Wage and Salary Administration Sample Full Project

A STUDY ON WAGE AND SALARY ADMINISTRATION (With Special Reference to FACOR ALLOYS LIMITED)

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INDEX CHAPTER 1:  INTRODUCTION  NEED FOR THE STUDY  OBJECTIVES OF THE STUDY  SCOPE OF THE STUDY  METHODOLOGY  LIMITATIONS

CHAPTER 2:  INDUSTRY PROFILE  COMPANY PROFILE

CHAPTER 3:  THEORETICAL FRAME WORK OF THE STUDY

CHAPTER 4:  ANALYSIS AND INTERPRETATION OF THE STUDY

CHAPTER 5:  SUMMARY  FINDINGS  SUGGESTIONS

ANNEXURES BIBLIOGRAPHY

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INTRODUCTION One of the most important factors in Human Resource Management is Compensation Management. The soundness of compensation management depends upon the amount of wage or salary is paid to an employee for a fair days work.

Wage and Salary administration refers to the established and implementation of sound policies and practices employee compensation. Wage and salary administration is one of the vital areas of the personnel administration. For sound wage and salary policies and programs are essential. To procure, maintain, develop, promote and transfer employees and to get effective results from them.

An organization has to balance fairly financial and non financial rewards extrinsic awards. Effective awards and intrinsic awards. Effective reward system requires not only that the absolute level of compensation paid by an organization compares favorably but also enquires that it satisfies the principles of internal equity and equity with the job content. The employees‟ gets pay satisfaction of the perceived salary is equal to actual salary received and actual salary is less than perceived salary the employee is dissatisfied with the salary. The remuneration paid by the employer for the services of hourly, daily, weekly and fortnightly employees.

The remuneration paid to the clerical and managerial personnel employed on monthly or annual basis. It is the amount of remuneration for unit of time excluding incentives, overtime pay etc. Is the amount of wage fixed for the unit of time fixed on the basis of job evaluation standards? Is an assembly of all properly evaluated standard wage rates set from in the sequence according to the job and size of the rate. Refer to compensation given to the employees over and above wage rates which often is not directly related to output performance of time worked. Refer to special rates to certain period such as over time, Sundays and holidays. The objective of wage and salary administration is numerous and sometimes conflict with each other. Candidates decide upon their career in a particular organization mostly on the basis of the amount of remuneration the organization mostly on the basis of the amount of remuneration the organization offers qualified and competent people join the best paid organization. The organization should aim at payment of salaries at that level where they can attract competent and qualified people. If the 3

salary does not present compare favorable with that of other similar organization. Employees quit the present one and join the other organization.

The organization must keep the wage levels at the competent level, in order to prevent quite. Internal equity does mean payment of similar wages for similar jobs within the organization. External equity implies payment of similar wages to similar jobs in comparable organization.

To protect in public as progressive employers and to comply with the wage legislations. To pay according to comply with wage legislations. To pay according to the content land difficulty of the jobs and in tune with the effort and merit of the employees. To facilitate pay role administration of budgeting and wage and salary control. To Simply collective bargaining procedure and negotiations. To promote organization feasibility.

Over all salary range for all the jobs in an organization is arranged. Each job grade will be assigned salary range. These individual salary ranges will be filled into an overall range Overall salary grades of the organization may be adjusted on the data information collected about the salary levels of similar organizations. Individual salary may also be adjusted based on the performance of the individual employees.

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NEED FOR THE STUDY  Many organizations today, in order to competent enough to meet the challenges need to continuously changes to develop wage and salary administration.  Thus Company‟s are supposed to adopt well built wage and salary administration.  Need for the study is that the performance of wage and salary administration is to be studied in order to make changes if any, in order to retain the employees and also to attract.  The new employees to meet the challenges of the organization.  The study also aims at evaluating the practical wage and salary administration under taken by the organization in their work environment to improve their working skills.

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OBJECTIVES OF THE STUDY The present study has been conducted with the following objectives:  To study the fluctuations in wage and salary policies of FACOR management and employee satisfaction.  To compare the wage and salary administration practices between workers and officials of M/s FACOR.  To know the strategies adopted in the wage and salary administration practices of FACOR during the challenging situation faced by it and to come out if such situations.  To know the level satisfaction of the employees regarding the wage & salary administration in Facor.

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SCOPE OF THE STUDY The Scope of the study covers with extent of help to check all the activities of salary administration against the company polices. An attempt was made to know the pleasure of employees regarding their wages and salary administration. Hence this study specially is focused on wages and salary administration which is a key factor for employee job satisfaction. The Organization under study namely, FACOR Alloys Corporation Limited, ShreeramNagar (Garividi) is one of the major concern in India for a generating and distributing HC Ferro manganese, silicon manganese, HC Ferro chrome, Ferro silicon magnesium, MC Ferro magnesium, LC Ferro chrome to the industries and domestic purpose in south India.

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METHODOLOGY In study the primary data collected by means of personal interview with the help of questionnaire.

PRIMARY DATA: The information consists of data gathered from the differnt source. Primary data is the refresh data. This has been collected from various sources. The sources adopted to get data is questionnaire and through observation. Questionnaire is designed in such way that every employee can understand. It consists of 16 questions which are sample and close and open end question.

SAMPLING: In order to get data a sample size of 100 is taken and employee selected on random base.

SECONDARY DATA: The data is collected from published reports, unpublished reports, annual reports, unpublished manuals and materials etc.

THE SOURCES ARE:  Interview with assistant personal manager.  Collecting necessary information by conducting survey through questionnaire.  Annual reports of FACOR  Bulletins  Files ( DA files, Bonus files )

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LIMITATIONS OF THE STUDY The study made by me in FACOR ALLOYS Limited was confined to determine wage and salary method and practices being followed:  The lack of availability of information.  The collected one does not give the complete information.  As time period is 2 months, it is very difficult to get a clear picture.  The sample size taken for the research is small due to constraints of time.  Some of the employees had not co-operated in filling of questionnaire.

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INDUSTRY PROFILE FERRO ALLOY INDUSTRY REQUIRES LEVEL PLAYING FIELD IN THE LIBERALISED ECONOMY: The Indian Ferro Alloy Industry is not as old as the Steel Industry. From a humble start in the fifties the capacity has grown enormously with enough potential to increase exports in future. However, the high power tariff in India is the stumbling block. Though the industry started getting power from National Power Corporation at NTPC tariff, it is still higher than the power tariff available in countries like Norway, China, and Russia, Kazakhstan etc., which are a major producers and exporters of Ferro alloy too.

What is more, the import duty on Ferro alloy has also been reduced drastically to 25 per cent in the post – liberalized era. Further, steel exporters are eligible to import their raw material including Ferro Alloys free of duty against advance license. With plenty of raw materials like ores and reluctant available in the country, what the industry needs is a level playing field by power being made available at international comparable tariff. The Indian Ferro Alloy Industry is more than four decades old, as produces Bulk and Noble Ferro Alloys.

Through this Industry is not as old as the steel industry, its capacity has increased substantially from a humble start in the fifties, meeting the requirement of the steel industry in the country. The growth of the steel industry has not picked up as expected, whereas the growth of the Ferro Alloy Industry has stepped up, much more than the expected level. With the result, the capacity available in the country is much more in the Ferro Alloy Industry.

It is a lot of potential to increase its exports in the near future. India has been bestowed with adequate resources of all basic raw materials required for the production of Manganese, Silicon and Chrome Alloys. Most of the Ferro Alloy Units have come up in the six States Andhra Pradesh, Madhya Pradesh, Maharashtra, Orissa and West Bengal, mainly due to availability and /or proximity of the raw materials. Ferro Alloys is a power intensive industry.

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The total connected load of the industry has grown almost 8 to 9 times from 130 MVA in the mid sixties to over 1000 MVA as on date. With the result, the installed capacity of the industry is 1.5 million tones of Bulk and Noble Ferro Alloys. Capacity of Manganese Alloys is around 700,000 tones. Ferro Silicon 175.000 tones and Ferro Molybdenum, Ferro Vanadium, Ferro Tungsten, Silicon Magnesium, Ferro Titanium, Ferro Phosphorous, etc., around 20,000 tones.

PRODUCTION OF FERRO ALLOYS: Production of Different Ferro Alloys for last five tears is given below:

Table 1 statement showing production of Ferro Alloys during 2006-07 to 2010-11 as available with the association. (Quantity in Tones)

Production

2006-07

2007-08

2008-09

2009-10

2010-11

0

6

828

Lock out

18

25

400

Lock out

13769

28478

23730

Lock out

0

2

0

Lock out

Ferro 3

0

10

13

Lock out

Ferro 0

2

20

216

Lock out

Ferro 60

HC

Manganese 26

Silicon Manganese

Ferro 52350

HC Chrome

Ferro Silicon 0 Magnesium MC Chrome LC Chrome

The capacity increase of the Ferro industry in general, followed the course to meet the planned target of steel industry in the country, and also to remain potential exporters of Ferro Alloys in the international market to earn substantial foreign exchange for the country. However, 11

the performance of the industry started deteriorating from the mid-sixties, due to various reasons, the foremost being, steep increase in the power tariff, fuel, oil, raw materials and transport charges. Exports started sliding from 1978 onwards. The eighties witnessed the maximum erosion in the export performance of the Ferro Alloy Industry. However, after initiation of the liberalization programmed, there has been a spurt in the export of Bulk Ferro Alloys. Like all other Sectors, exports from this sector have also increased.

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ORGANIZATION PROFILE FERRO ALLOYS CORPORATION LIMITED Name

:

FACOR Alloys Corporation Limited

Incorporation

:

1955

Commencement of Business

:

1958

Registered

:

Shreeram Bhavan, Tumsar.

Authorized Capital

:

2000 Lakhs

Paid up Capital

:

3000 Lakhs

Factory

:

FACOR Alloys Limited, Garividi

Chairman

:

Umashankar Agrawal

Director

:

R.K.Saraf

Joint Managing Director

:

Yogesh Saraf

Vice Chairman & Managing

Asim Saraf

Executive Director

:

Anurag Saraf

Director (Technical)

:

C.N.Harman

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Bankers

:

Bank of India

Central Bank of India

State Bank of India

Syndicate Bank

State Bank of Bikaner & Jaipur.

