SUMMER TRAINING REPORT

On

Wages and Salary Fixation

At

Jagmohan Motors Ltd., Rohtak

In partial fulfillment of requirement of degree of Bachelor of Business

Administration
(2008)

Submitted By:

Ameeksha

B.B.A.-5th Semester

Government College for Women, Maharshi Dayanand University, Rohtak

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 Contents

Certificate

Preface
Acknowledgement
Chapter-1:
• Introduction to the training area
• Objectives of the training

• Introduction to the report

Chapter-2:
• Company Profile

• Organizational Structure
• Personal Department

• Personnel Department at JMML and their objectives

Chapter-3:
• Training Methods and Procedure Adopted

Chapter-4:
• Learning experiences

• Value Addition

• Difficulties
• Usefulness

Chapter-5:
• Conclusion and Recommendations

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 Preface

Industry plays a vital role in building the economic structure of a society. Therefore, the
importance of capital in shaping the economy of a country can’t be ignored. In this era labor is
front-page news. So, there is great need for a clear understanding various methods of wages and
salary fixation.

The field of industry wages and salary fixation covers a large number of enactments. The
development of a country depends upon its Industrialization. Labor is controlling force of
machinery and as a living being capable of holding responsibilities extending co-operation and
achieving objectives. If labor’s need and desires are taken into account and properly utilized.

Such provisions of labor laws to the fixation f wages and salary should be made by government
to provide more and more facilities for their welfare. If all the amenities and facilities are
provided to them, they can easily achieve their aim.

I got an opportunity to conduct the survey on ’Wages and Salary Fixation’ of the work man
employed in JAGMOHAN MOTORS LTD., Rohtak. The workman of different dep’t. From
whole of the project are taken into sample. The main aim of this project is to know the view of
the workman about their welfare facilities, which are provided to them and their suggestion to
improve them.

Acknowledgement
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God has set limits to the height of the mountain and to the depth of the sea, but he has failed to
set a limit to perfection. Hence I cannot claim perfection in making of this project. However I
have made every possible effort in successfully completing it. I would appreciate all kind of
criticism that is helpful in improving my efforts.

Apart from my own efforts, there have been several people who are equally responsible for
making this report a success..

I wish to express my deep sense of gratitude to Dr. RAM KIRTI ARORA (Principal)
Government College for women, Rohtak for giving me an opportunity to get 4 weeks practical
training from JAGMOHAN MOTORS LIMITED, ROHTAK. I would like to thank Miss.
ANKITA SHARMA (HR Executive) and Mr. SAURABH GOYAL (Team leader), JMML,
Rohtak, who happened to be my mentor throughout this project and my greatest source of
inspiration. This report would have not been presented in the absence of his guidance. I would
also like to thank to Mrs. SANGEETA SHARMA, General Manager, Human Resources, JMML
and the entire HR department of the organization for their help and cooperation.

I would also like to thank Mr. JAI BHAGWAN ROHILLA (HR Manager) for lot of his precious
time in the finalization of this report. I wish thank the officers, supervisors and employees of all
the departments who have extended their cooperation and support in completing this project. I
would also like to thank Ms. NEERAJ BHATDWAJ (Marketing Manager) for their
encouragement and support in the conduct of my project work.

Finally, yet important, I would like to express my heartfelt thanks to my beloved parents for their
blessing, my uncle and aunt and my friends /classmates for their help and wishes for the
successful completion of the report.

Ameeksha Shokand

Introduction to the Training Area

I had done my four weeks training in HR department of JMML. This training is more valuable for the

requirement to the degree of “Bachelor of Business Administration”.

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HRM is with the procurement & maintenance of a competent workforce & inspiring employees

individually & in group to give their most while reading organizational goals. HRM aims at achieving

organizational goals meet the exception of employees; develop the knowledge skills & abilities of

employees, improve the quality of working life & manage human resources in an ethical & social

responsible manner.

In a department, a supervisor has to get work firm his subordinates in order to accomplices the targets that

have been set. The employee/trainee has to be motivated, controlled & rewarded for his performance of

the role assigned to him. That department is responsible for recruitment, union negotiations & way are

activities. Training department would function within the authoritative control of the HRD Managers.

Usually the new employees/trainee undergo the orientation/ induction programme, which is organized HR

department.

Objectives of HRM

1. To help the organization reach its goals: - HR department, like others departments

in an organization, exists to achieve the goals of the organization fast and if it does not meet this

purpose, HR department will wither & die.

1. To employ the skills and abilities of the workforce efficiently: - The primary

purpose of HRM is to make peoples strengths productive and to benefit customers, stockholders

and employees.

2. To provide the organization with well trained and well-matured employees :-

HRM requires that employees be motivated to exert their maximum effort, that their performance

be evaluated properly for results and that they be remunerated on the basis of their contributions

to the organization.

