Impact of Wage & Salary Structure on Employee's

Performance
UNDERTAKEN

HAVELL'S INDIA LIMITED

CHAPTER-1
INTRODUCTION
Objectives of the study
Scope of the study
Research Methodology

OBJECTIVES OF THE STUDY

To understand the wages and salary structure of various levels of employees and its significance
With respect to the satisfaction/motivation level of the employees.
To understand whether any relationship exist between wages and salary policy and cost control.
To understand the participation level of employees during formulation of wages and salary
Policy .
To understand the impact of wages and salary policy on the life style of the employees and
Their contribution to the society.

SCOPE OF THE STUDY

Wages and salary plans should be sufficiently flexible in the organization. With the help of wage
and Salary the job evaluation must be done in the organization. In future the employees standard
of living Will increase in future. These plans should simplify and expedite other administrative
processes. It Should be responsive to the changing local and national conditions.
My study would help the company to understand the expectations of employees in regard to
wages And salary also suggest the ways for motivating them with the help of monetary
incentives.

RESEARCH METHODOLOGY
Meaning of Research
Research refers to search for knowledge. Once can also define research as a scientific and
systematic search for information on a specific topic. In fact, research is an art of scientific
investigation.
Some people consider research as a movement, a movement from the known to the unknown. It
is actually a voyage of discovery. This inquisitiveness is the mother of all knowledge and the
method which man employs for obtaining the knowledge of whatever the unknown, can be
termed as research. According to Clifford Woody, Research comprises defining and redefining
problems, formulating hypothesis or suggested solutions, collecting, organizing and evaluating
data, making deduction reaching conclusions and the last carefully testing the conclusions to
determine whether they fit the formulating hypothesis.
It is the per suit of truth with the help of study, observation, comparison and experiment. In short,
The search for the knowledge through objective and systematic method of finding solution to a
problem in research.

Objectives of Research
The purpose of research is to discover answers to questions through the application of scientific
procedures. The main aim of research is to find the truth which is hidden and which has not been
discovered as yet. Though each research study has its own specific purpose we may think of
research objectives as failing into a number of following broad grouping:
To gain familiarity with a phenomenon or to achieve new insights into it

To portray accurately the characteristics of a particular individual, situation or a

Group;

To determine the frequency with which something occurs or with which it is associated
with something else.
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Types of Research
The basic type of research is as follows:

Descriptive VS. Analytical: Descriptive research includes survey and fact finding

enquires of different kinds. In analytical research, on the other hand, the researcher has to
use facts or information already available, and analysis these to make a critical evaluation
of the material.

Applied VS. Fundamental: Research can either be applied or action Research

or fundamental to basic or pure research. Applied research aims at finding a solution for
an immediate problem facing a society or an business organization where as
fundamental research mainly concerned with generalizations and with the formulation
of the theory.

Quantitative VS. Qualitative: Quantitative research is based on the Measurement

of quantity or amount. It is applicable to phenomena that can be expressed in terms of
quantity.

Conceptual VS. Empirical: Conceptual research is that related to some ideas or

theory. It is generally used by philosophers and thinkers to develop new concept or to
reinterpret existing ones. On the other hand, empirical research relies on experience or
observation alone, often without due regard for system and theory.

Some other types of researches: All other type of research are variations of one
or more of the above stated approaches, based on either the purpose of research or the
time required to accomplish research, on the environment in which research is done or
on the basis of some other similar factors.

 Descriptive research
Studies are concern with describing the characteristics of a particular
group or individual. Studies concerned with specific prediction with narration
of facts and characteristics concerning individual, group or situations are
examples of descriptive research .it is also known as social research

Research Design
Meaning of Research Design
A research design is the arrangement of condition s for collection and analysis of

data in

manner that aims to combined relevance to the research to the research purpose with economy in
procedure. As such the design includes an outline of what researcher will do from writing the
hypothesis and its operational implication to the final analysis of data. More explicitly, the design
decisions happen to be in respect of:

What is the study about?

Why is the study being made?

Where will the study be carried out?

What type of data is required data be found?

Where can the required data are found?

What periods of time will the study includes?

What will be the sample design?

What techniques of data collection will be used?

How will the data be analyzed

In what style will the report be prepared?

SAMPLING PLAN
It involves decisions regarding:

Sampling Unit-(who are to be surveyed?) the sampling unit for this project consists of
managers, supervisors, &workers of the company. Primary information has been

collected from people who regularly use energy meters

Sample Size- (how many should be surveyed?) It includes the number of sampling unit
selected from the population for investigation. The sample size must be optimum or
adequate. If the sample size is small it may not appropriately represent the population.

Too large sample would be costly in terms of money &time. The optimum sampling size would
fulfill the requirements of efficiency, representativeness, reliability, and flexibility. The sample
size is taken of 50 employees. It is because of the shortage of time & their busy schedule.

Sampling Procedure-The sampling procedure consists of:

Probability or random sampling- It is one in which each and every unit of thepopulation
has an equal chance of being selected into the sample.

Non-probability or non-random sampling - In this the chance of including an

elementary unit of population in the sample cannot be determined and hence they do not lend
themselves to a statistical treatment and analysis.

