1.1 INTRODUCTION OF THE STUDY Employee Compensation is a vital part of human resource management.

Compensation management is a complex, non-transactional process which includes decisions reg arding benefits and variable pay. Administration of employee compensation is cal led compensation management. Compensation constitutes the single most important cost in most organiza tions. Therefore, the effectiveness with which compensation is designed and mana ged can provide a competitive edge. Compensation is equally important for the employee as it determines his or her s tandard of living and status in society. In other words, compensation affects a person economically, socially and psychologically. The study has been conducted to know the effectiveness of compensation m anagement in image labels pvt. Ltd. This study helps to provide sound wage and s alary which seeks to achieve, fair and equitable compensation, attract competent personnel, retain present employees, improve productivity, controls costs, esta blish job sequences and lines of promotion wherever applicable, improve union ma nagement relations, improve public image of the company.

1.2COMPANY PROFILE BACKROUND OF THE COMPANY IMAGE LABELS PVT LIMITED was established in the year 6.6 1996 as manufacturer of specialty pressure sensitive adhesive labels specific to the electronics, elect rical and automobile industries. The companys board of directors is Mr. SUJAN NA ILADY, Mr. GOPI M.R, Mr. JAYA SHANKAR .P, Mr. SREENIVASA REDDY. Promoters of the company are professionals with extensive experience in the grap hic specialty printing industry. All through the formative years, thrust has bee n on self-sufficiency and integration of support services into the main stream. Image labels are equipped with state-of-the-art technologies in design, pre-pre ss and till final products. Manufacturing facility covers a total work area of 6 0,000 sq. ft. clearly demarking the different product lines. Consistently the co mpany has grown at an average rate of 30% since inception. The company did not make much profit last year due to recession. It started with an amount of 19 lakhs and has made 100% profit in 10 years. It has reached a ma rk of 19 crores in the year 2006, and increasing every year. The company has sta te of the art technologies in design, pre-press and till final product. The company products are made for specific customers and hence the company do no t need much of advertising to get new clients. The long standing customers of th e company are Siemens VDOGE, Bharath Electronics, Compaq and Air Deccan. Company Infrastructure

The company have sound infrastructure, which allows us to utilize modern and eme rging technologies in the production process. Spread across a sprawling area of 60,000 square feet, manufacturing unit is well-equipped with state-of-the-art ma chines and equipment. The machines installed in the unit helps to design the entire range as per the international quality standards. Each and every machine is properly checked by skilled professionals to ensure flawless production. Sister units: 1. Auto striping pvt. ltd 2. Preston image pvt. ltd 3. SGRE labels pvt. Ltd 4. Ligature pvt.ltd 5. Fascia tek Customization The company is known in the industry for offering quality range of products . These products are designed as per the specific requirements of clients. They have the ability to customize our range as per the demands of our customers. Con sidering the on-going market trends, we provide effective customized solution to our valued clients. The team of designer works in close coordination with clients to comprehend their needs and preference regarding products. In addition, they also pay atten tion to clients feedback as it helps them in enhancing their range. Companys Team Team plays a significant role in meeting clients specific requirements.These professionals efficiently comprehends clients requirements and delivers cost eff ective and customized solution. They are highly experienced in their respective domain and follow stringent norms and processes to achieve total customer satisf action. The company has skilled designers who creatively design the entire range to meet the latest market trends. To meet the requirements of international qualit y standards quality controllers stringently check the products on well defined p arameters. The sales and marketing executives helps them to deliver products wit hin in stipulated time frame. Quality Assurance Since establishment, they have set up a quality control managements that h elp them to offer their range of products credentials material in line with inte rnational quality standards. With the support of our skilled designers and high end machines, they are able to offer innovative range of overlays & automobile a ppliances, labels, aviation placards, thermal insulation products, name plates a nd logos to our clients. The company procure finest raw material from renowned vendors such as 3M, GE , AVERY DENNISON, NITTO, AUTOTYPE and SERICOL to ensure flawless range. The quality controllers conduct rigorous inspection at every stage to ensure longer functional life of the product. They check our range on well-defined qua lity parameters to maintain industry standard in our product range. Through the company quality assurance policy, they established a strong foo thold in the international market. The quality assurance policy, which we follow throughout their production process, is as follows: Policy manufacturer and supplier of self adhesive pressure sensitive labels and related activities, is committed to enhance customer satisfaction by supplyi

ng quality products on-time, through continual improvement of processes in the o rganization PRODUCT PROFILE: The company specializes in the manufacture of special adhesive labels and is mak ing several products as per the customers requirements. The products are: Automotive Decals Auto Instrument Dials Barcode Labels Membrane Overlays PU Dome Labels Insulators & Gaskets Aviation Labels Brand Logos &Nameplates. Self adhesive labels Fascia Panels Warning and Caution Labels Security Labels Warranty labels Thermal pads (CPU and chip) Laser engraving High temperature labels Velcro Caution labels Foamex Nameplates

Auto instrument dials: Separate product line Flat, backlit, thermo-formed dials Automotive decals graphics: Decorative graphics for auto exteriors Labels for enclosures external applications Fascia panels and membrane overlays Embossed key pads Brand fascia decorative panels

Mission: The company aims to be a market leader in design and manufacture of self-adhesive labels for engineering and industrial applications and strive to benchmark its products with the very best available with a view to develop long-term relationsh ip with the customer. Vision: Product quality, pricing and delivery assurance are the key priorities keeping in view a long-term relationship with clients. Stringent total quality control & q uality assurance programs are constantly carried out to check on the processes a nd output. Quality Policy: Manufacturer and supplier of self adhesive pressure sensitive labels and related activities, is committed to enhance customer satisfaction by supplyi ng quality products on-time, through continual improvement of processes in the organization.