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 3. To increase to the fullest the employee’s job satisfaction self-actualization:- It

tries to prompt and stimulate every employee to realize his potential. To this end suitable

programmes have to be designed aimed at improving the quality of work life.

4. To develop and maintain a quality of work life : - It makes employment in the

organization a desirable, personal, social, situation. Without improvement in the quality of work

life, it is difficult to improve organizational performance.

5. To communicate HR policies to all employee :- It is the responsibility of HRM to

communicate in the fullest possible sense; tapping ideas, opinions and feelings of customers, non-

customers, regulators and other external public as well as understanding the views of internal

human resources.

6. To be ethically and socially responsive to the needs of society:- HRM must

ensure that organizations manage human resource in an esthetical and socially responsible

manners through ensuring compliance with legal and ethical standards.

Objectives of Training

a) Innovative:-

- Anticipating problems before they occur.

- Team building sessions with the department.

b) Problem solving:-

- Training checks to reduce complaints.

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 - Training supervisors in communication to reduce grievances.

c) Regular:-
- Orientation.

- Regular training of interviews.

- Refreshers courses on safety procedures.

d) The aim of training are not only providing new knowledge and job skills to the
employees, but creating in them self consciousness and a greater awareness to
recognize there responsibilities and contribute there very best to the organization serve.

e) Training is to bring about efficiency and effectiveness in an organization so that the

organization may remain competitive is highly competitive market situation and for the
achievement of organizational goals.

Other Objectives are as follows:-

• To develop capacities and capabilities to upgrade the skills and knowledge.

• To improve the level of performance in the present job assignment.

• To improve working relationships with peoples.

• To improve communication skills.

• To provide opportunity for advancement and self-improvement.

• To develop sensitivity with others feelings and attributes.

• To identify the problem of time management for work competition on time.

• To learn rules and regulation by observing daily work.

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 Introduction

Wages and salaries represent a substantial part of total cost in most of the organization. Although
to the economists these are variable cost, but to the businessman they becoming ever increasing
cost, in view of the ability of unions to win upward adjustment. In other wards, “Wages and
Salary Administration “refers to the establishment and implementation of should policies and
practices, survey of wage an salary analysis of relevant organization problem, development and
maintenance wage structure, establishing rules of administering wages, wage payments,
incentives, profit sharing compensation cost and other related items.

Objectives of Wages and Salary Administration

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The general objectives o the wages and salary administration are as under:-

(a) Control of costs.

(b) Establishment of fair and equitable remuneration.

(c) Utilization of wages and salaries an incentive to get the employee productivity.

(d) Maintenance of satisfactory public relations image.

Difference between Wages and Salary

Wages is compensation to the employees for services rendered to the organization. In case the
quantum of services rendered is difficult to measure, the payment is called salary. Normally the
wage period is shorter than the salary period.

Payment made to labour 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. Incentives are paid to salaries in addition to their salaries.

Wages and Salary Policies

Various forms of wages and salary policies have development, differing according to such factors as the
nature of the business and its location. Because wages and salaries normally constitute a substantial part
of total cost, it is often advisable to have a policy to recognize competitive wage and salary levels in the
industry as well as in the geographical area. This is what the industry – cum – region formula states.

A company may adopt a policy like this,” we shell pay wages and salaries which approximate the average
of the companies similar company in its industry in its local area; it may relate the wage and salary levels
to companies within its region. As a matter of fact, most of the companies want to followers in setting
wage and salary levels because they make general wage and salary changes department upon the actions
of others.

Principles of Wage Administration

Wages administration should be guided by the following basic consideration:-

i. Wage policies should be carefully developed keeping in mind the interest of

a) Management as representative of the owners,

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 b) The employees, and

c) The community.

ii. Wage policies should be clearly expressed in writing to ensure uniformity and stability.

iii. Wages decisions should be checked against the carefully formulated policies.

iv. Management should see to it that employees know and understand the wages policies.

v. Wages policies should be evaluated from time to time to make certain that they are
adequate for current needs.

vi. Departmental performance should be checked periodically against the standards set in
advance.

vii. Job descriptions and performance rating should be periodically checked to them up to
date.

Chart of Principles of Wage Administration:-

Wage Policies Wage Plan Administration Operation

Clearly defined Job evaluation and Simple to operate

Wage policies- compensation plan must be and administer.

consistent with separate and distinct and

management understood by all

policies and They should be sufficiently

programmes flexible to accommodate

peculiarities of local labour

conditions.

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 Organisation Employees

Consistent with the Understood by and

objectives of the employees

organization participation of

employees shall be

ensured in its

administration

Locality Community

Flexible and Acceptable to and

responsive to local in the interest of

conditions. public.