FACOR has created a respectable place for a remote place called Garividi in the industrial scenario after establishing its first Ferro Alloys plant in 1956. The FACOR township is named after late Bahadurseth Shreeramji, the father of the founder of this great organization late Sri. Durgaprasadji Sharaf (father of the present Chairman Sri.Umashankar Agarwal and V.C & MD.Sri.R.K.Sharaf) as SHREERAMNAGAR. FACOR was established as a public limited company by the families of SHARAF‟S and MOR‟S in the History of Ferro Alloys, this has become the first of its kind and a major producer of Ferro Manganese in the country. FACOR is not only a leader in the field of Ferro Alloys, but also produces special steels of high standard. Its diversified activities extended beyond mining and production of Ferro Alloys, to making the special steel and embrace the production and manufacture of synthetic yarn and maize products. Low Ferro Chrome was imported to India until 1966 to meet the demand of steel industry. Then, FACOR has step up a Ferro Chrome plant with two furnaces having capacity of about 12000mt low/high Carbon Ferro Chrome to substituted the imports of Ferro Chrome and meet the domestic demand along with Ferro Manganese Production and saved lot of valuable foreign occupies the first position as producer and exporter of Ferro Alloys, in the country. It is a pride for the organization for such credentials.

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CREDENTIALS OF FACOR: It is the country‟s first Ferro Alloys Plant. It is the first plan to innovate and introduce Chromium Alloys and also the only single unit to meet country‟s requirements. It is the first unit to produce Magnesium Ferro Silicon. It is the first to take up the erection and commissioning of the wholly indigenous furnace without any foreign component or consultancy. The first in the country‟s to export Ferro Manganese It is the first among the various Ferro Alloys, producing unit to take up the manufacture of low Carbon Ferro Alloys. It is the first firm to produce a total of one million tones of Ferro Alloys by the end of 1981. FACOR develops Ferro Alloys as per customer specifications besides making sizeable exports. FACOR was awarded certificate for export recognition by the Engineering Export Promotion council, Western Region, and Bombay in Recognition of the outstanding performance in the export of Ferro Manganese, Ferro Chrome, during the 1981-82.

FAVORABLE CAUSES OF LOCATION OF FACOR: FACOR (FACOR Alloys Limited) at ShreeramNagar (Garividi) is situated at 85 Km north of Visakhapatnam port. The main factors motivated to establish a factory in Shreeramnagar are 

Availability of labor at cheap rates



Availability of continues water supply



Availability of power station near by



Availability of low grade Manganese or near by



Cheap availability of the communication and transport facilities. Availability of labor at cheap rates is one of the important and it is true in the case of

FACOR. Regarding supply of water there is a big Banta situated very nearer to with the plant. It is big tank of 200 ft. depth and four five acres of plinth area. This unit was established along the Madras-Howrah Railway Track which generally contribute to easy transportation and FACOR is located the side roadway linking SrikakulamVisakhapatnam. Hence it offered good communication and infrastructural facilities. It is nearer to Visakhapatnam Port to export its products. 15

The Government of Andhra Pradesh supplies electricity at lower rate. The near by villages are the main sources of raw materials like sand, manganese or is available at nearest villages Garividi, Koduru, Garbham, Duvvada and Sadanandapuram.

TECHNICAL COLLABORATION: The Ferro Manganese plant located at Shreeramnagar works division contains three furnaces of each 7.5 KVA capacity to produce all varieties of Ferro Alloys, to meet the demand of country‟s steel makers. The technical assistance was provided to establish these Furnaces by M/s Elkin A/s Oslo, Norway. The technical process is very advanced and innovative that visitors from Finland, Norway, South Africa, Germany, Austria etc., visited the plant and learnt about the process. The Ferro Chrome Division has also obtained the technical assistance in constructing two furnaces from M/s Elkin, Oslo, Norway and M/s Electro Invest A/S Stockholm Sweden, subsidiary of M/s Asia, Sweden. Technical knowhow for production of low carbon Ferro Chrome was also taken from M/s Electro Invest, A/S Swede, for an initial period of about five years. FACOR crossed another mile stone in Ferro Alloys, production by establishing a sub merged are smelting furnace with 16 MVA capacities which is commissioned in 1981. Thus FACOR has its credit of six furnaces in operation at Shreeramnagar, producing various Ferro Alloys of Manganese, Chromium and Silicon for Steel manufacture. As a part of FACOR‟S vertical integration it has set up a steel plant at Nagpur in 1978, producing special steels like Carbon Steels low alloy steel for the free going industry and various stainless steels of all grades under quality control standards to meet the demand of the country. Thus FACOR is called as a „Steel Maker‟. In 1979, FACOR established its own Research and Development wing the remarkable technology to produce charge chrome, the wonder alloy for stainless steel manufactures, desired by steel makers all over the world.

Thus a charge chrome plant was set up at D.P.Nagar in Orissa in 1983. Using sophisticated Japanese furnace and indigenous technology. FACOR accomplished the task of converting low grade chrome ores and rejects into a quality charge chrome which are obtained from which Bowla, Kathapal and Osthapal mines the beneficiation of which is done at DES 16

Bowla plant meant for beneficiation. The FACOR again stands first in India in the quality production of charge chrome and whose total production is exported.

IMPORTANCE OF FERRO ALLOYS: The Industrial development of any country depends upon the strengths of the basic industries like Iron and Steel, Cement, Power Generation, Electric and Electronic etc., steel is the life blood of any industry and also prime requirement for human development. Thus the Ferro Alloys are the basic raw materials for steel manufacture with various properties for different application. FACOR Shreeramnagar, works division is fulfilling this demand for steel industry in the country, thus has unmatched reputation of this-quality production not only in the domestic market but also in the international market.

DIFFERENT FACILITIES AT SHREERAMNAGAR WORKS:

1. FERRO MANGANESE PLANT: 

Two 7500 KVA covered rotating submerged are smelting furnace.



One 7500 KVA open top rotating submerged electric smelting furnace.

2. FERRO CHROME PLANT: 

One 12000 KVA open top rotating submerged smelting furnace.



One 8000 KVA open electric are smelting furnace



One 16000 KVA stationary submerged electric smelting furnace.

3. OTHER AUXILIARY UNITS: 

Production of electrode Carbon paste



Beneficiation and agglomeration of chrome ores



Chrome ore Briquetting (Mechanized plant stated in 1990).



Metal recovery plant.

RAW MATERIALS: The basic raw materials required for production of Ferro Alloys are given below: Ferro Chrome (high carbon)

: Manganese Ore, chrome ore, quartz, Lime stone, Coke and Electric Power. 17

The raw materials are obtained from Orissa, Maharashtra, Bihar and West Bengal, Sometimes coke and chrome ore are also imported from Japan, China, Turkey, U.A.E. etc. Annual consumption of the raw materials for full production is around 3 lakh tones. The raw materials are sized and blended in ore preparation plant before using in the furnaces. Blended materials are stocked in the yard sheds near the furnaces. STORAGE AND FEEDING TO FURNACES: The raw materials are initially fed to respective Ground Hopers, Skips Hoist, Bucket Elevators, Telpher Cars etc., in sequence in order to have intermediate storage at individual furnaces.

FINISHED GOODS, HANDLING, SIZING AND TRANSPORTATION: Finished goods are handled manually or mechanically according to specifications of the orders and transported by means of road or rail within the country. Some quantities are also exported to Japan, Germany, Korea and USA etc., by ship through Visakhapatnam Port.

SALES AND DISPATCHES: Chennai and Kolkata. FACOR is using installed capacity fully depending on the market conditions. FACOR makes direct sales in domestic market through its marketing department located at Head Office, Tumsar and through is regional Office at Mumbai; Delhi. FACOR has built up a good track record and developed into India‟s largest manufacturer and exporter of Ferro Alloys, and maintained this position over the time. The personnel department plays a vital role in the organizational climate of any organization. The personnel department of FACOR has also drawn clear guidelines for personnel policies and procedures, their by setting up an atmosphere of mutual confidence and respect. Thus it helps to develop harmonious relations between management and the work force.

RECRUITMENT: A thorough job analysis is under taken and then existing employee pool is referred and matches to the required employee qualities with job specification, if it matches the employee is assigned the job, if not a new candidate will be introduced into the organization.

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CAPTIVE POWER PLANT: One of the basic raw materials for FACOR is power, which constitutes shortage, and heavy and continuous power cuts and low voltages, production hampered and there were heavy losses due to non availability of finished goods at required time. So FACOR planned to establish its own power generate plant during 1990-91 and the cost of generation is almost 50% of cost of power supplied by APSEB power generated in the plant is meeting also 50% of the FACOR requirement. The basic raw material for power plant lubricants is produced from HPCL Vizag. The FACOR provides employment nearly for 10000 employees and has been instrumental in building industrial township of Shreeramnagar (A.P) Durgaprasad and Sri Durgapur (Orissa).

MANUFACTURING PROCESS: The raw materials are smelted/heated to 1500 to 2000c and then alloys are trapped from electric arc furnaces in molten states, at prescribed intervals, along with the bye-products which are called slag. The melt is separated into metal and slag and collected in receptacles. After cooling the metal and slag are handled separately.

FINISHED PRODUCTS: The various types of Ferro Alloys products are as follows:

a)

High carbon Ferro Chrome.

Among the products, the High Carbon Ferro Chrome is only producing by FACOR at present .

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WORKMEN/EMPLOYEE EMPLOYED: The existing manpower at Shreeramnagar works in about 1000, out of which:

2010 (June) (as on 1.7.2010 a.w.h) Managerial

7

Supervisory (Tech)

68

Supervisory (Non-Tech)

35

Work men Skilled

219

Work men Administration

89

Work men Permanent

213

Mining employees

5

TOTAL

636

PERSONNEL MANAGEMENT:

The Management has committed for the professional management in the process of which the employees are considered very important and prime resources for the development of the organization. Thus, management envisaged Employee‟s excellence Scheme (EERS).

