporation is a organization which is much helpful to

the employees. The employees are eligible to get medical benefits under this scheme. The

employee is eligible to get into ESIC Scheme

If the monthly income of the employee is upto Rs 10000 .

The following is the contribution that is to be made by the employeer and employee

1.75% from the employee

4.75% from the employer

Tax Deduction at Source:

This is also a kind of deduction that is to be made on the

employees salary structure.

Apart from deductions certainly there are certain allowances that are to be made. The following

are the different kinds of allowances that

Summer Internship Report Basic Pay

HRA(House Rent Allowance)

Dearness Allowances

City Compensatory Allowances

Arrears

Bonus and Incentives

Generally these are the things which are to be considered while maintaining the payroll in a

company or business enterprise.

There are three different kinds of payroll maintenance namely

Manual

Payroll outsourced to a Vendor

Maintenance of Payroll

Manual Payroll process:

A manual process is one which a company’s HR manager/contact person

maintains the payroll of the company by using manual methods. This also includes usage of

spreadsheets like excel, and common accounting software like Tally.

Payroll outsourced to vendor:

Some companies have their payroll outsourced to vendors or payroll

service providers who takes care of the payroll process of the companies. They produce Payslips

on the basis of information provided by their clients.

Payroll Software

Summer Internship Report Companies which are of large size is capable of having their own payroll

software. Also sometimes large companies have the capability to build their own software for

their payroll process.

Generally there are two kinds of payroll software’s namely

Online Payroll Software

Offline Payroll Software

In a online payroll software the employees are capable of accessing their

payslips through websites.

Offline Payroll software is a one software for which access is restricted to

other people.

Outsourcing is a process of contracting out the business process. Similar to this the

payroll of a company is outsourced to another company which is specialized in managing payroll

this is also called as payroll outsourcing.

There are different companies that are doing payroll process. The following are the

main advantages of payroll process outsourcing namely

Economical

Time Saving

Avoids Penalties

Can concentrate on their main business activities


CHAPTER 3

COMPANY PROFILE


Company Profile:

Now in chapter 3 we do come to a company profile. Generally a company, firm or a

business enterprise comes at the bottom level of an economic importance. A company is a micro

segment of a economy. Every company has its own profile with its own products/services vision

mission and the strategy management structure and standard operating procedure(SOP). Fa`cil

Internet Technologies Private Limited has its own vision and mission strategy objectives and

management structure. Here in this report we are going to see the profile of the company from

which the study was conducted.

Facil Internet Technologies is a leading technology organization founded by seasoned

management professionals and alumnus of IIM and headquartered in the “Silicon Valley of

India”, Bangalore.

Facil aims to make technology affordable, convenient and scalable for Enterprises,

Small and Medium Enterprises (SME) and Consumers with an “Outside-In” Approach. The

“Outside-In” Approach is aimed at creatively delivering value to customers through “Customer

Centricity” and “Customer Intimacy” through “Collaboration” and thereby maximizing long-run

shareholder value.

The following Diagram depicts the four pillars which Facil Internet Technologies

operates namely


Value Creation:

Value is a term that is used in corporate world. Enterprises today aim at providing

maximum value for their customer by providing products/services which are of superior quality.

Facil also aims at maximizing value to the customers by providing superior quality of services.

Innovation:

Innovation is the creation of better or more effective products, services

Strategy & Execution:

Strategy and Execution are the two important things that are must for a business

enterprise to be successful. At Fa`cil the management team is responsible for formulating good

strategy. Similarly after strategy formulation the execution is very important .Fa`cil has a very

good.

Summer Internship Report Quality:

Quality is also a very important factor for success of a service in the market. The

service or product must have quality. Also the service should be rendered at time to the

clients/customers

Organizational Chart:

Organizational chart is the way in which the management of a company is

structured. Generally the organizational chart/hierarchy chart is designed mainly on the basis of

two parameters namely

Nature of business

Size of the organization.

In case of a FMCG company the organizational structure is designed

separately on the basis of product categories.

In Facil Internet Technologies the organization structure is designed in “outside

in approach” this is because the company believies that the customer is the key to attain business

Objectives. The Board, CEO Senior and middle level of management are assigned to the

customer in order to make the things done for them.


As Facil is a startup it is a having a Flat organization (also known as horizontal organization) hierarchy which means only few or no levels of intervening management between staff and managers. The idea behind is that well-trained workers will be more productive when they are more directly involved in the decision making process, rather than closely supervised by many layers of management.

3.2 Advantages

Customer-Centric Focus

People who service customer needs understand who the target audience should be, what their needs are, how they view pricing, and how to sell the product. In a flat organization, managers are brought into the process of


accomplishing work for clients while workers are asked to make more decisions, bringing them more into the management arena. A flat organization moves everyone closer to the customer so that everyone understands the needs of those people using the product or service.

