RAKSHPAL BAHADUR MANAGEMENT INSTITUTE BAREILLY

A SUMMER TRAINIG REPORT (2011-12)

ON
COMPENSATION & BENEFITS SCHEME IN IWP CO. LIMITED

UNDER THE KIND GUIDANCE AND SUPERVISION OF:

Mr. C.S. Sharma
Sr. Manager (P & A)
SUBMITTED BY :
HEMAN SRIVASTAVA
MBA 3rd Sem.

CONTENTS
PREFACE
ACKNOWLEDGEMENT
DECLARATION
INTRODUCTION
COMPANY PROFILE
KNOWLEDGE ABOUT COMPANY/INTRODUCTION
QUALITY ASSUARANCE & RESEARCH AND PRODUCTS
VISION & MISSION
VALUES & CUSTOMER FOCUS
MANUFACTURING PROCESS
ORGANISATION CHART
EMPLOYEES & THEIR CATEGORISATION
COMPENSATION & BENEFITS
TYPES OF WAGES
DIFFERENT METHODS OF REMUNERATING LABOR
ALLOWANCES
FRINGE BENEFITS
STATUTORY &OTHER BENEFITS
WELFARE & OTHER FACILITIES
INCENTIVES
o INCENTIVE PLAN
o INCENTIVE SCHEME IN IWP
o ATTACHMENTS
OBJECTIVES OF THE REPORT
RESEARCH METHDOLOGY
SUMMARY OF RESEARCH DESIGN
DATA ANALYSIS & INTERPRETATION
FINDINGS
SUGGESTION & RECOMMENDATIONS
CONCLUSION
LIMITATIONS OF THE PROJECT REPORT
BIBLIOGRAPHY

 APPENDIX

PREFACE
As a part of the partial fulfillment of the MBA (HR) programme at Rakshpal
Bahadur Management Institute Summer Training was undertaken with
The Indian Woods Products Co. Limited (Katha Factory), Izatnagar
Bareilly a unit of Katha/Black Catechu and Cutch production in India (U.P.).

Bareilly Unit is one of the biggest Katha producing Factory in India. The
company was established in 1913 by M/S Gillianders Arbuthnot & Co.
Limited and the production of katha started in 1920 hence the company
has now completed their 98 years of excellence in Katha production.

The purpose of the training was to have the practical experience of working
in a Human Resource department and to have the exposure to the various
management practices in the field of human resource & how the
Compensations, Salary, Wages, Incentives, Allowances, Facilities and other
benefits are distributed in the company.

This report is an attempt to provide the details about the Compensation

and Benefits Scheme adopted by the The Indian Woods Products Co.
Limited.

ACKNOWLEDGEMENT
Nothing concrete can be achieved without an optimal combination
inspiration and perspiration. No work can be accompanied without taken the
guidance of experts. It is only critics from ingenious that help transform a
product into a quality product.

For this, I am grateful to Mr. C.S. Sharma (Sr. Personnel Manager) for his
constant encouragement and invaluable critical suggestions given during
my summer training programme. His timely advice and guidance proved his
commitment in completing my training.

A heartfelt thanks to the respondents surveyed whose ideas, critical insights

and suggestions have been invaluable in the preparation of this report.

Last but not the least, our sincere thanks to the IWP Co. Limited who were a
vital thrust to our thoughts and needs throughout the training programme.
Finally thanks to teachers at Rakshpal Bahadur Management Institute, who
put in numerous hours to make the intangible tangible..

DECLARATION
4

I hereby declare that the project report entitledCOMPENSATION & BENEFITS SCHEME IN IWP CO. LTD.

The analysis and findings in this report are based on the information
collected by me through a Structured Questionnaire having Open Ended
Questions.

Place: Izatnagar, Bareilly.

Trainee:
Date: _________________________

HEMAN

SRIVASTAVA

INTRODUCTION TO IWP CO. LIMITED

5

 BACKGROUND:
The Indian Woods Co. Limited was promoted by Mr. H. N. Gladston, Mr.
H. Bateson, Mr. E .H. Bray of London and others in 1919. The company
was limited by shares under the Companys Act 1913 with the sole
object to manufacture Katha and Cutch at Izatnagar, Bareilly (U.P.)
India. The manufacturing activities started in 1920 and the board of
directors appointed M/S Gillianders Arbuthnot & Co. Limited as the
managing agents who would look after the daily activities of the
company.
Till 1962, the company was under the Director of Industries, Kanpur
(U.P.) and it was only in 1963 that the company was granted an
Industrial License by the Ministry of Commerce and Industry. This
entitled the company to manufacture 600 million tons of Katha & 1200
million tons of Cutch per annum. With the abolition of Managing
Agency Systems by the Companies Act, M/S Gillianders Arbuthnot &
Co. Limited ceased to act as the Managing Agents of the Company.
Thereafter, the control and management of the Company vested with
the Board of Directors consisting of directors of M/S Gillianders
Arbuthnot & Co. Limited and their associate companies. In 1970 it
became an Indian Company. In 1980 the present management
acquired the controlling interest in the company.
At present, Mr. K. K. Mohta (Chairman) and Mr. K. K. Damani (Executive
Director) manage the entire range of daily operations of the company
under the strict control of Board of Directors.
In 1996, the company under took wind power project and two
generators of 400 KVA were installed at Poolavadi, Dist. Coimbatore
6

( Tamil Nadu) for generation of wind power energy which is being

supplied to Tamil Nadu State Electricity Board.