Methods of Data Collection

The task of data collection begins after a research problem has been defined and research
design/plan chalked out while deciding about the method of data collection to be used for the
study, the researcher should keep in mind two types of data viz., primary and secondary.

Collection of Primary Data

We collect primary data during the course of doing experiments in an experimental research but
in case we do research of the descriptive type and perform surveys, whether sample surveys or
census surveys, then we can obtain primary data either through observation or through direct
communication with respondents in one form or another or through personal interviews.
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Observation Method: Under the observation method, the information is sought by the

way of investigators own direct observation without asking from the respondent. This
method is particularly suitable in studies which deal with subjects (i.e. respondents) who are
not capable of giving verbal reports of their feelings for one reason or the other.
Interview method: The interview method of collecting data involves presentation of

oral-verbal stimuli and reply in terms of oral-verbal response.

Personal Interview:

Personal interview method requires a person known as the

interviewer asking questions generally in a face-to-face contact to the other person or

persons.

Telephone interview:

This method of collecting information consists in contacting

respondent on telephone itself. It is not a very widely used method, but plays important part
in industrial survey particularly in developed regions.

COLLECTION OF DATA THROUGH QUESTIONNAIRES

This method of data collection is quite popular particularly in case of big enquiries. It is being
adopted by private individuals, research workers.
The merit claimed on behalf of this method as follows:

There is low cost even when the universe is large and is widely spread geographically.

It is free from the bias of the interview answer are in respondents own words.

Respondent have adequate time to give well thought out answer.

Respondent who are not easily approachable can also reached conveniently.

The main demerits of the system can also be listed here.

It can be used only when respondent are educated.

The control over questionnaire may lose once it is sent.

This method is likely to be the slowest of all.

MAIN ASPECT OF QUESTIONNAIRE:

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This fact requires us to study the main aspect of a questionnaire, the General form, Question
sequence, question formulation and wording.

General form: As far the general forms of a questionnaire in concerned, it can either
be structure or unstructured questionnaire. The form of the question may be either close
(i.e. of the type Yes, No) or open (i.e. inviting free response) but should be stated in
advance and not constructed during questioning.

Question Sequence: In order to make the questionnaire effective and to insure quality
to replies received the first view question are particularly imported because there are
likely to influence the attitude of the respondent and in seeking is desire cooperation. The
following type of questions should generally be avoided as opening question in
questionnaires.

Question that put to grate a strain on memory.

Questions of a personnel character.

Questions related to personnel wealth, etc.

QUESTION FORMULATION AND WORDING: With regard to this aspect

of questionnaire ,the research should note that each question must be very clear for
any sort of misunderstanding can do irreparable harm to a survey.

All question should meet the following standards- (a) should be easily understood, (b) should be
simple, (c) should be concrete and should conform as much as possible.

COLLECTION OF DATA THROUGH SCHEDULES

This method of data collection is very much like the collection off data through questionnaire
with little difference which lies in the fact that schedules are being filled in by the enumeration
who are specially appointed for the purposes? This method requires the selection of enumerates
for filling up the schedules for filling up schedules or assisting respondent to fill up
schedules and as such enumerates should be very carefully selected. Above all, they should
be honest, sincere, and hardworking and should have patience and perseverance. This method of
data collection is very much extensive enquiries and can lead to fairly reliable result.

SECONDARY DATA COLLECTION

Secondary data means data are already available i.e., they refer to the data, which have already
been collected and analyzed by someone else. When the researcher utilizes secondary data, then
he has to look into various sources from where he can obtain them. Secondary data may either be
published data or unpublished data.

Usually Published data are available in:

Various publications of the central, state, and local governments.

Various publications of foreign governments or of international bodies and their

subsidiary organizations.
Technical and trade journals.
Books, magazines, and newspapers.
Reports and publications of various associations connected with business and industry,
banks, stock exchanges.

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CHAPTER-2
REVIEW OF LITRETURE

WAGES AND SALARY

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Labor is an essential factor of production irrespective of the size and nature of business. It is also
a sensitive and active factor. They must be suitable remunerated for their services to the
organization. So they may satisfy their needs.

Wages are defined by management experts:

A WAGE PAYMENT IS ESSENTIALLY THE PRICE FOR A PARTICULAR
COMMODITIY VIZ., LABOUR SERVICE
WAGES IS THE PAYMENT TO THE LABOUR FOR IS ASSISTANCE TO
PRODUCTION
Salary earns however are more likely to be paid monthly and progress through a clearly
defined career hierarchy based on factors such as age seniority qualification experience and
performance.

FACTOR AFFECTING WAGES AND SALARY

Demand for and supply of labor: Wage as salary is the price for the service rendered by a
worker. Force for demand and supply of labor determine the going wage rate.

Prevailing wage rate: Prevailing wage rates in competing firms within an industry are
taken in to accounts while fixing wages.

State Regulation: The legal stipulation in respect of minimum bonus dearness allowances
etc.

Union:

Highly unionized sectors generally have higher wages because well-organized

unions can expert presence on management and obtain all sorts of benefits.

Ability to pay: An organization ability to pay its employees is an important determinant of

wage level. Multinational corporations pay relatively higher salary due to their higher paying
capacity.

