COMPENSATION MANAGEMENT

SUBMITTED BY RITVIK CHATURVEDI MBA (VTU) IV SEMESTER USN: 1EW09MBA33

PART A

INDUSTRY PROFILE

Introduction

Mass Communication in India

The recent past has seen India awaken to the call of media and this fact has led to major developments in the Mass Communication study-sectors across India, which in turn has led to the establishment of various media houses- be it newspaper agencies or TV channels or advertising firms, etc. Today, the media plays a very important role in every individuals life.

Initially, common people were not very bothered about what the media was doing and media was strictly restricted to the government and the business houses. But today, every common mans problem is constantly reflected through media. And there is hardly any section of the society or any issues that are not taken up by the media. In fact, media has become a platform where common men can raise their problems and demand justice to any issue that is in circulation. Media has indeed become an integral part of a common mans life.

Motive of Mass Communication Section

Media stands as an attractive career prospect to the youth of today. So, we have introduced this section so that an individual can become familiar with the various streams that make up Mass Communication and also become aware of what Mass Communication has to offer him in terms of career. What we have done here is that we have taken up each stream and listed the various colleges across India providing that particular media course, be it journalism or Public Relations or Cinematography, Advertising, etc. We have tried our best to provide accurate and updated details about the Mass Communication courses and Mass Communication institutes across India.

However, if you encounter any discrepancy in the details of the Mass Communication courses and Mass Communication institutes provided here, do write to us. We welcome any kind of feedback that will improve the quality of the site, a site that strives to provide the best information on Mass Communication courses and Mass Communication institutes in India.

PRESENT MEDIA OF INDIA

Media of India consist of several different types of communications media: television, radio,
cinema, newspapers, magazines, and Internet-based Web sites. The Indian media was initiated since the late 18th century with print media started in 1780, radio broadcasting initiated in 1927, and the screening of Auguste and Louis Lumire moving pictures in Bombay initiated during the July of 1895 is among the oldest and largest media of the world. Indian mediaprivate media in particularhas been "Free and Independent" throughout most of its history. The period of emergency (19751977), declared by our late Prime Minister Mrs. Indira Gandhi, was the brief period when India's media was faced with potential government retribution. The country consumed 99 million newspaper copies as of 2007making it the second largest market in the world for newspapers. By 2009, India had a total of 81,000,000 internet users comprising 7.0% of the country's population, and 7,570,000 people in India also had access to broadband internet as of 2010 making it the 11th largest country in the world in terms of broadband Internet users. As of 2009, India is among the 4th largest television broadcast stations in the world with nearly 1,400 stations. The organization Reporters Without Borders compiles and publishes an annual ranking of countries based upon the organization's assessment of their press freedom records. In 2010 India was ranked 122nd of 178th countries, which was a setback from the preceding year.

HISTORY OF SEVERAL DIVISIONS OF MASS COMMUNICATION

Here we will talk about, that how media n mass communication strengthened its hold very firmly in India over a period of time.

HISTORY OF PRINT MEDIA

The first major newspaper in IndiaThe Bengal Gazette was started in 1780 under the British Raj. Other newspapers such as The India Gazette, The Calcutta Gazette, The Madras Courier (1785), The Bombay Herald (1789) etc. soon followed. These newspapers carried news of the areas under the British rule. The Times of India was founded in 1838 as The Bombay Times and Journal of Commerce by Bennett, Coleman and Company, a colonial enterprise now owned by an Indian conglomerate. The Times Group publishes The Economic Times (launched in 1961), Navbharat Times (Hindi language), and the Maharashtra Times (Marathi language). During the 1950s 214 daily newspapers were published in the country. Out of these, 44 were English language dailies while the rest were published in various regional languages. This number rose to 2,856 dailies in 1990 with 209 English dailies. The total number of newspapers published in the country reached 35,595 newspapers by 1993 (3,805 dailies). The main regional newspapers of India include the Malayalam language Malayala Manorama (published from: Kerala, daily circulation: 673,000), the Hindi language Dainik Jagran (published from: Uttar Pradesh, daily circulation in 2006: 580,000), and the Anandabazar Patrika (published from: Kolkata, daily circulation in 2006: 435,000). The Times of India Group, The Indian Express Group, The Hindustan Times Group, and The Anandabazar Patrika Group are 0the main print media houses of the country. Newspaper sale in the country increased by 11.22% in 2007. By 2007, 62 of the world's best selling newspaper dailies were published in China, Japan, and India. India consumed 99 million newspaper copies as of 2007making it the second largest market in the world for newspapers.

HISTORY AUDIO-VISUAL MEDIA

Radio broadcasting was initiated in 1927 but became state responsibility only in 1930. In 1937 it was given the name All India Radio and since 1957 it has been called Akashvani. Limited duration of television programming began in 1959, and complete broadcasting followed in 1965. The Ministry of Information and Broadcasting owned and maintained the audio-visual 5

apparatusincluding the television channel Doordarshanin the country prior to the economic reforms of 1991. The Government of India played a significant role in using the audio-visual media for increasing mass education in India's rural swathes. Projected television screens provided engaging education in India's villages by the 1990s. Following the economic reforms satellite television channels from around the worldincluding BBC, CNN, CNBC, PTV, and other foreign television channels gained a foothold in the country. 47 million household with television sets emerged in 1993, which was also the year when Rupert Murdoch entered the Indian market. Satellite and cable television soon gained a foothold. Doordarshan, in turn, initiated reforms and modernization. With 1,400 television stations as of 2009, the country ranks 4th in the list of countries by number of television broadcast stations.

HISTORY OF INFORMATION TECHNOLOGY

The Indian Government acquired the EVS EM computers from the Soviet Union, which were used in large companies and research laboratories. Tata Consultancy Services established in 1968 by the Tata Group were the country's largest software producers during the 1960s. The 'microchip revolution' of the 1980s had convinced both Indira Gandhi and her successor Mr. Rajiv Gandhi that electronics and telecommunications were vital to India's growth and development. MTNL underwent technological improvements. Between 1986-1987, the Indian government embarked upon the creation of three wide-area computer networking schemes: INDONET (intended to serve the IBM mainframes in India), NICNET (network for the National Informatics Centre), and the academic research oriented Education and Research Network (ERNET). The Indian economy underwent economic reforms in 1991, leading to a new era of globalization and international economic integration. Economic growth of over 6% annually was seen between 1993-2002. The economic reforms were driven in part by significant the internet usage in India. The new administration under Atal Bihari Vajpayee placed the development of Information Technology among its top five priorities formed the Indian National Task Force on Information Technology and Software Development. Internet gained a foothold in India by 1996. India had a total of 81,000,000 Internet userscomprising 7.0% of the country's population by 2009. By 2009, 7,570,000 million people in India also had access to broadband Internet making it the 12th largest country in the world in terms of broadband Internet users. India had a total of 37,160,000 telephone lines in use by 2009. In the fixed line arena, BSNL and MTNL are the incumbents in their respective areas of operation and continue to enjoy the 6

dominant service provider status in the domain of fixed line services. [21] BSNL controls 79% of fixed line share in the country. In the mobile telephony sector, Bharti Airtel controls 24.3% subscriber base followed by Reliance Communications with 18.9%, Vodafone with 18.8%, BSNL with 12.7% subscriber base as of June-2009. India had a total of 525,657,000 mobile phone connections by 2009. Total fixed-line and wireless subscribers reached 688 million as of August 2010.

