RESEARCH PROJECT REPORT

On A study of compensation and benefits structure in TATA MOTORS

Towards partial fulfillment of Master of Business Administration (MBA)

School of Management, Babu Banarasi Das University, Lucknow

Guided by (Name of the Guide)

Submitted by (Name of the Student)

Session 2012-2013

School of Management

Babu Banarasi Das University

Sector I, Dr. Akhilesh Das Nagar, Faizabad Road, Lucknow (U.P.) India

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 ACKNOWLEDGEMENT
Perseverance, inspiration and motivation have always played a key role in the success of any venture. A successful and satisfactory completion of any project is the outcome of the invaluable aggregate contribution of different persons fully in radical direction, explicitly or implicitly. Whereas vast, varied and valuable reading efforts leads to substantial acquisition of knowledge via books and allied information sources. True expertise excludes from collateral practical works and experiences. Words have never seemed as inadequate as now, when we are endeavoring to express our heartfelt gratitude at the culmination of the project, to all those made it possible. Even the best effort is waste without proper guidance and advice. Last but not the least; we are grateful to God, our Parents, Elders and Friends for encouraging me to take up this challenging task.

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PREFACE

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EXECUTIVE SUMMARY

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CONTENT
Certificate Acknowledgement Preface Executive Summary Page Nos.

Table of content

Introduction Company profile Organization chart Aims and objectives Objectives of the study Research Methodology Problems and limitations Findings, Analysis & Interpretations SWOT/ETOP analysis Suggestions/Recommendations Conclusion Appendix

Bibliography

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INTRODUCTION AND BENEFITS

OF COMPENSATION MANAGEMENT

Compensation Management is an integral part of the management of the organization. Compensation is a systematic approach to providing monetary value to employees in exchange for work performed. Compensation may achieve several purposes assisting in recruitment, job performance, and job satisfaction. To be effective, the managers must appreciate the value of competitive pay, their human resources, and have an investment view of payroll costs. It is of prime importance for an organization to maintain pay levels that attract and retain quality employees while recognizing the need to manage payroll costs. The literal meaning of compensation is to counter-balance. In the case of human resource management, compensation is referred to as money and other Benefits received by an employee for providing services to his employer. Money and benefits received may be in different forms-base compensation in money and various benefits, which may be associated with employee's service to the employer like provident fund, gratuity, insurance scheme and any other payment which the employee receives or benefits he enjoys in lieu of such payment.

"Compensation includes direct cash payments, indirect payments in the form of employee benefits and incentives to motivate employees to strive for higher levels of productivity Compensation is a tool used by management for a variety of purposes to further the existence and growth of the company.
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Objectives of Compensation management are:

1.Attracting and Retaining Personnel: From organizations point of view, the

compensation management aims at attracting and retaining right personnel in the Organization Not only they require persons who are well qualified but they are also retained in the organization. There is no dirth of personnel at operative levels but the problems come at the managerial and technical levels Particularly for growing companies. Not only have they required persons who are well qualified but they are also retained in the organization. In the present day context, managerial turnover is a big problem particularly in high knowledgebase Organizations.

2. Motivating Personnel: Compensation management aims at motivating personnel

for higher productivity. Monetary compensation has its own limitations in motivating people for superior performance.

3. Optimizing Cost of Compensation: Compensation management aims at

optimizing cost of compensation by establishing some kind of linkage with performance and compensation.

4. Consistency in Compensation: Compensation management tries to achieve

consistency-both internal and external-in compensating employees. Internal

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consistency involves payment on the basis of criticality of jobs and employees' performance on jobs.

Components of Compensation System

Compensation systems are designed keeping in minds the strategic goals and business objectives. Compensation system is designed on the basis of certain factors after analyzing the job work and responsibilities. Components of a compensation system are as follows:

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SCOPE OF COMPENSATION MANAGEMENT

Compensation management helps to determine the relative worth of a job in an organization in a systematic, consistent and accurate manner. It also helps in estimating the basic pay for each job in accordance with the importance of the job in the organizational hierarchy .once a basic pay is determined , the rewards , incentives and benefits attached worth the pay, positions and performance are also determined . The basic wage, incentives and rewards and benefits, together form the compensation package of an employee.

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Direct Compensation
Direct compensation refers to monetary benefits offered and provided to employees in return of the services they provide to the organization.

Basic Salary
Salary is the amount received by the employee in lieu of the work done by him/her for a certain period say a day, a week, a month, etc. It is the money an employee receives from his/her employer by rendering his/her services

House Rent Allowance

Organizations either provide accommodations to its employees who are from different state or country or they provide house rent allowances to its employees. This is done to provide them social security and motivate them to work.

Conveyance
Organizations provide for cab facilities to their employees. Few organizations also provide vehicles and petrol allowances to their employees to motivate them.

Leave Travel Allowance

These allowances are provided to retain the best talent in the organization. The employees are given allowances to visit any place they wish with their families. The allowances are scaled as per the position of employee in the organization.

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Medical Reimbursement
Organizations also look after the health conditions of their employees. The employees are provided with medi-claims for them and their family members. These medi-claims include health-insurances and treatment bills reimbursements.