Customers for the company: Over the years the company has developed around 200 customers who contri bute significantly for the sales and growth of the company. Few of the major cus tomers are: L&T komastu American Power Conversion Wipro Sundaram plastics Seimens VDO Essae teroka Bharath electronics Ingersoll rand Hindustan Motors BHEL Hewlett Packard Compaq Pricol Air Deccan BPL group Elcotec Jet Airways TVS electronics Tyco electronics 3M Scheider electric Godrej TATA BP solar Volvo GE medical system

1.3 OBJECTIVES OF THE STUDY

PRIMARY OBJECTIVES To study the effectiveness of compensation management in IMAGE LABELS PVT. LT D at Bangalore. SECONDARY OBJECTIVES

To study the socio demographic factors of employees. To study the factors affecting compensation of employees. To study the whether the company provides fair and equitable wage and salary to the employees. To analyze whether the compensation is fixed based on job evaluation. To study whether the compensation is linked with performance appraisal of employ ees. To study the satisfaction level of employees related to fringe benefits.

1.4 SCOPE OF THE STUDY This study helps to identify the expectation level of employees related to their incentives benefit and other linked with compensation. This study helps the management to know the satisfaction level of employees rela ted to the wage and salary. This study helps to increase the productivity of the employees by providing fair compensation. This study helps the management to reduce absenteeism and turnover of employees.

1.5 LIMITATIONS OF THE STUDY The study is restricted to IMAGE LABELS PVT. LTD at Bangalore. The study is limited for one month only. The study is restricted to 70 respondents only. Due to time constraint it is difficult for the researcher to extract answer for open ended questions.

1.6 THEORETICAL PERSPECTIVE Compensation management Administration of employee compensation is called compensation managemen t of wage and salary administration. It involves formulation and implementation of policies and programmes relating to wages, salaries and other forms of employ ee compensation. It includes job evaluation, wage/salary survey, development and other incentives and control of payroll costs. The basic purpose of wage and salary administration is to establish and maintain an equitable wage and salary structure and an equitable labour cost str ucture. Employee compensation is a vital part of human resource management. Employee co mpensation may be classified into two categories: i) Base or primary compensation and ii) Supplementary compensation. Base or primary compensation refers to basic pay in the form of wages and salari es. It is fixed and non-incentive payment on the basis of time expended on the j ob. Supplementary compensation consists of incentive and variable payments, based on either individual output or output of the group as whole. An employees total compensation consists of four components. The relative proportion of each component in the total compensation varies from firm to firm . The first and generally the largest component is base compensation which means the fixed pay an employee receives on a regular basis, either in the form of a s alary or as wage. The second component is allowances such as house rent allowance (HRA), dearness allowance (DA) and city compensatory allowance (CCA). The third component is incentive pay designed to reward employees for good perfo rmance-linked bonus, share in profit, etc. The fourth component consists of benefits or indirect compensation or prequistie s such as company accommodation, company car, paid holiday, club membership, sto ck options, and so on. COMPONENTS OF COMPENSATION Monetary compensation package of employees generally consists of the following c

omponents: 1. Basic pay. The primary part of pay package is basic pay. For blue-collar workers basic wag e may be based on work done (piece wage system) but for white-collar employees, supervisory staff and managers, basic salary is generally time bound. Basic pay is generally determined through job evaluation which is the process o f systematically ascertaining the relative worth of a job. Pay differentials bet ween different jobs should be based on relative intrinsic worth of jobs. 2. Allowance. The allowances are paid in addition to basic pay. Some of these allowances are g iven below: a) Dearness Allowance. This allowance is given to protect real income against inflation. Generally, de arness allowance (DA) is paid as a PERCENTAGE as a PERCENTAGE of basic pay. b) House Rent Allowance. Employers who do not provide living accommodation pay house rent allowance (HRA) to employees. This allowance is calculated as a PERCENTAGE of basic pay. c) City Compensatory Allowance. This allowance is paid generally to employees in metros and other big cities whe re cost of living is comparatively high. City compensatory allowance (CCA) is ge nerally a fixed amount per month. d) Transport Allowance/Conveyance Allowance. Some employers pay transport allowance (TA) to their employees. A fixed sum is p aid every month to cover apart of travelling charges. In some cases medical allowance, educational allowance for children, Tiffin allo wance, etc are also paid. 3. Incentives. Incentive compensation is performance-linked remuneration paid with a view to in spire employees to work hard and do better. Both individual incentives and group incentives are used. Bonus, profit sharing, compensation on sales is some examples of incentive compensation. 4. fringe benefits/perquisites. Several types of benefits are paid particularly to senior managers, provident f unds, pensions, gratuity, encashment of earned leave, company house, company car , leave travel concession (LTC), medical aid, interest free loan, holiday homes, entertainment, stock options etc. are some examples of such benefits.

2.1RESEARCH METHODOLOGY The title of this research is A study on effectiveness of compensation management in image labels pvt ltd at Bangalore. The research emphasize mainly on arriving at findings and suggestions. Thus the methodology enumerates the steps and metho ds adopted to make the research a successful one. Pilot study: A pilot study was conducted with about 15 respondents from the company to ensure whether the respondents are able to understand and respond to the questions. Su

itable changes were incorporated in the interview schedule, according to the res ponse from the pilot study. 2.1.1 Research Methodology Purpose of the study Type of Investigation Research Interference Time Horizon Population Sampling Design Sampling Technique Sampling Method : Descriptive Study : Casual Study and Correlation Study : Minimal : One-Shot : 84 Sample Size-70 : Non-Probability Sampling Purposive Sampling Individual Respondents : Books & Journal Personally Administered questionnaire

: :

Sources of data Primary sources : Secondary Sources Data Collection Method :

