Employee Relationship and Benefit Administration-Semaphore It Solutions

Index
CONTENTS
PAGE NO.
CHAPTER 1
INTRODUCTION
CHAPTER 2
RESEARCH METHODOLOGY
CHAPTER 3
INDUSTRY PROFILE, COMPANY PROFILE
CHAPTER 4
COMPANY PROFILE
CHAPTER 5
THEORETICAL FRAME WORK
CHAPTER 6
DATA ANALYSIS & INTERPRETATION
CHAPTER 7
FINDINGS & SUGGESTIONS
CHAPTER 8
CONCLUSION & BIBLIOGRAPHY
ANNEXURE
QUESTIONNAIRE
CHAPTER -1
INTRODUCTION
Introduction
Employees play a significant role in an organization. Among all the four
resources
land
labour,
capital
and
machinery,
employees
are
considered as important and effective resource. Human resource

consists of skills, knowledge, abilities and qualities of an organization.
Employees are the key for the success of any business. To retain the
efficient people and attract experienced and skilled workers, the
business should maintain good employee relationship. Thus effective
employee
relationship
must
be
maintained
for
an
effective
organizational performance.
Employees in the job market today are seeking comprehensive
benefits & compensation packages. Moreover, if the organization does
not have good employee relationship, then the competitor certainly
takes the advantage of it.
Employee relationship takes care of day-to-day activities in the
organization, A good employee relationship programs tries
to reduce the anxiety of the employee,
improves the communication between the employees,
Increases the employee morale and employee performance.
it reduces employee turnover in the organization and attracts

efficient people from outside and improves the knowledge and
skills required in the organization .
It also helps in reducing the conflicts among the employees and
maintains organization culture and improves it. It takes cares of
benefit and services for the development of the employees.
Employee relationship to be complete must also include employee
benefit
and
services
administration
and
also
identification
developmental needs of employees.

Employee benefits have a significant financial and administrative
impact on a business. The educated American work force has come to
expect a comprehensive benefits program; the absence or inadequacy
of such a program can seriously hinder a company's ability to attract
and retain the best personnel. Designing the right benefit plan for your
employees is a complex task that includes taxes, legal aspects,
funding, and selection of vendors or administrators.
Effective management of employee benefits is an important means by
which organization successfully attract, motivate and retain
employees. The employers should establish and maintain as employee
benefits programs that reward the efforts of employees in the
organization. Cash compensations received inn the form of wages,
salaries and incentives, comprise direct compensation, which forms a
major part of organizational cost. Benefits and services also referred to

as indirect compensation, account for the about 40% of an average
firms costs in United States and even higher in percentage in
European countries.
Employers have sought to increase indirect
compensation to motivate and retain employees, discourage labor
unrest and remain competitive in employee market. Employees seek
benefits and services from the employer to take advantage of low
costs, taxes and inflation protection. Moreover, they view benefits and
services as a means to increase the quality of work life.
The level and type of benefit program available to employees varies
widely from firms to firms. Many organizations have adopted flexible
benefit plans. The management decides the benefits programs by
assessing employee preferences, considering the rules of
administration and after analyzing the cost of benefits.
Objectives:-
Objectives are the statements that state how the goals are achieved.
They should be very concrete and specific in nature.
Objective of the study:-
The purpose of doing this project is mainly to make thorough study on

employee relationship and benefit administration at SEMAPHORE IT
SOLUTIONS.
To
study
the
Employee
relationship
at
SEMAPHORE
IT
SOLUTIONS.
To study the employee job satisfaction and employee morale at
SEMAPHORE IT SOLUTIONS.
To understand the benefit programs offered at SEMAPHORE IT
SOLUTIONS.
To
evaluate
employee
benefit
programs
as
per
industry
standards.
To understand the impact of motivational factors on employee
performance.
Suggest improvement in the existing system if necessary.
SCOPE OF STUDY
The scope of the study is very vital. Not only the Human Resource
department can use the facts and figures of the study but also the
personnel, finance and sales department can take benefits from the
findings of the study.
Scope for the sales department
The sales department can have fairly good idea about their
employees, that they are satisfied or not.
Scope for personnel department

Some customers have the complaints or facing problems regarding the
benefit program. So the personnel department can use the information
to make efforts to avoid such complaints.
LIMITATION OF STUDY
Data collected was based on questionnaire and interview method
only.
Total number of employees in Semaphore It Solutions is more but
sample size is limited to 50 only.

The research was conducted in limited duration only.
Some respondents hesitated to give actual situation , they feared
that management would take action against them.

The findings and conclusions can result in bias.
CHAPTER- 2
RESEARCH METHODOLOGY
Research methodology
Introduction
Research methodology is a way to systematically solve the research

problem; it may be understood as a science of studying how research
is done scientifically. Thus where we talk of research methodology we
not only take of research method, but also consider the logic behind
the methods we use in the context of our research study and explain
why we are using the particular method.
Research design
After having defined the objective the next is to formulate steps, which
will specify the ways of achieving the primary and secondary
objectives. Generally the data collection method and sampling plan are
the main elements that constitute the research design.
Research design provides smooth operations yielding maximal

information with minimum expenditure of effort time and money.
Research design has a plan in advance of data collection analysis for

our research report.
A research design is the logical and systematic planning and directing

piece of research.
A research design is the arrangement of conditions for collection and

analysis of data in a manner that aims to confirm relevance to the
research purpose with economy procedure.
The study is designed as descriptive one based on survey method.The

sample was selected based on convenience sampling method. Both
primary data and secondary data were collected. And the collected
data were analyzed by using statistical tools like percentage method
and pie charts.
Pre testing of questionnaire

The researcher to remove questions that are vague and ambiguous in
the nature conducted the pre testing. The samples of 10 respondents
were selected and the questionnaire was pre-tested and the researcher
did necessary modification.
Data collection
There are two types of data
Primary data: - the primary data is that information which is collected

for the first time, and thus happen to be original in character. Primary
data can be collected through method of survey, observations and

questionnaire.
Here the data has been collected through questionnaire.
Secondary data
Secondary data are those which have already been collected by some
other agency and which have already been processing.
Here the secondary data was collected from websites, journals and
books.
Sample
A sample is a segment of the population selected to represent the

population as a whole.
Sample size
The sample size is 20 in respect of staff, supervisors and managers

from each department namely software developers, marketing, finance
and Human resource.
CHAPTER- 3
INDUSTRY PROFILE
Industry Profile
Overview on India's Software Industry
According to statistics, country's software exports reached total revenues of Rs 46100
crores. The shares of total Indian exports form 4.9 per cent in 1997 to 20.4 percent in
2002-03. It is expected that the industry will generate a total employment of around four
millions peoples, which accounts for 7 per cent of India's total GDP as in the year 2008.
The year 1995-96 was a boom for the industry. The performance of the industry over the
years is as follows:
(In terms of US $ millions)
Domestic software Market490670920125017002450
Software Exports 73410851750265040006300
Indian Software Industry 122417552670390057008750

India's Software Exports:
Software exports has major share in India's total exports. As of the year 2004-05,
both software and services revenue grew by 32 percent to $ 22 billions and $ 28.5 billions
in 2005-06.
According to NASSCOM, India's domestic market, grew by 24 per cent. Presently Indian
companies have concentrated on only two largest IT service markets. They are USA and
the UK. Even Canada, Japan, Germany and France represent huge growth potential in the
industry.
Why India?
Rapidly Improving infrastructure

Large Talent Pool Availability
Infrastructure High Quality Educat ional
Low Operaing Costs
R&D Strengths
Established Technology Clusters
Government Incentive
Progress of IT Industry
(In terms of US $ billion)
Year2003-042004-052005-06*IT software and service exports9.212.015.2ITE-BPO
exports3.65.27.3Domestic market3.94.86.0Total16.722.028.5
*Estimated
Source: Ministry of Communications and IT.
1995-1996 - 1224 million US Dollars
1999- 2000 - 5700 million US Dollars

According to the NASSCOM- McKinsey report on the IT industry of India, the
projected revenue of the IT industry of India for the year 2008 is 87 billion US Dollars.
The projected exports or the year 2008, accord to this report, is 50 billion US Dollars.
Some of the important aspects of the NASSCOM- McKinsey report related to the size of
India's IT industry are
There is potential of 3.2 million people being employed in the IT industry of India
by the end of 2012.
Contribution of software and services to the total GDP of India will be more than
7.5%.
FDI (Foreign Direct Investment) of 10.5 billion US Dollars expected in the IT
industry by the end of 2011.
45% of total exports from India will be from IT exports.
225 billion US Dollars worth of market capitalization from ITshares.
Softwares and services are exported to bout 195 companies from India. North America
accounts for 61% of the software exports from India.
The projections about the size of India's IT industry present a very optimistic picture.
The industry is expected to grow to double its current size by the year 2012. India's IT
industry is expected to grow at an annual average rate of 18% in the next five years. The
industry is also expected to cross the 100 billion US Dollar mark by 2011. One of the
major areas of growth for the IT industry of India is by tapping the potential in the
domestic market. The IT industry of India is largely dependant on the export market.
Penetrating more into the domestic market would create further opportunities of growth
for the IT industry.
Adoption of new liberal policies in India has given birth immense opportunities to its
industries. Success story of India's Software Industry is a step in the same direction.
The Software Industry, which is a main component of the Information technology, has
brought tremendous success for the emerging economy.
India's young aged manpower is the key behind this success story. Presently there are
more than 500 software firms in the country.
Worldwide IT Spending to Grow 5.3 Percent in 2010
Unseasonably Strong Hardware Sales in First Quarter Sets Up 2010 for Solid IT
Spending Growth Worldwide IT spending is forecast to reach $3.4 trillion in 2010, a 5.3
percent increase from IT spending of $3.2 trillion in 2009, according to Gartner, Inc. The
IT industry will continue to show steady growth with IT spending in 2011 projected to
surpass $3.5 trillion, a 4.2 percent increase from 2010.
"Following strong fourth quarter sales, an unseasonably robust hardware supply chain in
the first quarter of 2010, combined with continued improvement in the global economy,
sets up 2010 for solid IT spending growth," said Richard Gordon, research vice president
at Gartner. "However, it's important to note that nearly 4 percentage points of this growth
will be the result of a projected decline in the value of the dollar relative to last year. IT
spending in exchange-rate-adjusted dollars will still grow 1.6 percent this year, after
declining 1.4 percent in 2009."
Worldwide computing hardware spending is forecast to reach $353 billion in 2010, a 5.7
percent increase from 2009 (see Table 1). Robust consumer spending on mobile PCs will
drive hardware spending in 2010. Enterprise hardware spending will grow again in 2010,
but it will remain below its 2008 level through 2014. Spending on storage will enjoy the
fastest growth in terms of enterprise spending as the volume of enterprise data that needs
to be stored continues to increase. Near-term spending on servers will be concentrated on
lower-end servers; longer-term, server spending will be curtailed by virtualization,
consolidation and, potentially, cloud computing.
"Computing hardware suffered the steepest spending decline of the four major IT
spending category segments in 2009. However, it is now forecast to enjoy the joint
strongest rebound in 2010," said George Shiffler, research director at Gartner. "Consumer
PC spending will contribute nearly 4 percentage points of hardware spending growth in
2010, powered by strong consumer spending on mobile PCs. Additionally, professional
PC spending will contribute just over 1 percentage point of spending growth in 2010 as
organizations begin their migration to Windows 7 toward the end of the year."
Worldwide IT Spending Forecast (Billions of U.S. Dollars)

2009
2009
2010
2010
Spending Growth (%) Spending Growth (%)