HISTORY OF CINEMA IN INDIA

The history of film in India begins with the screening of Auguste and Louis Lumire moving pictures in Bombay during the July of 1895. Raja Harishchandra a full length feature film was initiated in 1912 and completed later. Alam Ara (released 14 March 1931) directed by Ardeshir Irani was the first Indian movie with dialogs. Indian films were soon being followed throughout Southeast Asia and the Middle East, where modest dressing and subdued sexuality of these films was found to be acceptable to the sensibilities of the audience belonging to the various Islamic countries of the region. As cinema as a medium gained popularity in the country as many as 1, 000 films in various languages of India were produced annually. Hollywood also gained a foothold in India with special effects films such as Jurassic Park (1993) and Speed (1994) being specially appreciated by the local audiences. Expatriates throughout the United Kingdom and in the United States continued to give rise to an international audiences to Indian movies, which according to The Encyclopedia Britannica (2008) entry on Bollywood' continued to be formulaic story lines, expertly choreographed fight scenes, spectacular song-and-dance routines, emotion-charged melodrama, and larger-than-life heroes.

INDIAN MEDIA : AT A GLANCE

Official Country Name: Population: Language(s):

Republic of India 1, 200,000,000 (Approx) Hindi, English, Bengali, Telugu, Marathi, Tamil, Malayalam, Punjabi, Gujarati, Kannada, Oriya, Assamese, Urdu

Literacy rate: Area: GDP: Number of Daily Newspapers: Total Circulation:

60.0% (Approx) 3,287,590 sq km 911,000 (US$ millions) 398 30,772,000

Circulation per 1,000: Number of Non daily Newspapers: Total Circulation: Circulation per 1,000: Total Newspaper Ad Receipts: As % of All Ad Expenditures: Number of Television Stations: Number of Television Sets: Television Sets per 1,000: Number of Cable Subscribers: Cable Subscribers per 1,000: Number of Radio Stations: Number of Radio Receivers: Radio Receivers per 1,000: Number of Individuals with Computers: Computers per 1,000: Number of Individuals with Internet Access: Internet Access per 1,000:

60 98 7,774,000 13 35,624 (Rupees millions) 50.40 562 63,000,000 77 39,112,150 38.5 312 116,000,000 120 4,600,000 4.5 5,000,000 4.9

MAJOR PLAYERS OF MASS COMMUNICATION IN INDIA

NEWSPAPERS
ENGLISH

Daily The Hindu Business Line Business Standard Deccan Chronicle Deccan Herald
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Financial Express MiD-DAY The Pioneer The Hindustan Times The Indian Express The Telegraph (Kolkata) Bangalore Mirror The Times of India Asian age

HINDI

Amar Ujala Dainik Bhaskar Hindustan Dainik Jagran Rashtriya Sahara Jansatta Navbharat Times Punjab Kesari Rajasthan Patrika Aj Janmukh Navabharat

NEWS CHANNELS
ENGLISH 10

BBC World CNBC-TV18 CNN CNN IBN ET Now Headlines Today NDTV 24x7 NDTV Profit Times Now DD News News X Bloomberg UTV

HINDI

Aaj Tak IBN-7 India TV Live India NDTV India India News News 24 Sahara Samay STAR News TOTAL TV Zee News Press TV A2Z News

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ENTERTAINMENT CHANNELS
GENERAL ENTERTAINMENT

AXN Australia Network BBC Entertainment Hallmark Channel Star World Zee Cafe FX Fox Crime Colors DD National Imagine TV Sahara One Sony Entertainment Television STAR Plus STAR One SAB TV Zee TV 9X

MUSIC CHANNELS

VH1 9XM Channel V ETC Lemon

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MTV India Music India Bindass

MOVIES CHANNELS

HBO MGM NDTV Lumiere STAR Movies SET PIX TCM UTV World Movies WB Channel Zee Studio Movies Now Lumiere Movies INDIA TALKIES UTV Action Enterr10 Filmy Manoranjan TV SET Max STAR Gold B4U Movies Zee Action Zee Cinema Zee Classic

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Zee Premiere

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COMPANY PROFILE
SAHARA INDIA TV NETWORK
1. The journey in electronic media started with the emergence of Sahara Samay Network as a news network of reach and repute. 2. The network offers five Regional News channels catering to millions and millions of Hindi speaking viewers in the states of U.P./Uttarakhand, M.P./Chattisgarh, Bihar/Jharkhand, NCR/Rajasthan/Haryana and Mumbai. Additionally the network also offers 'Samay', a 24-hr national news channel broadcast in over 66 countries.

Sahara Samay Rashtriya

To re-dedicate itself with renewed energy and commitment to the news consumer. Revamped 24x7 offering ,with a promise Har Jagah Har Samay. Samay has reinvented itself with a quality improvement resulting in even wider reach and depth. Samay' has already witnessed an unprecedented rise in viewership. The innovative programming mix . Key differentiator being the choice of stories and the seriousness of the issues involved that are highlighted through branded shows across the news cycle. Comprehensive news coverage, doubled up with a wide reach and network. Countrywide news network offering the most effective and powerful combination of man and machine. Over 1000 journalists using 50 live news bureaus that are further connected to 1600 VSAT centers for rapid news gathering across the country. Hi-tech multi-channel uplink earth station that enables high telecast quality

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Sahara Samay City- Centric

Introduction With the aim of tapping the power of local news coverage, Sahara Samay launched a bouquet of city centric regional news channels that provide in-depth and exhaustive local coverage of news as they happen. All the city centric channels are enjoying respectable viewership from their respective regions. It is not surprising considering the in-depth and responsible reporting that our channels maintain while bringing news items that matter the most to the people.

Sahara Samay
NCR/RAJASTHAN/HARYANA

Sahara Samay NCR/Raj/Haryana is a 24 hours Hindi News channel, covering Rajasthan, Haryana and NCR-centric news. The channel programming covers the entire spectrum of genre with specific programs on lifestyle, fashion, food, shopping, health and fitness, sports, education, career and city issues The channel has built an understanding on the mindset and preferences of its audience through rigorous research that is reflected in the programs it offers. Sahara Samay NCR/Rajasthan/Haryana is captivating the audience by distilling the essence of these states. It has skillfully programmed the passion, emotion and life of the land and its people.

SAHARA SAMAY MP/CHATTISGARH Sahara Samay MP/ Chhattisgarh is a 24 hours, free-to-air Hindi news channel from the bouquet of Sahara Samay. Launched on October 16, 2003, the channel has revoulutionised the concept of news boardcasting with its unique approach to showcase the regional news with a wider perspective. Honoured by the Hon'ble Union Minister for Information and Broadcasting, Shri Jaipal Reddy on the Sixth Anniversary celebrations, Sahara Samay MP/ Chhattisgarh channel has been awarded for the Best Content and Technical Excellence of its feature 'Mudde Ki 16

Baat' at the Broadcast Engineering Society Award-2005.

Sahara Samay MP/ Chhatisgarhs role as a bold, independent and objective channel is increasingly being appreciated and applauded by viewers spread over both the states, with five Bureaus located in prime cities of the two states - Jabalpur, Gwalior, Indore, Bhopal and Raipur and over 150 reporters

SAHARA SAMAY BIHAR/JHARKHAND

Sahara Samay Bihar/Jharkhand is a Hindi regional news channel from the bouquet of Sahara Samay. Launched on January 14, 2005, the channel spans the widest spectrum of national and international news apart from every nook and corner of the two states. The channel provides quality and accurate news through its wide network of over two hundred correspondents. The channel has seven major bureaus located in Patna, Muzaffarpur, Gaya, Purnea, Bhagalpur, Ranchi and Jamshedpur manned by experienced reporters and equipped with state-of-the-art technologies for upto-the-minute live coverage.