Bonus
Bonus is paid to the employees during festive seasons to motivate them and provide them the social security. The bonus amount usually amounts to one months salary of the employee.

Special Allowance
Special allowance such as overtime, mobile allowances, meals, commissions, travel expenses, reduced interest loans; insurance, club memberships, etc are provided to employees to provide them social security and motivate them which improve the organizational productivity.

Indirect Compensation

Benefits contributions may include: Medical Insurance Prescription Drug Insurance Dental
Insurance Group Life Insurance Long-Term Disability Insurance Accidental Death Benefits

Tax contributions may include: Disability (Medicare) Worker Compensation Insurance,

Unemployment Insurance

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Retirement contributions may include: Severance Award, Voluntary or Involuntary

Retirements Benefits such as VRS etc.

Fringe Benefits or Perks

Employee benefits and (especially in British English) benefits in kind (also called fringe benefits, perquisites, perks) are various non-wage compensations provided to employees in addition to their normal wages or salaries. Where an employee exchanges (cash) wages for some other form of benefit, this is generally referred to as a 'salary sacrifice' arrangement. In most countries, most kinds of employee benefits are taxable to at least some degree. Fringe benefits can also include but are not limited to: (employer-provided or employer-paid) housing, group insurance (health, dental, life etc.), income protection, retirement benefits, daycare, tuition reimbursement, sick leave, vacation (paid and non-paid), social security, profit sharing, funding of education, and other specialized benefits

The purpose of the benefits is to increase the economic security of employees. The term perks is often used colloquially to refer to those benefits of a more discretionary nature. Often, perks are given to employees who are doing notably well and/or have seniority. Common perks are company cars, hotel stays, free refreshments, leisure activities on work time (golf, etc.), stationery, allowances for lunch, andwhen multiple choices existfirst choice of such things as job assignments and vacation scheduling They may also be given first chance at job promotions when vacancies exist.

Employee benefits in the United States might include relocation assistance; medical, prescription, vision and dental plans; health and dependent care flexible spending accounts; retirement benefit plans (pension, 401(k), 403(b)); group-term life and long term care insurance plans; legal assistance plans; adoption assistance; child care benefits; and possibly other miscellaneous employee discounts (e.g., movies and theme park tickets, wellness programs, discounted shopping, hotels and resorts, and so on).

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NON FINANCIAL COMPENSATION

Non-financial compensation is different incentives given to employees that are not in the form of direct pay.

Alternative Work Schedules - There are many alternatives to a traditional 5 day, 8-hour work
schedule.

On-the-Job Training- Showing workers how to perform tasks by observing others. Work/Life Balance - When an employer understands the needs employees have to juggle in their
lives.

Developmental Opportunities - Training and other opportunities for employees to expand their
knowledge and improve their skills.

Casual Dress - Allowing employees to relax their dress code at work.

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COMPANY PROFILE

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COMPANY PROFILE
Chairman Ratan Tata (C) speaks as Ravi Kant (L), company's Managing Director and P.M. Telang, Executive Director of commercial vehicles, Tata Motors Limited is India's largest automobile company, with consolidated revenues of Rs.70, 938.85 crores (US $ 14 billion) in 2008-09. It is the leader in commercial vehicles in each segment, and among the top three in passenger vehicles with winning products in the compact, midsize car and utility vehicle segments. The company is the world's fourth largest truck manufacturer, and the world's second largest bus manufacturer. The company's 23,000 employees are guided by the vision to be "best in the manner in which we operate best in the products we deliver and best in our value system and ethics ." Established in 1945, Tata Motors' presence indeed cuts across the length and breadth of India. Over 4 million Tata vehicles ply on Indian roads, since the first rolled out in 1954. The company's manufacturing base in India is spread across Jamshedpur (Jharkhand), Pune (Maharashtra), Lucknow (Uttar Pradesh), Pantnagar (Uttarakhand) and Dharwad (Karnataka). Following a strategic alliance with Fiat in 2005, it has set up an industrial joint venture with Fiat Group Automobiles at Ranjangaon (Maharashtra) to produce both Fiat and Tata cars and Fiat power trains. The company is establishing a new plant at Sanand (Gujarat). The companys dealership, sales, services and spare parts network comprises over 3500 touch points; Tata Motors also distributes and markets Fiat branded cars in India.

Tata Motors, the first company from India's engineering sector to be listed in the New York Stock Exchange (September 2004), has also emerged as an international automobile company. Through subsidiaries and associate companies, Tata Motors has operations in the UK, South Korea, Thailand and Spain. Among them is Jaguar Land Rover, a business comprising the two iconic British brands that was acquired in 2008. In 2004, it acquired the Daewoo Commercial Vehicles Company, South Korea's second largest truck
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maker. The rechristened Tata Daewoo Commercial Vehicles Company has launched several new products in the Korean market, while also exporting these products to several international markets. Today two-thirds of heavy commercial vehicle exports out of South Korea are from Tata Daewoo. In 2005, Tata Motors acquired a 21% stake in Hispano Carrocera, a reputed Spanish bus and coach manufacturer, with an option to acquire the remaining stake as well. Hispano's presence is being expanded in other markets. In 2006, it formed a joint venture with the Brazil-based Marco polo, a global leader in body-building for buses and coaches to manufacture fullybuilt buses and coaches for India and select international markets. In 2006, Tata Motors entered into joint venture with Thonburi Automotive Assembly Plant Company of Thailand to manufacture and market the company's pickup vehicles in Thailand. The new plant of Tata Motors (Thailand) has begun production of the Xenon pickup truck, with the Xenon having been launched in Thailand in 2008.