Computing Hardware
333
-12.5
353
5.7
Software
221
-2.1
232
5.1
IT Services
777
-4.0
821
5.7
Telecom
1,892
-3.4
1,988
5.1
All IT
3,223
-4.5
3,394
5.3
Worldwide software spending is expected to total $232 billion in 2010, a 5.1 percent
increase from last year. Gartner analysts said the impact of the recession on the software
industry was tempered and not as dramatic as other IT markets. In 2010, the majority of
enterprise software markets will see positive growth.
The infrastructure market, which includes all the software to build, run and manage an
enterprise, is the largest segment in terms of revenue and the fastest-growing through the
2014. The hottest software segments through 2014 include virtualization, security, data
integration/data quality and business intelligence. The applications market, which
includes personal productivity and packaged enterprise applications, has some of the
fastest-growth segments. Web conferencing, team collaboration and enterprise content
management are forecast to have double-digit compound annual growth rates (CAGR), in
the face of growing competition surrounding social networking and content.
"Cost optimization, and the shifts in spending form mega suites to the automation of
processes will continue to benefit alternative software acquisition models as
organizations will look for ways to shift spending from capital expenditures to operating
expenditures," said Joanne Correia, managing vice president at Gartner. "Because of this,
vendors offering software as a service (SaaS), IT asset management, virtualization
capabilities and that have a good open-source strategy will continue to benefit. We also
see mobile-device support or applications, as well as cloud services driving new
opportunities."
The worldwide IT services industry is forecast to have spending reach $821 billion in
2010, up 5.7 percent from 2009. The industry experienced some growth in reported
outsourcing revenue at the close of 2009, an encouraging sign for service providers,
which Gartner analysts believe will spread to consulting and system integration in 2010.
"We continue to see a long-term recession 'hangover' as a more-cautious mind-set
continues as the norm among a lot of buyers who keep looking for small, safe deals
where cost take-out is a key factor, said Kathryn Hale, research vice president at Gartner.
"In the face of that ongoing strong pressure to renegotiate contracts, and in the absence of
equivalent pressure from stockholders, we believe vendors will generally choose to
maintain margins over revenue growth."
Worldwide telecom spending is on pace to total close to $2 trillion in 2010, a 5.1 percent
increase from 2009. Between 2010 and 2014, the mobile device share of the telecom
market is expected to increase from 11 percent to 14 percent, while the service share
drops from 80 percent to 77 percent and the infrastructure share remains stable at 9
percent of the total market.
Worldwide enterprise network services spending is forecast to grow 2 percent in revenue
in 2010, but Gartner analysts said this masks ongoing declines in Europe and many other
mature markets as well as an essentially flat North American market.
"Longer term, the global enterprise network services market is expected to grow
modestly, largely on the back of growth in Internet services, such as hosting," said Peter
Kjeldsen, research director at Gartner. "Ethernet services will also grow significantly,
albeit at the expense of both legacy services and multiprotocol label switching (MPLS)."
In India, the software boom started somewhere in the late 1990s. Most of the Indian
software companies at that moment offered only limited software services such as the
banking and the engineering software. The business software boom started with the
emergence of Y2K problem, when a large number of skilled personnel were required to
fulfill the mammoth database-correction demand in order to cope up with the advent of
the new millennium
The profile of the Indian IT Services has been undergoing a change in the last few years,
partly as it moves up the value chain and partly as a response to the market dynamics.
Ten years ago, most US companies would not even consider outsourcing some of their IT
projects to outside vendors. Now, ten years later, a vast majority of US companies use the
professional services of Indian Software engineers in some manner, through large,
medium or small companies or through individuals recruited directly.
The market competition is forcing organizations to cut down on costs of products. The
professional IT services on the other hand are becoming increasingly expensive. The
offshore software development model is today where onsite professional services were
ten years ago. There is a high chance (almost a mathematical certainty), that in less than
ten years, the vast majority of IT services (software development being just one of them)
from developed countries, will be, one, outsourced and two, outsourced to an offshore
vendor.
Despite the global economic slowdown, the Indian IT software and services
industry is maintaining a steady pace of growth. Software development activity is not
confined to a few cities in India. Software development centers, such as Bangalore,
Hyderabad, Mumbai, Pune, Chennai, Calcutta, Delhi-Noida-Gurgaon, Vadodara,
Bhubaneswar, Ahmedabad, Goa, Chandigarh, Trivandrum are all developing quickly. All
of these places have state-of-the-art software facilities and the presence of a large number
of overseas vendors. Indias most prized resource is its readily available technical work
force. India has the second largest English-speaking scientific professionals in the world,
second only to the U.S. It is estimated that India has over 4 million technical workers,
over 1,832 educational institutions and polytechnics, which train more than 67,785
computer software professionals every year. The enormous base of skilled manpower is a
major draw for global customers. India provides IT services at one-tenth the price. No
wonder more and more companies are basing their operations in India.
India's IT industry caters to both domestic and export markets. Exports contribute
around 75% of the total revenue of the IT industry in India. The IT industry can be
broadly divided into four segments
The industry is in an expansion mode right now, with dozens of new offshore IT services
vendors emerging everyday, the industry has a high probability of being subjected to the
80:20 rule in not too distant a future. In perhaps another ten years, 80 percent of all
outsourced offshore development work will be done by 20 percent of all vendors, a small
number of high quality, trusted vendors. Only a few select countries and only the most
professional companies in those countries, will emerge as winners. India will definitely
be the country of choice for offshore software development. We have the potential to
become and remain the country of choice for all software developments and IT enabled
services, second only to the USA. The third choice could be far distant.
India is among the three countries that have built supercomputers on their own. The other
two are USA and Japan. India is among six countries that launch satellites and do so even
for Germany and Belgium. India's INSAT is among the world's largest domestic satellite
communication systems. India has the third largest telecommunications network among
the emerging economies, and it is among the top ten networks of the world.
To become a global leader in the IT industry and retain that position, we need to
constantly keep moving up the value chain, focusing on finished products and solutions,
rather than purely on skill sets and resumes. We need to be able to package our services
as products, rather than offering them as raw material. We need to be able to recognize
and build up on our strengths and work on our weaknesses.
The IT industry has emerged as one of the most important industries in the Indian
economy contributing significantly to the growth of the economy.
The IT industry of India got a major boost from the liberalization of the Indian economy.
India's software exports have grown at an annual average rate of more than 50% since
1991. The structure of the IT industry is quite different from other industries in the Indian
economy. The IT industry of India is hugely dependant on skilled manpower. Primarily a
knowledge based industry, the IT industry of India has reordered significant success due
to the huge availability of skilled personnel in India.
The industry structure in the IT sector has four major categories. These are IT services
IT enabled services
Software products
Hardware
IT services
IT services
IT services constitute a major part of the IT industry of India. IT services include client,
server and web based services. Opportunities in the IT services sector exist in the areas of
consulting services, management services, internet services and application maintenance.
The major users of IT services are
Government
Banking
Financial services
Retail and distribution
Manufacturing
The services which make extensive use of information

andtelecommunication technologies are categorized as IT enabled services. The IT
enabled services is the most important contributor to the growth of the IT industry of
India. Some of the important services covered by the ITES sectorin India are Customer-interaction services including call-centers
Back-office services
Revenue accounting
Data entry and data conversion
HR services
Transcription and translation services
Content development and animation
Remote education,
Data search
GIS
Market research
Network consultancy
Software products
Software products are among the most highly exported products from India. The software
industry in India originated in the 1970s and grew at a significant pace in the last ten
years. Between 1996-1997 and 2002-2003, the Indian software industry grew more than
five times from 2630 crores to 13200 crores. During the same period software and service
exports from India grew by almost twelve times.
Hardware
The hardware sector of the It industry focuses on the manufacturing and assembling of
computer hardware. The consumption of computer hardware is high in the domestic
market. Due to the rise in the number of ITcompanies, sales of desktops, laptops, servers,
routers, etc have been on the rise in recent years. Many domestic and multi-national;
companies have invested in the computer hardware market in India.
Another categorization in the structure of India's IT industry is related to the market.
There are two major market classifications - the domestic market and the export market.
The export market, dominates the IT industry accounting for 75% of the revenue.
Challenges before Indian IT Industry
At present there are a number of challenges that are facing the information technology
industry of India. One of the major challenges for the Indian information technology
industry was to keep maintaining its excellent performance standards.
The experts are however of the opinion that there are certain things that need to be
done in order to make sure that India can maintain its status as one of the leading
information technology destinations of the world. The first step that needs to be taken is
to create an environment for innovation that could be carried for a long time.
The innovation needs to be done in three areas that are connected to the
information technology industry of India such as business models, ecosystems and
knowledge. The information technology sector of India also has to spread the range of its
activities and also look at the opportunities in other countries
.
The improvement however, also needs to be qualitative rather than just
being quantitative. The skill level of the information technology professionals is one area
that needs improvement and presents a considerable amount of challenge before the
Indian information technology industry.
The Indian information technology industry also needs to co-ordinate with the
academic circles as well as other industries in India for better performance and improved
productivity. The experts are of the opinion that the business process outsourcing service
providers in India need to change their operations to a way that is more oriented to the
knowledge process outsourcing. One of the most important crises facing the Indian
information technology industry concerns the human resources aspect. The problems with
outsourcing in countries like the United States of America are posing problems for the
Indian information technology industry as well.
In the recent times a bill has been passed in the state of New Jersey that allows only the
citizens or legal non-Americans to be given contracts. This legislation has also affected
some other states like Missouri, Connecticut, Wisconsin and Maryland. These states are
also supposed to be considering these laws and their implementation. This is supposed to
have an adverse effect on the outsourcing that is the source upon which the information
technology industry of India thrives. The information technology professionals who aim
at working in the country are also likely to be hindered by the legislation as a significant
amount of these professionals have been going to work in the USA for a long time
The size of India's IT industry has grown significantly over the years. The size of this
sunshine industry of India grew from 150 million US Dollars to 50 billion US Dollars
between 1990-1991 and 2006-2007. The growth of the IT industry has been very high in
the last few years. The size of the Information Technology industry of India was 5.7
billion US Dollars in 1999-2000. After the turn of the century the industry experienced
exponential growth to reach the 50 billion mark by 2006-2007.
CHAPTER 4
COMPANY PROFILE
COMPANY PROFILE
Mission Statement
"Semaphore It Solutions maintains a clear focus on providing cutting edge technology
with the highest quality solutions, the greatest time and cost advantages to our customers
to enable them to stay competitive
Who We Are
A Vision of Excellence Given the mix of collective skills & experience, commitment to
deadlines and a strong culture of ethiSemaphore, Semaphore It Solutions has been able to
grow at a pace of over 100% every year since inception. Semaphore It Solutions has ably
adapted to the fast-changing business environment and customer expectations, and has
built a 100 plus person-strong organization. Our formidable list of clients is testimony of
our standing in the industry.
The company is supported by a dynamic second rung of consultants. In keeping with the
current industry requirements, Semaphore It Solutions has developed a mix of
professionals with domain and functional experience, who act as a like-minded sounding
board to the customer - who could be an organization or a candidate. The educated
approach provides a platform for the customer to identify the necessary competitive edge.
Semaphore It Solutionss team-based work culture ensures that employees have the
opportunity to learn, develop new skills or pick up new competencies relevant for the
company's growth.
Semaphore It Solutions respects the stringent expectations of highly competitive, new
economy firms who value commitment and quality from their business partners.
Semaphore It Solutions strives to meet their expectations and is proud to be associated
with such clients.
What We Do
As any HR Manager knows, the most important resource of his/her organization is the
Human resource - their core foundation and backbone. The scenario has become all the
more complex in the last decade with global opportunities, rapid growth and extreme
competition. Business needs and deliverables have evolved in a manner that demand
flexible recruiting options. It is imperative that your organization has suitable processes
in place for their proper functioning & work satisfaction levels.
Semaphore It Solutions is a one-stop solution provider who can help modern
organizations to overcome their business challenges. Semaphore It Solutions understands
the complexity of human resource issues presented by the ever-changing global economy.
We understand IT as an energy source to boost the business performance. Our products
are designed to be reliable, scalable, flexible and able to withstand the pressures of dayto-day activities and in-house processes. With over two decades of man hours experience
in delivering quality IT solutions and products through strategic services, Semaphore It
Solutions InformatiSemaphore is perfectly placed to handle your technology
requirements.
Semaphore It Solutions software delivery capabilities are driven by strong people support
with diversified domain expertise and technical savvy people. Our people carry
experience of working with Microsoft, Deloitte and many software giants.
You need to send the right message to your customers, suppliers, employees! Our content
management experts will work one-on-one with you to devise the message that will exert
the right impact.
Semaphore It Solutions offers your business the opportunity to take advantage of our
tailor made solutions to drive your business momentum with a strong IT environment.
Whether you just need a number of features to be custom programmed in your existing
application or an entirely new custom application, you can trust our experienced
programmers to develop a state-of-the-art application targeted to your unique needs.
For the businesses that are flexible to adapt to the changing business environment today,
our IT development support to strategize, develop and execute new initiatives, will be a
great strength.
From providing system integration solutions, application development and management
services and testing solutions, Semaphore It Solutions helps companies make the most of
their IT investments. Our techno functional professionals understand your business flow
of information to deploy applications that match your organization. Having options of
onshore delivery model and off shore delivery model, you can have the application
designed that accurately matches to your business.
Software Development - Custom application development tailored to the clients specific
business requirements. We deliver rich internet applications combining our solid crossdomain experience, technological expertise and an established development
methodology.
Software Migration and Porting - Our migration services include porting applications to a
new technology platform, database and server porting, data migration, standalone-to-web
migration of legacy applications.
Software Reengineering and Enhancement - We provide reverse engineering of existing
systems to understand their business functionality and technical architecture and
introduce new/enhanced business logic and improved performance.
Software Audit and Testing - Independent software audit and testing of your web
application including code reviews, functionality-to-requirements verification, GUI
usability and HTML standards compliance testing and performance/security/stability
testing.
Development Approach
Semaphore It Solutions uses traditional application development methodologies to meet
the needs of our customers. Specialized in Design, Implementation and Quality
Assurance. And our services include turnkey software solutions and ongoing user
support. We assist in right direction for your business to take toward efficient and
automated computing. Our well experienced Developers help you in developing design,
and customized solution for your business needs.
Feasibility Study
A Feasibility Study is performed at the initial request for service. This is a very high-level
assessment of the requirements to:
Determine the customer's goals for the product to be developed or enhanced
Determine the technical aspects of the project
Estimate the resources required
Identify additional hardware and/or software requirements
Estimate costs of current vs. future operation related to the product to determine
the Return on Investment if applicable
Requirements Definition
During this phase, extensive analysis is performed to identify specific requirements of the
request, which include:
Business Process Impacts and Drivers
Functional Requirements
Data Inter-dependency
Communication Requirements (e.g., multi-site)
Key Dependencies (e.g., Critical Dates to meet, Impact to other organizations)
At the end of this phase, the document is jointly reviewed with the customer to ensure it
accurately reflects their needs
We also provide services for :
Graphic Design
Logo Design
Flash, Streaming Audio and Video
Auction and Portal applications
Corporate Identity
Concept Design
Software Development
Quality Assurance
Training
Consultancy Services
HR Process Outsourcing
Multimedia:
Multimedia presentations, is an ideal and most effective medium to launch new product
range. Dazzling multimedia development in animation & Graphic, Animations, An ideal
Presentation could include your company profile, products details and products or
process animation to suit your needs your complete presentation authored on CD can be
used in many fold ways.
SEMAPHORE offers effective Multimedia Solution and Design services, which helps to
create or developing corporate identity. We provide complete rich multimedia design
solution and Interactive CD presentation solutions using Macromedia Flash, Macromedia
Director, Adobe Photoshop, Adobe Illustrator, and many more.
The first step in creating successful Multimedia CD Presentation is to understand the
clients requirements in detail. We have knowledgeable team who does in depth analysis
of company goal, strategic business plan & their targeted audience. we manage
Multimedia project from start to end including theme development, 3D introduction,

