HR Project

Wages and Salary Administration

INTRODUCTION

NATURE OF THE INDUSTRY

Clothes are an epitome of a culture. People in different parts of the world have their own

styles of dressing which symbolize their culture and status. The last two centuries have seen an

upsurge in the use of man made textiles like polyster, nylon, acrylic, PP, etc in almost every part

of the world.

The textile industry including readymade garments occupies a unique position in the

Indian economy. Its predominant presence in the Indian economy is manifested in terms of its

significant contribution to the industrial production, employment generation and foreign exchange

earnings. It contributes about 14% to the industrial production and about 4% to the GDP. It has

immense potential for employment generation particularly in the rural and remote areas of the

country on account of its close linkage with agriculture. It provides direct employment to about

35 million persons including substantial segments of SC and ST women. In fact, the textile

industry is the second largest provider of employment after agriculture. The contribution of this

industry to the gross export earnings of the country is about 37% while it adds only 1-1.5% to the

gross import bill of the country. It is the only industry which is self reliant and complete in value

chain that is from raw material to the highest value added products that is garments or made ups.

As a corollary to this the growth and promotion of this industry has a significant influence on the

overall economic development of our country.

Sikkim Manipal University, Distance Education, Bangalore


INTRODUCTION TO HRM

HRM basically deals with personal factor or manpower. All the resources in the form of

money, materials, methods and machines would be rather insignificant without people or men.

“Human Resources are that part of management function which is primarily concerned with the

human relationship with in the organization. Therefore personal management is planning,

organizing, directing and controlling of the performance of those operative functions.

An organization is formed for the fulfillment of certain objectives like earning a desired

rate of profit on investment, exploitation of certain natural resources, development of a given

geographical area supplying to the public some essential goods or services. Machines, Materials,

Money and all other non-human resources are the tools and aids that man uses to achieve his

tasks. Thus, a proper selection of men, their tactful handling and proper management of an

organization.

However this is the most difficult of all the management tasks in an organization. Some

people also say that “management” means managing men tactfully. One often comes into contact

with HR department. For Example selection, placement, training, discipline, grievance handling,

wage administration, dismissal etc.

DEFINITION OF HRMEdward Flippo states:

“Human Resource Management” is concerned with planning, organizing, directing and

controlling of the procurement, development, compensation, integration, maintenance and

separation of human resource of the end that individual organization and social objective and

accomplished.

According to French:

“Human Resource Management” is the recruitment, selection, development, utilization and

accommodation to human resources by organization. Human Resources of an organization consist

of all individual regardless of their role, who are engaged in any of the organization activities.



IMPORTANCE OF HRMThe importance of human resource management is as fallows:

Social significance:-

Proper management of personnel’s enhances their dignity by satisfying their social needs.

1. Maintaining a balance between the jobs available and the jobseekers, according to the

qualification and needs.

2. Providing suitable and most productive employment which might bring them

psychological satisfaction.

3. Making maximum utilization of the resources in an effective manner.

Professional significance:-

By providing healthy working environment it promotes teamwork in the employees

1. Maintaining the dignity of the employee as a human being.

2. Providing maximum opportunities for personal development.

3. Maintaining healthy relationship between different work groups so that

work is effectively performed.

4. Correcting the errors of wrong posting and proper reallocation of work.

Significance for individual enterprises:-

It can help the organisation in accomplishing its goals.

1. Gearing right attitude among the employees through

effective motivation.

2. Utilizing effectively the available human resources.

3. Securing willing co-operation of the employees for

achieving goals of the enterprise and fulfilling their own social and other psychological

needs for reorganization, love, affection, belongingness, esteem and self-actualization.



HRM GOALS:-

Develop the individual to realize his potential as

an individual to the maximum extent.

Develop the individual’s capabilities to perform

his present job.

Develop and maintain a high motivation level of

the employees.

To strengthen superior subordinates relationship.

To strengthen team spirit among different units.

To promote inter-team collaborations.

To promote organization climate and

development

To meet competition and social obligation

To maintain moral in organization so that

employees remain motivated to carry on their jobs

To integrate individual goals with that of

organization goals

To attain the forgoing objective economically

and effectively

Human Resource Development in the organizational concept is a process by which the

employee of the organization are helped in a planned way to acquire or sharpen capabilities

required to perform various functions associated with their present or expected in future roles and

to discover and exploit their inner potentials to the professional well being of the employees.



INTRODUCTION TO WAGES AND SALARY ADMINISTRATION

WAGES: it is the remuneration paid by the employer to the employee for the service rendered by

the employee it may be hourly, daily and weekly.

CONCEPTS OF WAGES:

While evolving wage policy three concepts of wages namely,

1. minimum wages

2. fair wages

3. living wages

Minimum wage:

It is a wage, which provides not only for bare sustenance of life, but also for the

preservation of the efficiency of the worker.

Fair wage:

It is the wage above the minimum wage but below the living wage.

Living wage:

It is one which should enable the earner to provide for himself and his family not only

bare essential of food, clothing and shelter, but a measure of frugal comfort including

education for his children, protection against ill health, measure of insurance etc.

Nominal wage:

Nominal wage is the wage received expressed in terms of money received.



Real wage:

It is the equivalent to nominal wages minus compulsory deductions example taxes, ESI

etc.

WAGE POLICY IN INDIAWage policy refers to all systematic efforts of the government in relation to national wage

and salary system. It includes orders, legislations and so on to regulate the levels or structures of

wages and salaries with a view to achieving economic and social objectives of the government.

Specifically, the objectives of wage policy are:

1. To obtain for the workers a just share of the fruits of economic development.

2. To set minimum wages for workers whose bargaining position is weak

3. To bring about a more efficient allocation and utilization of human resources through

wage and salary differentials.

4. To bring abolish malpractices and abuses in wage and salary payments.

The first step towards the evolution of a wage policy was the enactment of the Payment of

Wages Act, 1936. The main objective of the Act is to prohibit any delay or withholding of wages

legitimately due to the employees. The next step was the passing of the Industrial Disputes Act,

1947, authorizing all the state governments to set up industrial tribunals which would look into

disputes relating to remuneration. Another notable development that led to the evolution of wage

policy was the enactment of the Minimum Wages Act, 1948. the purpose of the Act is the fixation

of minimum rates of wages to workers in sweated industries such as woolen, carpet making, flour

mills, tobacco manufacturing, oil mills, plantations, quarrying, mica, agriculture and the like. The

Act was amended several times to make it applicable to more and more industries. Then came the

Equal Remuneration Act, 1976, which prohibits discrimination in matters relating to remuneration

on the basis of religion, region or sex.

The Constitution of India committed the government to evolve a wage policy. Successive

five-year plans have also devoted necessary attention to the need for a wage policy. Following the

recommendations of the First and Second Plans, the Government of India constituted wage boards

for important industries in the country. A wage board is a tripartite body comprising



representations from the government, owners and employees. Technically speaking, a wage board

can only make recommendations and wage policies are normally implemented through

persuasion.

In spite of legislations, tribunals and boards, disparities in wages and salaries still persist.

Some of the disparities are:

1. Employees of MNCs are paid much more than their counterparts in host countries

for identical work.

2. Different industries have different wage and salary structures resulting in disparities in

remuneration for identical work.

3. Wide gaps exist between wages and salaries of employees in the organized sector

and of those in the unorganized sector, the latter earning much less than the former.

4. Differences exist between earnings of employees in the government sector and those in the

private sector.

5. Within the government sector, salary differences exist among employees of

different departments.

The disparities are glaring. If an illiterate supervisor in a leather processing unit can

earn Rs12000 plus per month and a half-yearly bonus, how much can a university professor

earn? Rs10000 and no bonus? If an auto driver can earn Rs3000 per month, how much

should a temporary lecturer in a college earn? Rs1200 per month? And remain temporary

forever. A sweeper in L&T is an income tax assessee but a BE or an MBBS degree holder

works for Rs800 per month in a small-scale unit of Rs1200 in a private nursing home,

respectively.

There are clerks in Mumbai who get nearly twice as much as a labour tribunal judge-the

man who arbitrates everyone’s wages and salaries. And a head clerk in the LIC gets, at the

maximum of his grade, more than half of the salary of a high court judge, not less.

