PROJECT REPORT ON COMPENSATION MANAGEMENT
TABLE OF CONTENTS 1. COMPEN COMPENSA SATI TION ON MANAG MANAGEME EMENT NT 2. EX EXEC ECUT UTIV IVE E SUMM SUMMAR ARY Y 3. INTRO INTRODUC DUCTIO TION N TO THE COMP COMPA ANY 4. HISTO HISTORY RY OF THE THE COMP COMPA ANY 5. OBJECT OBJECTIVE IVES S OF THE PROP PROPOS OSED ED STUDY STUDY 6. RES RESEAR EARCH CH ME METHO THODOL DOLOG OGY Y 7. SCOPE SCOPE RELEVA RELEVANCE NCE OF PROPOSED PROPOSED STUDY STUDY !. GLOB GLOBAL AL SC SCEN ENAR ARIO IO ". DAT DATA INTERPRE INTERPRETA TATIO TION N AND ANALYSIS ANALYSIS 1#.COMPANY NAME 11. 11. FINDINGS OF THE SURVEY$ SURVEY$ %. CONC CONCLU LUS SION ION &. RECOMMEND RECOMMENDAT ATIONS IONS ' SUGGESTIO SUGGESTIONS NS (. RE REF FERENCE ). APPENDIX *. +UES +UESTI TION ONNA NAIR IRE E
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EXECUTIVE SUMMARY
In the current scenario of competitive business environment, it has become important for a management student to equip themselves with the practical exposure of the corporate world. It was great privilege for me to understand the practical HUMAN !"#U$! !"#U$! aspects in our college college classroom on the topic $ompensation Management. In this regards I was as%ed to anal&'e the compensation pac%age in emplo&ee compensation management policies in hitavada and its distributors. It was anal&'ed that the emplo&ees were full& satisfied in respect to their increment in their salar& pac%age. An online and telephonic interview was being conducted and questionnaire was being distributed accordingl&. accordingl&. (he feedbac% of the respondents was up to the mar% and a positive conclusion could be made . (he compan& where I completed m& Internship was )(H! HI(A*A+A started in ---. M& topic for the pro/ect is )impact of newspaper in reputation reputation of an& organi'ation.
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WHAT IS COMPENSATION MANAGEMENT?
$ompensation management is pa&ment in the form of hourl& wages or annual salaries combined with benefits such as insurance, vacation, etc. that can positivel& or negativel& affect an emplo&ee0s wor% performance. It can be said that compensation is the !"#e$ that %in&s the emp"o'ee an& the emp"o'e( to!ethe( and in the organi'ed sector, this is further codified in the form of a contract or a mutuall& binding legal document that spells out exactl& how much should be paid to the emplo&ee and the components of the compensation pac%age. (he art art and science of arriving at the the right compensation ma%es all the difference between a satisfied emplo&ee and a disgruntled emplo&ee. (hough Maslow0s Need Hierarch& (heor& tal%s about compensation being at the middle to lower rung of the p&ramid and the other factors li%e /ob satisfaction and fulfillment being at the top, for a ma/orit& of emplo&ees, getting the right compensation is b& itself a motivating factor. Hence, emplo&ers need to quantif& the emplo&ee0s contribution contribution in a proper manner if the& are ar e to get the best out of the emplo&ee. (he provision of monetar& value in exchange for wor% performed forms the basis of compensation and how this is managed using processes, procedures and s&stems form the basis of compensation management. (he aspect of how s%ewed compensation management leads to higher attrition is discussed as well. (his aspect is important as studies have shown that a ma/orit& of the emplo&ees who quit companies give inadequate or s%ewed compensation as the reason for their exit. Hence, compensation mana!ement is somethin! that companies m#st ta)e se(io#s"' i* the' a(e to achie+e a competiti+e a&+anta!e a&+anta!e in the ma()et *o( ta"ent .
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)If &ou pic% the right people and give them the opportunit& to spread their wings 1 and put compensation and rewards as a carrier carr ier behind it 1 &ou almost don0t have to manage them. 2 Jack Welch Welch
+!3INI(I#N #3 $#M4!N"A(I#N MANA5!M!N(6 It is a s&stematic approach to providing monetar& value to emplo&ees in exchange for wor% performed. $ompensation ma& achieve purposes assisting in r ecruitment, /ob performance, and /ob satisfaction. satisfaction. 4!3A$! Human resource is the most vital resource for an& organi'ation . It is responsible for each and ever& decision ta%en, each and ever& wor% done. !mplo&ees should be managed and motivated motivated b& providing best remuneration and compensation compensation as per the industr& standards. standards. (he lucrative compensation compensation will also serve serve the need for attracting and retaining the best emplo&ees. $ompensation is the remuneration received b& an emplo&ee in return for his7her contribution to the organi'ation. It is an organi'ed practice that involves balancing the wor%1emplo&ee relation b& providing monetar& and non1monetar& benefits to the emplo&ees.
COMPONENTS O, COMPENSATION MANAGEMENT-
$ompensation oval6
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Components o* compensation-. /asic 0a!es1Sa"a(ies-. (his refers to the cash component of the wage structure based on which other elements of compensation ma& be structured. It is normall& a fixed amount which is sub/ect to changes based on annual increments or sub/ect to periodical pa& hi%es. It is structured based on the position of an individual in the organi'ation and differs from grades to grades. 2ea(ness a""o0ance-.