Employee Empowerment

Less managers mean that in many cases, employees need to be able to make decisions without intervention from a higher layer of authority. More training of employees so that everyone better understands how a company can achieve its

goals and keep customers happy. In the long term, employees are freer to service the customer as they'd like, which leads to higher retention of employees with higher job satisfaction and also more satisfied customers.

Flexibility

Organizations relying on a flat structure need to cross-train employees to fill in for others quickly when special situations arise. This cross-training makes the organization more reflexively when problems arise, and creates a speedy growth

business, which is able to solve customer problems and fix any complaints that arise faster than a traditional organization.

Accountability

Often in a traditional operation it's easy to "pass the buck" to another employee. Because a flat organization needs well-defined areas of focus, employee accountability is much higher. This makes it easier for

managers to assess strengths and weaknesses of employees and look for sales or efficiency opportunities in the system.

Cost

A flat organization is less costly because there are less people in the management chain and more persons touching the end product or service. Cost per piece of product falls dramatically as layers of management

overhead are reduced. New hire training costs also lower as retention levels increase.


3.3 Disadvantages

Confusing Leadership

In a flat organizational structure, the layers of leadership are few but leadership tends to be more organic in nature. Since managers are on equal footing and involved in the same projects together, they may give employees different tasks in a confusing manner. Unless the process is very clear, an employee may be trying to work for two bosses at the same time, leading to confusing and contradictory instructions.

Limited Structures

Flat organizational structures can only last so long. As a business grows and eventually goes public, the flat structure cannot stay. A public business needs a board of directors to evolve into a corporation, and a more complex business structure to expand into multiple branches.

Employee Role Confusion

Just as manager roles can become confused in a flat structure, so can employee roles. An employee may go to work for a flat organization expecting to do one job, but find out that pieces of many other jobs are also required as needed. This makes it difficult for some employees to focus and specialize at their jobs.

3.4 Impact on Employees

AccuracyFlat organizations do not have this issue as there are less layers or people for the message to travel across. Communication accuracy increases greatly in flat organizations.

SpeedSpeed of communication is a big advantage for flat organizations. In a flat organizational structure, only one or two approvals are usually necessary and this speed allows new products and services to be implemented faster and with less red tape. Speed increases with fewer levels of management.


OwnershipFlat organizational structures produce a greater degree of ownership within an organization. Employees who are closer to the customer are more accountable for their decisions and can take action on the spot to please a customer. Your employees feel more empowered and responsible for their actions when they do not have to seek permission from several layers of management. Ownership of your employee's job duties is a major benefit of flat organizations. Employees act more like owners when they feel that their decisions affect the success and profitability of your company.

EffectivenessYour employee's effectiveness also increases in a flat organization. Rules, regulations and reporting structures are much less complicated. Understanding expectations and assignments is easier when there are only one or two managers involved in supervising an employee or department. Conflicts between departments is reduced with a flat organizational structure and cooperation increases when everyone needs the assistance of others to succeed. Fewer layers of management allows your associates to operate with greater flexibility which leads to fewer conflicts and increased effectiveness for everyone.

Management Team:

MR. B. S. RAO

Chief Executive Officer

B S Rao popularly known as Srini, is a Seasoned Management Professional, Certified “Lean

Six Sigma Black Belt” and a Certified Process Professional (CPP) with over two decades of rich

and diverse experience in Strategic Business Management, Successful Start-up’s, Business

Turnaround's, Strategic Planning in the IT, Telecommunication Industries and Alliances,

Management Consulting.

Srini is an alumnus of IIM, Bangalore and holds a Graduate Degree in Computer Sciences and

Triple Master Degree’s in Management.

In the past, he has headed organizations and managed businesses for Global Multinationals such

as Singapore Telecom, Reliance Communications Ltd, GTL Limited and other leading groups in

He is responsible for driving business strategy, vision, strategic customer relationships at Facil.

Summer Internship Report Away from business, Srini is engaged in helping Orphanages, Deprived Urban, rural citizens and

has been engaged in conducting medical camps for the deprived sections of society.

MR. RAJESH KUMAR

Director

Rajesh is a Serial Entrepreneur armed with an Bachelors Degree in Computer Applications

with over seven years of experience in managing business, customers and stakeholders bringing

customer delight through pro-active services and solutions.

His Customer orientation has led to key wins in the Global and Domestic markets.

He serves on boards of several leading and start-up organizations and is passionate about

encouraging entrepreneurship in the country. At Facil, he would be overseeing the Technology,

Strategic relationships.

Rajesh takes a keen interest in Agriculture and Farmers, and apart from being an active

Corporate Executive, he provides active support to the cause of Farmers by harnessing

Technology and Knowledge management. He has initiated several Farmer Support activities as a

part of the CSR initiative.