QUALITY ASSURANCE SYSTEM: A stringent quality control for both raw materials and products is being maintained as per the standards and being supported by full-fledged Inspection and Quality Control Department. FACOR has accredited by Dutch-council for certification and achieved ISO-9002 Certificate recently issued by IRQS a department of Indian Register for shipping, Mumbai. ISO: 1994 – Efforts have been paid to accredit with ISO-9002 implementation. 1995 – The certificate was issued at ISO-9002, 1987 version. Subsequently the certificate is upgraded with respect to ISO-9002, 1994 version. Indian Register of quality systems, Mumbai. The certificate has been renewal in December, 2000 it is valid up to December 2003. 20

QUALITY MANAGENT SYSTEM – GUIDELINES FOR PERFORMANCE FOR IMPROVEMENTS – ISO 2004 INTRODUCTION: The adoption of quality management system should be a strategic decision by the top management of an organization. The design and implementation of an organization‟s quality management system is influenced by varying needs, particular objectives, the products provided, the processes employed and the size and structure of the organization. This international standard is based on eight quality international standard to imply uniformity in the structure of quality management systems of uniformity of documentation.

THE PURPOSE OF AN ORGANIZATION IS: To identify and meet the needs and expectation of its customers and the interested parties (people in the organization suppliers, owners, society) to achieve competitive advantage , and to do this effective and efficient manner and to achieve, maintain, and improve overall organizational performance and capabilities. The application of quality management principles not only provades direct benefits but also makes an important contribution to managing costs and risks. Benefit, cost and risk management considerations are important for the organization, its customers and other interest parties. . DIVERSIFICATION: FACOR has performed well during last four decades and its turnover is about Rs.3, 000/million and is further seeking to diversify into other fields namely metallurgical, petro chemicals, chemical food based products etc. FACOR is well known nationally and internationally for 620 million Rupees. As a pioneer, the company has always been eager to utilize the opportunities for growth and diversification in the related areas and for that reason FACOR has acquired/set up…… A mini-steel plant at Nagpur (Maharashtra) to produce quality steel. A charge – chrome plant located at D.P. Nagpur, randia, dist. Balasore, costing around 45 crores. This is a 100% Export Oriented unit with a production capacity of 50,000 tons per annum.

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AMANITIES FOR EMPLOYEES: The company with its progressive ideas has very much alive to its special obligations to the community and its employees as well, such as: a) WELFARE b) HEALTH & FAMILY PLANNING c) CANTEEN d) RECREATIONAL ACTIVITIES e) EDUCATIONAL FACILITIES f) CULTURAL & SPORTS g) PLACES OF WORKSHIP h) TV & VCR FACILITIES i) KALYANA MANDAPAM j) SOCIAL ACTIVITIES k) OEU LIONS EYE HOSPITAL l) BALVIHAR FOR ORPHANS m) WOMEN WELFARE CENTRE n) NARINIKETAN. School for Deaf & Dumb & Mentally retarded, a school for Blind and Handicapped children. For well being & improving the socio economic conditioned in the area also. ANALYSIS OF WAGE AND SALARY ADMINSTRATION: The following are the allowances which are given to employees and to the workers in FACOR

ACTING ALLOWANCE: 1) FOR REGULAR WORKMEN: A: Acting allowance will be paid to the workmen in the grade of 01,02 and 03 Grades in case they work on any day in a vacancy in a permanent sanctioned post of 1,2,3 and 4 grade respectively, at the rate of Rs.30/- per day provided and said vacancy is due to the absence of the workmen on the higher grade but not of workmen who has been awarded the said higher grade by virtue of length of services without getting the designation in the higher grade. 22

B: Any workmen who have been awarded the next higher grade due to length of the services only will be eligible for acting allowances when on any day he works in the vacancy of the higher unit he is promoted to the higher cadre by change of designations and when permanent vacancy arises in the higher cadre.

2) FOR CASUAL WORKMEN: Acting allowance shall also be paid to the casual operation when they are engaged in place of permanent workmen in the higher category of 03 & 04 grade at the rate of Rs.30/- per day. No acting allowance will they are engaged in the place of 2 grade personnel.

GENERAL: 1) Acting allowance shall not be paid. a) Unless there is a temporary vacancy of permanent sanctioned higher category. b) If there is a permanent vacancy filled in the same category or the same grade. 2) Claims for the acting allowance from all departments must be routed through Personnel department only. 3) Regarding making of the details and the workmen engaged in acting places. DFR (daily foreman report) should be confirmed so that time office can follow acting allowance formula accurately. 4) If any workmen to refuse to act in higher grade against the instructions of his supervisors with a workmen will disqualify himself for the further promotions of higher cadre and the concerned head and the departments are suggested to make a note of such refusal and intimate the personnel department for nothing the personnel file of concerned employee.

REVISION OF ACTING ALLOWANCE: In accordance with the clause 10 of the settlement dated 11-03-1974 the workmen will be paid acting allowance equivalent to the differences at the minimum of two pay scale concerned. If he carries out duties of higher category.

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Subsequently, management has enhanced acting allowance wide notice SMPA/FPL, dated 27-03-1987 to @ 30/- day in order to further motivate the workmen to act in higher position is and when temporary vacancy arises in order to given unity to workmen to make themselves complement for the job in higher position and be considered for higher position when a vacancy in a higher cadre arises IT is also mentioned in the said notice that if any workmen refuses to act a higher cadre against the instructions of superiors the said workmen will disqualify himself for the future promotion of higher cadre. In the foreign contest we once again enhance allowance form Rs.22/- to Rs.30/- per day with the same objective as mentioned under working in higher position and once he is promoted he would be in a position to carry out the job easily. Therefore, whenever the workmen are asked to act higher position they are advised to obey and act in higher position to avoid being disqualified from promotion.

WORKMEN PAY SCALES FROM 01.07.2011: A) 02 Rs. 3150-50-3450-53-3768-56-4104-59-4458-62-4830-65-5220-68-5628-71-6054/B) 2A Rs. 3300-53-3618-56-3954-59-4308-62-4680-65-5070-68-5478-71-5904-74-6348/C) 03 Rs. 3450-56-3786-60-4146-64-4530-68-4938-72-5370-76-5826-80-6306-84-6810/D) 3A Rs. 3600-60-3960-65-4350-70-4770-75-5220-80-5700-85-6210-90-6750-95-7320/E) 04 Rs. 3750-65-4140-70-4560-75-5010-80-5490-85-6000-90-6540-95-71110-100-7710/F) 4A Rs. 3900-85-4410-95-4980-105-5610-115-6300-125-7050-135-7860-145-8730-1559660/G) 14.

4050-95-4620-107-5262-119-5976-131-6762-143-7620-155-8550-167-9552-179-

10626/H) 15. 4200-130-4980-145-5850-160-6810-175-7860-190-9000-205-10230-220-11550-23512960/-.

SUPERVISORY PAY SCALES: W.E.F.01.06.2009 (NEW SCALES) GRADE: JM 60: Rs.4500-175-5200-195-5980-215-6840-235-7780-255-8800/AM 61: Rs.5000-215-5860-240-6820-265-7880-290-9040-315-10300/-

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SAM 62: Rs.5500-255-6520-285-7660-315-8920-345-10300-375-11800/DM 63: Rs.6000-295-7180-330-8500-365-9960-400-11560-435-13300/SDM 64: Rs.6500-335-7840-375-9340-415-11000-455-12820-495-14800/M 65: Rs.7000-375-8500-420-10180-465-12040-510-14080-555-16300/SM 66: Rs.7500-415-9160-465-11020-515-13080-565-15340-615-17800/AGM 67: Rs.8000-455-9820-510-11860-565-14120-620-16600-675-19300/DGM 68: Rs.8500-500-10500-560-12740-620-15220-680-17940-740-20900/GM: 69: Rs.10000-1000-14000-1150-18600-1300-23800-1450-29600-1600-36000/-.

CONVEYANCE ALLOWANCE (VEHICLE ALLOWANCE): Employees are eligible for vehicle allowance provided they maintain Scooter/motor cycle or cars to attend factory at the rate mentioned below: The vehicle shall stand registered in the employee name in the case of cycle evidence of purchase in the employee name shall be produced.

CAR ALLOWANCE: GRADE

ALLOWANCE P.M

63 & above

Rs.2500/-

SCOOTER ALLOWANCE: For all workmen Rs.530/- & supervisors Rs.560/-.

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MOPED ALLOWANCE: For all workmen Rs.320/- & supervisors Rs.350/-.

RULES FOR PAYMENT OF VEHICLE ALLOWANCE: 1. An eligible employee while submitting application for claiming vehicle allowance is required to

produce C-book of his vehicle to the personnel department to verify the ownership.

2. Personnel departments will in turn on being satisfied with the ownership intimate the eligible of vehicle allowance in this monthly salary as per their eligibility. 3. All the employees are eligible for vehicle allowance provided they produce their C-books of their vehicle to the personnel department once in a quarter for getting allowance subsequent quarter.

CYCLE ALLOWANCE: All permanent workmen and supervisory personnel are eligible for cycle allowance of Rs.65/- pm unskilled workmen Rs.30/- pm.

SPECIAL VEHICLE ALLOWANCE: Some employees whose duties also involve duties outside the plant premises are given special vehicle allowance of Rs.100/- pm in the addition to the vehicle allowance if they use their scooter motor cycle for such duties, the department head concerned should maintain a long book in such cases.

HOUSE RENT ALLOWANCE: All workmen who are not allotted quarters or choose to say in private houses are eligible for house rent allowance at the rate of Rs.12.5% of their basic salary subject to a minimum of Rs.400/- pm whichever is higher.

NIGHT SHIFT ALLOWANCE: Night shift allowance will be paid at the rate of Rs.12/- per their shift attend fully by a workmen. The eligible workmen are: 26

1.

Regular workmen.

In case of workmen works partially in third shift, he shall not be eligible for any night shift allowance for that night.

UNIFORM ALLOWANCE: Uniform allowance of Rs.450/- per annum is paid annually to certain categories of employees and above.

PETROL BUNK DUTY ALLOWANCE: Petrol bunk duty allowance of Rs.530/- is paid to the clerk of stores and paid to clerk pf stores and purchases section of materials department who attends to the issue of petrol or diesel to company‟s vehicle and employees vehicles.

TRAVELLING ALLOWANCE: An employee is eligible for traveling allowance if journey is undertaken for following purpose.  Tour (official)  For medical examination or treatment of an employee any member of his family of  Approved by company medical officer  To participate in sports, games and cultural programmers this authorized sponsor by the company.  To receive national awards.  To attend training programmers, seminars, conferences.  To appear in courts as witness or assessor.  For any other journey undertaken as per the instructions of the management.