(he pa&ment of dearness allowance facilitates emplo&ees and wor%ers to face the price increase or inflation of of prices of goods and services consumed consumed b& him. (he onslaught of price increase has a ma/or bearing on the living conditions of the labor. (he (he increasing prices reduce the compensation to nothing and the mone&8s worth is coming down based on the level of inflation. (he pa&ment of dearness allowance, which ma& be a fixed percentage on the basic wage, enables the emplo&ees to face the increasing prices. /on#s-. 5 | Page
(he bonus can be paid in different wa&s. It can be fixed percentage on the basic wage paid annuall& or in proportion to the profitabilit&. profitabilit&. (he 5overnment also prescribes a minimum statutor& bonus bonus for all emplo&ees and wor%ers. wor%ers. (here is also a bonus plan which compensates the Managers and emplo&ees based on the sales revenue or 4rofit 4r ofit margin achieved. 9onus plans can also be based on piece wages but depends depends upon the productivit& productivit& of labor. labor. Commissions-.
$ommission to Managers and emplo&ees ma& be based on the sales revenue or profits of the compan&. compan&. It is alwa&s alwa&s a fixed percentage on the the target achieved. achieved. 3or taxation purposes, commission is again a taxable component of compensation. (he pa&ment of commission as a component of commission is practiced heavil& on target based sales. +epending upon the targets achieved, companies ma& pa& a commission on a monthl& or periodical basis. Mi3e& p"ans-.
$ompanies ma& also pa& emplo&ees and others a combination of pa& as well as commissions. (his plan is called combination or mixed plan. Apart from the salaries paid, the emplo&ees emplo&ees ma& be eligible for a fixed fixed percentage of commission upon achievement of fixed target of sales or profits or 4erformance ob/ectives. Nowada&s, most of the corporate corporate sector is following this practice. (his (his is also termed as variable component of compensation.
Piece (ate 0a!es-.
4iece rate wages are prevalent in the manufacturing wages. (he laborers are paid wages for each of the :uantit& :uantit& produced b& them. (he gross earnings of the labour labour 6 | Page
would be equivalent to number of goods produced b& them. 4iece rate wages improves productivit& and is an absolute measurement of productivit& to wage wage structure. (he fairness fairness of compensation is totall& totall& based on the productivit& and not not b& other qualitative qualitative factors. (he 5AN(( productivit& planning and (a&lor8s (a&lor8s plan of wages are examples of piece rate wages and the related consequences. Si!n on /on#ses-.
(he latest trend in the compensation planning is the lump sum bonus for the incoming emplo&ee. A person, who accepts the offer, is paid a lump sum as a bonus. !ven though this practice is not prevalent in most of the industries, !quit& research and investment ban%ing companies are pa&ing this to attract the scarce talent. P(o*it sha(in! pa'ments-.
4rofit sharing is again a novel concept nowada&s. (his can be paid through pa&ment of cash or through !"#4". (he structuring of of wages ma& be done in such such a wa& that, it attracts competitiveness and improved productivit&. 4rofit sharing can also be in the form of deferred compensation at the time of retirement. At At the time of retirement the emplo&ees ma& be paid a lump sum or retiral benefits. ,(in!e %ene*its-.
(he provision of fringe benefits does not attract an& explanation. (hese includes., a; $ompan& cars b; 4aid vacations c; Membership of social7cultural clubs 7 | Page
d; !ntertainment tic%ets7allowances. e; +iscounted travel tic%ets. f; 3amil& vacation pac%ages.
Reim%#(sements-.
!mplo&ees, depending upon their gradations in the organi'ation ma& get reimbursements based on the !xpenses incurred and substantiated. $ertain expenses are also paid based on expenses incurred during the course of business. In man& cases, emplo&ers provides advances to the emplo&ees for incurring certain expenses that are incurred during the course of the business. Some e3amp"es a(e-
a; (ravel expenses. b; !ntertainment expenses c; #ut of poc%et expenses d; efreshments expenses during office routine outside office premises. Sic)ness %ene*its1p(e!nanc'-.
(he increasing social consciousness of corporates corporates had resulted in the the pa&ment of sic%ness benefit to the !mplo&ees of companies. (his also includes pa&ments during pregnanc& of women emplo&ees. (he expenses incurred due to in/ur& or illness are ar e compensated or reimbursed to the emplo&ees. In certain companies, the death of an emplo&ee is compensated financiall&. $ompanies are also providing supporting financial benefits to the famil& of the bereaved emplo&ees. However, However, companies companies covering these cost cost through appropriate insurance policies li%e, Medical and life insurance. 8 | Page
(he whole idea of compensation management can be better understood through the following 4&ramid structure.
