HUMAN RESOURCE MANAGEMENT

INTRODUCTION TO HRM
Human Resource Management refers to a set of programmes, functions and
activities designed and carried out in order to maximize both employees as well as
organizational effectiveness. It is the process of binding people and organizations of each are
achieved.
Human Resource Management involved the application of management function
and principle. The functions and principles are applied to acquisitioning, developing,
maintaining and remunerating employee in organizations.
Human Resource Management means employing people, developing their
resources, utilizing, maintaining and compensating their services in tune with job and
organizational requirements. HR is the most significant factors of production every Human
being is born with tremendous potential. HR refers to the knowledge, skills, and beliefs of an
organizations work place. Enhance their skills, abilities, knowledge in accordance with the
changing requirement of groups, organization and society is the essence of HRD.
The management of Human Resource is viewed as a system in which
participants seeks to attain both individuals of group goals
Human Resource Management function that helps manager recruit, selection,
train and develops members for an organization obviously Human Resource Management is
concern with the peoples dimension in organization.
Human Resource Development (HRD) is a continuous process ensures the
development of employee dynamism, effectiveness, competencies and motivation in a
systematic and planned manner.
Human Resource Development (HRD) includes potential development, fast
achievement, skill development, ability to reach out system development understanding of
subordinates goals, greater commitment existing and creating clime, developing integration
etc one of the important mechanisms of HRD is training and development.

Definition of HRM:
Human Resource Management involves all management decisions and
practices that directly affect or influence the people or Human Resource, who work for the
organization. An organizations employees enable an organization to achieve its goal and the
management of this Human Resource is critical to an organizations success.
According to process system view Human Resource Management means
Human Resource Management is the systematic planning, development, and
control of a network of inter related process affecting and involving all members of an
organization.
According to French:
Human Resource Management is the recruitment, selection, development,
utilization of an accommodation of HR by organization consists of all individuals regardless
of their role, who are engaged in any of the organizations activities.
According to Filippo:
Human Resource Management is the planning, organization, directing and
controlling of the procurement development, compensation, integration maintenance and
reproduction of Human Resources to the end that individual organizational and societal
objectives are accomplished
According to Milkovich and Boudrean:
Human Resource Management is a series of the integrated decision that form
the employment relationship their quality contributes to the ability of the organizations and
the employees to achieve their objectives.
Human Resource Management is a management function that helps manager
plan, recruit, select, train, develop, remunerate and maintain members of an organization. It is
concerned with the peoples dimension in organizations.
Human Resource Management is known by different names such as personnel
management, manpower management, staff management and knowledge management etc
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Primary Objectives:
HRMs main goal is the creation of a workforce with the ability and motivation to
accomplish the basic organizational goals.
They related to the satisfaction of the personal objectives of the members of an
organization through monetary and non-monetary devices.
They relate to the satisfaction of community and social objectives.

Secondary Objectives:
The secondary objectives aim at achieving the primary objectives economically
efficiently and effectively.

Scope of Human Resource Management:

The scope of HRM is indeed vast. All major activities in the working life of a worker from
the time of hisor her entry into an organization until he or she leaves the organizations comes
under the purview of HRM.The major HRM activities include HR planning, job analysis, job
design, employee hiring, employee andexecutive remuneration, employee motivation,
employee maintenance, industrial relations and prospectsof HRM.
The scope of Human Resources Management extends to:
All the decisions, strategies, factors, principles, operations, practices, functions,
activities andmethods related to the management of people as employees in any type
of organization.
All the dimensions related to people in their employment relationships, and all the
dynamics thatflow from it.
The scope of HRM is really vast. All major activities n the working life of a worker from
the time of his or her entry into an organization until he or she leaves it comes under the
purview of HRM. AmericanSociety for Training and Development (ASTD) conducted fairly
an exhaustive study in this field andidentified nine broad areas of activities of HRM.These
are given below:

Wage and Salary Administration

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Introduction:Wage and salary administration is refers to the establishment and

implementation of sound policies and practices of employee compensation.It includes such
areas as job evaluation surveys of wage and salaries,analysis of relevant organizational
problems development and maintainance of wage structure,establishing rules for
administering wages,wage payments incentives,benefits including health insurance,profit
sharing ,control of compensation cost and other related items.

Meaning and Definition:A wage (or Pay) is the remuneration paid, for the services of labor in production,
periodically to an employee/worker. Wages usually refer to the hourly rate paid to such
grouts as production and maintenance employee (blue-collar workers). On the other hand,
salary normally refers to the monthly rates paid to clerical administrative and professional
employees (white-collar workers).

According to Yoder and Heneman:Wages are the compensation of wage earners, the numerous employees who use the
tools and equipments for their employers to produce goods and services that are sold by their
employers.

According to P.M. Stochank:Wage is that labors remuneration which creates the utility.

According to Benham:Wages means the amount paid to the labor for his services to the employer

Concepts of wages
1) Minimum wage:
Minimum wage is the one which provides not merely for bare sustenance of
life, but also the preservations of the efficiency of the worker. For this purpose, a minimum
wage must also provide for some measure of education, medical requirements and amenities.
Minimum wage may be tied by an agreement between the management and the
worker, but is usually determined through legislation. This is moir so in the unorganized
sector where labor is unionized. In the fixation of minimum wages, beside the needs of
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workers, other factor like ability of the concern to pay, nature of job and so on, are also
considered.
2) Fair wage:
This is understood in two ways. In a narrow sense, wage is fair if it is equal to
the rate prevailing in the same trade and in neighborhood for similar work. In a wider sense,
it will be fair if it is equal to predominant rate for similar work throughout the country and for
trader in general. Irrespective of the way in which fair wage is understood; it can be fixed
only by comparison with an accepted standards wage. Such a standard can be determined
with reference to those industries where labor is well organized and has been able to bargain
well with the employers.
3) Living wage:
Living wage is a step higher than fair wage. Living wage may be described as
one which should enable the wage earner to provide for himself/ herself and his/ her family
not only the bare essentials of life like food, clothing and shelter but a measure of frugal
comfort including education for children protection against ill health requirements of
essential social needs and/ or measures of insurance against the more important misfortunes
including old age. A living wage must be fixed considering the general economic conditions
of the country. The concept of living wage, therefore, various from county to country. In the
more advanced countries, living wage itself forms the basis for the minimum wage.

Wages Vs Salary
Wages is compensation to the employees for services rendered to the organization. In
case the quantum of services rendered is difficult to measures, then the payment is called
salary. Normally the wages period is shorted than the salary period.
Payment made to labor is generally referred as wages. Money paid periodically to
persons whose output cannot be easily measured such as clerical staff as well as supervisory
staff, is generally referred to as salaries. Salaries are paid uniformly, generally on monthly
basis and at times the element of incentive is introduced in the form of commission.

Objectives of the Wage and Salary Administration

1. Reward employees according to effect and merit.
2. Attract and retain the services of desirable employees.
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3. Get improved employee moral and productivity.

4. Keep labor cost within reasonable limits so as to safe guard the interests of
shareholders, competitive worth of the organization and its product and
profitability.
5. Pay employee according to the importance and difficulty of the job.
6. Incorporate legal requirements.
7. Facilities payroll administration, budgeting and wage and salary control.
8. Simplicity collective bargaining.
9. Explain to employees how and why they are paid.
10. Facilitate employee organizational flexibility.

Functions of Wages and Salary Administration

To recommend changes in wage policies and in the salary of wage level.
1. To recommend top management specific raises for executives above a specified limit.
2. To check all activities of salary administration group against the company policies.
3. To approve in a broad policy determining manner, the system of job description and job
evaluation.
4. To review wage and salary schemes department wise.
5. To recommend the top management about the wage policies of the administration wage
programmed.

Essential Characteristics of a Good Wage Payment System

The system of wage payment should be such that it is acceptable and beneficial to
both management and workers. Such a system must contain the following features.

1) Motivation:A good wage system should be providing an incentive to workers to produce more.
This can be done by linking wages with output. Workers should be given a share in the gains
of higher productivity. Initiative and sound judgment should be rewarded.

2) Stability:The system of wage payment should be permanent and stable. Fluctuating system
may create a doubt in the mind of workers. There should be no fear of rate cutting with
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increase in output. Changes in the wage plan should not be made unless there is a substantial
change in the methods of work.

3) Flexibility:The wage plan must be capable of being adjusted quickly to the changing
requirements of the enterprise. It should permit an early detection and correction of mistakes.

4) Equity:The wages differentials should be based on some rational and objective criteria. The
wage system should ensure equal pay for equal work. The system should be fair, i.e., it
should not discriminate among individuals. Variations in skill, responsibility job conditions
etc. must be taken care of. The wage rate should be based on an equitable evaluation of
contributions and performance. The wage system should be just and equitable to all types of
employees.

5) Result Oriented:The wage plan should establish a direct relationship between effort and reward..
Incentive payments under the plan should be large enough to attract the workers towards
higher productivity.

6) Simplicity:The system of wage payment should be easy to understand and simple to operate. A
complicated system which can not be readily understood by workers is of high value.

7) Economy:The cost of designing and administering the system should be reasonable the wage
system should permit maximum efficiency and minimum labor cost of unit. The cost of
supervision should not be unreasonably high. Benefits accruing from the wage plan should be
more than its costs.

8) Reasonable Standards:Standards of work used in a wage plan should be reasonable and attainable. They
should be neither to easy or too difficult to achieve. Too easy standards would increase the

costs and there by defeat the very purpose of the incentive wage plan. Standards beyond the
each of workers will not be acceptable to them.

9) Security:A good wage payment system should guarantee a minimum wage to the workers.
Minimum wage would be sufficient to meet the physiological needs of workers so that they
are saved from uncertainty and mental worry. Real wages should be protected against
inflation.

10) Mutual Co-Operation:The wage system should promote co-operation between employer and employees.The
wage plan should be installed with the co-operation and understanding of the employees.