design, programming, sound, voice-over everything you say about multimedia. The types
of media presentation shown via CD presentation is :Corporate Presentation, Product introduction & presentation, Advertising reports,
catalogue, testimonials, virtual galleries, Live animation, full motion high-quality
video, sound, text, vibrant graphic artwork, graphic presentation, graphic
illustration.
Your presentation can include voiceover, music, animation, video and a link to your
website. SEMAPHORE can handle all aspects of your CD presentation like content
development, professional voiceover talent, video, music, CD cover art and CD
production etc.
Software Development
Semaphoreoffers a dedicated development model to our clients in which a software
development team that is dedicated to a single client uses technology, tools, processes
and methodologies unique to that client. Each dedicated development Centre is located at
Semaphorefacility in India and is staffed and managed by the Company. Once the project
priorities are established by the client, Semaphore, in conjunction with the client's IT
department, manages the execution of the project. By focusing on a single client over an
extended time frame, the dedicated development Centre team gains a deeper
understanding of the client's business and technology and can begin to function as a
virtual extension of the client's software team.
Semaphorededicated development centre bring a unique solution to technical resource
requirements of organizations. Professionals in a dedicated development Centre are
focused on a particular technology platform and business domain pertaining to a given
Client. The knowledge assets acquired by the centre remain with it even while individuals
move on to other activities. Clients assign projects to the centre, which assumes full
responsibility of the assignment and delivers end-to-end solutions.
Microsoft .Net Technology :
Microsoft defines .Net as the strategy for connecting information, systems, and devices
through Web services. .Net technology is integrated throughout Microsoft products. .Net
technologies use Web services to help enhance the computing experience with highly
integrated communications and information.
Microsoft .Net is a platform comprising servers, clients, and services. Its toolset consists
of Visual Studio .Net, the Tablet PC, and the .Net My Services. Microsoft .Net was
designed to address the customer needs about how applications will be built, deployed,
and operated. Microsoft .Net was built for integration through XML Web services using
protocols and file formats such as SOAP (Simple Object Access Protocol), WSDL (Web
Services Description Language), and UDDI (Universal Description, Discovery, and

Integration).
A Web service-based IT architecture can be developed and deployed with a set
Microsoft.Net products and tools: servers, web services development tools, applications
to use them. .NET technologies are supported throughout the family of Microsoft
products, including the Windows Server System, the Windows XP desktop operating
system, and the Microsoft Office System.
Though Microsoft has been claiming that .Net is about open and interoperable web
services, when in the other opinion Microsoft is already making their web services closed
and proprietary.
The main strong points of .Net technologies are:
Integrated toolset.
Simpler programming model.
Language neutrality.
Java Enterprise Edition:
The Java 2 Platform, Enterprise Edition (J2ee) defines the standard for developing
multitier enterprise applications.
Enterprise Edition (J2ee) defines a standard architecture that is delivered as the following
elements:
Application Programming Model;
J2ee Platform;
J2ee Compatibility Test Suite;
J2ee Reference Implementation.
The J2ee platform consists of standardized, modular components, by providing a
complete set of services to those components, and by handling many details of
application behavior automatically, without complex programming.
The J2ee platform takes advantage of many features of the Java 2 Platform, Standard
Edition (J2SE), such as "Write Once, Run Anywhere" portability, JDBC API for database
access, CORBA technology for interaction with existing enterprise resources, and a
security model that protects data even in internet applications. Building on this base, the
Java 2 Platform, Enterprise Edition adds full support for Enterprise JavaBeans
components, Java Servlets API, Java Server Pages and XML technology. The J2ee
standard includes complete specifications and compliance tests to ensure portability of
applications across the wide range of existing enterprise systems capable of supporting
the J2ee platform. In addition, the J2ee specification now ensures Web services
interoperability through support for the WS-I Basic Profile. The Java technology is an
open technology. The Java technology recognizes the network's heterogeneous nature and
is supported on all the operating systems and chip architectures. A strict security model
was designed into Java from the beginning. Java supports not only Web services, but also
other kinds of services like wireless data services and services on demand. Java supports
Web services technologies like XML, SOAP, and UDDI and was listed in an Evans Data
Corporation Developer Survey as the number one tool used by developers to build Web
services.
The main strong points of J2ee technology include:

A simplified architecture which is based on standard components, services and
clients, that takes advantage of the write-once, run-anywhere Java technology;
Services providing integration with existing systems, including Java Database
Connectivity (JDBC); Java Message Service (JMS); Java Connector Architecture
(JCA); Java Interface Definition Language (Java IDL); the Java Mail API; and
Java Transaction API (JTA and JTS) for reliable business transactions;
Scalability to meet demand, by distributing containers across multiple system and
using database connection pooling, for example;
A better choice of application development tools and components from vendors
providing standard solutions;
A flexible security model that provides single sign-on support, integration with
legacy security schemes, and a unified approach to securing application
components.
Quality Assurance
We operate a large, completely independent testing laboratory, with experienced full-time
testing and QA specialists and managers with an unbiased view of IT. By employing
SemaphoreQA laboratory services, you will see if your project meets your initial
requirements and the business needs of your industry, both in its current state and in
perspective. We are also able to fully test product functionality, user-friendliness,
performance, stability and many other aspects. Why wait to adjust software to make it
client-friendly, bug-free and adequate to your business needs? While others are struggling
to make it all work smoothly after the development process is over, our customers stay
aware of potential problems and are able to eliminate problems on the fly.
We offer the following QA and testing services:
Software Testing
Complex Testing Service
Functional Testing
Technical Testing
Installation Testing
User Interface Testing

508 Standard Testing
Know types of Testing

Functionality Testing:
Functionality testing is validating that an application conforms to its specifications and
correctly performs all its required functions. During functionality testing, a range of
inputs as test data is created and tests are performed to validate whether each feature
conforms to the requirements provided by the customers or as per blue print.
Automated Testing:
automated testing is the re-execution of a set of tests that have already been conducted to
ensure that changes have not propagated unintended side affects. Automation is often
used to reduce the time and resources to perform this type of testing. Source One uses
state-of-the -art tools to perform automated testing.
Performance Testing:
Performance testing evaluates the system's ability to meet the required performance
levels in production environment. Scalability of the application is evaluated in addition to
investigating how the performance of the application varies by load and usage. The limits
of net-centric applications are tested in Stress Testing.
User Acceptance Testing:
It is about determining whether the software is satisfactory to an end-user or client by
testing the system against the requirements and validating that the system has delivered
what was initially requested.
Product Qualification Testing:
Product qualification testing validates whether the application looks and functions the
same across all platforms, browsers, processors and configurations. We also test whether
installation of the products is properly done or not.
Localization/ Globalization Testing
In this type of testing, software is tested for different locale and international settings so
that the application/product functions in a consistent way in different geographical
locations.
Usability Testing
Usability testing evaluates the application on user friendliness. In addition, we also test
whether all the links in the applications are functioning; whether the response times
adhere to specifications and how well the information is organized in the user interface
Consultancy
SEMAPHORE Consulting focuses in empowering IT departments, be it an ERP services

firm or an embedded tools development company. We provide resources for your
permanent and contract staffing needs. We specialize in mass recruitment processes like
walk in interviews, organizing written tests for fresher etc.. SEMAPHORE Team works
closely with the clients to fully understand the job profile, business requirements and
technical skills required in order to uncover the full scope of the position requirements.
SEMAPHORE Team provides the consultants (for Contract or Permanent

Positions) with expertise in:
Application development and support
Business analysis
Content management
Data warehousing and analysis
Database design, administration, and maintenance
business and Web applications
Management consulting
Network design, implementation, administration, and support
Operating systems support
Project management
Project outsourcing
Software installation and implementation
Software quality assurance and testing
Systems integration and conversions
Technical writing and documentation
CHAPTER- 5
THEORETICAL FRAME WORK
Introduction to Employee relationship in

general
Employee relationship
Employees play a significant role in an organization. Among all the four

resources
land
labour,
capital
and
machinery,
employees
are
considered as important and effective resource. Human resource

consists of skills, knowledge, abilities and qualities of an organization.
Employees are the key for the success of any business. To retain the
efficient people and attract experienced and skilled workers, the
business should maintain good employee relationship. Thus effective
employee
relationship
must
be
maintained
for
an
effective
organizational performance.
Employees in the job market today are seeking comprehensive
benefits & compensation packages. Moreover, if the organization does
not have good employee relationship, then the competitor certainly
takes the advantage of it.
Employee relationship takes care of day-to-day activities in the
organization, A good employee relationship programs tries
to reduce the anxiety of the employee,
improves the communication between the employees,
Increases the employee morale and employee performance.
it reduces employee turnover in the organization and attracts
efficient people from outside and improves the knowledge and
skills required in the organization .
It also helps in reducing the conflicts among the employees and

maintains organization culture and improves it. It takes cares of
benefit and services for the development of the employees.
Employee relationship to be complete must also include employee
benefit
and
services
administration
and
also
identification
developmental needs of employees.
Objective of Employee Relationship:
Good employee relationship is expected to aid the human

resource management.
It is to help establish a cordial relationship between the

management and its employees.
It should enable the manager to have an integrated approach to

the situation in which he manages the business.
It is supposed to establish a mutual regard and recognition

vertically and laterally.
A socialization of organization is expected while improving

employee relationship.
It facilitates employees involvement in the affairs of the

organization leading to better productivity.
It is expected to act as a good motivator and facilitate mutual cooperation and Oneness in the organization.
Employee morale and job satisfaction are expected to improve as

a result of cordial employee relations in organization
Importance
of
employee
relationship
in
an
organization
Employee relationship plays a crucial role in an organization; it is used
to reduce the dissatisfaction among the employees, maintain hygienic
environment for appropriate working conditions. Maintain high
motivation level all the time to improve the productivity and
development of employees. Solve the existing problem to promote
good organization culture. Plan benefit programs to motivate the
employees and retain capable employees from leaving the
organization by providing good compensations and incentives.
Minimize dissatisfaction level.
Plan employee welfare programs and their safety measures.
Maintain hygiene and motivation levels.
Help employees in problem solving.
It avoids the conflicts among the employees.
Helps in proper functioning of organization.
Employee relationship communication includes:Dealing with boss: Dealing with the boss is an important as an executives existence itself.
Every executive must have a special skill and ability to deal with his
boss. The subordinates ability to get along with the boss, irrespective
of his weaknesses, is an important determinant of his success. It is
appropriate for the subordinate to conform to the policies, strategies,
objectives and goals conveyed from the top. He must be able to make
his superiors strengths productive, and to convert his subordinates
potentiality into productivity.
Dealing with peers: Dealing with the peers is another important challenge as they stand
equal in rank and respect. An effective manager knows how to get
along with his peers in his own and other department, cooperating with
them in their tasks and not indulging in things which are not concerned
with them. It is always proper to reserve reactions when one is in
provocation, and control ones emotions when one is likely to lose
temper. This is essential, especially in dealing with the peers.
Line-staff conflict, conflict between departments, conflict of

generation gap, stresses due to role conflict, and so on crop up in the
relation between peers. Proper approach on the part of the executive in
dealing with peers will go a long way in preventing many such work
place conflicts.
Dealing with subordinates: Managers behaviour to his subordinates is another determinant of his
effectiveness. It is always appropriate on his part of the superior to
bear in his mind that his subordinates are not machines and they
cannot work like machines. They are also individuals human beings
with passion, pride, prejudice, strengths, weaknesses, emotions,
feelings, temperaments, and so on. They may not always be as
efficient as the superior expects them to be. Therefore the
responsibility of the manager is to take into account all such aspects,
and to provide a conductive environment and motivation to the
subordinate. The superiors behaviour has a considerable role to play
in this respect.
Dealing with problem employee: Among the various types of people a manager has to deal with,
problem employees are important. If the problem is not properly dealt
with, one problem employee can create problems for all. A little fire
may consume a large forest, a small hole can sink a huge ship, a weak
link can weaken a strong chain, and a problem employee can create
problem for the whole organization. Hence, dealing with a problem
employee is not a matter of less importance for a manager. Managers
imaginative approach and thoughtful behaviour are essential in dealing
with every problem employee.
Catharsis is a good method to deal with a problem employee,
which is the discharge of emotional tensions. Even counseling is very
positive method to deal with a problem employee.
Who is an employee and who is not.