Like other organizations Facil also has certain other policies on the following

Factors

CORPORATE SOCIAL RESPONSIBILITY

Corporate Social Responsibility is a area in which all the organizations are

concentrating.Many organizations do different kind of activities in order to enhance the society

as a return to the society from which they earn their revenues.Facil also has certain measures in

Order to show their Social Responsibility.


Facil recognizes that its businesses should make an impact the earth communities

and has designed CSR initiatives to help orphans, physically and mentally challenged,

Summer Internship Report orphanages and sponsoring medical camps for the deprived sections of societies in the urban,

semi-urban and rural areas.

Facil also has a strong commitment for “Clean and Green Environment” and has no

tolerance for non degradable Plastic usage and other areas that add to environmental pollution.

New initiatives are being designed to ensure adding value to the society we live and build a clean

place for tomorrow’s generations.

CORPORATE GOVERNANCE

Corporate Governance is "the system by which companies are directed and controlled".It

involves regulatory and market mechanisms, and the roles and relationships between a

company’s management, its board, its shareholders and other stakeholders, and the goals for

which the corporation is governed. In contemporary business corporations, the main external

stakeholder groups are shareholders, debtholders, trade creditors, suppliers, customers and

communities affected by the corporation's activities[. Internal stakeholders are the board of

directors, executives, and other employees

Much of the contemporary interest in corporate governance is concerned with mitigation

of the conflicts of interests between stakeholders. Ways of mitigating or preventing these

conflicts of interests include the processes, customs, policies, laws, and institutions which have

impact on the way a company is controlled. An important theme of corporate governance is the

nature and extent of accountability of people in the business.

http://en.wikipedia.org/wiki/Corporate_governance#cite_note-3



Facil has a well-defined and enforced corporate governance policy under force

addressing the financial, compliance and related best practices. The policy ensures adherence of

ethical standards and best practices and covers the stakeholders such as customers, employees,

shareholders, debtholders, trade creditors, suppliers and communities affected by the

corporation's activities. The Corporate Governance at Facil is directed and controlled in a

professional, transparent and responsible manner.

The facts mentioned above give us an Idea about Facil Internet

Technologies.

Services Offered:

Facil offers three services namely

SPARK Startup Payroll and Risk Management Sevice this is a Integrated

Payroll Management Service(IPMS) and Integrated Accounting Management Services(IPMS)

It provides a integrated service of

Salary Structure

HR Policies(Leave Policy,LOP,Reimbursement and Arrears)

Investory Advice Plan

The main function of IPMS is

Salary Breakup

Salary Policy

Since Payroll processing must be following a lot of legal regulations this service

is much helpful to the startup companies which has a cost constraint and also for small and

medium enterprises that have difficulties in maintaining their payroll.

Summer Internship Report There are two other services namely

Easy Websites a web designing unit

Reachout a service which provides digital marketing services and

social media optimization.


CHAPTER 4

FUNCTIONAL DEPARTMENTS

Summer Internship Report Facil Internet Technologies is a marketing company .Though the main business is marketing of

Services.It has other depatments also namely

Finance department

Human resource department

Information technology department

Marketing Department

Finance Department

Objectives

To Manage & account for the financial resource of the Organization, to forecast its

requirement in the future and plan accordingly and to check for deviation.

Report the financial performance of the company to Management, and to comply with

the Govt. rules and regulations

4.2.2 Functions of Finance Department

Some of the main functions are Payroll, billing, Preparation of journal, ledger and trial balance,

Banking, Financial resources & materials accounting, Budget preparation, Cost accounting,

Auditing, Preparation of financial statements & reports, Corporate Planning.

4.2.3 Process of Finance Department

Finance department in Facil is divided into five sections for carrying out its process. They are:

Bills & Materials


Sales

Costing, MIS, Budget

Cash, bank & Payroll and

Tax & duties

4.2.3.1 Bills & Materials - The main functions is to record accounting and receiving, Dispatch

and holding of bills

4.2.3.2 Sales Accounting

Accountability for selling and distribution of services.

Recording the transaction

Transfer of information from depots to HO

Compilation of reports

4.2.3.3 The Costing, MIS And Budget Section

This section is concerned with ascertaining the cost of marketing the services, providing

information, helping to prepare a budget, forecasting the performance and finally making a plan.

Fixed cost - Salaries and wages (Direct, Indirect, Administration &

Maintenance), Staff welfare expenses, Insurance, office

maintenance, Depreciation, Administrative overheads, bonus.


MIS (Management Information System)

To provide the management with vital facts which affects the efficient running of the business

for decision making on planning, organizing and controlling the major activities of the

organization and initiating suitable action.

MIS Briefly consists of:

Monthly report of all the expenses is prepared

P & L Account-Statement and its analysis

Production performance of the division

Inventory position

Cost of production - Actual and budget for the month

Specific information important for the management - Major projects, man-hour utilisation

etc.