Wage Legislation

Legislation sets below which rates and obligation can’t fall, nothing prevents more liberal terms
being negotiated through collective bargaining processes, wherever they exist. The brief
philosophy of three pieces of the wage legislation as under government of India has enacted
some legislation to regulation the terms and conditions of wage. These legislation are as follows
—

1. The payment of Wages Act, 1936

2. The Minimum Wage Act, 1948

3. Bonus Act, 1965

The Payment of Wage Act, 1936

The payment of wage act 1936 was brought on the statutes book to denounce the malpractices
committed by the employers in payment of the workers. In the initial stage of industrialization,
workers not to suffer not only from inadequacy of wage, in exorbitant delays in payment but also

11
from arbitrary cuts in total wages in the form of fines. The level of wages during those days was
very low and there was no rational relationship between effort and reward.

The irregularities committed, by the employers in administration of wages were brought to the
notice of the royal commission on labour, which recommendation of wage payment by limiting
the period of payment to one month and defining the deduction and fines allowable under the
law. Consequent to this recommendation, the payment of wage Act was enacted to product the
worker from the capacity of the employers in the year 1936. Since the of wage, 1936 was
designed as a protective piece of labour legislation to rescue the workers from the wickedness of
the employers.

Main provision of the act

Section 5 (i) of the act provision the wage of every person employed in any railway factor or
industrial establishment employing less than 1000 persons shall be paid before the of 7 th day and
on 10th day to the employee of the concern employing were than 1,000 persons. This date is
counted from the last day of the wage period in respect of which the wages are payable. The
violation of this provision is punishable with a fine which may extend up to Rs. 500/-.

Authorized deductions from the wages under the Act are –

i. Fine:-

Fines can be deduction only in accordance with the provisions of the act for the omissions
which are specified in the list approved by the state Govt. prescribed authority and exhibited at the
place of the work for the purpose.

ii. Deductions for

a. Absence from Duty

b. Damage or Loss

c. Amenities and services supplied by the employer

d. Recovery of advances or adjustment of over payment of wages

e. Income-Tax

f. Housing Accommodation

g. Provident Fund
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 h. Deduction under order of a court

i. Deduction for co-operative societies; and

j. Insurance scheme

The Minimum Wage Act 1948

This peace of legislation seeks to avoid exploitation of worker by under paying, them for their
efforts. The maximum wage sets the floor for pay level for the skilled occupation. It lacks in to
account bare minimum that is needed to keep a man “Body and Soul” together. Although it is a
central legislation but is implemented by both the central and state govt. in their respective
spheres. For instance, the central sphere covers oil fields, major parts and mines.

The act provides for the computation of the cost of living allowance and cash value of
concessions like essential commodities supplied. The act also lays down penalties for violation
of the Act.

The Payment of Bonus Act, 1965

The spate of industrial relation dispute relating it the bonus issue was sought to be ended with the
passage of the bonus Act. The act define an employee who is covered by it as anyone earning Rs.
1600 basic +DA and sets out the formula for calculating the allocable surplus from which bonus
is to be paid. The act excludes certain organization i.e. universities.

By a process collective bargaining the workers, through their representative union can negotiate
for more that what the act provide and it have ratified by the govt. if necessary. Where such a
process us bit available, the payment of Bonus Act has now made it mandatory to pay bonus to
the employees following prescribed formula for calculating the surplus, if may. Currently the
situation is such that even if there is a loss a subjected to amen dent by the govt. and criticism
from all quarters. The basis of the rational behind it, the quantum and formula for calculating the
allocable surplus for bonus purpose have all it questioned.

As a protective agency, Government set up wage boards which are tripartite in nature and will
scientifically formulate a wage structure. Since their inception in 1957, wage boards have been
appointed for the following industrial employment.

(i) Cotton textile

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 (ii) Sugar

(iii) Cement

(iv) Jute

(v) Tea Plantations

(vi) Coffee plantations

(vii) Iron &Steel

(viii) Iron & Mines

(ix) Coal Mines

(x) Lime Store & Dolomite Mines

(xi) Non Journalists

(xii) Port & Leather Goods

(xiii) Road transport Industry

(xiv) Electricity Undertaking

(xv) Rubber Plantation

Bonus means a cash payment made to employees in addition to wages. It represents a share of
profit made by an industry as a result of joint contribution of capital and labour. Bonus is no
more an ex-gratia payment.

It is an industrial right of the capable employees subject to industrial dispute.

Bonus differs from wages. Wages rest on the contract of employment and have nothing to do
with profit made by the employer. Bonus come out of the company and is necessarily dependent
on the profits in a particular year.

In some industries the payment of bonus is fixed before completing the balance sheet because:-

1. The company estimates profit during the time of starting the financial year by comparing
the previous year’s balance sheet.

2. The company already gets the order in advance for the next year.

3. Due to capital reserves lying with the company.

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 4. Due to the policies of the same producing units located in the same city.

Importance of Wages

Wage is among the major factor in the economic and social life of any community. In advanced
counties, the wages of the manual workers contribute more than 40 percent of the total national
income.