In order to correct such disparities, the Government of India appointed a Committee

headed by Mr Bhootalingam in 1979. The brief given to the Committee was to suggest rational



and integrated wage policy covering all sectors of the economy. Soon after the Committee

submitted its report, there was hue any cry raised against the recommendations. It was criticized

as anti-labour and impracticable. The report was promptly and predictably shot down.

BASIC KINDS OF WAGE PLANThere are two kinds of wage and salary payment plans. Those under which remuneration

does not vary with output or the quality of output but depends on time consumed in performing

work known as time wage plans.

The second one is concerned with the output or some other measure of productivity during

a given period of time known as piece or output wage plan.

Balance or debt methods, is a combination of time and piece rates.

ELEMENTS OR INGREDIENTS OF A GOOD WAGE PLAN1. It should be easily understandable

2. It should be capable of every compensation

3. It should be capable of effectively motivating the employees

4. It should provide remuneration to employees

5. It should be relatively stable.

SALARY

It is the compensation paid to the indirect labour in the form of cash to supervisors,

managers and supporting staff like office assistance, clerks etc, it refers to the monthly rate of

pay. Wages and salaries are subject to annual increments.

COMPENSATION



Compensation is any form of payment given to employees in exchange for work they

perform. Wages and salaries are compensation paid in the form cash. Compensation consists of

wages, salaries, allowances, bonus, overtime pay and social security benefits.

OBJECTIVES OF COMPENSATION POLICY

1. To recognize the value of all jobs in relation to each other within the company

2. To take account of wage rates paid by companies of similar size, product and philosophy

3. To ensure stable earnings

4. To enable individuals to reach their full earning potential as far as is reasonably

practicable

5. To ensure employee’s share in the company’s prosperity as a result of increasing

efficiency.

INCENTIVES

Incentives are monetary benefits paid to the employees in recognition of their outstanding

performance they defined as variable rewards granted according to variations in achievement of

specific results.

ADMINISTRATION OF WAGES AND SALARIES

Wages and Salary Administration should be controlled by some proper agency. This

responsibility may be entrusted to the personnel department or the general company organization

or to some job executive. It is usually entrusted to a committee composed of high ranking

executives. The major functions of such committee are:

1. Approval and/or recommendations to management on job evaluation methods and

findings;



2. Review and Recommendations of basic wages and salary structures;

3. Help in the formulation of wage policies

4. Coordination and review of relative departmental rates to ensure conformity and;

5. Review of budget estimates for wage and salary adjustments and increases

This committee should be supported by the advice of the technical staff. Such staff

committees may be for evaluation, job description, merit rating, wage and salary surveys in an

industry and for a review of present wage rate procedure and policies. The personnel department

reviews recommendation to ensure compliance with established rules of administration.

PRINCIPLES OF WAGE AND SALARY ADMINISTRATION:

The generally accepted principles governing the fixation of wages and salary are:

There should be definite plan to ensure that differences in pay for jobs are based upon

variations in job or working conditions, mental and physical requirements;

The general level of wages and salaries should be reasonably in line with that prevailing

in labour market;

The plan should carefully distinguished between jobs and employees;

Equal pay for equal wok;

An equitable practice should be adopted for the recognition of individual differences;

There should be a clearly established procedure for hearing and adjusting wage

complaints;

The employees and trade unions should be informed about the procedure used to establish

wage rates;

The wage should be sufficient to ensure for the worker and his family reasonable standard

of living;

The wage and salary structure should be flexible;

Prompt and current payment of the dues of the employees;

For revision of wages, a wage committee should always be preferred to the individual

judgement;

The wage and salary payments must fulfill a wide variety of human needs, including the

need for self-actualization.



FACTORS INFLUENCING WAGE AND SALARY STRUCTURE AND

ADMINISTRATION

The wage policy are different organizations vary some what. A sound wage policy is to

adopt a job evaluation programme in order to establish fair differentials in wages based upon

differences in job contents. Besides, the basic factors provided by a job description and job

evaluation, those that are usually taken into consideration for wage and salary administration are:

1. The organization’s ability to pay:

Wage increases should be given by those organizations which can afford them. Companies

that have good sales and therefore high profits tend to pay higher wages than those which running

at a loss or earning low profits. All employers’ irrespective of profits or losses, must pay not less

than their competitors and need pay no more if they wish to attract and keep workers.

2. Supply and demand of labour:

The labour market conditions or supply and demand forces operate at the national,

regional and local levels and determine organizational wage structure and level. If the demand for

certain skill is high and the supply is low, the result is a rise in the price to be paid for the skills.

3. Prevailing market rate:

An organization compensation policy generally tends to conform to the wage rates

payable by the industry and the community.

4. Cost of living:

The cost of living pay criterion calls for pay adjustments based on increases or decreases

in an acceptable cost of living index.

5. Trade Union’s bargain power:



Trade unions do affect rate of wages. Stronger and more powerful the trade union, the

higher the wages.

6. The living wage:

The living wage means that wages should be adequate to enable an employee to maintain

himself and his family at a reasonable level of existence.

7.Productivity:

Productivity is another criterion and is measures in terms of output per man-hour. It is not

due to labour efforts alone. Technological improvements, better organization and management,

the development of better methods of production by labour and management, greater ingenuity

are all responsible for increase in production.

8. Job requirements:

More difficult the job, the higher the wages are paid. Jobs are graded according to the

relative skill, effort, responsibility and job conditions required.

9. Managerial attitudes:

The managerial attitudes have a decisive influence on the wage structure and wage level

since judgement is exercised in many areas of wage and salary administration.

10. Psychological and Social factors:

These determine in a significant measure how hard a person will work for the

compensation received or what pressures he will exest to get his compensation increased.

WAGES AND SALARY ADMINISRATION IN SONA SYNTHETICS

Wages and salary administration is the establishment and implementation of sound

policies and practices of employee compensation. It includes areas like wage structure, wage

payments, supplementary payments, surveys of wage and salary etc.



Here, an attempt is made to study the wages and salary administration in Sona Synthetics

and the areas includes in wages and salary administration. The data is collected and the data has

been analyzed, interpretated and tabulated. Here the data is collected through questionnaire.

WAGE SRUCTURE AT SONA SYNTHETICS

The wage structure is comprised of job of approximately equal difficulty or importance as

determined by job evaluation.

CATEGORIES OF WORKERS AT SONA SYNTHETICS

Skilled

Semi-skilled

Unskilled

Payments are made according to nature of work, responsibility, qualification and experience.

These are difficult categories of employees according to the nature of production. There

are spinning sider, Winding sider, Open End sider, Simplex sider, Blow Room tenter, Carding

tenter, Comber, Drawing tenter, Doffers, Helpers etc. They are classified as skilled, semi-skilled

and unskilled.

The employees have been covered under all the aspects such as:

01. Payment of Wages Act,

02. Payment of Bonus Act,

03. Employee’s State Insurance Act,

04. Provident Fund Act,

05. Minimum Wages Act.

WAGE STRUCTURE FOR WORKERS / LABOURERS

01. Highly skilled

Spinning sider

Winding sider

Open End sider



Simplex sider

02. Skilled / Semi-skilled

Blow room tenter

Carding tenter

Comber

Drawing

03. Unskilled

Doffers

Helpers

Dearness Allowances

Payment of DA will be subject to a minimum of Rs0.31 per point. The points are to be

given by Shimla Government. These points will be variate as per the variation of the value of

Onions in Shimla. The number of points in the month of January 2010- February 2010 is

calculated at 3935 points. So that, the total DA to be paid in the month of January 2010-

February 2010 is Rs1220.

Increment

There is no standard date for increment to all the levels. At Sona Synthetics, the levels are:

01. Bottom level

02. Middle level

03. Top level.

At the bottom level, the categories of workers are as follows:

Skilled

Semi-skilled

Unskilled

Middle level consists of categories as:

Supervisors



Clerks

Officers.

Top level consists of categories as:

Managers

General manager

Spinning manager

Deputy spinning manager

Hence, the increment is made annually.

Probation

Standard period of probation, both in cases of appointments and promotions are as

follows:

Executives One Year

Workmen Six months

Probation may be extended at the discretion of the competent authority.

Night shift Allowance

Workmen detailed to work in 2nd and 3rd shifts are eligible for night shift allowance at

following rates.