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4ea+e T( T(a+e" a+e" A""o0ance (hese allowances are provided to retain the best talent in the organi'ation. (he (he emplo&ees are given allowances to visit an& place the& wish with their families. (he allowances are scaled as per the position of emplo&ee in the organi'ation. Me&ica" Reim%#(sement #rgani'ations also loo% after the health conditions of their emplo&ees. (he emplo&ees are provided with medi1claims for them and their famil& members. (hese medi1claims include health1insurances and treatment bills reimbursements. /on#s 9onus is paid to the emplo&ees during festive seasons to motivate them and provide them the social social securit&. (he bonus amount amount usuall& amounts to one one month0s salar& of the emplo&ee. Specia" A""o0ance "pecial allowance such as overtime, mobile allowances, meals, commissions, travel expenses, reduced interest loans< insurance, club memberships, etc are provided to emplo&ees emplo&ees to provide them social securit& and motivate them them which improve the organi'ational productivit&. productivit&. IN2IRECT COMPENSATION COMPENSATION Indirect compensation refers to non1monetar& benefits offered and provided to emplo&ees in lieu of the services provided b& them to the organi'ation. (he& include =eave 4olic&, #vertime 4olic&, $ar polic&, Hospitali'ation, Insurance, =eave travel Assistance =imits, etirement 9enefits, Holida& Homes. 4ea+e Po"ic' It is the right of emplo&ee to get adequate number of leave while wor%ing with the organi'ation. organi'ation. (he organi'ations provide for paid leaves such as, casual leaves, medical leaves >sic% leave;, and maternit& leaves, statutor& pa&, etc. O+e(time Po"ic' !mplo&ees should be provided with the adequate allowances and facilities during their overtime, if the& happened to do so, such as transport facilities, overtime pa&, etc. Hospita"i5ation (he emplo&ees should be provided allowances to get their regular chec%1ups, sa& at an interval of one &ear. !ven their dependents should be eligible for the medi1 claims that provide them emotional and social securit&. Ins#(ance
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#rgani'ations also provide for accidental insurance and life insurance for emplo&ees. (his gives them the emotional securit& and the& feel themselves valued in the organi'ation. organi'ation. 4ea+e T(a+e" (he emplo&ees are provided with leaves and travel allowances to go for holida& with their families. "ome organi'ations arrange for a tour for the emplo&ees of the organi'ation. organi'ation. (his is usuall& done to ma%e the emplo&ees stress free. Reti(ement /ene*its #rgani'ations provide for pension plans and other benefits for their emplo&ees which benefits them after the& retire from the organi'ation at the prescribed age. Ho"i&a' Homes #rgani'ations provide for holida& homes and guest house for their emplo&ees at different locations. (hese holida& homes are usuall& located in hill station and other most wanted holida& spots. (he organi'ations ma%e sure that the emplo&ees do not face an& %ind of difficulties during their sta& in the guest house. ,"e3i%"e Timin!s #rgani'ations provide for flexible timings to the emplo&ees who cannot come to wor% during normal shifts due to their personal problems and valid reasons.
IMPORTANCE O,COMPENSATION
$ompensation and eward s&stem pla&s vital role in a business organi'ation. "ince, among four Ms, i.e. Men, Material, Machine and Mone&, Men has been most important factor, it is impossible to imagine a business process without Men. !ver& factor contributes to the process of production7business. production7business. It expects return from the business process such as rent is there turn expected b& the landlord, capitalist expects interest and organi'er i.e. entrepreneur expects profits. "imilarl& the labour expects wages from the process. =abor pla&s vital role in bringing about the process of production7business in motion. (he other factors being human, has expectations, emotions, ambitions and egos. =abor therefore expects to have fair share in the business7production process. =abor pla&s vital role in bringing about the process of production7business in motion. (he other factors being human, has expectations, emotions, ambitions and egos. 11 | P a g e
=abor therefore expects to have fair share in the business7production process. (herefore a fair compensation s&stem is a must for ever& business organi'ation. (he fair compensation s&stem will help in the following6 o
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An ideal compensation s&stem will have positive impact on the efficienc& and results produced b& emplo&ees. It will encourage the emplo&ees to perform better and achieve the standards fixed. It will enhance the process of /ob evaluation. It will also help in setting up an ideal /ob evaluation and the set standards would be more realistic and achievable. "uch a s&stem should be well defined and uniform. It will be appl& to all the levels of the organi'ation as a general s&stem.
(he s&stem should be simple and flexible so that ever& emplo&ee would be able to compute his own compensation receivable.
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It should be eas& to implement, i mplement, should not result in exploitation of wor%ers.
It will raise the morale, efficienc& and cooperation among the wor%ers. It, being /ust and fair would provide satisfaction to the wor%ers.
"uch s&stem would help management in compl&ing with the various labor acts.
"uch s&stem should also solve disputes between the emplo&ee union and management.
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(he s&stem should follow the management principle of equal pa&.
It should motivate and encouragement those who perform better and should provide opportunities for those who wish to excel.
"ound $ompensation7eward "&stem brings peace in the relationship of emplo&er and emplo&ees.
It aims at creating a health& competition among them and encourages emplo&ees to wor% hard and efficientl&.
(he s&stem provides growth and advancement opportunities to the deserving emplo&ees.
(he perfect compensation s&stem provides platform for happ& and satisfied wor%force. (his minimi'es the labour turnover. (he (he organi'ation en/o&s the stabilit&.
(he organi'ation is able to retain the best talent b& providing them adequate compensation thereb& stopping them from switching over to another /ob.
(he business organi'ation can thin% of expansion and growth if it has the support of s%illful, talented and happ& wor%force.
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o
(he sound compensation s&stem is hallmar% of organi'ation0s success and prosperit&. (he (he success and stabilit& of organi'ation is measured with pa&1pac%age it provides to its emplo&ees.