SAHARA SAMAY UP/UTTARAKHAND With a wide network of reporters and 9 Bureaus in Allahabad, Meerut, Barely, Lucknow, Kanpur, Dehradun, Agra, Gorakhpur and Varanasi, spread across the two states, the channel has been at the forefront of news political and socio-economic, emanating from the two states. The channel has taken a lead in raising people-oriented issues. The channel also provides access to numerous advertisers and media planners, who want to communicate their products and services to some of the largest captive audiences within the vast market of Uttar Pradesh and Uttarakhand

SAHARA INDIA MEDIA-PRINT

RASHTRIYA SAHARA

41 editions of Hindi Daily Newspaper with 6 printing centers. One of the publications is the Hindi Daily. One of the most popular Hindi daily of the capital having a significant presence in Delhi and its adjoining areas. 17

Circulation of more than 4, 39,678 copies simultaneously published from Delhi,Lucknow, Gorakhpur, Patna, Kanpur & Dehradun and soon to start Varanasi. Combined circulation of more than 44,73,494 copies per day . Readership of over 45.00 Lac per day. Rashtriya Sahara- Delhi Edition is also circulated in few Air India domestic flights as well as in Rajdhani and Shatabdi Express trains plying to various destinations.

ROZNAMA RASHTRIYA SAHARA

leading and the only No.1 Urdu daily of our Nation Simultaneously published from Delhi, Lucknow, Gorakhpur, Mumbai, Kolkata, Patna, Ranchi, Hyderabad, Kanpur & Bangalore More than 383,897copies and 30,71,176 readerships every day. The Hyderabad edition of the daily is the biggest Urdu Newspaper in the country. Urdu Daily with 15 Editions & 9 printing centers

AALMI SAHARA National Urdu weekly with International standards Main Contents: Politics (National & International), Adab (literature), Story, Sports, Articles related to children and women, Life Style, Health, and Film etc. Circulation of 71,000 Copies Weekly, Readership of almost 8,52,000 per Week.

BAZM-E-SAHARA An All colour Urdu Literary Lifestyle Complete Family Magazine Main Contents: Politics, Adab, News in brief (National and International), Ghazals, Features, Interviews, Country report, Lifestyle, Dress Designing, Beauty Care Tips, Films, Film Reviews and TV, Cookery, Recipes of different delicacies. Every issue carries detailed information on different industries like the brass industry of Moradabad, Wood industry of Saharanpur, Leather industry of Kanpur and Agra etc apart from a regular country report.

SAHARA TIME English weekly magazine with 1 national edition with 72 pages pan India news network.

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SAHARA INDIA MEDIA-WEB EDITION

www.samaylive.com started as an extension to our news channel on 27th March 2003. Idea was to create a synergy between TV ,web & print . Samaylive targets both the masses and _ the classes. Reach out maximum thru Hindi language & establish a presence of regional TV network thru the web medium. Currently Page views 7.0 Mn, (30 Lacs in Hindi + 40 Lacs in English)(Source: Google Analytics). Absolute Unique visitors 4.5 Lacs, (2 Lacs in Hindi + 2.5 Lacs in English)(Source: Google Analytics). Registered Users 5 Lacs, and growing by the day.

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LOGOS

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PART B
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COMPENSATION MANAGEMENT

What is compensation?

Introduction
The term compensation, as a substitute word for wages and salaries, is of recent origin. Pay or compensation represents an exchange between the employee and the organization. Each gives something in return for something else. However, in todays competitive world, compensation issues are more transparent and every employee can make an informed choice based on compensation packages. Some countries (particularly developed ones) consider compensation as a means of protection against potential job loss. Therefore, compensation should be fair, irrespective of economic consideration. Many scholars believe that compensation is the outcome of productivity. Compensation is something which counterbalances the efforts of workers. In CHINA, compensation is represented by the symbol for logs & water, that is something which ensures basic necessities of life. In JAPAN, it is viewed as providing something. In INDIA, right from the Vedic age, the volume of work and the time required to perform the work were considered to decide compensation. In EUROPE, the church advocated the principles of just wage or compensation.

DEFINITION
COMPENSATION may be defined as all forms of financial returns, tangible services

and benefits, that an employee receives in his/her tenure of employment. It is viewed as a system of rewards to motivate employees, so that organization can achieve their intended goals and objectives. 22

 COMPENSATION is what employees receive in exchange for their contribution to the

Organisation.

REMUNERATION is the compensation an employee receives in turn for his or her contribution to the organisation. The term Compensation is comprehensive which includes Pay, incentives, and benefits offered by employers for hiring the services of employees. Remuneration occupies an important place in the life of an employee. Employees standard of living, status in society, motivation, loyalty and productivity depend upon the remuneration they receive. COMPONENTS OF REMUNERATION: (NATURE) Compensation offered by an ORGANISATION comprises of:
a. Basic Pay or Wages and Salary: It is the Basic compensation an employee gets, usually

as wages and salary. Wages represent hourly rate of pay and salary refer to the monthly rate of pay, irrespective of the number of hours put in by the employee. Wages and salaries are subject to annual increments. They differ from employee to employee, and depend upon the nature of job, seniority and merit.
b. Variable Pay: It is the compensation that is linked directly to performance

accomplishments like incentives, bonuses, stock option.

c. Allowances: i.

D.A. Dearness Allowance: It is the compensation linked to the cost of living, inflation etc. it varies with respect to various consumer indexes, like AICPI All India Consumer Price Index.

ii. C.C.A. City Compensation Allowance It varies with respect to A, B or C class

cities.
iii. H.R.A. House Rent Allowance It varies with respect to A, B or C class cities. iv. T.A. Travelling Allowance for daily commuting from home to place of work,

also called as Petrol Allowance, in case an employee owns a vehicle.

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d. Benefits: these are indirect rewards given to an employee as a part of organisational

membership like health insurance, Leave fare allowance LFA or leave travel concession LTC, retirement benefits like Gratuity, PF, Pension and Superannuation. They are also known as Fringe benefits. MODERN DEFINITION OF COMPENSATION The modern definition of compensation, however considers both intrinsic (psychological) and extrinsic (tangible) component of compensation. While extrinsic compensation covers both monetary and non-monetary rewards, intrinsic compensation reflects the employees mental satisfaction with their job accomplishments.