Budgeting

Two types of budget - Revenue and Capital budget

Two types of estimates - Budget estimate and revised estimate

4.2.3.4 Capital Expenditure

Shows all items of capital expenditure to be undertaken during the budget period like

expenditure on acquisition of new assets like machinery, furniture and office equipments which

have reasonable life; expansion of existing facilities and modification and improvements to plant

and machinery resulting in


i) increase in capacity

ii) Increase in useful life

iii) Improvement in quality of output and

iv) Reduction in cost of output is treated as capital expenditure.

Monthly report

On closing of the accounts of the months a monthly P & L account is prepared. This report

would give a comparison of the actual for every month against budgeted performance.

The Cash, Bank And Payroll Section

This section is concerned more with the day to day activities and less of future forecasting &

planning.

Cash And Bank Accounts Section

The various functions include:

Receipt of cash, cheques, bank drafts, and postal money orders

Payment of cash, cheques, bank drafts, and letters of authority

Handling of bank deposits/withdrawals, custody of cash and inter unit

transfer of funds

Maintenance of petty cash books and cash books

Reconciliation of bank accounts

Security arrangement of cash handling


Safe custody of valuable documents

Cash interests calculation

Any other duties assigned by authorized officer

Payroll Section

Functions of the section are:

Preparation and disbursement of salaries and wages to managerial and

non-managerial employees

Effect various recoveries through payroll and remit the same to

concerned agencies

Processing of various personal payments advances

Keeps books of account for the above transaction.

Human Resource DEPARTMENT

General Information

Human resource management is one of the most complex and challenging fields of

endeavor. It is considered to be the most expensive and important resource of every

organization.

Human Resource capability remains a key source of the Company’s competitive

advantage. The Company continues to place emphasis on enhancement of skills and

capabilities of its people for meeting future challenges.


The key areas of human resource developments are training, competency development

and skill enhancement. The Company continues to implement best practices and

innovative initiatives to meet the challenges in acquiring and retaining talent against

intense competitive pressures.

As the Company takes on projects with higher complexities and expands its business,

the need to reinforce the human resource capabilities becomes more critical.

Objectives

To maintain the optimum manpower required to sustain the growth of Organization.

To motivate and manage human resource and train them to ensure their personal and

organizational development.

Functions of HR Department

Organizational human resource planning & development

Recruitment & selection

Wage & Salary administration

Employee records maintaining

Performance appraisal

Welfare programme

Job evaluation

Handling employee grievances

Handling the legal issues within & outside the Organization

General Information


Human resource management is one of the most complex and challenging fields of endeavor. It is considered to be the most expensive and important resource of every organization.

Human Resource capability remains a key source of the Company’s competitive advantage. The Company continues to place emphasis on enhancement of skills and capabilities of its people for meeting future challenges.

The key areas of human resource developments are training, competency development and skill enhancement. The Company continues to implement best practices and innovative initiatives to meet the challenges in acquiring and retaining talent against intense competitive pressures.

As the Company takes on projects with higher complexities and expands its business, the need to reinforce the human resource capabilities becomes more critical.

4.4.2 Objectives

To maintain the optimum manpower required to sustain the growth of Organization.

To motivate and manage human resource and train them to ensure their personal and organizational development.

4.4.3 Functions of HR Department

Organizational human resource planning & development Recruitment & selection Wage & Salary administration Employee records maintaining Performance appraisal Welfare programme Job evaluation Handling employee grievances Handling the legal issues within & outside the Organization


4.4.4 Process of HR Department

The human resource department has 3 blocks which are:

Establishment Industrial relation Welfare

4.4.4.1 Establishment Section

The main functions are:

Recruitment & selection

Transfer, rotation and placement of employees in consultation with divisional heads

Wage and salary administration

Performance Appraisal

Retrenchment

4.4.4.2 Industrial Relation

Industrial relation operates only within the Organization. The Inter organizational relation is handled by the corporate cadre. 60 to 70 % of management time is lost in resolving IR issues. Therefore the H.R department is of paramount importance.

The main functions are:

Communication between management and trade unions

Grievance handling

Settlement of dispute


Handling disciplinary action

Safeguarding Employee rights

Career related issues like promotion, transfer & rotation

Resolving daily petty issues

4.4.4.3 Welfare

Welfare schemes can be divided into Statutory, Agreement, Voluntary and Incentives The main objective of welfare measures is to maintain healthy working environment and raise the standards of living of employees which create harmony to the society and finally to the organization. Facil has always maintained very healthy measures.

Following are the various facilities provided by Facil to their Employees.