2nd Shift Rs8/- per shift

3rd Shift Rs12/- per shift

Split Shift Allowance

Workmen in Group-G and below in Canteen, transportation and technical departments

who are paid an allowance of Rs10/- per day of attendance

Service Weightage Pay

Workmen who were on the regular rolls of the company and who continued to be on rolls

are paid service weightage pay.



Canteen Allowance

Employees in offices where the facility of subsidized canteens have been discontinued are

paid canteen allowance at Rs12/- per day of attendance, limited to Rs350 per month canteen

services are available at such offices on payment of actual charges.

Washing Allowance

Workmen in the categories of drivers, dispatch riders, cooks and waiters/ware washers are

paid washing allowance at the rate of Rs48/- per month. All other employees (including officers)

are paid washing allowance at Rs12 per month.

Attendance Bonus

Every workmen are entitled to get attendance bonus at the rate of one day’s basic pay as

on 31st December of the year, for each day of unutilized casual leave, subject to maximum of 10

days in a calendar year. They should have worked for the prescribed number of days in a year to

become eligible for bonus.

Conveyance Charges

Conveyance charges incurred by employees on tour on local travel at the temporary duty

station and also for journeys between Railway station/Airport/Air Booking office or vice versa,

where the company vehicle is not used for such purposes, will be reimbursed at the rates

indicated under ‘Road’.

Journey DA: For the journey period (by modes other than Air), Ordinary rates of DA as

for stay in Guest House above would be admissible.

Regulation of DA: Full DA will be granted for each completed period of 24 hours absence

reckoned from the time of departure from the head quarters to the time of return. DA will be

admissible at the following rates for fractions of 24 hours:

1. Less than 6 hours 30%

2. More than 6 hours but less than 12 hours 50%

3. More than 12 hours Full



Turn out Allowance

Watch and ward and Fire Brigade personnel are paid this allowance at the rate of Rs50 per

month, subject to certification of their good turnout while on duty during the month by the

competent authority.

Lunch/Meal Allowances

Workers who are sent outside the factory premises on office work for more than four

hours in a day including the lunch interval are eligible for Lunch/Meal allowance at the rate of

Rs15 per day subject to a maximum of Rs150 per month.

Canteen Subsidy

Employees working at outstation Bases and other offices of the company where

subsidized canteen facilities are not being provided are eligible for canteen subsidy at the rate of

Rs12 per day of attendance, subject to a maximum of Rs350 per month.

Rent Recovery For Hostel Accommodation

Rent from Officers/Management trainers/Executives trainers who are allotted Hostel

Accommodation is affected at a flat rate.

Daily Allowance

For journey period, an employee is entitled to one Daily Allowance for himself and each

member of his family who is 12 years and above age, for every 24 hours of Journey time, at the

Ordinary Guest House rates of DA. Members of the family below the age of 12 years will be

allowed half Daily Allowance. For journey period of less than 24 hours, DA will be admissible

as indicated under ‘Regulation of D’.

Special allowance to blind and orthopadically handicapped employees

Rs100/- per month Employees who are availing Transport facilities will have to pay the

normal Transport Recovery.



In addition to the above Rs100/- per month, employees who are not availing Transport

facilities will be paid bicycle Allowance or Conveyance Reimbursement as the case may be,

depending on their eligibility for the same.

WAGE DIFFERENTIALS:

Wage differ is different employments or occupations, industries and locations also

between persons in the same employment or grade.

Wage differentials may be;

Occupational differentials or differentials based on skill

Inter-firm differentials

Inter-area or regional differentials

Inter-industry differentials

Differentials based on sex.

IMPORTANCE OF WAGE DIFFERENTIALS:

Wage differentials have a great economic and social significance, for they are directly

related to the allocation of the economic resources of a country, including manpower, growth of

the national income and the pace of economic development. Social Welfare activity depends in a

large measure on such wage differentials as well;

Cause labour to be allocated among different occupations, industries and geographical

areas in the economy is such as manner as to maximize the national product

Enable full employment of the resources of the economy to be attached and

Facilities the most desirable rate of economic progress.



RESEARCH DESIGN

INTRODUCTION:

This project report has been prepared on “Wages and Salary Administration” in Sona

Synthetics, Bangalore.

In this project, the following areas are covered.

Wage payments

Rules of wage administration

Supplementary payments

Incentive schemes

Advance and subsidies

Insurance benefits

TITLE OF THE STUDY:

Theoretically whatever we study in management course can be easily accumulated and

understood when the theoretical part is practically used. When every theoretical knowledge is put into

practical, then their problem, solutions, perfections, experience and clear knowledge about the subject

can be gained.

As a management student I am undertaking project report namely on wages and salary

administration since this plays a very prominent role in every type of organization.

STATEMENT OF THE PROBLEM:



The principle component of any organization is its human resources or people at work. There

should be an effective co-ordination and utilization of these human resources to attain the objective and

goals of an organization.

From time immemorial, people at work have been exploited without suitable compensation,

rewards or wages/salary. But through passing time, the situation has changed with the help of laws and

policies which sees to it that the workers get the compensation for their work.

People at work comprise a large number of individuals of different age, character, sex and self

needs. People do what they do to satisfy their needs.

Therefore the needs of the employees should be analysed, interpreted so that the reward

can be individually designed to satisfy administration the worker get dissatisfied, due to which

social hazards-like strikes, lock-outs, riots occur. A sound wage and salary administration

motivates people satisfies them. This is a study of the prevailing wage and salary administration

at Sona synthetics, Bangalore.

OBJECTIVES OF THE STUDY:

To study the wage and salary structure at Sona synthetics.

To analyze the impact of wage and salary on employee’s performance.

To elicit information from employee as to find out their perception regarding remuneration

package in the company.

To know the ways and means to popularize the wage and salary system.

To obtain suggestion from the employee regarding wages, salaries, incentives, advances and

terminal / insurance benefits.

To suggest the organization to improve the remuneration system.

SCOPE OF THE STUDY:



The scope of study is subject to various elements of limitations. The study covers wage

and salary structure for both officers and workers including wage payments, rules of wage

administration, supplementary payments, incentive schemes, advances and subsidies, insurance

benefits etc. The sample of the study is restricted to 50 employees in different departments in

Sona Synthetics.

RESEARCH METHODOLOGY:

“A research design is the arrangement of conditions for collection and analysis of data in a

manner that aims to combine relevance to the research purpose with economy in procedure” as

stated by Selltiz, Jahoda, Destch and Cook.

In this study, the research design used here is of descriptive/diagnostic type. Descriptive studies

are the ones that aim at describing the characteristics of a group.

In descriptive type of study, a researcher may be concerned with the estimating proportion of

people in a population. Here, as the wage and salary drawn by different section of working class has to

be studied descriptive/diagnostic method has been adopted.

The trunk of research design is the decisions in respect of the data to be collected, the sample to

be selected, and the manner in which the collected data are to be organized.

Sources of Data Collection:

Sources of information are of two types, viz.

1. Primary data and

2. Secondary data

Primary data is one where information is collected personally and secondary data is where the

information sources are; personal documents, public documents, Government sources, Non-Government

sources etc.



The main tools to collect Primary data are

1. Questionnaire

2. Interview

3. Observation

4. Schedule Method

In this study of wage and salary administration the data collection are through both primary and

secondary.

Primary data was obtained with the help of employees through questionnaires covering the

subject of matter of the study.

The secondary data was obtained from company records.

Technique of data collection:

Company records

Company publications

Questionnaire for employees.

Plan of analysis:

Comparative analysis between the earlier and update pay structure.

Analysis based on employee opinion.

Sampling Procedure:

A sample can afford an estimate of the characteristics of the population in a much shorter time

than would be possible otherwise it is time saving.

Cluster Random Sampling Method is used to collect the information. In this the population is

first divided into strata and then a simple random sample is taken from each of the strata.



This study is on wage and salary administration. So the worker’s population is divided into three

levels, viz., low level, middle level and top level. Then, from each strata the sample is taken randomly

and then are brought together to form the total sample.

Sampling Size:

The total number of samples selected for the study is 50 respondents (workers in the

organization) from different departments.

Tools and techniques used for analysis:

I. Tools : Tables, Charts and Graphs

II. Techniques : Percentage Analysis

Percentage analysis:

Percentage refers to a special kind of ratio. Percentages are used in making comparison between

two or more series of data. Percentage is used to describe relative terms the distribution of two or more

series of data.