Productivity: This is the current trend in most private sector companies. When workers
wages are linked to their productivity level.

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Cost of living: Due to inflation the real wage decline affecting the purchasing power of
workers. Labor agreements generally have clause providing for automatic increasers in pay
as cost of living rises.

METHODS OF WAGE PAYMENT

Basically there are two methods of paying labor remuneration and other methods are
combinations and modification of these two methods. The methods are:

TIME WAGE SYSTEM

PIECE WAGE SYSTEM

TIME WAGE SYSTEM:

Under this system, wages are paid on the basis of time spent on the

job irrespective of the amount of work done. The unit of time may be a day, a week, a fort night
or a month.
PIECE WAGE SYSTEM: Under this system remuneration is based on the amount of work
done output of a worker.

Objectives in wages and salary administration

In an organization the wages policy have to be kept under control and up-to-date for the effective
decision making. The objectives of wage and salary administration are:

control of cost;

establishment of fair and equitable structure of remuneration;

to maintain a good public image; and

to attract talented personnel.

WAGE LEGISLATION
Government has enacted legislative measures to protect the wage earners rights and to emphasize
managerial obligations in this regard. We shall briefly consider the main philosophy of three
pieces of wages.
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THE MINIMUM WAGE ACT, 1948

THIS ACT REQUISTES THE APPROPIATE GOVEREMENT, CENTRAL OR SATATE AS
THE CASE MAY BE TO MINIMISE RATES OF WAGES PAYABLE TOI EMPLOYEES IN
ANY EMPLOYEMENT SPECIFIED IN PART I TO PART II OF THE SEHEDULES
APPENDED TO THE ACT.
THE Act symbolizes the fulfillments of 1928 ILO convention on the subject. Courts held that
minimum wage be paid irrespective of the employers capacity to pay. The real purposes of the
act are to prevent exploitation of labor through the payment of unduly low wages.

THE PAYEMENT OF WAGES ACT 1936:

THE main purposes of the act is to ensure regular and prompt payments of wages and to
prevent the exploitation of wage earner by prohibiting arbitrary fines and deduction from, his
wages. The act is applicable to all those employed in factories/ under section 85 of the factories
act, 1948 etc. and drawing less than Rs. 1600 per month .

THE EQUAL REMUNERATION ACT 1976:

THE main object of this act is to provide for the payment of equal remuneration to men and
women workers engaged in same of similar work. The act stipulates stringent punishments for
contravention of the provision of act.

THE INDUSTRIAL DISPUTE ACT, 1947:

Under this act conciliation is compulsory in all wage disputes in public utility services and
optional in other industrial establishments . The act also empowers an appropriate government
to constitute one or more industrial tribunals of national tribunals.

WAGE BOARDS:
Government of India sets up tripartite wage boards on industry wise basis to fix and revise pay. A
wage board consists of and impartial chairman two independent members and 2 or 3
representatives of workers and employers each.

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PAY COMMISSIONS:
The government employees also known as public employees include civil servants, quasi
industrial employees and industrial employees in locomotives aircrafts, fertilizers etc. the pay
and benefits of these governments employees decided by pay commission by the appropriate
government.

PAY STRUCTURE IN NDIA

Pay structure in India generally consist of the following components:

Basic wage / Salary

Dearness allowances.

Bonus and other Incentives.

Fringe benefits and perquisites.

BASIC WAGE

It is a price for service rendered .It varies according to mental and physical requirement of the
job as measured through job evaluation. The basic wage in India corresponds with what has been
recommended by the fair wage committee (1948) and 15th Indian labour conference (1957).
THE FAIR WAGE COMMITTEE GAVE 3 COMNCEPTS RELATING TO BASIC WAGE:

Minimum Wage

Fair Wage

Living Wage.

MINIMUM WAGE:
Minimum wage is that wage which must invariably be paid whether the company big or small,
makes profit or not. It is the bare minimum that a worker can expect to get for service
rendered by him.
The norms are revised by the 41stLabour Minister conference in 1992 as under:

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The standards working class family should be taken to comprise 5 consumptions units
instead of 3

Minimum food requirements should be calculated on the basis of 2700 calories per
consumption unit in conformity with the food habits.

House rent should be same as under the subsidized industrial housing scheme.

Clothing requirements should be estimated at 80 yards per family per year.

Fuel, lighting and other miscellaneous items of expending should constitute 205 of the
total minimum wage.

FAIR WAGE
While the lower limit of the fair wage obviously be the minimum wage, the upper

limit

is equally set by what may broadly be called the capacity wage would depend on :

The productive of labor

The prevailing rate of wages

The place of industry in the economy of the country.

The employers capacity to pay.

LIVING WAGE
According to the committee on fair wage the living wages is the highest among three. It must
provide:

Basic amenities of life.

Satisfy social needs of workers such as medical, education retirements etc.

BONUS:

The dictionary of bonus is an extra payment to the workers beyond the normal wage. It is argued
that bonus is a deferred wage payment which aims at bridging the gap between the actual
wage and the need based wage. But its the actual wage and need based wage.
The payment of bonus act, 1956 is calculated as:
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 Bonus is calculated on a salary of Rs 2500 per month.