Tata Motors is also expanding its international footprint, established through exports since 1961. The company's commercial and passenger vehicles are already being marketed in several countries in Europe, Africa, the Middle East, South East Asia, South Asia and South America. It has franchisee/joint venture assembly operations in Kenya, Bangladesh, Ukraine, Russia and Senegal. The foundation of the company's growth over the last 50 years is a deep understanding of economic stimuli and customer needs, and the ability to translate them into customer-desired offerings through leading edge R&D. With over 2,000 engineers and scientists, the company's Engineering Research Centre, established in 1966, has enabled pioneering technologies and products. The company today has R&D centers in Pune, Jamshedpur, Lucknow, in India, and in South Korea, Spain, and the UK. It was Tata Motors, which developed

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the first indigenously developed Light Commercial Vehicle, Indias first Sports Utility Vehicle and, in 1998, the Tata Indica, India's first fully indigenous passenger car. Within two years of launch, Tata Indica became Indias largest selling car in its segment. In 2005, Tata Motors created a new

segment by launching the Tata Ace, India's first indigenously developed mini-truck. In January 2008, Tata Motors unveiled its People's Car, the Tata Nano, which India and the world have been looking forward to. The Tata Nano has been subsequently launched, as planned, in India in March 2009. A development, which signifies a first for the global automobile industry, the Nano brings the comfort and safety of a car within the reach of thousands of families. The standard version has been priced at Rs.100,000 (excluding VAT and transportation cost). Designed with a family in mind, it has a roomy passenger compartment with generous leg space and head room. It can comfortably seat four persons. Its mono-volume design will set a new benchmark among small cars. Its safety performance exceeds regulatory requirements in India. Its tailpipe emission performance too exceeds regulatory requirements. In terms of overall pollutants, it has a lower pollution level than two-wheelers being manufactured in India today. The lean design strategy has helped minimize weight, which helps maximize performance per unit of energy consumed and delivers high fuel efficiency. The high fuel efficiency also ensures that the car has low carbon dioxide emissions, thereby providing the twin benefits of an affordable transportation solution with a low carbon footprint.

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In May 2009, Tata Motors introduced ushered in a new era in the Indian automobile industry, in keeping with its pioneering tradition, by unveiling its new range of world standard trucks. In their power, speed, carrying capacity, operating economy and trims, they will introduce new benchmarks in India and match the best in the world in performance at a lower life-cycle cost. In June 2009, the exciting new range of premium luxury vehicles from Jaguar and Land Rover were introduced for the Indian market. These include the Jaguar XF, XFR and XKR and Land Rover Discovery 3, Range Rover Sport and Range Rover.

The years to come will see the introduction of several other innovative vehicles, all rooted in emerging customer needs. Besides product development, R&D is also focusing on environment-friendly technologies in emissions and alternative fuels. Through its subsidiaries, the company is engaged in engineering and automotive solutions, construction equipment manufacturing, automotive vehicle components manufacturing and supply chain activities, machine tools and factory automation solutions, highprecision tooling and plastic and electronic components for automotive and computer applications, and automotive retailing and service operations. True to the tradition of the Tata Group, Tata Motors is committed in letter and spirit to Corporate Social Responsibility. It is a signatory to the United Nations Global Compact, and is engaged in community and social initiatives on labor and environment standards in compliance with the principles of the Global Compact. In accordance with this, it plays an active role in community development, serving rural communities adjacent to its manufacturing locations. With the

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foundation of its rich heritage, Tata Motors today is etching a refulgent future.

Present Time In present times, Tata Motors continues to be a brand to reckon with. It's no mean task to be the largest car manufacturing company in India. In 2004, Tata Motors got itself listed on the NYSE. In 2005, the company became one of the top 10 corporations in India. In March 2008, Tata Motors acquired the British Jaguar Land Rover business from Ford Motors.

Popular Tata Motors Brands Some of the popular Tata Motors products have been listed below. Safari 2.2 vtt Tata Indigo eCS Tata Indigo Manza Tata Indica eV2 Tata Indica Vista Tata Nano Tata Grande MK II Tata Motor's Nano Car Tata Aria

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Tata Venture Victa DI Turbo

Tata Motors is manufacturing a car, Nano that aims to be the world's most inexpensive production car. The Nano car is priced around Rs. 1, 00,000. That has caused other automobile companies like Bajaj Auto and Mahindra-Renault to announce plans to launch cars within the same price range.