OBJECTIVES OF THE STUDY

To study the wage and salary administration structure in the organization.
To know the importance of management and employee aspects in wage and salary of this
organization.
To know the HR department activities in the wage and salary administration.
To bring out the satisfaction level of the employees towards their wage and salary.
To give suitable suggestions for improving the effectiveness of the wage and salary.

NEED FOR THE STUDY

In the Indian tobacco industrys the HR department plays an important role in giving
the wage and salary administration of the employee in his work in the organization. That
wage and salaries relates to both the organizational and personal aspects. These all aspects
relates to the study on wage and salary administration in M.L GROUP OF COMPANIES.
Wage and salary administration is needed in order to: Provide information about the wage and salary basing on which decision regarding salary
fixation, confirmation, promotion, transfer and demotion are taken.
Provide feedback information about the level of achievement and behaviour of
subordinate. This information helps to review the performance of the subordinate,
rectifying performance deficiencies and to set new standards of work, if necessary.
Provide information which helps to counsel the subordinate.
Provide information to diagnose deficiency in employee regarding skill, knowledge,
determine training and developmental needs and to prescribe the means for employee
growth.
To prevent grievances and in disciplinary activities.

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SCOPE OF THE STUDY

Scope of the study tends to the limits of the study. The scope is the study on the scale
of employees wage and salaries in the organization. That is on what basis of fixing the wage
and salaries of takes place. And this study on training and development of employee after his
job evaluation, if he/she needs. Study on the feedback of the employees about the wage and
salary administration.
The scope of the wage and salary administration study is as follows. In HRM areas
only.
1.

Wage and salary administration.

2.

Initial amount of salary of employees.

3.

Non-monitory benefits of the employees.

4.

Satisfaction about coming salaries of the employees.

5.

Wage and salary structure.

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IMPORTANCE OF THE STUDY

The researcher is of the opinion that the present study is of vital important and
immense use. The researcher has decided to support his opinion by giving the reasons in
support of his opinion.
In my opinion the study on job satisfaction of employee of MADDI LAKSHMAIAH
& COMPANY LIMITED assumes much attention and importance, since the company has the
distinction of being one of the well managed companies with god track regarding corporate
sectors.
Company is expected to derive advantage by getting the opportunities of knowing
strength and weaknesses in HR area, the study is also useful to researchers in future.

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METHODOLOGY OF THE STUDY:

Data Collection

Primary Data

Secondary Data

Questionnaire

Records
Manuals

Informal Talk

Reports
Discussion
While deciding about the method of data collection to be used for the study, we have
to consider two types of data, one is primary and the other is secondary data. I had used both
types of data.
Primary data are those which are collected a fresh and for the first time and thus
happen to be original in character.
Whereas secondary data are those which have already been collected by someone else
and which have already been passed through the statistical process.
The methods of collecting primary and secondary data differ since primary data is to
originally collected, while in case of secondary data the nature of data collection work is
merely that of compilation.
PRIMARY DATA:
Primary data is collected through administering the Questionnaire by direct contact and
also involved in personal discussions to obtain insights of the information.
SECONDARY DATA:
Secondary data has been collected from the following:

Web sites

Brochures
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Necessary information from HR department has been collected through

records and manuals.

Annual reports of the company

Research approach:
Survey Method:
The questionnaire was administered through contacts with respondents.
Questionnaire:
A structured questionnaire is designed which consists of closes ended questions with
5-point scale and the respondents were made personally to get their responses. The 5-point is
named as strongly agree, Agree, No Opinion, Disagree, and strongly disagree.
In preparing the results analysis, the report generator has examined all questions in
pairs to see if there are any correlations between answers. Whenever a significant correlation
is found, it is noted. This information can be valuable in determining what demographic or
experience characteristics tend to drive key measures such as overall satisfaction.
Data Sources:
Data is collected from primary and secondary sources Collection of data of primary
importance in the research Process. Data which is collected for the purpose of research helps
in proper analysis to develop the finding which is helpful to conduct research effectively. The
data source, which is very important in the collection of data, is Primary data and the
Secondary data. Both primary and secondary data are taken into Consideration for the study
of employee participation in management

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LIMITATIONS OF THE STUDY

15

INDUSTRY PROFILE
INTRODUCTION
Tobacco is a plant that grows natively in north and South America. It is in the same
family as the potato, pepper and the poisonous nightshade on very dead plant. The seed of a
tobacco plant is very small. A 1 ounce sample contains about 3, 00,000 seeds.
It is a believed that tobacco began growing in the America about 6,000 B.C.,
American Indians began using tobacco in many different ways. Such as in religious and
medicinal practices. Tobacco was believed to be a cure all and was used to dress wounds, as
well as a pain killer. Chewing tobacco was believed to relieve the pain of a toothache.
Soon after, sailors brought tobacco back to Europe and the plant was being grown all
over Europe. The major reason for tobaccos growing popularity in Europe was its supposed
healing properties. Europeans believed that tobacco could cure almost anything, from bad
breath.
In 1571, a Spanish doctor named Nicolas Monardes wrote a book about the history
of medicinal plants of the new world. In this he claimed that tobacco could cure 36 health
problems.
In 1588, a Virginian named Thomas Harriet prompted smoking tobacco as a viable
way to get ones dose of tobacco. Unfortunately, he died nose cancer (because it was popular
them to breath the smoke out through the nose.)
During the 1600s, tobacco was so popular that it was frequently used as money!
Tobacco was literally as good as gold! This was also a time when some of the dangerous
effects of smoking tobacco were being realized by some individuals. In 1610 Sir Francis
Bercon noted that trying to quit the bad habit was really hard.
In 1632, 12 years after the mayflower arrived on Plymouth Rock, it was illegal to
smoke publicly in Massachusetts! This had more to do with moral benefits of the day than
health cancers about smoking tobacco.

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In 1760, Pierre Lorillard established a company in New York City to process tobacco,
cigar and snuff. Today P.Lorillard is the oldest tobacco company in the U.S.
TOBACCO: A GROWTH INDUSTRY:
In 1776, during the American revolutionary war, tobacco helped finance the
Revolution by serving as collateral for loans the American borrowed from finance! Over the
years, more and more scientists began to understand the chemical in tobacco, as well as the
dangerous health affects smoking produces.
In 1826, the pure form of nicotine was finally discovered. Soon after, Scientists
concluded that nicotine was dangerous poison.
In 1836, New Englander sacral green stated that tobacco was an insecticide, a poison
and can kill a man.
In 1847, the famous Phillip Morris was established selling hand rolled Turkish
cigarettes. Soon after in 1849, J.E.Liggette and brother was established in st.Louis, MO- (the
company that has settled out of the big lawsuits recently) cigarettes became popular around
this when soldiers brought it back to England from the Russian and Turkish soldiers.
Cigarettes in the U.S. were mainly made from scraps left over after the production of
other tobacco products, especially chewing tobacco. Chewing tobacco became quite popular
at this time with the Cowboys of the American west.
In 1875, R.J.Reynolds Tobacco Company (better known for its Reynolds wrap
aluminum foil) was established to produce chewing tobacco. It was not until the 1900s that
the cigarette became the major tobacco product made and sold. Still, in 1901, 3.5 billion
cigarettes were sold, while 6 billion cigars were sold. Along with the popularity of cigarettes
however, was a small but growing anti-tobacco campaign, with some states proposing a total
ban on tobacco?
In 1902, the British Phillip Morris set up a New York headquarters to market its
cigarettes including a new famous Marlboro brand. The demand for cigarettes grew
however, and in 1913 R.J.Reynolds began to market a cigarette brand called camel.
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WAR & CIGARETTES: A DEADLY COMBO:

The cigarette exploded during world war (1914-1918), where cigarettes were called
soldiers smoke. By 1923, camel controls 45% of the U.S. market! In 1924, Phillip Morris
began to market Marlboro as a womans cigarette that is a Mild as May!
To battle this, American tobacco company, maker of the lucky strike brand, began to
market its cigarettes to women and gains 38% of the market. Smoking rates among female
teenagers soon tripled during the years between 1925-1935. In 1939, American Tobacco
Company introduced a new brand, Pall Mall, which allowed American to become the largest
tobacco company in the U.S.During World War II (1939-1945), cigarette rates were at an all
time high. Cigarettes were included in soldiers C-Rations (like food). Tobacco companies
sent millions of cigarettes to the soldiers for free, and when these soldiers came home, the
companies had steady stream of loyal customers. During the 1950s, more and more evidence
was surfacing the smoking linked to lung cancer
In 1952, P.Lorillard markets its Kent brand with the Micronite filter, which
contained asbestos! This was fortunately discontinued in 1956. In 1953, DR.Ernst L.Wynders
fined that putting cigarette tar on the back of mice causes tumors! In 1954, RJ Reynolds
introduced the Salem brand, which was the first filter tripped menthol cigarette.
HEALTH HAZARDS REVEALED
IN 1964, the surgeon Generals Report on smoking and health came out. This report
assisted in allowing the government to regulate the advertisement and sales of cigarettes.
The 1960s in general was a time when much of health hazards of smoking were reported.
In 1965, television cigarette ads were taken off the air in Great Britain. In 1966, those
health warnings on cigarette packs began propping up. In 1968, Bravo a non tobacco
cigarette brand was marketed made primarily of Lettuce, it failed: miserably. Because of the
negative press about tobacco, the major tobacco companies began to diversity their products
Phillip Morris began to buy in to the Miller Brewing company, makers of Miller Beer,
Miller lite, and Red Dog Beer. RJ Reynolds Tobacco Company drops the tobacco
company in its name, and becomes RJ Reynolds industries.