Statutory and Agreement scheme

Health, safety, welfare

Transport facilities

Leave & holidays

Local travel expenditure

Conveyance Allowances

Payment of gratuity Act, 1972

Employee’s welfare fund

Voluntary Scheme and Incentives scheme

Production incentives & Business incentives


Incentives for employees & Suggestion scheme

Talent Acquisition

Talent acquisition is the targeted recruitment/acquisition of high performing teams. Organizations requiring external recruitment or head-hunting firms are now employing "talent acquisition" specialists whose job it is to identify approach and recruit top performing teams from competitors. This role is a highly specialised role akin to that of a traditional recruiter/headhunter specialist but carrying greater visibility and strategic importance to a business.

4.4.5.1 Talent Acquisition Process

Identify vacancy

Prepare job description and person specification

Advertising the vacancy

Managing the response

Short-listing

Arrange interviews

Conducting interview and decision making

Sources of Recruitment

Educational Institutes


Various management institutes are a good source of recruiting for Facil. They provide facilities for campus interviews and placements. This source is known as Campus Recruitment. The major sources of campus recruitment for Facil are:

Internet Recruitment Services

The Internet has revolutionised the recruitment world, drastically changing the way companies and recruitment agencies look for quality talent. The Internet is probably one of the greatest recruitment resources available to Recruiters. Facil is recruiting on the Web whether through:

Training and Development

The principal objective of training and development division is to make sure the availability of a skilled and willing workforce to an organization. As Facil is a startup it focuses much on training the employees so that they can effectively work on the mission and vision of the organization.

In addition to that, there are four other objectives: Individual, Organizational, Functional, and Societal.

http://www.jobs.co.za/recruitment/recruitment-advice/article/69/the-role-of-the-internet-in-job-seeking

http://www.jobs.co.za/recruitment/recruitment-advice/article/69/the-role-of-the-internet-in-job-seeking

http://www.jobs.co.za/job-seekers/recruitment-agencies


Individual Objectives – help employees in achieving their personal goals, which in turn, enhances the individual contribution to an organization.

Organizational Objectives – assist the organization with its primary objective by bringing individual effectiveness.

Functional Objectives – maintain the department’s contribution at a level suitable to the organization’s needs.

Societal Objectives – ensure that an organization is ethically and socially responsible to the needs and challenges of the society.

Performance Appraisal

A performance appraisal or performance evaluation is a systematic and periodic process that assesses an individual employee’s job performance and productivity in relation to certain pre-established criteria and organizational objectives.

360 DEGREE PERFORMANCE APPRAISAL METHOD

Facil has adopted 360 degree performance appraisal method which is the most comprehensive appraisal where feedback about the employees performance comes from all the sources that comes in contact with the employee on his job.

EMPLOYEES

SUPERIOR

SUPPLIERS

TEAM MEMBERS

SUBORDINATE

PEERS

CUSTOMERS


Grievances

Grievance is all about violation of the contract, practices, rules and regulations. As human beings are different there is bound to be grievances among employees leading to conflicts at the workplace. To avert any kind of conflicts within the organization, there is need for a proper grievance procedure so that the employees feel that their grievances are addressed and redressed.

Grievance Handling

Identify the grievance and acknowledge the same. Listen carefully to the complainant. Define the grievance clearly. Gather the complete information with facts and figures. Analyze and search for multiple solutions to the grievance and finally select the best feasible and possible solution and implement the same. Ensure that there is follow-up at each stage for successful grievance procedure.

Prescriptions during Grievance Procedure:

If you are not the appropriate person, refer to the right person. Spend adequate time with the complainant. Be cool and composed during the process. Check for facts and figure rather than hearsay. Practice attentive listening skills. Find out what bugs the complainant.


Don’t have any preconceived notions about the involved parties. Don’t threaten people. Always try to settle the grievance at the lower level amicably rather

than dragging to the higher levels where it might become more complicated.

Conduct the grievance hearing privately. Make necessary changes, if there are any irregularities in policies and

procedures. Keep the entire grievance process confidential. Always make the process win-win situation.

Employee Motivation

Motivation is a set of forces that directs an individual to the behavior that results in better job performance. A motivated employee might work harder than expected to complete the task, proactively find ways to improve the quality and efficiency of the work environment.

Level 1: Safety and Security

Along with a physical sense of well-being, there must be a psychological belief that the environment is free of fear, intimidation or harassment.

Level 2: Rewards

Organizations offers cash and kind rewards to the employees on their performances. This helps them to keep their performance in a growing stage.

Level 3: Affiliation

This is a sense of belonging. It includes being "in the know" and being part of the team. This is also where a difference in personal and organizational values can have a big impact on motivation.

Level 4: Growth


Employees want to have the belief that achievement is taking place. I might feel safe, get all the money I want and feel part of the team. But if there are no growth opportunities, I might think about leaving the company.

Level 5: Work/Life Harmony

This term speaks for itself. Someone might have all the rewards that he/she wants, but he/she will burn out sooner or later if they don't have the time to spend it on the other things they want.