In every organization there is a need of workers. Workers and their families almost depends
entirely on wages to provided themselves with food, clothing housing and all other necessities of
life, if the wages are high, then it mean high living standard of the workers. In industry wages
take a big part of employer’s cost of production.

Component of Wages

The wages are composed of many factors as:

1. Basic Wages:

The phrase basic wage was ordinarily understood to mean that part of the price of
labour, conference said the minimum or basic wage should be “need based” and ensure
the minimum Human needs of the industrial workers. This is known as the minimum
wage or the wage, which cannot be allowed to drop. It is the lowest limit on the floor,
which no worker should be paid.

2. Dearness Allowance:

In an inflationary economy particularly in India, dearness allowance is a very significant

portion of real wage. But the unfortunate part is that is generally given to Govt. Employs.
This allowance is paid to compensate the employs against the rise in price level in the
economy. It is compensatory allowance against high prices.

3. Bonus:

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 Bonus means a cash payment made to employees in addition to wages. The new English
Dictionary defines it as a boon or a gift over and above what is normally due as remuneration to
the receiver which is, therefore, something wholly to the goods produced. Bonus is part of profit
or it is also known as the profit sharing of employees in the companies given to them out of profit
earning in the year. This is declared at the end of every year.

Most the employees can save the money due to increase in price day by day, users of goods of
necessity say food, clothing and houses.

Employer can also increase the rate of bonus according to the profit earned in a particular year. If
the rates of bonus of good say 20 percent of basic pay, then employees become happier than
before and they give good production to their employer.

Factors influencing Wage

A sound wage policy is to adopt a job evaluation programme in order to establish fair
differentials in wages based upon differences in job contents. Besides the basic factors provided
by job description and job evaluations which are usually taken in to consideration for wage and
salary administration are:-

1. The organization’s ability to pay.

2. Supply and demand of labour.

3. The prevailing market rate.

4. The cost of living

5. Productivity.

6. Trade Union’s bargaining power.

7. Job requirements.

8. Managerial attitude, and

9. Psychological and sociological factor.

Methods of Job Evaluation

Job evaluation makes good relation between employees and consistent wage and salary structure
can be evolved. In deciding how much money a particular job is wroth, there is always
temptation to influenced in one’s judgment by the qualifications and caliber of the individual

16
who is present by performing the job. But he may be either over or under qualified, so the job-
evaluator should not commit the error of rating the individuals. The important factors to be
considered under job evaluation may be grouped under the following heads:-

1. Skill

2. Experience

3. Efforts and initiative

4. Responsibility to be undertaken

5. Working environment and supervision needed.

Therefore, several systems of job evaluation have been development which the taken into
account the above-mentioned factors either directly or indirectly.

There are four type of job evaluation method. These can be divided into two categories.

1. Non-Quantitative method

i. Ranking or job comparison.

ii. Grading or job classification.

2. Quantitative method

i. Point methods.

ii. Factor comparison.

1. Non-Quantitative method

a) Ranking Method

The rank order of the job is finally determined by averaging the respective
ranking of all committed members. Ranking method is suitable for organization
of relatively small size.

b) Grading method

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 This method involves the establishment of job classes or graded. The grading
method is prepared by following points:

1. Preparation of job description.

2. Grade description.

3. Selection grade and key jobs.

4. Grading the key jobs.

5. Classification of all jobs.

2. QUANTITIVE METHOD

i. Point Method:

Under this method, a quantitative evaluation of different jobs in terms of various factors is made.

The procedure for designing of ‘POINT METHOD’ is discussed below:

1. Determine the type of job to be evaluated

2. Determine the type of job to be used in this method and define them properly.

3. Determine the number of degrees to be allocated to each factor and prepared a

suitable definition of each..

4. Assign points to each degree of each factor.

5. Selection of certain number of key jobs, say 10-15 and evaluate each applying

the previous steps.

i. Factor Comparison Method:

The factor comparison method of job evaluation determines the relation rank of the job to be
evaluated to relation to monetary scale. The evaluation of job under this method consists of the
following steps:-

1) Select the factors and define them clearly.

2) Select the key jobs.

3) Allocate wages for each key job to different factors.

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 4) Develop job comparison scales and insert key jobs in them.

5) Evaluate the job in question by factor.

6) Design, adjust and operate the wage structure.

Types of Wage Method:-

1. Time Rate Wage

Under this system workers are paid according to the work done during a certain period of
time, such as at the job rate of per hours, per day, per week, per fortnight or per monthly
or any other fixed period of time.

2. Piece Rate Wage

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.

3. Balance or Debt Method

This is combination of time and piece rates. The workers are quarantined an hourly or a
day rate with an alternative piece rate.