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It also began to buy into other products, such as aluminum. American Tobacco
Company also drops tobacco from its name, becoming American brands, Inc. In 1971,
television ads for cigarettes are finally taken off the air in the U.S.cigarettes. However, was
still the most heavily advertised product second to automobiles? In 1977, the first national
great American smoke art took place.
In 1979, the surgeon general reported on the health consequences of smoking for
women. This is in light to the increasing number o women who were taking up the bad
habit. Some attribute is to slick and campaign of the Virginia slims brand, youve come a
long way baby.
THE RECENT PAST
During the 1980s there were many lawsuits failed against the tobacco industry
because of the harmful effects of its products. Smoking became politically in correct, with
more public places forbidding smoking. In 1982, the surgeon general reported that second
hand smoke may cause lung cancer. Smoking in public areas was soon restricted, especially
at the work place. In 1985, lung cancer became the No.1 killer of women, beating out breast
cancer! Phillip Morris continued to diversity into other products, buying into general foods
corporation and Kraft Inc in 1985. R Reynolds also diversified, buying Nabisco and
becoming RJR/NABISCO.
In 1987, congress banned smoking on all domestic flights lasting less than two hours.
In 1990, smoking is banned, expect to Alaska and Hawaii. In 1990, Ben & Jerrys (of ice
cream fame) boy cots RJR/ NABISCO, and dropped Oreos from its ice cream products.
During the 80s and 90s the tobacco started marketing heavily in areas outside the
U.S, especially developing countries in Asia. Marlboro is considered the worlds No1 most
valuable brand of any product with a value over $ 30 billion! Over this period, there is a
battle between coca cola and Marlboro as the No1 brand in the world.
In the recent years there is growing evidence that the tobacco industry has known all
along that cigarettes are harmful, but continue to market and sell them.

19

There is also evidence that they know that nicotine was addictive and exploited this
hidden knowledge to get millions of people hooked on this dangerous habit.
Tobacco industry is an agro based industry. Tobacco is cultivated mainly in the states of
Andhra Pradesh and Karnataka. Most of the tobacco used for the manufacture of cigarettes
and for exports (is produced from these two states).Tobacco is also grown in Tamilnadu,
Westbengal, Uttar Pradesh, Gujarath, Madhyapradesh, Maharashtra and Orissa also.
However the tobacco grown in these states is of very less quantity and is not used for
manufacture of cigarettes and exports. Several varieties of tobacco such as Virginia flue
cured, Virginia air cured, light soil burly, sun cured Virginia, nature, chewing tobacco,
HDBRG, Wrapper tobacco, Bidi tobacco and Hookah tobacco etc., are grown in India.
Virginia flue cured is a major variety grown in India. More than 80% of Indian tobacco crop
belongs to this variety.
The tobacco cultivation exports and some other industrial activities are regulated by
central government (Ministry of commerce) through tobacco board. Tobacco board is headed
by I.A.S officer of senior category generally from the central government. The board consists
of several Central government officers, state government officers, political leaders,
representatives of farmers and reputed Industrialists. One of the directors of ML Group is
always representing the industrialists in the tobacco board.
Tobacco board issues licenses to the farmers who are permitted to grow tobacco. The
license regulates the cultivation area. The farmers have to restrict the cultivation to the given
area and must sell the grown tobacco through tobacco board auctions only. Any violation is
an offence and is punishable.
In Virginia flue cured variety the tobacco leaves are separated from the plant and are
cured in tobacco barns are like a furnace when the fumes are used to cure the green leaves of
tobacco plant. Tobacco barns appear like small godowns with firing chambers at the bottom
fixed to the walls. The green tobacco leaves of the plant will be arranged in the form of rows
inside the barns. The temperature inside the barn will be regulated by means of flow of hot air
through the firing chambers.

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This is a simple technical process by which the green leaf exposed to hot air at high
temperature and cooled slowly over a period of time. After the curing process, the primary
leaf tobacco turns into leman yellow colour, gold colour, brownish yellow colour, brown
colour and dark brown colour. This tobacco is called katcha tobacco leaf and is ready for sale.
The formers pack different colours in different packages as each colour generally will be
classified as a separate grade which will have a separate price in the market?
Tobacco must be sold only through tobacco board auction platforms under strict rules
and regulations. Former or buyer as permitted to transact in tobacco board auction platforms.
Central Government has also established several tobacco research institutes for betterment of
quality of tobacco in India. The other varieties of tobacco are not regulated by tobacco board.
The tobacco purchased from the tobacco board auction platforms will be graded
further whenever required. Grading is a process of manual separation of one variety of leaf
from the other and is done mainly on the basis of colour. Each grade will generally have
unique quality parameters.
The graded tobacco is further processed either manually or on machines. The
processing is called DEBUTTING and SRRIPPING. Workers separate the butt of the tobacco
leaf from the leaf. This process can also be done on machines. The machine processing is
called THRESHING.
After stripping/ threshing, the tobacco will be further processed for stabilization of
moisture. The process is called REDRYING. In the process the tobacco first of all will be
derived completely then it will be given stream at the required temperature.
After re-drying process, the tobacco will be packed in the required packing say bale
packing/ case packing etc. The packed tobacco is ready for export. In India, the first threshing
plant which is working uninterruptedly for the last 25/30 years an imported one by Maddi
Lakshmaiah and co.ltd. This was installed at Ganapavaram and the plant is still running at
high efficiency levels in the country with 98% average efficiency level for the last three
years. There are two plants owned by ITC which can be compared with this plant in the
country. ITC uses their threshing plants for their own consumption.
Tobacco industry is fetching more than Rs.9,000 crores of revenue to the central
Government. It is providing employment two lakhs of people directly and millions of people
indirectly and is also contributing Rs.1,000 crores of forex reserves to the country.
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The central Government is announcing several restrictions on advertisement and

consumption of cigarettes in the country. It is encouraging the formers by providing several
subsidized fertilizers and by supporting through tobacco board.
The major players in tobacco industry in India are as under
Name of the company

Occupation

Percentage of
business in India

ITC LTD

Cigarette manufacturing and unmanufacturing tobacco exports

50%

VST INDUSTRIES LTD

Cigarette manufacturing and unmanufacturing tobacco exports

Cigarette manufacturing and un-

12%

GTC INDUSTRIES LTD

manufacturing tobacco exports

6%

GODFREY PHILLIPS
INDIA LTD

Cigarette manufacturing and unmanufacturing tobacco exports

8%

The consumption is linked with the habits of the people; the tobacco usage
cannot be eradicated. Even in countries like USA where anti tobacco campaign started in
1962. The production of cigarettes and consumption of cigarettes is still progressing.
EXPORTERS:
S.No

Name of the company

Occupation

Percentage of
business in India

ML GROUP

Cigarette manufacturing and unmanufacturing tobacco exports

5%

POLISETTY GROUP

Cigarette manufacturing and un-

BOMIDALA GROUP

manufacturing tobacco exports

Cigarette manufacturing and un-

5%

manufacturing tobacco exports

3%

MITTAPALLI GROUP Cigarette manufacturing and unmanufacturing tobacco exports

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3%

OTHER EXPORTES

Cigarette manufacturing and unmanufacturing tobacco exports

8%

Our ML Company has developed strong relationship with overseas manufacturing in

Europe, Russian and Middle East. Through there is very good demand from Russian market.
Our company is not exporting much because of poor economic conditions of the country.
M.L.company as now exporting cigarettes to Middle East and USA by
manufacturing the cigarettes on job work basis. The company foresees a very bright future for
this company in tobacco in the coming years.
M.L. Group is the first tobacco company who exported tobacco to China and is the
first company who imported from China. There was no imported tobacco in Indian tobacco
history before this and after this till now. The group maintains good relationship with the
Chinese tobacco monopoly.
One of the trade delegates that accompanied our honorable prime minister during his
recent visit to china is from ML Company. Three ambassadors of china have visited our
company in the past as our guests and expressed their satisfaction on our infrastructure
facilities.

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COMPANY PROFILE
HISTORY:
The highly competitive tobacco market represented tremendous growth potential to
Mr. Maddi Lakshmaiah. Foreseeing the and for quality Indian tobacco a long term strategy
was formulated. Right from its inception, the company adhered to international standards and
made rapid in roads to global tobacco markets.
A sophisticated threshing plant of international standards was commissioned in 1976
first in Andhra Pradesh. It created a revolution in tobacco processing and led to a huge
upsurge in demand. This led to the commissioning of two modern plants with threshers,
redryers and other sophisticated equipment for the processing of quality tobacco.
ML Group has taken its credo of total quality to the furthest, whether in the quality of
process, products or working conditions for the vast workforce. The foresighted innovation of
Sri Maddi Lakshmaiah has given the group strong edge. The personal involvement of the
directors in all aspects of the business has resulted in high quality operational parameters.
The company can proudly claim some of the most skilled work force and a highly
efficient management people who have contributed significantly to the prominent position the
company. The company has earned recognition from apex institutions and is a recognized
leader in tobacco markets the world over.
The quantum growth in ML Co: Spread of investment in infra structure and
diversification into other business.
ML GROUP under its umbrella, various companies have an annul turnover of Rs
1550 million and an asset base of Rs 2000 million. A real estate development wing was setup
to develop and lease commercial properties with working environment that rival the best
internationally.
The information about the establishment of the group which consists of five concerns
as displayed on the preceding pages, let us have a look on the various concerns of ML Group
individually:

24

ML group of companies (ML group) was founded by Mr.Maddi Lakshmaiah in

1970. He joined in his family business in 1952 after completing his engineering degree. The
joint family business started payback in 1943 dealing with tobacco exports, well before
India.
ML group of companies (ML group), a pioneer in Indian un manufactured tobacco
industry has been exporting tobacco to all over the world for the past three decades. It has
solidified its relationship with overseas tobacco merchants& manufactures.
Maddi Lakshmaiah & Co Ltd, was set up at Chilakaluripet, a village in Andhra
Pradesh that produces some of the best tobacco in the country. Today it has evolved into a
diversified, multi products conglomerate known as ML Group that is recognized world over
for its excellence. The company processes tobacco and another agro based products that are
used both in the country and exported to the most quality conscious world markets.
An emphasis on total quality and dedication to the interests of its clients worldwide is
a hallmark of ML group. The group is performing excellently well from the date of its
incorporation and has been exporting large volume of tobacco to Russia, CIS countries,
U.K, Europe, African countries, China, Latin American countries, Middle East countries,
Bangladesh & Nepal etc. The group established its branches in Russia & European
countries and has strong tie up with African and Latin American countries and especially
with the neighbor giant China.
The group is founded by Sri Maddi Lakshmaiah, a mechanical engineer after 15 years
of versatile experience in tobacco industry in 1970 at Chilakaluripet , Gnter dist, A.P .the
group has 5 major concern namely;
Maddi Lakshmaiah & Co Ltd (MLCO)
ML Agro Products (MLAP)
K.S Subbaiah Pillai & co ltd (KSSP)
ML Exports (MLE)
Coromandal Agro Products & Oils Ltd (CAPOL)

25

Expecting CAPOL which is engaged in edible oils all are engaged in tobacco industry.
MLCO & MLAP have concentrated on processing activities where as KSSP&MLE are
leading exporters and are recognized by government of India as export house.
Vision:

Descriptions of something can organization corporate culture, business technology an

activity in the future.