27

ENTITLEMENT AND MODE OF TRAVEL: Entitlement and mode of travel in different pay ranges as mentioned below

SETTING ALLOWANCES: A person on joining is entitled from reimbursement of railway fare from itself, wife, dependent and children for travel from its place to shreeramnagar by the shortest route detailed below.

CATEGORY OF EMPLOYEES DRAWING: Basic salary per month

Eligibility Actual, air, train, taxi 1st Class, 2nd Class AC

AC

By Train 2nd class by train.

EXTRA WAGES:  These are granted on the basing on the recommendation of the departmental heads in case of employee works on one day off.  In case of employee works on extra hours beyond their duty.  In case of employees asked to work on paid holidays or optional holidays, one extra wage is given in the paid holiday.  In case of employee calming extra wage of the extra work after the normal working hours. Extra work of minimum three hours and above will be considered.  This system is for 5 grades. In case of assistant managers i.e., from grade 6 the extra hours is for 8 hours continuously after normal working hours, the employees from grade 7 are eligible for extra wages.  In case of deputy managers and Sr. Deputy Manager‟s works on Sunday as paid Holiday they are given compulsory d-off for that days.  Managers and above are not given extra recommendations for working d-off paid day.

28

CLASSIFICATION OF OVERTIME: The over time is classified as details below: 1) For emergency breakdown due to which production activity etc., get hampered. 2) To fill up sanctioned complement due to leave vacancy absence where usual workman could not be arranged. 3) For completion of normal work which could not be in regular time. For completion of annual of such works which are not being regular in nature but have asked to carry in regular time. COMPENSATORY D-OFF: SITUATION (1): 

If a workman works on day off paid/optional holiday workman will be granted in CD in he had worked for the while day on his day-off/paid-optional holidays.



Half CDO if he had worked only for half day off paid holidays.



Will be granted one CDO if he had worked for whole day on his day off/paid optional holiday.

FOR WORKERS: Section in charge will grant the CDO. If he had worked for whole day off/paid holiday or optional holiday.

FOR SUPERVISORS: 

Department Head will grant the CDO.



He will be granted one CDO if he had worked for whole day off/paid holiday or optional holiday.

SECTION (4): Sanction of CDO‟s at stretch.

SECTION (5): Time limit with in3 months, CDO‟s must be availed.

29

HUMAN RESOURCE MANAGEMENT DEFINITION: According to Flippo, human resource management is the planning, Organizing, directing and controlling of the procurement, development, compensation, integration Maintenance and reproduction of human resources to the individual, organizational and societal objectives are accomplished.  To help the organization to attain its goals by providing well-trained and well-motivated employees.  To utilize the human resources effectively in the achievement of organizational Goals.  To enhance the job satisfaction and self actualization of employees by Encouraging and assisting every employee to realize his or her full potential.  To establish and maintain productive, self respecting and internally satisfying working relationships among all the members of the organization.  To bring about maximum individual development of members of the organization by providing opportunities for training and advancement.  To develop and maintain a quality of work life which make employment, in the organization a desirable personal and social situation.  To maintain high employee morale and sound human relations by sustaining and improving various conditions and facilities.  To manage change to the mutual advantage of individuals, groups, the organization and the society.

PRINCIPLES OF HUMAN RESOURCE MANAGEMENT

1) PRINICIPLE OF MAXIMUM INDIVIDUAL DEVELOPMENT: This principle stresses on the development of every person working in an organization. By this employees will be able to develop themselves to the maximum extent of their capabilities. Their abilities, productivity and efficiency can be used for achieving the objectives of the organization.

30

2) PRINCIPLE OF SCIENTIFIC SELECTION: For the proper coordination between work and workers it is necessary to select the right person for the right job. Workers should be selected after a careful weighing of the requirements of the jobs. 3) PRINCIPLE OF HIGH MORALE: It is necessary to have a high morale among workers in an organization. 4) PRINCIPLE OF DIGNITY OF LABOR: “Work is worship” workers should feel proud feel of their work or labor. 5) PRINCIPLE OF TEAM SPIRIT: Team spirit must be developed in the workers. They should work collectively and they should feel collective responsibility for the attainment of the objectives of the organization. 6) PRINCIPLE OF EFFECTIVE COMMUNICATION: There must be effective channel of communication between the management and the workers. The orders of higher authorities should reach the workers, while workers requests and grievances should reach the higher authorities in a proper way. 7) PRINCIPLE OF FAIR REMUNERATION: Labor should be given fair and proper compensation for the work they rendered. They should also give fair incentives to recognize good performance. 8) PRINCIPLE OF EFFECTIVE UTILISATION OF HUMAN RESOURCES: The skill and abilities of human resources should effectively utilize. Proper training facilities should provide to workers. 9) PRINCIPLE OF PARTICIPATION: This principle emphasis the idea of labor participation in the management of the enterprise.

10) PRINCIPLE OF CONTRIBUTION TO NATIONAL PROSPERITY: This principle stresses to provide a higher purpose of work to all the employees and to contribute to national prosperity.

31

IMPORTANCE OF HUMAN RESOURCE MANAGEMENT: a) ORGANIZATIONAL SIGNIFICANCE :  Attracting and retaining the required talent through effective human resource planning, recruitment, selection, placement, orientation, compensation and promotion policies.

 Developing the necessary skills and right attitudes among the employees and performance appraisal etc.

 Securing willing cooperation of employees through motivation, participation grievance handing.

 Utilizing effectively the available human resources. b) PROFESSIONAL SIGNIFICANCE:  Developing people on continuous basis to meet the challenges of their jobs.  Maintaining the dignity of personnel at work place.  Providing proper physical and social environment at the work place to utilize the capabilities of the people effectively.  Providing environment and incentives for developing and utilizing creativity.

c) SOCIAL SIGNIFICANCE:  Maintaining balance between jobs and job sealers in terms of job.  Requirements and job seekers abilities and attitudes.  Providing most productive employment from socio psychological satisfaction can be derived.  Utilizing human capabilities effectively and matching rewards for the contribution made by people.

d) NATIONAL SIGNIFICANCE:  Increase in the size and complexity of organizations.  Rapid technological developments like automation and computerization.  Rise of professional and knowledgeable workers.

32

 Increasing workmen in the work force.  Growth of powerful nationwide trade unions.  Revolution of technology that might affect the work force.

Wage and Salary Administration Wage and salary Administration is essential application of a systematic approach to the problem of ensuring that employees are paid in a logical, fair

and

equitable manner. The

payment of wages and salary is an inbuilt system with human force for their

activity performed.

To what extent the payment of wages & salary is reasonable and adequate in consonance to the nature of the work performed. The payment of wages and salary is an inbuilt system with human force for their activity performed. The supply of labor is more than the demand and with the result there is exploitation of cheap labor policy. Later the advent of trade unionism helped to improve the working conditions of labor. Until Second World War, event the government adopted a FAIRE”

“LAISSEZ-

policy in this regard. It was as late as in 1947, which the industrial unrest becomes

so uncontrollable that a tripartite conference was convened of (1) Central and state govt. (2) Employers (3) Employees which resulted in Industrial trade resolution. The basic purpose of wage &salary administration is to establish and maintain an equitable Wage & salary structure. The secondary objective is to establish and maintenance of equitable labour –cost i.e. an optimal balancing of conflicting personnel interests so that satisfaction of employer and employee is maximized. It is concerned with the financial aspects of needs, motivation and rewards. Managers, therefore, analyze and interpret the needs of their employees so that rewards can be individually designed to satisfy these needs. The first and the most important problem in wage and salary administration is the establishment of base compensation for the job. This problem is enormously complicated by such factors as Supply and Demand, Labor organization, the firm‟s ability to pay, Variations in productivity and Cost of living, Government legislation, Including CIVICS RIGHTS ACT. 33

In order to attract and retain needed personnel for the organization, employees must perceive that compensation offered is equitable in relation to their inputs and relative contributions. The most likely to be used method to solve this problem at present would be job evaluation, a systematic and orderly process for establishing the worth of job. The importance of a pay system to an event of major importance to employees and its effects upon them cannot be ignored. It is a valid system if it results in a structure acceptable to both employee and employer. In general, structures that are internally and externally consistent have the greatest chances of affecting overall satisfaction. Under reward, Over-reward and inconsistency of reward not only tend to lead to lower satisfaction but encourage behavior that often proves dysfunctional to organizational objectives. A sound, systematic, consistent system of compensation determination will do much to promote equity and satisfaction, provided that such a system is understood and accepted by most employees. NEED FOR THE WAGE AND SALARY ADMINISTRATION: Wage and salary administration is very much needed in an organization. 

Reward employees according to efficiency and merit.



Attract and retain the services of desirable employees.



Get improved employee morale and productivity.



Keep labor cost within reasonable limits so as to safe guard the interests of shareholders, competitive worth of the organization and its product and profitability.



Helps the employees to compare the pay of

different employees with their skill,

knowledge, performance etc.

SALARY Fixed periodical payment to a person doing other than manual or mechanical work. It refers to monthly rate of May, irrespective of the number of hours put by an employee. WAGES: Payment paid for manual and mechanical work is wages. Represents hourly rates of pay. “wages means all remuneration, capable of being expressed in terms of money which would if the terms of the contract employment express or implied ,were fulfilled ,be payable to a person employed in respect of his employment or of work done in such employment”. 34

OBJECTIVES OF WAGE AND SALARY ADMINISTRATION:

The objective of wage and salary administration is numerous and sometimes conflict with each other.

1) TO ACQUIRE QUALIFIED COMPETANT PERSONNEL :

Candidates decide upon their career in a particular organization mostly on the basis of the amount of remuneration the organization mostly on the basis of the amount of remuneration the organization offers qualified and competent people join the best paid organization. As such the organization should aim at payment of salaries at that level where they can attract competent and qualified people.

2) TO RETAIN THE PRESENT EMPLOYEES :

If the salary does not present compare favorably with that of other similar organization. Employees quit the present one and join the other organization. The organization must keep the wage levels at the competent level, in order to prevent quite.