Wage Differential

Wage differs in different employment or occupations, industries and locations and between
persons in the same employment or grade. One, therefore, comes across such terms as
occupational wage differentials, inter-industry, inter-firm, inter area or geographical differentials
and personal differential. Wage differentials arise because of the following factors:-

1. Difference in the efficiency of the labour.

2. The existence of non-competing groups due to difficulties in the way of mobility of

labour from paid to high paid employment’s

3. Differences in the agreeableness or social esteem of employment.

4. Differences in the nature of employment and occupation.

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Fringe Benefits

Fringe benefit is primarily a means in the direction of ensuring, maintaining and increasing the
income of the employees. It is a benefit which a supplement to a worker’s ordinary wages and
which is of value of them and their families in so far as it materially increases their requirements.

Cookmen views employees benefit as “Those benefits which are supplied by an employer to or
for the benefit of employee, and which are not in the form of wages, salaries and time rated
payments”. It is any wage cost not directly connected with the employee’s productive efforts
performance, service or sacrifice.

Special features of Fringe Benefits

The main features of fringe benefits are:-

1. Fringe benefits are those payments which a worker enjoys in addition to the wage or salary
he receives.

2. They all cost the employer’s money.

3. These benefits are given to the workers to stimulate their interest in the work and to make
their job more attractive and productive for them.

4. This benefit is given to all the workers, even if they are working in different posts.

5. Their cost goes up or down as the size of the work force change.

6. A fringe must constitute a positive cost to the employer and should be incurred to finance on
employees benefits. If the benefits. If the benefit increases a worker’s efficiency, it is not a
fringe, but if it is given to supplement his wage, it is fringe. Benefits increase the good
relation between employer and the employees.

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 Conclusion

It may be concluded from the discussion regarding wage and salary administration that wages
and salary can be fixed between two limits of minimum wages and living wages. Living wage
should enable the earner with more to provide for himself and his family not merely the basis
essentials of food, clothing and shelter, but a measure of frugal comforts including

1) Education for children.

2) Protection against ill-health.

3) Requirements of essential social need and

4) A measure of insurance against the more important misfortunes including old age.

The actual determination of wages and a salary is governed by productivity of workers,

prevailing rates of wages and salary level of national income capacity of the industry to pay
wage differentials and fringe benefits in corresponding place and the importance of industry in
relation to national economy.

The efficiency of an industry is directly related with the quality of relationship which is being
built up among the individuals who work together.

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Wages and salaries have far reaching efforts on labour management relations. Better the wage
policies of a factory, better will be relation between employees and employer. If the relationship
between workers and the management is better will be the production and according to the
desired goal of the employer.

Chapter.-2

• Company Profile.

• Organizational Structure.

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 • Personal Department

• Personnel Development at JMML and their

objectives.

Company Profile

The Name of the company is JAGMOHAN MOTORS LIMITED.

The Registered Office of the company is situated in the National Capital Territory of Delhi.

The objectives for which the company is established are:-

The main Objects to be Pursued by the Company on its incorporation are:-

1. To carryon the business of dealer distributors, stockiest, importers, exporters,

wholesalers and retailers of automobiles of all description, including Trucks, Buses,
Lorries, Light Commercial vehicles, Motor Cars, Motor Cycles, Tractors, Bicycles,
Earth Moving Machinery, Industrial and Agricultural Machinery and other allied items
including spare parts and accessories thereof.

2. To carryon the business of dealers, distributors, stockiest, importers, exporters,

wholesalers and retailers of motors, internal combustion engines, heaters, air
conditioning plants, electrical and electronic good and appliances, oils, greases, motor

23
 spirit, petrol and petroleum products, tyres, tubes and other rubber manufactures,
batteries, and their components, automobile engines and equipments related thereto

3. To carryon the business of dealers in petrol, purchase and sale of Petroleum and
Petroleum product and to act as dealers and distributors of Petroleum companies, to run
services stations for repairs and servicing of automobiles and to deal in, dealer in Fuel,
Oils, Cutting oils and greases.

4. To carryon the business of buying, selling, re-selling, altering, important, exporting,

importing, distributing, and dealing in all kind of Machinery, component, parts,
replacement parts, spare parts, accessories tools, implements and fitting of all kinds,
inclusive of all type of vehicles and as importer, dry or all kinds of uses, battery plates,
cells, battery components tyres, tubes and other rubber components of all kinds “Motor
Parts” and all type of items related to for Light/Medium/Heavy type of Automobiles,
fabrication equipments, cranes and other materials.

About the Company

JAGMOHAN MOTORS is an authorized dealership of Maruti Udyog Ltd.

THE OBJECTS INCIDENTAL OR ANCILLARY TO THE ATTAINMENT OF THE MAIN

OBJECTS ARE:-

1. To purchase, otherwise acquire, own, import all materials, substance, appliance,

machines containers and such other articles and apparatus and things capable of being
used in the main business and to own, lease and otherwise acquire and use facilities to
whatever and kind may be conductive to the effect working of main business of the
company.