COMPANY

PROFILE:

Pioneers in manufacturing Katha, The Indian Woods Co. Limited was

established in 1919.

COMPANY
ADDRESSES:
H.O.

The Indian Woods Products Co.

Limited

E-MAIL

Bombay Mutual Building, 7th floor-9,

Brabourne Road, Kolkata- 700001
(W.B.)
Izatnagar, Nainital Road Bareilly243122 (U.P.)
284/85 Katra Peran, Tilak Bazar- Khari
Baoli, Delhi.
iwpcl@cal2.vsnl.net.in

TELEPHONE

(+91-33)2424749/4752

CHAIRMAN

Mr. Krishna Kumar Mohta

WEBSITE

www.iwpkatha.com

FACTORY
SALES OFFICE

SHIFTS OF WORKING:
In the Factory the production work is done in 3 shifts:

SHIFT-A
7:30am to 3:30pm

SHIFT-B
3:30pm to 11:30pm

SHIFT-C
11:30pm to 7:30am

The packaging and maintenance work is done from 8 am to 4:30pm daily.

8

The working of administrative class is from 9 am to 6 pm.

RAW MATERIAL:
The basic raw material for Katha production is Khair Wood which is supplied
from Maharashtra and Madhya Pradesh.
PRODUCTION:
In Factory the total per day production of Katha is 9000 Quintals.
SUPPLY:
The produced Katha is supplied at all over India. The maximum supply is
made to Goa. The supply is not limited only in India but it is exported from
India also. The maximum export is made to Indonesia.

QUALITY
ASSUARANCE
&
RESEARCH
9

 QUALITY ASSUARANCE & RESEARCH:

Achieving ultimate customer satisfaction is the prime outlook of IWP. To
materialize this, the organization has adopted stringent quality control
tests firm intermediate stages of input of raw materials till output of
finished products. To achieve this, we have qualified team of 20
engineers & chemists who monitor the operation and the quality. We
are equipped with laboratory facilities and modern equipments such as
HPTLC, GLC, Polari meters, TLC, Spectrometer, Moisture meter,
10

Hygroscopes besides Kjeldahi extractor, etc. The company also owns a

research lab having plant & equipments for Pilot Plant Scale Research
for improving quality & research.
PRODUCTS:

ANNUAL
PRODUCTION
CAPACITY

PRODUCTS

OTHER NAMES

CATECHU

BLACK CATECHU,
KATHA

600M.T.

CUTCH

VEGETABLE
TANNINC

1200M.T.

Vision and Mission

Our Vision

Our Mission

11

We are in the business of

To establish ourselves as

trading and manufacturing

one of the worlds premier

activities and moving along

companies in the field of

the lines of recent economic

manufacturing

liberalization.

katha/catechu not only in

India but in international
market.
To serve the society by
providing product and
services of consistent
quality, meeting customer
requirements, providing
adequate opportunity for
the employees to achieve
their reasonable aspirations.

VALUES & CUSTOMER FOCUS

12

VALUES:
We must also keep in mind the following values:-

INTEGRITY:We shall be honest in our dealings to earn the trust and loyalty of others
and our actions must be just and ethical. We must be truthful, honor
commitments, uphold declared values and be fair. Integrity must be an
integral part of every employee.
COURTESY & HUMILITY:We shall be courteous and modest in our dealings both business and
private. We should not arbitrarily or selfishly but always respect rights and
personal dignity of every individual we deal with. We shall praise and
encourage people freely.
We shall always listen respectfully to public opinion, solicit customers
suggestion and shall make continuously efforts to make ourselves better;
this will also help us to earn trust of society.
COMMUNICATION & OPENNESS:We shall communicate our policies, goals, objectives and expectations to
get involvement of people. The information shared shall be within the limit
of confidentiality.
We shall share related information and data to keep concerned people up to
date to enable them to make right decisions at right Time.
We hall create an environment through effective listening where people are
encouraged to express their views freely and make contributions. We shall
share feelings in constructive manner and gain clear understanding of
alternatives.
HARMONY & CO-OPERATION :Our people are the source of our strength, involvement and team work shall
be our core human values. Alone are we are weak, together we are strong,
we shall work together as a team with mutual understanding, responsibility,
trust, respect and sincerity.
We should always keep in mind that without harmony and co-operation
even a group of very capable individuals cannot accomplish anything of
13

significance. Harmony and co-operation are essential for achieving

excellence in everything we do.
FAIRNESS:We shall be fair and just in our dealings. This spirit will help us earn respect
and build our image in society.
A fair person is one who is conscientious; sincere has nothing to be
ashamed of and acts above board within public and in private.
ADJUSTMENT & ASSIMILLATION:Change is constant in markets, in ideas, in people and in technology.
Progress cannot be achieved unless we adjust to ever changing conditions
around us. As the world moves forward we must assimilate, be decisive and
adapt quickly to keep pace with changing environment. For we have to keep
in close with changing social conditions, government policies, public trends
and demands to help us improve all aspects of our management.
We must always strive for new and better ways to make continuous
improvements for advancement of the company.