REWARD

INTRINSIC

EXTRINSIC

DIRECT COMPENSATIO N PARTICIPATION IN DECISION MAKING OPPORTUNITIES FOR PERSONAL GROWTH MORE RESPONSIBILITY DIVERSITY OF ACTIVITIES MORE INTERESTING WORK GREATER JOB AND DIRECTION BASIC WAGE OR SALARY

INDIRECT COMPENSATIO N PROTECTION PROGRAMME S PAY FOR TIME NOT

NON-FINANCIAL COMPENSATION PREFERRED OFFICE FURNISHING PREFERRED LUNCH HOURS ASSIGNED PARKING SPACES PREFERRED WORK ASSIGNME BUSINESS CARDS OWN SECY IMPRESSIVE JOB TITLES

OVERTIME AND HOLIDAY PREMIUMS

PERFORMANCE BONUS

SERVICES AND PERQUISITES

PROFIT SHARING STOCK OPTION

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ROLE OF COMPENSATION AND REWARD IN ORGANIZATION: Compensation and Reward system plays vital role in a business organization. Since, among four Ms, i.e. Men, Material, Machine and Money, Men has been most important factor, it is impossible to imagine a business process without Men. Land, Labor, Capital and Organization are four major factors of production. Every factor contributes to the process of production/business. It expects return from the business process such as Rent is the return expected by the Landlord. Similarly Capitalist expects Interest and Organizers i.e. Entrepreneur expects profits. The labor expects wages from the process. It is evident that other factors are in-human factors and as such labor plays vital role in bringing about the process of production/business in motion. The other factors being human, has expectations, emotions, ambitions and egos. Labour therefore expects to have fair share in the business/production process. OBJECTIVES OF COMPENSATION PLANNING
1. Fairness or Equity: This is the most important objective of any pay system. The term

Equity has three dimensions. These are:

a. Internal Equity: This ensures more difficult jobs are paid more b. External Equity: This ensures jobs are fairly compensated in comparison to

external labour markets

c. Individual Equity: This ensures equal pay for equal work each individuals

pay is fair when compared to others doing the same or similar jobs
2. Attract talent: Salaries offered must be high enough to motivate and attract talented

people.
3. Retain Talent: Employees may quit if compensation levels are lower.: Every

organisations quest is to attract and retain employees who are best qualified to achieve its objectives and goals. 25

4. New and Desired Behaviour: Pay should reward loyalty, commitment, experience, risk

taking, initiative and other desired behaviour. When organisation fails to reward such behaviour the employees may go in search of greener pastures outside.
5. Control costs: Effective compensation package management ensures that employees are

neither overpaid nor under paid.

6. Comply with Legal Rules: Compensation should comply with Government rules like

minimum wages, payment of bonus etc., ADVANTAGES OF FAIR COMPENSATION SYSTEM

Therefore a fair compensation system is a must for every business organization. The fair compensation system will help in the following: 1. If an ideal compensation system is designed, it will have positive impact on the efficiency and results produced by workmen. 2. Such system will encourage the normal worker to perform better and achieve the standards fixed. 3. this system will encourage the process of job evaluation. It will also help in setting up an ideal job evaluation, which will have transparency, and the standards fixing would be more realistic and achievable. 4. Such a system would be well defined and uniform. It will be apply to all the levels of the organization as a general system. 5. The system would be simple and flexible so that every worker/recipient would be able to compute his own compensation receivable. 6. Such system would be easy to implement, so that it would not penalize the workers for the reasons beyond their control and would not result in exploitation of workers. 7. It will raise the morale, efficiency and cooperation among the workers. It, being just and fair would provide satisfaction to the workers. 8. Such system would help management in complying with the various labor acts. 9. Such system would also bring about amicable settlement of disputes between the workmen union and management.

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10. The system would embody itself the principle of equal work equal wages. Encouragement for those who perform better and opportunities for those who wish to excel

Importance of Compensation / REWARD System in business organizations:

Money makes the mare go is the proverb. It holds good for all the factors participating in the business process expects its fair share of prosperity of the business. Compensation/ Reward System play a vital role in the business organization. And its importance can be very well ascertained as follows: 1. Sound Compensation/Reward System brings amicability and peace in the relationship of employer and employees. 2. The system brings out the best out of every employee in the organization. It aims at creating a healthy competition among them. And as such, encourages them to work hard and efficiently. 3. The system provides adequate opportunities to those who wish to perform better. The system provides growth and advancement opportunities to the deserving employees. 4. The system upholds the principle of equal wages. It provides transparency and parity too. 5. The perfect Compensation system provides platform for happy and satisfied workforce. This minimizes the labor turnover. The organization enjoys the stability. 6. The organization is able to retain the best talent by providing them adequate compensation thereby stopping them from switching over to another job. 7. The business organization can think of expansion and growth if it has the support of skillful, talented and happy workforce. 8. The sound Compensation system is hallmark of Organizations success and prosperity. The success and stability of organization is measured with pay-package it provides to its employees. 9. Both employer and employees get benefited because of the sound Compensation System.

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10. A sound Compensation System helps the organization keep pace with changing environment. It helps the organization to cope up with the wage levels in neighboring industries. 11. Sound Compensation System minimizes the complaints from the employees, provides them the congenial work environment to perform better and sets up for them the targets to be achieved. Definite targets help employees know their role in the organization, which minimize wastage, and enhance overall efficiency. It also helps organization to reduce the cost of production and maximize profits.

FACTORS INFLUENCING COMPENSATION Several factors are there which affects compensation system in modern business scenario. Some of them highlighted here:1. JOB NEEDS Jobs vary in their difficulty, complexity, and challenge. It also varies with respect to high or low levels of KSA. Simple routine tasks can be done by many people. Complex challenging jobs can be done by few people with high skill levels, so they receive high pay. 2. ABILITY TO PAY High profit level enables companies to pay higher wages /salary. For ex: software industries pay higher than commodity based industries like steel, cement, automobile etc. 3. COST OF LIVING Inflation reduces the purchasing power. To overcome this unions and workers link wages and salary to the cost of living index. Dearness Allowance: It is the compensation linked to the cost of living, inflation etc. it varies with respect to various consumer indexes, like AICPI All India Consumer Price Index. 4. PREVAILING WAGE RATES Prevailing wage rates in similar industries are taken into account while fixing wages and salaries. If this is not done then it is difficult to attract and retain talent. 28

5. PRODUCTIVITY In most private sector companies the wages and salary is linked to their productivity levels. If your job performance is good you get good wages. Eg: A sick company cannot pay competitive wages in tune with profit making companies. 6. DEMAND AND SUPPLY OF LABOUR High demands for software professionals, R&D persons in drug industry, telecom and electronics engineers, etc, ensure higher wages. Over supply of labour leads to steep fall in their wages.

7. STATE REGULATIONS The legal stipulations in respect of minimum wages, bonus, dearness allowance, PF, determine the wage structure in the company. 8. COST TO COMPANY Cost to the company, is described as an exchange of payments from an employer for the services provided by employee. Recently, Indian Software company whose wages were dependent on rupee conversion of dollar, faced with a falling dollar. Companies are cutting wages of their staff, reducing increments, and freezing recruitments on account of high cost to the company

Various Compensation Systems

There are basically two compensation system viz. Basis Time Rate and Piece Rate. Theses two systems are devised to make payment to workers of different skills, efficiency levels. Its is meant for making payment, which should adequate compensate the worker for his efforts.

COMPENSATION SYSTEM

TIME RATE

PIECE RATE

BONUS

PROFIT SHARING

INDIRECT MONETARY INCENTIVES

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1. TIME RATE SYSTEM: This system is divided into three categories. TIME RATES

ORDINARY LEVEL

HIGH WAGE LEVEL

GRADUATE D TIME RATES

Ordinary Level: It is calculated on time (daily, monthly, weekly etc.)The formula for calculation of salary is Rate per hour X Hours worked = Earnings (RPH X HW = E).

High Wage Level : It is calculated on hourly basis put over time is not paid. The formula for calculation of salary is RPH X HW = E Graduate System: Payment: the basis is linked with dearness cost of living. The index of cost of living is varying and that is considered for calculating the remuneration. Formula: Basic Salary is Rs. 2,000/- and Cost of living Index (D.A) is 100% then, Rs 2000+100% of Rs 2000 as cost of living is added, thus total remuneration is Rs. 4000/-. It after 6 months, cost of living index change 15%. Then basic salary + 150% of basic salary i.e. Rs 3,000/- will make it Rs, 5000.