No. of respondentsPercentage of respondents = --------------------------------- X 100

Total respondents

LIMTITATION OF THE STUDY:

During the research the following limitations were expressed.

The study was time bound i.e., the research was supposed to be complete within a prescribed

period of time.

During the survey it was difficult to trace the employees in such a large organization.

It was so difficult in adjusting to the changing shifts of the employees.

Regarding the activities conducted by the organization only theoretical knowledge could be

attracted.

As some employees were not good at English it was difficult to communicate and translate

the questions to them.

CHAPTER SCHEME:



Chapter 1: INTRODUCTION

Chapter 2: REASEARCH DESIGN

Chapter 3: INDUSTRY \ COMPANY PROFILE

Chapter 4: ANALYSIS AND INTERPRETATION

Chapter 5: SUMMARY OF FINDINGS, SUGGESTIONS AND CONCLUSIONS

APPENDICE AND ANNEXURE

BIBLIOGRAPHY



COMPANY PROFILE

INTRODUCTION:

The multi-million dollar Sona Valliappa Group began with Valliappa Textiles, a company that

supported self reliance to pioneer the textile industry for the last six decades in India. From textiles, the

Group has diversified into interests in commodities exports, construction and now, software

development. Its Sona Towers is the first software technological park in India, developing and deploying

a diverse suite of world class software services…

They are in the Southern part of Peninsula India, with their headquarters in Bangalore. They

have four spinning mills, which are each dedicated to spinning different materials, viz., Cotton,

Poly/Cotton, Poly/Viscose and 100% Viscose and 100% Polyester.

The Groups Textile Involvement is goes back 6 decades, started in the year 1938 as now grown

many folds with the Head Quarters at Bangalore and the Mills at Tamil Nadu, Karnataka. The group has

presently at capacity of 65000 spindles. From the small beginning he group has ventured in to many

areas in Textiles and the forward integration. It has ventured in to:

Spinning

Knitting,

Weaving,

Value Added Yarns,

Processing,

Garments

The Group textile mills are scientifically designed with emphasis to Structure and Architecture.



HISTORICAL BACK GROUND

Leaders carve their own pathways. This best describes Mr. C. Valliappa, the Managing Director

of Sona Valliappa Group., Bangalore and Sona Synthetics, Bangalore.

He has been instrumental in spinning other success stories too. Like Sree Rajendra Mills Ltd.,

Spin well Valliappa Private Ltd., Sree Nithyakalyani Textiles Ltd. and Sona Rajendra Spinners Pvt. Ltd.,

where Mr. C. Valliappa is The Director.

The Indian textile industry has an icon to idolize. Mr. C. Valliappa has sown the seeds of

prosperity in quite a few flourishing organizations. Valliappa Software Technological Park Pvt. Ltd.,

Sree Rajarajeshwari Industries Pvt. Ltd., Karnataka Textile Mills Association and Employers Federation

of Southern India.

Noteworthy associations today also bear the mark of Mr. C. Valliappa. He has also been the

brain behind quite a few. Greater Mysore Chambers of Industry–Bangalore, Federation of Karnataka

Chamber of Commerce and Industry–Bangalore, Bangalore Management Association, The Southern

India Mills Association-Coimbatore, The Indian Cotton Mills Federation-Bombay, The Synthetic and

Rayon Textile Export Promotion Council, Bombay, The South India Textile Research Association,

Coimbatore, The Karnataka State Industrial Investment and Development Corporation Ltd.-Bangalore.

Tomorrow is around the corner.

ORGANISATIONAL GROWTH OF SONA SYNTHETICS

Services:

Diversification underlines growth. The Sona Group has an established presence in plantations,

constructions, investments, software and textile.

Pepper, cardamom and coffee come under the wing of our plantations division. While our

construction company has been catering to the real estate needs of South India, especially Bangalore,

This also happens to be India’s IT centre where top software companies and exporters are setting up

operations. Valliappa has been catering to their needs by offering instant start and uplink facilities.



Headquartered in South India Valliappa Textiles is today an international name. 50% of its

produce goes to countries like Belgium, Italy, Germany, Portugal, Bangladesh, Sri Lanka, Malaysia,

Australia, South Korea, etc.

Sree Valliappa Investments has earned mileage in terms of trust and faith of the people it

services. In fact, we are possible for quite a few futures. Diversity adds new dimension to Valliappa and

a new meaning to lives.

Opportunities:

Philosophy of their joint ventures, The Sona valliappa Group over the years has matured into a

group which imbibes certain core values. It believes in core competences, corporate government, and

integrity and in building societies establishing long standing relationships.

Arising from these core values, philosophy of forming partnership and joint ventures, over the

years, they have built up core competences in building, setting up and running large production centers.

Each of their normal business units, sizes from about 200-500 people. All centers are aesthetically built.

They look for partnership and joint ventures globally who have there core competence with

technology and markets. India being the market with nearly one billion people having the largest number

of middle class families, nearly 400 million. It also has 80000 engineering students graduating out every

year. They have in their troop educated institutions established with over four decades of experience,

educating quality students.

Together, they will build an organization imbibing the core strengths of technology, production,

market and management.



Commitments:

Awareness and responsibility for the environment come naturally to some.

The Sona Group is committed to uplifting the community by offering training, consultancy and

other related services. The Thiagarajar Polytechnic was set up to offer diploma and post diploma

courses and part-time courses according to the exact needs of the industry, business and community.

Through state-of-the-art equipment, qualified and trained faculties and excellent infrastructure facilities.

Established in August 1958, the polytechnic caters to fields like textiles, computers, and civil,

mechanical, electrical and electronic engineering. The polytechnic is a forerunner in the field of

technical education and will continue to tread the path of excellence.

In fact, this is not just a belief, but a commitment on an individual level, for the benefit of the

society.

VISION:

Their vision is to be a global player in the textiles business and by the tear 2008, to have about

10000 employees. This vision will be achieved with a highly skilled workforce, who is trained to

achieve high quality, in their support services.

MISSION:

Sona group’s mission is to be a world class company offering quality products with high level

accuracy to the delight of customers.

OBJECTIVES:

To ensure availability of Total Quality People to meet the organizational Goals and Objectives

To have a continuous improvement in knowledge, skill and competence (Managerial Behavioral

and Technical)

To promote a Culture of Achievement and Excellence with emphasis on Integrity, Credibility

and Quality

To maintain a motivated workforce through empowerment of individual and Team-building

To enhance organizational learning



To play a pivotal role directly and significantly to enhance productivity, profitability and

improve the Quality of work life.

STRATEGY:

To be in total alignment with corporate strategy

Maintain Human Resource at optimum level to meet the objectives and goals of the company

Be competent in Mapping, Analysis and Up-gradation of knowledge and skills including

Training, Re-training Multi-skill etc

Cultivate leadership with shared Vision at various levels in the organization

Focus on development of core competence in High-Tech areas

Build Cross-functional Teams

Create awareness of Mission, Values and Organizational Goals through and the company

PRODUCTS AND ITS FEATURES:

Product Range (Yarn Section)

This section will have two product categories:

1. Knitting Yarns

2. Woven Yarns

Knitting Yarns

To manufacture these yarns state of the art automatic Schlafhorst, Rieter, Lakshmi Rieter

machines are used. All yarns are waxed, twisted and steamed with low torsion to import softness to the

yarn.

As the feel is most important, we use the best cotton in SHANKAR-4/6 and the end results is of

LOW CV% of 8% to 9% and low Imperfections most counts below 100. All Hosiery yarns are Auto-

leveled and Auto-coned.

The counts offered for knitting are as follows:-

Ne. 8/1, 10/1 and 12/1 for fleece (Brushing)



Ne 20/1, 24/1, 26/1, 30/1, 32/1, 40/1, 60/1, 60/2

100% Cotton Polyester, Viscose, Polyester/Cotton and Polyester/Viscose. If required the Group can

also Produce KNITTED FABRICS from its Knitting Division.

Woven Yarns

This product category is further differentiated into two more subdivisions

1. Open End Spun Yarn

2. Ring Spun Yarn

The blends that are available as classified under 1) 100% Cotton, 2) 100% Polyester, 3) 100%

Viscose, 4) Polyester/Cotton, 5) Polyester/Viscose, 6) Viscose/Cotton.