CUSTOMER FOCUS:
Our prime responsibility is towards our customers and all others who are
impacted by our products and services. We shall focus on energies
constantly in understanding, anticipating and meeting customers demand.
We shall consistently provide quality products of good value to their
satisfaction and earn their respect.
To satisfy our external customers, it is imperative that everyone must work
towards meeting the requirements of internal customers.

MANUFACTURING PROCESS

14

Katha and Cutch are obtained from aqueous extract of the heart wood of
Khair tree (Acacia Catechu). Katha is the main product and cutch is the
byproduct of the industry.
Following are the different stages of manufacturing process:

1. DEBARKING & DESAPPINGKhair wood is debarked and desapped to recover heart wood only,
which contains Katha and Cutch. This is done manually with the help
of axe, etc.
2. CHIPPINGStripped Khair wood logs are directly fed into the Chipping Machines
and converted into small chips of about 1*1/4 size.
3. EXTRACTIONSmall chips are filled in Autoclaves and extracted with water at high
temperature for desired time and thin extract thus obtained is
collected in Mother Liquor tank, this liquor contains both Katha and
Cutch as extractives.
4. CONCENTRATIONThin Mother Liquor is passed through triple effect evaporators and
concentrated to make thick liquor. The cooling water used in the
Barometric condenser of this evaporator is partly used in Autoclaves
as hot water and rest of the water is sent in a Cooling Tower for cooling
and recycled back to the Barometric condenser.
5. BLENDING TANKThick Liquor is stored in tanks for 2 days for cooling before filling in
cold chambers.
15

Thus the discharge of water as effluent is totally eliminated from this

section. The Cooling tower is in operation from 02.04.2005.
6. CRYSTALLSATIONThick Mother Liquor thus obtained, is transferred to cooling chambers,
filled in Aluminum containers and crystallized for about 15 days. Katha
being of crystalline nature crystallizes under cold conditions.
7. FILTRATIONWet Katha crystals and cutch liquor are separated by filtering the
crystallized slurry through though the plate vacuum filters and kept for
24 hrs. In desired condition.
8. HYDRAULIC PRESSING
Wet Katha plate obtained from vacuum filter is further pressed in
hydraulic presses to remove more cutch for more purity in Katha.
9. CUTTINGWet Katha plates obtained from hydraulic press is cut into tablets of
2*2 size with the help of cutting machines and placed on trays, fitted
in palates.
10.KATHA DRYINGPallets of wet Katha tablets are placed in de-humidification tunnel and
drying is carried out at low temperature to check color deterioration
due to oxidation. It takes about 15 to 18 days to complete the drying
of Katha in tunnels.
(Vertical drying- 6 days, Horizontal drying-10 days, Ambient- 2 days)
11.CUTCH LIQUOR CONCENTRATIONCutch filtrates obtained from Vacuum filter and hydraulic press is
concentrated directly in the finisher, from which it comes out in semi
16

solid form. It is collected in wooden cases and dried product is

obtained on cooling at ambient temperature.
In the modified process, we have economized on the use of water in
plate making, filtration, vacuum filter and hydraulic pressing areas.
This has led to increase in the concentration of cutch obtained from
these areas.
The cutch so obtained does not need to be passed through the 2 nd
triple effect evaporator of our plant (as used to be done earlier) and
can be directly fed to the finisher.
Thus one step of the process has been eliminated. The resultant use of
raw water in 2nd triple effect evaporator has also been eliminated.
12.PACKINGDry Katha packed has in 1 kg. Cartons/20 kg. In a Wooden Case and
packed as 50 Kg. /25 kg. Per case as desired.

17

THE
ORGANISATION
CHART

18

19

EMPLOYEES & THEIR CATEGORISATION

WORK FORCE:-

TOTAL WORKERS

229

HIGHLY SKILLED
WORKERS

25

SKILLED

40

SEMI- SKILLED

60

SUPERVISORS

12

CLERKS

12

CHEMISTS

06

OTHER WORKERS

74

OFFICERS:-

TOTAL OFFICERS

50

HEAD OF DEPARTMENTS

06

MANAGERS

08

ASSISTANT/DEPUTY

10

MANAGERS
SENIOR OFFICERS

12

OFFICERS

14

MANAGEMENT:20

POST

NAMES

EXECUTIVE DIRECTOR

SHRI K.K. DAMANI

AGM- FINANCE

R.K. AGARWAL

SENIOR MANAGER (Q.C.)

N.H. AGARWAL

SENIOR MANAGER (P&A)

C.S. SHARMA

SENIOR COMMERCIAL

RAVI CHANDAK

MANAGER
MANAGER (PROJECTS &

A.K. AGARWAL

MAINTENANCE)

COMPENSATION & BENEFITS

WAGES:

21

Wages means the payment is made by an employer to his workers or

employees as remuneration of their work that they have rendered for the
employer. This remuneration may be weekly, fortnightly or monthly. Thus,
wage means any amount given by employer to his employees for their
services.
Wages are the sum of money paid under contract by an employer
to a worker for the services rendered.- Benham

