A Presentation on Project Report

Date of Presentation: 02-07-2011

A STUDY ON COMPENSATION MANAGEMENT IN DIVISIONAL SUB TREASURY OFFICE

Presented by: C.V.S KIRANMAYEE

MBA IV SEM Reg. No: 09BF1E0056

Under the Guidance of Mr. K. MUNI BHASKAR

Asst. Professor

Introduction:
Compensation is payment in the form of hourly wages or annual salary combined with benefits such as insurance, vacation, stock options, etc. that can positively or negatively affect an employee's work performance. An ideal compensation management system will help you significantly boost the performance of your employees and create a more engaged workforce that s willing to go the extra mile for your organization. Such a system should be well-defined and uniform and should apply to all levels of the organization as a general system.. Plus you ll enjoy clearer visibility into individual employee performance when it comes time to make critical compensation planning decisions.

Industry profile:
The compensation management plays a vital role in any government organization. These roles and responsibilities are done by the employees in those organizations particularly in the Treasury Departments. There are number of Treasury departments in our country according to the state wise as I was listed here some of the Treasury Departments in some of the states.

Company profile:
DIVISIONAL SUB-TREASURY OFFICE is the public sector and Mandal Revenue Office of Andhra Pradesh State, India. It is the largest system in the India. 2.1 HISTORY: Divisional Sub-Treasury was established by British Government. In initial stage it consists of 9 employees and when it is converted into divisions it consists of 10 employees as of 2003. 2.2 VISION: Divisional Sub-Treasury is committed to provide consistently long term planning and to continuously improve the services through a process of team work for the at most satisfaction of the Indian Citizens. Pensions and Salaries are issued through Banks.

2.3 CORPORATE PHILOSOPHY: To provide safe, clean, comfortable, punctual and committed towards services. To provide employee satisfaction. To attain a position of reputation and respect in the society. 2.4 OPERATIONS: STO operates different functions like Passing of Bills, Pay Bills, Contigency, Travelling Allowances(TA), Foot Traveling Allowances (FTA) and Medical Reembracement. (010) (011) (012) (013) (014) (015) (016) (017) (018) (019) (020) (030) Salaries Pay other allowances DA Sumptuary allowances I.R H.R.A Medical reimbursement Encashment of E.L L.T.C Wages Over time allowance

2.5 PRESENT SIZE: Number of ATO s in A.P Number of ATO s in District Number of PPOs(Pension Payment Orders) Number of Mandals Villages Number of Drawing Officers Number of Employees Number of Banks Number of Stamp Vendors 2.6 SERVICES: Challan Number Refunds Stamps Stamp Refunds

: : : : : : : : :

85 4 2218 3 53 120 1889 10 4

TREASURY WORKS: Bill Form Challan form APTC form 10 Employee Advance bill form APTC form 40 Salary bill form APTC form 47 TA bill form APTC form 52 Abstract contingent bill APTC form 57 Fully vouched contingent bill form APTC form 58 Refund of revenue APTC form 62 Deposit repayment bill form APTC form 64 Pension Bill form APTC form 75/76 Grants in aid bill form APTC form 102 Scholarships and stipends bill form APTC 103 Loan Bill form APTC form 108 Stamp discount bill form

Need for the study:

It is needed because it facilitates the various payroll systems in the organization. To grab maximum Information about the role of Compensation management. To know the employee benefits provided by this organization. To know about the relationship between the employees. Compensation system gives an idea how to allot the salary to particular employee in particular area. Compensation is essential and very difficult to give. For this we can take so many factors to consider each and every employee. To know how the compensation given to individuals based on job analysis or performance appraisal or seniority.

Scope of the study:

The Scope of study is confined to identify and analyze the Employee salaries in Divisional SubTreasury Office. Among all these maintaining is a challenging task in an organization and concentration on employee payroll and their opportunities. This project will be a major contribution to Divisional Sub-Treasury Office in pursuit of Employee Compensation System. This may enable the corporation HR Department to handle the queries more effectively.

Objectives:
To know about the compensation system in that organization. To adapt the organization culture. To know how to distribute the compensation for different levels of employees. To know the salary structure. To know the Incentive plans, Rewards etc.

Limitations:
Most of the employees are not give the answers to the questionnaires. It are very difficult to convince. To every employee the researcher explain the meaning of questions. Government employees are hesitating while I am asking questions. Some of the employees are not giving much importance to my project They are not believe what all these. They thought that we are taking all the particulars and disclose to others.

Research Methodology:
Data is collected from primary and secondary sources. Collection of the data is of primary importance in the research process. Data which is collected for the purpose of research helps in proper analysis which is helpful to conduct research effectively. The data source, which is very important in the collection of data, is primary data and secondary data. PRIMARY DATA: Primary data is connected through administering the questionnaire by direct contact and also involved in personal discussions to obtain insights of the information. SECONDARY DATA: Secondary data is collected through document provided by the External guide.