Research An organized, systematic, critical, scientific investigation into a spec ific problem, undertaken with the objective of finding answers. Research design: A research design is an arrangement of condition for collection and anal ysis of data in a manner that aims to combine relevance to research purpose with economy in procedure. The researcher in this case has gone for descriptive rese arch. A descriptive study was undertaken in order to ascertain and be able to describe the variables of interest in a situation. The researcher has no control over the variable and can only report what was happened or what is happening. Type of investigation: a). casual study: the researcher has chosen casual study to find the effectivene ss of compensation. b).correlation study: to find the cause and effect relationship between 2 variab les. Research inference: Minimal: to examine the factors which influences and also to find the relation b etween experience and fair and equitable wage and salary. Time horizon: one shot The researcher conducted the study for which datas are gathered over a pe riod of months in order to answer a research question regarding the effectivenes s of compensation management. Sampling: The process of selecting items from the population so that the sample ch aracteristics can be generalized to the population. Sampling involves both desig n choice and sample size decisions. Sampling technique: non-probability:

A sample design in which the elements in the population do not have a kn own or determined chance of being selected as sample subjects. The elements in t he population do not have any probabilities attached to their being chosen as sa mple subjects. Purposive sampling: A non probability sampling design in which the required information is g athered from special or specific targets or groups of people on same rational ba sis. The two major types of purposive sampling-quota sampling. Quota sampling: A form of purposive sampling in which a predetermined proportion of peop le from different subgroups is sampled.

2.2 DATA COLLECTION METHOD Data collection methods are an integral part of research design. The sou rce of the information and the manner in which data are collected could well mak e a big difference to the rigor and effectiveness of the research project. The main sources of data are: 1. primary sources of data 2. secondary sources of data 1. Primary sources of data: Primary data refer to information obtained firsthand by the researcher on the v ariables of interest for the specific purpose of the study. Individuals of respond ents was selected as primary source of data. The researcher has selected questio nnaire and interview method to collect datas from the employees. Questionnaire A questionnaire is a preformulated written set of questions to which the respondents record their answers, usually within rather closely defined alterna tives. The questionnaire was personally administered to the individual responden ts. Instrument design: open-ended question close-ended question dichotomous multiple-choice Open- end question: The respondents are given freedom to express their views freely. The res

earcher has framed one open ended question to get data from the employees. Closed end question: It means respondents are restricted to express their views freely. The r esearcher has framed close ended questions to get data from the employees. Dichotomous question: It means two alternatives are given, a positive and negative one. the re searcher has framed 5 dichotomous questions to get data from the employees. Multiple choices: It means multiple items are given to the respondents to elicit a single response. The researcher has framed 19 multiple choice questions to get data fro m the employees. Interview method: Personal interview was conducted with the help of a questionnaire prepar e for the survey. 2. Secondary sources of data: Secondary data refer to information gathered from sources already existing. In t his project, the secondary data was collected from books & journals. The records and documents pertaining to the details of the organization and the employees c onstitute the secondary sources. TOOL FOR ANALYSIS The following statistical tools were used to analyze the result; 1) Percentage analysis 2) Chi-square test 3) Correlation 1. Percentage analysis: Percentage method is used for analysis and interpretation for most of the gathe red further, data was tabulated and classified, under different method Graphs ar e used for Interpretation of data wherever necessary. The Percentage is used for making comparison between two or more series of data. It can be generally calcu lated as No. of respondents favorable Percentage of respondent = -------------------------------------- x 100 Total no of respondents 2. Chi-square test The chi-square test is widely used to test the independence of attributes. It is applied to test the association between the attributes when the sample data is presented in the form of a contingency table with any number of rows or columns. Working rule: Set up the null hypothesis Ho: no association exists between the attributes. Alternate hypothesis H1 an association exists between the attributes. Calculate chi-square value Where, O= observed frequency E= expected frequency E= 2 = (O-E) 2/E

Corresponding row total x corresponding column total ----------------------------------------------------------------N = (c-1) x (r-1)

Degree of freedom at 5% level of significant

Where, c = number of column r =number of rows 3. Correlation The correlation technique is useful in explaining the relationship between two o r more variables. The degree of relationship between variable under consideratio n is measured by the use of correlation technique. Positive correlation Correlation between variables are positive value, it is called as positi ve correlation. Negative correlation Correlation between variables are negative value, it is called as negati ve correlation. Formula : N XY ( x) ( y) r = ----------------------------------------- NX2 (X) 2 x NY2 (Y) 2

R=correlation value N=no of variables XY= sum of X and Y variable X= sum of X variable Y=sum of Y variable

2.3 DATA ANALYSIS AND INTERPRETATION 2.3.1. TABLE SHOWING GENDER OF THE RESPONDENTS PARTICULARS Male 41 Female 29 Total 70 NO. OF RESPONDENTS 59% 41% 100% PERCENTAGE

Inference: From the above table, it is inferred that 59% of the respondents are mal e and 41% of the employees are female.

2.3.1. CHART SHOWING GENDER OF THE RESPONDENTS

2.3.2. TABLE SHOWING AGE OF THE RESPONDENTS PARTICULARS 20-29 Years 30-39 Years 40-49 Years Above 50 Years Total 70 NO. OF 54 15 1 0 100% RESPONDENTS 77% 21% 2% 0% PERCENTAGE

Inference: From the above table, it is inferred that 77% of the respondents age are between 20-29 years, 21% of the respondents age are between 30-39 years and 2% of the respondents age are between 40-49 years.