COUNTS OFFERED IN WOVEN YARNS

MATERIAL Open End Spun yarn in Ne Ring Spun Yarn in Ne

100% Cotton 6/1, 7/1, 10/1,

12/1, 14/1, 16/1,

20/1, 24/1, 26/1,

10/3, 12/3, 20/2, 24/2

12/2, 14/2, 20/1, 20/2, 23/1,

23/2, 24/1, 30/1, 30/2, 36/2,

40/1, 40/2, 60/1, 60/2, 80/1,

80/2, 84/2, 90/1, 94/2, 100/1,

100/2, 100/2-HT (High Twist)

100% Polyester 6/1, 8/1, 10/1,

14/1, 18/1, 20/1,

12/3, 24/3

20/1, 30/1, 30/2, 40/2, 50/2,

80/1

100% Viscose 12/1, 16/2, 20/1,

2/20

24/1, 30/1, 30/2, 40/1, 40/2

Polyester/Cotton

Mix.Ratio: 65/35, 52/48

and 35/65

6/1, 8/1, 9/1, 10/1,

12/1, 14/1, 16/1,

20/1, 22/1

20/1, 24/1, 30/1, 30/2, 36/2,

40/1, 40/2, 50/2, 56/2, 60/1,

60/2, 66/1, 80/2



Polyester/Viscose

Mix.Ratio: 65/35, 52/48

and 35/65

6/1, 8/1, 9/1, 10/1,

12/1, 14/1, 16/1,

20/1, 22/1

20/1, 24/1, 30/1, 30/2, 36/2,

40/1, 45/1, 40/2, 60/1, 60/2,

80/2

Viscose/Cotton

Mix.Ratio: 55/45 and

65/35

20/1 30/1, 40/1

If required the Group can also produce WOVEN FABRICS in its Woven Division.

Yarns

They put in their best to give the best. The raw material they use of the finest quality available.

It involves intensive pre-cleaning, removing foreign fibers and other contamination normally found in

cotton. Ultra-violet light identifies pollutants that the naked eye can’t see which are then removed and

sent for micro spinning to determine the standard and quality of yarn. And no, they aren’t spinning a

yarn, when they are talking of all this quality!

Basically, yarns come in two varieties. Knitting/hosiery and woven. All shirts, undergarments,

nightwear, swimwear are made with Knitted yarn. Woven yarn has a much wider product base; denim,

superfine Indian saris, sheeting, suiting, shirting, dhotis, etc. That’s because woven yarns are blended.

Gassed Mercerized Yarns are the favorites of most of customers.

Sewing Threads

Their sewing threads are also known as Shakti Threads, made from 100% Super High Tenacity

Polyester that even the toughest stitching applications can’t beat. What makes them so strong is their

uniformity in every dimension. Each and every centimeter of yarn spun is weighed by the

microprocessor and if incorrect, automatically adjusted. State-of-the art European Autolevelled

Machines ensure millimeter to millimeter uniformity in length and strength!

Moreover, Shakti Threads was a pioneering event in India! It was the first in India to use

knotless yarn for Sewing Thread (spliced yarn). The latest Automatic Schlafhorst Cone Winders equip



sensing and cutting away minute faults to improve stitching efficiency. Our Two-For-One Twisters

(TFO) lend Valliappa a distinction of sorts. It is one of the very few in India to offer this kind of

sophisticated twisting everything from dyeing and finishing of polyester threads to mercerizing, gassing

and dyeing of cotton threads.

Industrial threads

Bheem Shakthi Industrial Threads are yarns eighth average resultant counts in twisting ranging

from Ne 0.7 to Ne 7. Both single ply as well as corded/cable can be twisted. Whether it is cotton,

polyester, viscose, blend of polyesters and cotton or blend of polyesters and viscose. Their state-of-the-

art equipment does the needful. P.S. Metler for Assembly winding up to 12 Ends/Ply, Volkman

Machines for Two for One twister (TFO) and Weller heavy double with Cop weights of 2 kilos.

Purity is strengthening. A special manufacturing unit is reserved solely for Bheem Shakthi

Industrial Threads. This leaves no room for contamination. Which is why their threads are extremely

strong and ideal for adverse industrial canvas, belting, conveyor belts, tyre cord, filter fabric, shoe

stitching and construction fabrics.

Stretch Yarns

The world today is moving to a fitness and fashion oriented. This has brought an entire

evolution, in the way yarns and fabrics are made today.

Body fit yarns and stretch yarns facilitate snug as well as easy body movement. These yarns

known as elasthane yarns like Lycra and Dolstrone.

These yarns and fabrics make ideal sports and leisure wear as they wear well and are cool and

comfortable as well.

These yarns are made in two different processes:

1. Core spinning Method: In this method, the Elastane Core is introduced in the Spinning Process.

This is ideally suited for knitting yarns and in certain weaving applications.

2. Core Twisted Yarns: These yarns are suites for a broader spectrum of usage from denim to

socks and suiting to blouses. They are used as weft stretch and warp stretch.



These yarns are offers from Joint Venture with Worldtex/Filix a world leader in elastic yarns and

narrow elastic fabrics.

Worldtex has in its group Filix a premier stretch yarn manufacturer in France.

KNITS AND WOVENS

Cool Knitted Fabrics from Sona Valliappa Group

Valliappa prides itself in using the best available machinery, like the Mayer & Cie. Knitting

machines that are fitted with bare Lycra attachments.

They believe though that quality goes much beyond machinery. It’s down to the very raw

material we use which is why Valliappa manufacturers the very yarn itself. Further, stringent quality

inspections of yarn are carried out in the pre-knitting stage. Sophisticated drying technology then gives

our products a controlled shrinkage guarantee.

Suga is India means comfort. That is what Sona Valliappa Group has been providing to

customers and people at large, providing the comfort to customers from the 1930’s.

A vertical integration, The SONA GROUP enters into the field of knitting two decades back.

They identify Mayer & Cie and Terrot machines, to be the machines would knit future with. From a

small beginning, now can offer fabrics in:

Single Jersey

Polo PK

Rib

Interlock

Fleece

Waffles

Lush/Terry

Jacquard

All the above fabric’s can be supplied in various other man made fibers like polyester, viscource, silk

etc., and blends of poly cotton/poly viscose, viscorce-cotton. All the above fabrics are also available

with elasternomo (Lycra).Can also offer:



Yarn-dyed fabrics (in hthp Wessel, azo free, color fasters guaranteed)

Fabric-dyed (soft flow, color fasteners guaranteed, compacted and shrinkage guaranteed)

Body Size fabrics

Wide Width fabrics

Printed rolls (Rotary printed up to 8 colors with pigment and reactive printing)

Packing:

The fabrics are offered either in tubular form, or they can be cut, slit and gummed.

Their normal roll size is 20 to 30 kilos per roll. And can also pack in jumbo rolls, ready to print up to

100 kilos.

Flat knitting:

With growing needs of the T-shirt industry, they have ventured into flat knitting, were we

produce collars and cuffs (plains and jacquards for basic T-shirts and for high fashioned, high value

garments. They have the best machines to produce this Shima shakai. This machine can produce many

designs up 20 different jacquard patterns including BIRD’S EYE, GANGA, HAPPY, SUGA, BIRD’S

EYE WITH HARRING BONE TIPPING, apart from basic.

Woven Fabrics:

From here, weaving division takes over; weaving top-of-line yarns with the help of some of the

most reputed machinery in the world. Our wide-width looms are the most sorts after, world-wide i.e., on

Seltzer type wide width looms up to 118” (also possible split) with Tuck-in Selvedge with a fabric

weight of up to 400 gms/sq.mtr and also Ruti-C looms with 63”, 93” and 104” fabric.

It only follows, that products are approved after a meticulously close scrutiny in the finished

fabric stage.

Woven Range

The range includes premium quality cottons…loom state grey as well as finished fabrics.

Superfine Grey Fabrics for Shirting.

Superfine Sheeting in loom state grey in widths up to 130”.

Superfine Shirting-Pin Point Oxfords, Poplins and Twills using 80/2 and 100/2 C yarn.



Superfine Sheeting up to 400 Thread Count in widths up to 130”.