METHODOLOGY:
The present study is an empirical one and field method is used for collection of required data. The enquiry covered a sample of few employees selected in Divisional Sub-Treasury Office, the personal interview technique was employed to collect the relevant from the selected employees.
SAMPLING UNIT:

The sampling unit for the study consists of all cadres of employees in Divisional Sub-Treasury Office.
SAMPLING SIZE: S.No
1

No. of employees
120

Sample size
100

SAMPLING TECHNIQUE Sampling can be broadly classified into probability sampling and non probability sampling. But the study is conducted by non random convenient sampling techniques for the purpose of assuring the sampling size. CONVENIENCE SAMPLING The type of sampling depends upon the convenience of the researcher. RANDOM SAMPLING This type of sampling can be choosing on the basis of random. QUANTITATIVE ANALYSIS The data is collected through questionnaire regarding the purpose of approval and positive and negative aspects of existing system were analyzed quantitatively and qualitatively and inferences were summarized. STATISTICAL TOOLS USE The design tool used to analyze the data is percentage method.

Data Analysis Definition:

Analyzing the given data of the respondents.

What Is Analysis:
After the data have been collected, the researcher turns to task of analyzing them. The analysis of data requires number of closely related operations.

What Is Interpretation:
Interpretation refers to the task of drawing inferences from the collected facts after an analytical and / or experimental study.

Why is Interpretation:
Interpretation is essential for the simple reason that the usefulness and utility of research finding lie in proper interpretation.

1. Are you aware of payroll system in your organization?

S.No 1 2 3 Opinion Yes No Cant Say No.of Respondents 105 15 0 Percentage 87.5 12.5 0

Inference:
From the above data, it is observed that out of 120 respondents, 105 respondents are aware of payroll system in the organization.
Aware of payroll system Respondents
Can't Say, 0 No ,12.5

Yes, 87.5

Yes No Can't Say

2. How long you associate with this organization?

S.NO 1 2 3 4 Years 1 year 2 5 years 5 10 years 10 20 years No.of Respondents 27 30 32 31 Percentage 22 25 27 26

35 30 25 25 20 15 10 5 0 1 Year 2-5 Years 5-10 Years 10-20 Years 22

27

26

Employee associate with this organisation Respondents Employee associate with this organisation Percentage

Inference: From the above data, it is observed that out of 120 respondents, (22%) 27 respondents are associate with this organization has been 1 year, (25%) 30 respondents are associate with this organization has been 2 5 years, (27%) 32 respondents are associate with this organization has been 5 10 years and (26%) 31 respondents are associate with this organization has been 10 20 years.

3. Is the amount of salary determines the status of the employee inside the company?
S.No 1 2 3 Opinion Yes No Cant Say No.of Respondents 115 5 0 Percentage 96 4 0
Salary determines the status of the Employee Respondents
No, 5 Can't Say, 0

Inference: From the above data, it is observed that out of 120 respondents, (96%) 115 respondents says that salary determines the status of the employee inside the company.

Yes No Can't say

Yes, 115

4. Does the compensation strategy influence internal training and development programs?
S.No 1 2 3 Opinion Yes No Cant Say No.of Respondents 60 40 20 Percentage 50 33.33 16.67

Inference:
From the above data, it is observed that out of 120 respondents, (50%) 60 respondents says that compensation strategy influence internal training and development programs.
Can't say, 20

Yes, 60 No, 40

Yes No Can't say

5. What does the organization pay for? Does it pay for performance or seniority or some combination of the two?
S.No 1 2 Opinion Performance Seniority
140 120 100 80 60 40 20 0

No.of Respondents 0 120

Percentage 0 100

Inference: From the above data, it is observed that out of 120 respondents, (100%) 120 respondents says that the organization pay for based on their seniority.

Performance Seniority

Respondents

percentage

6. What is the role of performance appraisal in the organization?

S.No 1 2 3 Opinion Important Not Important Dont Know
70

No.of Respondents 30 60 30

Percentage 25 50 25

Inference: The above Chart shows that out of 120 respondents, (50%) 60 respondents says that role of performance appraisal in the organization is not important.

60 50 50

40

Role of Performance Appraisal Respondents

25 25

30

Role of Performance Appraisal Percentage

20

10

Important

Not Important

Don't Know

7. Does the compensation philosophy and plan fit with the rest of the organization?
S.No
1 2 3

Opinion
Yes No Cant Say

No.of Respondents
10 80 30

Percentage
8.33 66.67 25

Inference:
The above Chart shows that out of 120 respondents, (66.67%) 80 respondents says that the compensation philosophy and plan fit with the rest of the organization.