International operations In recent years, Tata Motors has expanded globally and now has significant presence in several, major countries of the world. Tata Motors carries out production and assembly operations in the following countries. South Korea Thailand South Africa Argentina

PLANTS OF TATA MOTORS

Tata Motors' plants are located at Jamshedpur (eastern India), Pune and Sanand (west), and Lucknow and Pantnagar (north). Tata Motors and Fiat have set up a common manufacturing facility at Ranjangaon, near Pune. Tata Motors is India's largest automobile company, with consolidated revenues of Rs 92,519 crore ($20 billion) in

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2009-10. Through subsidiaries and associate companies, Tata Motors has operations in the UK, South Korea, Thailand and Spain. Among them is Jaguar Land Rover, the business comprising the two iconic British brands. It also has an industrial joint venture with Fiat in India. Tata Motors is the country's market leader in commercial vehicles and among the top three in passenger vehicles. It is also the world's fourth largest manufacturer of medium / heavy commercial vehicles, and the second largest bus manufacturer. Tata cars, buses and trucks are being marketed in several countries in Europe, Africa, the Middle East, South Asia, South East Asia and South America. The company, formerly known as Tata Engineering and Locomotive Company, began manufacturing commercial vehicles in 1954 with a 15-year collaboration agreement with Daimler Benz of Germany. It has, since, developed Tata Ace, India's first indigenous light commercial vehicle, Tata Safari, India's first sports utility vehicle, Tata Indica, India's first indigenously manufactured passenger car, and the Nano, the world's cheapest car. Tata Motors has over 1,400 engineers and scientists in six R&D centres in India, South Korea, Spain and the UK. Areas of business Tata Motors makes passenger cars, multi-utility vehicles and light, medium and heavy commercial vehicles. Passenger cars: The company launched the compact Tata Indica in 1998, the sedan Indigo in 2002 and the station wagon Indigo Marina in 2004. Tata Motors also distributes Fiats cars in India. Utility vehicles: The Tata Sumo was launched in 1994 and the Tata Safari in 1998.

Commercial vehicles: The commercial vehicle range extends from the light two-tonne truck to heavy dumpers and multi-axled vehicles in the above 40-tonne segment.

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Passenger buses: The company also manufactures and sells passenger buses, 12-seaters to 60-seaters, in the light, medium and heavy segments.

Joint ventures, subsidiaries, associates Tata Motors has joint ventures with Marcopolo, the Brazil-based maker of bus and coach bodies, and with Fiat Auto (to build a commercial vehicle at Fiat's facilities in Crdoba, Argentina). Other associates include: Tata Daewoo Commercial Vehicle Company, a 100-per cent subsidiary of Tata Motors in the business of heavy commercial vehicles. Tata Motors European Technical Centre is a UK-based, 100-per cent subsidiary engaged in design engineering and development of products.

Telco Construction Equipment Company makes construction equipment and allied services. Tata Motors has a 60 per cent holding; the rest is held by Hitachi Construction Machinery Company, Japan.

Tata Technologies provides specialised engineering and design services, product lifecycle management and productcentric information technology services.

Tata Motors (Thailand) is a joint venture between Tata Motors (70 per cent) and Thonburi Automotive Assembly Plant Co (30 per cent) to manufacture and market the companys pickup vehicles in Thailand.

Tata Cummins manufactures high horsepower engines used in the companys range of commercial vehicles. HV Transmissions and HV Axles are 100-per cent subsidiaries that make gearboxes and axles for heavy and medium commercial vehicles.

TAL Manufacturing Solutions is a 100-per cent subsidiary that provides factory automation solutions and designs and manufactures a wide range of machine tools

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Hispano Carrocera is a Spanish bus manufacturing company in which Tata Motors has a 21-per cent stake Concorde Motors is a 100 per cent subsidiary retailing Tata Motors range of passenger vehicles Tata Motors Finance is a 100 per cent subsidiary in the business of financing customers and channel partners of Tata Motors.

TATA Indica-Technical specifications Tata Indica eV2 is the most fuel efficient hatchback from Tata Motors in India. It was launched on March 10th 2011. In the name Tata Indica eV2 e stands for economical. It is an upgraded version of Tata Indica V2. As per as the official reports of ARIA (Automotive Research Association of India), the new vehicle has capacity to generate 25 Kmpl. The price tag of this car stands at low compare to similar hatchbacks.

Tata Indica eV2 Engine Recently launched Tata Indica eV2 is loaded with new CR4 Common Rail Diesel engine that has a displacement of 1396 cc delivering 70 PS at 4000 RPM. The new CR4 engine has got massive power; compare to earlier model it has 32 percent of more power, 65 percent of increasing torque and 46 percent of better fuel efficiency. It is available in both petrol and diesel versions in domestic market. New Tata Indica eV2, a 5-speed Manual Gear Transmission hatchback holds an autonomous Wishbone, Semi-trailing Arm suspension in it.

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Tata Indica

Tata Indica ev2 Interiors Tata Indica eV2 comes with extraordinary

interior features. The wide dashboard with quality AC vents provides you soothe even in the long journeys. It is a five-seater where you need not to agonize about space. Head and leg room is excellent compare to other similar models in India. The features like Single DIN music system with USB and AUX port, wooden finish for the centre console, Tachometer, New graphic decals on the front and rear door, power steering, armrests, gear Knob, body colored mirrors, elegant Dashing board, and Air condition adds much more comfort with good fuel efficiency. The seats inside the car look tiny yet it can give enough room to feel comfy. It has Shadow beige interiors which give airy and spacious feel. All the passengers will get adequate space and head rests to feel free.