The company is trying to develop world class information technology building in

Bangalore, china and Hyderabad in the coming 5 years time.

The company is going for sheet tobacco plant in joint venture with one of the Indian
best tobacco cigarette manufacturer.

The company is also contemplating for 100% tobacco joint venture association with
one of the best cigarette manufacturer.

The company exports with second strongest country china, Russia and Germany.

The ambassadors are coming to Maddi Lakshmaiah Company limited in August.

The ambassadors of South Africa are hold up and the company is having top joint
venture with U.K.

Mission:
A mission statement is an enduring statement of purpose that distinguishes one
business from others similar firms. This statement identifies the scope of firms operations in
product and market terms.
M.L & company limited mission is to produce good quality of tobacco and get
number one position in India in producing and exporting tobacco.

26

Policies:
Policies can be considered a guide to action it is desirable that persons responsible for
implementation of policies use discretion and judgment in appraising and deciding among
alternative courses of action.

The company has well defined policies for exports the quality tobacco.

To conduct its operation with honesty integrity and transparency.

Employment policy is formulation and adoption.

This company shall maintain quality leadership by providing products and services
that completely and consistently meet the agreed.

Requirements of all customs and unsure fitness for use of all products there by
ensuring total confidence to every customer.

Employment policy formulation and adoption.

Canteen, cleaning, security maintenance of good industrial relation.

Future plans: The company (Maddi Lakshmaiah) for an ECB for 50 million dollars and
development of regular trade and also infrastructure projects in India.
Maddi Lakshmaiah Company is also working on joint venture basis with UK based
Commodities Company for supply of agri products to South Asian countries.
The company already entered into joint venture with an US based company by name
CARGIL for the south Indian needs.
They have worked for joint venture arrangements with Yugoslavian government for
their requirement for India.
This for above five million dollars of investment in supply of 5000 tones every year.
27

Achievements / awards: Maddi Lakshmaiah Company has no particular achievements/ awards.

Maddi Lakshmaiah group (CAPOL Chirala, Prakasam Dist) got several achievement
awards.
All India Cotton Feed Crushers Association, Mumbai awarded CAPOL as III highest
exporter and II highest domestic seller of cotton seed extraction for the year 1992-93.
CAPOL is the highest exporter and III highest domestic set of cotton seed extraction
for the year 1993-94.
CAPOL is the III highest domestic seller of cotton seed extraction in the year 199495.
CAPOL is the II highest domestic seller of cotton seed extraction in the year 1995-96.
CAPOL is the II highest domestic seller of cotton seed extraction in the year 1997-98
CAPOL is the III highest domestic seller of cotton seed extraction for the year 19992000.
CAPOL is the II highest extraction of cotton linter for the year 2000-01.
CAPOL is the III highest exporter of cotton linter and III highest domestic seller of
cotton seed extraction for the year 2001-02.
The company (CAPOL) has been awarded may commendation led by government of
AP for its continuous harmonious relations with its employees in the years
1994,95,96,97.
Track record:The company has 30 years of performance.
It never failed in meeting the scheduled repayments of loans with the bank. Rather it
postponed most of the loans with the lenders.

28

LAND MARKS: Maddi Lakshmaiah Company was the first Indian company to join with China to do
business.
It was the first company to import tobacco and export tobacco.
Ambassadors have already come here and 4th one is coming in this august.
GRADING POINTS:Maddi Lakshmaiah Company has three grading points at Chilakaluripet i.e. Martur,
Muppavaram and some other on national highway between Guntur and Chilakaluripet and
three more in Guntur city.
NEGOTIATIONS: The company is trying to develop world class information technology building in
Bangalore, Chennai and Hyderabad in the coming five years time
The company is going for sheet tobacco plant in joint venture with one of the Indian
best tobacco cigarette manufacture.
The company is also contemplating for 100% tobacco joint venture in association
with one of the best cigarette manufacture.
The company exports with the second strongest country china, Russia and India.
The finance manager is assisted by a team of experienced management and non
management staff who takes care of finance & accounts activities of the organization.
The export manager (ML Company) deals all the matters regarding the exports
department and directly reports to the managing director.

29

ML group was a multifaceted corporate leader of which the group consists of five
concerns namely.
Maddi Lakshmaiah and Co Ltd - Tobacco threshers, packers & exporters, real estate
&leasing.
ML Agro Products - Tobacco threshers, packers &exporters.
KS Subbaiah Pillai & Co (India) ltd - Tobacco export.
ML Exports. - Exports house.
Coromandal Agro Products & Oils ltd. - Bulk producers of oils.
Maddi Lakshmaiah & Co Ltd:ML & company Limited, the fore runner of all the companies of ML group, the
company enjoys a pre eminent standing in the world of tobacco, exporting to China, Russia,
Western Europe, Africa and Bangladesh among others.
Supported by a team of experts, technicians, engineering and a skilled world force,
the company has forged a head setting standards that have become benchmarks in the
industry. Today Chilakaluripet is a well known name in the global tobacco business in no
little measure due to the pioneering efforts of the intrepid founder, Sri Maddi Lakshmaiah.
ML AGRO PRODUCTS LTD:ML agro products ltd was born of an increase in demand for quality tobacco in both
the domestic and foreign markets. Building on the rich experience of running a profitable
operation, a new plant was set up in 1976 at Martur, Prakasam district.
It is fully self sufficient with modern threshers, lamina redryers, and automatic
double ram press, sophisticated quality control laboratory and mammoth ware houses. It
ranks among the largest threshing units in the country apart from its export commitments.

30

KS Subbiah Pillai & Co (India) ltd:

K.S.S.P & Co Ltd was acquired in 1982 with all its assets K.S Subbaiah Pillai & Co
(India) Ltd is the group with leading tobacco exporting unit. In a field that is extremely
competitive, the excellent performance of the company is an indicator of the trust that it
enjoys across the globe.
COROMANDAL AGRO PRODUCTS & OILS LTD (CAPOL):
CAPOL started in 1976, extracts and refines cotton seed oil. Today it is a multi
products company with equipment to process all kinds of oil seeds. The plant has a storage
capacity of 2100 tones for different types of oil.
Extreme care is taken to ensure that at every stage in the process of production right
from selection of the raw material to packing the products, only the best is passed. Minimum
human intervention and rigorous application of quality control process ensures the final
product conform to all appropriate standards. The by-products, hulls and de-oil cakes are in
high demand in many parts of the world.
ML EXPORTS:
ML exports is a totally export oriented unit, with clients in a variety of markets
around the world. The company enjoys a reputation for excellent delivery schedules and
transparent business practice in global markets.
SHARE HOLDING PATTERN & MANAGEMENT OF GROUP:
The group has been successfully improving its business in all of its activities such as
domestic sales, export sales, tobacco processing & other tobacco development activities,
warehousing facilities etc.
The group has two tobacco processing plants and one solvent extraction plant in
South India. The group owns around 1, 00,000 sq. mts of warehousing complexes in south
India.

31

INCORPORTATION:
ML Company is a limited company (m/s Maddi Lakshmaiah and Company Limited)
which was originally incorporated on 8th day of October 1970 under the name, Maddi
Lakshmaiah and Company Private Limited having passed the necessary special resolution on
the 23rd day of March 2002, in terms of Sec 31(1)/44 of the Companies Act 1956 the name of
the company changed to Maddi Lakshmaiah and Company Limited.
NATURE OF ACTIVITY:
o

This factory produces good quality tobacco.

The production capacity per each day is 1 lakh 20 tones

FINANCIAL STRUCTURE;
The initial investment of ML Company is 10, 00,000.
TURN OVER OF THE GROUP:
The turnover of the group for the financial year 2009-2015 standards is at around Rs
800 million. The net earnings after taxes of the group have been maintained at Rs 150/200
million per annum.
The group has sound assets base having assets spread in most of the prime centers &
ports of South India.
The group has developed excellent infrastructure during the past 30 years which has
been yielding a promising regular income of more than Rs 225 million every year.