TYPES OF WAGES
LIVING WAGES:
Living wages means the wages that may be sufficient to provide for the
bare necessities as well as certain amenities for the employee. It means
wages may be sufficient to provide for the bare necessities and such
amenities that are considered necessary for the well-being of the
employee and his family members in accordance with his social status.
Article 43 of the Constitution of India states that, The state shall
endeavor to secure by suitable legislation or economic organization or in
other way to all workers, agricultural, industrial work, a living wage,
conditions of work ensuring decent standard of life and full enjoyment of
leisure and social and cultural opportunities.
MINIMUM WAGES:
According to Fair Wages Committee, Minimum Wages should provide not
only for the bare necessities of a worker. It should also provide for the
maintenance of efficiency of a worker. From this point of view, minimum
wages must be sufficient to provide for all requirements of education,
health and other essential amenities.
FAIR WAGES:
22

Rate of wages in a particular industry can be regarded as fair wages only

when it is almost equal to the wages which is paid in other industries for
the works which are of the same caliber and equally and require almost
equal efficiency and training.- Prof. Marshall.
Fair wages is the amount of wages that may provide the basic needs and
amenities to the workers according to the social status.

DIFFERENT METHODS OF REMUNERATING

LABOUR
TIME RATE SYSTEM:Under this method, the workers are paid the wages on the basis of time:
per hour, per day, per week, per fort night or per month, etc. this system
does not consider the production of the employees during this time. The
amount of wages under this system is calculated as given below:
Wages = Time Spent By The Worker * Rate Of Wage
According To Time

PIECE RATE SYSTEM:Under this system of wage payment, the workers are paid the wages on
the basis of quantity and quality of work performed by them. Under this
system, the rates of wages are determined according to quality and
quantity of work and the workers are paid according to these rates. The
amount of wages paid to a worker under this system is calculated as
under:Wages = Units Of Production * Rate Per
Unit

23

 In IWP CO. Ltd. The method used in remunerating labor is basically

Time Rate System. But in Contract based working it may adopts
Piece Rate System for same purpose.

ALLOWANCES:
An Allowance is money that is given to employees and workers usually on a
regular basis, in order to help them pay for the things that they need.

ALLOWACES IN IWP CO. LIMITED

BASIC SALARY/WAGES:This is the basic amount paid to the workers/employees by the employer
for the services rendered from them.
DEARNESS ALLOWANCE (D.A.):It is the amount of money given to the workers/employees for their
survival in this inflationary world i.e. increasing prices of necessities and
amenities.
HOUSE RENT ALLOWANCE (H.R.A.):The amount of money provided to every workers/employees for their
house rent.
CONVEYENCE ALLOWANCE:The amount of money provided to every workers/employees for their
conveyance to the industrial concern.
TRANSPORT ALLOWANCE:24

The amount of money provided to every workers/employees for their

transportation to the industrial concern.
EDUCATION ALLOWANCE:The amount of money provided to every workers/employees for the
education of their children.
ENTERTAINMENT ALLOWANCE:The amount of money provided to every employee for their
entertainment like newspapers, magazines, etc.
UNIFORM ALLOWANCE:The amount of money provided to every workers for their which they wore
at industrial concern for working hours.

FRINGE BENEFITS :
The fringe benefits are the services, facilities and comforts
available within and nearby the enterprise so that the employees
working in the enterprise may work in healthy and peaceful
circumstances and take advantage of these facilities to improve the
level of their health and moral.- International Labor Organization.

FRINGE BENEFITS IN IWP CO. LIMITED

LEAVE TRAVEL ASSISTANCE (L.T.A.):The travelling assistance is also provided to the employees on leaves, this
amount is provided to them at each alternative year.
MEDICAL ASSISTANCE:25

The amount of money which is provided as medical, on any accidental or

incidental casualty. In IWP it is provided as the amount maximum up to
Rs. 15000.
EX-GRATIA:An ex-gratia payment is given to employees/workers as a favor or gift. In
IWP it is given as lump-sum amount, near about Basic + D.A. & provided
annually.

STATUTORY BENEFITS IN IWP CO. LIMITED

These benefits are provided by the employer to his employees with the
statutory obligations.

BONUS:In IWP the Bonus is provided to workers and employees as per Bonus Act,
1966. The important provisions of Bonus Act followed by IWP are as follows:
o Bonus provided between 8.33% to 20% on Profitability of the concern.
o Bonus must be paid compulsorily whether it is in profit or loss.
o This act does not apply on the employees who are getting basic pay of
3,500 per month or more.

SOME OTHER ANNUAL BENEFITS IN IWP CO.

LIMITED
o 2 Sets of uniform to workers.
o 1 set of woolen uniform to workers.
o 1 Raincoat is provided to workers ones in two years.
26

o 1 cap for workers who works in chiller areas.

WELFARE FACILITIES IN IWP CO. LIMITED

o Toilets.
o Drinking water.
o Canteen.
o Rest/Waiting Room.
o Dispensary (Equipped with Doctors).

SOME OTHER SOCIAL SECURITY

BENEFITS IN IWP CO. LIMITED
o PROVIDEND FUND:The Provident Fund is deducted on Basic pay + D.A. It is 12% for
employer and employees both.
o GRATUITY: The Gratuity is provided as per government provisions.
o EMLOYEE STATE INSUARANCE (E.S.I.):The employee state insurance is undertaken in the company from
February, 2011 and the challan is submitted by computer
programmed methodology and it is mandatory. This challan report is
sent after 6 month under Form (6) of Employee State Insurance
Corporation. The E.S.I. is exempt above Rs. 15000 Gross Salary.