An employee is...
An employee is anyone who has agreed to be employed, under a
contract of service, to work for some form of payment. This can include
wages, salary, commission and piece rates.
An employee is not...
a volunteer, who does not expect to be rewarded and receives

only a reimbursement for their expenses
a self-employed or an independent contractor
a sharemilker
a real estate agent who has a contract that says they are an
independent contractor.
Indications of being an employee

If all or most of these features are present in a work relationship, it is
likely to be an employment relationship between employer and
employee:
The intention of the employer and employee is to form an

employment relationship, and this is shown in any written
agreement or correspondence and/or by the behaviour of the
parties to it.
The employer or their agent controls the hours worked.
The employer or their agent has the power to hire and fire.
The employer makes the profit or loss from the enterprise.
The employer deducts ACC premiums and PAYE tax on behalf of

the employee.
The employer supplies materials for the work.
The employer owns or leases the equipment needed.
The employee is bound to one employer at a time and is

expected not to compete or offer his or her skills to competitors
of the employer.
Indications of being a self-employed contractor

If all or most of the following features are present in a work
relationship, it is likely to be a contract for services involving a selfemployed contractor:
The intention of the parties to the contract is not to form an

employment relationship, and the actual nature of the
relationship reflects this.
The contractor controls how and when the job is done.
Payment is made in a lump sum at the end of a job, or in

installments as progress is made on the job.
The contractor can choose who does the job and can hire other
people without approval from the other party.
The contractor pays any tax, ACC and insurance directly.
The contractor can make a profit or suffer a loss directly.
The contractor supplies equipment and materials.
The contractor is free to accept similar work from a number of

sources at the same time.
Employee or contractor?
Sometimes it is not clear whether someone is an employee or a selfemployed contractor. This can be the case where:
someone is engaged as a self-employed contractor, but they

think they are really an employee; or, more typically
during the course of either an investigation by a Labour

Inspector, in the course of mediation or before the Employment
Relations Authority, where there is an action, say to recover
arrears of wages or holiday pay, the actual nature of the
relationship sometimes comes into question.
Here, mediation assistance can first help settle the real nature of the
relationship or the Authority can determine the matter. Also, the
Employment Court can be asked to determine employment status
either of an individual or a group of people in the same position.
Home workers are employees
Anyone who works for somebody else in a private home (other than
work on the house or its fittings or furniture) continues to be classed as
an employee under the Employment Relations Act 2000.
This might be so even if the arrangement does not look like an

employment relationship. For example, a person who works at home
and buys in material to make a product that is sold back to the
provider could be considered a home worker.
People intending to work are employees
The Employment Relations Act 2000 says that people who have been
offered and have accepted employment are employees from the date
of acceptance. They have the rights of employees. This applies even if
the employees have not actually started to do the work.
Fixed-term and seasonal employees

Sometimes employers and employees agree that employment will be
for a set period of time (e.g. for six months) or until a certain event
occurs (e.g. until a particular project ends) or until work is completed
(e.g. until the fruit is picked).
The basic rights and obligations of employees and employers apply to
fixed-term and seasonal employment, except that the employment
relationship ends at the end of the fixed term. The way in which
provisions for annual holidays, sick and bereavement leave are applied
can vary for these employees
Note, however, that employers must have genuine reasons for the
fixed term. An employee cannot have a fixed-term arrangement when
the job is really a permanent one. Also, employers have some special
obligations when employing employees on a fixed term. They must set
out in writing, in the employment agreement, the reasons for the fixed
term and how the employment will end.
Casual or part-time employees
Sometimes employment is on a casual basis. In other words, the
employer and employee agree that the employer will offer the
employee work when work is available. Temping agencies often employ
people on this basis.
At other times, employers employ employees on a part-time basis
(e.g. 7am to 10am on Tuesdays and Thursdays).
The basic rights of full-time employees apply equally to part-time
employees. These rights also apply to casual employees, but the way
in which provisions for annual holidays, sick and bereavement leave
are applied can vary for these employees.
Probationary or trial employees

Employers and employees may agree to an initial probationary period
or trial period. This must be recorded in writing in the employment
agreement. The basic rights and obligations of employees and

employers apply to probationary employment.
Employers have some special obligations when employing employees
on a probationary arrangement.
Employee safety
Employee safety:- ever since the beginning of this century, employee
safety and accidents have been attracting the attention of the
psychologists, sociologists and industrial engineers.
As an employer, he has the responsibility to provide a safe working
environment for their most important assets, their employees! If an
employee becomes injured at work, business may suffer. One of the
highest priorities that an employer must consider is taking the
necessary time and initiative to help protect employees.
Ergonomics
Visual Display Terminals: - It is important that employees are educated
on the proper positioning of all elements within an employees
workspace. There are a variety of recommendations that can be
followed in an effort to reduce the onset of injuries, including:
Limit twisting and unnatural body positions by placing everything

that is needed regularly in close proximity.
Make sure that the visual display screen is positioned directly in

front of the individual and at a comfortable height, preferably at
or just slightly below eye level.
Set the contrast or brightness of the screen to suit personal

viewing.
Position the keyboard and mouse directly in front and close to

the individual.
Adjust the height of the workstation chair so that feet are firmly
resting on the floor and weight is evenly distributed over the full
seat surface.
Adjust the armrests of the chair and the position of the keyboard
so they are in a neutral alignment, so that the arm, wrist, and
hand also take on a neutral position when typing and using the
mouse.
Perform simple exercises throughout the day to help reduce

tension or stress that might be built up due to excessive
computer work.
Employee health:-
One of the important areas which fall under employee relationship is

employee health. Professional efficiency, good health and productivity
are interrelated.
Good health can promote high employee morale and productivity i.e. a
healthy employee can work full time and has a greater productivity
potential. Good employee health is also associated with better
capability and leadership. Good health leads to positive attitude.
The employees with good health are generally enthusiastic and try to
achieve higher and higher goals in life.
The world health organization (WHO) defined health as a state of
complete physical, mental, and social well being and not merely an
absence of disease or infirmity.
Objective of organization health:The basic objective is prevention of disease and injury rather than the
cure of the disease.
The promotion and maintenance of the highest degree of the

physical, mental and social well being of employee.
The prevention of factors which make ill health in their working

conditions.
The protection of the employee in their occupation from risks

arising from factors which are adverse to the maintenance for
the health.
Significance of employee health:
The employee health is significant because of the following

reasons:
To maintain and improve productivity and quality of work.
To minimize absenteeism and employee turnover.
To reduce industrial unrest, indiscipline and accidents.
To improve employee motivation and morale.
To reduce spoilage and cost of operation.
To preserve the physical and mental health of employees.
Mental health of the employees:- the employee should adopt the

following measures to improve the mental health of the employees
because a mentally tense, anxious and sick persons has a tendency to

develop various symptoms of organic:
Ensuring all facilities to employees in time to avoid tensions and

diversion of mind.
Prompt decision making regarding the cases of the employees.
Ensuring transparency in administration to develop confidence

and commitment among employees.
Encouraging honest and hardworking employees to create

mental happiness. Psychologists have proved the motivational
value of the non-monetary factors. Such motivation to self
actualize would lead to mental happiness.
Locating shirkers and providing counseling to them, to protect

the mental health of the organization.
Inculcation of ethical values.
Improve interpersonal communication at all levels.
Arrange regular sessions to teach workers how to reduce stress

by techniques like yoga, relaxation exercises etc.
Social health of the employees:-social health is another dimension

of the employees health. Social health means how an individual can
have health relations with persons with whom he comes in contact.

The following measures may be initiated to ensure
The social health of the employees:
Arranging meetings in office time to involve the employees, so

that a sense of belongingness can be created in them.
Provision of the good staff clubs with all amenities of indoor and
outdoor games. This informal relationship among employees and
their families can generate bonds of friendship. Love and
affection and these feelings can be transferred on the work
situation.
Free access to seniors to remove a large number of tensions and

unnecessary reference.
Arranging cultural programmes during festivals or other

occasions so that employees can get relaxed and feel charged.
Arranging tours to nearby scenic places or hill stations to refresh

the minds of the employees and to accelerate the rate of social
interaction.
Spiritual health of the employees:- Health has its base in spiritual

powers. Organization can arrange different lectures on spirituality
which can keep the health of the employees in the good shape as well
move them to positive actions. Many medical schools in the USA are
offering courses in spirituality, religion and health. Studies have found

that religious folks have lower blood pressure, less depression and
anxiety, stronger immune system and generally spend less money on
medicines than people who do not believe in the existence of god and
are less involved in religious activities. Scientists cannot prove that god
heals but they can prove that believe in god has a beneficial effect.
There is little doubt that healthy religious facts and practices can help
people get better.
We can say that physical, social, mental and spiritual balance is
the most desirable for the perfect employees health. Thus, the
employers should devise ways and means to develop physical, social,
mental and spiritual capabilities of the employees to generate and
happiness in the organization.
Employee welfare
Employee welfare:-employee welfare activities benefit not only the
employee but also the management in form of greater organization
efficiency.
Significance of employee welfare:- The basic objective of employee
welfare is to enable employees to live a richer and more satisfactory
life. Employee welfare is in the interest of the employee, employer and
society as a whole.
Benefits to employee
Welfare facilities provide better physical and mental health to the

workers and make them happy.
Welfare facilities like housing, medical benefits, education and

recreation facilities for the workers families help to create
contended workers.
Improvements in material, intellectual and cultural conditions of

life, protects workers from social evils like drinking, gambling etc.
Benefits to employer
Welfare measures help to improve the goodwill and public image

of the enterprise.
Welfare serves to maintain some peace with the employees

unions. Employee welfare also helps to improve employee
relationships and organizational peace.
Employees turnover is reduced due to the provision of welfare

facilities. Employees take active interest in their jobs and work
with a feeling of involvement and satisfaction.
Employers secure the benefit of high efficiency, cordial employee

relations and low absenteeism and turnover.
Benefits to society
Employee welfare is also in the interest of the larger society
because the health, efficiency and happiness of each individual present
the general wellbeing of all. Well housed, well fed and well looked after
employee is not only an asset to the employer but serves to raise the
standard of organization and employee in the country.
Types of employee welfare services
Within the organization services
medical facilities
recreational facilities
libraries
canteens
rest rooms
Washings and bathing facilities.
Out side the organization services
housing accommodation
children education
sports fields
holiday homes
leave travel facilities
Interest free loans.
Transportation
Introduction to benefits programs in

general
Benefit programs: Employee benefits have a significant financial and administrative
impact on a business. The educated American work force has come to
expect a comprehensive benefits program; the absence or inadequacy
of such a program can seriously hinder a company's ability to attract
and retain the best personnel. Designing the right benefit plan for your
employees is a complex task that includes taxes, legal aspects,
funding, and selection of vendors or administrators.
Effective management of employee benefits is an important means by

which organization successfully attract, motivate and retain
employees. The employers should establish and maintain as employee
benefits programs that reward the efforts of employees in the

organization. Cash compensations received inn the form of wages,
salaries and incentives, comprise direct compensation, which forms a
major part of organizational cost. Benefits and services also referred to
as indirect compensation, account for the about 40% of an average
firms costs in United States and even higher in percentage in
European countries.
Employers have sought to increase indirect
compensation to motivate and retain employees, discourage labor
unrest and remain competitive in employee market. Employees seek
benefits and services from the employer to take advantage of low
costs, taxes and inflation protection. Moreover, they view benefits and
services as a means to increase the quality of work life.
The level and type of benefit program available to employees varies
widely from firms to firms. Many organizations have adopted flexible
benefit plans. The management decides the benefits programs by
assessing employee preferences, considering the rules of
administration and after analyzing the cost of benefits.
What is an Employee Benefit Plan?