Tata Indica eV2 Exteriors Tata Indica exterior features. The broad 14 inch alloy wheels looks
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sporty; it has got a new tail and rear bumper which makes the car even sportier. The aerodynamic design of the car allows air intake very freely. The smartly designed grille looks great having Tatas logo eV2 has awesome light cluster right at the centre. It looks very similar to Tata Nano from the rear. The plastic wheel arcs have been removed to give cleaner look. Tata Indica eV2 Safety Features Tata Indica eV2 is loaded with advance safety features like Seatbelts, ABS, child safety locks on rear doors, antisubmarine seats, collapsible steering column, Clutch to start feature, headlamp leveler, provision for rear fog lamps and side intrusion beam on all four doors. The electronic instrument cluster looks classy with all new tachometer with two trip meters that are equipped with light intensity controls etc make the car perfect.

Tata Indica eV2 Colors Tata Indica eV2 is available in mind blowing colors like Mint White, Apple Green, Arctic Silver and Neo Orange in India. Tata Indica eV2 Models Tata Indica eV2 is available in 4 models they are

Tata Indica eV2 L Tata Indica eV2 LE Tata Indica eV2 LS Tata Indica eV2 LX

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Tata Indica eV2 Mileage - Tata Indica eV2 is the most fuel efficient car in India, it gives 18 Kmpl in City and 25 Kmpl in Highways. According to the official press release of the Company, This mileage of 25 kmpl is hinged on three technological advancements. 1) SMART EMS (Engine Management System) CHIP that involves perfectly calibrating every minute engine component to optimize functionality - Right from valve timing to compression ratios to pressure volume ratios, it flawlessly synchronizes every engine function to deliver this mileage. 2) MAXIMUM CHARGE COMBUSTION - An innovatively designed engine block and piston assembly that ensures effective intake and circulation of charge (mixture of air and fuel), thereby almost preventing friction between parts. The result is max combustion of charge, increased efficiency and power. 3) DRAG REDUCTION - Redesigned wheel arches and subtle alterations on the exterior combined with a lighter shell and engine have collectively contributed to making the car more aerodynamic, reducing the drag coefficient.

Tata Indica eV2 Price The diesel version of Tata Indica eV2 is in the range of Rs. 3.95 lakhs and Rs. 4.77 lakhs. Whereas the petrol version is price starts at Rs. 2.95 lakhs and goes up to Rs. 3.58 lakhs in India.

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Tata Indica eV2 Competitors - Tata Indica eV2 directly competes with the models like ford figo, maruti wagonr, maruti swift, maruti santro and it also competes with the upcoming models like maruti cervo, honda brio, and toyota etios liva in indian market. Tata Indica eV2 Specifications Tata Indica eV2 comes with a powerful CR4 Common Rail Diesel engine that has a displacement of 1396 cc delivering 70 PS at 4000 RPM. It has extraordinary safety features like antisubmarine seats, collapsible steering column, Clutch to start feature, headlamp leveler, provision for rear fog lamps, Seatbelts, ABS, child safety locks on rear doors, and side intrusion beam on all four doors etc. It is capable to churn 25 Kmpl of mileage.

Tata Indica eV2 Maintenance Cost Tata Indica eV2 maintenance cost is very low; you will get 3 car services for free from Company. Tata has wide network around the country so you need not to worry about the spare parts. You will get guanine accessories of this model around the country. You may need to spend less than 7 thousand for general service like Oil change, Fuel Injector Cleaning, electrical work etc.

Tata Indica eV2 Ride and Handling While driving Tata Indica eV2 you will feel like touching the sky. The powerful engine generates excellent pulling power. Auto drive assist feature guarantees that the engine does not booth even if the foot is completely taken off the clutch pedal, allowing the driver to easily handle his foot to the accelerator when driving on undulating roads.

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Compare Tata Indica eV2 with other models Tata Indica eV2 vs Toyota Etios Liva The cost of both cars is very much similar. Toyota Etios Liva looks better than Tata Indica eV2, when it comes to mileage Tata Indica eV2 will be the best. compare tata indica ev2 and toyota etios liva on the Technical basis, features, Specifications, Price and Technical data.

Tata Indica eV2 vs Ford Figo Tata Indica eV2 is bit costlier than Ford Figo and it has very good pulling power along with the excellent fuel efficiency. Ford Figo looks great and it has won Car of the year award. Compare

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Tata Indica eV2 and Ford Figo on the Technical basis, features, Specifications, Price and Technical data.

Tata Indica eV2 vs Maruti Swift - Tata Indica eV2 churns better mileage than Maruti Swift and cheaper than it. Whereas Maruti Swift has got huge response from the customers and has won many awards and it looks amazing. Compare Tata Indica eV2 and Maruti Swift on the Technical basis, features, Specifications, Price and Technical data.

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Tata Indica eV2 vs Maruti Ritz - Tata Indica eV2 is bit expensive than Maruti Ritz but it generates better mileage. Whereas Maruti Ritz looks awesome, it provides good leg and head space with advanced safety features. Compare Tata Indica eV2 and Maruti Ritz on the Technical basis, features, Specifications, Price and Technical data.