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2. PIECE RATE/ PAYMENT RATE ( PAYMENT BY RESULTS)

SYSTEM OF PIECE RATE ( PAYMENT BY RESULTS)

STRAIGHT PIECE RATE

PIECE & TIME

DIFFERENTI AL PIECE

TAYLOR

MERRICK SYSTEM

GANTT TASK

Straight Piece Rate: Payment: Flat rate is applicable per unit, which is predetermined. The time spent is not considered. Formula: PPR X O = Earnings. Piece Rate and Time Rate Combinations: Payment: It is a dual rate system, designed to perfect inefficient workers. The worker is ensured to get the mi9nimum payment. If the payment is calculated on the basis of piece rate guarantees and number of pieces fall below the minimum wages guaranteed, he is paid by time Rate.

Differential Piece rate: Payment: In favor of piece rate system, minimum wages were assured. However, under this system, instead of combining time-rate and piece-rate, there are dual rates for different efficiency level. The purpose behind keeping high piece rate for higher efficiency is as the level of production increases, the cost per unit falls. 31

3. BONUS: Bonus is given by the company to their employees as a reward. It is been fixed by the government i. ei.e.8.33%. Bonus encourages the employees to work hard. It is a motivating factor for the employees to improve their efficiency.

4. PROFIT SHARING: Profit Sharing is the most motivating factor. When the company makes profit it gives some kind of share to their employees as a Annual increment. This helps to motive employees to work hard and get more increment.

5. INDIRECT MONETARY INCENTIVE

Indirect Monetary Incentives like traveling allowance, HRA, Dearness allowance, medical facility, etc are very motivating for the employees.

COMPENSATION STRUCTURE

Introduction

One of the most vital factors the motivation, retention and the morale amongst the employees id the compensation system, policies and review philosophies of any organization. While the bargain able employees generally have their unions to negotiate or review terms with the Management-which are governed by the Long Term Settlements- the terms of the managerial employees are mostly seen to be at the mercy or 32

the goodwill of the organization, reviews of which may or may not be regular or timely, or often do not seem to meet the expectations or logic of such employees. Management Compensation therefore, now plays a very significant part along with the working style and environment, empowerment etc. in the organizations success strategy. While individual organizations may have differences in their methodologies based on factors best suited their perceived needs.

COMPONENTS OF MODERN COMPENSATION STRUCTURE

1. Salary, Basic Salary or Consolidated Salary continues to remain as the major

component of compensation, though Salary Scales are often discarded these days, or used only as guides. Individual Salary is generally decided initially using the Scale, but thereafter performance, contribution to targets or results generated determine the revisions periodically, which may vary widely from individual to individual. Salary broad handling is therefore, getting recognition and acceptance.
2. Grade wise flat Allowance are being considered generally, except where tax exemption

benefits are still available, when they continue as separate components. Allowances may be linked to the Salary as a percentage or by slabs, but preference is for flat amounts, which do not increase automatically, and therefore increase could be discretionary, and therefore controllable.
3. Reimbursements of expenses incurred on Company work has become limited, and in

line to conform to the tax laws. Being actual in most cases, they are not considered as apart of the compensation, unless it is provided towards personal benefits.
4. Annual payments: Bonus or Commission, and Leave travel are common features some

tax reliefs apply for the latter.

5. Benefits generally comprise of mostly unfurnished company owned or leased

accommodation, use of company or leased vehicles, medical coverage, retrial benefits covering Provident Fund, Pension or Superannuation and Gratuity, post-retrial medical assistance, easy loan schemes at low or zero interest rates for house building, cars or vehicles, furniture or utility items etc. renting employees owned housing, club entrance free reimbursement etc. Minor benefits could be provision of security, driver or gardening assistance, else of products or assets at a concessional rate, relocation and transfer expenses including admission etc. fees for children, credit card fees, phones etc. 33

6. Employee stock option schemes which has been popular

in IT industry-,is not extensively used yet, not being tax advantageous to other industries, nor seen as being very attractive with lesser growth trends for their share values especially in the wellestablished older companies.

7. Most companies, as against earlier visible costs, use the Total cost to the Company

concept as basis. Cost of the most benefits are averaged or computed on actual basis, and within the system of the overall cost, but with greater compliance to tax laws, this basket concept is on the wane.
8. Retiral benefits: Some in recognition of the past contribution of pensioners, and to

partly offset the inflation post retirement practices periodic improvement in pensions, or a guaranteed grade minimum pension.
9. Performance Bonus that do not increase future liability is being

given more as a recognition of results generated. It requires transparent, balanced and fair systems and benchmarks, and also agree targets by the managers in advance during planning and review discussions. From the earlier grade oriented compensation system within reasonable boundaries, compensation often has to be somewhat tailor made for specialist or key contributors to retain them in the very volatile job market.

10.

11. Compensation review periods have become annual generally and sometimes oftener, as compared to every three to five years earlier, in the fast changing market situation.

12. Retention strategies employed are generally the attractive interest free or at low rates for loans, on which market rate of interest may apply on early exit, renting employee owned property to set off repayment of loans, qualifying period s or attractive service benefits added to the retrial benefits or post retirement benefits etc. To summarize, the need to regularly carry out detailed compensation reviews both within or without, and with full support and commitment from the top is essential. Openness and transparency are important to the mangers in the very sensitive and personal issue of management remuneration, and therefore policies and practices should match. The remuneration and the system have to be, and seen to be, fair and just, non bureaucratic and dynamic, and which dealt with human feelings and necessary speed, still remain competitively attractive.

34

SALARY AND WAGE STRUCTURE IN SAHARA INDIA

Salary or wage means all the remuneration, capable of being expressed in terms of money, which would, if the terms of the contract of employment, express or implied, were fulfilled, be payable, whether conditionally upon the regular attendance, good work or conduct other behavior of the employed person or otherwise, to a person employed in respect of his / her employment and includes any bonus or other additional remuneration of the nature as aforesaid which would be so payable and any sum payable to such person by reason of the termination of his employment but does not include:-

The value of house accommodation, supply of light and water, medical attendance or the amenity, or any service excluded by general or special order of the appropriate government. Any contribution paid by the employer on any pension fund or provident fund. Any sum paid to the employed person to defray special expenses entailed by the nature of his employment. Any gratuity payable or discharge.

Above definition is according to the Payment Of Wage Act 1936. Now a days wages revised statutorily through adjudication, arbitration, conciliation, or other statutory process should also be deemed as wages. From above definition of wage, the following ingredients have come out: 1. Employer-employee relation and relation of master & servant. 35

2. Payment of remuneration as per terms of contract. 3. Payment of remuneration on the basis of good attendance, good work or conduct. 4. Any unfair conduct would amount to misconduct if the gravity of the same is serious that may amount to suspension. 5. Bonus would be deemed as wage if it were a part of contract of employment. 6. Payment of sums at the time of termination shall also deemed as wage, but not gratuity. 7. Wages so fixed or modified / revised as per terms of award of Tribunal, adjudicator or settlement in conciliation proceedings shall also be deemed as wage.

BONUS IS WAGE

After the amendment in the Payment of Wages Act 1957- the bonus payable as a part of remuneration under the terms of employment, or settlement between the parties, or order of the court would come within the per view of the definition of Wages.