An employee benefit plan protects employees and their families from
economic hardship brought about by sickness, disability, death, or
unemployment; it provides retirement income to employees and their

families; and it provides a system of leave or time off from work.
A comprehensive benefit plan can include health insurance, disability
insurance, life insurance, retirement plan, flexible compensation
(cafeteria plans), and leave from work. Broadly defined, a benefit plan
can include other components such as bonuses, service awards,
reimbursement of employee educational expenses, and other benefits
appropriate to employee responsibility.
Why Offer Your Employees Benefits?
Here are some of the reasons employers offer benefits:
To attract and hold capable personnel.
To keep up with competition.
To foster good morale.
To provide opportunities for advancement and promotion as older

workers retire.
A combination of benefits programs is the most effective and efficient

means of meeting employees' economic security needs. For many
employers, a benefit plan is an integral part of total compensation,
because employers either pay the entire cost of a benefit plan or have
employees contribute a small portion of premium costs for their

coverage
Employee benefit and services includes:
Leave Programs
Health and Life Insurance Benefits
Retirement Benefits
Survivor Benefits
Long Term Care Insurance
Flexible Spending Accounts
Health Savings Accounts
Retirement and Benefits
Retirement
Leave
Health Insurance
Life Insurance
Long Term Care Insurance
Flexible Spending Accounts
Work/Life Enrichments
Survivor Benefits
401(k) Plans
401(k) plans are retirement plans that are designed to encourage longterm retirement savings by employees. 401(k) plans need to meet a
variety of rules contained in Section 401(k) of the Internal Revenue
Code. But these be plans are very popular among companies and
employees
Here are the key features of such plans:

Employer contributions: The employer can contribute to the plan
(subject to certain limits) for the employee's benefit, and the employee
doesn't have to pay immediate income tax on that contribution.
Employee contributions: The employee can elect to contribute a
portion of his or her salary to the plan, and then the employee doesn't
have to pay immediate income tax on that contributed salary.
Investment of contributions: The employee can choose how to

invest contributed money (in stocks, bonds, and other qualifying
investments, for example).
Tax deferral: The taxes on the contributions and the plan's
investment earnings are deferred until the employee withdraws them
(generally at retirement).
Loan: In some instances, a participant may be able to take a loan
against the 401(k) account, and as long as the employee repays the
loan before taking a distribution from the plan, the funds remain tax
deferred.
Withdrawals: Unless the employee is age 59 or another exception
applies (such as total disability), withdrawals by an employee may be
subject to both a 10 percent penalty and regular income tax.
Rollovers: Penalties and taxes generally do not apply if the employee
changes jobs and "rolls over" his or her sums in the plan to the new
employer's qualified plan that accepts rollovers. Penalties and taxes
can also be avoided in certain circumstances for rollovers into an IRA.
Incentives plans
Incentive plans are designed to compensate employees for work done,
skills they have acquired and used, the time they spend on their jobs,
etc. There are a variety of possible arrangements that can be made

including: stock options, bonuses and profit sharing plans, flexible
schedules, telecommuting or additional vacation days.
The type of incentives organization offer will depend largely on:
The size of your business and number of employees
The structure of your business
The profitability of your business
The level of experience and base salaries of the employees
The economic climate
Some of the incentives systems the organizations commonly

used are:
Stock option plans: Stock option plans are typically structured so

that an employee must be employed by the company for a certain
amount of time before he is able to exercise the option (often referred
to as "vesting"). For example, a company may offer a stock option of
10,000 shares, vesting equally each year over four years. This means
that the employee can, after one year, exercise options for 2,500
shares at the option price set forth on the initial date of grant. If the
stock has doubled or tripled in the course of the year, the employee
can exercise his option to take ownership of the shares and then sell
them for a profit. If, however, the stock has remained the same or the
per share price has dropped, the employee can deicide not to exercise
his option at that time.
In recent years, employees have met Stock Option Plans with less
enthusiasm than in the late 1990s. As the stock market took a
downturn, the incentive of receiving options became less of a
motivating factor. Nonetheless, since the stock market has traditionally
rebounded over time, Stock Option Plans still remain a valuable part of
a long-term incentive package for employees who are expected to
remain with the company for many years. When the economy is
strong, Stock Option Plans can make employees very wealthy as they
share in the success of the company.
All of the terms, including the time frame, vesting, the exercise price
(typically the market price at which the employee can purchase shares
of the stock) and the total number of shares of the stock to be issued
should all be clearly detailed in the Stock Option Plan.
Bonuses: A monetary bonus can certainly serve as an incentive.

However, it can also set a standard that can be hard to follow. Once
word spreads that an employee received a monetary bonus, others will
anticipate the same for their good work. Therefore, unless the bonus is
part of an Employment Agreement, you need to establish a policy that
details the expectations of an employee before he or she will be
eligible to receive such a bonus.
Any plan to offer monetary bonuses should be made prior to the
annual budget so it can be included as a budget item. Bonuses are
typically determined based on a percentage of the employees salary
in conjunction with his or her position and/or standing in the company
and the value of the work he or she has performed.
Besides cash bonuses, other types of incentive bonuses include:
Gifts
Extra vacation time
Extra personal days
Profit sharing plan: If a company is doing well, sharing profits with

employees serves as a very strong incentive.
Such plans will need to be carefully designed and spelled out. Typically,
the company will set a starting point for determining when profits will
be shared, such as once the company earns profits of at least
$250,000 for the fiscal year. What percentage will be shared and who
is eligible to benefit from the Profit Sharing Plan must also be
determined in advance. For example, a company might decide that
15% of all profits over $250,000 will be distributed to all senior
employees who have been with the company for at least three years.
Each employee will receive an amount based on his or her salary at the
end of the previous calendar year. All of these parameters should be
decided upon with the help of your financial advisor and/or attorney.
Retirement plans: Many companies offer 401(k) plans, which are
retirement plans for long-term employee savings. Employees may
contribute up to a certain amount of their salaries into the retirement
plan on a regular basis. The money is not considered taxable income
upon contribution and it is generally deducted automatically from each
paycheck. It is then typically invested in stocks, bonds or mutual funds.
The employee can select from several choices of investment options.
The employer can also contribute money, or in some cases stock, to
the employees 401(k) plan.
The money invested must remain in a 401(k) plan until the employee
reaches age 59 , at which time he or she can start withdrawing from
the plan without penalties. At this point, however, he or she will pay
income taxes. Should an employee change jobs, the plan can be rolled
over into a new 401(k) plan within a certain time frame. Some plans
also allow a participant to take out a loan against the plan. The loan
must then be repaid before the employee takes any money from the
plan in order for the funds to remain tax deferred.
Before setting up such a plan you should review the particulars with
your accountant who will help you abide by the IRS rules and
regulations concerning 401k plans. Retirement plans are generally an
attractive benefit for employees.
Piece-rate system: - A standard rate of pay is fixed for each unit of
output produced by a worker. This is called straight the piecework plan.
For example, many computer chips manufactures pay the workers at a
flat rate of $3 per component. These systems are easy to understand,
simple to calculate and act as effective motivational tool. This system
cannot be used for a job which cannot be used be objectively
measured as in the case of a receptionist or jobs which are
interrelated like that of assembly-line workers.
Standard hour plan: - In this system, incentives are provided when
an employee completes the work than the time required for its
completion. For example, the standard time set for servicing a car is
four hours for an auto mechanic. The pay rate for each hour is set as
$6 per hour. Even if the mechanic completes the work in three hours,
he is paid $24.
Commissions: Employees are paid commission either as straight
commission or salary-plus-commission:
Straight commission- the total pay of the employee is determined by

the commission formula. A companys turn over, its policies and
strategies determine the commission formula.
Salary-plus-commission- a basic monthly salary along with a
commission incentive is provided in this method. The commission
portion may vary from 20-40% of the total value of the companys
turnover.
Employee Health Plans and Other Benefits

A variety of health insurance and related benefits are tax-deductible to
corporations for all employees. If the business is not incorporated,
business owners can't deduct the cost of these insurance plans (with
the exception of health insurance plans) for themselves, but they can
deduct these costs for their employees.
Health insurance
Due to rising medical costs, employees usually value their health
insurance coverage over other traditional employee benefits. Consider
these issues when establishing a health insurance plan for your small
business:
Commitment of the insurer to its health insurance business: Choose
among the biggest plans in your area. Besides increased likelihood of
staying in the business, larger players can negotiate better rates from
providers.
Comprehensive, catastrophic coverage: So-called major medical
coverage pays for the potentially large expenses such as
hospitalization, physician, and ancillary charges (such as lab work).
Health insurance plans specify the maximum total benefits ("lifetime
maximum benefits") that they'll pay over the course of the time that
you're insured by their plan.
Choice of health care providers: Health maintenance organizations
(HMOs) and preferred provider organizations (PPOs) restrict your
choice of health care providers to reduce costs. The major difference
between HMOs and PPOs is that PPOs pay the majority of your
expenses if you use a provider outside their approved list, whereas an
HMO won't cover this at all.
Dependent care plans

A dependent care plan enables you and your employees to put away
money from your paycheck on a pretax basis, which you can then use
to pay for childcare expenses or to care for an ill or aging parent. Doing
so saves you federal, state, and even Social Security taxes.
Dependent care spending accounts are a "use it or lose it" benefit. If

you or your employees aren't able to spend the money for childcare
expenses in the current tax year, at the end of the year the IRS forces
you to forfeit all the money that you haven't used.
Flexible benefit plans

Under a flexible benefit plan (also called cafeteria or Section 125
plans), employees have a choice for a portion of their compensation to
receive it as pay or to put those dollars toward purchasing benefits of
their choosing from a menu offered by their employer. However,
because flexible benefit plans are time-consuming and fairly costly to
establish (around $1,000) and administer (about $1,000 per year), they
aren't practical for a small business with fewer than ten employees.
Disablement benefit
Employees who are disabled temporarily or permanently due to
employment injury or occupational disease are entitled to get the cash
benefit. Compensation is provided to employees depending on
whether, employees are covered in Employees state insurance Act or
workmens compensation Act.
Maternity benefit
The maternity benefit act, 1961 aims at regulating employment of

women employees in certain establishment. Under the Act , a women
employee gets maternity leave up to 12 weeks from date of
delivery(with full wages) with an option to take this leave at 6 weeks
prior and 6 weeks after the date of delivery.
Key Compensation Components

Compensation has become a far more complicated issue than just
deciding how much to pay your employees. In addition to salary,
employers must consider many other components 401(k) plans,
stock options, bonuses and vacation that have become part of
compensation packages today.
Employees also have greater expectations of what should be included
in their compensation packages, and they may demand specific
benefits that can be costly for small businesses.
Costly or not, building a fair and attractive compensation packages is
critical for attracting and retaining employees. When setting up your
compensation package, consider the following.
Salary and wages
This is usually the single largest component of a compensation

package and, not surprisingly, the most common point of comparison
used by employees and potential employees. Salary should be tied to a
person's skills and experience. Subsequent increases need to be based
on an employee's performance, value and contribution to an
organization
Check salary surveys and want ads, and scout out competitors to see if
they are underpaying or overpaying their staff. Paying too much is an
unnecessary drain on your resources, but paying too little will make it
difficult to find and keep the best people.
Bonuses
Employee bonuses, which are usually paid in a single lump at the end
of the year, are one way of providing performance incentives. Profitsharing plans are a more formal way of doing this, but they're not as
effective for rewarding individual performance and compensating
employees for meeting their goals.
Long-term incentive
Stock options or stock grants not only provide long-term incentives to
employees, but they can also help retain valuable team members
through your organization's crucial start-up phase.
Health insurance
Employer-sponsored health insurance is fairly standard among

medium-size companies. And it's a benefit that has great value to
employees. An employer-sponsored plan saves employees money and
gives them peace of mind in knowing that they won't be denied
coverage, even if they have existing health problems.
If you think you can't afford it, think again. Providing insurance to your
employees sends the message that you care about their health and the
health of their families. To minimize costs, consider having employees
pick up part of the tab. Employees who have coverage through a
spouse may want to opt out of a plan, particularly if there's a cost
associated with it.
Life and/or disability insurance
This is also a benefit that usually costs less when it's purchased by an
employer rather than an individual.
Retirement plans
401(k) plans have become popular because they are relatively easy to
administer and are less expensive than traditional pension plans. Many
employees like these plans because they maintain some control over
the amount of their contribution and how the money is invested. Most
small companies try to put some kind of savings or 401(k) plan in
place, even if they don't contribute money to them.
Time off and flexible schedules

This includes holidays, vacations, sick days and personal days. An
employer unable to offer competitive salaries may close part of the
gap by offering more time off or flexible work hours. Some employers
make no distinction between sick, vacation and personal days and
allow employees a set number of days off each year to be used at their
discretion. This prevents employees from abusing sick days and keeps
employees from feeling that they need to lie when a child is ill or a
personal emergency arises.
Miscellaneous compensation
Other forms of compensation to consider include employee assistance
programs, which can provide everything from psychological counseling
to legal assistance; discounts on company products; use of company
cars; and any other incentives that motivate employees and give your
company a competitive advantage.
Pension Plan Basics

Finding and keeping good employees is a difficult prospect for any
business. Yet even small firms can compete in the job market if they
know how to use the right benefits to beef up their compensation
packages. One way to do this is to offer your employees pension plans.
Types of Plans
Pension plans fall into two major categories: qualified (or tax-qualified)
and nonqualified plans. Qualified plans come in two flavors:
Defined benefit plans. In this type of plan, an employer pays a

retired employee a fixed amount, based on a formula that
includes such factors as an employee's age, earnings and years
of service. Most employers fund their plans by placing money in
dedicated investment funds under the control of professional
money managers.
Defined contribution plans. In this plan, employees contribute to

their own pension accounts and assume a share of the
investment risk. In some cases, the employer also contributes to
the plan, usually by matching the employee's contribution. Some
of the most popular retirement plans, including 401(k) plans, fall
into this category.
Pension Plan Guarantees

Defined benefit plans provide a safety net: If an employer is no longer
able to fund its pension plan, the federal Pension Benefit Guaranty
Corporation (PBGC) can step in and take over the plan. The PBGC
collects insurance premiums from employers that offer defined benefit
plans; in return, the government guarantees that pension recipients

will continue to receive their benefits.
Defined contribution plans do not enjoy similar guarantees. The return
on this type of plan depends largely on how much employees (and
employers) contribute to their plans and how they decide to invest
their funds.
Qualified pension plans meet guidelines established in the Employee
Retirement Income Security Act of 1974 (ERISA) and the Internal
Revenue Code. As a result, qualified plans offer several key benefits:
Growth inside a qualified plan is not taxable until it is distributed;
employer contributions are tax-deductible; and employee contributions
also are not taxable until they are distributed.
Nonqualified plans don't meet ERISA guidelines and the requirements
of the Internal Revenue Code, and they don't get the same tax breaks.
These plans are usually designed to provide deferred compensation for
executives and high-level employees, and are not as well-suited for
basic employee retirement plans.
Discontinuing Pension Plans
occasionally, an employer will terminate a pension plan, either
voluntarily or due to factors beyond its control. There are two ways to
proceed with a termination:
Standard termination An employer can terminate a fully funded

plan if it demonstrates that it has enough money to pay all of its
future benefits. The plan then provides benefits by purchasing an
annuity which is usually distributed periodically over an
employee's lifetime or through a lump-sum payment.
Distress termination under certain conditions (such as

bankruptcy), an employer can terminate a plan even if it lacks
the money to pay what it owes. In order to complete a distress
termination, an employer must show that it is financially unable
to support the plan. The PBGC then steps in and ensures that
current and future retirees receive their benefits.
Developing Vacation and Sick Leave Policies