"U$$!"" 3A$(#" 3# $#M4!N"A(I#N MANA5!M!N(6 "uccess 3actors $ompensation delivers and ensures6 •
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Simp"i*ie&6 mo(e acc#(ate compensation p"an mana!ement7 Intuitive, highl& configurable base salar& and variable pa& >bonus, stoc%, and equit&; processes with defined, defined, streamlined wor%flows. Ca"i%(ation 0ith Pe(*o(mance Pe(*o(mance to ens#(e *ai(ness an& emp"o'ee with the suite, performance data is calibrated (etention7 Integrated with across the compan& and seamlessl& used with "uccess3actors $ompensation. Insi!ht *o( tota" compensation ana"'sis7 4re1built reports and dashboards for budget rollups, exceptions, legal compliance, emplo&ee details and perform1and1reward anal&sis. 4lus, compensation data can be combined with other other business data for more comprehensive comprehensive insight. Ass#(ance that %#&!ets a(e #se& 0ise"'7 Automated monitoring of compliance with variable pa& guidelines, %eeps pa&outs in line with budgets. 4lus, save time as bonus bonus and merit recommendations recommendations are automated from emplo&ee performance data. un ?what1if? scenarios to instantl& see how increasing merit pa& to top performers will impact budgets. Si!ni*icant"' (e&#ce& (is) 0ith imp(o+e& a#&it comp"iance7 +ata for audits is automaticall& stored, greatl& reducing this burden for compensation administrators.
9& rewarding great execution, &ou will retain more of &our top talent and drive organi'ational organi'ation al performance that exceeds all expectations. 4lus, benefit from improved budgeting accurac& and reduced ris%.
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COMPENSATION O, PAYRO44-
4a&roll refers to the administration of emplo&ees8 e mplo&ees8 salaries, wages, bonuses, net pa&, pa&, and deductions. deductions. It consist of the emplo&ee emplo&ee I+, emplo&ee name, date of /oining, dail& attendance record, basic salar&, allowances, overtime pa&, bonus, bonus, commissions, incentives, pa& for holida&s, vacations and sic%ness, value of meals and lodging etc. (here are some deductions such as 43, taxes, loan installments or advances ta%en b& emplo&ee. Pa'(o"" is a&ministe(e& on month"' %asis an& ann#a" %asis7
@hile administrating the monthl& pa&roll basic salar&, HA, HA, conve&ance, and other special allowances such mobile, etc are considered. (here are some deductions @hich are provident fund >-B; of the salar&, taxes taxes and other deductions.
+eductions such as tax and loan7advances ta%en b& the emplo&ee from 15 | P a g e
organi'ations are deducted onl& where applicable. +earness Allowance and House rent allowance is provided at a fixed rate r ate stated b& the emplo&ment law. 4rovident fund is deducted from the gross salar& of emplo&ee on the monthl& basis as per the emplo&ment law, which is provided later to the emplo&ee. #rgani'ations also contribute the same amount to the provident fund of the emplo&ee.
Annual pa&roll consists of leave travel allowances, incentives, annual bonuses, meal vouchers7reimbursements, vouchers7reimbursements, and medical reimbursements.
,i!#(e- Components o* Ann#a" Pa'(o""
Allowances, incentives, bonuses and reimbursements are based on organi'ational policies. policies. "ome organi'ations provided the allowances on a fixed rate sa& -CB or -B of the basic salar&. "ome organi'ations organi'ations go for performance based incentives.
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PAYRO44 MANAGEMENT-
4a&roll is defined as a method of administrating emplo&ees0 salaries in the organ or gani'a i'atio tions. ns. (he pro proces cesss con consis sists ts of cal calcul culati ation on of sal salari aries es and tax deductions of the emplo&ees, administrating the retirement benefits and disbursements of salaries to emplo&ees. It can also be called as an accounts activit& which underta%es the salar& administration of emplo&ees in the organi'ation. Administrating the emplo&ees0 salaries is not an eas& tas%, the H and accounts department wor% together to calculate and disburse the salar& to the emplo&ees. (hus, pa&roll management can be further subdivided into two sub processes, i.e. 4a&roll accounting and pa&roll administration.
Pa'(o"" Acco#ntin! 4a&roll accounting involves calculations of emplo&ees0 salaries and tax deductions. It also underta%es the activities such as preparation of tax returns, maintaining the pa&roll records, etc. Pa'(o"" A&minist(ation 4a&roll Administration Administration involves managerial activities such as maintaining emplo&ees0 records, referring emplo&ment laws. Here, the H comes into picture which maintains maintains the dail& record if emplo&ees emplo&ees attendance.