Specialized Dobby Patterns in Viscose Filaments on Cotton.

Superfine Voiles up to 320 cms grey width.

Printed Satins, Poplins, Twills, Satins and Lawn Fabrics.

Types of Woven Fabric

Drill is a strong twilled cotton fabric, used in men’s and women’s.

Duck in a heavy, durable tightly woven fabric. Heavy weight drill is used in awnings, tents, etc. Lighter

duck is used in summer clothing.

Flannel cotton is plain or twill weave with a slight nap on one or both sides.

Flannelette is a soft cotton fabric with a nap on one side.

Oxford is shirting fabric with a lustrous, soft finish. It is characterized with narrow stripes and can be

woven in plain or basket weave. Also a term used for wool fabric that has black and white fibers. Poplin

is a plain weave fabric with a cross-wise rib. Warp Weft Read Pick Weave Type Width

Poly/Cotton 52/48 30 * 30 76 68 63”, 67”, 104”, 114

,, ,, ,, 30 * 30 76 56 63”, 104”, 114”

,, ,, ,, 40 * 40 110 90 ,, ,, ,

Poly/Cotton 65/35 20 * 20 94 60 2/1 ,,

,, ,, ,,, 14 * 14 82 60 2/1 63”

,, ,, ,, 30 * 30 133 72 2/1 63”

,, ,, ,, 16 * 12 108 56 3/1 63”

,, ,, ,, 12/2 * 7 55 42 63”

,, ,, ,, 12/2 * 12/2 55 42 63”

Grey fabric on rolls

Bleached on tubes

Bleached fabrics on open width (cut, slit and gummed)

Dyed and finished in tubular or open and slit

Quality

Quality Policy:

Quality Policy of Sona Group shall be to spin and supply yarns of excellent quality to the total

satisfaction of its customers.



This shall be achieved through continuous improvements in processes with the involvement of

employees, at all levels of the organization.

Main Features:

1. Intensive training to operators in work practices and involves them in activities concerning quality

and growth.

2. To develop and establish documented quality system to translate and implement the quality policy in

all activities of the organization.

3. To develop and maintain mutually beneficial relationship with business associates to continuously

improve our products.

4. To conduct our business in a manner that is socially acceptable and commands respect, social

responsibility is shouldered by complying with the laws of the state. Conventions of the society and

by maintaining a safe, clean and healthy environment.

5. To achieve and sustain reputation for quality.

Testing Equipments Used:

Testing Done for Fibers.

Fiber fineness Tester for Micronaire,

Shirley Trash Analyzer for Trash content in material.

Uster fibro graph for length testing designs.

Product development-Technicians have done a lot of R&D on silk knitting, and now we also have silk

knitted fabric in knitted range.

Inspection, Testing and Quality:

They have the eye for quality right from the yarn stage and fabrics are also put through the same

quality awareness.

Quality control and standards followed.

Humidity controlled atmosphere – relative humidity (r.h.) are maintained.

Steamed-yarns – to standardized twist and to reduce the snarling.

Gsm – grams per square meter are checked systematically and controlled.



Computers – the facilities of special soft ware to indicate number’s of defects per role along with min

and max permitted limits.

Production – are also computerized to monitor the day to day production.

Foremen training – the men and women involved in the shop floor are trained periodically, with modern

methods and ideas to identify all quality parameters.

Raw Materials

Stemming from the fact that we are basically spinners, they pay a paramount attention in

choosing yarns strictly. They look for appearance, feel for comfort and scout for the quality. They

strive for all this so that we may have a SUGA Fabric.

They scrutinize the yarn with uster testers to find out how many faults/impurities the yarn

may have. They also check the uster classimat for even a minuscule aberration that may impede

the SUGAM of our Customers. They go into the minute details as analyze the yarns across the

diameter and length. They also believe that the human eye and the black boards are tested for the

visual appearance. Through experience, we have also discovered that there could be hidden

defects, which aren’t visible to the naked eye. So they have special ultra violet equipments which

magnify and intensify, in the ultra violet light and showing the contamination in the fabric. Each

and every centimeter of the fabric is inspected before being packed.

Their people are trained to look at yarns and fabrics, with an eye for detailed. They inculcate in

them the character of being a critic, so that they may evaluate and be critical about the yarns and fabrics,

and the way of doing things – to evolve what the Japanese put it Kaiezian.

The spectrum of the fabrics range from god given cool cottons to mixing manmade with god

made and generating Poly/Cotton, Poly/Viscose, Viscose/Cotton, 100% Viscose and 100% Polyester

Fabrics.

The time and work spent on nearly a decade has helped them to associate continuously

with some of the leading brands in the world and this has in turn made their processed fabrics

very well accepted round the globe. Their Endeavour is to produce quality knits using yarns

which are proven tested, using machines which have stood the test of time, using testing methods

from which they have learnt and improvised over the years to give Suga Fabrics.



DATA ANALYSIS AND INTERPRETATION

TABLE NO. 1:

TABLE SHOWING AGE GROUP OF THE EMPLOYEE

Age Group No. of Employees Percentage

20 - 30

30 – 40

40 – 50

50- 60

04

27

14

05

8

54

28

10

Total 50 100

Analysis:

Out of the total respondents, 80% of them belong to age group of 21-30 and other 54% of

age group belongs to 31-40 and 28% of respondents belong to 40-50 and the remaining 10%

belong to group of 51-60.



GRAPH No. 1:

Interpretation:

From the above graph it is clear that most of the respondents belong to the age group of

31-40 and 41-50. It shows that majority of the employees in the company are in the age group of

31 to 50 years.



TABLE No.2:

TABLE SHOWING THE DEPARTMENT IN WHICH THE

RESPONDENTS ARE WORKING

SL. No. Department No. of Employers Percentage

1.

2.

3.

4.

5.

6.

Winding

Spinning

Technical

Open End

Preparatory

Others

10

20

05

04

05

06

20

40

10

08

10

12

Analysis:

The above table indicates 20% of respondents working in winding department, 40% of

respondents are working in spinning department, 10% of respondents are working in O.E

department, 5% are in preparatory and remaining 12% of respondents are working other that is

Ceuding, Blow room, Powerhouse etc.



GRAPH No. 2:

Interpretation:

From the above graph it is clear that majority of the respondents are working in Spinning

department. So spinning department has absorbed majority of the total employees. It is

considered to be a key function or department in the factory.



TABLE No.3:

TABLE SHOWING THE GENDER OF RESPONDENTS

Gender No. of Employees

Male

Female

50

--

Analysis:

The table indicates that all the respondents are Male. The workers who are selected for

the purpose of my study are male workers. Because women workers are absolutely nil in the

factory. It shows that there is gender inequality.



GRAPH No.3:

Interpretation:

From the above graph it is clear that only men workers are working but not a single

woman worker. So, it is clear that the role of women workers has deprived.



TABLE No. 4:

TABLE SHOWING CATEGORY OF PAY STRUCTURE

SL. No. Category No. of employees Percentage

1

2

3

Skilled

Semi-skilled

unskilled

27

18

5

54

36

10

Analysis:

The above table indicates that out of the total respondents, 54% are considered as skilled,

36% of respondents are considered as semi-skilled and 10% of respondents are considered as

unskilled labour. More than half of the total workers are skilled workers. It shows that the quality

of work done by skilled worker is also good.



GRAPH No. 4:

Interpretation:

From the above graph it can be observed that most of the respondents are considered as

skilled labour. It implies that the company has given more importance for skilled workers.



TABLE NO. 5:

TABLE SHOWING THE BASIC PAY OF RESPONDENTS

SL. No. Basic Pay (Rs) No. of Employees Percentage

1.

2.

3.

4.

2000 – 4000

4000 – 6000

6000 – 8000

8000 and above

05

27

11

07

10

54

22

14

Total 50 100

Analysis:

The above table shows that 10% of respondents draw between Rs. 2000-4000 as basic

pay, 54% of them between Rs. 4000-6000, 22% of them between Rs. 6000-8000 and rest 14% of

them draw Rs. 8000 and above as basic pay respectively. It implies that the majority of the

workers are falling in the pay scale of Rs6000-8000.



GRAPH No. 5:

Interpretation:

From the above graph it is clear that majority of the respondents draw Rs. 4000 – 6000 as

basic pay.