When developing sick leave and vacation policies for your company,
there are some things you must do, because you're required to by law,
and some things you should do, because they'll help you retain your
top people
First, the legalities: The Fair Labor Standards Act (FLSA) doesn't require
payment for time not worked, such as vacations, sick days or holidays.
These benefits are matters of agreement between an employer and an
employee (or the employee's representative). Believe it or not, the only
legally required benefit employers are obligated to maintain is workers'
compensation insurance; employers aren't required to give paid time
off for sick days or vacation days.
Furthermore, the Family and Medical Leave Act (FMLA) entitles eligible
employees to take up to 12 weeks of unpaid, job-protected leave in a
12-month period for specified family and medical reasons. The FMLA
applies to all public agencies as well as any private-sector employers
who employed 50 or more employees in 20 or more workweeks in the
current or preceding calendar year. Eligible employees include those
who have worked at least 1,250 hours over the previous 12 months.
Beyond your legal duties, you should adopt policies that make sense
for your employees and your business. Good benefits are a key
component of employee satisfaction and retention. Traditionally,
companies have set up programs where employees get a certain
number of days for paid sick leave and a certain number of days for
paid vacation. This type of plan is easy to institute; you simply decide
how many sick days and vacation days to give employees per year, put
it in writing your employee manual is a good place to start and let
everyone know.
While this system works well for many companies, you might want to
consider altering it to give your employees more respect and
autonomy. There are ways to do it that won't cost you anything extra.
For example, some companies pool these different types of leave into a
unified bank of hours that employees withdraw from; instead of giving
employees 10 vacation days and 5 sick days a year, you might decide
to give each person 120 hours of paid time off a year to use as they
see fit.
This plan has many benefits. First, it allows employees to schedule

days off without having to tell any white lies. It also means that
employees don't feel cheated when they're not eligible for certain
types of leave. What good is it when you give employees time off to be
with sick kids if an employee has no children? The great thing about
this plan is that employees get choices for using their time off. They
may use it for vacation, personal time or sick days, or they can just
accumulate it; it's like a savings account. Some employers even allow
employees who accrue more than a predetermined amount of paid
time off 80 hours, for example to redeem the excess hours by
exchanging them for cash at the worker's current pay scale
The amount of paid leave you give your employees is up to you, but
there are industry standards to keep in mind. On average, new
employees usually get about 17 or 18 days off per year, allocated
evenly between sick and vacation days. Professional, long-term
employees could accrue 30 or more days off a year. To learn more
about the norms in your industry, check the Chamber of Commerce
salary and benefits reports for your area. Industry associations might
also be able to provide this type of information.
Survivor Benefits
If the employee, annuitant or compensationer was enrolled in the
Federal Employees' Group Life Insurance (FEGLI) Program, life
Insurance benefits may be payable. If the deceased was a Federal
employee, you must contact the employing agency where he or she
last worked. If the deceased was receiving compensation from the U.S.
Department of Labor for an on-the-job injury or was a Federal retiree,
you must contact the OPM Retirement Office by phone toll free 1 (888)
767-6738 or click here: Report the Death of Someone who receives
Benefits from OPM
The appropriate office will supply the claim form needed to apply for
FEGLI benefits and will complete the required paperwork to certify the
life insurance
OPM pays annuities and provides retirement and benefit services to
over 2.3 million Federal retirees and their families
Health Savings Accounts (HSA)

A High Deductible Health Plan (HDHP) with a Health Savings Account
(HSA) or a Health Reimbursement Arrangement (HRA) provides
traditional medical coverage and a tax free way to help you build
savings for future medical expenses. The HDHP/HSA or HRA gives you
greater flexibility and discretion over how you use your health care
benefits.
The HDHP features higher annual deductibles (a minimum of $1,100

for Self and $2,200 for Self and Family coverage) than other traditional
health plans. The maximum amount out-of-pocket limits for HDHPs
participating in the FEHB Program in 2006 is $5000 for self and
$10,000 for Self and Family enrollment. Depending on the HDHP you
choose, you may have the choice of using in-network and out-ofnetwork providers. Using in-network providers will save you money.
With the exception of preventive care, you must meet the annual
deductible before the plan pays benefits. Preventive care services are
generally paid as first dollar coverage or after a small deductible, or
co-payment. A maximum dollar amount (up to $300, for instance) may
apply.
When you enroll in an HDHP, the health plan determines if you are
eligible for a Health Savings Account (HSA) or a Health Reimbursement
Arrangement (HRA). If you are Medicare enrolled, you are not eligible
for an HSA. Each month, the plan automatically credits a portion of the
health plan premium into your HSA or HRA, based on your eligibility as
of the first day of the month. You can pay your deductible with funds
from your HSA or HRA. If you have an HSA, you can also choose to pay
your deductible out-of-pocket, allowing your savings account to grow.
Introduction to motivation
Motivation
Motivating employees is one of the main objectives of employee
relationship management, as motivated employee is more productive
and creative.
Motivation is considered as one of the most important aspects of
actuating because it is motivation that energizes the behaviour of
people, while behaviour activates action and action leads to actuation.
Motivation is a set of processes concerned with the force that
energizes behaviour and directs it towards attaining some goal.
Motive: - its an inner state which stimulates action or moves backed
by drive. It can be the cause of an inner drive. The terms like wants,
needs, desires, wishes, aims, goals, drives, motives and so on are
related to motivation. This may be the reason why the Latin word
movere which means to move is considered as the root of the term
motivation.
The relationship between needs drives and goals can make

an integral part of motivation. Motivation implies a goal towards which
the movement occurs. It means that motivation causes action. needs
are synonymous with wants, motives or impulses which results in
action, while a drive is a force that affects a situation by pushing on a
specific direction. Goals on the other hand are ultimate objectives for
the achievement of which behaviour and action are directed.
Motivation is an internal state or condition (sometimes described as a
need, desire, or want) that serves to activate or energize behavior and
give it direction.
internal state or condition that activates behavior and gives it

direction;
desire or want that energizes and directs goal-oriented behavior;
Influence of needs and desires on the intensity and direction of

behavior.
The arousal, direction, and persistence of behavior.
Offering a great health plan, a 401k retirement plan, and four weeks of
vacation each year is not motivation. Benefits, vacation, and salary are
employee retainers and not employee motivators. A company offers
these benefits in order to attract and retain talented workers. Take a
look at any company and we will find that the more valuable the
employee is to the company, the more valuable their benefits

packages will become.
The employees who work for our company are naturally motivated. All
we need to do is to utilize their natural ability, which we can do without
spending money. In fact, money can actually decrease an employee's
motivation and performance. The first step in utilizing your employees'
natural abilities is to eliminate your organization's negative practices
that zap away their natural motivation. The second step our
organization can take is to develop true motivators which can spark all
our employees into being motivated. By decreasing negative zapping
demotivators and by adding true motivators, we will tap into your
employees' natural motivation. Our employees' natural motivation
relies on the fact that all people have human desires for affiliation,
achievement, and for control and power over their work. In addition,
they have desires for ownership, competence, recognition, and
meaning in their work.
The following are examples of true motivators that will help our
employees tap into their natural ability to be motivated. Remember;
implement these true motivators without spending money. Instead of
focusing on money, focus on how you can make some changes within
your organization.
If your employees do routine work add some fun and variety to

their routine.
Provide employees with input and choice in how they do their

work.
Encourage responsibility and leadership opportunities within your

company.
Promote social interaction and teamwork between employees.
Tolerate learning errors by avoiding harsh criticism.
Promote job ownership.
Develop goals and challenges for all employees.
Provide lots of encouragement.
Make appreciation part of your repertoire.
Develop measurement that shows performance increase.
By eliminating demotivators and adding in no cost motivators you are

tapping into your employees' natural human desires to perform at their
maximum level of motivation and productivity. The following are the
human desires that we are tapping into.
Desire for activity
Desire for ownership
Desire for power
Desire for affiliation
Desire for competence
Desire for achievement
Desire for recognition
Desire for meaning
Evolution of motivational theories:In early 50s Abhram Maslow identified the fact that employees have a
basic human need and a right to strive for self-actualization and he
gave hierarchy of needs motivational theory and Frederick herzbergs
gave motivation and hygiene factors theory. These theories remain
valid today for understanding human motivation, management
training, and personal development. The concept of motivation has
been explained very clearly and they become the base for all
motivation programs in an organization.
Abraham Maslow's Hierarchy of Needs motivational model
Abraham Maslow developed the Hierarchy of Needs model in 1940-50's
USA, and the Hierarchy of Needs theory remains valid today for
understanding human motivation, management training, and personal
development. Indeed, Maslow's ideas surrounding the Hierarchy of

Needs concerning the responsibility of employers to provide a
workplace environment that encourages and enables employees to
fulfill their own unique potential (self-actualization) are today more
relevant than ever.
Each of us is motivated by needs. Our most basic needs are inborn,
having evolved over tens of thousands of years. Abraham Maslow's
Hierarchy of Needs helps to explain how these needs motivate us all.
Maslow's Hierarchy of Needs states that we must satisfy each need in
turn, starting with the first, which deals with the most obvious needs
for survival itself.
Only when the lower order needs of physical and emotional well-being
are satisfied are we concerned with the higher order needs of influence
and personal development.
Conversely, if the things that satisfy our lower order needs are swept
away, we are no longer concerned about the maintenance of our
higher order needs.
Maslow's original Hierarchy of Needs model was developed between
1943-1954, and first widely published in Motivation and Personality in
1954. At this time the Hierarchy of Needs model comprised five needs.
This original version remains for most people the definitive Hierarchy
of Needs
Maslows hierarchy of needs

1. Biological and Physiological needs - air, food, drink, shelter, warmth,
sex, sleep, etc.
2. Safety needs - protection from elements, security, order, law, limits,
stability, etc.
3. Belongingness and Love needs - work group, family, affection,
relationships, etc.
4. Esteem needs - self-esteem, achievement, mastery, independence,
status, dominance, prestige, managerial responsibility, etc.
5. Self-Actualization needs - realizing personal potential, self-fulfillment,
seeking personal growth and peak experiences.
Self-actualization
Personal growth and fulfillment
Esteem needs
Achievement, status, responsibility, reputation
Belongingness and Love needs

Family, affection, relationships, work group, etc
Safety needs
Protection, security, order, law, limits, stability, etc
Biological and Physiological needs
Basic life needs - air, food, drink, shelter, warmth, sex, sleep, etc.
Maslows Hierarchy of needs

(Original five stage model)
Frederick Herzberg's motivation and hygiene factors

Frederick Herzberg's book 'The Motivation to Work', written with
research colleagues B Mausner and B Snyder man in 1959, first
established his theories about motivation in the workplace. Herzberg's
work, originally on 200 Pittsburgh engineers and accountants, has
become one of the most replicated studies in the field of workplace
psychology.
Herzberg was the first to show that satisfaction and dissatisfaction at
work nearly always arose from different factors, and were not simply
opposing reactions to the same factors, as had always previously been
(and still now by the unenlightened) believed.
He showed that certain factors truly motivate ('motivators'), whereas
others tended to lead to dissatisfaction ('hygiene factors').
According to Herzberg, Man has two sets of needs; one as an animal to
avoid pain, and two as a human being to grow psychologically.
He illustrated this also through Biblical example: Adam after his

expulsion from Eden having the need for food, warmth, shelter, safety,
etc., - the 'hygiene' needs; and Abraham, capable and achieving great
things through self-development - the 'motivational' needs.
Herzberg's research proved that people will strive to achieve hygiene
needs because they are unhappy without them, but once satisfied the
effect soon wears off - satisfaction is temporary.
Examples of hygiene needs (or maintenance factors) in the workplace

are:
policy
relationship with supervisor
work conditions
salary
company car
status
security
relationship with subordinates
personal life
True motivators were found to be other completely different factors,

notably in Herzberg's research factors such as:
achievement
recognition
work itself
responsibility
advancement
personal growth
'Motivators'
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Employee relationship at SEMAPHORE IT SOLUTIONS
It is participative type of management at SEMAPHORE IT SOLUTIONS.

Subordinates are given a chance to confirm the policies, strategies,
objectives and goals of the organization which are communicated from
the top.
And the superior, identifies subordinates productive strength and
guide their potentiality into productivity, with this the organization is
able to make optimization of resources, as well as employees are also
happy about recognition for their talent which helps in developing
themselves.
The transparency level is well maintained at SEMAPHORE IT
SOLUTIONS. Any subordinate can directly interact with his superiors
with out any hurdle. Superiors if possible directly interact with
subordinates and solve the issues, if not they use emails or telephones
as communication tools.
For betterment of employees relationship, SEMAPHORE IT
SOLUTIONS offers various benefit policies and compensation packages,
which are very motivating and attractive. Employees are provided with
safe ambience and hygiene environment to work.
The relationship with subordinates is well managed at SEMAPHORE IT
SOLUTIONS, which we can make out from the past success of the
company in past 26 years. The numbers of clients have increased at

steady rate.
A very effective problem solving mechanism is followed at
SEMAPHORE IT SOLUTIONS, which always prevents line staff conflict,
conflict between departments etc., if in case any issue arises the HR
Manager personally takes care of it.
As an individual, employees have their own weaknesses,
strength, passion, pride, emotions etc.,. At SEMAPHORE IT SOLUTIONS
the employees are provided with lot of opportunities and freedom to
complete their task in their own style. As they know that employees
are not machines. A well-planned and balanced working hour has been
scheduled to take care of the employees and strong team of logistics
experts supports this.
Approachability is very transparent and clear. If still employees are
facing problems then they are solved by mutual understanding and
face-to-face talks between the problem employees in the presence of
HR Manager who later concludes the decision with an optimum
solution
The organization is trying their best to provide and promote

healthy and strong employee relationship by all means like
Good ambience
Hygiene condition
Positive work culture
Better benefit and compensation programs
Counseling employees
Training and development

To motivate and improve the morale of the employees.
BENEFITS AT SEMAPHORE IT SOLUTIONS.