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,i!#(e- Pa'(o"" P(ocess
+atabase of emplo&ees is maintained. !mplo&ee0s details such as name, emplo&ee I+, basic salar&, dail& attendance, etc are recorded. 5ross "alar& is calculated after adding the allowances and incentives to the basic salar& of thee em th empl plo& o&ee ee.. Ne Nett sa sala lar& r& is ca calc lcul ulat ated ed b& de dedu duct ctin ing g th thee ta tax x an and d ot othe her r calculated deductions >loan installments, etc;. "A=AD N!5#(IA( N!5#(I A(I#N"6 I#N"6 "ala "alar& r& nego negoti tiat atio ions ns is the the proc proces esss wher whereb eb& & the the empl emplo& o&er er and and the the pote potent ntia iall emplo&ee reach agreement on the terms and conditions of emplo&ment. "alar& nego negoti tiat atio ions ns gene genera rall ll& & start start with with an offe offerr from from the the empl emplo& o&er er.. (he (he pote potent ntia iall
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emplo&ee can accept the offer or choose to negotiate details of the offer, usuall& b& a deadline stated b& the emplo&er. (he emplo&er states a deadline to ensure that salar& negotiations ta%e place in a short period of time so that the new emplo&ee can start wor% expeditiousl&. #r, the emplo&er reali'es that the& will not reach an agreement with the candidate and can contact contact other qualified qualified potential potential emplo&ees emplo&ees before the& are unavailab unavailable le in the /ob mar%et. "alar& negotiations are most effectivel& conducted b& one person who responds to the candidate after consulting with other organi'ation %e& pla&ers. Using a point person for salar& negotiations eliminates the possibilit& of mixed messages and misunderstood or poorl& communicated offers and responses. Using a point person in salar& negotiations is negotiations is another opportunit& for the emplo&er to continue to build the relationship with its selected candidate. "uccessful salar& negotiations result negotiations result in an emplo&ment contract that contract that is acceptable acceptable to both the emplo&er and the new emplo&ee. Sa"a(' Ne!otiations S#%8ect Matte(
An&th n&thiing and ever ever&t &th hing ing in the /ob he /ob offer offer is is nego negoti tiab able le.. (he (he am amo oun untt of compensation,, the benefits compensation the benefits pac%age pac%age,, and the wor%ing conditions including da&s and hours of emplo&ment, wor% flexibilit& options, title, and severance pa& are pa& are all negotiable. "ala "alar& r& nego negoti tiat atio ions ns depe depend nd on the the posi positi tion on.. =eew =eewa& a& for for sala salar& r& nego negoti tiat atio ions ns gene general rall& l& incr increa ease sess with with the the lev eveel of the po possit itiion within within the organi organi'at 'ation ion.. !xecutives and senior managers have the most leewa& for a range of executive compensation negotiations compensation negotiations around salar&, benefits, and perquisites or per%s per%s.. Approach salar& negotiations from a win1win perspective. Dou don8t want a new empl emplo& o&ee ee who who /oin /oinss &our &our orga organi ni'a 'ati tion on alrea alread& d& disg disgru runt ntle led d from from the the sala salar& r& negotiations. At the same time, &ou don8t want an overpaid emplo&ee who doesn8t earn his %eep and is ineligible for increases in compensation within a reasonable time frame. Sa"a(' Ne!otiations ,"e3i%i"it'
(he emplo&er8s salar& negotiations leewa& depends on these factors6
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• •
• • • • • • •
the level of the /ob within &our organi'ation, organi'ation, how how scar scarce ce the the s%il s%ills ls and and expe experi rien ence ce need needed ed for for the the /ob /ob are are in the the emplo&ment mar%et, the career advancement or stage and experience of the individual selected, the fair mar%et value for the /ob &ou are filling, the salar& range for the /ob within &our organi'ation, compensation paid to equivalent positions within &our geographic region, the existing economic conditions within &our /ob mar%et, the existing economic conditions within &our industr&, and comp compan an&1 &1sp spec ecif ific ic fact factor orss that that migh mightt affe affect ct the the give given n sala salar& r& such such as comparative /obs, &our culture,, culture &our pa& philosoph&, and &our promotion &our promotion practices. practices.
/ottom 4ine in Sa"a(' Ne!otiations Ne!otiations
3undamentall&, after &ou have considered these factors, the emplo&er must decide how badl& &ou want the candidate and the price &ou are willing to pa& to attract him or her to &our organi'ation. Dour long term satisfaction with &our emplo&ee choice is often a factor of the rationalit& of &our hiring decision and compensation pac%age versus an emotional emotional need to bring the emplo&ee emplo&ee onboard.
INTRO2UCTION TO THE COMPANY-
(he compan& started wa& before independence of India in ---. IN(#+U$!
6
Mr. 5opal Erishna 5o%hale.
IN$!4(I#N
6
---
H!A+ #33I$!
6
NA54U
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$I(D $I(D #33I$ #33I$!" !"
6
NA54 NA54U U,, *I+A *I+A9 9HA HA,, 9H#4 9H#4A A= >M4; >M4; AI4U >$.5.;
$HI!3 !+I(# !+I(# >$I(D; 6
Mr. ! * Murli
9AN$H H!A+
6
Mr. "a%al%ar
"U91 !+I(#
6
Mr. Mu%esh ". "ingh
O/9ECTIVE O, PRO9ECT
(he pro/ect aims at understanding the role of compensation management in newspaper business and management of vast distribution of an !nglish newspaper )HI(A*A+A in cities and villages of $hhattisgarh where literac& level is merel& F.B as per census -- data including G.B rural and -.FB urban literac&.
METHO2O4OGY
In order to achieve the above mentioned ob/ective and finish the stud& to perfection I have made a /udicious /udicious and a balanced balanced use of primar& and secondar& sources of data collection. (he primar& sources comprise of6 •
4ersonal visits to the several news paper agencies gather their feedbac%
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regarding compensation management process. Intense surve& of rural and urban areas of $5 and understanding the pattern
•
how such massive scale recruitment and its polic& ma%ing. +irect communication with the person who were %nowledgeable and in charge of operations in ever& field in (H! HI(A*A+A. (o facilitate facilitate m& operations I had first chal%ed out a detailed questionnaire covering in length all questions that would serve the purpose in the most efficient and productive manner. (he preparations and the formulation of the questionnaire was on the basis of man& assumptions and considerations vi'., the time the surve& audience would require for giving me the required
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answers, the importance of that time and cost involved and cop& of said questionnaire is included in this pro/ect a s annexure. Although the efforts were directed basicall& towards obtaining information required for the stud& from primar& sources to the maximum possible extent, due to factors li%e6 =ac% of cooperation anticipated from several news agencies. =ac% of time for answering the questionnaire b& the news officials Unavailabilit& of person in charge.