32

TURNOVER OF THE COMPANY:

The turnover of ML Company for the following years of 2009-2015 is as follows:
S NO

NO OF YEARS

AMOUNT IN RS IN LAKHS

2009

2370

2010

1693

2011

488

2012

2372

2013

3358

2014

1778

2015

1000

Profit after tax:

SNO

NO OF YEARS

AMOUNT IN RS IN LAKHS

2008

109

2009

270

2010

203

2011

312

2012

262

2013

134

2014

103

2015

123

The above table represents the profit for the following years after paying all the taxes.
The products of the M.L Company &their main uses:
33

The various products of the Company and their economic uses are as follows.
Karnataka light soil-Mysore:
This tobacco is preferred for low nicotine content, high filling capacity and suitability
to blend well with any tobacco.
Monsoon burley:
Used in U.S. blended cigarettes
Traditional burley:
Used for pipe mixture, chewing plugs and hookah tobacco paste.
Kurnool and Telangana (Natu):
Primarily used for cigarette blending and for hookah tobacco paste making.
Eluru (Natu tobacco):
Mainly used for cheroots, snuff pipe tobacco, cigarette blending and for hookah paste
making.
Oriental:

Used for cigarette blending.

Century fire cured tobacco:

Used in pipe mixtures and hookah tobacco paste
Bidi tobacco:
Used in the manufacture of bidis, a hand rolled smoking products made by wrapping
tobacco with natured bony leaves.
Cigar wrapper tobacco:
Mainly used for wrapping the cigars.

Cigar filler tobacco:

34

Mainly used in the manufacture of cigars &exported to some countries for use in
hookah tobacco paste.
Cheroot tobacco:
Used for the manufacture of cheroots and hookah tobacco paste.
Lanka tobacco:
Used for the manufacture of cigars & cheroots
Tamilnadu:
Used for chewing & cheroot.
Black Chopadia:
Used as chewing tobacco.
Red Chopadia:
Mostly used for chewing also called lat Chopadia and safna. The export packing
ranges from 250gms-1000gms and is available in bales of up to 100kg.
Rustic tobacco:
Used as chewing tobacco, hookah tobacco for tobacco sheet making, for kreteks in
Indonesia, pipe mixers& cigarette blending to some extent
Motihari:
Used in manufacture of various tobacco products such as chewing tobacco, hookah
paste, bidis etc.
Southern light soil:
Blends with any tobacco.
Black soil (traditional):
Blends well with any tobacco.
Northern light soil (nls):
This tobacco is flavoured to semi flavoured with excellent ageing properties.
Objectives of the company:
To serve the nations vital interest in the tobacco related sectors.
To earn a reasonable return on investment.
To work towards achievement of self reliance in the field of tobacco, threshing
formulation& distribution system.
To create strong research& development in the field of tobacco and stimulate
R&D of exports.
35

 To maximize utilization of the existing facilities in order to improve efficient

and increased productivity.
To import training, conduct seminars, workshops and educational courses on
computers, computer maintenance software development and software exports
and to develop and design software in India.
Abroad and to start software technology part in India or abroad and to offer
relationship management solutions for individuals and organizations both
individually and through strategic alliances with others companies.
To employ experts to investigate and examine into the conditions, prospects,
value character and circumstance of any business concern and undertaking and
generally of any assets property or right.
To carry on all kinds of agency business.
To carry on business as merchants in all kinds of goods.
BOARD OF DIRECTORS:
Managing Director

: Sri Maddi Lakshmaiah

Director

: Sri Maddi Seetha Devi

Director

: Sri Maddi Venkateswara Rao (M.B.A in USA)

Director

: Sri Maddi Ramesh

Excutive Director

: Sri Mallavarapu Rama Mohana Rao

Excutive Director

: Sri Meaden Sekhar

MANAGEMENT TEAM:
Managing Director

M. Venkateswara Rao
36

Director

M. Lakshmaiah

General Director

M. Rama Mohana Rao

Personnel Manager

B. Babu Rao

Leaf Manager

M. Rama Mohana Rao

Finance Manager

M. Shekhar

Export Manager

M. Shekhar

Production Manager

K.S. Rami Reddy

Circle Manager

Anji Babu

Factory coordinator

P. Subba Rao

ORGANIZATION STRUCTURE:
The company (ML Company) is under the complete administrative control of the
managing director and he is reported by the director and he is reported by general manager.
The General Manager (ML Company) is assisted by five General Managers.
o Manager personnel.
o Manager leaf department.
o Manger finance.
o Manager exports.
o Manager production.

ORGANIZATION STRUCTURE

37

Responsibilities:
38

The M.L Company managing director M.Venkateswara Rao is under the complete
administrative control of the managing direction and he is reported by the director and he is
reported by general manager
The general manager of ML Company is M. Ram Mohan Rao assisted by fine general
manager i.e., personal manager, leaf manager or department manager, finance manager,
exports manager and production manager.
The personal department manager B. Babu Rao is headed by who reports directly to
G.M. he looks after the areas of personnel & administration under there may be a personal
offices welfare officer and a safely officer.
The finance manager M.Shekhar is assisted by a team of experienced management
and non management staff who tekes care of the finance is accounts activities of the
organization.
The export manager M.Shakhar deals all the matters regarding the export departments
and directly reports to managing director.
The production manager K.S.Rami Reddy is headed by the G.M. is assisted by a plant
engineer and staff of the production department.
FUNCTIONS OF THE COMPANY:
The group has the following different departments.
PERSONNEL DEPARTMENT:
This department deals with the matters of industrial relations, HRD, welfare activities,
labour legislations, recruitment and issues of wages etc. which is the main department in the
organization.
LEAF DEPARTMENT:
This department deals with the matters of tobacco leaf. It looks after buying tobacco
from the farmers for the processing of tobacco.
EXPORT DEPARTMENT:

39

It looks after the export matters of the organization. This organization exports tobacco
leaf to China, Bangladesh & UK.
PRODUCTION DEPARTMENT:
This department takes care to produce quality tobacco to customers.
MARKETING DEPARTMENT:
This department takes care of marketing the company tobacco to other countries such
as Russia, Europe, Middle East, Bangladesh, African countries etc. They sell varieties of
tobacco in market and maintain good relationship with the customers. This is one of the
main/important departments in this organization.
M.L group was concentrating on domestic market.
It ties up with Indian strongest cigarette manufacturing company, ITC.
Methods:In ML Company the methods of purchasing tobacco is of various types i.e.

With tenders raised in market, documents will be filled up by various companies or

merchants can purchase them.

They have good contacts with various merchants (mediators between manufacture &
exporters) in reputed companies at Guntur.

Every year they are procuring 1000 tons of various varieties /grades of tobacco.

They usually do their business with the international reputed companies like.
o

Universal

Demon

Standard commercial

The company has some direct contacts with other countries and they directly ask them
at the time of requirement.
40

Marketing channels:

Normally they send samples/verities.

At the time of requirement, they send samples through couriers.

Participating in exhibitions- every year ML Company was taking participation in 5-6

exhibitions.

The people who have connection in tobacco visit tobacco stalls usually, even from
Europe, Russia & china.

People like manufactures, dealers, bankers, merchants of tobacco may visit the
tobacco exhibitions.

They display the samples of the company and sell the samples.

Another mode:The other mode of marketing (channel) is through business delegations of Tobacco
Board of Central government, Ministry of Commerce. Government. of India, Guntur. The
tobacco board usually:

Regularize crop.

Register of foreigners.

Fixing the crop size.

The board explore marketing possibilities with the help of exporters.

Another type of business mode is tobacco trade delegations from different countries
(usually every year 5-6 delegations may takes place).

The tobacco delegations meet exporters and inspect all the tobacco.

They get the business through reputation.

Customers usually approach them because of the good will of the company.

41

Mode of payment: Exporters normally receive payment from their buyers through L.CS (letters of
credit).
Some time through advance payment ion terms of D.A&D.P.
o Document against payment
o Document against acceptance.
After customers checkers in the Madras port it may send to abroad.
Shipment of tobacco is through Chennai port only.
At the same time shipment of tobacco the pay/buyers send payment to bank in the
companys account.
Credit: Some parties ask/need some time for payment with in certain period from the date of
bill of payment (up to 180 days).
In India there is a rule that on credit basis, the payment must be done within 180 days
from the date.
Market range:ML Company was marketing 7-10 million kilos of tobacco every year. But the market
range is not fixed. The market range depends on supply &demand forces.
When there is demand, the company produces more.
In the tobacco field, the marketing/market range may be flexible based on
international supply -demand.

42

FINANCE DEPARTMENT:
In this department
Cash payments will be checked by cashiers.
Cash bills and credit bills may be received from trashing factory and engineering
department.
Concerned accounts may be generalized by the accountants and may be sent to
concerned heads.
Credit bills payment will be given in the form of cheeses or DDs.
SWOT ANALYSIS
Strengths

Effective communication

Online growth

Loyal customers

Strong management team

Strong brand equity

Strong financial position

Pricing

Weaknesses

Diseconomies to scale

Low R&D

No online presence

Not diversified

Ubiquitiouegory, products, services

Opportunities

43

Acquisitions

Financial markets (raise money through debt, etc)

Online

Product and services expansion

Takeovers

Threats

Competition

Cheaper technology

External changes (government, politics, taxes, etc)

44

THEORETICAL FRAMEWORK
Wage and Salary Administration
Meaning and Definition:A wage (or Pay) is the remuneration paid, for the services of labor in production,
periodically to an employee/worker. Wages usually refer to the hourly rate paid to such
grouts as production and maintenance employee (blue-collar workers). On the other hand,
salary normally refers to the weekly or monthly rates paid to clerical administrative and
professional employees (white-collar workers).
According to Yoder and Heneman:Wages are the compensation of wage earners, the numerous employees who use the
tools and equipments for their employers to produce goods and services that are sold by their
employers.
According to P.M. Stochank:Wage is that labors remuneration which creates the utility.
According to Benham:Wages means the amount paid to the labor for his services to the employer
Concepts of wages
1) Minimum wage:
Minimum wage is the one which provides not merely for bare sustenance of
life, but also the preservations of the efficiency of the worker. For this purpose, a minimum
wage must also provide for some measure of education, medical requirements and amenities.
Minimum wage may be tied by an agreement between the management and the worker, but is
usually determined through legislation. This is moir so in the unorganized sector where
labor is unionized. In the fixation of minimum wages, beside the needs of workers, other
factor like ability of the concern to pay, nature of job and so on, are also considered.