2. To acquire, build, alter, maintain, remove or replace and to work, manage and control
any building, offices, shops, machinery and conveniences which may seen necessary to
achieve the main object of the company.

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3. To buy, repair, alter, improve, exchange, import all machinery, tools, utensils,
appliances, apparatus products, materials, substances, articles and things capable of
being used in the main business of this company.

4. To pay for preliminary and pre-incorporation expenses of the company.

5. Subject to section 58a and 292, 293, 295 and 370 of the companies Act, 1956 and the
rules made the re-under and the directions issued by Reserve Bank of India, to receive
money or deposit pr loan and borrow or money in such manner as the company shall
think fit, and in particular by the issue of debentures or debenture stock (perpetual or
otherwise) and to secure the payment of any borrowed, raised or owing on the mort age,
charge or lien upon all or any of the property or assets of the company ( both present or
future ) including its uncalled capital and also by similar mort age, charge or lien to
secure and gratitude the performance by the company or any other such person of
company, or any obligation undertaken by the company.

ORGANIZATIONAL

STRUCTURE
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26
 Personnel Department

Men, materials, machine and money are regarded as the four important factor of production. But
the main factor is the man power. Therefore, an effort is made by the personnel dep’t. to co-
ordinate human and material resources in such a manner that organizational objectives are
achieved efficiently. Personnel dep’t. is the part of management which is concerned with people
at work and their inter personnel relation.

According to Edward Flippo, “PM is the planning organizing; directing and controlling of the
procurement, separation of human resources to the end that individual, organizational and
societal objective are accomplished.”

According to the Institute of PM, London (1965), “PM is that part of mgt. concerned with people
at work and with their relationship within in enterprise. Its aim is to bring together and develop
into an effective organization the men and women who make up an enterprise and having regard
for the well being of the individual and of working groups, to enable them to make their best
contribution to its success.”

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 In JMML Ltd. the personnel dep’t. is headed by A.V.P. (P&A). The important functions
performed are:

1. Formulation of personnel policies with regard to relation of employees, job-evaluation and

merit rating etc.

2. Managing of human resources, with emphasis on the efficient utilization and conservation
of these resources.

Personnel Department (JAGMOHAN MOTORS LTD.)

What does organization consists of Human Resources. So, for the proper management of the
human resources of people at work, Personnel dep’t. is considered to be an essential. In JMML
Ltd. Personnel Dep’t. performs different task related to people working in the organization. To
understand the proper functioning of the organization, it is necessary to know the organization
structure of personnel dep’t.

Objectives of Personnel Department at JAGMOHAN MOTORS. ROHTAK.

Human resources are important factor of an organization as success to failure of any organization
depends on people who are serving in an organization. Therefore, the primary concerns of any
organization are to satisfy the needs of people and below some other objective are given:

1. General understanding acceptance of needs, right and enlighten awareness of the social

responsibility.

2. To provide fair wages, job security, opportunities for promotion and development and in

time redressed of grievances,

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3. Creating a sense of belongingness and team spirit through their closer association with

management at various levels.

4. Promoting feeling of trust and loyalty through awareness of their needs.

In developing countries like India pressure to improve performance.

Disputes Setting Machineries

Sometimes disputes may occur in a company which is individual disputes as well as collective
disputes.

Procedure for Setting Individual Disputes

When a worker or employee is facing some personnel problems, then he can show his

grievance to his immediate supervisor. If his problems are not solved, he can approach

Personnel officer. If further his problems are not solved, he may contact Sr. Personnel

Manager and finally, in the end he can move up to General Manager.

Settlement of disputes between employees and management

Whenever a dispute occurs between employees and mgt. This can be solved either the help of
union ‘Adarsh Udyogic Sangh’. All the employees gathered at a gate after working hrs. and the
problems they are facing are discussed and decision is taken regarding the problems.

Then the elected members of the union held the meeting with the mgt. And their problems are
discussed and the decision are taken in the meeting itself .Generally a union gives a 15 days time
to the mgt. to fulfill their demands.

Settlement of disputes between various groups of Employee Themselves: This Type of disputes
is settled by the help of union ‘Adarsh Udyogic sangh ‘.

29
 Welfare facilities provided in JMML LTD.

It is a well known fact that if an organization looks after the welfare of the people who are
serving in an organization, then these people contribute with their full efficiency and as a result
the organization should run profitable. Therefore, JMML also has certain welfare activities. These
are:-

1. Canteen: Tea, snacks and some other eatable are available here at subsidized rates.

2. Rest places: Attached with the canteen are restrooms where the workers can take up

their lunch and tea etc. and rest for a while.

3. Uniform: All workers are given two set of uniform every year.

4. Medical Facility: The Company has a first aid room where first aid facilities are

available for the employees.

Other Facilities:

A part from welfare facilities some other facilities are provided by the company according to
factory Act. These are:

1. Provided fund (P.F): A 12% of employees pay are deducted per month and at the time of
retirement whole amount is given to the employees and workers in the form of provident
fund.