I had to resort to secondar& sources li%e websites, maga'ines, newspapers etc. 9ibliograph& of these sources forms a part of this pro/ect for read& reference of the reader. reader.
2ATA ANA4YSISANA4YSIS (he data gathered for this pro/ect are of complete relevance to m& topic of the pro/ect. (hese all surve& and statistics reveals clearl& that newspapers have a ma/or role to pla& in the image building of an& business and also its social social image in the societ&, societ&, out of all all sources news papers are considered to be the most reliable sources for getting authentic information regarding an& business or compan&. A small loophole loophole of compan& is revealed in seconds if conve&ed to the media. An& %ind of success if conve&ed to the societ& with the help of print media does wonders for the compan&. It ma& attract man& business opportunities after getting awareness about the compan& and its brand image.
(a%ing an example of (A(A "(!!= it is having huge brand value and also goodwill. It can be seen if newspapers and other print media do not highlight their each and ever& action and performance to the societ& it shall have never reached to the masses mass es that TATA STEE4 HAS VA4UES STRONGER THAN STEE47
22 | P a g e
#n the other hand if we observe also the reputation of RE4IANCE IN2USTRIES is comparativel& less lo&al in comparison to (A(A /ust because their wor% ethics ethics has been clearl& revealed revealed in newspapers ever& single da&.
REPORT
$#N(!N(" #3 (H! !4#(6 4A( I I N(#+U$(I#N #3 (H! $#M4AND $#M4AND 9I!3 IN(#+U$(I#N HI"(#D #3 $#M4AND7 #5ANIJA(I#N 4#3I=!. 4A( II IN(#+U$(I#N #9K!$(I*!" AN+ "$#4! $#N$=U"I#N" =IMI(A(I#N" !$#MM!N+A(I#N" AN+ #9"!*A(I#N 4A( III A44!N+IL 9I9=I#5A4HD !3!!N$!" 5=#""AD
/RIE, INTRO2UCTION O, COMPANY 23 | P a g e
#I5IN #3 )(H! HI(A*A+A (he purpose of ever& newspaper is to spread awareness and actual information in the societ&. soci et&. (he first ma/or newspaper n ewspaper in India2 India 2 (he 9enga 9 engall 5a'ette 5a' ette 2was 2was started in -C under the 9ritish 9ritis h a/. =ong after that during dur ing --- origin of (H! HI(A*A+A too% place where the real purpose behind starting this news dail& was ver& unique. +uring --- IN+IA was was under ma/or unrest due to continuous wars and struggle for independence which seemed to come true to all Indians with the help of freedom fighters. Amongst Amongst all those freedom fighter was Mr. 5opal Erishna 5o%hale . the hitavada was a brainchild of Mr. 5opal. 5opal. H!A+ #33I$!6 NA54U $U!N( A!A" "!*!+6 $5, M4, MAHAA"H(A,
PURPOSE /EHIN2 STARTING THE HITAVA2A$-
+uring --- basic motto behind starting HI(A*A+A was to conve& the feeling, oppositions, rage and protest to 9ritishers in a language intelligible b& them. +ue to language barrier of all newspapers 9ritishers found it hard to understand the rage of freedom fighters. After introducing an !nglish newspaper it became far easier in $entral India to conve& one0s thoughts and opinions against 9ritish rule in India.
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CONTENTS CONT ENTS O, HITA HI TAV VA2A NEWSPAPER NE WSPAPER 6
FRONT PAGE MAIN
REALITY
MONEY
EDITORIAL
SPORTS
NATION
FUTURE
WORLD WOMEN'S WORLD
3ront page6
It ma/orl& consists of all burning issues related to countr& and globall& which has an impact over Indian civilians. 25 | P a g e
4ast time6
(his page consists of all refreshing and health related news which energi'es a reader with new and unique information regarding his7her health and dail& routine. Also consist of interesting recipes which could stimulate the dail& life charm. !g !g cartoons, ama'ing facts and concepts.
Nation page6
All social, political and economical news pertaining to have an impact on the Indian civilians is mentioned in this section of page. An& such government news which has to be conve&ed to masses is conve&ed b& this page.
!ditorial page6
(his page consist of anal&tical and debatable news which is the result of thoughts and intense anal&sis of the eminent social wor%ers, businessman, authors and several other people involved in continuous stud& of burning issues globall&. globall&. (he& present a centrali'ed idea of ever& issue relating to either either social or political political sectors within or outside the countr&.
@orld page6
It relates to the issues of world which is current happening or follows up.
9usiness page6
It consists of all business and its performance in the mar%et. (he (op (op level companies, new mergers and acquisitions, financial information, collapsing of an& firm etc. (his is the section of newspaper which has a great impact over the business firms. Also a small news also is pro/ected to millions of online and offline readers.