3) TO SECURE INTERNAL AND EXTERNAL EQUITY :

Internal equity does mean payment of similar wages for similar jobs within the organization. External equity implies payment of similar wages to similar jobs in comparable organization. 4) TO ENSURE THE DESIRED BEHAVIOUR : Good rewards reinforce desired behavior like performance loyalty accepting new responsibilities and changes etc. to keep labor and administration costs in line of the organization to pay. To protect in public as progressive employers and to comply with the wage legislations. To pay according to comply with wage legislations. To pay according to

35

the content land difficulty of the jobs and in tune with the effort and merit of the employees. To facilitate pay role administration of budgeting and wage and salary control. To simply collective bargaining procedure and negotiations. To promote organization feasibility.

SYSTEMS TO ACHIEVE THE OBJECTIVES: The objective is achieved by the use of the following systems:

JOB EVALUATION: All the jobs will be analyzed and graded to establish the pattern of internal relationships. It is the process of the determining relative worth of jobs. It includes suitable job evaluation techniques classifying jobs into various categories and determining relative value of jobs into various categories.

WAGE AND SALARY RANGES: Over all salary range for all the jobs in an organization is arranged. Each job grade will be assigned salary range. These individual salary ranges will be filled into an overall range.

WAGE AND SALARY ADJUSTMENTS: Overall salary grades of the organization may be adjusted on the data information collected about the salary levels of similar organizations. Individual salary may also be adjusted based on the performance of the individual employees.

PRINCIPLES OF WAGE AND SALARY ADMINISTRATION: There are several principles of wage and salary plan, policies and practices. The important among them are:  Wage and salary plans and policies should be sufficiently flexible.  Job evaluation should be done scientifically.  Wage and salary administration plans must always be consistent with organizational plans and programmes.

36

overall

 Wage and salary administration plans and programmes should be in

conformity with

the social and economic objectives of the country attainment of equity in income distribution and controlling inflationary trends.  Wage and salary administration plans and programmes should be responsive to the changing local and national conditions. These plans should simplify and expedite other administrative process.

ELEMENTS OF WAGE AND SALARY ADMINISTRATION:  Wage and salary system should have relationship with the performance, satisfaction and attainment of goals of an individual. Henderson identified the following elements of wage and salary administration.  Identifying the available salary opportunities, their costs, estimating the worth of its members of these salary opportunities and communicating them to employees.  Relating salary to needs and goals.  Developing quality, quantity and time standards relating to work and goals.  Determining the effort necessary to achieve standards.  Measuring the actual performance.  Comparing the performance with the salary received.  Measuring the job satisfaction gained by the employees.  Evaluating the unsatisfied wants and un reached goals of the employees.  Finding out the dissatisfaction arising from unfulfilled needs and unattained goals adjusting the salary levels accordingly with the view to enabling the employees to reach unreached goals and fulfill the unfulfilled needs. WAGE INCENTIVES: Wage incentives are extra financial motivates. They are designed to stimulate human effort by rewarding the persons, over and above the time rate remuneration for improvements in the present or targeted results.

37

TYPES OF INCENTIVES PLANS: HALSAY SYSTEMS: Under this system a standard time is fixed for the completion of job if the worker completes the job in less than the standard time the time actually spent on the job he is paid at hourly rate plus a bonus for the time saved.

ROWAN SYSTEM: Under this system, a standard time is allowed for job and a bonus is paid for time saved. The bonus is percentage of the workers part at a hourly basis. The percentage being equal to the proportion the proportion the time saved bears to standards is attained.

TAYOR DIFFERENTIAL PIECE RATE SYSTEM: This has a piece rate for output below standard and a piece rate per open above standard with a bonus of 50% of the hourly rate of wages when standard is attained.

MERRICK DIFFERENTIAL PIECE RATE SYSTEM: Straight piece rates are fixed up to 83% of standard o/p at which a bonus of 10% on reaching standard o/p, beyond standard o/p high piece rates.

GRANT TASK SYSTEM: Under this system for open below standard, the worker gets a guaranteed minimum hourly rated, on reaching standards o/p, he gets 20% bonus, for outputs exceeding the standards high piece rates are paid.

THE MECHANISM OF WAGE AND SALARY ADMINISTRATION: Salary is structured, fixed adjusted on the basis of several systems. The important among them are.

38

1) FACTORS EFFECTING SALARY LEVELS : REMUNERATION: Prevailing rates of remuneration in comparable industries constituted an important factor in determining the salary levels. The organization in the long run must pay at least equal to the going rate for the similar jobs in the similar organization. FIRM’S ABILITY TO PAY: One of the principle considerations is the firm‟s ability to pay. The firms should be able to pay the same even at the tough situation (loss).

COST OF LIVING: The cost of living is another important factor that influences the quantum of salary the employees expect that their purchasing power be maintained at least at the same level. If not increased by adjusting wages to changes in cost of living.

PRODUCTIVITY: An interesting development in wage determination has been productively standard this is based on the fact that productivity increase is also result of employees.

UNION PRESURE AND STRATEGIES: The wages are also after influence by the strength of various. There bargaining capacity and their strategies. GOVERNMENT LEGISLATION: Government legislations influence wage determination.

2) WAGE THEORIES : JUST WAGE THEORY: This was the first theory on wages advocated during medieval period. The essence of this theory is that the worker should be paid on the level of maintain himself and his family. 39

SUBSISTENCE THEORY: According to Ricardo “the laborers are paid to enable them to subsist and perpetuate the race without increase or diminution. STANDARD OF LIVING THEORY: Karl Marx pointed out that “wage of labor is determined by a traditional standard of living, which, in turn, is determined by the mode of production of the country concerned. THE WAGE FUND THEORY: According to J.S.Mill, the wages are determined on the basis of the relationship between the amount of fund allocated for the purpose of wage payment and number of workers in the country. Amount of fund allocated for wage payment Wages =

Number of workers

RESIDUAL CLIMANT THEORY: According to walker, the wages are determined on the basis of amount left after the payment of profits and interest to land, entrepreneur and capital respectively out of the production level. Amount of wages = production value – (rent + profits = interest) MARGINAL PRODUCTIVITY THEORY: According to J.B. Clark, the wages are determined on the basis of marginal contributions of the workers to production. The employer stops employing further workers where the contributions of most recently employed worker are equal to his wages.

40

BARGAINING THEORY OF WAGES: According to this theory the wages and other terms of employment are determined on the basis of the relative bargaining strength of the two parties, viz., the employer and the employees. Webs stated that, “the haggling of the market which under a system of the completion and individual bargaining determines the conditions of employment.

WORKMAN AND SUPERVISORS: No claim for CDOs will be entertained or granted after expiry of three months from date on which he worked in line of which CDOs be claimed.

WAGES AND SALARIY POLICY OF FACCOR ADVANCES POLICY: Monetary advantage is given to employees against the salaries for following purposes. 1) Festival advance.

1) FESTIVAL ADVANCE: 1). Festival is given to Hindu employees for Sankranthi. To Christmas for the Christian employees and Ramzan to Muslims. 2). To amount of advance is as follows. 3000/- recoverable in 8 installments.

INCREMENTS: The following are the increments given to the employees.

1) ANNUAL INCREMENTS: Annual increments of all the employees will be effected twice in a year as a matter convince as an annual increment will be awarded in January or in July. 2) SPECIAL INCREMENTS: Increments are awarded for employees for extra ordinary performance on job per direction on management.

41

FITMENT: If a workman‟s basic pay short by Rs.3/- and fit in to particular slab in a particular scale, such shortage will be covered by adding of amount to such shortage this benefit is extended only during the subsistence of union agreement 1989/93. Additional increment for completion of every 5 years of service.

BONUS: The following are the bonus given to the employees and workers as well.

1. ANNUAL BONUS: Annual bonus to all the employees is paid on accordance with the provision of payment of bonus act 1965 and its amendments from time to time. The financial year of the company is from 1st April to 31st March.

2.

ATTENDANCE BONUS: Attendance bonus is payable on the basic of attendance on quarterly basis to workmen

only. Quarterly means Jan-March, April-June, July-September, October-December of each calendar year. The payment details of attendance bonus are as follows: 1. Rs.330/- per quarter to workman who has put in full attendance in the quarter without taking any casual leave of sickness leave. 2. Rs.240/- per quarter to a workmen who has availed maximum one day casual leave on one day sickness leave and has full of attendance. 3. Rs.190/- per quarter to workmen who has availed maximum, two day casual leave or sickness leave and has balance full attendance. Attendance includes attendance leave, earned leave, weekly days off, paid holidays, special leaves. With effect of 01-06-2008 management has decided on union‟s request that special leave and leave for company planning operation are to be considered attendance.

42

FAMILY PLANNING INCENTIVES: Management will be paying family planning incentives to employees who are undergoing family planning operation with a view to promote small family norms against employees. The following is the family planning programme implemented to employees. Special leave for six days will also sanction to such of those employees who undergo family planning operation. The special leave will also be granted to the employees even of his/her spouse family planning operation.

COMMUNICATION: In FACOR, they do not have any communication policy but the media of communication are by phone, pens, notice board, circulars, notes etc.

NATIONAL AND PAID HOLIDAYS: 1. Management declares to paid holidays including 10 national holidays in a year as per unions and subject to approval of deputy commissioner of Vizag. 2. In addition of these ten days holidays two optional holidays given to employees. 3. Names of workmen decided to work on paid holidays are to be intimated to department section to time office one day before. 4. Workman who is called upon paid holidays is not forced to work as it is continuous manufacturing process. 5. Such of workmen who are asked to work on paid holidays to be given extra wages. 6. Extra wages for working on non paid holidays for supervisory staff with be given up to Sr. Asst. Manager can avail compensatory off holidays for such numbers in which worked. SCHEME OF INCENTIVES: These schemes of incentives shall be applicable from 01-01-1993 Subject to the condition that the revised rates of incentives will not be payable for the period during which normal production is effected due to any willful cause by the workmen. Incentives no 01-tapping incentives. Each members of the taping crew of the furnaces in each shift is eligible for this

43

incentive. The amount payable to each worker depends upon the material produces and the no.of tapping reaction done. POLLUTION CONTROL: FACOR fore saw the need of pollution control system as a responsibility and incorporated two stage Venture scrubber systems, bag house units to the furnaces and are being operated continuously maintain a clean environment around the industry. Continuous monitoring is being done by a separate pollution control wing that the pollution levels are far below and safe limits prescribed by the pollution control boards.

A beautiful green belt has been developed in an around the industry addition to the plants developed within the factors systematic plantation is done to preserve and to beautiful the environment. By a separate horticulture wing. The developed plantation covered with an area of about 100 acres.