WAGES DO NOT INCLUDE POTENTIAL WAGES

The term Wages plainly does not mean potential wages, but wages earned. The expression, remuneration, which would, if the terms of contract were fulfilled be payable, means no more than remuneration payable on the fulfillment of the contract.

STATUTORY OR LIVING WAGE

It is just minimum living wage, which workers aspire at least for survival. Without this they will not be able to survive. The lowest and alliterate or semi literate workers need survival wage.

36

(The minimum statutory wage includes basic and dearness allowance)

FAIR WAGE

Fair wage not only includes basic and d.a. but also other allowances including house rent allowances, conveyance and medical allowance, attendance and productivity allowances etc. Apart from fair wage, facility of L.T.A., telephone, cell phone which are not the part of salary or wage is also given to employees to increase efficiency and productivity. It also helps to build a high standard of industrial peace and relations.

MODE OF PAYMENT

Payment of wages to an employed person shall be any of the following:-

DAILY RATER

Daily payment to a daily rated worker. Weekly payment to a daily rated worker. Fortnightly payment to a daily rated worker. Monthly payment to a daily rated worker.

PIECE RATER Certain jobs in schedule employments are performed on piece rate basis, viz: Bidi making, Brick kiln, Carpet making, tailoring etc.

37

In the aforesaid employments majority of workers are illiterate and poor but are very skilful, crafty and efficient in their work. In the absence of any statute law for payments, it can disbursed as and when claimed or as fixed by the employer. But it cannot be extended more than a month.

MONTHLY PAYMENT It is the best way of payment of remuneration to employed persons. The law of wages also recognized it. But the law of payment of wages has made it mandatory to disburse salary by 7th of each month. In case employees exceeds 1000 in number then payment should be made by 10 th of every month.

38

39

ANNEXURE FOR PERKS

S NO. CADRE TELEPHONE (Rs)
METRO NONMETRO 750 750 1000

MOBILE (Rs)
METRO

FUEL (Lts.)

ELECTRICITY
(Rs)

NONMETRO NONMETRO METRO 750 750 1000 100 100 100 50 50 50

1 2 3

4 5 6 7 8 9 10

Asst. Manager Worker Dy. Manager Worker Manager Worker Asst. Sr. Manager Worker Dy. Sr. Manager Worker Sr.Manager Worker Asstt. Chief Manager Worker Dy. Chief Manager Worker Chief Manager Worker Asstt. General

750 750 1000

1000 1000 1500

NIL NIL NIL

1500 1500 1500 2000 3500 3500 3500

1000 1000 1000 2000 3500 3500 3500

1500 2500 2500 3000 3000 4000 4000

1000 2000 2000 2000 2000 3500 3500

150 150 150 200 200 200 300

100 100 100 150 150 150 200

NIL NIL NIL 1000 1000 1000 1500

11 12 13 14 15

Manager Worker Dy. General Manager Worker General Manager Worker Chief General Manager Worker Asstt. Director Worker Dy. Director Worker

5000 5000 10000 10000 10000

5000 5000 7500 7500 7500

7500 7500 10000 10000 10000

5000 5000 7500 7500 7500

300 300 400 400 400

200 200 250 250 250

2000 3000 3000 3000 5000

41

ALLOWANCES ADMISSIBLE ON TEMPORARY DUTY

DAILY, TRAVELLING AND LODGING ALLOWANCE
Terms and Conditions 1. For the purpose of entitlement of Daily Allowance a day would mean a period of 24 hrs (beginning at 0000 hrs midnight and concluding at 2400 hrs midnight). 2. If on a particular day a worker is out on tour, his station entitlement for DA would be:(a) (b) (c) (d) For less than 6 hrs For more than 6 hrs but less than 12 hrs For more than 12 hrs (same day return back) For night halt/stay during tour 25% of Daily Allowance 50% of Daily Allowance 75% of Daily Allowance 100% of Daily Allowance

3. No amount shall be admissible of incidentals, instead daily allowance shall be paid in accordance to the Clause No 2 above. 4. In case the place visited by a worker is within the distance of total 100 km (To & Fro) from the municipal limits of the present place of posting, then no daily allowance shall be admissible. 5. Lodging charges will be paid only in case of night stay during tour.

6. Normally a worker will stay in the guest house of the company, if exist at the visiting place, in case accommodation in the guest house is available, but for the personal reasons, the worker does not stay then no lodging allowances shall be admissible. (a) In case accommodation is not available in the guest house, the concerned worker shall obtain a Non-availability certificate from the local office and in that case shall be entitled to lodging allowance at the prescribed rates which will be admissible against presentation of bills. (b) In case either accommodation is not available in the guest house or companys guest house does not exist at the visiting place and the concerned worker stays with any acquaintance, (s)he will be entitled to lodging allowance at the rate of 50% of the specified rates.

42

(c) During stay at the companys guest house if the fooding facility available and the worker is utilizing the same, then (s)he shall be admissible only for 50% of Daily Allowances. 7. No DA and lodging expanses shall be admissible at the home town, permanent address or at a place where the family of the concerned worker is staying/residing for the time being. 8. Mode/Class of travel will be as indicated in the Table-1 against the respective categories of workers. 9. Local conveyance shall be admissible within the municipal limits of the tour station.

10. For travel between two stations, Mode/class of travel as mentioned in the table shall be resorted to. In case mode of transport as per entitlement is not available, whatever mode of transport is available shall be used. 11. Classification of Cities will be as per the Table-2.

12. Workers eligible for Daily HQ Allowance (exclusively for Para banking Division) shall not charge it through their TA bill, but it will be paid to the worker concerned alongwith salary. 13. In a very special case (exclusively for SITV) and as per the requirement of the situation, the ENC(Electronic News Coverage) crew will be eligible for the following:(a) (i) They will be allowed to travel by AC-III tier whenever ENC cameras, equipments are carried subject to prior sanction by Divisional Heads/H.O.D. (ii) In very special cases and according to requirement of the situation, the ENC crew can use Four Wheeler for news coverage, subject to approval of Divisional Head/H.O.D. (b) In case of any urgency, crew may be allowed to travel by air subject to prior approval of Divisional Head. (c) Camera crew while travelling with senior officials will be allowed for lodging and boarding as per entitlement of their next group.

43

44

TRAVELING/LODGING/BOARDING/DAILY ALLOWANCES/CONVEYANCE CHART

Grouping of Workers for TA Rules I II Cadre/Designation Mode & Class of Entitlement AC 1st /Air fare (Y) AC 1st /Air fare (Y) Lodging/Boarding Daily Allowance Local Conveyance

Asst Director worker and Above Chief General Manager Worker to Asst General Manager Worker Chief Manager Worker to Asst Sr. Manager Worker Manager Worker / Dy. Manager Worker / Asst Manager Worker Sr. Executive Worker / Executive Worker / Jr. Executive Worker Sr. Office Worker/ Office Worker

III

AC 2nd Class

IV

AC 2nd Class

AC III tier /Chair Car/Ac Bus Fare

5 Star Room Accommodation A- 4000 B- 3000 C- 1800 D- 1500 A- 3000 B- 2500 C- 1500 D- 1200 A- 2000 B- 1800 C- 1200 D- 900 A- 1500 B- 1200 C- 600 D- 450 ABCDABCDABCD1200 1000 400 300 500 400 300 200 400 300 200 150

On Actual Basis A-600 B-500 C-400 D-300 A-525 B-450 C-375 D-300 A-450 B-375 C-300 D-250 A-375 B-300 C-225 D-175 A-300 B-250 C-200 D-150 A-250 B-200 C-150 D-125 A-200 B-150 C-125 D-100