2.3.3. CHART SHOWING AGE OF THE RESPONDENTS

2.3.3. TABLE SHOWING MARITAL STATUS OF THE RESPONDENTS PARTICULARS Married 23 Single 47 Total 70 NO. OF RESPONDENTS 33% 67% 100% PERCENTAGES

Inference: From the above table, it is inferred that 67% of the respondents are sin gle and 33% of the respondents are married. 2.3.3. CHART SHOWING MARITAL STATUS OF THE RESPONDENTS

2.3.4. TABLE SHOWING EDUCATIONAL QUALIFICATION OF THE RESPONDENTS PARTICULARS 10th 6 12th 30 ITI 16 Diploma 10 NO. OF RESPONDENTS 9% 43% 23% 14% PERCENTAGE

UG Total

8 70

11% 100%

Inference: From the above table, it is inferred that 43% of the respondents are 12t h qualified, 23% of the respondents are ITI qualified, 14% of the respondents ar e diploma qualified, 11% of the respondents are UG qualified and 9% of the respo ndents are10th qualified.

2.3.4. CHART SHOWING EDUCATIONAL QUALIFICATION OF THE RESPONDENTS 2.3.5. TABLE SHOWING EXPERIENCE OF THE RESPONDENTS PARTICULARS Below 1 Year 1-2 Years 2-3 Years 3-4 Years Above 5 Years Total 70 NO. OF 12 28 20 7 3 100% RESPONDENTS 17% 40% 29% 10% 4% PERCENTAGE

Inference: From the above table, it is inferred that 40% of the respondents are 1-2 years experienced, 29% of the respondents are 2-3 years experienced, 17% of the respondents are below one year experienced, 10% of the respondents are 3-4 year s experienced and 4% of the respondents are above 5 years experienced.

2.3.5. CHART SHOWING EXPERIENCE OF THE RESPONDENTS

2.3.6. TABLE SHOWING INCOME OF THE RESPONDENTS PARTICULARS Below 2000 2000-3000 3000-4000 Above 5000 Total 40 Inference: From the above table, it is inferred that 43% of the respondents income are 3000-4000, 31% of the respondents income are above 5000, 17% of the responde nts income are 2000-3000 and 9% of the respondents income are below 2000. NO. OF 6 12 30 22 100% RESPONDENTS 9% 17% 43% 31% PERCENTAGE

2.3.6. CHART SHOWING INCOME OF THE RESPONDENTS

2.3.7. TABLE SHOWING SATISFACTION OF EMPLOYEES REGARDING WAGE AND SALARY PARTICULARS NO. OF Highly Satisfied Satisfied 30 Neither Satisfied Nor Dissatisfied 13 Highly Dissatisfied Total 70 100% RESPONDENTS 2 3% 43% Dissatisfied 19% 10 14% PERCENTAGE 15 21%

Inference: From the above table, it is inferred that 43% of the respondents are satisfied, 21% of the respondents are neither satisfied nor dissatisfied, 19% of the respon dents are dissatisfied, 14% of the respondents are highly dissatisfied and 3% of the respondents are highly satisfied regarding wage and salary. 2.3.7. CHART SHOWING SATISFACTION OF EMPLOYEES REGARDING WAGE AND SALARY 2.3.8. TABLE SHOWING COMPENSATION POLICY FOLLOWED IS EASILY UNDERSTANDABLE PARTICULARS NO. OF RESPONDENTS Strongly Agree 5 7% Agree 24 34% Neither Agree Nor Disagree 16 Disagree 18 26% Strongly Disagree 7 10% Total 70 100% PERCENTAGE 23%

Inference: From the above table, it is inferred that 34% of the respondents agree, 26% of the respondents disagree, 23% of the respondents neither agree nor disagr ee, 10% of the respondents strongly disagree and 7% of the respondents strongly agree.

2.3.8. CHART SHOWING COMPENSATION POLICY FOLLOWED IS EASILY UNDERSTANDABLE 2.3.9. TABLE SHOWING COMPENSATION POLICY IS INFORMED TO ALL PARTICULARS Yes 45 No 25 Total 70 NO. OF RESPONDENTS 64% 36% 100% PERCENTAGE

Inference: From the above table it is inferred that 64% of the respondents say yes compensation policy is informed to all and 36% of the respondents says No.

2.3.9. CHART SHOWING COMPENSATION POLICY IS INFORMED TO ALL

2.3.10. TABLE SHOWING WAGE AND SALARY ARE REVISED AND REVIEWED PERIODICALLY

PARTICULARS NO. OF RESPONDENTS Strongly Agree 12 17% Agree 24 34% Neither Agree Nor Disagree 12 Disagree 16 23% Strongly Disagree 6 9% Total 70 100%

PERCENTAGE 17%

Inference: From the above table it is inferred that 34% of the respondents agree, 2 3% of the respondents disagree, 17% of the respondents strongly agree, 17% of th e respondents neither agree nor disagree and 9% of the respondents strongly disa gree.

2.3.10. CHART SHOWING WAGE AND SALARY ARE REVISED AND REVIEWED PERIODICALLY 2.3.11. TABLE SHOWING COMPENSATION WILL REDUCE ABSENTEEISM AND TURNOVER OF EMPLO YEES PARTICULARS Yes 57 No 13 Total 40 NO. OF RESPONDENTS 81% 19% 100% PERCENTAGE

Inference: From the above table it is inferred that 81% of the respondents accept t he incentives will reduce absenteeism and turnover of employees and 19% of the r espondents say no.

2.3.11. CHART SHOWING COMPENSATION WILL REDUCE ABSENTEEISM AND TURNOVER OF EMPLO YEES

2.3.12. TABLE SHOWING FAIR AND EQUITABLE WAGE AND SALARY TO ALL EMPLOYEES PARTICULARS NO. OF RESPONDENTS Strongly Agree 1 2% Agree 29 41% Neither Agree Nor Disagree 18 Disagree 17 24% Strongly Disagree 5 7% Total 70 100% PERCENTAGE 26%

Inference: From the above table, it is inferred that 41% of the respondents agree, 26% of the respondents neither agree nor disagree, 24% of the respondents disagr ee, 7% of the respondents strongly disagree and 2% of the respondents strongly a gree.