And also the facilities for beneficiation and agglomeration of chrome ores

have been set up. Pilots for sintering of Manganese chrome ore fines and mechanize frequenting plant were set up. BRIEF DESCRIPTION OF PROVIDENCE OF FACOR: The employee provident Fund and miscellaneous provisions Act 1952, is a social Security Act. It was mainly passed with a view to make some provisions for the future of the individual workers after his retirement or for his dependents is case of early death. It is also framed to inculcate the habit of saving among the workers for the further contingencies. The main object of this act provide substantial security and timely monetary benefit and assistance to individual employee and their families when there are problems in need some assistance to meet their family and school obligations, and also to protect them, when they become older, disabled or and in case of early death of the employee and also in meeting some other contingencies. VARIOUS SCHEMES OF THE ACT: The employee provident fund & miscellaneous provisions Act 1952 has mainly 3 schemes to provide a broad and real recruit to the employee and their families. They are as follows: 

The Employees Provident Fund Scheme. 1952



The Employees Pension Scheme. 1995



The Employees Deposit Linked Insurance Scheme. 1973 44

REMITTANCE RATES: The employee has to remit by 15th of every month of the contributions and other charges at the following rates.

THE WAGE LIMIT (MAXIMUM) FOR ALL THE THREE SCHEMES IS 6,500:

SCHEME

CONTRIBUTION OF

EMPLOYER

EMPLOYEE FPF Scheme

12%

3.67%

Provident Fund

-----

------

Admin Charges

-----

1.10%

Employee Pension

-----

8.33%

-----

0.50%

-----

0.01%

Scheme Linked Insurance Scheme EDIT Adm Charges

(Subject to Min of 2) TOTAL

12%

13.61%

The employer and the Employee have to furnish various firms to Provident Fund Office for different purposed some of them are follows:

ABOUT E.S.I (EMPLOYEE STATE INSURANCE): The contribution of E.S.I is as follows: EMPLOYEE

1.75%

EMPLOYER

4.75%

45

CLARIFICATION ON CERTAIN UNDER ESI ACT: Following are the clarification confirmed by the regional office of ESI at Hyderabad which formed part of deliberation at the seminar on recent amendment to ESI (central) rules, 1950, held on 29-3-1977 at FAPCCI premises. Allowances which are COVERED & NOT COVERED the definition of wages and on which ESI deductions are to be made.

COVERED

NOT COVERED

1. Payment made for over time working

1.Cycle allowance (paid for using)

2. HRA

2.Coneyance allowance

3. Night shift/shift allowance

3.Lunch allowance per day of.

Attendance 4. Incentive payment made

4.Allowance paid to datary incidental

ABOUT ESI (EMPLOYEES STATE INSURANCE): The contribution of E.S.I is as follows: EMPLOYEE EMPLOYER

1.75% 4.75%



Payment for working on holidays.



Payment paid for acting in a higher post.

NOTE: The incentive payment made at interval exceeding 2 months also constitute as wage.

46

ANALYSIS AND INTERPRETATION OF THE STUDY 1. Are you happy with your job (a)YES (b) NO

TABLE NO: 1

SL.NO

OPTIONS

1 2

YES NO TOTAL

NO. OF RESPONDENTS 75 25 100

PERCENTAGE (%) 75 25 100

GRAPH: 1

100 90 80 70 60

NO.of respondents

50

percentage

40 30 20 10 0 YES

NO

TOTAL

47

ANALYSIS : In table no.1, it shows that75percentage of the respondes are happy with their job.25 percentage of respondents are not happy with their job . The maximum number of the respondents are of an opinion that they are satisfied with their job. Minimum number of respondents are of the opinion that they are not satisfied with their job.

48

2. Which factor is more important to have job satisfaction (a)Salary (b) Management

(c) Welfare benefits

(d) Working conditions

TABLE NO: 2

SL.NO 1

OPTIONS Salary

NO. OF RESPONDENTS 40

2 3 4

Management Welfare benefits Working condition TOTAL

PERCENTAGE (%) 40

35

35

10

10

15

15

100

100

GRAPH: 2

100 90 80 70 60 50 40 30 20 10 0

NO. OF RESPONDENTS PERCENTAGE (%)

49

ANALYSIS : In table no 2 , it show sthat 40 percentage of the employees say that their salary is important for job satisfaction, 35 percentage of employees say that their management is important for job satisfaction,10 percentage employees say that their welfare benefits is important for job satisfaction ,15 percentage employees say that their working conditions is important for job satisfaction. The maximum number of the respondents are of the opinion that they are satisfied with their salary.

50

3. The salary gives good feeling & personal accomplishment (a)Strongly agree (b) Agree

(c) Partly agree

(d) Disagree

TABLE NO : 3

SL.NO

OPTIONS

1 2 3 4

Strongly Agree Agree Partly Agree Disagree TOTAL

NO. OF RESPONDENTS 66 14 15 5 100

PERCENTAGE (%) 66 14 15 5 100

GRAPH: 3

100 90 80 70 60 NO. OF RESPONDENTS

50

PERCENTAGE (%)

40 30 20 10 0 Strongly Agree AgreePartly AgreeDisagree TOTAL

51

ANALYSIS :

In table no.3, 66percentage of the respondents strongly agree that they are satisfied with their salary, 14 percentage of them agreed, 15 percentage of them partly agreed and 5% of them totally disagree that their salary is not good. After survey it has been found that all the employees who are working in the FACOR are satisfied with their salaries and it gives good feelings and personal accomplishment to 66 percentage of them.

52

4. salary should be given on the basis of performance of the employee (a)Strongly agree (b) Agree

(c) Partly agree

(d) Disagree

TABLE NO: 4

SL.NO

OPTIONS

1 2 3 4

Strongly Agree Agree Partly Agree Disagree TOTAL

NO. OF RESPONDENTS 53 20 17 10 100

PERCENTAGE (%) 53 20 17 10 100

GRAPH: 4

100 90 80 70 60 NO. OF RESPONDENTS

50

PERCENTAGE (%)

40 30 20 10 0 Strongly Agree AgreePartly AgreeDisagreeTOTAL

53

ANALYSIS : Majority of the respondents i.e., 53 percentage of them strongly agree that salary are given on the basis of performance of the employees, 20 percentage of the respondents agree, 17 percentage of them partly agree and 10 percentage of them disagreed. The maximum number of respondents are of the opinion that salary should be given on the basis of performance and only minimum of them disagree.

54

5. Compensation commensurate with responsibility to all levels of employee (a)Strongly agree (b) Agree

(c) Partly agree

(d) Disagree

TABLE NO. 5

SL.NO

OPTIONS

1 2 3 4

Strongly Agree Agree Partly Agree Disagree TOTAL

NO. OF RESPONDENTS 20 67 6 7 100

PERCENTAGE (%) 20 67 6 7 100

GRAPH: 5

100 90 80 70 60 NO. OF RESPONDENTS

50

PERCENTAGE (%)

40 30 20 10 0 Strongly Agree AgreePartly AgreeDisagreeTOTAL

55

ANALYSIS : Most of the respondents agreed that the compensation commensurate with responsibility to all levels of employee i.e., 67percentage. But some of them strongly agree at 20 percentage, partly agree at 6 percentage and disagreed at 7 percentage. The maximum number of respondents are of the opinion that compensation commensurate should be done at all levels of employee. But minimum of them disagreed.

56

6. Are you getting the salaries on time every month (a)Yes (b) No

TABLE NO: 6

SL.NO

OPTIONS

1 2

Yes No TOTAL

NO.OF RESPONDENTS 100 0 100

PERCENTAGE (%) 100 0 100

GRAPH: 6

100 90 80 70 60

NO.OF RESPONDENTS

50

PERCENTAGE (%)

40 30 20 10 0 Yes

No

TOTAL

57

ANALYSIS : In table no.6, 100percentage of the respondents said that they are getting the salaries on time every month. None of them i.e., 0 percentage responded negatively. 100 percentage respondents stated that they are getting the salaries on time every month in company rules and regulations.

58

7. Whether wages, salaries and increments are followed every year (a)Strongly agree (b) Agree

(c) Partly agree

(d) Disagree

TABLE NO: 7

SL.NO

OPTIONS

1 2 3 4

Strongly Agree Agree Partly Agree Disagree TOTAL

NO. OF RESPONDENTS 76 10 10 4 100

PERCENTAGE (%) 76 10 10 4 100

GRAPH: 7

100 90 80 70 60 NO. OF RESPONDENTS

50

PERCENTAGE (%)

40 30 20 10 0 Strongly Agree AgreePartly AgreeDisagreeTOTAL

59

ANALYSIS :

In table no.7, it has found that 76 percentage of the respondents strongly agree, 10 percentage of them agree, 10 percentage of them partly agree and 4 percentage of them disagreed that the wages, salaries and increments are followed every year in the company. After the survey it has found that maximum number of respondents agreed that wages, salaries and increments are followed every year. Minimum number of them disagreed with it.

60

8. The Wages and Salary system for all employees in Facor is Satisfactory (a)Strongly agree (b) Agree

(c) Partly agree

(d) Disagree

TABLE NO : 8

SL.NO

OPTIONS

1 2 3 4

Strongly Agree Agree Partly Agree Disagree TOTAL

NO. OF RESPONDENTS 53 22 18 7 100

PERCENTAGE (%) 53 22 18 7 100

GRAPH: 8

100 90 80 70 60 NO. OF RESPONDENTS

50

PERCENTAGE (%)

40 30 20 10 0 Strongly Agree AgreePartly AgreeDisagreeTOTAL

61

ANALYSIS : In table no. 9, 53 percentage of the respondents strongly agree that they are satisfied with wages and salary system, 22 percentage of them agree, 18 percentage of them partly agree and 7 percentage of them disagreed. Maximum number of the respondents opinion that the wages and salary system in FACOR is Satisfactory. Minimum number of respondents opinion is that it is not Satisfactory.