Tata Indica eV2 vs Maruti WagonR - Tata Indica eV2 is little costlier than Maruti WagonR with good fuel efficiency. Tata Indica eV2 has better look sportier with its 14 inch Alloy wheels whereas Maruti WagonR looks dump. Compare Tata Indica eV2 and Maruti WagonR on the Technical basis, features, Specifications, Price and Technical data.

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Tata Indica eV2 vs Honda Brio - Honda Brio will be costlier than Tata Indica eV2 but looks impressive. The new Tata Indica eV2 has capacity to churn better mileage than Honda Brio. Compare Tata Indica eV2 and Honda Brio on the Technical basis, features, Specifications, Price and Technical data.

The Tata advantage Easy maintenance Broader service center Enhanced service Smooth and comfortable operation Reliable and durable performance Powerful turbo engine

Showrooms and Workshops Showrooms and Workshops are well equipped with latest technology and skilled manpower, Customer satisfaction is the prime Moto of the Company and an efficient team of highly experienced personnel do their best to understand the needs of a customer and then suggest the models best suited to his/her requirements. Special attention is given to the models that are popular choices.

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Organization has a QUALITY MANAGEMENT SYSTEM Customer satisfaction is the main Moto of the company which gives an edge in the market and makes a brand image.

Organizational structure RAPL has got an edge with other competitors is just because of strong and efficient team headed by C E O. Company has made several departments with department heads for smooth functioning of business under a certain guidelines and certain set principles for smooth flow of system .

Marketing Department: The most important department is headed by the Sales Manager and local administration is in the hand of General Manager. Whole sales team are guided and motivated by the C E O of the Company who takes in principal decision of sales and makes sales policy considering market situation and other factors which helps sales manger to take decisions. Strong sales team with well coordination with the sales executives, Car sales in the market is one step ahead than other competitors and moreover customer satisfaction is also a key-note for market capture.

Delivery Department: Delivery In charge of this department takes care of the delivery of four wheelers. A

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Delivery Executive is also appointed to perform the delivery ceremony and make all efforts to make the delivery process quite social and memorable for the customer. Delivery department has also got key role to play.

Customer Care Department: Customer care Department is also important and sensitive department where customer satisfaction is the prime Moto of the company. Company is very much sensitive towards customer satisfaction. Customer care manager does timely PSF and keeps a track of all the customers and passes on information about new advancements from time to time. Customer care manager organizes regular customer meets and encourages more and more customers participation for sharing their car buying experience, learn more about safety tips and warranty clause etc.

Accessories Department: There is a accessories incharge in Accessories Department. Accessories incharge promote the accessories sale with special focus on MGA. Work of accessories Executive is to maintain the stock of accessories purchased and keep a record of the parts that are old he potential while/after delivery in the car. To do the fitting work, there are fitters under the Accessories Incharge.

Insurance Department: Insurance department looks after the new insurance plans that provide benefits to the customers. Insurance manager maintains record about new insurance schemes as well as the old ones.
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Insurance executive, who works for the renewal of existing insurance plan, assists him. This department also, has tele-callers to inform customers about the expiry of the insurance of their four wheeler and also about the prevailing offers and schemes for insurance renewal through insurance.

Finance and Accounts Department: Accounts and finance department is the important department, headed by Accounts Managers, controls all accounting, Tax and Banking matter of the Company. In this department support staffs like Accounts assistant ,Computer operator, Cashier looks after the day to day punching , Banking transactions and other financial transaction of the Company. Accounts department is the controlling department for companys income and expenses.

Human Resource Department Human Resource Department is headed by the Human Resource Manager (H R M). H R Manager has a key role to play in the company which consists to Hire and retain competent work force to achieve the goal of the Organization in an effective and efficient manner. Human resource Managers main duty is to look after the overall satisfaction of the employees. The H R executive helps to develop the potential of employees fully and motivate them to sharpen and improve their skills for better performance.

ORGANISATIONAL CHART SRM MOTORS PVT LTD

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Vikas Nagar Ring Road, Lucknow

Designation Managing Director General Manager: Accounts Manager Sales Manager Human Resource Manager True Value Manager Insurance Manager Work Manager Accessories Manager Spare Parts Manager

Accounts Manager: Accounts assistants Computer Operators Sales Manager: Team leaders: Dealer Sales Executives (DSE) Resident Dealer Sales executives (RDSE) Human Resource Manager

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 H R assistant True Value Manager True Value evaluators Customer Care executive.

Insurance Manager: Tele Callers Computer operators Insurance assistants. Works Manager : Supervisors: Mechanics Electrician Asst. Mechanic

Accessories Manager: Accessories Asst.Staff. Spares Parts Manager: Asst. in spares parts.