E.S.I. Contribution
Employees Contribution

1.75%

Employers Contribution

4.75%
27

FACILITIES PROVIDED TO OFFICERS IN IWP CO.

LIMITED

o HOUSING (FURNISHED ACCOMODATION):The housing facilities are provided to the officers of the company.
These housing facilities are provided with furnished
accommodation.

o COMPANY CONVEYENCE:The conveyance facilities are also provided to the officers by their
expense of the company.

o FREE ELECTRICITY:Free electricity is provided with the housing facility to the officers.

o CLUB MEMBERSHIP:The club membership like Rotary club is provided to each officer on
their wish.
28

o LEAVE ASSISTANCE:The leave assistance in the company for 365 days or 1 year is as
follow:
No. OF DAYS

TYPE OF LEAVE

Casual Leave

15

Medical Leave

25

Earned Leave

INCENTIVES:
Incentives are the stimulus that motivates the workers to produce to the
best of their capacity, of best quality and minimum cost. Incentives play an
important role in affecting the efficiency of workers and hence results in an
increase in productivity.
Incentive means that which incites or has tendency to incite
action.- George R. Terry.

INCENTIVE PLAN IN IWP CO. LIMITED

In IWP, Incentives are provided on surplus production about 2% to 3%
of their Basic Wages.

29

(P.T.O)

The Incentive Plan in IWP is designed and developed by IWP itself.

INCENTIVE PLAN
TIME WAGE
INCENTIVE PLAN

WAGE

INDIVIDUAL INCENTIVES
GROUP INCENTIVES

MANUAL WORK (DIRECT PRODUCTION)

BATCH

VACUUM

MAKING

FILTER

PLATE

HYDROLIC

MAKING

PRESSURE

CUTTING

PACKAGING

AUTOMATION
(MANUFACTURING/PR
ODUCTION)

BOILER

AUTO-CLAVE

WOODEN

AMMONIA

MAINTENANCE
WET

PRODUCTION

CLERKS

CHEMISTS
30

SUPERVISOR

INCENTIVES SCHEME IN IWP CO. LIMITED

According to Uttar Pradesh Vivad Adhiniyam1947, (Section4-F) &
Rule 5(1):

In Indian Woods Product Co. Ltd. as per date 12.06.2009 following are the
details of Incentive Agreement between The Indian Woods Product Co.
Ltd and workers Trade Union:-

This agreement was undertaken at factory concern on 25.10.2008 by the

discussions and collective bargaining. For this purpose the discussions were
made between both of them in many schedules.

On such date in factory there was a production of 1890 kg.(4000) Boxes

katha with Incentive was made with the help of 205 Permanent
Workers and 24 Casual Workers (on day to day basis) working on 6
cutting machines. The Top Management had given a proposal to increase
the production from 4000 Boxes to 5000 Boxes katha. For this proposal the
workers union argued that with the present workforce and only 6 cutting
machines the production of 5000 Boxes katha is not possible. Hence after
the discussion it was decided that for increasing the production from 4000
Boxes to 5000 Boxes there would be installed 1 more cutting machine also
with the additional workforce of 24 workers.

It was also decided that in factory there not be made any changes in
incentive scheme but as per the requirements would occur the scheme
would be expanded in the same ratio.
31

CONDITIONS OF AGREEMENT:-

Both the parties were agreed upon the condition that the production
would increased from 4000 Boxes to 5000 Boxes with incentive, for
this there would be installed one (7th) additional katha cutting machine.

Also there would be provided 24 additional workers for increasing the

production.

These increased labor and 1 additional katha machine would used only
for increasing the production from 4000 Boxes to 5000 Boxes.

The parties were also agreed upon that with the installation of 7 th
machine, the additional workers will allocated in various departments
of production like batch making, katha cutting, etc as per the
requirement felt.

The parties were also agreed upon that the incentives would be
provided on the Base Production as per the past trend in the factory
i.e. on 1380 kg katha per shift and there would not be made any
changes or modification in the incentive scheme. For the increased
production of 1890 kg katha the same incentive scheme will be
enhanced in the same ratio. (As Per Attachment A.)

32

 The parties were also agreed upon that as in past the casual workers
were provided Rs.10/- per day as incentive this practice would be
discontinued and for encouraging these workers, they would be
provided more profitable and new incentive schedule. (As Per
Attachment B.)

The parties were also agreed upon that if the production would
increased to 5000 peti katha (with incentive) per month and the
production gets stabilizes then the management would make 21
casual workers as permanent and in the factory, the Boiler
Attendant(1) and other 2 required job workers were also appointed as
permanent workers. But by making these workers as permanent the
number of casual workers would not be reduced. In this way, the
number of total permanent workers in the factory would be increased
from 205 to 229.

The Probation Period of the casual to the permanent workers will be 1

year as per the rule. The worker who works effectively in that probation
period only those workers would be made permanent.

The parties were agreed upon that if the incentive scheme would be
discontinued, the workers who would make casual to permanent they
would remain in factory as other permanent workers.

Hence now there is no confusion or any misconception between the

Trade Union and Management related to Incentive Scheme and Casual
Workers. With these conditions the agreement became finalized on
25.10.2008.
This Agreement came into force on 12.06.2009.