Level 6: Fun Activities

Facil organizes the fun activities to motivate the employees and make them to learn the things along with learning. Quiz, Team Building Games etc

Marketing Department

Marketing is the process of creating value,communicatin value and delivering value

It is a department which is the profit centre business. This is the revenue earner of any

organization and it is much important for converting the services into cash

As Facil is into service industry it offers Business to Business (B2B) services and

offers Payroll services. Facil starts marketing by identifying customer needs and wants through

Market Research and ends with satisfying them through a coordinated set of activities that also

allows a Facil to achieve its own goals, profitably.

At market research we are able to find out the potential

customers,competitors,market size customer needs as we are able to analyze the needs of the

consumer

Marketing Team here conducts the market research so they are helping the sales

team by providing information of potential markets.

Summer Internship Report Similarly the sales team helps the organization by achieving targets which in

turn helps the organization to earn its revenue.

IT Department:

The IT department in the organization is like a back bone of the

organization. It serves all the back end operations and helps all the departments and

organization to achieve their goals.

The role of IT department in the organizations is to deal with all of the issues regarding

the technology. The three major functions in an organization are Finance, product and

marketing. Today because of the advancements in the technology companies have

Information Technology Departments. The aim of IT department is to provide

technological support to the whole organization wherever needed. IT department also

keeps on searching new tools and software which may enhance the efficiency of the

organization. In addition, whenever the company faces technological issues then

IT department is responsible to solve the problems.

The following are the different applications of IT departments

.5.2.1 Marketing Department

Marketing professional always looks for the way to do something amazing

to impress the clients, to get the job done faster and to grow the business.

Facil’s IT department helps the marketing professional to make effective

presentations to present to the client.

http://www.blurtit.com/q355828.html


The IT department also helps them to perform the market research through

web surveys. It saves lots of time and helps to analyze the current scenario

of the market.

The various IT tools also help to understand the consumer behavior,

customer preference and taste through past records which will be kept

safely only with IT department.

Each and every detail about the client will be kept safely for future contact

and to build relation with the customers.

IT department also helps to market the organizations services through

online and save cost.

Finance Department

Information technology plays a key role in the Finance Departments

Harmonize Financial Processes

Automation

HR Department

It is important to look forward for the changing trends in technology which can have an

impact on the HR practices. Understanding these changes will help smart managers to adapt and

flourish. Once you exploit these changing trends, you can very well have the advantage over

other players in the global market. The wide range of impact of technology on HR can be clearly

viewed on the HR functions such as:


Recruitment

Training & development

Performance management

Payroll & attendance records

Employee benefits etc

At Facil all the IT functions are taken care by Fomax Technologies Private Limited.

Operations Department:

The operations department in an organization is responsible for the

conversion of inputs into outputs. Here in this company the following is the operational

procedures are done like this.

Generally the inputs are converted into outputs .An Example is given below .

The input for a spinning mill is cotton the process consists of removing the seeds converting

into yarn and finally the yarn is converted to cloth.

Similarly for the payroll processing there is a process of collecting certain data from

the client and this is a step by step process.

Inputs : Details of an employee’s salary .

Process: The process consists of various salary details like deductions to made and

also the leave policy.

INPUT PROCESS

OUTPUT

Summer Internship Report Output: The final output is Payslips and Paycheques.

Facil Internet Technologies is a marketing company for payroll process it has a tie

up with BalaKrishna Legal Consulting. They provide the technical and statutory complaince for

the payroll process.

Balakrishna Consulting (BCL) – THE BACKEND OPERATION TEAM OF

FACIL is a team of Chartered Accountants, Company Secretaries, Cost Accountants and

Advocates.BCL team is having over 15 years of experience in Corporate Laws. Our expertise

services are not just restricted to Company Incorporation, Company Formation, LLP Registration

or assisting in starting your dream business in across India. Our team assist you at each level to

comply with all the applicable laws and nurture you to develop your business Balakrishna

Consulting (BCL) .

These are the various functional departments that are present in Facil Internet

Technologies.


CHAPTER 5

SWOT ANALYSIS

SWOT ANALYSIS

SWOT analysis (alternately SLOT analysis) is a strategic planning method used to evaluate the Strengths, Weaknesses/Limitations, Opportunities, and Threats involved in

a project or in a business. SWOT ANALYSIS

STRENGTHS1. Experienced Management teams2. Affordable products/services

WEAKNESSES1. Startup2. Limited finance

OPPORTUNITIES1. Large base of SMEs in India2. Growing Entreprenurship

THREATS1. New Competitors

HELPFUL HARMFUL

EX

TR

EN

AL O

RIG

ININ

TER

NA

L OR

IGIN


SWOT analysis (alternately SLOT analysis) is a strategic planning method used to evaluate the Strengths, Weaknesses/Limitations, Opportunities, and Threats involved in a project or in a business.