2. Gratuity Fund: at the time of retirement, a gratuity fund is also provided.

3. Bonus: Once in a year, 20% bonus is provided.

4. Diwali Gift: On Diwali, a company provided a gift of amount equivalent of Rs.300/- was
provided by the company.

5. Sports and Games: on 26th January, the company organizes sports function here and

the participants are rewarded.

30
Chapter-3

• Training Methods and Procedure Adopted

31
 Training Methods

Training is valuable for the requirement of the degree of “BBA”, it is essential to focus on the

personal growth of the trainees. Under training, trainees must learn the practical and theoretical

aspects. Its objective is to develop capacities and capabilities of the trainee or to provide them

basic knowledge and skills. They need an intelligent performance to their specific tasks. They are

provided a specific task and are trained to performance that task efficiently. In training some

methods were adopted by the company. These methods are:-

a) On the job training: - On-The-Job Training is considered to be the most effective

method of training the operative personnel. Under this method, the worker is given

training at the workplace by his immediate supervisor. In other words, the worker learns

in the actual work environment. It is based on the principle of ’Training by Doing’.On-

the-job training is suitable for imparting skills that can be learnt in a relatively short

period of time, it has the chief advantage of strongly motivating the trainee to learn. It is

not located in an artificial station. It permits the trainee to learn on the equipment

and in the work-environment. On the-the-job training methods are relatively

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 cheaper less time consuming. There are two methods on-the-job training explained

below:-

(!) Coaching:-

Under this method the supervisors imparts job knowledge and skills to his sub-ordinate. The

emphasis in coaching or instructing the sub ordinate is on learning by doing. This method is

very effective if the supervisor has sufficient time to provide watching to his sub

ordinates.

(!!) Understudy:-

The superior gives training to a sub ordinate as his understudy or assistant. The subordinate

learns through experience and observation. It prepares the sub ordinate to assume the

responsibilities the supervisor’s job in case the superior learns the organization.The subordinate

chosen for under-study is designated as the heir-apparent and his future depends upon what

happens to his boss. The purpose of under study is to prepare some one to fill the vacancy caused

by depth, retirement, promotion or transfer of the supervisor.

Importance of on-the-job training

On-the-job training techniques are most appropriate for teaching knowledge and skills that can

be learnt in a relatively short time and where only one or a few employees are to be trained at the
33
some time for the some job. But the success of the training depends almost entirely on the

trainer. If he understands training principles and method and if he takes an interest in proper

training of new employees, chances are that it will be done properly.

On-the-job training chief advantages of strongly motivating the trainee to learn. It doesn’t

happen in an artificial situation, either physically or psychologically.

On-the-job training methods are relatively cheaper and less time consuming. If only a few

persons are to be trained at one time. It is cheaper for the employees to resort to on-the-job

training. It will take less time to learn on the job itself and, moreover, production does not

suffers. Another important factor about on-the-job training is that line supervisors take on

important post in training their subordinates.

(b) Lecture Method:-Training through special lectures is also known as class-room training.

The lecture is a traditional and direct method instruction. The instructor agonies the material and

gives it to a group of trainees in the form of a balk-to be effective , the lecture must motivate and

create interest among the trainees. Many firms also follows the practice of inviting expects for

special lectures for the staff on matters like health, safety, productivity, quality etc. there are

certain aspects of nearly all jobs that can be learnt better in the classroom than the job. The

lecturer posses a considerable knowledge of the subject at hand. He seeks to communicate his

thoughts in such a manner as to interest the class and cause the trainees to retain what he has

said. The trainees generally take notes as an aid to learning.

The lecturer method can be used for providing instructions to groups. Thus, the cost pen trainee

to low. However, it has certain limitations also. The learners may be passive. It violates the

principle of learning by doing and constitutes one-way communication. But if the learners are

34
permitted to ask questions, they will provide feedback to the instructor. Lectures can easily be

combined with these techniques.

Procedure Adopted:

In training many procedures are adopted that should prepare the trainee mentally before they are

imparted any job, knowledge or skill.

The company provided special training to the trainees. The trainer was mentor to me behind my

training. He advice me at every moment. He explained the operations step by step to me and

gave me opportunities to repeat those operations still up to as i understood if clearly or in well

manner.

Under training, my trainer introduced me to the staff members of the company and with different

department of the company. After introduction, he gave me a theoretical explanation about the

various models of cars. Then he also explains me how to deal with customers. He gave me

lecture according to my topic and then assigned work to me. After lecture, he taught me how to

maintain a record. After completion of training, I did the task in actual manner. He also explains

how to take decision to attract the customers and for the maintenance of better environment. I

understood all the activities under company according to my ability.

Work Done:-

(a) Make customers aware about the different schemes of the company which the company adopts to

attract the customers towards the company product.