Eligible employees at SEMAPHORE IT SOLUTIONS (USA) are provided a
wide range of benefits, which are
Medical Insurance
COBRA-consolidated omnibus budget reconciliation act
The law amends the employee retirement income security act (ERISA),
the internal revenue code and the public health services act to provide
continuation of group health coverage that other wise would be
terminated.
Cobra contains provisions giving certain former employees, retirees,
spouses and dependent children the right to temporary continuation of
health coverage at group rates. this coverage, however is only
available in specific instances. Group health coverage for cobra
participants is usually more expensive than health coverage for active
employees since usually the employer formerly paid a part of the
premium. It is ordinarily less expensive, though, than individual health

coverage.
As an employee of the company, the employee, his/her
spouse children are insured by the company under a Group Insurance
Policy as per the rules stipulated by the Insurance company, to cover
the cost of Hospitalization arising out of sickness to insured individuals.
The Medical benefits provided under the terms of the plan and
available to COBRA beneficiaries include:
1. Impatient and Outpatient Hospital care
2. Physician care
3. Surgery and other major medical benefits
4. Prescription drugs
5. Any other benefits, such as Dental and Vision care.
Life insurance by reliance standard

100% paid by the employer
Basic life insurance for @50,000.
AD & D Accidental Death & Dismemberment Additional

$50,000.
STD short term disability weekly benefit 60% of weekly

salary or maximum of $1500 which ever is lesser- maximum of
13 weeks 12 weeks for maternity and 1 week of vacation- after
7 days the benefit starts.
LTD-Long term disability- 90 days of disability- monthly benefit

-60% of annual salary or $10000 maximum which ever is lesser.
FMLA- family and medical leave act
At least one year
Up to maximum of 12 weeks
Employee doesnt get paid
Leave is approved and the employer cannot terminate the

employee.
FSA- Flexible spending account- conexis

Pretax benefit- Amount gets detected before an employees tax is
worked out.
Health Care Allowances HCA
Day Care Allowances
-DCA
401(k) - fidelity (no employer contribution)
Pre tax benefit
Retirement benefit
Vacation policy:
Vacation year starts from January to December.
Paid time off:
All fulltime employees are entitled to paid time off from their date of
hire.
Paid time off-hourly employees

The employee who is full time and paid hourly earns:0-5 years of services-198 hours/year
5+ years of services-243 hours/year
10+ years of services-288 hours/year
To receive any leave accrual, you must be an active employee on the
last calendar day of the pay period. If you have unused leave at the
time of termination, you will be paid for it.
You can take paid leave for the purpose of vacation, holiday, personal
leave, medical leave, childcare leave, family leave, bereavement or for
other similar reasons.
Absence from work must be approved by the supervisor and scheduled
in advance except as provided in the family and medical leave time.
If you have not used all the leave time you earned by December 15,
you can:
Elect to be paid for up to 80 hours of unused leave time.
Carry up to 90 hours of unused leave forward into the

following year subject to maximum accrual limits.
Choose a combination of payment/carry forward.
Any exception to carry forward more than 90 hours needs

approval from the regional director.
The maximum accrued leave an hourly employee may

have at any time is 240 hours. Leave will stop accruing
once the 240 hours maximum limit is reached.
For leave other than that taken for reasons cited above,
please refer to the subsection. Family and medical leave.
Paid time off salaried employees:

If your are a salaried employee, you will earn:
0-5 years of services-22days/year
5+ years of services-27 days/year
10+ years of services-32days/year
To receive any leave accrual, you must be an active employee on the
last calendar day of the pay period.
You can take paid leave for the purpose of vacation, holiday, personal
leave, medical leave, childcare leave, family leave, bereavement or for
other similar reasons.
Absence from work must be approved by the supervisor and scheduled

in advance except as provided in the family and medical leave time.
The maximum accrued leave a salaried employee may have at any

time is 30 days. Leave will stop accruing once the 30 days. Maximum
limit is reached.
If you have not used all the leave time you earned by December 15,
you can:
You can elect to be paid for maximum of 10 days.
Carry up to 30 days of unused leave forward into the following

year, subject to maximum accrual limits.
Choose a combination of payment/carry forward.
Any exception to carry forward more than 30 days needs

approval from the regional director.
If you have unused leave at the time of termination, you will be

paid for it
Consumption:
Salaried employees must take leave time in full or half day increments.
Leave time entered on a time sheet for less than 4 hours in a day will
be counted as half day. Leave time entered on a time sheet for more
than 4 hours in a day will be counted as 1 day.
Vacation will accrue at the end of each pay period and the current
vacation balance will be reflected in the employees pay stub. Vacation
time will not accrue for the period an employee is on unpaid leave.
Leave/holiday reporting:
Hourly employees- on any day you record leave time; the maximum
total number of reported hours (hours worked plus leave hours) is
twelve.
Salaried employees- to be paid for a day you do not work, report eight
hours of leave.
Compensation adjustment:
A compensation adjustment is made when you report time (work or
leave) for less than five days in a week. The adjustment is your day
rate multiplied by the number of days less five for which you did not
report any time (work or leave).
BENEFITS AT SEMAPHORE IT SOLUTIONS

India
Eligible employees at SEMAPHORE IT SOLUTIONS (India) are provided a
wide range of benefits, which are
Medical Insurance
As an employee of the company, the employee, his/her
spouse children are insured by the company under a Group Insurance
Policy as per the rules stipulated by the Insurance company, to cover
the cost of Hospitalization arising out of sickness to insured individuals.
The Medical benefits provided under the terms of the plan and
available to COBRA beneficiaries include:
Impatient and Outpatient Hospital care
Physician care
Surgery and other major medical benefits
Prescription drugs
Any other benefits, such as Dental and Vision care.
Leaves of Absence
LEAVE POLICY:
SEMAPHORE IT SOLUTIONS recognizes that employees have to
take a break from the regular office routine to attend personal work, for
reasons of sickness or for annual vacation.
LEAVE YEAR:
The leave year in SEMAPHORE IT SOLUTIONS is the Calendar year

i.e. January to December.
LEAVE TYPES:
Employees at SEMAPHORE IT SOLUTIONS are eligible for the

following categories of leave:
Privilege Leave
Casual Leave
Sick Leave
Maternity Leave
Paternity Leave
LEAVE APPROVAL
Employees at SEMAPHORE IT SOLUTIONS are eligible for all types of

leaves from the day they are confirmed. Leave will accrue to them at
the end of every pay period on a Pro-rata basis
Employees must apply for leave using a prescribed leave request form,
which are available with Administration Department.
Employees must apply for leave to the manager or the Administration
Department.
Manager will approve the employees leave after Considering the
workload, schedules, essentiality of leave and any other relevant
factors.
Leave can be taken only after the manager or the administration
department has approved the leave.
LEAVE WITHOUT PAY:
Leave without pay is discouraged except in special circumstances.
The salary (excluding any reimbursements) of an employee going

on Leave without Pay (LWOP), for that month will be reduced
proportionately for the days of Leave without Pay.
In case the employee is absent from work without prior approval or
when the application for leave has not been approved, such absence
will also be treated as LWOP.
Depending on the circumstances, such absence may attract
Disciplinary action.
Laptops and Mobile phones
SEMAPHORE IT SOLUTIONS will provide laptops and mobile phones to
employees as needed, based on project need and position.
Professional Development
In the spirit of encouraging learning and personal growth, SEMAPHORE
IT SOLUTIONS will pay for relevant Degree courses required to do the
job more efficiently, offered by reputed colleges, both evening courses
and full time courses.
Provident Fund
This is administered according to the Employees Provident

Act. The company will make base contributions to a provident fund as
per Employees Provident funds and Miscellaneous Provisions Act,
1952. The Employers and Employees contribution toward Provident
Fund will be paid as cash component until such time the company
registers itself under the Provident Fund Act. On registration, the
contribution towards Provident Fund will be deducted accordingly.
Individualized Allowances
Various allowances such as
1. House rent allowance
2. Vehicle allowance
3. Child Education Allowance
4. Medical allowance
Are offered to the employees of SEMAPHORE IT SOLUTIONS
based on position. All employees are eligible for Medical
reimbursements for ailments as per terms of Income Tax Act. Medical
allowances are paid along with monthly salary. However, bills
pertaining to other allowances must be submitted every quarter and to
the extend the Allowances are in excess of the bills submitted; they will
be added to taxable income and applicable tax deducted.
Referral Bonus
Employees working in SEMAPHORE IT SOLUTIONS who refer
and persuade known Friends and Family to join the company, resulting
in the referred person joining the company and staying for 6 months
will be eligible to receive a referral bonus of Rs.2500 for referring up to
Manager and Rs.7500 for senior managers and above. The referral
bonus will be paid only after the referred employee completes a
minimum period of 6 months with the company.
Brokerage costs for the relocation Employees only
Employees seeking rental accommodations at the time of joining will
be eligible for brokerage fees up to 1 months rent.
Travel
SEMAPHORE IT SOLUTIONS will reimburse all pre-approved and predefined expenses for travel related to companys work. It will defray
visa costs as necessary, stay costs, food and living and all other costs
arising out of the need to travel on company business. It will also
provide travel Insurance to cover treatment of illness and accidents
abroad.
Relocation
SEMAPHORE IT SOLUTIONS will reimburse for reasonable relocation
expense. Reimbursement will be made at the time of joining after the
employee produces official receipts for the expense. Such

reimbursement is conditional to employees being employed at
SEMAPHORE IT SOLUTIONS one year after joining, therefore the full and
final settlement at the time of the employees end of the employment
with SEMAPHORE IT SOLUTIONS will include a reckoning of re-location
costs.
Transportation Services
SEMAPHORE IT SOLUTIONS will arrange for pickup of employees along
prearranged routes and pickup points based on employees distribution
across the city or will pay conveyance Allowance as per the norms of
the company.
Gratuity
Employees at SEMAPHORE IT SOLUTIONS are eligible for a gratuity
benefit. The benefit will pay 15 days salary for every completed year of
service after completing 5 years of service.
SEMAPHORE IT SOLUTIONS is committed to provide a work
environment that is in line with its core values. To accomplish this, it is
imperative that every employee understand and comply with the
professional code of conduct.
Some of them are
Focus on the work
Respect towards colleagues
Responsibility towards company property
CHAPTER- 6
DATA ANALYSIS
&
INTERPRETATION
Analysis & Interpretation

Are
you
optimistic
about
your
future
success
with
the
company?
Employees response
Particular
Strongly
s
No of
agree
13
employe
es
Agree
Neutral
Disagree
Strongly
Total
disagree
0
20
Inference:
From the above graph we can infer that 65% of the employees
currently working with the SEMAPHORE IT SOLUTIONS strongly agree
about their future with the company and 20% agree the same and 5%
are not in a position to comment about it and 10% disagree about their
future with there company. 10% is negligible when compared with 85%
of people which exhibit their successful future with the company.
Do you feel that the company care about its people?
Employees response
Particular
Strongly
s
No of
agree
13
employe
Agree
Neutral
Disagree
Strongly
Total
disagree
0
20
es
Inference:
From the above graph, we can say that 65% of the employees strongly
agree that the company cares about them and 20% agree with the
same where as 15% are not in a position to comment on it. This shows
the strong relationship between the employees and management.
How
much
are
the
employees
involved
in
companys
development?
Employees response
Particulars
Completely
Partially
Not at all
Total
No of
involved
13
involved
4
involved
3
20
employees
Inference:
The above graph depicts that 65% of the employees feel that they are
completely involved in the companys development, whereas 20% of
them feel that they are partially involved and 15% are not involved. I.e.
a good indication for the organization.
How satisfied are you with the following?
Employees response
Particulars
Strongly
Agree
compensatio
agree
75%(15)
20%(4)
n
Benefits
Work culture
work
responsibility
Level
of
80%(16)
80%(16)
60%(12)
70%(14)
90%(18)
transparency
Freedom
to 55%(11)
Neutral
Disagree
Strongly
5%(1)
disagree
0
10%(2)
20%(4)
40%(8)
25%(5)
10%(2)
0
0
0
5(1)
0
10%(2)
0
0
0
0
0
0
0
0
0
25%(5)
15%(3)
5%(1)
experiment
Inference
The above graph displays that almost 75% of the employees strongly
agreeing with their compensation, benefits, work culture, work,
responsibility, level of transparency which indicates the presence of
better benefit and compensation package where as only 55% of them
strongly agree with freedom to experiment and 25% agree with it.
The professionalism of the people with you works.
Employees response
Particulars
Strongly
Employees
agree
15
Agree
Neutral
Disagree Strongly
disagree
0
Tota
l
20
response
Inference:
Through above graphical representation, we can infer that 75% of
the
employees
strongly
agree
about
the
presence
of
professionalism in the people around them whereas 10% of them
just agree and 15% of the employees feel the absence of

professionalism with whom they work with.
Have you ever faced any problem while working?
Employees response
Particulars
Employees
Yes
8
No
12
Total
20
response
Inference:
The above diagrammatic data represents that 60% of the employees

has not faced any problem while working, whereas 40% of the people
have faced some minor problems while working. next graph shows that
87% of the employees who have faced problem are highly satisfied
with the problem solving mechanism.
Are you satisfied the way it was handled?
Employees response
Particulars
Employees
response
Inference:
Yes
No
No
Total
response
0
The above graph depicts that 87% of the employees are satisfied with
the way the problem was tackled and 13% of them were not satisfied.
This proves that the working environments is problem free and have a
very effective mechanism to solve the problem
Have
you
received
appropriate
recognition
for
your
contribution?
Employees response
Particulars
Strongly
Employees
agree
17
response
Agree
Neutral
Disagree Strongly
disagree
0
Tota
l
20
Inference:
The above analysis reveals that 85% of the surveyed employees

strongly agree that they have received appropriate recognition for their
contribution in the organization whereas 15% of them just agree about
it and none of them opposes the recognition policies, this show that
SEMAPHORE IT SOLUTIONS have good rewards and recognition policy.
Does the organization provide long-term job security?
Employees response
Particulars
Employees
Yes
12
No
No
Total
response
5
20
response
Inference:
From the above chart we can comment that 60% of the employees
have faith that they will be provided long-term security, 15% doesnt
support it and 25% of them did not responded about it. The company
should try to win the faith of not satisfied (15%) employees.
Are you satisfied with the relationship with the superiors?