45

2) Fair wage:
This is understood in two wages. In a narrow sense, wage is fair if it is equal
to the rate prevailing in the same trade and in eh neighborhood for similar work. In a wider
sense, it will be fair if it is equal to predominant rate for similar work throughout the country
and for trader in general. Irrespective of the way in which fair wage is understood; it can be
fixed only by comparison with an accepted standards wage. Such a standard can be
determined with reference to those industries where labor is well organized and has been able
to bargain well with the employers.
3) Living wage:
Living wage is a step higher than fair wage. Living wage may be described as
one which should enable the wage earner to provide for himself/ herself and his/ her family
not only the bare essentials of life like food, clothing and shelter but a measure of frugal
comfort including education for children protection against ill health requirement s of
essential social needs and/ or measures of insurance against the more important misfortunes
including old age. A living wage must be fixed considering the general economic conditions
of the country. The concept of living wage, therefore, various from county to country. In the
more advanced countries, living wage itself forms the basis for the minimum wage.
Wages Vs Salary
Wages is compensation to the employees for services rendered to the organization. In
case the quantum of services rendered is difficult to measures, then the payment is called
salary. Normally the wages period is shorted than the salary period.
Payment made to labor is generally referred as wages. Money paid periodically to
persons whose output cannot be easily measur3ed such as clerical staff as well as supervisory
staff, is generally referred to as salaries. Salaries are paid uniformly, generally on monthly
basis and at times the element of incentive is introduced in the form of commission.
Incentives are paid to salaried persons in addition to their salaries. However, it is in the area
labor that there are several types of methods of wage payment.

46

1) Objectives of the Wage and Salary Administration

1. Reward employees according to effect and merit.
2. Attract and retain the services of desirable employees.
3. Get improved employee moral and productivity.
4. Keep labor cost within reasonable limits so as to safe guard the interests
shareholders, competitive worth of the organization and its product and
profitability.
5. Pay employee according to the importance and difficulty of the job.
6. Incorporate legal requirements.
7. Facilities payroll administration, budgeting and wage and salary control.
8. Simplicity collective bargaining.
9. Explain to employees how and why they are paid.
10. Facilitate employee organizational flexibility.
Functions of Sound Wages and Salary Administration
To recommend changes in wage policies and in the salary of wage level.
6. To recommend top management specific raises for executives above a specified limit.
7. To check all activities of salary administration group against the company policies.
8. To approve in a broad policy determining manner, the system of jb description and job
evaluation.
9. To review wage and salary schemes department wire.
5. To recommend to top management the wage policies of the administration wage
programmed.
Essential Characteristics of a Good Wage Payment System
The system of wage payment should be such that it is acceptable and beneficial to
both management and workers. Such a system must contain the following features.
1) Motivation:A good wage system should be providing an incentive to wordier s to produce more.
This can be done by linking wages with output. Workers should be given a share in the gains
of higher productivity. Initiative and sound judgment should be rewarded.

47

2) Stability:The system of wage payment should be permanent and stable. Fluctuating system
may create a doubt in the mind of workers. There should be no fear of rate cutting with
increase in output. Changes in the wage plan should not be made unless there is a substantial
change in the methods of work.
3) Flexibility:The wage plan must be capable of being adjusted quickly to the changing
requirements of the enterprise. It should permit an early detection and correction of mistakes.
4) Equity:The wages differentials should be based on some rational and objective criteria. The
wage system should ensure equal pay for equal work. The system should be fair, i.e., it
should not discriminate among individuals. Variations in skill, responsibility job conditions
etc. must be taken care of. The wage rate should be based on an equitable evaluation of
contributions and performance. The wage system should be just and equitable to all types of
employees.
5) Result Oriented:The wage plan should establish a direct relationship between effort and reward. It
should provide for higher wages to more efficient workers. Incentive payments under the plan
should be large enough to attract the workers towards higher productivity.
6) Simplicity:The system of wage payment should be easy to understand and simple to operate. A
complicated system which can not be readily understood by workers is of little value.
7) Economy:The cost of designing and administering the system should be reasonable the wage
system should permit maximum efficiency and minimum labor cost of unit. The cost of
supervision should not be unreasonably high. Benefits accruing from the wage plan should be
more than its costs.

48

8) Reasonable Standards:Standards of work used in a wage plan should be reasonable and attainable. They
should be neither two easy or too difficult to achieve. Too easy standards would increase the
costs and there by defeat the very purpose of the incentive wage plan. Standards beyond the
reach of workers will not be acceptable to them.
9) Security:A good wage payment system should guarantee a minimum wage to the workers.
Minimum wage would be sufficient to meet the physiological needs of workers so that they
are saved from uncertainty and mental worry. Real wages should be protected against
inflation.
10) Mutual Co-Operation:The wage system should promote co-operation between employer and workers. The
wage plan should be installed with the co-operation and understanding of the workers.
Methods of wage payment
1) Time wage:This is the oldest ad the most common method of fixing wages. Under this system,
workers are paid accordingly to the work done during a certain period of time, at the rate of
so much per hour, per day, per week, per fortnight or per month or any other fixed period of
time. The essential points is that the production of the worker is not taken into consideration
in fixing the wages he is paid at the settled rate as soon as the time contracted for is spent.
Advantages of Time wage system:1. Simplicity is the greatest merits of time wage system. Time which a man expands
on a job is easy to measure.
2. The quality of the work is not degraded as the workers are in no hurry to increase
the output.
3. As all the workmen employed for doing a particular king of work receive the same
wages, ill-will and jealousy among them are avoided.

49

4. Due to the slow and steady pace of the worker, there is no rough handling of
machinery, which is a distinct advantage for the employer.
5. It is the only system that can be used profitably where the output of an individual
workman or groups of employees cannot be readily measured.
6. A trade union accepts this form of wage payment quite willingly because it does
not create any distinctions on the rank of workers of account of differences
inefficiency.
Disadvantages of Time wage system:1. It does not take into account the fat that men are of different abilities and that if all
the persons are paid equally, better workmen will have no incentive to work
harder and better.
2. As there is no specific demand on the worker that a piece of work needs to
incomplete in a given period of time, there is always the possibility ofr systematic
evasion of work by workmen.
3. As the employer does not know the amount of work that will be put in by each
worker, the total expenditure on wages for turning out a certain piece of work
cannot he adequately assessed.
4. As no record of individual workers output is maintained, it becomes difficult for
the employer to determine his relative efficient workers are either driven out or
their efficiency is pulled down to the level of inefficient workers.
Suitability of Time wage system:1. Where supervision is close as in small concerns,
2. Where quality is more important than quantity, e.g., tool making,
3. Where measurement of work is not simple or not possible,
4. Where specializes skills are required to perform the job,
5. Where work is not repetitive and standardizes,
50

6. Where collective efforts of a group of a group of worker are required for the
performance of work,
7. Where work is machine paced and an individual worker has no control over the
number of units produced.
2) Piece Wage system:Under this system, workers are paid according to the amount of work done or the
number of units completed, the rate of each unit being settled in advance, irrespective of the
time taken to do the task. Under this system, wage payable to an employee are related
directly to quantity of work done by him. The work may be measured in terms of units of
output. The units are called piece and payment is made so much per piece.
Wage (W) = No. of pieces produced (N) x rate per piece (R)
The piece wage system is sometimes called incentive system because the piece rate is
directly related to the efforts put in by the worker.
Advantages of piece wage system:1. It pays the workman according to his efficiency as reflected in the amount of
worth turned out by him. It satisfies an industrious and efficient worker, for he
finds that his efficiency is adequately rewarded. This gives him a direct stimulus
to increase his production,
2. As the direct labor cost per unit of production remains fixed and constant,
calculation of costs while filling tenders and estimates becomes easier,
3. The total unit cost of production comes down with a larger output because the
fixed overhead burden can be distributed over a grater number of units,
4. It avoid frequent industrial disputes which otherwise are inevitable.

51

Disadvantages of piece wage system:1. Payment under this system is irregular and uncertain for workers point of view,
and thus creates uncertainty in the life of workers as well as he feels unable to
maintain desirable standard of life because of the uncertainty of the amount of
wages.
2. During the periods of illness, or disability, the worker in not paid any amount,
whereas in fact, during these periods monetary need becomes more pressing.
3. Too much emphasis on the quantity of production may lower the quality of
products.
4. The establishment of piece rates is difficult and often becomes a source of
grievances on the part of workers. Without undertaking time and motion study and
having past experience, piece rate may be set at so low a level that it exercises a
demoralizing effect on the workers.
5. There is a greater chance of dete3rioration in the quality of work owing to overzealousness on the part of workers to increase production. This over zealousness
may tell upon their health, resulting in a loss of efficiency.
Suitability:1. Where specialized artistic skills of craftsmanship is not required for the
performance of the job, i.e., where work is not art based or craft man oriented,
2. Where quantity of output is more important than its quality,
3. Where the work is of standardize and repetitive character,
4. Where units of output are measurable.

52

Comparison between Time rate system and Piece rate system:1. In time wages, time is the basis of payment whereas in piece wage quantity of
work is the basis of payment,
2. Time rate system does not make a distinction between efficient and inefficient
workers whereas piece rate system gives a premium of efficiency.
3. Time rate system provides security of wages to worker while piece rate does not.
4. Time rage system may be used where quality is more important than quantity
whereas piece rate system is used where quantity is more important than quality.
5. Labor unions generally prefer time rate system and oppose piece rate system.
Essentials of a sound wage and salary structure:Compensation:Compensation is a comprehensive term which includes wages salaries, all other
allowances and benefits. According to Carcio, Compensation includes direct cash
payments, indirect payments in the form of employee benefits and incentives to motivate
employees to strive for higher levels of productivity.
Thus, compensation is referred to as money and other benefits received by an employee
for providing services to his employer. Employee compensation may be classified in tow
categories:
1. Base or primary compensation, and
2. Supplementary compensation.
Primary compensation refers to basic pay in the form of wages and salaries. It is a fixed
and non-incentive payment on the basis of time expended on the job.