Bonus is to be paid at a minimum of 8.33% of the salary of an employee.
The bonus is to be paid within 8 month from the close of an accounting year.

Bonus is paid out of available surplus of an accounting year after deductive the sums
referred to in the section 6.

To claim bonus the employee must have worked for 30 days in that year.
DEARNESS ALLOWANCES (DA):
It is the allowance paid to employees in order to enables them to face the increasing dearness of
essential commodities. Instead of increasing wage every time these is a rise in price level ,
D.A is paid to neutralize the effect of inflation.

All India consumer price index (AICPI): The labor Bureau, Shimla, computers the AICPI
(Base 1960=100) points from time to time.

TIME FACTOR: In this case DA is linked to the price in the all India consumer price
index (AICPI) in a related period.

POINT FACTOR: Here DA rises in the line with a rise in the number of index points above
a specific level.

FRINGE BENEFITS:
The term fringe benefits refers to the extra benefits provided to employee in addition to
the

normal compensation paid in the form of wage or salary . They are important part of the

comprehensive compensations package.

FEATURES:

They are supplementary forms of compensation.

They are paid to all employee based on their memberships in the organization.

They help to raise the living condition of employees.

They may be statutory or voluntary P.F is a statutorily benefits.

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TYPES:
Payment without work e.g. sick leave, maternity leave.
Health and safety benefits.
Retirements benefits.
Subsidized housing transport, lunch, frees dress etc.

Compensation issues
For purpose of analysis, we shall follow Belchers classification of the compensation issues
into following categories:

Wages and salary levels.

Wages and salary structures

Individual wage determination.

Fringe benefits

Compensation of managers and professionals

Wage and Salary levels

In any organization, the wage and salary levels are dependent on four major factors. They
are:

Wage enactments of the central and state governments, sometimes modified by tribunals
and courts, compliance with which is a statutory requirement.

Wage rates in the community and in similar industries.

The influence of workers union on the wage rates.

Corporate philosophy on the wages.

In this context Lanhams five criteria have a bearing on the formulation of a firms internal
wages structure:

Cost of living

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Productivity

Cost of living allowance

To provide adequate money wage compensation for the fluctuations due to the inflationary
spiral, both employers and unions follow various indexes. In addition of basic salary, employees
also receive monthly dearness allowances to offset the increased cost of living. In some cases,
corporate managements and unions have a merged a part of the dearness allowance with the
basic salary, thus upgrading the wage scale and simultaneously enhancing other fringe benefits
which are linked to the basic basic wage rate.

Productivity
Any shift in the level of productivity will have its impact on the wage level. Productivity is
the increased output of an employee resulting in lower costs. The improved profit margins now
available to the employer need to be distributed in a manner acceptable to both the worker and
the management.

2. Wage and salary structure

Within an organization, jobs are placed in a grade, or a rate per job, and these grades are
arranged in a hierarchical order with those earning higher wages on top. The process by which
this hierarchy is reached is known as job evaluation. Job evaluation is a systematic method of
appraising the value of each job in relation to other jobs in the organization. The method used is
the qualitative, i.e.., the ranking and job classification methods, and the quantitative, i.e.., the
factor comparison and the point methods.

3. Individual wage determination

The first consideration is with reward to individual wage rates, taking into account individual
increments. Certain criteria have to be used to award flat increases or to give merit increases like:

Obviously one consideration would be the nature of task performed, and related to this
would be the type of payment system in force.

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The other practice to reward individual effort is that provided by merit increments, when
the salary grade has a range.

Another form of individual adjustment is made in cases where past experience, special
skills or training have to be compensated.

Merit increases are extra increments given to an employee in appreciation of his outstanding
performance.

4. Fringe benefits
These benefits are sometimes called indirect benefits. They are supplementary compensation
made in addition to wages to stimulate the interest of the workers and to make the job more
attractive and conductive.
Belcher describes these benefits as any wage cost not directly connected with employees
productive effort, performance, service or sacrifice.

Though these benefits are not direct

payment for productive effort, they are intended to act as incentives to increase productive effort.

5. Compensation of managers and professionals

Managerial jobs are more complex and hence compensation cannot be decided on a general basis
as for rank and file workers. Mainly professional work involves the application of learned
knowledge to the solution of enterprise problems and the achievement of enterprise goals. This
calls for creativity, innovation and talent. Mere financial compensation is not always adequate in
case of professionals. The organization may have to provide for career development and further
training to improve the efficiency of these individuals.

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CHAPTER-3
COMPANY PROFILE

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HAVELLS GROUP
Havells Group is one of the fastest growing Electrical and Power Distribution Equipment
Company in the country, manufacturing products ranging from building circuit protection,
industrial & domestic switchgear, cables & wires, energy meters, fans, CFLs, luminaries, bath
fittings and modular switches. The group comprises of 4 companies Havells India Ltd. (the
flagship company), Standard Electrical, Crabtree India Ltd, and TTL. With 13 state of the art
manufacturing plants, 24 branch offices and a strong backing of over 3000 professionals across
India the group has achieved rapid success in the past few years.