PARTIES IN AGREEMENT
33

 MANAGEMENT:1) Mr. Krishna Kumar Damani (Executive Director)

2) Mr. C.S. Sharma (Manager P&A)
WORKERS REPRESENTATIVES:1) Mr. Jagdish Chand Sharma (Dist. President- BMS)
2) Mr. Mohd. Saleem (Vice President)
3) Mr. Mahendra Pal (Secretary)
4) Mr. Budhraj Pandey ( Jt. Secretary)
5) Mr. Mohan Ram (Treasurer)

ATTACHMENT
(1)
WORKLOAD / INCENTIVE:The parties were agreed that following would be the incentive scheme
for the production of 1380 kg weight katha cake (without side cutting):

Production In
kg/shift

Category- A
(In Rs.)

Category- B
(In Rs.)

1380
1410
1440
1470
1500
1530
1560
1590
1620
1650
1680
1710
1740
1770
1800
1830

0
125
250
375
500
625
750
875
1000
1125
1250
1375
1500
1675
1750
1875

0
100
200
300
400
500
600
700
800
900
1000
1100
1200
1300
1400
1500
34

1860
1890
1920
1950
1980
2010
2140
2170
2100
2130
2160
2190
2220
2250
2280
2310
2340
2370
2400
2430
2460
2490
2520
2550
2580
2610
2640
2670
2700
2730
2760
2790
2820
2850
2880
2910
2940
2970
3000

2000
2125
2250
2375
2500
2625
2750
2875
3000
3125
3250
3375
3500
3625
3750
3875
4000
4125
4250
4375
4500
4625
4750
4875
5000
5125
5250
5375
5500
5625
5750
5875
6000
6125
6250
6375
6500
6625
6750

1600
1700
1800
1900
2000
2100
2200
2300
2400
2500
2600
2700
2800
2900
3000
3100
3200
3300
3400
3500
3600
3700
3800
3900
4000
4100
4200
4300
4400
4500
4600
4700
4800
4900
5000
5100
5200
5300
5400

35

The amount of Side Cutting is also included in rates of incentive given in

above table.

ATTACHMENT
(2)
NEW INCENTIVES FOR CASUALS:Production In
kg/shift

Incentive in Rs.

1380
1410
1440
1470
1500
1530
1560
1590
1620
1650
1680
1710
1740
1770
1800
1830
1860
1890
1920
1950
1980
2010
2140
2170

0
30
60
90
120
150
180
210
240
270
300
330
360
390
420
450
480
510
540
570
600
630
660
690
36

2100
2130
2160
2190
2220
2250
2280
2310
2340
2370
2400
2430
2460
2490
2520
2550
2580
2610
2640
2670
2700
2730
2760
2790
2820
2850
2880
2910
2940
2970
3000

720
750
780
810
840
870
900
930
960
990
1020
1050
1080
1110
1140
1170
1200
1230
1260
1290
1320
1350
1380
1410
1440
1470
1500
1530
1560
1590
1620

This scheme of incentive payment is open till the production of 3000 kg

(weight katha cake) per shift per month.

37

OBJECTIVE OF THE REPORT

To study the Compensation and Benefits Scheme in IWP Co.

Ltd.

To study the Basis on which the Wages and Incentives are

provided to workers.

To study Welfare and Other Facilities provided to workers.

RESEARCH METHODOLOGY
MEANING OF RESEARCH
38

Research in common paralance refers to a search for knowledge. It is a

careful investigation or inquiry specially, through search for new facts in any
branch of knowledge. In other words, research comprises defining and
redefining

problems,

formulating

hypothesis

or

suggested

solutions;

collecting, organizing and evaluating data; making deductions and reaching

conclusions; and at last carefully testing the conclusions to determine
whether they fit the formulating hypothesis.

TYPES OF RESEARCH:
The basic types of research are as follows:
BASIC RESEARCH: - Basic Research is that intended to expand
the body of knowledge in a field or to provide knowledge for others.
APPLIED RESEARCH: - Applied Research is carried out for
solving of a particular problem or for guiding a specific decision and
usually its results are private.
Basic Research is generally for common purpose and Applied
Research is for specific purpose.
Here the research is basic. The sources of data collection are both
Primary and Secondary data.

OTHER TYPES OF RESEARCH:- All other type of research are

variation of one or other of the above stated approaches, based on
either the purpose of research, or the time required to accomplish
research, on the environment in which research is done, or on the basis
of some other similar factor.
39

On the basis of time: one time research or longitudinal research; in the

former case the research is confined to single time period, whereas in the
latter case the research is carried on over several time periods.
On the basis of environment : research can be field setting research or
laboratory research or simulation research.