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Sales Hierarchy
Director/C.E.O

HR Department

Accounts Department Chief Of Operation s

Telecall ers

DSSM

Receptionist or Showroo m Hostess

Sales manager (Car)

Sales Manager (UV)

Asst. Sales Manager

UP Country Aria

CRO

Delivery Officer

Safari Grande

Nano

Flat

Indica

Vista

Indigo

Manza

TL
Sales executiv e

TL
Sales exec utive

TL
Sales exe cuti

TL
Sales exec utiv

TL
Sales exec utive

TL
Sales executi ve

Venture

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Service Hierarchy
Director/C.E.O

HR Department

Chief of operations

Accounts ment

Depart

G.M Service

CRM

WORKS MANAGER

Receptionis t

CRO

Service Adviser

Tele Caller

Team Leader Spare parts Departme nt Job controller Technician

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KEY STAFF

Company Name: SRM Motors Pvt. Ltd. Address: 11/CP-2 Ring Road, Vikas Nagar, Lucknow 226022 Email:srm@srm-motors.com Type: Private Founded : 4 july 2010Key People: Mr. Piyush Agarwal (Managing Director) COO- Mr. Y.N Shukla Managerial Hierarchy SRM Motors Pvt.Ltd Managing Director - Mr. Piyush Agarwal General Manager (COO) - Mr. Y.N Shukla Human Resource Manager - Ms. Anupam tiwari Sales Manager - Mr. Arindam Ghosh (UV) Mr. Arya Vishwash Dwivedi (Car) Dealership Sales Satisfaction Manager (D.S.S.M) - Ms. Swati Samrat Workshop Manager - Mr. Pankaj Malviya Accounts Manager - Mr. Mukesh Sinha

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WORKSHOP MANAGEMENT Mr. Pankaj Malviya

Service Advisor/ Supervisor

Pre-delivery Inspection

Accidental Unit

Customer Manager

Back Office

Mech anic Mechanic Jr.Mechanic Electrician> denter painter

Customer Care Manager

Duties and Responsibilities of the Staff To sale maximum vehicles.

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 To maintain all the a/c with honesty. To create healthy environment in the organization. To co-operate with each other in the organization. To maintain good relation with the customers.

To be in the office at right time. To provide all the facilities and services to the customers which are given by Company to their customer? To complete the target of selling vehicles of dealers.

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OBJECTIVE OF THE STUDY

This project attempts to understand the objectives:-

To understand in details how to establish pay rates to different level of employee. To understand the impact of compensation management on performance level. A comparative study of the compensation management strategies followed in different TATA Motors .

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LIMITATIONS
Everything has some pros and cons and so certain limitations of this study that we could observe are as follows: The area of project work is banking sector so, the data or result may be approximate as the conclusion is based on the survey method i.e. primary & secondary source (filling of questionnaire from the employees) may be hypothetical (imaginary) data.

The organizations which have been studied and surveyed are not providing us with full information which has hampered the result and conclusion.

Exact data was not been provided.

SCOPE
The scope of this project is to study of the compensation management strategies in TATA Motors & to evaluate the behaviour & performance of employee on their work.

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RESEARCH METHODOLOGY
RESEARCH DESIGN
INTRODUCTION A Research Design is the framework or plan for a study which is used as a guide in collecting and analyzing the data collected. It specifies the methods and procedures for acquiring the information needed to conduct the research effectively.

RESEARCH METHODOLOGY
TYPE OF DATA COLLECTED There are two types of data used. They are primary and secondary data. Primary data is defined as data that is collected from original sources for a specific purpose. Secondary data is data collected from indirect sources.

PRIMARY SOURCES Questionnaire consists of a set of questions presented to respondents. Because of its flexibility, it is by far the most common instrument used to collect primary data.

SECONDARY SOURCES These include books, the internet, the company website etc,

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LIMITATIONS OF THE STUDY

There is Limited time available for interviewing the respondents. As a result of this it was not possible to gather full information about the respondents. If the employees answer does not falls between amongst the options given then it will turn up to be a biased answer. Some employees do not tell their actual details.

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DATA ANALYSIS AND ITS INTERPRETATION

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QUESTIONNAIRE FILLED BY EMPLOYEES

1. When was your organization established?

2. What types of compensation are available?

Analysis: There are two type of compensation are available are direct or indirect compensation. Direct includes Base Pay,Commissions,Overtime Pay, Bonuses, Travel/Meal/Housing Allowance and indirect compensation includes vacation, leaves, retirement, taxes.

3. Who handle the compensation management department in your organization? _______MANAGER__________________________________________

Analysis: The manager handle the compenstation management department in their organization.

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4. On what basis company provide compensation to their employees. a) Base Pay c) Travelling/meal/housing allowance b) Commissions d) Any other

S ales
0% 20% 0% Base Pay Comm issions Travelling/m eal/housing allowance Any other

80%

Analysis:

This graph shows that company provide compensation to their employees on the basis of base pay & Travelling/meal/housing allowance.80% of employee prefer Travelling/meal/housing allowance & only 20% of employee prefer base pay.

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5. What kind of compensation you prefer. a) Monetary c) Motivation b) Rewarding d) Holiday packages

Analysis:

From the chart above we find that, 67% of employee prefers monetary benefits & only 33% of employee are happy & satisfied with non monetary benefits like rewards. In this company neither the employee are motivated nor are they satisfied with holiday package as compensation.

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6. Are you satisfied with the compensation you receive. a) Yes b) No

Analysis:

From the chart given above we can clearly see that 80% of employees are satisfied with the compensation they receives & only 20% of employees are dissatisfied with the compensation they receives.

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7. What do you think that HDFC is providing better compensation package to the employees. a) Yes b) No

If NO than which organization do you think?

Analysis:

Yes, HDFC is providing better compensation package to the employees out of 10

employee company.