Employees response
Particulars
Employees
Yes
15
No
5
Total
20
response
Inference:
The above chart indicates that 75% of the total employees are satisfied
with their relationship with the superior thats a good sign for
SEMAPHORE IT SOLUTIONS because this clearly shows how effectively
they are maintaining relationship with employees whereas 25% of
them reject it. The company should try to work out this difference to
make it best in the industry.
What
is
the
transparency
level
between
superiors
and
subordinates?
Employees response
particulars
Employees
Good
14
Moderate
5
Bad
1
Total
20
response
Inference:
From the above-analyzed data we can say that, there is a good
transparency level, as 70% of the total have opted good transparency
between superiors and subordinates and there exists 25% of moderate
and 5% of the bad transparency level between them.
Are you satisfied by the group insurance?
Employees response
Particulars
Employees
Yes
14
No
No
Total
response
1
20
response
Inference:
The above diagram indicates that, 70% of the employees are satisfied
with the group insurance, 25% of the oppose it and 5% of them have
not responded to it. On an average 70% are very satisfied with the
group insurance but 25% is not satisfied which is not an negligible
percentage the company should interact with them and try to find out
the reason for it.
Are
medical
allowances
provided
substantial
for
your
requirements?
Employees response
Particulars
Employees
Yes
14
No
No
Total
response
0
20
response
Inference:
From
the
above
information
it has been
found
that
70% of the employees says that the medical allowances provided to

them are substantial whereas 30% of them feel its not adequate to
meet their medical requirements, this might be due to their large

family size or frequent health problems.
Are you satisfied the way incentives are awarded?
Employees response
Particulars
Employees
response
Inference:
Yes
14
No
No
Total
response
1
20
The above data infers that 70% of the employees are content with the
way incentives are provided to them thats a healthy sign for any
organization and 25% of them are not content this might be due to lot
of expectation whereas 5% of them did not respond to the question.
If provided with Better opportunities will you.
Employees response
Particulars
Give
second Straight
thought.
Employees
response
away Total
leave the job

16
20
Inference
The above graph reveals the type of work culture and Employee
satisfaction SEMAPHORE IT SOLUTIONS is offering to its employees
80% of the employees are going to give a second thought before
leaving the job where as 20% of them will straight away leave the job.
80% of the totals surveyed are content with this job thats a good
sign for SEMAPHORE IT SOLUTIONS as compared to industry, which is
facing high turn over.
Are you satisfied with the vacation policy?
Employees response
Particulars
Strongly
Employees
agree
5
response
Agree
12
Neutral
Disagree Strongly
disagree
0
Tota
l
20
Inference:
The above graphical representation conveys that 60% of the
employees are satisfied with their vacation policy, 10% of them
disagree, 5% are neutral and 25% of them strongly disagree regarding
the vacation policy provided to them.
25% of the employees are not satisfied with the vacation policy
followed at SEMAPHORE IT SOLUTIONS ltd the reason for this might be
the company follows USA standards.
CHAPTER- 7
FINDINGS & SUGGESTIONS
Findings and suggestions
Findings
Findings of this research are based on the survey conducted using the
questionnaire and other data related employee relationship available
on net and journals supplied by the company.
Employees at SEMAPHORE IT SOLUTIONS India are very
optimistic about their future with the company. This is a good
sign for limited turnover expectations by the company.
Employees feel that organization cares for their employee which
reflects the bond between the company and employee.
In Organization employee feels that they are allowed to

participate in decision making this reflects professionalism of the
company.
Employees are given a chance to deal with problem situation;
they are allowed to approach their seniors for any problem
situation. Most of the employees (90%) are satisfied with
problem solving mechanism available in the company.
On an average almost all the employees are satisfied the way
rewards and recognition is awarded to them. That shows the
company is offering awesome benefit package to the employees.
Only 60% of the employees are of the view that they are having
long term job security it is a good percentage but still 25% are in
different. So company should try to win the faith of them.
A good and effective relationship among the employees and
superiors is the sing of trust and understanding which
SEMAPHORE IT SOLUTIONS is witnessing as 75% of them are
satisfied with the relationship with superiors.
On an average 70% of the employees are satisfied with
incentives and medical allowances at SEMAPHORE IT SOLUTIONS
80% of the employees say that they will give a second thought
before leaving this job which shows that they are content with it
and this is a healthy sign in todays market where companies are
facing high turnover.
Above all the at SEMAPHORE IT SOLUTIONS the transparency

level is well maintained as only 5% feel that its bad that indicates
the culture and climates of the firm.
Suggestions
After comparing the benefits programs offered at SEMAPHORE IT

SOLUTIONS with industry standards the following suggestions were
made by the researcher on the knowledge he holds on the subject. The
following suggestion are given only to improve the benefit program
which does not mean that the existing program is not good or
employees are not satisfied with it.
Beefing Up companys Benefits Package
Today's workers expect their employers to offer more than basic health
insurance. They want comprehensive benefits packages that help them
lead healthy and productive lives.
Benefits can range from pet insurance to onsite child care, so how do
you decide which ones to provide to your employees? The common
suggestions made are as follows
Make sure the benefit is important to a large number of your

employees.
Choose benefits that work well with your corporate culture.
Decide if your benefits package will offer a good return on your

investment.
Let your benefits package evolve with your company and

employees.
Perform a cost analysis of each benefit to determine how it will

affect your bottom line.
New Benefits Ideas

Call companys health-care provider and ask how you can supplement
existing benefits. Company may be able to offer its employees new
benefits and perks without spending a lot of cash. Some traditional
providers offer such benefits as prenatal care, smoking cessation and
weight loss programs, gym subsidies, onsite flu shots, CPR training and
retiree health-care benefits. Then try adding a few new perks that your
employees will appreciate and enjoy.
Offer assistance to new recruits
In addition to offering a relocation package, consider providing services
that will help spouses of its new employees find jobs. Family transition
packages help family members find jobs, schools, activities, and

churches or synagogues.
Give perks to business travelers
Encourage employees to use their company-earned frequent-flier
miles to bring their spouses and children on business trips. And offer to
pay for their long-distance calls and dry cleaning while they're on the
road.
Incorporate "lifestyle" benefits
Add benefits that help employees simplify their personal lives.
Consider offering dry cleaning services, legal assistance, onsite cash
machines and health insurance for pets.
Offer domestic-partner benefits
Many businesses include packages that accommodate an employee's
significant other, regardless of their marital status.
Create a time bank
Build a sense of loyalty among coworkers with a time bank. Encourage
its employees to donate sick, vacation or personal days to others in the
company.
Match employees' charitable contributions.
Donate money to its employees' favorite charities, and offer employees

paid time off when they volunteer for a charity.
Utilize the Web
There are a number of Web sites that help you supplement your
benefits package. Sites like BenefitsLink.com can help employers
create perk programs for their employees.
Explore options for child care
Company child-care centers help cut down on absenteeism. If
company is too small to provide onsite care, consider offering referral
services and subsidies.
CHAPTER- 8
CONCLUSION
&
BIBLIOGRAPHY
Bibliography
Referred Books
Ashwatapa
Rose Mary joshi and shashi k gupta
Management
:-Human Resource Management

:- Human Resource
Mamoria
:-Personal Relations
Websites
www.employer-employee.com
www.businessballs.com
www.allbusiness.com
www.aednet.org
www.opm.gov
ANNEXURE
Questionnaire
This survey is regarding a study on Employee Relationship and
Benefit Administration at SEMAPHORE IT SOLUTIONS. Kindly
spend your valuable time in going through and filling the
questioner.
1.
Are you optimistic about your future success with the

company?
A) Strongly agree B) Agree C) Neutral D) Disagree E) Strongly
disagree
2. Do you feel that the company care about its people?
disagree
3. How much are the
development?
A) Completely involved
involved
4.
employees
involved
B) partially involved
in
companys
C) not at all
How satisfied are you with the following?

Strongly
agree
agree
neutral
disagree Strongly
disagree
compensati
on
Benefits
Work
culture
work
responsibilit
y
Level
of
transparenc
y
Freedom to
experiment
5. The professionalism of the people with you works.
disagree
6. Have you ever faced any problem while working and are you
satisfied the way it was handled?
A) Yes
B) No
A) Yes B) No
7. Have you received
contribution?
appropriate
recognition
for
your
A) Strongly agree B) Agree c) Neutral D) Disagree E) Strongly

disagree
8. What factors would ensure your stay in the organization?
9. List any three factors that motivate you to perform well.

A)
B)
C)
10. Does the organization provide long-term job security?
A) Yes
B) No
11. Are you satisfied with the relationship with the superiors?
A) Yes
B) No
12. What is the transparency level between superiors and
subordinates?
A) Good
B) moderate
C) Bad
13. Are you satisfied by the group insurance?
A) Yes
B) No
14. Are medical allowances provided substantial for your
requirements?
A) Yes
B) No
15. Are you satisfied the way incentives are awarded?
A) Yes
B) No
16. If provided with Better opportunities will you.
A) Give second thought.
B) Straight away leave the job.
17. Are you satisfied with the vacation policy?
disagree
18. Would you like to make any suggestion to improve the

employee participation and relationship at SEMAPHORE IT
SOLUTIONS?

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Index

INDUSTRY PROFILE, COMPANY PROFILE

THEORETICAL FRAME WORK

DATA ANALYSIS & INTERPRETATION

FINDINGS & SUGGESTIONS

CONCLUSION & BIBLIOGRAPHY

considered as important and effective resource. Human resource

it reduces employee turnover in the organization and attracts

developmental needs of employees.

major part of organizational cost. Benefits and services also referred to

Objective of the study:-

The purpose of doing this project is mainly to make thorough study on

Scope for personnel department

Data collected was based on questionnaire and interview method

sample size is limited to 50 only.

that management would take action against them.

Research methodology is a way to systematically solve the research

Research design provides smooth operations yielding maximal

Research design has a plan in advance of data collection analysis for

A research design is the logical and systematic planning and directing

A research design is the arrangement of conditions for collection and

The study is designed as descriptive one based on survey method.The

Pre testing of questionnaire

Primary data: - the primary data is that information which is collected

data can be collected through method of survey, observations and

Here the data has been collected through questionnaire.

A sample is a segment of the population selected to represent the

The sample size is 20 in respect of staff, supervisors and managers

Indian Software Industry 122417552670390057008750

Rapidly Improving infrastructure

Infrastructure High Quality Educat ional

Low Operaing Costs

Established Technology Clusters

1999- 2000 - 5700 million US Dollars

Worldwide IT Spending Forecast (Billions of U.S. Dollars)

Spending Growth (%) Spending Growth (%)

The services which make extensive use of information

Multimedia project from start to end including theme development, 3D introduction,

Services Description Language), and UDDI (Universal Description, Discovery, and

The main strong points of J2ee technology include:

User Interface Testing

Know types of Testing

SEMAPHORE Consulting focuses in empowering IT departments, be it an ERP services

SEMAPHORE Team provides the consultants (for Contract or Permanent

Data warehousing and analysis

Database design, administration, and maintenance

business and Web applications

Network design, implementation, administration, and support

Operating systems support

Software installation and implementation

Software quality assurance and testing

Systems integration and conversions

Technical writing and documentation

Introduction to Employee relationship in

Employees play a significant role in an organization. Among all the four

considered as important and effective resource. Human resource

It also helps in reducing the conflicts among the employees and

developmental needs of employees.

Objective of Employee Relationship:

Good employee relationship is expected to aid the human

It is to help establish a cordial relationship between the

It should enable the manager to have an integrated approach to

It is supposed to establish a mutual regard and recognition