53

Objectives of compensation:The objectives of a fair compensation package are:

1. A reward system that seems equitable to both employer and the employee, and
2. That the employee will be motivated to continue to work more effectively for the
compensation received.
Factors determining fair compensation:The amount of compensation is determined by the following factors are:
1) Employee worth:The amount of compensation received by a given employee reflects the worth of the
employee in an organization
2) Worth of the job:Jobs vary significantly in their difficulty, complexity, and challenge. Some jobs
require high levels of knowledge and skills, while others can be done by almost anyone.
3) Worth of employee performance:The quality of an employees work affects that persons worth to an employer. Almost
all organizations endorse the concept of pay for performance.
4) Employee supply:Demand and supply of labor influence wage and salary fixation. A low wage may be
fixed when the supply of labor exceeds the demand for it
Wages far the payment made to the employees as compensation for the services
rendered by them to an enterprise. Wages include salaries also. No organization can expect to
attract and retain qualified and motivated employees unless it pays them fair compensation.
Employee compensation, therefore, influences vitally the growth and profitability of the
enterprise.

54

Employee compensation may be classified into two categories:

1. Base or primary compensation, and
2. Supplementary compensation
Base or primary compensation refers to basic pay the form of wages and salaries. It is a
fixed and non-incentive payment on the basis of time expended on the job. Supplementary
compensation consists of incentives and variable payment, based on either individual output,
or output of the group as a whole. Employee compensation is a vital part of human resource
management.
Wage and Salary Administration:Administration of employee compensation is called compensation management or
remuneration management or reward management or wage and salary administration.
The basic purpose of wage and salary administration is to establish and maintain an
equitable wage and salary structure, and an equitable labor cost structure.
A sound wage and salary administration tries to achieve the following objectives are:
1) To establish a fair and equitable remuneration:There should be internal and external equity in remuneration paid to employees.
Internal equity means similar pa for similar work.

2) To attract competent personnel:A sound wage and salary administration helps to attract qualified and competent
people by ensuring an adequate payment for all jobs.
3) To retain the present employees:If the salary level does not compare favorably with that of other similar organizations,
employees quit one and join other organization.

55

4) To improve productivity:Sound wage and salary administration helps to improve the motivation and morale of
employees, which in turn lead to higher productivity.
5) To control costs:Through sound wage and salary administration, labor and administrative costs can be
kept in line with the ability of the organization to pay.
6) To establish job sequences and lines of promotion:Sound wage and salary administration helps to establish job sequences and lines of
promotion wherever applicable.
7) To improve union-management relations:Wages and salaries based on systematic analysis of jobs and prevailing pay levels are
most acceptable to trade unions.
8) To improve public image of the organization:Wage and salary programme also seeks to project the image of a progressive employer
and to comply with legal requirements relating to wages and salaries.
Systems to achieve the objectives:The above mentioned objectives can be achieved by the use of the following systems
are:
1) Job evaluation:All jobs will be analyzed and graded to establish the pattern of internal relationships.
Job evaluation is the process of determining the relative worth of jobs.
2) Wage and salary ranges:Overall salary range for all jobs in an organization is arranged. Each job, grade will be
assigned a salary range. These salary ranges will be fitted into an overall range.

56

3) Wage and salary adjustments:Overall salary grades of the organization may be adjusted based on the data and
information collected about the salary levels of similar organizations.
Principles of wage and salary administration:Compensation management influences the survival and growth of an organization to
the greatest extent. The following principles or guidelines should be followed in the
administration of wages and salaries:
1. Wage policy should be carefully developed keeping in view the interests of the
employer, the employee, the consumers and community.
2. Wage policy should be stated clearly in writing to ensure uniformity and stability.
3. Wage and salary plans should be consistent with the overall plans of the company.
Compensation planning should be an integral part of financial planning.
4. Wage and salary plans should be sufficiently flexible or responsive to changes in
internal and external conditions of the organization.
Wages are the payment made to the employees as compensation for the services rendered
by them to an enterprise. Wages include salaries also. But there is a slight difference between
two.
Process of wage determination:The wage determination process consists of the following sequential steps:
1) Job analysis:The persons responsible for determining wages are advised to conduct job analysis.
2) Job evaluation:The relative value of every job is determined though job evaluation. The relative job
value is then converted into money value so as to fix basic wage for the job.

57

3) Wage survey:Wage or salary surveys are conducted to find out wage or salary levels prevailing in
the region or industry for similar jobs.
4) Developing wage structure:On the basis of the above steps, an equitable wage structure is prepared. While
determining such a structure, the following points need to be considered:
a)

Payments equal to, more or less than prevailing wages.

b)

Number and width of pay grades.

c)

Jobs to be placed in each pay grade.

d)

Provision for merit increases.

5) Wage administration rules:Rules are required to determine the degree to which advance will be based on length
of service rather than merit.
6) Employee appraisal:In order to reward merit and performance, it is necessary to evaluate the performance
of employees. Some differentials in pay are maintained on the basis of employees
performance.
Essentials of a sound wage and salary structure: The main requirements of a sound
wage and salary structure are as follows:
1) Internal equity:Internal equity means similar pay for similar work. In other words, wage differentials
or variations between jobs should be in proportion of differences in the worth of jobs.

58

2) External competitiveness:Wages and salaries in the organization should be in line with wages and salaries for
comparable jobs in other organizations.
3) Built-in incentive:Wage or salary plan should contain a built-in incentive so as to motivate employees
to perform better. Such an incentive can be developed through performance-based payment.
4) Link with productivity:Some part of the toted pay should be linked with productivity. Such linkage is
necessary because workers expect a share in productivity gains.
5) Maintain real wages:At least a part of the increase in the cost of living should be neutralized so as to
protect the real wages of labor. Deamess allowance is uses in India for this purpose
6) Increments:Compensation policy can be good motivator if pay increases are linked with merit.
But annual increments should partly be linked to seniority or years of service

59

DATA ANALYSIS AND INTERPRETATION

1. Age of respondents:
S.No.

Age

No. of

Percentage

Respondents
1

30 Years

13

13

31-40 years

58

58

41-50 years

25

25

Above 51 years

Total

100

100

Interpretation:
From the above table it is found that 13% of the employees respondents there age
30 years, 58% of employees respondents there age 31 to 40 years, 25% of employees
respondents there age 41 to 50 years and only 4% of employees are respondents there age are
above 51 years.

60

2. Gender of respondents:
S.No.

Gender

No. of

Percentage

Respondents
1

Male

75

75

Female

25

25

Total

100

100

Interpretation:
From the above table it is observe that 75% of the respondents are male and 25%
respondents are female.

61

3 Annual income of respondents:

S.No.

Opinion

No. of

Percentage

Respondents
1

<50000

20

20

50000 to 100000

67

67

100000 to 150000

100

100

>150000
Total

Interpretation:
From the above table it is found that 20% of the respondents are earning an annual
income of less than 50000. And 67 % f the respondents are having annual income between
50000 to 100000 and 7% between 100000 to 150000 and 6% of the earning greater than
150000.

62

4 Designation of respondents:

S.No.

Opinion

No. of

Percentage

Respondents
1

Top level

17

17

Middle level

50

50

Low level

33

33

Total

100

100

Interpretation:
From the above table it is found that 50%of respondents middle level designation, 33% of
respondents low level and 17% of respondents top level.

63

5 Qualification of respondents:
S.No.

Opinion

No. of

Percentage

Respondents
1

<degree

17

17

>degree

62

62

Others

21

21

Total

100

100

Interpretation:
From the above table it is observe that 62%of respondents more than degree, 17% of
respondents less than degree and 21% of respondents others.

64

6. You are coordinate with this company till how many years.
S.no

Particulars

No. of Respondents

Percentage

1-3 years

20

20

3-5 years

20

20

5-10 years

30

30

10-15 years

30

30

TOTAL

100

100

Interpretation:
From the above table it is clear that out of 100 persons, 00 no of persons
responded to 1 to 3 years, 20 no of persons responded to 3 to 5 years, 30 no of persons
responded to 5 to 10 years, 30 no of persons responded to 10 to 15 years, to the coordinate
this company.

7. How much salary you are getting?

65

S.no

Particulars

No. of .Respondents

Percentage

<7000

20

20

<10,000

20

20

>15,000

30

30

>20,000

30

30

100

100

TOTAL

Interpretation:
From the above table it is clear that out of 100 persons, 20 no of persons
responded to below 7000, 20 no of persons responded to below 10,000, 30 no of persons
responded to above 15000, 30 no of persons responded to above 20000, to getting the salary
in this company.

66

8. Are you satisfied with the present wage that is paid to you?

S.no

Particulars

No. of .Respondents

Percentage

Satisfied

80

80

Partially satisfied

20

20

Dissatisfied

100

100

TOTAL

Interpretation:
From the above table it is clear that out of 100 persons, 80 no of persons
responded to satisfied, 20 no of persons responded to partially satisfied, about to satisfy to
present wage policy of this company.

67

9. What is your initial amount of salary?

S.no

Particulars

No. of .Respondents

Percentage

>5000

30

30

<5,000

10

10

>7000

50

50

>10,000

10

10

100

100

TOTAL

Interpretation:
From the above table it is clear that out of 100 persons, 30 no of persons
responded to above 5000, 10 no of persons responded to below 5000, 50 no of persons
responded to above 7000, and 10 no of persons responded to above 10000, to initial amount
of the salary in this company.