62

9. Wage & Salary structure implemented according to qualification & experience (a)Strongly agree (b) Agree

(c) Partly agree

(d) Disagree

TABLE: 9

SL.NO

OPTIONS

1 2 3 4

Strongly Agree Agree Partly Agree Disagree TOTAL

NO. OF RESPONDENTS 35 44 12 9 100

PERCENTAGE (%) 35 44 12 9 100

GRAPH: 9

100 90 80 70 60 NO. OF RESPONDENTS

50

PERCENTAGE (%)

40 30 20 10 0 Strongly Agree AgreePartly AgreeDisagreeTOTAL

63

ANALYSIS :

In table no.9, after the survey it has found that 35 percentage of the respondents strongly agree, 44 percentage them agree, 12 percentage them partly agree and 9 percentage them disagreed that wages & salary structure implemented according to qualification and experience.Maximum number of respondents satisfied that wage and salary structure implemented according to qualification and experience. Minimum number of respondents did not satisfied with this.

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10. Bonus & Incentives are they relative to the employees contribution (a)Strongly agree (b) Agree

(c) Partly agree

(d) Disagree

TABLE NO: 10

SL.NO

OPTIONS

1 2 3 4

Strongly Agree Agree Partly Agree Disagree TOTAL

NO. OF RESPONDENTS 12 54 15 19 100

PERCENTAGE (%) 12 54 15 19 100

GRAPH: 10

100 90 80 70 60 NO. OF RESPONDENTS

50

PERCENTAGE (%)

40 30 20 10 0 Strongly Agree AgreePartly AgreeDisagreeTOTAL

65

ANALYSIS: In table no. 10, 12 percentage respondents strongly agree, 54 percentage respondents agree, 15 percentage respondents partly agree and 19 percentage respondents disagreed that bonus and incentives are relative to the employees‟ contribution. It has found that maximum number of the respondents agreed that Bonus and Incentives are relative to the employees‟ contribution. Minimum of them did not agree with that.

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11. Are you getting your pay as per the laws (a) Yes

(b) No

TABLE NO: 12

SL.NO

OPTIONS

1 2

Yes No TOTAL

NO.OF RESPONDENTS 100 0 100

PERCENTAGE (%) 100 0 100

GRAPH: 11

100 90 80 70 60

NO.OF RESPONDENTS

50

PERCENTAGE (%)

40 30 20 10 0 Yes

No

TOTAL

67

ANALYSIS :

In table no. 11, 100 percentage of the respondents said that they are getting their pay as per the laws. None of them i.e., 0 percentage responded negatively. 100 percentage respondents stated that they are getting wages according to law. Permanent employees are getting more than the minimum wages which includes their incentives and bonus on the basis of their experience. Contract labour are getting wages according to minimum wages act.

68

12. Are employees paid for overtime if their work over and above their contracted hours (a) Yes

(b) No

TABLE NO : 12

SL.NO

OPTIONS

1 2

Yes No TOTAL

NO.OF RESPONDENTS 100 0 100

PERCENTAGE (%) 100 0 100

GRAPH: 12

100 90 80 70 60

NO.OF RESPONDENTS

50

PERCENTAGE (%)

40 30 20 10 0 Yes

No

TOTAL

69

ANALYSIS : In table no. 12, it has found that 100 percentage of the respondents agree that the employees are paid for overtime and above their contracted hours. 0 percentage of them disagreed for that. The standard working hours in a week is 48hrs. As an organization FACOR avoids persistent working of extra hours. Employees are paid overtime with the monthly wages for any extra hours worked. 100 percentage employees responded to the favourably which shows that employees do get monitory benefits as per law when they put in extra hours at work due to business requirements.

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13. How frequently your wages and salary structure is modified (a) Yearly

(b) Half yearly

(c) Quarterly

(d) More than 1 year

TABLE NO : 13

SL.NO 1 2 3 4

OPTIONS Yearly Half yearly Quarterly More than 1 year TOTAL

NO. OF RESPONDENTS 55 20 15 10 100

PERCENTAGE (%) 55 20 15 10 100

GRAPH: 13

100 90 80 70 60 50 40 30 20 10 0

NO. OF RESPONDENTS PERCENTAGE (%)

ANALYSIS : 71

In table no. 13, 55percentage of the respondents say that wages and salary structure is modified every year. 20percentage of the respondents say that wages and salary structure is modified for half yearly. 15percentage of the respondents say that wages and salary structure is modified for quaterly. 10percentage of the respondents say that wages and salary structure is modified for more than one year.

14. Dose the company change DA as per the changes taking place in the environment 72

(a) Yes

(b) No

TABLE NO : 14

SL.NO

OPTIONS

1 2

Yes No TOTAL

NO.OF RESPONDENTS 75 25 100

PERCENTAGE (%) 75 25 100

GRAPH: 14

100 90 80 70 60

NO.OF RESPONDENTS

50

PERCENTAGE (%)

40 30 20 10 0 Yes

No

TOTAL

ANALYSIS : 73

In table no. 14, it is clear that only 75% answered favourably where as 25% felt that they were paid less , when they are asked about DA by the management. Maximum number of the respondents opinion is that they are getting DA according to law. Minimum of them disagreed with this.

15. What is your opinion in comparing salary/wage with similar 74

Industries? a) Very Good

b) Good

c) Bad

TABLE NO : 15 SL.NO

OPTIONS

1 2 3

Very Good Good Bad TOTAL

NO. OF RESPONDENTS 80 10 10 100

PERCENTAGE (%) 80 10 10 100

GRAPH: 15

100 90 80 70 60 50

NO. OF RESPONDENTS

40

PERCENTAGE (%)

30 20 10 0 Very Good

Good

Bad

TOTAL

ANALYSIS : 75

In table no. 15, it is clear that only 80% of employers are saying that they are very happy with the wage/salary that was provided by the FACCOR when comparing with other industries and 20% of employers are saying that it is good when comparing to other industry.

16. Suggestions 76

a) you want better salary b) More monitory benefits are expected

SUMMARY 77

An organization has to balance fairly financial and non financial rewards extrinsic awards. Effective awards and intrinsic awards. Effective reward system requires not only that the absolute level of compensation paid by an organization compares favorably but also enquires that it satisfies the principles of internal equity and equity with the job content. The employees gets pay satisfaction of the perceived salary is equal to actual salary received and actual salary is less than perceived salary the employee is dissatisfied with the salary. The remuneration paid by the employer for the services of hourly, daily, weekly and fortnightly employees. The remuneration paid to the clerical and managerial personnel employed on monthly or annual basis. It is the amount of remuneration for unit of time excluding incentives, overtime pay etc. Is the amount of wage fixed for the unit of time fixed on the basis of job evaluation standards. Is an assembly of all properly evaluated standard wage rate set from in the sequence according to the job and size of the rate. Refer to compensation given to the employees over and above wage rates which often is not directly related to output performance of time worked refer to special rates to certain period such as over time, Sundays and holidays. The objective of wage and salary administration is numerous and sometimes conflict with each other. Candidates decide upon their career in a particular organization mostly on the basis of the amount of remuneration the organization mostly on the basis of the amount of remuneration the organization offers qualified and competent people join the best paid organization. The organization should aim at payment of salaries at that level where they can attract competent and qualified people. If the salary does not present compare favorably with that of other similar organization. Employees quit the present one and join the other organization. The organization must keep the wage levels at the competent level, in order to prevent quite. Internal equity does mean payment of similar wages for similar jobs within the organization. External equity implies payment of similar wages to similar jobs in comparable organization. To protect in public as progressive employers and to comply with the wage legislations. To pay according to comply with wage legislations. To pay according to the content land difficulty of the jobs and in tune with the effort and merit of the employees. To facilitate pay role administration of budgeting and wage and salary control. To simply collective bargaining procedure and negotiations. To promote organization feasibility. 78

Over all salary range for all the jobs in an organization is arranged. Each job grade will be assigned salary range. These individual salary ranges will be filled into an overall range Overall salary grades of the organization may be adjusted on the data information collected about the salary levels of similar organizations. Individual salary may also be adjusted based on the performance of the individual employees. Indian Ferro Alloy Industry is not as old as the Steel Industry. From a humble start in the fifties the capacity has grown enormously with enough potential to increase exports in future. However, the high power tariff in India is the stumbling block. Though the industry started getting power from National Power Corporation at NTPC tariff, it is still higher than the power tariff available in countries like Norway, China, and Russia, Kazakhstan etc., which are a major producers and exporters of Ferro alloy too. What is more, the import duty on Ferro alloy has also been reduced drastically to 25 per cent in the post – liberalized era. Further, steel exporters are eligible to import their raw material including Ferro Alloys free of duty against advance license. With plenty of raw materials like ores and reluctant available in the country, what the industry needs is a level playing field by power being made available at international comparable tariff. The Indian Ferro Alloy Industry is more than four decades old, as produces Bulk and Noble Ferro Alloys. Through this Industry is not as old as the steel industry, its capacity has increased substantially from a humble start in the fifties, meeting the requirement of the steel industry in the country. The growth of the steel industry has not picked up as expected, whereas the growth of the Ferro Alloy Industry has stepped up, much more than the expected level. With the result, the capacity available in the country is much more in the Ferro Alloy Industry. It is a lot of potential to increase its exports in the near future. India has been bestowed with adequate resources of all basic raw materials required for the production of Manganese, Silicon and Chrome Alloys. Most of the Ferro Alloy Units have come up in the six States Andhra Pradesh, Madhya Pradesh, Maharashtra, Orissa and West Bengal, mainly due to availability and or proximity of the raw materials. Ferro Alloys is a power intensive industry. The total connected load of the industry has grown almost 8 to 9 times from 130 MVA in the mid sixties to over 1000 MVA as on date. With the result, the installed capacity of the industry is 1.5 million tones of Bulk and Noble Ferro Alloys. Capacity of Manganese Alloys is around 700,000 tones. Ferro Silicon 175.000 tones and Ferro Molybdenum, Ferro Vanadium, Ferro Tungsten, Silicon Magnesium, Ferro Titanium, Ferro Phosphorous, etc., around 20,000 79