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"ports page
It consist of news relating to all t&pes of pla&ers and their performance ma& it be cric%et, football, volle&ball, table tennis, lawn tennis an& group or communit& game organi'ed countr& wide or even abroad.
All the above mentioned pages are published and designed to cater several la&ers of the societ&. As As well as create awareness relating to all segments of the societ&.
$#M4AND 4#3I=!6 (H! HI(A*A+A comprises of below mentioned departments6
+esig
The Hitavada departmet!
Fia"e
#ir"$%ati& Tra!%ati Tra!%ati A""&$t Mar'eti Edit&ria% & ! g
nations and officers6 9AN$H H!A+
6
M. "AEA=EA
$HI!3 !+I(#
6
Mr. 9AN@AI=AA= 4UN+I(
!"I+!N( !+I(#
-
Mr 7 ! * MU=I
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"U91!+I(#
6
Mr. MUE!"H " "IN5H
!+I(#IA= IN$HA5!
6
Mrs. "U9HI "IN5H
(AN"=A(I#N H!A+
6
Miss "ANA (AME!!N
4#K!$( #*!*I!@6 IN(#+U$(I#N6 (he basic notion behind ma%ing pro/ect on the topic )impact of print media in $hhattisgarh business was to identif& the role of upcoming and ver& popular print media on the business of state having growth rate of --.B in second position after 5u/arat. #9K!$(I*! AN+ AN+ "$#4! #3 (H! 4#K!$(6 #9K!$(I*!6
#b/ective while ma%ing this pro/ect was to understand
the role of print media in the societ& and companies. anal&'e the effectiveness of print media in (o anal&'e increasing the business of state. understand the impact of print media in connection (o understand of suppliers1producers1customers. (o understand the business of print media and it0s functioning function ing with wit h the help of o f (H! HI(A* HI(A*A+A. (o understand the role of media for cosumer awareness and publici'ing the basic needs and awareness through advertisements.
Another ob/ective of m& pro/ect is )to understand the
distribution management of a newspaper compan&. As we can see in $hhattisgarh itself (H! HI(A*A+A circulates its newspapers in several areas including6 aipur 9astar 28 | P a g e
9hilai a/anadgaon 9ilaspur Eonta "ura/pur aigarh +antewada etc.
2ESCRIPTION
#=! #3 N!@"4A4!" IN $#M4AND0" 4U9=I$I(D6 Newspapers pla& a ver& ma/or ma/or role in spreading the news news good or bad to the masses. All %ind of activities ma& it be in the public or private sector is highlighted b& the newspapers. News papers pla& the below below mentioned roles in the business6 $reates a brand image of the compan& 5enerates business through providing them spaces for advertisements (hrough newspapers public sector underta%ings >4"U;do their man& ma/or
functions of as 6 o (ender issuing o $ontract request o ecruiting o esult declaration o 4erformance report
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Introduction of new plan eg. MN!5A, "A*A"HIE"HA
o
o o o
A9HIDAAN A9HIDAAN etc. et c. Notifications $ommunicate their updates and information to common public !mplo&ment news
!ven private companies are largel& benefited b& the newspapers li%e6 o o o o o o
Advertise their products 7 services Invite customers for investments 4ublici'e their brands. #ffer vacancies Intimate about their meetings and programs. 5et dail& updates of companies doing progress and match up
themselves to their benchmar%s. Also the other impacts of the newspaper cannot be ignored as in following cases6 o
(he common public gets authori'ed news and its details. All students and businessman rel& on newspapers to rectif& and be
o
sure about their authenticit& of the news. $an communicate their views to an& sector and an& level of the
o
countr& in written b& newspapers. "ocial groups or communities can demand for their own wish which is
o
in favor of the public eg. =o%pal bill b& anaa ha'are. 9& reading such newspapers one can %eep themselves updated with
o
countr& and sectors existing in the countr&.
IMPACT IMPACT O, NEWSPAPER NEWSPAPER ON /USINESS / USINESS PU/4IC1PRIV PU/4IC1PRI VATE$-
(here are several affects of being updated in newspapers although it has tremendous reach and penetration in several levels of the societ& but still it has few drawbac%s. +iagram showing t&pes of impact6
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impa"t! e"&&mi" p&!itive egative !&"ia% p&%iti"a% a% 4#"I(I*! IM4A$(6 $reates awareness Increases brand equit& "timulates sales "upports advertising 5enerates business Helps to communicate with other sta%eholders and share holders connected with the compan&.
!g 6 as per the information from K$9 the& told that after giving their advertisements in newspapers li%e (H! HI(A*A+A huge response has been 31 | P a g e
received from the areas where we can never thin% of. As currentl& rural mar%et is ver& fertile and untapped and if one allocates a small space in the newspaper then it is read and received b& all the farmers who hardl& have time to watch (* or listen to ads on radio.
NEGATIVE IMPACT-
arel& the case of negative impact occurs but if an& wrong source has a good name and relation in print media can spoil the name of other competitors b& spreading unwanted and fa%e news. !.g.6 in case of (A(A IN+U"(I!" the N!!A A+IA tape case a created rumors that even (A(A was also involved all the conversation were mentioned in the newspapers which created a ver& bad image for that compan& who has been a leader of business sector in terms of lo&alt& and integrit&. SOCIA4•
All the companies should focus on having good relations with the print
•
media. As man& organi'ation tr& and avoid their bad name in newspaper because it directl& hampers hampers their image in the societ&. societ&. $ompanies are largel& affected sociall& when few of news ma& be in favor
•
or against are mentioned in print media. It is on papers then it ma& be referred and exposed to man& la&ers of societ& and create an undesirable image. #n the other hand compan& has immense impact i mpact on goodwill when a good or appreciating news in printed in newspaper.