TABLE No. 6:

TABLE SHOWING NUMBER OF INCREMENTS TO EMPLOYERS IN A YEAR

SL. No. No. of Increments No. of Respondents Percentage

1.

2.

3.

One

Two

Three and above

27

18

05

54

36

10

Total 50 100

Analysis:

The above table clearly shows that 54% of respondents have only one increment in a

year, 36% of respondents have two and rest 10% of respondents have three and above increments

in a year.



GRAPH No. 6:

Interpretation:

The graph above clearly shows that most of the employees have only one increment per

year. Majority of the workers are getting only annual increment.



TABLE No.7:

TABLE SHOWING NUMBER OF EMPLOYEES GETTING BONUS IN SONA

SYNTHETICS

SL. No. Response No. of respondents

1.

2.

Yes

No

50

0

Analysis:

By analyzing the table above it can be clearly visualized that all the respondents are

entitled to get bonus.



GRAPH No. 7:

Interpretation:

From the above graph it is clear that all the respondents are entitled to get bonus. It is a

motivating factor which increases the work efficiency and employee morale.



TABLE No. 8:

TABLE SHOWING THE RESPONDENTS RECEIVE THE BONUS SCHEME

ACCORDINGLY

SL. No. Periods No. of employees Percentage

1.

2.

3.

Quarterly

Half yearly

Yearly

0

2

48

0

04

96

Analysis:

The above table shows the response of the employees regarding how according they

receive their bonus. 96% of the employees’ opinion that they receive bonus yearly and 4% of the

employees have opinion they receive bonus half yearly.



GRAPH No. 8:

Interpretation:

From the above graph it can be observed that the company is giving bonus in yearly

basis.



TABLE No. 9:

TABLE SHOWING ALLOWANCE RECEIVED BY THE RESPONDENTS

SL. No. Types of

allowances

No. of employees Percentage

1.

2.

3.

4.

Conveyance

allowance

Canteen allowance

Uniform allowance

Traveling allowance

09

50

12

35

18

100

24

70

Analysis:

The table indicates that all the respondents receive all canteen allowance, 70% of

respondents receive traveling allowance, 24% of respondents receive uniform allowance and

18% of respondents receive conveyance allowance.



GRAPH No. 9:

Interpretation:

From the above graph it is clear that all the respondents receive canteen allowance and

most of the respondents receive traveling allowance.



TABLE No. 10:

TABLE SHOWING BENEFITS RECEIVED RESPONDENTS

SL. No. Types of benefits Number of

employees

Percentage

1.

2.

3.

4.

Medical benefits

Housing benefits

Educational benefits

All of the above

50

34

07

07

100

68

14

14

Analysis:

The table indicates that all the respondents receive medical benefits, 68% receive

housing benefits, 14% receive educational benefits and 14% of respondents receive all the

benefits mentioned in the table.



GRAPH No. 10:

Interpretation:

From the above graph it is clear that all the respondents are entitled to medical benefits

and most of respondents are entitled get housing benefit. The company has taken care about

health aspect of workers. It also gives importance for housing facility.



TABLE No. 11:

TABLE SHOWING THE NUMBER OF DAYS OF CASUAL LEAVE THE

RESPONDENTS ARE ENTITLED TO IN A YEAR

SL. No. No. of CL (in days) No. of employees Percentage

1.

2.

3.

4.

5 – 10

10 – 15

15 – 20

20 and above

8

10

17

15

16

20

34

30

Analysis:

The above table clearly shows that 16% of respondents are entitled to 5-10 days of casual

leave in a year, 20% of respondents are 10-15, 34% are 15-20, and remaining 30% of

respondents are entitled to above 20 days of casual leave in a year.



GRAPH No.11:

Interpretation:

The above graph clearly shows that majority of respondents are entitled to 15-20 days of casual

leave.



TABLE No. 12:

TABLE SHOWING INCENTIVES PROVIDED TO RESPONDENTS

SL. No. Response No. of employees Percentage

1.

2.

Yes

No

50

0

100

0

Analysis:

The table shows that all the respondents receive incentives provided by the organization.



GRAPH No. 12:

Interpretation:

From the above graph it is understandable that all the respondents receive incentives. It

leads to quality work and job satisfaction. The company is compensating properly.



TABLE No. 13:

TABLE SHOWING THE PAYMENT OF INCENTIVE LIMITED TO

SL. No. Rating No. of employees Percentage

1.

2.

3.

4.

Hard work

Productivity

Efficiency

Overtime

0

40

05

05

0

80

10

10

Analysis:

The above table indicates the responses regarding. The payment of Incentives to the

employees based on limits. 80% of employees say that incentives are provided on the basis of

productivity and 10% of employees say that it is on the efficiency limit, and 10% of employees

say that it is based on the overtime.



GRAPH No. 13:

Interpretation:

It is clear from the above graph that the company pays incentives to their employees on

the limits of productivity. The company has given more significance for increasing productivity.



TABLE No. 14:

TABLE SHOWING THAT THE SALARY OF RESPONDENTS AT PAR WITH THEIR

EDUCATION


1.

2.

Yes

No

14

36

28

72

Analysis:

The above table shows the response of employees regarding their salary at par with their

education.. 72% of the employees are not satisfied with salary they receive at par with their

education and remaining 28% of the employees are satisfied to that.



GRAPH No. 14:

Interpretation:

From the above graph it is clear that more number of employees are not satisfied with

their salary which they receive at par with their education. Majority of the women are dissatisfied

with the prevailing salary structure.



TABLE No. 15:

TABLE SHOWING INSURANCE BENEFITS PROVIDED OT RESPONDENTS


1.

2.

Yes

No

50

0

100

0

Analysis:

The above table shows that the response of employees regarding he insurance benefits

provided by the organization. By analyzing the table above it can be clearly visualized that all

respondents are entitled to insurance benefits provided by the organization.



GRAPH No. 15:

Interpretation:

The graph clearly shows that all the employees are entitled to insurance benefit provided

by the organization. The company has adopted good social security measures. It safeguards the

future of worker.



TABLE No. 16:

TABLE SHOWING PROVISION OF GRATUITY PAYMENT ON RETIREMENT OF

RESPONDENTS


1.

2.

Yes

No

50

0

100

0

Analysis:

The above table indicates that all the respondents receive the gratuity during their

retirement.



GRAPH No. 16:

Interpretation:

From the above graph it is clear that all the respondents are entitled to Gratuity payment.

The future of the worker is also secured. It is one of the important social security measure.



TABLE No. 17:

TABLE SHOWING NUMBER OF RESPONDENTS GETTING FESTIVAL ADVANCE

IN THE YEAR


1.

2.

Yes

No

28

22

56

44

Analysis:

The table indicates that 56% of respondents receive festival advance and remaining 44%

of respondents do not receive.



GRAPH No. 17:

Interpretation:

From the above graph it is understandable that most of the respondents receive festival

advance while only few of employees are not entitled to festival advance.



TABLE No. 18:

TABLE SHOWING ESI AND PF FACILITIES PROVIDED TO RESPONDENTS


1.

2.

Yes

No

50

0

100

0

Analysis:

The above table indicates that all the respondents receive the ESI and PF facilities. The

company has taken care about the health of the workers and dependents. It safeguards the health

and future of workers.



GRAPH No. 18:

Interpretation:

From the above graph it is clear that all the respondents are entitled to ESI and PF

facilities.



TABLE No. 19:

TABLE SHOWING EMPLOYEE SATISFACTION WITH RESPECT TO BENEFITS

PROVIDED BY THE ORGANISATION


1.

2.

3.

4.

5.

Very Poor

Poor

Average

Good

Very Good

01

05

18

19

07

02

10

36

38

14

Analysis:

The above table shows that 38% of respondents have rated their benefits as “Good”.36% of

respondents have rated it as “Average”. 14% of respondents have rated it as “Very good” and

10% of respondents have rated the benefits provided by the organization as “Poor”.



GRAPH No. 19:

Interpretation:

From the above graph it is understandable that maximum number of workers rated as

“Good” and “Satisfactory”. It means employees are happy about their benefits.



TABLE No. 20:

TABLE SHOWING EMPLOYEE SATISFACTION WITH RESPECT TO PRESENT

PAY STRUCTURE


1.

2.

3.

4.

5.