SWOT Analysis of Facil

SWOT Analysis of Facil



CHAPTER 6

FINDINGS AND CONCLUSIONS

Manual

Outsourced

Payroll Software

0% 10% 20% 30% 40% 50% 60%

53%

14%

33%

Current Method of Payroll


Observation

A significant 53% of the respondents have indicated that manually process Payroll within their organization.

Manual Method

Offline Payroll Software

Online Payroll Software

Payroll Outsourcing

0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%

44%

17%

32%

7%

Better Method of Payroll Processing


Observation

Manual Method (44%) is indicated as a better method of payroll processing by organizations.

Deficiency of Knowledge

Delay In Payroll

Difficulty in Managing Software

Flixibility of Software

High Cost Of HR

Limited Awareness of Statutory Obligations

Quality in service

Errors in Reports

0% 5% 10% 15% 20% 25% 30% 35%

9%

29%

11%

3%

20%

23%

3%

3%

Challenges Faced in Payroll Processing


Observation

Delay in Payroll is largest issue faced by the organizations. This leads to employee de-motivation, and at times attrition and lower productivity.


Delay In Payroll

Difficulty in Managing Software

Flixibility of Software

High Cost Of HR


Quality in service

Errors in Reports

0% 5% 10% 15% 20% 25% 30% 35%

9%

29%

11%

3%

20%

23%

3%

3%

Challenges Faced in Payroll Processing


Delay In Payroll

High Cost of HR


0% 10% 20% 30% 40% 50% 60% 70%

7%

13%

15%

65%

Challenges faced in Manual Method of Payroll


Observation

In the manual method of payroll too “Limited awareness of Statutory obligations” is a single largest challenge faced by human resource department followed by High Cost of HR and Delay in Payroll.


Delay In Payroll


0% 10% 20% 30% 40% 50% 60%

18%

29%

54%

Challenges faced in Outsourced method of Payroll


Observation

Limited awareness of statutory obligations and Delay in Payroll are major challenges faced by the Human Resource Departments


Technology Acquisition and Upgrades

Maintanance Cost

Real Time Reporting

Resources to Manage the Software

Tax Accuracy

0% 5% 10% 15% 20% 25% 30% 35% 40% 45%

7%

39%

34%

6%

14%

Challenges faced using Payroll Software Tool


Observation

While using the software it was found the Maintenance Cost, Real Time Reporting are issues plaguing the human resources teams followed by tax related issues, which had lot to do with understanding the changes of tax laws which are ever changing?

Customized Reports and Process

Accuracy of Processing

Automation of Attendance, Leave and other procedures

Statutory Consulting and Filing

Ease of Payroll Processing

Timely Processing of Payroll

Low Cost Payroll Processing

0% 5% 10% 15% 20% 25% 30% 35%

16%

13%

31%

27%

7%

4%

2%

Additional Services desired by HR Dept. for Payroll Process-ing


Observation

Automation of Attendance, Leave, Statutory Consulting and Filing followed by Customization of Reports and Processes are the major needs of HR Departments as they opt for Outsourced payroll processing. The above issues can be termed as Pain Points of Human Resources Personnel.

Client Base

Confidentiality

Delay in Payroll

Price

Technical Payroll Processing Capability

Vendors Reputation

0% 5% 10%15%20%25%30%35%40%45%50%

16%

0%

0%

14%

47%

23%

Criteria for Selection of a Payroll Outsourcing Company


Observation

Technical Capability and Vendors reputation are key criteria for selecting a Payroll Processing Company. Reputation also implies that they deliver accurate and error free and timely delivery of services.

<10

>10 and <=20

>20 and <=30

>30 and <=50

>50

0% 5% 10% 15% 20% 25% 30%

12%

28%

16%

20%

24%

Organizations with Employees seeking Outsourcing of Payroll

Series1


Observation

Organizations with employees between 10 and 20, greater than 50 and between 30 and 50 have

indicated need for outsourcing. It is also observed that Multinational companies with limited knowledge of

India Statutory compliances have indicated a greater need for outsourcing

Findings

The study was mainly conducted not only to study the organization structure functional

departments and their functioning in the organization. The major objective of the study the

consumer behavior.

Consumer behavior is the main aspect that is to be considered before developing a

product/service of a particular organization. This is because a organization needs to understand

various factors of the market and the external environment in order to find out whether the

product has a market potential. This could be understood only when the consumer behavior of a

particular market is studied.

There are two types of business systems namely

Business to Business

Business to Consumer

And there is a difference in the type of consumers namely


Corporate Consumer

Retail Consumer

The market of Business to Business enterprise is much different from the Business to

Consumer enterprise so it should be understood that market research must be done order to find

out the consumer behavior. Before entering into any market to analyze the market place a

analysis is done it is PESTEL Analysis.

PESTEL stands for

Political

Economic

Social

Technological

Legal

This should be done in order to find out whether the environmental factors are affecting

the business of any enterprise.