Havells is continuously applying modern

management techniques such as Kaizen to
enable employees to improve their day to day
functioning in small steps, one at a time. QRG
has also implemented Japanese version of 5S
which stands for "a place for everything and
everything in its place". The company has
introduced these techniques as it firmly
believes that small changes add up to large
results and the only way for a corporation to
grow, is to make its people grow.

The Group is driven by qualified and experienced professionals backed by a work force of over
4000 employees. All branches and manufacturing facilities are computerized and networked with
each other. An open door policy at all levels encourages employees to be participated, innovative
and creative. Empowering employees helps the organization in harnessing individual talents to
the fullest. Emphasis is laid on building team spirit which helps employees to realize collective
potential.

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Manufacturing Plants

Powerful trends are shaping up industry for the 21st century. Because of rapid spread of advanced
technologies complexity of work is increasing - almost daily. With the state of the art equipments
and manufacturing facilities, QRG group is helping to boost safety in workplaces from the factory
to the offices, domestic buildings to commercial plazas. All the manufacturing units are ably
supervised and controlled by technocrats and industry specialists.
The group has well managed, well equipped tool rooms with machines like CCV Line, CNC
Machines, EDM Wire Cut, Spark Erosion Machines, Lathes and Surface Grinders.
Our strategic alliances with some of the leading technology corporations in the world of electrical
engineering, ensure constant access to the latest developments in the international markets, which
are then adapted to the tough tropical conditions.
Our manufacturing units are fully equipped with the latest and most sophisticated facilities in
India. And in the hands of our highly qualified technical experts, this results in some of the most
advanced product development in the country.

The Milestones
A look at the milestones in over three decades of QRGjourney to excellence, maps its emergence
as a major industrial force in the country and abroad.
1958

Commenced trading operations in Delhi.

1976

Set up the first factory for Rewire able Switches and Changeover Switches at Kirti
Nagar, Delhi.

1979

Set up a factory for HBC Fuses at Badly, Delhi.

1980

Started manufacturing high quality Energy Meters at Tilak Nagar, Delhi.

1983

Took over Towers and Transformers Ltd. And turned it around in one year to profitably
manufacture Energy Meters in the Company.

1987

Started manufacturing MCBs at Badli, Delhi in Joint Venture with Geyer, Germany.

1990

Set up a manufacturing unit at Sahibabad in UP for Changeover Switches.

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1993

Set up another factory at Faridabad, Haryana for Control gear Products.

1996

Took over a manufacturing unit at Alwar, Rajasthan for Power Cables & Wires.
Entered a Joint Venture with Electrum, UK for manufacturing Dorman Smith
MCCBs and Crabtree Modular Plate Switches.

1997

Took over Electric Control & Switchboards at NOIDA for manufacturing

customized packaged solutions.

1998
2000

Introduced high-end Ferraris Meters in Joint Venture with DZG, Germany.

Acquired controlling stake in Duke Arnics Electronics (P) Limited engaged in

manufacturing of Electronic Meters-Single Phase, Three Phase, Multi-Function,
Tri Vectors.

2001

Acquired controlling interest in an industry major-Standard Electricals Ltd.

Acquired business of Havells Industries Ltd, MCCB of Crabtree India Limited and
Merged ECS Limited in the company to consolidate in it's area of core competence.

2002

Standard Electrical Company becomes a 100% Subsidiary of the company.

2003

The company is posed for ISO: 14001 accreditation after successfully obtaining ISO
9001:2000 certifications .

2004

Set up factory at Baddi (H.P.) for manufacturing of Domestic Switchgear.

Set up a plant for manufacturing of CFL at existing Faridabad Works

Set up a plant for manufacturing of Ceiling Fans at Noida

Set-up our own marketing office in London through our wholly owned
subsidiary Company Havells U.K. Ltd.

In December, 2004 placed 235 fully convertible debentures of Rs. 10 Lacs on

M/s. Shine Ltd., Mauritius and the debenture will be converted in June, 2006

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ABOUT THE HAVELLS LTD

TTL Ltd is one of the associates companies of the Havells group. The company was organically incorporated
on
20th December 1971 under the name TOWERS AND TRANSFORMERS PRIVATE LIMITED. Thereafter,
It was converted in to public limited company with its registered office in Delhi. The name of the company
was
Changed to TTT Ltd. On 3rd Feb. As per the memorandum of associations of TTL Ltd. The main objectives
of the
company are:
TO undertake and carry on all or any of the following industries, traders or business in all or any of their
branches and process and to do all such acts and things as are necessary or usually done or implied in
Understanding or carrying on such trade or business. Namely:

To manufactured and produce, distributors, transformers. Voltage regulators. Battery charges, battery

Eliminator, voltage testing sets. Voltage stabilizers, conductors, enamel wires. Cotton/ papers covered
conductors, fittings, switch and distribution boards, and other articles, and things require for or capable of
Being used for or in connection with wires for wireless signaling. Lighting heating motive power
Cables. Lines power station exchanges. Accumulators and signaling apparatus.