Compensation Philosophy & plan fit with the rest of the Org Respondent

Yes, 10

Can't say, 30

Yes No Can't say

No, 80

8. Bonus awards are usually made

S.NO 1 2 3 4 Period Monthly Quarterly Semi annually Annually
140

No.of Respondents 0 0 0 120

Percentage 0 0 0 100

Inference:
The above Chart shows that (100%) 120 respondents says that Bonus awards are usually made annually.

120 100 100

80

Bonus Awards are usually made Respondents Bonus Awards are usually made Percentage

60

40

20 0 0 0 0

Monthly

Quaterly

Semi annually

Annually

9. Are you entitled to any other benefits besides your salary?

S.NO 1 2 3 4 Benefits Medical Travel Phone Over time
90 80 70 60 50 40 30 20 9.67 10 0 0 25.83 65

No.of Respondents 78 11 0 31

Percentage 65 9.67 0 25.83

Inference: The above Chart shows that out of 120 respondents, (65%) 78 respondents says that the employees are entitled with medical allowance benefit.

Other Benefits Beside your Salary Respondents Other Benefits Beside your Salary Percentage

Medical

Travel

Phone Overtime

10. How often is the compensation policy reviewed?

S.No 1 2 3 Period Half yearly Yearly Every 2 years
120

No.of Respondents 22 98 0

Percentage 18.33 81.67 0

Inference: The above Chart shows 100 that out of 120 respondents, (81.67%) 98 80 respondents says that 60 the compensation policy 40 reviewed Yearly.
20 18.33

81.67

Compensation Policy Reviewed Respondents Compensation Policy Reviewed Percentage

Half-yearly

Yearly

Every 2 years

11. Are you happy with the compensation amount?

S.No 1 2 3 Opinion Yes No Cant Say No.of Respondents 90 10 20 Percentage 75 8.33 16.67

Inference: The above Chart shows that out of 120 respondents, (75%) 90 respondents says that the employees are happy with their compensation amount.

Are you happy with compensation Management Respondents

Can't Say, 20

Yes
No, 10

No Can't Say
Yes, 90

12. Do you get timely and regular compensation?

S.No 1 2 3 Opinion Yes No Cant Say No.of Respondents 73 37 10 Percentage 60.83 30.83 8.33 Do you get Timely & Regular Compensation Respondents
Can't Say, 10

Inference: The above Chart shows that out of 120 respondents, (60.83%) 73 respondents says that the employees are getting timely and regular compensation.

Yes
No, 37 Yes, 73

No Can't Say

13. Is there a formal workers performance?

S.No 1 2 3 Opinion Yes No Cant Say

committee

which

reviews

No.of Respondents 32 67 21

Percentage 26.67 55.83 17.50

Inference: The above Chart shows that out of 120 respondents, (55.83%) 67 respondents says that the organization is not having formal committee which reviews workers performance.

Formal committee which reviews work performance Respondents

Can't Say, 21

Yes, 32 Yes No Can't Say

No, 67

14. Do you have a workers union?

S.No 1 2 3 Opinion Yes No Dont Know
140

No.of Respondents 120 0 0

Percentage 100 0 0

Inference: The above Chart shows that (100%) 120 respondents says that the employees having workers union.

120

100

80

Do you have workers union Respondents Do you have workers union Percentage

60

40

20

Yes

No

Don't Know

Findings:
Irrespective of their qualification they got the high designated jobs based on their seniority Arrangement of bills is not in systematic way. Most of the employees are satisfied with their compensation. In this treasury majority of the employees state that salary determines the status of the employees. 50% of the employees say the role of performance appraisal is not important. Employees are updated in changes take place in the compensation. The designation and name plate are not placed on their tables. All the employees can take their salaries through ATMs and they can easily done their transactions. The sitting arrangement of employees in the organization is not in a design manner To call sub ordinates in the office there is no alarm.

Suggestions:
Systematic arrangement of bills then it makes the work easily and quickly without any delay. The designation and name plate should be placed on their tables then it is very easy to recognize and meet them to the people. Performance appraisal system importance should be known to all the employees. By this they will improve better. The sitting arrangement of employees in the organization should be in a design manner. Officer should keep an alarm to call the office subordinate by this they can easily call up without any time consuming.

Conclusion:
The Employees are satisfied with this compensation system, in Sub-Treasury Office, Kavali, SPSR Nellore District. They provide increment annually and they increase the percentage based on their salaries.90% of employees are satisfied and only 10% of the employees are dissatisfied with the compensation system. so, finally what I conclude is role of compensation system is very important without this no one can survive and cannot work properly in the organization. so government should improve the compensation system regularly.

BIBILOGRAPHY:
Compensation and Reward system, B.D Singh, 2008, Excel. Compensation Management, Pearson, 2008. Research Methodology, C.R kotari, 2nd Edition, 2004. Business Research Methodology, Donald R Cooper, 9th Edition, 2006. WEBILOGRAPHY:
www.citeHR.com www.google.com www.wikipedia.com www.scribd.com