Political Environment is important because political instability

This study was conducted at Facil internet Technologies Pvt. Ltd to understand the Organizational Structure, Various Functional Departments like Production, Finance, Marketing, Human Resource, & IT, the inter dependence on each other and the services offered by the organization.

After spending 6 weeks at Facil Internet Technologies Pvt. Ltd. The major findings about the industry and organization are as follows:

6.11.1 About Industry:

There are many Small and Medium size organizations having number of employees 10 – 50, are facing lots of challenges while processing the


payrolls of their employees and not satisfied with their current method of payroll.

The major challenge faced by the Human Resource department of many organizations is the continuous changes in the statutory obligations which they are unable to keep the update.

As the number of employees in the organization is increasing the challenges for payroll process is getting increased.

The organizations which are using online or offline methods of payroll processing are lagging behind in the knowledge of payroll processing.

The industry requires more number of technical experts who can process payroll.

6.11.2 About Company

Being a startup, all the departments are well organized, functioning very well and active and managed.

The organization is having flat structure and divided into several units like Production, Finance, Marketing, Human Resource, & IT. These all departments are headed by the head of the organization but at the same time they work for same objective with full co-ordination which shows the unity level about the organization.

All the departments are having their own importance but while observing from a organization point of view they all work with each other.

There are more number of newcomers and young blood working in the

company.


One important suggestion is that more care and concern should be given to the clients to retain the trust of existing valued customers. As company works on the philosophy of “Customer is King”.

The company can promote its services through social media, as its costs nothing as compared to other promotion medium.

Company should hire more number of marketing executives and technical experts to provide better services.

Company should focus more on technical part as the industry is facing challenges in technical issues.

6.13 Conclusion

The study at Facil internet Technologies Pvt. Ltd. has enabled me to understand the various needs of an organization, how an organization of a corporate nature functions and how important it is to have a right relationship between the employee and employer or the management.

The study was conducted with a view to understand the functions of an organization, and its various departments. During the course of study I was successful in achieving these objectives and could familiarize with an organization and its environment.

“This study has improved my confidence by its successful completion to undertake such studies in the future.”


APPENDIX

Questionnaire

A Study on Comparative Analysis Of Market Research on Payroll Process

As a part of my MBA program, I am doing this survey to understand the complete Industry Structure, HR Policy, Salary Structure, Understanding the bettor method of Payroll processing, to know the challenges faced by the organizations.

Hence I request you to spare a few minutes from your valuable time.

Name Of Company :__________________________________________

Name of HR Contact :__________________________________________

Summer Internship Report Designation :__________________________________________

Email ID :__________________________________________

Mobile Number :__________________________________________

URL : www.____________________________________

No of Employees :__________________________________________

___________________

Signature Seal of Company

Is your Organization Bangalore based?

Yes ( ) No ( )

What payroll method have you currently adopted?

Have our own Payroll Software. ( )

Payroll outsourced to Vendor. ( )

Manual . ( )

If Manual,

Would you like to outsource Payroll ( ) or

Would you like to buy Payroll Software ( )


Which is a better method of payroll processing, according to you?

Online Payroll Software ( )

Offline Payroll Software ( )

Outsource Payroll ( )

Manually ( )

Which of the following is the most important factor considered while buying payroll Software / Payroll service?

Quality Of software ( )

Price ( )

Service (Post sales Service) ( )

Since how many years you are using payroll process?

0 to 1years ( ) 1 to 2 years ( )

2 to 5 years ( ) 5 to 10 years ( )

What are the issues which you faced from your current Vendor?……………………………………………………………………………………………………………………………………………………………………………………………………

Have you Faced any of the following challenges in your current method of payroll?

High Cost of Human Resource ( )

Delay in payroll ( )

Deficiency of Knowledge ( )

Difficult to manage software ( )

Limited awareness of Statutory Obligations ( ) Such as Provident Fund, ESI, Income Tax Filing, Professional Tax etc

What additional Services would you want for your payroll Service?

Could you tell us why ?

………………………………………………………………………………

Summer Internship Report ………………………………………………………………………………………………….

………………………………………………………………………………………………….

What are the important factors on which you decide to outsource your payroll process ?

Vendors Reputation ( ) Client Base ( )

Technical Expertise ( ) Price ( )

Have you faced any challenges in maintaining payroll software?

Tax accuracy ( )

Resources ( )

Maintaining Cost ( )

Real time reporting ( )

Keeping Technology acquisition. ( )

Have you faced any challenges while processing payroll manually?

Time consuming ( )

High Cost of Human Resource ( )

Limited Awareness of Statutory Obligations ( )

Attrition or Inconsistency. ( )

How much would you be willing to pay per month for Outsource payroll Service? Rs. …….Any Suggestion or Remark For Payroll Process

…………………………………………………………………………………………………

Internship Report 1

Documents

Internship Report 1