AC Taxi Fare AC Taxi Fare

AC Taxi Fare

Non-AC Taxi Fare

VI

Sleeper Class/Chair Car/Deluxe Bus fair

VII

Asst Jr. Worker-I / Asst Jr. Worker-II Sub Jr. Worker(Tech) / Sub Jr. Worker-I / Sub Jr. Worker-II / Sub Jr. Worker-III

Sleeper Class/Rail/ Bus fair Sleeper Class/Rail/ Bus fair

Auto fare Per Day A- 150 B- 125 C- 100 D- 75 Auto fare Per Day A- 150 B- 125 C- 100 D- 75 Primary mode of Transport (City Bus/ Tempo) Rs 75 Per Day Primary mode of Transport (City Bus/ Tempo) Rs 60 Per Day

VIII

45

Table 1

46

CLASSIFICATION OF TOWNS
Class A Class B Class C Class D Class City Mumbai, Lonavala, Delhi, Kolkata, Bangalore, Noida, Hydarabad & Chennai All State Capitals alongwith Ahmedabad, Bokaro, Baroda, Gorakhpur, Indore, Pondicherry, Pune and Varanasi All District level cities & other cities/towns not included above Rest Other Cities/Towns Table 2

47

LEAVE TRAVEL ALLOWANCES

Introduction
1. Sahara India Limited has a very good system in the form of Leave Travel Allowance for the benefit of its workers. This has been introduced since the inception. However, keeping the inflation and sporadic changes in the business world the has been reintroduced with some changes. The salient features are as follows:Salient Features (a) Travel System, Credit Pocket Money, concurrent Business Travel Policy (TA/DA Policy) has been merged to form the new Leave Travel Allowance Policy. (b) The maximum distance for LTA has been increased from 4000 km (To & Fro) to 5000 km. Those employees who are posted to more than 1000 km from their permanent residence can enjoy additional 1000 km on the recommendations of their Section Heads. (c) The employees can enjoy the international travel also. However, the maximum reimbursement would be paid for the rail fare (according to the status) for 6000 km or actual fare, whichever is less. (d) The Pocket Money during the LTA would be equal to the 07 days DA for A grade city for SJW-III to Chief General Manager Worker. Asst Director Worker to Deputy Director Worker would be paid the Pocket Money for the lowest cadre. (e) The employees can avail their Earned Leave/Casual Leave/Authorised Leave during the LTA. The applied leave must be equal to or less than the balance leave in the account of the employee. Moreover, the official holidays may be combined with the EL/CL/AL. (f) Four family members of the employee i.e. self, spouse, two children, parents, parents-in-laws, siblings also may travel along with the employee. However, the LTA is admissible for four members only. In case a fifth member is travelling with the employee, then 50% of the travel expenditure is to be borne by the employee and 50% of the expenditure would be borne by the organisation provided the fifth member is a child of the employee.

48

(g) LTA can be enjoyed by the employee in a block of four years. There is no provision for carry forward of LTA. Additional Conditions for LTA (a) The employees are authorised to avail the LTA after completion of 03 years or reckonable service only. (b) In case husband and wife are both the employees of the organisation, then the LTA can be enjoyed by either of them only. (c) The imprest money would be paid to the employee on the basis of estimated expenditure for the travel. However, the imprest would be paid on the total recovery of previous imprest, if any. The receipts/Bills etc must be forwarded to the HR department on completion of the travel. (d) The employee desirous to avail the LTA must forward their application in prescribed format with the recommendations of the Section Head one month in advance. (e) No encashment of the LTA is permitted.

49

LEAVE TRAVEL ALLOWANCE

Sl Cadre Group No 1 Asst Director Worker to Dy Director Worker 2 Asst General Manager Worker to Chief General Manager Worker 3 Asst Chief Manager Worker to Chief Manager Worker 4 Asst Manager Worker to Manager Worker 5 Jr Executive Worker to Chief Executive Worker 6 Officer Worker to Chief Officer Worker 7 AJW II and AJW I 8 SJW III to SJW I Mode of Travel AC I(Rail)/Air (Y) (Apex Fare) AC I(Rail)/Air (Y) (Apex Fare) AC II (Rail) AC II (Rail) AC III(Rail)/Chair Car/AC Bus III Tier/ Chair Car/Deluxe Bus III Tier/ Bus III Tier/ Bus Pocket Money 4200 4200 3700 3200 2700 2100 1800 1400

50

BONUS

Provision of bonus in SAHARA INDIA is followed as per the Payment Of Bonus Act 1965. Bonus may be defined as a payment, which is made by the employer in addition to wages, for some special or additional service. The object behind this additional payment is to secure regularity of attendance and performance of superior quality of work. Since sometimes bonus is defined as cash payment made in addition to wages as a stimulus to extra efforts on the part of the workers, its definition refers to term, incentive bonus. Eligibility criteria for bonus

An employee should have work minimum of 30 days in given accounting year. A company can give bonus; minimum 8.33% of the profit or maximum of 20% of the profit. But in SAHARA INDIA bonus structure is flatly maintained at 8.33%. Bonus shall be paid in cash within 8 months from the date of closing of the accounting year. An employee gets bonus even for days:-

1. When ne / she is laid off. 2. When he / she is on leave with salary. 3. Absented from duty due to temporary disablement. 4. When she is on maternity leave with salary.

Bonus given to an employee can be dismissed for following reasons:-

1. Practicing fraud at work place. 2. Showing violent behaviour. 3. Committing property. theft, misappropriation, sabotage any company

51

52

FESTIVAL ADVANCE FOR CONFIRMED KARTAVYAYOGIS

S NO.
1 2

CADRE GROUP
Chief General Manager worker to Executive director worker Chief Manager Worker to General Manager Worker Asstt. Sr. Manager Worker to Dy. Chief Manager Worker Asst. Manager Worker to Manager Worker Jr. Executive Worker to Sr. Executive Worker

FESTIVAL ADVANCE AMT.

CURRENT (Rs) 10000 7500 REVISED (Rs) 20000 15000

REMARKS

5000

10000

01) Festival Advance amt. revised by 100%

4000

8000

3000

6000 02) Recovery of Festival Advance in (10) equal monthly installments (interest free)

Officer Worker to Sr. Officer Worker AJW-I to AJW-II

2500

5000

2000

4000

SJW-III to SJW-I

1500

3000

FOR PROBATIONERS
1 Asst. Manager Worker to Chief Manager Worker 2400 2400 01) Festival Advance amt. remains unchanged 02) Recovery in (06) equal monthly installments

Officer Worker to Sr. Executive Worker

1800

1800

53

SJW-III to AJW-I

1200

1200

SECURITY FUND AMOUNT

S NO.
1 2 3 4 5 6 7 8 9

(interest free)

DETAILS OF CADRE
Platinum card holder Gold card holder (++) Gold card holder (+) Silver card holder(++) Silver card holder(+) Asstt. Sr. Manager Worker & Above Jr. Executive Worker to Manager Worker Sr. officer Worker SJW-III to Officer Worker

AMT (Rs) P.A

3000 2500 2000 1500 1000 150 100 75 50

54

LEAVE ENCASHMENT & LEAVE MANAGEMENT SYSTEM IN SAHARA

Apart from weekly breaks & state wise yearly Gazetted holidays, SAHARA KARTAVYAYOGIS can avail following types of leaves per year. Details of total no. of days which can be enumerated as leave are as follows:-

LEAVES FOR KARTAVYAYOGIS SL NO.