RESEARCH DESIGN:
The research design is the plan, structure and strategy of investigation
conceived so as to obtain answer to research questions and to control
variance.
The definition of the three important terms Plan, Structure and
Strategy are:
The Plan is an outline of the research scheme on which the researcher
is to work.
The Structure of the research is a more specific outline or the
scheme.
The Strategy shows how the Research will be carried out, specifying
the methods to be used in collection and analysis of data.
Research design is the specification of methods and the procedure from
acquiring the information needed. It is the operational pattern or framework
40

of the projects that stipulate what information is to be collected from which

sources by the procedures. The importance of research design lies in
the fact that it makes a statement of what is to be done in order to
achieve the research objectives and how it is to be done. It is an
expression of what of the research exercise in terms of results and the
analytical input needed to convert data into research findings.
A design may be quite suitable in one case but could not fit in some other
research problem. One design cannot serve the purpose of all types of
research problems. Also most of the research problems are complex in
nature and cannot be solved by a specific research design. Hence a
combination of research design is used to reach a solution.
The research design when chosen correctly prevents deviation in the study.
The present study is the cross sectional descriptive type with fields study
and partly casual in nature as it seeks to find out consumer behavior with
respect to mobile and correlate them with income, age, education,
professions etc. and formulate marketing strategies based on the study.
SAMPLING & SAMPLE DESIGN:
It is not possible to examine every item in the population hence
interferences is drawn about a large numbers of items possessing a
particular attribute based on based analysis of fraction of such items. It is
41

called a Sample. For developing a sampler design following points need to

be discussed with regard to the present study
A. POPULATION: In statistical usage the terms population is applied to
any finite collection of individuals. It has displaced the orders terms
universe. It is aggregate of all elements possessing certain specified
characteristics which need to studied and defined prior to sample.
Population can be finite if units can be counted or infinite. Since the
present study is done in Bareilly, The population is finite.
Population can be defined in terms of Elements, Sampling Units, Extent
and
Time.
In this study, the specifications will be as follows:
1.

Element

Workers

2.

Sampling Units

No

3.

Extent

IWP Factory

B. ELEMENT: An Element is the unit about which information is

collected. It provides the basis for analysis. It identifiable physically. In
the present study the element is workers having a good knowledge
about the compensation and benefits scheme in IWP.

C. SAMPLING UNIT: The sampling unit is the basic unit containing the
element of the target population. The sampling may be different from
the element. It can be either geographical unit (state, district etc.) or
42

social unit (Household, family, club etc.) or a construction unit

(enclave, house, flat etc.) or it may be an individual. In the present
stuffy, a sample of distributor is selected in the three stages. First of all
a sample of cities is selected, than a sample of colonies is selected
from each selected colony after the entire distributor in it.

D. SAMPLE FRAME: A sample frame could be a telephone directory,

a list of block and localities of a city, a map or any other list consisting
of all the sampling units, each stage of sampling process requires its
own sampling frame. Since the present study undergoes two stages
sampling process, we would need two sampling frames. First a list of
localities, Second a list of distributors within the selected localities.

E. SAMPLING DESIGN: Representation of entire universe is only

possible through the sampling technique. Considerable care has been
taken in selecting the sample.

F. Convenient in terms of size and enough to represent the entire

universe.

G. SURVEY METHOD: I have chosen the Personal Survey Techniques.

I have chosen workers in factory concern to intercept survey.
43

H. QUESTIONNAIRE DEVELOPMENT: First of all I have given the

introduction of myself and the reasons why I am collecting data. Then I
have given assurance that their information will be kept confidential. I
have gone for screening and then I have prepared the body of
questionnaire. Lastly, I make respondents profiles. Questionnaires have
been Structured Questionnaire based on non comparative scales
techniques.
SAMPLING TECHNIQUE:
In case of my research my target population has been the workers in
IWP Factory, Bareilly. I have conducted my research through NonProbability Techniques and among non-probability sampling
technique I have gone for Convenience Sampling Technique. Most
importantly, as it is an academic research it lacks money and time.
Thats why for administering the research, the sample size has 35
workers. Then I have carried out my research by myself very efficiently
and accurately to come to an end with solutions of the problem
statement.
Field work is general descriptive term for the collection of raw data. In
the professional research, research firm use its own people or external
people to collect data for sample. Since it is an academic and
individual research I myself have to go and collect data from the
respondents.
Sample Size:
44

For study I surveyed 40 workers of the factory concern.

TOOLS AND TECHNIQUES:

Tools and techniques used in the IWP CO. Ltd were mainly personal
interviews of the HR Executive or Managers and the persons involved
in

the

Wages

&

Salary

Distribution.

And

getting

filled

some

questionnaire by the workers. In order to know the exact process and

the details of the sources used in compensation and benefits
distributions.

TOOLS AND TECHNIQUES USED

DATA COLLECTION
PRIMARY DATA
_____________________________________________
PERSONAL INTERVIEW

QUESTIONAIRE

SECONDARY DATA
___________________________________________
LITERATURES

CO.WEBSITES
45

SAMPLING
CONVENIENT SAMPLING

SUMMARY OF RESEARCH DESIGN

Data source

Primary Data and Secondary Data

Research approach :

Survey Method

Research instrument

Sampling Plan

Sample Unit (Workers in IWP Factory)

Sample size

Questionnaire

40 Workers

Time

July-August 2011

Sample Area

IWP Factory Concern

Contact Method

Personal contact

46

DATA ANALYSIS
&
INTERETATION

47

1.

Are you satisfied with the Working conditions of the Factory

concern?

25%

75%

YES
NO

INTERPRETATION:

25% (10) workers are satisfied with the Working conditions of the
Factory concern.

48

2. Do you think that the Trade Union can properly bargain your problem
with the higher authority?

INTERPRETATION:

70% (28) workers think that the Trade Union can properly bargain their
problem with the higher authority.

3. Are you satisfied with the Incentive Scheme of the concern?

49

INTERPRETATION:

70% (28) workers are satisfied with the Incentive Scheme of the
concern.