tones. FACOR was established as a public limited company by the families of SHARAF‟S and MOR‟S. In the History of Ferro Alloys, this has become the first of its kind and a major producer of Ferro Manganese in the country. FACOR is not only a leader in the field of Ferro Alloys, but also produces special steels of high standard. Its diversified activities extended beyond mining and production of Ferro Alloys, to making the special steel and embrace the production and manufacture of synthetic yarn and maize products. Low Ferro Chrome was imported to India until 1966 to meet the demand of steel industry. Then, FACOR has step up a Ferro Chrome plant with two furnaces having capacity of about 12000mt low/high Carbon Ferro Chrome to substituted the imports of Ferro Chrome and meet the domestic demand along with Ferro Manganese Production and saved lot of valuable foreign occupies the first position as producer and exporter of Ferro Alloys, in the country. It is a pride for the organization for such credentials. It is the country‟s first Ferro Alloys Plant. It is the first plan to innovate and introduce Chromium Alloys and also the only single unit to meet country‟s requirements. It is the first unit to produce Magnesium Ferro Silicon.It is the first to take up the erection and commissioning of the wholly indigenous furnace without any foreign component or consultancy. The first in the country‟s to export Ferro Manganese. It is the first among the various Ferro Alloys, producing unit to take up the manufacture of low Carbon Ferro A FACOR has built up a good track record and developed into India‟s largest manufacturer and exporter of Ferro Alloys, and maintained this position over the time. Personnel Department. The personnel department plays a vital role in the organizational climate of any organization. The personnel department of FACOR has also drawn clear guidelines for personnel policies and procedures, their by setting up an atmosphere of mutual confidence and respect. Thus it helps to develop harmonious relations between management and the work force. A thorough job analysis is under taken and then existing employee pool is referred and matches to the required employee qualities with job specification, if it matches the employee is assigned the job, if not a new candidate will be introduced into the organization. One of the basic raw materials for FACOR is power, which constitutes shortage, and heavy and continuous power cuts and low voltages, production hampered and there were heavy losses due to non availability of finished goods at required time. So FACOR planned to establish its own power generate plant 80

during 1990-91 and the cost of generation is almost 50% of cost of power supplied by APSEB power generated in the plant is meeting also 50% of the FACOR requirement. The basic raw material for power plant lubricants is produced from HPCL Vizag. The FACOR provides employment nearly for 10000 employees and has been instrumental in building industrial township of Shreeramnagar (A.P) Durgaprasad and Sri Durgapur (Orissa). The raw materials are smelted/heated to 1500 to 2000c and then alloys are trapped from electric arc furnaces in molten states, at prescribed intervals, along with the bye-products which are called slag. The melt is separated into metal and slag and collected in receptacles. After cooling the metal and slag are handled separately. The organization must keep the wage levels at the competent level, in order to prevent quite. Internal equity does mean payment of similar wages for similar jobs with in the organization. External equity implies payment of similar wages to similar jobs in comparable organization. To protect in public as progressive employers and to comply with the wage legislations. To pay according to comply with wage legislations. To pay according to the content land difficulty of the jobs and in tune with the effort and merit of the employees. To facilitate pay role administration of budgeting and wage and salary control. To simply collective bargaining procedure and negotiations. To promote organization feasibility. Over all salary range for all the jobs in an organization is arranged. Each job grade will be assigned salary range. These individual salary ranges will be filled into an overall range Overall salary grades of the organization may be adjusted on the data information collected about the salary levels of similar organizations. Individual salary may also be adjusted based on the performance of the individual employees. The raw materials are smelted/heated to 1500 to 2000c and then alloys are trapped from electric arc furnaces in molten states, at prescribed intervals, along with the bye-products which are called slag. The melt is separated into metal and slag and collected in receptacles. After cooling the metal and slag are handled separately. The adoption of quality management system should be a strategic decision by the top management of an organization. The design and implementation of an organization‟s quality management system is influenced by varying needs, particular objectives, the products provided, the processes employed and the size and structure of the organization. This international standard is based on eight quality international standard to imply uniformity in the structure of quality 81

management systems of uniformity of documentation.To identify and meet the needs and expectation of its customers and the interested parties (people in the organization suppliers, owners, society) to achieve competitive advantage , and to do this effective and efficient manner and to achieve, maintain, and improve overall organizational performance and capabilities. The application of quality management principles not only provades direct benefits but also makes an important contribution to managing costs and risks. Benefit, cost and risk management considerations are important for the organization, its customers and other interest parties. FACOR has performed well during last four decades and its turnover is about Rs.3, 000/- million and is further seeking to diversify into other fields namely metallurgical, petro chemicals, chemical food based products etc. FACOR is well known nationally and internationally for 620 million Rupees. As a pioneer, the company has always been eager to utilize the opportunities for growth and diversification in the related areas and for that reason FACOR has acquired/set up a mini-steel plant at Nagapur (Maharashtra) to produce quality steel. A charge – chrome plant located at D.P. Nagpur, randia, dist. Balasore, costing around 45 crores. This is a 100% Export Oriented unit with a production capacity of 50,000 tones per annum. The employee provident Fund and miscellaneous provisions Act 1952, is a social Security Act. It was mainly passed with a view to make some provisions for the future of the individual workers after his retirement or for his dependents is case of early death. It is also framed to inculcate the habit of saving among the workers for the further contingencies.

The main object of this act provide substantial security and timely monetary benefit and assistance to individual employee and their families when there are problems in need some assistance to meet their family and school obligations, and also to protect them, when they become older, disabled or and in case of early death of the employee and also in meeting some other contingencies.

The capacity increase of the Ferro industry in general, followed the course to meet the planned target of steel industry in the country, and also to remain potential exporters of Ferro Alloys in the international market to earn substantial foreign exchange for the country. However, 82

the performance of the industry started deteriorating from the mid-sixties, due to various reasons, the foremost being, steep increase in the power tariff, fuel, oil, raw materials and transport charges. Exports started sliding from 1978 onwards. The eighties witnessed the maximum erosion in the export performance of the Ferro Alloy Industry. However, after initiation of the liberalization programmed, there has been a spurt in the export of Bulk Ferro Alloys. Like all other Sectors, exports from this sector have also increased. The Industrial development of any country depends upon the strengths of the basic industries like Iron and Steel, Cement, Power Generation, Electric and Electronic etc., steel is the life blood of any industry and also prime requirement for human development. Thus the Ferro Alloys are the basic raw materials for steel manufacture with various properties for different application. FACOR Shreeramnagar, works division is fulfilling this demand for steel industry in the country, thus has unmatched reputation of this-quality production not only in the domestic market but also in the international market.To help the organization to attain its goals by providing well-trained and well-motivated employees. To utilize the human resources effectively in the achievement of organizational Goals. To enhance the job satisfaction and self actualization of employees by Encouraging and assisting every employee to realize his or her full potential. To establish and maintain productive, self respecting and internally satisfying working relationships among all the members of the organization. To bring about maximum individual development of members of the organization by providing opportunities for training and advancement. To develop and maintain a quality of work life which make employment, in the organization a desirable personal and social situation. To maintain high employee morale and sound human relations by sustaining and improving various conditions and facilities.To manage change to the mutual advantage of individuals, groups, the organization and the society. Principle stresses on the development of every person working in an organization. By this employees will be able to develop themselves to the maximum extent of their capabilities. Their abilities, productivity and efficiency can be used for achieving the objectives of the organization.

FINDINGS 

Most of the employees satisfied with their job. 83



Many of the employees agreed that their salary is providing good feeling and accomplishment.



Most of the respondents agreed that rewards should be given on the basis of performance.



Maximum number of respondents agreed with the compensation.



Most of the employees agreed with the organization policies.



Mostly all the employees agreed that company is much concern about employees.



Many of the respondents agreed recognition of employee‟s contribution.



Most of the agreed that wages, Salaries and increments are followed every year.



Maximum number of the respondents agreed about the Wages and Salary system in FACOR is Satisfactory.



Many of the employees agreed that Wage and Salary structure implemented according to qualification and experience.



Many of the respondents agreed that Bonus and Incentives are relative to the employees contribution.



Mostly all the employees responded positively that they are getting their pay as per the laws



All the employees reacted positively that they are paid for overtime.



Maximum of the respondents agreed that they are getting benefits on time and when needed.



Above of the employees agreed that they are getting gratuity according to laws while leaving the job.

SUGGESTIONS 

The Wages and Salary policy adopted by management is not up to standard level. 84



The management is paying acting allowance if a person acts in place of another and plays additional expenditure. The additional expenditure can be avoided by employing multi skilled workers.



The management may announce efficiently based increments to attract deficient, skilled, committed and personal. So that the experienced skilled employee do not go to other small industries and create a competition to this organization.



Standard safety precautions are not followed at the work spot.



In order to solve the power problem management started a power plant but is not in use today it become a dead weight.

QUESTIONNAIRE

A STUDY ON EVALUATION OF WAGE & SALARY ADMINISTRATION 85

NAME: DESIGNATION:

1) Are you happy with your job a) Yes b) No 2) Which factor is here important to have job satiesfaction (a)Salary (b) Management

(c) Welfare benefits

(d) Working conditions

3) The salary gives good feeling & personal accomplishment. a) Strongly Agree b) Agree c) Disagree d) Strongly Disagree 4) Rewards should be given on the basis of better performance of the employee. a) Strongly agree b) Agree c) disagree d) Strongly disagree 5) Compensation commensurate with all levels of employee a) Strongly agree b) Agree c) disagree d) Strongly disagree 6) Are you getting the salary on time every month a) Yes b) No 7) Whether wages, salaries and increments are followed every year. a) Strongly agree b) Agree c) disagree d) Strongly disagree 8) The Wages and salary system for all Employees in FACOR is satisfactory. a) Strongly agree b) Agree c) disagree d) Strongly disagree 9) Wage & Salary structure implemented according to Qualification & Experience. a) Strongly agree b) Agree

c) disagree d) Strongly disagree

10) Bonus & Incentives are they relative to the employee‟s contribution. a) Strongly agree b) Agree

c) disagree d) Strongly disagree

11) Are you getting your pay as per the laws? 86

a) Yes

b) No

12) Are Employee‟s paid for overtime if their work overtime above their contracted hours? a) Yes

b) No

13) How frequently your wages &salary structure is modified a) Yearly

b) Half yearly

c) Quarterly d) More than 1 year

14) Dose the company change DA as per the changes taking place in the environment a) Yes

b) No

15) What is your opinion in comparing salary/wage with similar industries? a) Very Good

b) Good

c) Bad

16) Suggestions

a) You want better salary b) More monitory benefits are expected

BIBLIOGRAPHY  Human Resource Management. 87

- V.S.P. Rao  Human Resource Management. - K. Aswathappa  Human Resource Management, Excel publications. - N.K. Singh  HRD and Management. - Ghosh  Human Resource management, Oxford university press. - Jyothi

WEB SITES:

 www.management.about.com  www.humanresource.about.com

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