2.3.12. CHART SHOWING FAIR AND EQUITABLE WAGE AND SALARY TO ALL EMPLOYEES 2.3.13. TABLE SHOWING COMPENSATION IS FRAMED ACCORDING TO JOB EVALUATION PARTICULARS NO. OF RESPONDENTS Strongly Agree 2 3% Agree 41 59% Neither Agree Nor Disagree 21 Disagree 5 7% Strongly Disagree 1 1% Total 70 100% PERCENTAGE 30%

Inference: From the above table, it is inferred that 59% of the respondents agree, 30% of the respondents neither agree nor disagree, 7% of the respondents disagre e, 3% of the respondents strongly agree and 1% of the respondents strongly disag ree.

2.3.13. CHART SHOWING COMPENSATION IS FRAMED ACCORDING TO JOB EVALUATION

2.3.14. TABLE SHOWING JOB MATCHES YOUR SALARY PARTICULARS Yes 50 No 20 Total 70 NO. OF RESPONDENTS 71% 29% 100% PERCENTAGE

Inference: From the above table it is inferred that 71% of the respondents yes and 29% of the respondents say no to the job matches your salary.

2.3.14. CHART SHOWING JOB MATCHES YOUR SALARY

2.3.15. TABLE SHOWING TARGET FIXED BY THE MANAGEMENT IS A ACHIEVABLE ONE PARTICULARS NO. OF RESPONDENTS Strongly Agree 14 20% Agree 32 46% Neither Agree Nor Disagree 14 Disagree 8 11% Strongly Disagree 2 3% Total 70 100% PERCENTAGE 20%

Inference: From the above table, it is inferred that 46% of the respondents agree, 20% of the respondents strongly agree, 20% of the respondents neither agree nor disagree, 11% of the respondents disagree and 3% of the respondents strongly dis agree.

2.3.15. CHART SHOWING TARGET FIXED BY THE MANAGEMENT IS AN ACHIEVABLE ONE

2.3.16. TABLE SHOWING COMPENSATION PROVIDED MATCHES WITH THE COST OF LIVING PARTICULARS NO. OF RESPONDENTS Strongly Agree 3 4% Agree 21 30% Neither Agree Nor Disagree 26 Disagree 16 23% Strongly Disagree 4 6% Total 70 100% PERCENTAGE 37%

Inference: From the above table, it is inferred that 37% of the respondents neither agree nor disagree, 30% of the respondents agree, 23% of the respondents disagr ee 6% of the respondents strongly disagree and 4% of the respondents strongly ag ree. 2.3.16. CHART SHOWING COMPENSATION PROVIDED MATCHES WITH THE COST OF LIVING 2.3.17. TABLE SHOWING COMPENSATION INSISTS YOU TO INCREASE YOUR PERFORMANCE PARTICULARS NO. OF RESPONDENTS Strongly Agree 8 11% Agree 38 54% Neither Agree Nor Disagree 16 Disagree 6 9% Strongly Disagree 2 3% Total 70 100% PERCENTAGE 23%

Inference: From the above table it is inferred that 54% of the respondents agree, 2 3% of the respondents neither agree nor disagree, 11% of the respondents strongl y agree, 9% of the respondents disagree and 3% of the respondents strongly disag ree.

2.3.17. CHART SHOWING COMPENSATION INSISTS YOU TO INCREASE YOUR PERFORMANCE 2.3.18. TABLE SHOWING PROPER COMPENSATION WILL INCREASE PRODUCTIVITY PARTICULARS NO. OF RESPONDENTS Strongly Agree 13 19% Agree 35 50% Neither Agree Nor Disagree 9 Disagree 11 16% PERCENTAGE 13%

Strongly Disagree Total 70 100%

3%

Inference: From the above table it is inferred that 50% of the respondents agree, 1 9% of the respondents strongly agree, 16% of the respondents disagree, 13% of th e respondents neither agree nor disagree and 3% of the respondents strongly disa gree. 2.3.18. CHART SHOWING PROPER COMPENSATION WILL INCREASE PRODUCTIVITY 2.3.19. TABLE SHOWING SATISFACTION REGARDING THE EXISTING PERFORMANCE APPRAISAL METHOD PARTICULARS NO. OF Highly Satisfied Satisfied 25 Neither Satisfied Nor Dissatisfied 11 Highly Dissatisfied Total 70 100% RESPONDENTS 15 21% 36% Dissatisfied 16% 2 3% PERCENTAGE 17 24%

Inference: From the above table, it is inferred that 36% of the respondents are sa tisfied, 24% of the respondents are neither satisfied nor dissatisfied, 21% of t he respondents are highly satisfied, 16% of the respondents are dissatisfied, an d 3% of the respondents are highly dissatisfied regarding existing performance a ppraisal method. 2.3.19. CHART SHOWING SATISFACTION REGARDING THE EXISTING PERFORMANCE APPRAISAL METHOD 2.3.20. TABLE SHOWING SATISFACTION REGARDING THE REWARDS PROVIDED PARTICULARS NO. OF Highly Satisfied Satisfied 21 Neither Satisfied Nor Dissatisfied 8 Highly Dissatisfied Total 70 100% RESPONDENTS 11 16% 30% Dissatisfied 11% 9 13% PERCENTAGE 21 30%