Very Poor

Poor

Average

Good

Very Good

00

09

20

13

08

0

18

40

26

16

Analysis:

The above table indicates that no person are dissatisfied about their present pay structure,

18% of respondents has said their opinion as poor, 40% are in neutral, 26% are good and

remaining 16% are fully satisfied regarding their present pay structure.



GRAPH No. 20:

Interpretation:

The above chart clearly indicates that most of the respondents are satisfied regarding their

present pay structure.



SUMMARY OF FINDINGS

Most of the respondents belong to the age group of 31-40 and 41-50

On the basis of this survey, it is found that majority of the respondents are working in Spinning

department

Only men workers are working but not a single women worker. So, it is clear that the role of

women workers has deprived.

Majority of the respondents come under the skilled and semi-skilled category of pay structure

Majority of employees salary drawn of Rs4000-6000

On the basis of this survey, it is found that majority of employees are entitled to one increment in

a year

On the basis of this survey , it is found that employees are entitled to 8.33% as bonus per annum

It is found that employees are entitled to

Conveyance allowance

Canteen allowance

Uniform allowance

Travelling allowance

It is found that the company provides the following benefits

Medical benefits

Housing benefits

Educational benefits

Majority of employees entitled to above 15 days and below 20 days Casual Leave in a

year



It is found that rate of basic pay contribute to Provident Fund (P.F) by employees is

equivalent to 12%

The employees are entitled to terminal benefits such as insurance benefits, gratuity

payment

Company provide two times of Festival Advance per annum that is, Rs1000 during

Yugadi and Ayuda pooja

Company collects Rs30 from employees and Rs60 from employer should be deducted in

the December’s salary and total amount will be paid on 15th January to the government

It is found that the organization the main factors in determine wage salary fixation on

government regulation

Majority of the employees are satisfied with the present pay structure

Majority of the employees are satisfied with the benefits provided by the company.



SUGGESTIONS AND CONCLUSION

Some suggestion are put forward which may be useful to the organization at least to an extent.

1. There should be recognition of efficiency in paying the wage and incentives.

2. The salary should be fixed according to the education.

3. The wage rate fixed must be fair and the hard work of employees must also be recognized.

4. The wage and salary structure must be flexible so that any changes can be easily made.

5. There must be no ambiguity and confusion fixation on wage rates.

6. Effort should be made to meet employee’s expectations so that they have a positive

approach towards work in the organization.

7. Medical department in the company can be improved. All types of medicines prescribed by

the company doctors should be made available at all periods in the dispensary.

8. Canteen facilities can be improved for workers.

9. The employees should be educated about the organization policy, rules and plans concerned

with wage and salary administration or wage and salary schemes in order to be in touch with

the changes.

10. The Quality of Work Life (Q.W.L) can be enhanced. By providing favorable work

environment, employees can be encouraged and motivated to increase productivity. By

providing a good environment, the morale of employees can also be improved.



CONCLUSION

This study was an attempt to know about prevailing wage and salary administration in Sona

Synthetics, Bangalore.

Through the study, it has been noticed that the wage and salary administration at Sona

Synthetics, is being handled quite efficiently. Wage and salary administration is concerned with the

financial aspects of needs, motivation and rewards.

The principles of wages and salary administration is fixation of wages ad salaries in a definite

plan which ensures that the differences is pay for job are based upon variations in job requirements,

should be reasonably in line with the prevailing labour market, equal pay for equal work etc.

Considering all these points, at Sona Synthetics, the wage structure is prepared for different levels.

As it is rightly said “People do what they do to satisfy some need. Before they do anything they

look forward for reward as pay off”.

The compensation package forms an important part as a motivational force. It should be able to:

Attract competent personnel

Retain present employees

Should control cost in the interest of employees.

The various components of remuneration must be reviewed consistently and should be flexible to

meet the expectation of employees. This would lead to increase in productivity and reduces turn over.

At Sona Synthetics, the management is trying its maximum and level best to keep the employees

and workers motivated by giving them various benefit and incentives. In spite of this there is a segment

which is not satisfied with the remuneration. The reason is varying, lack of performance appraisal, lack

of recognition of hard work, dissatisfied with the salary is compared to their input, lack of proper

division of work etc.



To conclude, the present pay structure of the company is satisfactory and the employees are

provided with various benefits and services, advances and subsidies, terminal / insurance benefits and

incentives, which act as additional motivational factors for the employees.

APPENDICES AND ANNEXURES

QUESTIONNAIRE:

Study on Wages and Salary Administration of Sona Synthetics (unit of Sri Valliappa textiles)

Bangalore.

Appeal letter

Respected Sir/Madam,

I, Miss Vandana Rajgopal, student of MBA, Sikkim Manipal Univeristy, doing a project on

Wages and Salary Administration in Sona Synthetics (unit of Sri Valliappa Textiles) as a partial

fulfillment, I request you to answer the questionnaire and give your views. The data collected from you

would be used only for academic.

Thanking you Yours faithfully,

Vandana Rajgopal



GENDER :

AGE :

DEPARTMENT :

DESIGNATION :

EXPERIENCE IN SS :

1. In which category of pay structure are you including?

a. Skilled ( )

b. Semi Skilled ( )

c. Unskilled ( )

2. What is the amount of basic pay per month?

a. Between Rs 2000-4000 ( )

b. Between Rs 4000-6000 ( )

c. Between Rs 6000-8000 ( )

d. Rs 8000 and above ( )

3. How many increments are you entitled to, in a year?

a. One ( )

b. Two ( )

c. Three and above ( )

4. Are you getting bonus in Sona Synthetics?

a. Yes ( )

b. No ( )



5. If yes how accordingly you receive it?

a. Quarterly ( )

b. Half yearly ( )

c. Yearly ( )

6. Which of the following allowances is/are provided by the organization?

a. Conveyance allowance ( )

b. Canteen allowance ( )

c. Uniform allowance ( )

d. Traveling allowance ( )

e. All of the above ( )

7. Which of the following benefits is/are provided by the organization?

a. Medical benefits ( )

b. Housing benefits ( )

c. Educational benefits ( )

d. All of the above ( )

8. How many days of casual leave are you entitled to, in a year?

- - - - - - -- - - - - - - - - -

9. Are you entitled to any incentives?

a. Yes ( )

b. No ( )

10. If Yes, is the payment of incentive limited to your

a. Hard work ( )

b. Productivity ( )

c. Efficiency ( )

d. Over time ( )



11. Are you entitled to get insurances benefits provided by the organization?

a. Yes ( )

b. No ( )

12. Are you entitled to, gratuity payment on retirement?

a. Yes ( )

b. No ( )

13. Are you entitled to get festival advance in the year?

a. Yes ( )

b. No ( )

14. Have you enjoyed ESI and PF facility?

a. Yes ( )

b. No ( )

15. Are you entitled to get Advance/Loan on salary?

a. Yes ( )

b. No ( )

16. Have you paid interest on loan?

a. Yes ( )

b. No ( )

17. Are you entitled to get Over Time wages?

a. Yes ( )

b. No ( )

18. How do you rate the benefits provided by the organization?



a. Very good ( )

b. Good ( )

c. Average ( )

d. Poor ( )

e. Very poor ( )

19. Is your salary at par with your education?

a. Yes ( )

b. No ( )

20. How do you rate the present salary of organization?

a. Very good ( )

b. Good ( )

c. Average ( )

d. Poor ( )

e. Very poor ( )



BIBLIOGRAPHYSL.NO Title of the book Name of the

author

Name of

Publisher

Year of

Publication

01

02

03

04

05

Human Resource

Management

Human Resource

Personal/

Management

Personal and

Human Resource

Management

Human Resource

Management

Human Resource

Management

Cynthia D. Fisher

Lyle F. Schoen feldt

James B. Shaw

K. Aswathappa

A. M. Sarma

Subba Rao

Dr. C. B. Gupta

Biztantra

Tata Mc

Graw-Hill

Publishing

Company ltd

Himalaya

Publishing

House

V edition

2004

9th reprint

2004

1997-99

II edition

1998

www. [email protected]

www. [email protected]


mailto:[email protected]

mailto:[email protected]


http://www.valliappa.com/sonagroup/promain.htm


http://www.valliappa.com/sonagroup/promain.htm

HR Project

Documents

Transcript of HR Project