35
(b) Learned how to :-

 Maintain the record of absentees.

 System of payment of salary and wages to the employees.

 System of recording the turnover.

(c) They suggested me various techniques that would be implemented in order to reduce absentees and

employee turnover

(d) At last, my trainer helped me to drag out various discrepancies from my report.

36
Chapter.-4

• Learning Experience

- Value addition

- Difficulties

- Usefulness

37
 Learning Experience

During my training period, trainee worked with the organization that totally changed my

personality and attitude. Training is most fabulous or happening chance to trainee to learn the

different things.

Learning is relatively a change in behavior resulting from interactions with the environment. The

training programme helped me to develop better relationships with other and helped to remove

hesitation. Under-training, more opportunities and chances are given to me and this proved to be

a golden chance. I learnt as how to work with managers that enhanced the confidence level and

leadership qualities to be better at work.

The main thing of training is that the student must learn the practical aspects with every event,

experience or situation. I learnt something that will completely change my behaviour. Under the

learning process, trainee also improves communication skills with the group working. Under

training, I have learnt how to manage or handle different situation of disputes. Training also

helped to develop the knowledge and skills. Training is most important for improving

interpersonal skills and organizational skills.

38
 Value Addition

1. To help develop capacities and capabilities of the trainee by upgrading their skills and

knowledge.

2. To help trainee in improving their level of performance on their present job assignment.

3. To improve working relationship with people.

4. To improve productivity and morals.

5. To provide opportunity for advancement and self improvement.

6. To develop, sensitivity to others feelings and attitudes.

7. To develop self-discipline.

39
 Usefulness of training

1. Increased productivity:- training improve the performance of trainees.

2. Easy adaptability: - It helps me to easily learn new work technique with a little bit of guidance.

The trained persons will adapt to new situation more easily because they have basic technical

knowledge.

3. Trainee Development: - Training enables me to develop confidence level and to improve

performance level.

4. New Skills: - It helps to develop a right mental attitude toward the job, colleagues and the

company.

40
 Difficulties

 The company trains take long time to provide information to me which i need.

 Behaviors of few employees are not cooperative.

 It is difficult to understand the behavior of employee or other members of the company.

 Limited time.

 Limited experience.

 Training placement officer should be allotted.

 Limited efforts.

 Communication gap.

41
Chapter.-5

• Conclusion and Recommendations

42
 CONCLUSION

From the study an analysis of information provided by the Personnel Department of

JAGMOHAN MOTERS LTD, THE DERIVED CONCLUSION CAN BE LISTED BELOW:

1. The company is abiding by the provisions of all Acts level upon.

2. Other than those the company has implemented plenty of schemes for the welfare of
employees.

3. Company takes lot of care of employees and employees are dedicated for achievements of
goals.

4. Goods wages and salary policies generate good morale in the employees.

5. There is no unrest in the organization due to good policies of management policy.

6. There is not much satisfaction in the employees about implemented increment policy.

7. Participation of workers / employees is not satisfactory.

8. The company pays adequate bonus.

43
9. Company gives the statutory knowledge to each employee. Almost workers have knowledge
about the deduction in his salary and wage shows the educational knowledge of workers and
their creativity.

10. Company takes care of each employee their social and other aspect of life.

11. Company arranges the cell of employees from various to solve any type of problems
especially in wage and salary problems.

12. Each employee of company keeps their attention on the wage policy while adopting in the
company.

Recommendations
44
I would like to advise some suggestions regarding to make a sound wages &salary system in
JAGMOHAN MOTORS, which will helpful to overall development of the organization.

1. Payment should paid accurately under the various acts of payment of wages. It should
simply understandable.

2. Welfare scheme should be adequate and on the base of equity.

3. Wage payment should be made more simple.

4. The company should try to commensurate with hike in prices market with more effective
way.

5. As there is no adequate increment policy adopted by the management of the company. It

should be restructured.

6. Direct incentive scheme should be launched, so that employees may get benefit in hand.

7. Final increment structure should be framed in addition to the increment on the basis of merit
rating and productivity.

8. Monthly or quarterly meeting must be arranged between workers and management members
so that issues should be resolved more easily and at right time.

45
9. Company should avoid the bonus unsatisfaction by making and related increment policy.

10. There should be extra classes to give more knowledge about the obligation various aspect of study.

11. Company should try to give higher level of wages.

12. Company must care of each type human being working with it while adopted any wage policy. It
should very simple to understand by each workers and employees.

Bibliography

46
 Books

• Dr C.B Gupta, “Human Resource Management” – Chand and

Sons

• C.R Kothari, “Research Methodology” New Age International

(p) Ltd.

 Persons
1) Data Collections: Files of JMML

2) Human Resources Management: Sandhya Gupta

3) Team Leader: Saurabh Goyal

4) Personnel Management: Ankita Sharma

5) Welfare Technology: Neetu Sharma

47