Inference: From the above table, it is inferred that 30% of the respondents are sat isfied, 30% of the respondents are neither satisfied nor dissatisfied, 16% of th e respondents are highly satisfied, 13% of the respondents are highly dissatisfi ed regarding the rewards and 11% of the respondents are dissatisfied. 2.3.20. CHART SHOWING SATISFACTION REGARDING THE REWARDS PROVIDED 2.3.21. TABLE SHOWING TYPE OF REWARDS ARE PROVIDED TO EMPLOYEES PARTICULARS NO. OF RESPONDENTS Monetary rewards 17 24% PERCENTAGE

Non monetary rewards Both 26 37% Total 70 100%

27

39%

Inference: From the above table it is inferred that 39% of the respondents say non monetary rewards and 37% of the respondents say both and 24% of the respondents say monetary rewards. 2.3.21. CHART SHOWING TYPE OF REWARDS ARE PROVIDED TO EMPLOYEES

2.3.22. TABLE SHOWING REWARDS ARE PROVIDED PERIODICALLY TO THE EMPLOYEES PARTICULARS NO. OF RESPONDENTS Strongly Agree 4 6% Agree 30 43% Neither Agree Nor Disagree 21 Disagree 11 16% Strongly Disagree 4 6% Total 70 100% PERCENTAGE 30%

Inference: From the above table it is inferred that 43% of the respondents agree, 3 0% of the respondents neither agree nor disagree, 16% of the respondents disagre e 6% of the respondents strongly agree and 6% of the respondents strongly disagr ee rewards are provided periodically. 2.3.22. CHART SHOWING REWARDS ARE PROVIDED PERIODICALLY TO THE EMPLOYEES 2.3.23. TABLE SHOWING SATISFACTION REGARDING THE BONUS PROVIDED PARTICULARS NO. OF Highly Satisfied Satisfied 32 Neither Satisfied Nor Dissatisfied 11 Highly Dissatisfied Total 70 100% RESPONDENTS 4 6% 46% Dissatisfied 16% 7 10% PERCENTAGE 16 23%

Inference: From the above table it is inferred that 46% of the respondents are sati sfied, 23% of the respondents are neither satisfied nor dissatisfied, 16% of the respondents are dissatisfied, 10% of the respondents are highly dissatisfied an d 6% of the respondents are highly satisfied regarding bonus. 2.3.23. CHART SHOWING SATISFACTION REGARDING THE BONUS PROVIDED 2.3.24.1. TABLE SHOWING SATISFACTION REGARDING THE PROVIDENT FUND PARTICULARS NO. OF RESPONDENTS Highly Satisfied 27 39% PERCENTAGE

Satisfied 22 31% Neither Satisfied Nor Dissatisfied Dissatisfied 5 7% Highly Dissatisfied 1 2% Total 70 100%

15

21%

Inference: From the above table it is inferred that 39% of the respondents are high ly satisfied, 31% of the respondents are satisfied, 21% of the respondents are n either satisfied nor dissatisfied, 7% of the respondents are dissatisfied, and 2 % of the respondents are highly dissatisfied regarding provident fund. 2.3.24.1. CHART SHOWING SATISFACTION REGARDING THE PROVIDENT FUND 2.3.24.2. TABLE SHOWING SATISFACTION REGARDING THE GRATUITY PARTICULARS NO. OF Highly Satisfied Satisfied 29 Neither Satisfied Nor Dissatisfied 5 Highly Dissatisfied Total 70 100% RESPONDENTS 20 29% 41% Dissatisfied 7% 1 2% PERCENTAGE 15 21%

Inference: From the above table it is inferred that 41% of the respondents are sati sfied, 29% of the respondents are highly satisfied, 21% of the respondents are n either satisfied nor dissatisfied, 7% of the respondents are dissatisfied, and 2 % of the respondents are highly dissatisfied gratuity. 2.3.24.2. CHART SHOWING SATISFACTION REGARDING THE GRATUITY 2.3.24.3. TABLE SHOWING SATISFACTION REGARDING MEDICAL BENEFIT PARTICULARS NO. OF Highly Satisfied Satisfied 21 Neither Satisfied Nor Dissatisfied 15 Highly Dissatisfied Total 70 100% RESPONDENTS 5 7% 30% Dissatisfied 22% 3 4% PERCENTAGE 26 37%

Inference: From the above table, it is inferred that 37% of the respondents are nei ther satisfied nor dissatisfied, 30% of the respondents are satisfied, 22% of th e respondents are dissatisfied, 7% of the respondents are highly satisfied and 4 % of the respondents are highly dissatisfied regarding medical benefit. 2.3.24.3. CHART SHOWING SATISFACTION REGARDING MEDICAL BENEFIT 2.3.24.4. TABLE SHOWING SATISFACTION REGARDING INSURANCE PARTICULARS NO. OF RESPONDENTS Highly Satisfied 4 6% PERCENTAGE

Satisfied 16 23% Neither Satisfied Nor Dissatisfied Dissatisfied 11 16% Highly Dissatisfied 3 4% Total 70 100%

36

51%

Inference: From the above table, it is inferred that 51% of the respondents are nei ther satisfied nor dissatisfied, 23% of the respondents are satisfied, 16% of th e respondents are dissatisfied, 6% of the respondents are highly satisfied and 4 % of the respondents are highly dissatisfied regarding insurance. 2.3.24.4. CHART SHOWING SATISFACTION REGARDING INSURANCE 2.3.24.5. TABLE SHOWING SATISFACTION REGARDING HOUSING BENEFIT PARTICULARS NO. OF Highly Satisfied Satisfied 14 Neither Satisfied Nor Dissatisfied 29 Highly Dissatisfied Total 70 100% RESPONDENTS 1 1% 20% Dissatisfied 41% 13 19% PERCENTAGE 13 19%