3.

Are satisfied with the Welfare Facilities provided to you?

50

INTERPRETATION:

40% (16) workers are satisfied with the welfare facilities provided to
them.

4.

Do you think that the Medical Benefits provided to workers are

satisfactory?

51

INTERPRETATION:

65% (26) of workers are satisfied with the Medical Benefits provided to
them.

5.

Are you satisfied with the LTA Scheme?

52

INTERPRETATION:

80% (32) Workers are satisfied with the LTA Scheme provided to
them.

6.

Are you satisfied with the Promotion Scheme?

53

INTERPRETATION:

65% (26) of the workers are satisfied with the promotion scheme.

7. Are you satisfied with your Present Personal Salary Structure?

54

INTERPRETATION:

75% (30) workers are satisfied with their Present Personal Salary
Structure.

8. Do you think that you are considered as the Asset of the

organization?

55

INTERPRETATION:

60% (24) workers say that they are considered as Asset of the
organization.

FINDINGS
After the survey we found,

Welfare Scheme is Satisfactory.

There is no Scheme related to Entertainment.
56

No Education Scheme for Workers.

Incentive Scheme should be improved.
Cold water (Drinking) may sometimes not available.
Maintenance required in Shelter/Rest room.
Conveyance facility should be improved.
Dispensary and Ambulance Facility is not available.
Maintenance required in the Canteen.

RECOMMENDATIONS & SUGGESTIONS

The company should provide Ambulance Facility in the factory for the
workers for overcoming the emergency situations.
The company should provide Maintained Shelter room in factory
concern for workers to take rest in break time.
The company should provide the Entertainment Allowance to the
workers.
The company should provide Education Allowance to workers for their
Children.
The company should maintain the Infrastructure of the factory
concern.

57

CONCLUSION
The Indian Woods Products Co. Limited is the company which has the
good choice of compensation and benefits provisions for distribution to their
workers and employees. As per my research, it shows that the company has
the flexible environment where all the employees are free to do work in an
efficient manner to fulfill the motto and is to complete the work having good
quality.
Various aspects of compensation and benefits scheme are studied. For
conducting this scheme an interview of workers in the factory was
conducted with the help of a structured Questionnaire.
Thus we can conclude that, there should be required an improvement in the
welfare facilities for workers like the infrastructure of the factory concern,
canteen, shelter room, etc. There should also be required improvement in
incentive scheme because they are provided on the productivity basis, it
should be improved from productivity to Productivity + Time basis.
Hence, the report represents that how the distribution of incentives,
compensations, allowances, benefits and facilities are done and the various
procedures and techniques used for their evaluation in IWP Co. Ltd.

58

LIMITATION OF THE PROJECT REPORT

The sample was collected using Convenience Sampling techniques. As

such result may not give an exact representation of the population.

Shortage of time is also the reason for comprehensiveness of the

report.

The views of workers in the factory are biased therefore it doesnt

reflect the true picture.

BIBLIOGRAPHY
I have used the following source for finding the data-

59

1) Human Resource Management by Archana Deshpande, Bajaj

Duggal & H. Sharma
2) Research methodology by C.R. Kothari.
3) IWP Annual Journal.
4) www.google.co.in
5) www.iwpkatha.com
6) www.hprofessor.com
7) www.managementparadise.com

APPENDIX
(1)
QUESTIONNAIRE
1. Are you satisfied with the working conditions of the Factory concern?
YES [ ]

NO [ ]

2. Do you think that the Trade Union can properly Bargain your problem with the
higher authority?
YES [ ]

NO [ ]

3. Are you satisfied with the Incentive Scheme of the concern?

60

YES [ ]

NO [ ]

4. Are satisfied with the Welfare Facilities provided to you?

YES [ ]

NO [ ]

5. What type of Welfare Facility should also be provided in the Factory (Be
Specific)?

___________________________________________________________________________________
____
6. Do you think that the Medical Benefits provided to workers are satisfactory?
YES [ ]

NO [ ]

7. Is any Pension Plans are designed to be provided to workers after their

retirement?
YES [ ]

NO [ ]

8. Are you satisfied with the LTA Scheme?

YES [ ]

NO [ ]

9. Have you been provided the proper for Winter Season?

YES [ ]

NO [ ]

10. Do you get your Salary on time?

YES [ ]

NO [ ]

11. Are you satisfied with the Promotion Scheme?

YES [ ]

NO [ ]

12. Is any Entertainment Facility provided to Workers?

YES [ ]

NO [ ]

13. Is any Education Allowance provided to Workers?

YES [ ]

NO [ ]

14. Are you satisfied with your Present Personal Salary Structure?
61

YES [ ]

NO [ ]

15. Do you think that you are considered as the Asset of the organization?
YES [ ]

NO [ ]

Suggestion (If any):

___________________________________________________________________________________

___________________________________________________________________________________

PERSONAL PROFILE:
Name

: ___________________________________________

Designation

: ___________________________________________

Department

: ___________________________________________

Token Number

: ___________________________________________

Age

: ___________________________________________

Education

:
High School [ ]

Intermediate [ ]

Under 10th [ ]

Illiterate [ ]

APPENDIX
(2)
INCENTIVE SCHEME IN IWP (XEROX)

62

63

64

65

66

67

68

69

70

THANK
YOU

71