Manufacturing, assemblers, fabricators, of high tension and low tension transformers of all types and
design,
Voltage and capacities, electric switch gear, both high and low tension foe alternatives direct current.
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To carry on the business of electrician, electric engineers and manufacturing of all kinds of electric
machinery and electric apparatuses for any purposes what so ever and to manufactures, sell, supply,
And deal in accumulators lamps, mortars, engine, telephonic and telegraphs apparatus of any kind.

To manufactures, buy, sell, exchange, alter, improve, manipulate prepare for market, importer export
or
otherwise deal in all kind of insulated cables and wires, rubber insulated wires and cables, pvc cables
and flex cables, cotton or silk braided conduct wire and cables, transformers and switch gear copper
Bronze, phosphor bronze, furnace ship wiring switch boards bell wires fuse wires and tanned copper.

To carry on the business of manufacturing , buying, selling, reselling altering importing, exporting,
improving assembling deals in wires cables, conductors electric locomotives, industrial railway,
electric
railway lines converters and reclassification station for railways post and industries, electric motor
And electric tubes for all industrial and domestic electric appliances.

ENERGY METER DIVISION

TTL LTD.

DUKE.

PRECISION METERS LDT.

PERSONNEL AND ADMINISTRATIVE

This department has the following sections:

Establishment

Welfare

Industrial relations
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Security

HRD

Recruitment

Coordination

Finance and Accounts

The Production Wings

Personnel computers (pc)

ESTABLISHMENT:
This section deals with matters relating to promotion, transfer, grant of annual increment to all the
employees of the
Company.

WELFARE:
This section looks after the welfare facilities being provided by the company to its employees.
These include
Uniforms, canteen medical maternity benefits, community development programmer, sports and
cultural activities.

INDUSTRIAL RELATIONS:
The aim of this section is to maintain good relationships between the employee and management.
The
Bargaining points are welfare facilities, changes in existing policy, enhancement of the existing
facilities wages.

SECURITY:
This section is responsible for the overall security of the complex. All the staff members- clerical as
well as the
Technical has been issued identity cards. All the vehicles entering the premises are subjected to
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checking by the
Security staff posted at the entry gate.

HRD:
This section controls at the following functions:

Training of skilled and unskilled task force.

Training of supervisor staff.

RECRUITMENT:
This section is responsible for selection/ recruitment at all levels in the company. Hey finalizes the
QRs for
Employment at different levels.

COORDINATION:
This section is responsible for coordination between the different sections in the administrative as well as
Production wings of the company.

FINANCE AND ACCOUNTS

This section keeps an account of all the finance of the company. It basic function outline is as
follows:

Budgets

Purchase

Sales

Inventory

Pay Rolls

Compilation of Statistic Data

The Production Wings

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This section of the company, have three department production, testing and research and
development.

Personal Computer (PC)

At TTL LTD complete research work is carried out on computer with the help of MS-Excel-2000,
MS-Excel-2000
offers many features and enhancement that help in creating not only the data but also scientific
calculators and
Graphics.
COMPANY QUALITY POLICY
Building customer by providing wide range quality product services through team work by efficient
management
Resources.
QUALITY SYSTEM CERTIFICATE
Company having DET NORSKEVERTS quality system certificate. Company also having ISO
9001, 9002,
9003 quality system certificate.

COMPANYS OBJECTIVES

To ensure that business in run with professional standard and ethics.

Modernity blends with tradition.

To ensure quality in process of productivity.

To ensure an excellent brand product.

To continuously upgrade product through attain collaboration in research and development.

To strive for continuous improvement in all other areas of activity the highest level of
efficiency.

PAY STRUCTURE OF TTL. SAHIBABAD OF HAVELLS GROUP

30

Minimum Wage
TTL. Ltd., Sahibabad pays minimum wage according to minimum wage rates provided by the
central government. So that the rates of minimum wage in industry where more than 50
to 500 workmen are employed.

BASIC

+ V.D.A

Unskilled

2535

+ 243.98

Semi-skilled

2785

+ 256.01

Skilled

3090

+ 297.39

Minimum wage in industry where the above 500 workmen are employed.

BASIC

V.D.A

Unskilled

2535

256.01

Semi-skilled

2785

281051

Skilled

3090

307.02

Dearness allowances:
D.A in TTL. Ltd Sahibabad is calculated according to this points sent by chamber of commerce
(Kanpur). In TTL . Ltd. Sahibabad the DA is mainly given to the workers.

Bonus

Fringe benefits

Provident fund

Contribution as percentage of wages

Name of Scheme

Employee
31

Employer

Provident Fund Scheme

12%

3.67% (amount in excess of 8.33%)

(Note: a member on his request is allowed to contribute more than the above subject to the
condition that the employer shall not be under any obligation to pay and contribution over
and above the contribution payable under the provision of the Act)
EPF INTEREST RATE
The rate of interest is fixed by the central government in consultation with the central board
of trustees of employees provident fund every year during March/ April. The rate of interest
for

the year 2001-2002 has been notified as 12%.