Inference: From the above table it is inferred that 41% of the respondents are diss atisfied, 20% of the respondents are satisfied, 19% of the respondents are neith er satisfied nor dissatisfied, 19% of the respondents are highly dissatisfied re garding housing benefit and 1% of the respondents are highly satisfied. 2.3.24.5. CHART SHOWING SATISFACTION REGARDING HOUSING BENEFIT 2.3.24.6. TABLE SHOWING SATISFACTION REGARDING TRANSPORTATION PARTICULARS NO. OF Highly Satisfied Satisfied 31 Neither Satisfied Nor Dissatisfied 13 Highly Dissatisfied Total 70 100% RESPONDENTS 10 14% 44% Dissatisfied 19% 5 7% PERCENTAGE 11 16%

Inference: From the above table it is inferred that 44% of the respondents are sati sfied, 19% of the respondents are dissatisfied, 16% of the respondents are neith er satisfied nor dissatisfied, 14% of the respondents are highly satisfied, and 7% of the respondents are highly dissatisfied regarding transportation. 2.3.24.6. CHART SHOWING SATISFACTION REGARDING TRANSPORTATION 2.3.24.7. TABLE SHOWING SATISFACTION REGARDING LUNCH PARTICULARS NO. OF RESPONDENTS Highly Satisfied 14 20% PERCENTAGE

Satisfied 28 40% Neither Satisfied Nor Dissatisfied Dissatisfied 9 13% Highly Dissatisfied 5 7% Total 70 100%

14

20%

Inference: From the above table it is inferred that 43% of the respondents are sati sfied, 21% of the respondents are neither satisfied nor dissatisfied, 19% of the respondents are dissatisfied, 14% of the respondents are highly dissatisfied an d 3% of the respondents are highly satisfied regarding lunch. 2.3.24.7. CHART SHOWING SATISFACTION REGARDING LUNCH

CHI -SQUARE ANALYSIS 2.3.25. Table showing to find the difference between marital status and Satisfac tion of employees regarding wage and salary. Step 1: Null hypothesis (Ho) There is no significance difference between marital status and satisfact ion of employees regarding wage and salary. Alternate hypothesis (H1) There is a significance difference between marital status and satisfacti on of employees regarding wage and salary. Step 2: Wage and salary Marital status ssatisfied Married 1 Single 1 Total 2

Highly satisfied dissatisfied Highly 11 5 4 29 10 9 30 15 13

Satisfied dissatisfied 2 23 8 47 10 70

Neither satisfied nor di Total

Calculation of expected frequencies and chi square table Step 3: Expected value 0.66 1.34 9.86 20.14 4.93 10.07 4.27 8.73 3.29 6.71

Step 4: Observed frequency(O) 1 0.66 0.34 1 1.34 -0.34 11 9.86 1.14 19 20.14 -1.14 5 4.93 0.07 10 10.07 -0.07 4 4.27 -0.27

Expected frequency(E) 0.1156 0.1752 0.1156 0.0863 1.2996 0.1318 1.2996 0.0645 0.0049 0.0010 0.0049 0.0005 0.0729 0.0171

O E

(O - E)2

(O E)2/E

9 2 8

8.73 3.29 6.71

0.27 -1.29 1.29

0.0729 0.0084 1.6641 0.5058 1.6641 0.2480

TOTAL 2 = 1.2386 Step 5: Calculated chi-square value Degree of freedom = 4 Level of significance=5% Table value is =0.05 =9.488 = = = = (O-E)2/E 1.2386 (C-1) x (R-1) (5-1) x (2-1)

Step 6: Here calculated value is lesser than table value. Hence we accept the null hypothesis (Ho) and reject the alternate hypothesis (H1 ). Result: There is no significance difference between marital status and satisfact ion regarding wage and salary. 2.3.26. Table showing to find the difference between age and Satisfaction of emp loyees regarding wage and salary. Step 1: Null hypothesis (Ho) There is no significance difference between age and satisfaction of empl oyees regarding wage and salary. Alternate hypothesis (H1) There is a significance difference between age and satisfaction of emplo yees regarding wage and salary. Step 2: Wage and salary Age Highly satisfied ed dissatisfied Highly 20-29 year 1 26 30-40year 1 4 Total 2 30 15

Satisfied dissatisfied 11 9 4 4 13 10

Neither satisfied nor dissatisfi Total 7 54 3 16 70

Calculation of expected frequencies and chi square table Step 3: Expected value 1.54 0.46 23.14 6.86 11.57 3.43 10.03 2.97 7.71 2.29

Step 4:

Observed frequency(O) 1 1.54 -0.54 1 0.46 0.54 26 23.14 2.86 4 6.86 -2.86 11 11.57 -0.57 4 3.43 0.57 9 10.03 -1.03 4 2.97 1.03 7 7.71 -0.71 3 2.29 0.71

Expected frequency(E) 0.2916 0.1894 0.2916 0.6339 8.1796 0.3535 8.1796 1.1924 0.3249 0.0280 0.3249 0.0947 1.0609 0.1058 1.0609 0.3572 0.5041 0.0654 0.5041 0.2201

O E

(O - E)2

(O E)2/E

TOTAL 2 = 3.2404 Step 5: Calculated chi-square value Degree of freedom = 4 Level of significance=5% Table value is =0.05 =9.488 = = = = (O-E)2/E 3.2404 (C-1) x (R-1) (5-1) x (2-1)

Step 6: Here calculated value is lesser than table value. Hence we accept the null hypothesis (Ho) and reject the alternate hypothesis (H1 ). Result: There is no significance difference between age and satisfaction regardi ng wage and salary. CORRELATION ANALYSIS 2.3.27. To find the relationship between experience and Fair and equitable wage and salary. Variables Experience (X) 12 28 20 7 Fair and equitable wage and salary (Y) 1 Step 1: X 12 28 20 7 3 X=70 Step 2: N XY ( x) ( y) r = ----------------------------------------- NX2 (X) 2 x NY2 (Y) 2 = 5(1318) (70) (70) ------------------------------------------5 (1386) (70)2 x5 (1480)-(70)2 Y 1 29 18 17 5 Y=70 XY X2 12 144 812 784 360 400 119 49 15 9 XY=1318 Y2 1 841 324 289 25 X2= 1386 3 29

18

17

Y2= 1480

r = 0.75 Result: Hence quitable wage 2.3.28. Table able wage and there is a positive relationship between experience and fair and e and salary. showing to find the relationship between income and Fair and equit salary.