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•
•
!ach government organi'ation is also having great impact because of the print media. !g 5 "4!$(UM scam scam it shattered the image of of government and faith of common masses. $#4#A(! "#$IA= !"4#N"I9I=I(D 6 It is largel& effected b& media coverage once the event is successful it is not in the %nowledge of massive public unless printed or conve&ed to media. PO4ITICA4(he political affect is that all the democrac& is aware of the goods and •
•
bad of ever& political leader leader and %eeps an e&e while while voting and ma%e ma%e a fair /udgment. (his image is build up b& constant news mentioned in the newspapers
•
about that particular political part& of leader. It had immense impact on the reputation of that leader. @hile doing charit& or an& good wor% also the& are largel& affected
•
and benefitted. !ach and ever& political part& has a clear image in the minds of the
•
newsreader as the& follow up each and ever& action of the part& and leader as well. !g. Anna Ha'are had been highlighted soo effectivel& b& the media that he has been acclaimed nationwide and all the people belonging to several regions and states came to co1operate him for the anti1 corruption drive.
!$#N#MI$A=6 • • • • •
9usiness is %nown internationall& $reates awareness amongst all the economical sections "hare mar%ets and sensex have their dail& fluctuations 4romotes trade and commerce. +ue to increase in business name globall& it promotes trade and commerce of the industr&.
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5=#9A= (!N+" AN+ IM4!""I#N6 (he global trends and actions are conve&ed across the countr& and even outside. !g. =ib&an crisis is %nown b& each and ever& part of world. 3=#@ #3 +!"I5NA(I#N IN (H! HI(A*A+A >AI4U;6 (he publishing office of aipur was inaugurated b& the $HI!3 MINI"(! Mr. aman "ingh and other political leaders in the &ear CCC. It has affected the circulation of $hhattisgarh.
+iagram6
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A%%&"ati& O( Ne)! "&rre!p&det!
S"aig ad !t&rig imp&rtat e)!
&(
#&rre"ti& #&rr e"ti& ad re"ti*"ati& &( err&r!
F%&) &( e)! i the editig ad tra!%ati& departmet
#&mpi%atig the e)! prita+%e (&rm
i
t&
Mai%ig the da' ad "it, *%e! t& agp$r head &-"e
A(ter the *a% re"ti*"ati&! *%e! are "&verted it& e)!paper (&rmatt ad mai%ed +a"' t& raip$r &-"e
The!e *%e! are are !et it& pritig ma"hie! ad *a% "&pie! are read, (&r di!tri+$ti&!
$I$U=A(I#N 4#$!""6 (he circulation process is managed d&namicall& in the aipur branch of Hitavada. (he& have a s&stematic flow of news and its printing in the office.
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•
It0s a da& night process people wor% in shifts for publishing the newspaper in the rolls and circulate them. (here are two departments of 6 $it& department • +a% department • 3eature pages • 3ace 3ace •
All the circulations start earl& morning at O AM. +iagram showing circulation of newspaper6
pritig &( e)! it& paper (&rmatt
+$d%ig &( e)!paper a! per the area ad !$+!"ripti&
hirig &( age"ie! (&r "ir"$%ati& &( e)!paper
!edig &( e)!paper t& %&"ati&! made i a%% "itie! ad vi%%age! &( #G
ha)'er! pi"' the +$d%e! ad thr&) them t& the ed !$+!"ri+er !
re"ieve pa,met! (r&m the "$!t&mer! ad !ed it t& a""&$t! de&partme t
MAE!(IN5 #3 N!@"4A4!6 (he mar%eting of newspaper is ver& crucial and done in a ver& different manner, in the newspaper.
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+iagram showing how mar%eting of newspaper is done6
!p&!&r!hip ! "harit, )&r' !$rve, attra"tive p%a!
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. evet! &( g&vt/ g&vt/ &r "&mpaie! . !"h&&%! ad "&%%ege "&%%ege pr&gram
. +, &rgai0ig &rgai0ig "harit, )&r'! . %i'e i &rphaage ad a!hram! &r 1&&d ad d&r$ght a2e"ted area!
. havig a !$rve, i the area! a!!iged ad aa%,!ig )here the !$+!"ripti& rate! are %e!! i $m+er! ad !$+!"ri+e them/
. +, pr&vidig %$"rative !$+!"ripti& p%a! &( either 3$ater%, &r a$a%%, . a! i THE HITA4ADA 5 m&th! !$+!"ripti& i! give (&r R!/6789: ad a +$"'et )&th R!/ ;88 (ree
!mplo&ee satisfaction program • •
9onus is allotted to ever& emplo&ee P-C B on ever& +iwali !ach special feature page article is having a cost of s. CC per
•
article. Kob is for six hours and no extra time wor%ing Although newspaper has no holida&s except -O th August and th
•
Kanuar& but still each emplo&ee is giving turn wise wee%l& off. In complete &ear GC da&s leave is allotted to ever& emplo&ee.
•
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