68

10. Are you satisfied with the present House Rent Allowance that is paid to you?
(Mentioned the present HRA percentage)

S.no

Particulars

No. of .Respondents

Percentage

Satisfied

70

70

Partially satisfied

30

30

Dissatisfied

100

100

TOTAL

Interpretation:
From the above table it is clear that out of 100 persons, 70 no of persons
responded to satisfied, 30 no of persons responded to partially satisfied, about to satisfy about
to HRA (House Rent Allowance) of this company.

69

11. Are you satisfied with the date of payments?

S.no

Particulars

No. of .Respondents

Percentage

Satisfied

94

94

Partially satisfied

Dissatisfied

00

00

100

100

TOTAL

Interpretation:
From the above table it is clear that out of 100 persons, 94 no of persons
responded to satisfied, 6 no of persons responded to partially satisfied, about to with the date
of payment of this company.

70

12. Do you satisfied with the present Dearness Allowance (D.A) that is paid to you?
(Mentioned the present D.A percentage)
S.no

Particulars

No. of .Respondents

Percentage

Satisfied

92

92

Partially satisfied

Dissatisfied

00

00

100

100

TOTAL

Interpretation:
From the above table it is clear that out of 100 persons, 92 no of persons
responded to satisfied, 8 no of persons responded to partially satisfied, about to with the D.A
(Dearness of Allowance) of this company.

71

13. What is your basic amount of salary?

S.no

Particulars

No. of .Respondents

Percentage

<5000

24

24

<10,000

70

70

>15000

<15,000

100

100

TOTAL

Interpretation:
From the above table it is clear that out of 100 persons, 24 no of persons
responded to below 5000, 70 no of persons responded to below 10000, 6 no of persons
responded to above 15000 to get the basic salary in this company.

72

14. Are you getting any non-monetary benefits from this organization?
S.no

Particulars

No. of .Respondents

Percentage

Yes

96

96

No

TOTAL

100

100

Interpretation:
From the above table it is clear that out of 100 persons, 96 no of persons
responded to Yes, and 4 no of persons responded to No, about to getting non-monitory
benefits from this company.

15. Does your company offer any insurance policies?

73

S.no

Particulars

No. of .Respondents

Percentage

Yes

100

100

No

TOTAL

100

100

Interpretation:
From the above table it is clear that out of 100 persons, 100 no of persons
responded to Yes, and no persons responded to No, about to company offered insurance
policies of this company.

16. Do you agree that experience play a vital role in fixing wage and salary?
S.no

Particulars

No. of .Respondents
74

Percentage

Strongly Agree

90

90

Agree

10

10

Strongly Disagree

Disagree

100

100

TOTAL

Interpretation:
From the above table it is clear that out of 100 persons, 95 no of persons
responded to strongly agree, 10 no of persons responded to agree, and no persons are
strongly disagree and disagree about to experience play a vital role in fixing in wage and
salary of this company.

17. Are you satisfied with the present bonus that is paid to you?

S.no

Particulars

No. of .Respondents

75

Percentage

Satisfied

96

96

Partially satisfied

Dissatisfied

100

100

TOTAL

Interpretation:
From the above table it is clear that out of 100 persons, 96 no of persons
responded to satisfied, 4 no of persons responded to partially satisfied, about to present bonus
paid to this company.

18. Do you satisfied with the yearly increments of your salary?

S.no

Particulars

No. of .Respondents

Percentage

Satisfied

94

94

Partially satisfied

76

3
4

Dissatisfied
TOTAL

00

00

100

100

Interpretation:
From the above table it is clear that out of 100 persons, 97 no of persons
responded to satisfied, 6 no of persons responded to partially satisfied, about to added yearly
increments of salaries of this company.

19. How much present of P.F (Provident Fund) deducted from your salary?

S.no

Particulars

No. of .Respondents

Percentage

10%

60

60

12%

20

20

77

9%

00

00

11%

20

20

TOTAL

100

100

Interpretation:
From the above table it is clear that out of 100 persons, 60 no of persons
responded to 10%, 20 no of persons responded to 12%, and 20 no of persons are 11% about
to deducted the P.F from their salaries of this company.

20. Are you getting any incentives or not?

S.no

Particulars

No. of .Respondents

Percentage

Yes

80

80

No

20

20

TOTAL

100

100

78

Interpretation:
From the above table it is clear that out of 100 persons, 80 no of persons
responded to yes, and 20 no of persons responded to no, about to getting incentives of this
company.

21. On overall view how do you rate the wage and salary department?
S.no

Particulars

No. of .Respondents

Percentage

Excellent

90

90

Good

10

10

Poor

00

00

100

100

TOTAL
79

Interpretation:
From the above table it is clear that out of 100 persons, 90 no of persons
responded to say excellent, 10 no of persons responded to good, and nobody didnt says poor
about to on overall view of wage and salary department of this company.

80

FINDINGS
Wage and salary Administration is the study where we could find the
importance of employee and his service to the organization and organization
providing all the facilities to the employee in order to retain them and to reach
its goals through the employees in the organization.
From the above study it is identified that management of M.L.Company
allows employee participation in management to full extent with any
discrimination. Organization thinks that employees are their asset and their
services are their profits.
Employer - employee relationship is strong here where employers treat their
subordinates as their colleagues and there is no discrimination in the
organizational job environment in the organization.
There is a fair employee involvement in decision making in the organization
where the management welcomes the employees ideas
There is a well planned employee participation in handling the safety
measures as the employees themselves are being trained well about the safety
equipments and their usage.
Employee participation is also been seen in a well defined manner in quality
improvement programs as the management thinks that employees are the core
cards of the organization.

81

SUGGESTIONS
Organization has to set a mutual goal system which satisfies both the individual and
organizational needs. As majority of the respondents are feeling that the objective of the
Wage and Salary Administration is personal development & organization goal
achievement.
Factors should be considered like quality of work, timeliness, need for supervision and
the managerial factors and job related factors to improve the Wage and Salary
Administration.
The organization can develop the existing Wage and Salary Administration which helps
at the career planning and support to improve the job performance of the employees.

Channel of communication should be made empathetic for easy communication of

objective standards and evaluation techniques.

82

CONCLUSION
The study is done to know the satisfaction level of employees wage and salaries of
their present job. Wage and salaries is the evolution of employees performance at his
present job and also process by which the employees high level and low level are
identified to improve the performance on the present jobs. To find out this is a detailed
study has been conducted at M.L. Group of Companies limited where the wage and salary
administration system is easy to understand. Thus the wage and salary system in M.L.
Group of companies limited maintained very effectively. The outcomes also have given
efficiently.
In M.L. Group of companies limited the frequency of the system can also be
increased, where the confidentiality must be strictly maintained, and rating should be
made without any bias-recognition at par with the employees salaries can be made and
the participation of the top management can make the wage and salary system more
effective. This wage and salary structure gives a clear idea about good relation between
top management and employees. However the above study has been successfully
understanding and highlighting wage and salary administration system in the
organization.

83

QUESTIONNAIRE
Res. Sri/Madam,
This is just an academic exercise and I will be grateful if you could spare a few
minutes and answer the following Questions.
(Note: Do not mention your Name)
1. Age:
(
a. 30 years
b. 31-40 years c. 41-50years
d. above 51years
2. Gender:
(
a. Male
b. Female
3. Income
(
a. <50000 b. 50000 to 100000
c. 100000 to 1500000
d.>1500000
4. Designation
(
a. Top level
b. Middle level
c. Low level
5. Qualification
(
a. <Degree
b. >Degree
c. Others

6. Since, how many years you are coordinating with this company?

A) 1-3 years

B) 3-5 years

B) <10,000

C) >15,000

B) Partially Satisfied

C) Dissatisfied

9. Are you satisfied with the date of payments?

A) Satisfied

D) >20,000

8. Are you satisfied with the present wage that is paid to you?
A) Satisfied

C) 5-10 years D) 10-15 years

7. How much salary you are getting?

A) <7000

B) Partially Satisfied

C) Dissatisfied

10. Are you satisfied with the present (HRA) House Rent Allowance that is paid to you?
(Mentioned the present HRA percentage)
A) Satisfied

B) Partially Satisfied

C) Dissatisfied

11. Do you satisfied with the present (D.A) Dearness Allowance that is paid to you?
(Mentioned the present D.A percentage)
A) Satisfied

B) Partially Satisfied
B) <10,000

C) >15,000

B) No

14. Does your company offer any insurance polices?

A) Yes

(
D) <15,000

13. Are you getting any non-monetary benefits from this organization?
A) Yes

C) Dissatisfied

12. What is your basic amount of salary?

A) <5000

B) No

15. Do you agree that experience play a vital role in fixing wage and salary?
84

A) Strongly Agree

B) Agree

C) Strongly Disagree D) Disagree

16. Are you satisfied with the present bonus that is paid to you?
A) Satisfied

B) Partially Satisfied
B) Partially Satisfied
B) 12%

C) 9%

)
(

B) No

20. On overall view how do you rate the wage and salary department?
A) Excellent

D) 11%

19. Are you getting any incentives or not?

A) Yes

C) Dissatisfied

18. How much present of P.F (Provident Fund) deducted from your salary?(
A) 10%

C) Dissatisfied

17. Do you satisfied with the yearly increments of your salary?

A) Satisfied

B) Good

C) Poor

Thanking you
Place
Date

Signature

85

BIBLIOGRAPHY
S.no
1

Title
Human Resource

Author
K.Aswathappa

Edition
Millennium

Publisher
Himalaya

P.Subbarao

Edition
2 Edition 2004

Publishers
Himalaya

Management
Human Resource

Management
Human Resource

John

9 Edition

Publishers
Tata Mc-Graw

Management
Human Resource

M.Ivancevich
Gary Dessler

10th Edition

Hill
Person

Management
Personal Management

Arun Monappa

nd

th

nd

2 Edition 2005

Education Inc.
Tata Mc-Graw
Hill

WEBSITES REFERED:
www.mlcompany.com
www.hrsite.com

86