GRATUITY:
All employees are covered under the provision of gratuity act 1972. Gratuity is payable on:
On superannuating
On retirement
Resignation
Death or disablement

It is payable on the completion of minimum 5 years continuous services. This condition is

however, not required in case of death. 15 days wages for each completed year of services or
part thereof in excess of 6 month or Rs 3,50,000 whichever is less. It cannot be attached in
execution of degree or order of court.
Calculation of gratuity - In the case of monthly rated employee
Gratuity =

Basic Salary x Servicing year x 15

26

Transportation allowance:
Company pays transport allowance to each of the employee, which is minimum 800 Rs. and
transportation allowance given to workers at the rate which is lower that the employees.
32

CONVEYANCE ALLOWANCES:
Conveyance allowance procedure of
Companys Conveyances

Personal

Conveyance
Above officer Rs 4.10 / km

Rs 4.30/km

Officer

Rs 2.10/km

Rs 2/km

Under manager: Rs 2.10/km for both type of conveyance whether it is provided by the
company or by employee itself.
CANTEEN FACILITY:
There is one canteen for workers in the company.

Uniform to employees

Two sets of Terri cot uniform every year.

To saris for women employees every year.

One pair of shoes every year.

Aprons to entitled categories of employees.

HOUSE RENT ALLOWANCES:

The company pays 50% of basic pays a House Rent Allowance.

EMPLOYEES STATE INSURANCE CORPORATION:

This facility is given to only those employee or workers whose salary is equal to or less than
6500 Rs.
Per month is. 1.75% of salary and employee contributions are 4.75% of the salary. His total will
be equal to 6.5%.
33

So the pay structure in Towers & Transformers Ltd. Sahibabad for example:
BASIC PAY

5000

HRA

2500

Trap Allowance

Special Allowance:
Soft Allowance

800
500

500

If the employee worked for 25 days then his salary is:

If the employee worked for 25 days then his salary is:
BASIC

: 4167.00

H.R.A

: 2089.00

Trap. Allowance : 667.00

Special allowance:

417.00

Soft allowance

417.00

Total salary

: 7751.00

PF 12% Less

: - 600.00

Net Pay

: 7151.00

PRODUCTS OF HAVELLS GROUP

Havells has emerged as a preferred choice for discerning individual and industrial consumers. Havells is
the largest manufacturer of MCBs in the country. Our products are approved by international quality
bodies such as KEMA, UL,CE,CSA and VDE and are as per IEC standards.

34

ACCL

ISCOLATOR

MINIATURE CIRCUIT BREAKER

CHANGEOVER SWITCH

35

RESIDUAL CURRENT CIRCUIT

BREAKER

36

RCBO

DISTRIBUTION BOARD

Inverter Duty Motors with Forced Cooling

37

Crane Duty Motors

Brake Motors

38

Welcome to Capacitors

Havells Capacitors are designed and manufactured using S3 technology. It encompasses product with
triple shield with differential disconnect or in the event of any fault within due to environmental
compatibility. Advance technologies adopted to offer you unmatched safety and outstanding performance.

AGRI BOOST CAPACITOR

APFCS CAPACITOR

39

CYLINDRICAL CAP PFC CAPACITORS

IPFC

SQUARE CAP PFC CAPACITORS

APFC

At Havells, it is our philosophy to continuously upgrade products in order to best serve modern
discerning consumers. We feel proud and privileged to share with you one such innovation of
making Havells CFLs more environment friendly by introducing India's first Green CFL
Retrofit

40

Non Retrofit

41

Welcome to Geysers

Havells today is known for high quality energy efficient products. Going forward with this commitment it has introduced state of the
art New Generation Electric Water Heaters with Penta Shield Technology which provides 5- fold safety with high precision
Thermostat. It helps to accelerate your savings as it only consumes half a unit of electricity for 24 hour operation.

Electric Storage Water Heater

42

Instantaneous Water Heater

43

CHAPTER- 4
DATA ANALYSIS AND INTERPRETATIONS

44

Q-1 Are you comfortable in the existing salary ?

Table 4.1
Occupation

In % percentage

Yes

40%

No

23%

No Comments

37%

Table 4.1 Comfortable in salary

37

40

yes
no
no comments

23

Figure 4.1 Comfortable in salary

INTERPRETATION
This table shows that 40% employees says and 23% say no and 37% says no comments.

45

Q-2 Is the monetary reward you get is adequate for the nature of your
performance?
Table 4.2
Occupation

In % percentage

Yes

50%

No

23%

No Comments

27%

Table: 4.2: Monetary reward

27
yes
no
no comments

50

23

Figure: 4.2: Monetary reward

INTERPRETATION
This table shows that 50% employees says and 23% say no and 27% says no comments.

46

Q-3Do you feel that salary is the only motivating factor to you?
Table 4.3
Occupation

In % percentage

Yes

80%

No

12%

No Comments

8%

Table: 4.3: Feel that salary motivating factor

8
12
yes
no
no comments
80

Figure: 4.3: Feel that salary motivating factor

INTERPRETATION
This table shows that 80% employees say yes and 12% say no and 8% says no comments.

Q-4 Will you be motivated by a better salary package or employee benefit

scheme?
47

Table 4.4
Occupation

In % percentage

Yes

75%

No

17%

No Comments

8%

Table: 4.4: Motivated salary package or employee benefit

8
17

yes
no
no comments
75

Figure: 4.4: Motivated salary package or employee benefit

INTERPRETATION
This table shows that 75% employees say yes and 17% say no and 8% says no comments.