Variables Income (X) 6 12 30 22 Fair and equitable wage and salary (Y) 30 Step 1: X 6 12 30 22 X=70 Step 2: Y 30 18 17 5 Y=70 XY X2 36 900 144 324 900 289 484 25 XY=1016 Y2 180 216 510 110 X2= 1564

18

17

Y2= 1538

N XY ( x) ( y) r = ----------------------------------------- NX2 (X) 2 x NY2 (Y) 2 = 4(1016) (70) (70) ------------------------------------------4 (1564) (70)2 x4 (1538)-(70)2

r = 0.64 Result: Hen e there is a negative relationship between income and fair and equit able wage and salary.

CHI SQUARE ANALYSIS 2.3.29. Table showing to find existing performance appraisal method Step 1: Null hypothesis (Ho) There is no significance difference between satisfaction level and exist ing performance appraisal method. Alternate hypothesis (H1) There is a significance difference between satisfaction level and existing perfo rmance appraisal method. Step 2: PARTICULARS Highly satisfied Satisfied ssatisfied dissatisfied Highly dissatisfied Performance appraisal method 15 25 17 Step 3: Expected value E=70/5 = 14 Neither satisfied nor di 11 2

Step 4: Observed frequency(O) 15 14 1 25 14 11 17 14 3 11 14 -3 2 14 -12

Expected frequency(E) 1 0.07 121 8.64 9 0.64 9 0.64 144 10.29

O E

(O - E)2

(O E)2/E

TOTAL 2 = 20.28

Step 5: Calculated chi-square value Degree of freedom = 4 Level of significance=5% Table value is

= = = =

(O-E)2/E 20.28 n-1 5-1

=0.05 =9.488

Step 6: Here calculated value is greater than table value. Hence we accept the alternate hypothesis (H1) and reject the null hypothesis (Ho ). Result: There is a significance difference between satisfaction level and existi ng performance appraisal method.

3.1FINDINGS Most of the respondents gender is male, which is the highest recorded percentage. Most of the respondents age falls between 20-29 years, which is the highest recor ded percentage. Most of the respondents are single, which is the highest recorded percentage. Most of the respondents qualification is 12th, which is the highest recorded perc entage. Most of the respondents experience falls between 1-2 years, which is the highest recorded percentage. Most of the respondents income falls between 3000-4000, which is the highest reco rded percentage. Most of the respondents are satisfied with the wage and salary provided to them, which is the highest recorded percentage. Most of the respondents agree the compensation policy is easily understandable, which is the highest recorded percentage.

Most of the respondents agree that the compensation policy is informed to all, w hich is the highest recorded percentage. Most of the respondents agree that wage and salary are revised and reviewed per iodically, which is the highest recorded percentage. Most of the respondents accept that the incentives will reduce absenteeism and t urnover of employees, which is the highest recorded percentage. Most of the respondents agree that the fair and equitable wage and salary are pr ovided for all employees, which is the highest recorded percentage. Most of the respondents agree that the compensation is fixed based on job evalua tion, which is the highest recorded percentage. Most of the respondents accept the job matches their salary, which is the highes t recorded percentage. Most of the respondents agree that the target fixed by the management is an achi evable one, which is the highest recorded percentage. Most of the respondents neither agree nor disagree compensation matches with cos t of living, which is the highest recorded percentage. Most of the respondents agree that the compensation insist to increase performan ce, which is the highest recorded percentage. Most of the respondents agree proper compensation will increase productivity, wh ich is the highest recorded percentage. Most of the respondents are satisfied with the existing performance appraisal me thod, which is the highest recorded percentage. Most of the respondents are satisfied and neutral with the rewards, which is the highest recorded percentage. Most of the respondents are say non monetary rewards, which is the highest recor ded percentage. Most of the respondents are agree the rewards are provided periodically, which i s the highest recorded percentage. Most of the respondents are satisfied regarding bonus provided to them, which is the highest recorded percentage. Most of the respondents are highly satisfied with the provident fund, which is t he highest recorded percentage. Most of the respondents are satisfied with the gratuity, which is the highest re corded percentage. Most of the respondents are neither satisfied nor dissatisfied with the medical benefit, which is the highest recorded percentage. Most of the respondents are neither satisfied nor dissatisfied with the insuranc e, which is the highest recorded percentage. Most of the respondents are dissatisfied with the housing benefit, which is the highest recorded percentage. Most of the respondents are satisfied with the transportation, which is the high est recorded percentage. Most of the respondents are satisfied with the lunch, which is the highest recor ded percentage.

3.2 SUGGESTIONS The company can reduce the employees absenteeism and turnover by providing compen sation. The company can increase the productivity by providing proper compensation. The company can provide counseling to employees to resolve their dissatisfaction . The company can increase monetary rewards also it will make employees satisfied . The company can increase transportation facility to the employees.

3.3 CONCLUSION The project titled A study on effectiveness of compensation management in image labels Pvt Ltd at Bangalore. Since the compensation management is a toughe r one due to employees, it has to be considered seriously. The study reveals that the knowledge about compensation policies among e mployees is less. So it is necessary that the management should communicate its compensation policies to all employees. The study also reveals that a part of employees are dissatisfied regardi ng the rewards the company can increase providing rewards.