1 2 3 4 5

TYPES OF LEAVES
Total Weekly Holidays / Year Total Gazetted Holidays / Year(approx.) Total Earned Leaves / Year Total Medical Leaves / Year Total Casual Leaves / Year Total

NO. OF DAYS
52 Days 22 Days 20 Days 15 Days 12 Days 121 Days

BASIS OF ENCASHMENT
In Sahara India Pariwar, the leave encashment is granted on the following basis:(a) The accumulation is permitted on Earned Leave only.

(b) Those Kartavyayogi Karyakarta, who have accumulated minimum 25 days of leave till the last day of calendar year are only eligible for encashment facility. (c) Calculation for Leave Encashment:

No of Leave Days to be Encashed X (Present Basic Salary + DA)

55

WELFARE OF KARTAVYAYOGIS IN SAHARA

A Welfare section has been created in the Human Resource Department to centrally view the development of welfare benefits, social security provided to all workers of SAHARA INDIA GROUP. The Schemes and Benefits are briefly as follows :-

1) PROVIDENT FUND

All workers of group are members of the PROVIDENT FUND. The fund is at the rate of 12% wages every month. Equivalent amount is contributed by the employer to the members account. INTEREST

Interest at the rate of 9.5% per annum is allowed by the government against which the organization allowed interest at the rate of 10%. Besides the interest is reckoned on monthly basis for the benefits of the workers.

BONUS INTEREST

The organization allows Bonus Interest at the rate of .5% on the opening balance of the employees share every year.

CONTRIBUTIONS TO PENSION FUND

No contribution is allowed from P.F (employees share) towards Pension Fund like 8.33% , in other organizations.

Thus they are paying better amount of Provident Fund than anywhere else. 56

The settlement of outgoing workers as well as the non-refundable advance from P.F are made expeditiously after receipt of the claim.

2) EMPLOYEE DEPOSIT LINKED INSURANCE SCHEME

This scheme is related to the Provident Fund. The assured amount is payable only to the nominee in case of death of the worker.

Against this scheme the organization has taken Group Insurance Scheme from L.I.C of India. The Premium is paid by the organization. No contribution is required to be made by workers . The GIS is more convenient to the worker for settlement.

The Group Insurance Scheme from LIC is more beneficial to the workers. Under the scheme Rs. 62000/- is payable by the LIC in case of death of the workers whereas the government has provided for Rs. 60000/- from the Provident Fund organization.

3) PENSION

This fund has been created by the organization from their own resources for payment of Pension. No contribution is required to be made by the workers from their wages or Provident Fund.

57

The organization has framed its own Pension Rules, which are more beneficial than others. We have sought exemtion from the government to our rules. The matter is in active consideration before the said authority.

The Pension Rules provide for:-

1) Superannuation 2) Retirement 3) Short Service Pension

The monthly pension is computed @

Pensionable salary X Length of service 60

Thus it is more beneficial than the government scheme of pension in as much as the denominator in the government rules is 70 instead of 60 adopted by us. In case of death of worker while in service pension is payable to the widow and children. Children pension is allowed to 3 children as against 2 children provided by the government. Similarly orphan pension is allowed to 3 orphans against 2 provided by government.

The scheme of pension is revised as per government notification under the Act issued from time to time.

Thus overall our schemes are more beneficial and lucrative than others.

58

4)

GRATUITY
The gratuity is payable as a measure towards social security under the Payment of Gratuity Act 1972. The gratuity is paid for continuous service for not less than 5 years. The same principle is not applicable in case of death of a worker while in service. The gratuity is payable to an out going worker as part of settlement. It is calculated according to formula:Wages last drawn x15 x No. of years of service 26 The wages here means Basic wage + Dearness Allowance

5)

TRUSTS

Considering the interest of the worker and safety of Provident Fund, Pension Fund and of Gratuity, Separate Trusts have been crested which are as under:-

SAHARA INDIA Employees Contributory Provident Fund Trust. SAHARA INDIA Karyakarta Welfare Pension Fund Trust. SAHARA INDIA Karyakarta Gratuity Fund Trust.

The funds are governed by the Employees and Employer Trustees as per Trust Deeds executed by them and the rules framed there under:-

The funds are invested as per directions of the government and the uninvested funds are in the Trust account of the bank. There is general feeling amongst the worker that the funds remain with the company. But this is not so. Funds are 100% safe, either invested according to government directions or in bank, which are in the Trust of the employee/employer trustee. 59

6)

LOANS

SAHARA INDIA provides several type of loan facilities to there kartavyayogis. The most important eligibility criteria to avail loan as a Kartavyayogi is:He / she should have served company at least for 5 years (from the date of joining).

TYPES OF LOANS

Marriage Loans

SAHARA INDIA provides marriage loan facility for its employees and there children. To avail this particular facility employees are suppose to go through formalized paper work. Most importantly the Marriage card should be attached along with the application form for the marriage loan.

This type of loan is refundable in nature or recovered from the employees through easy monthly installments. Marriage loan always given as per the recommendation of proper or departmental authority. There are 2 types of marriage loans given in SAHARA INDIA. They are: Loan for a girls marriage

Under this type of loan no interest is charged to the employee.

Loan for a boys marriage

Under this type of loan a interest of 18% per annum is charged on the employee.

60

General Loan

As the name itself suggests that this type of loan is given for general purpose. General loan is given as per the recommendation of proper and departmental authority.

The interest charged on this type of loan differs on the basis of purpose for which employee has applied for loan.

If employee has applied for any family function loan then rate of interest charged will be 18%p.a. If loan is applied for any other purpose like clearing of debts, medical treatment, any other general purpose then rate of interest charged will be 16% p.a.

Vehicle Loan Vehicle loan facility is provided to the employees of SAHARA INDIA on the basis of there cadre. It necessary to submit the registration photocopy of the vehicle in order to maintain genuinity of the loan given to the employee. S NO. 1 2 CADRE SJW III to SR. OFFICER JR.EXECUTIVE to CHAIRMAN VEHICLE TYPE 2 WHEELER 4 WHEELER

The interest charged for this type of loan is common to all that is 12%p.a.

PF Loan

61

This type of loan is taken by an employee on his / her PF savings. It is a non-refundable kind of loan hence no interest is charged. PF loan can be applied for following purposes:

Renovation or construction of house. Purchase of land. For insurance premium deposit. In case of emergency (accidents, natural calamities, any other immediate n important investment).

In case of emergency this loan is sanctioned as soon as possible.

7)

MEDICAL CLAIMS

Medical facilities are given to kartavyayogis in accordance to the need and the expenses made by a SAHARA employee on his / her or his / her family members (as per company record) medical treatment. The employee should have worked in the organization for at least 3 years. It also a non-refundable kind of claim. There are some criteria to be fulfilled to claim this monetary support. These are:-

Enclosure of original doctors report. Enclosure of original bill summary. Recommendation through proper channel.

8)

MPIR TEST

It is a kind of departmental test. Through this test the employees knowledge is checked. This test covers 2 areas; company history and profile, job knowledge related to the respective departments of employees. After clearing this test an employee get confirmed (permanent enrolment) in the organization.

Advantages of MPIR test 62

Promoting organization commitment amongst employees and improving organization climate. Slab hike (increase in the salary) of employees. Mapping of competencies of employees. After confirmation an employee is entitled for all other facilities and perks and benefits.

63