Q-5 Is wage payment is a matter of great importance to workers?

Table 4.5

48

Occupation

In % percentage

Yes

67%

No

22%

No Comments

11%

Table: 4.5: Wages payment importance to workers

11
yes

22

no
no comments

67

Figure: 4.5: Wages payment importance to workers

INTERPRETATION
This table shows that 67% employees say yes and 22% say no and 11% says no comments.

Q-6 Are you getting any incentive wage as the extra payments for superior
performance?
Table 4.6
Occupation

In % percentage
49

Yes

50%

No

23%

No Comments

27%

Table: 4.6 Extra payments for superior performance

27
yes
no
no comments

50

23

Figure: 4.6: Extra payments for superior performance

INTERPRETATION
This table shows that85% employees say yes and 12% say no and 3% says no comments.

Q-7 Are you satisfied with the method adopted for incentive calculation?
Table 4.7
Occupation

In % percentage

50

Yes

83%

No

9%

No Comments

8%

Table: 4.7: Incentive calculation

8
9
yes
no
no comments
83

Figure: 4.7: Incentive calculation

INTERPRETATION
This table shows that 83% employees say yes and 9% say no and 8% says no comments.

Q-8 Are you satisfied with all the allowances you get?
Table 4.8
Occupation

In % percentage

Yes

15%
51

No

13%

No Comments

72%

Table: 4.8: Satisfied with allowances

15
yes
no
no comments

13

72

Figure: 4.8: Satisfied with allowances

INTERPRETATION
This table shows that15% employees says and 13% say no and 72% says no comments.

Q-9 Are you finding your company capable in providing satisfactory salary ?
Table 4.9
Occupation

In % percentage

Yes

25%

No

23%

52

No Comments

52%

Table: 4.9: Providing satisfactory salary

25
yes
no
no comments

52
23

Figure 4.9 Providing satisfactory salary

INTERPRETATION
This table shows that 25% employees say yes and 23% say no and 52% says no comments.

53

CHAPTER-5
RECOMMENDATIONS AND CONCLUSIONS

LIMITATIONS OF THE STUDY

Sample size, which I taken is very small, on the basis of which efficient decisions cannot be
taken.

Co-operation of respondents: this has been a major problem. Employees were reluctant to fill
the questionnaire or face the interview.

54

Another constraint has been regarding cost since study involves the collection of primary and
secondary data. Therefore the cost incurred was much more. Due to constraints the coverage
of the study could not be extended to more customers.

Our knowledge is limited as we are students and does not have much experience.

Managers and employees of the company are hesitating to disclose the information.

RECOMMENDATIONS
Few suggestions are being made for further improvement:

Wages and salary system should satisfy all the workers and employees.

Wages and incentives should be decided or distributed according to the performance of

the employees and workers.

Overtime should be paid to the workers and employees.

CONCLUSION
Employee whose basic salary is below or equal to Rs.6500 per month is taken in to consideration
for Employee State Insurance Act. The company also provides its employees provident fund,
pension under the scheme 1952 and the employees pension scheme 1995 respectively. The
company provides its employees with allowance but one of the drawbacks is that the company
does not provide its workers and employees sufficient canteen facilities. The company provides
55

its employees and workers medical allowances and doctor also visit for regular checkup. In
HAVELLS, there is a practice of working regular over-time in all departments. As result the
workers of all departments are happy. The employees of HRD department daily record the
overtime done by each worker. The company also maintain attendance card of all the employees
from which they keyword of arriving and leaving time of each worker and employee. In sum,
HAVELLS, is a healthy and growing company and it paying wages and salary to its workers and
employees according to their ability, productivity and qualification? It follows rules prescribed
by the government while fixing the salary.

BIBLIOGRAPHY
Book referred

Casico W.F.(2004)Managing human resource Tata McGraw-hill, New Delhi.

Kumar.H.L.(2003) Labour Problem And RemadiesUniversal , New Delhi.

56

Rao,V.S.P,(2005)Human Recourse Management , New Delhi.

Subramanium.K.N,(1979) Wages In IndiaTATAMcGraw-HILL, New Delhi,.

Website
www.havells.com
www.havellssearch.com

57

ANNEXURE

QUESTIONNAIRE

QUESTIONNAIRE
1. Are you comfortable in the existing salary?
YES {

NO {

NO COMMENTS

2. Is the monitory reward you get is adequate for the nature of job you perform?
YES { }

NO {

NO COMMENTS {
58

3. Do you feel that salary is the only motivating factor to you?

YES {

NO

NO COMMENTS {

4. Will you be motivated by a better salary package or employee benefit schemes?

YES

NO

NO COMMENTS {

5. Is wage payments is a matter of great importance to workers?

YES { }

NO {

NO COMMENTS {

6. Are you getting any incentive wage as the extra payments for superior performance?
YES {

NO {

NO COMMENTS {

7. Are you satisfied with the method adopted for incentive calculation?
YES {

NO {

NO COMMENTS {

8. Are you satisfied with all the allowances you get?

YES {

NO {

NO COMMENTS {

9. Are you finding your company capable in providing satisfactory salary?

YES {

NO {

NO COMMENTS {

59