% of employees are satisfied with the compensation they get

and % of employee are dissatisfied with the compensation provided by the

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8. Is there different type of compensation for different type of services.

a) Yes

b) No

100%

0%

YES NO

Analysis:

Yes, there are different types of compensation for different type of services like direct and indirect compensation provided to the employee of the organization for increasing their motivation and retention of employees.

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9. Is cash still king in employee compensation.

a) Yes

b) No

Analysis:

From the chart given above we can clearly see that the cash is still king there because everyone is satisfied with the monetary motivation and not by non monetary motivation. Here we can see that 90% of employees are satisfied with monetary value rather than

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10. Is Compensation based more on group performance and less on individual contribution. a) Yes b) No

Analysis:

In this organization compensation is based more on individual contribution because every employee is single entity there and they are judge on the basis of self performance.

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11. Is there any procedure of receiving formal feedback by employees on Company policies, compensation, benefits, and employee attitudes. a) Yes b) No

Analysis:

Yes, there are procedure of receiving formal feedback by employees on Company policies, compensation, benefits, and employee attitudes. It helps in bringing out new ideas. It also helps in improving employee and management relationship number of ideas helps in choosing the better option from them which will be more effective and beneficial for the organisation.

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12. In your organization employees receive effective performance appraisal.

a) Yes

b) No

S ales

YES

NO

Analysis:

Yes, in our organization employee receive effective performance appraisal because it give pleasure to the employee by rewards and they also get motivated which leads to the effective performance.It enhances effectiveness of employees and boosts the confidence level of employees.

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13. Are you getting training for improving the performance. a) Yes b) No c) cant say

Analysis:

Yes, tanning help in improving the performance of employee. It helps in developing skills & motivation level of employees. It also provides practical knowledge. It is necessary for the organization to provide training to their employees for better performance and update employee time to time. It helps in increase in the performance & motivation level of employee and also enhance effectiveness of employees.

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14. Are you free to give ideas to the higher management. a) Yes b) No

Analysis:

Yes, the employees are free to give ideas and suggestions to the higher management. By this new and different ideas are bring out of the box and this help in taking better decision which may be beneficial for the organization. It also boosts the confidence level of employees and their ideas are entertained so they get motivated also.

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FINDINGS

The compensation management policy is good in TATA Motors . The employee of the organization is satisfactory to the employees. The employees are motivated because of the environment of the organization. The products of TATA Motors have good credibility in the region.

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SWOT ANALYSIS

STRENGTH.
Superior customer service vs. competitors. Great Brand Image Products have required accreditations. High degree of customer satisfaction. Good place to work Lower response time with efficient and effective service. Dedicated workforce aiming at field. making a long-term career in the

WEAKNESSES

Some gaps in range for certain sectors. Customer service staff needs training. Processes and systems, etc Management cover insufficient. Sectorial growth is constrained by low unemployment levels and

competition for staff

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Opportunities

Profit margins will be good. Could extend to overseas broadly. New specialist applications. Could seek better customer deals. Fast-track career development opportunities on an industry-wide basis. An applied research centre to create opportunities for developing techniques to provide added-value services.

Threats

Legislation could impact. Great risk involved Very high competition prevailing in the industry. Vulnerable to reactive attack by major competitors.

Lack of infrastructure in rural areas could constrain investment. High volume/low cost market is intensely competitive.

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CONCLUSION

HDFC is first life insurance Company in India. It has businesses spread out across the globe. The company faces a large amount of competition. The Compensation Committee reviews the overall compensation structure and policies of the Bank with a view to attract, retain and motivate employees, consider grant of stock options to employees, reviewing compensation levels of the bank's employees. The project was very satisfying experience for me, not only practically and academically. It also helped me in enriched my knowledge also. The Bank's compensation policy is to provide a fair and consistent basis for motivating and rewarding employees appropriately according to their job / role size, performance, contribution, skill and competence.

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REFERENCES

Personnel managementDr. C.B. Mamoria Ex.prof.and head of department. www.HDFC.com

www.google.com www.wikipedia.com

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QUESTIONNAIRE

1. When was your organization established? ______________________________________________________________

2. What types of compensation are available? 3. Who handle the compensation management department in your organization? ________________________________________________________ 4. On what basis company provide compensation to their employees? a)Base Pay b)Commissions d)Any other

c)Travel/Meal/Housing Allowance 5. What kind of compensation you prefer? a) Monetary c) Motivation

b) Rewarding d) Holiday packages

6. Are you satisfied with the compensation you receives? a) Yes b) No

7. What do you think that HDFC is providing better compensation package to the employees? a) Yes b) No

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If NO than which organization do you think.

8. .Is there different type of compensation for different type of services? a) Yes 9. Is cash still king in employee compensation? a)Yes b) No b) No

10. Is Compensation based more on group performance and less on individual contribution? a)Yes b) No

11. Is there any procedure of receiving formal feedback by employees on Company policies, compensation, benefits, employee attitudes? a) Yes b) No

12. In your organization employee receive effective performance appraisal? a) Yes b) No

13. Are you getting training for improving the performance?

a) Yes

b) No

c) cant say

14. Are you free to give ideas to the higher management? a) Yes b) No

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