A

Project Report on
COMPENSATION MANAGEMENT PRACTICES
AND POLICIES
OF STATE BANK OF INDIA
A project report submitted to P.G. Department of commerce, S.C.S
(A) College, Puri in partial fulfilment for the awards of Master
Degree in Commerce 2018-19

Submitted By
Laxmi Narayan Panda
College roll no- 517C-011
Exam roll no- 03PG17-020

Under the guidance of

Prof. Mahendra Kumar Mishra
(HOD PG Department of commerce)

POSTGRADUATE DEPARTMENT OF COMMERCE

SAMANTA CHANDRA SEKHAR (AUTONOMOUS) COLLEGE,
PURI
2018-2019
 CERTIFICATE OF THE GUIDE

This is certified that project work entitled “COMPENSATION

MANAGEMENTPOLICIES AND PRACTICES OF STATE BANK
OF INDIA” is a bonafide work carried out in the 2nd year of 3 rd
semester by “Laxmi Narayan Panda”, “exam roll no- 03PG17-020”
under my guidance in year 2018-19, is an original place of work to the
best of my knowledge and no other candidate has submitted the same
report elsewhere for the award of any degree.

SIGNATURE
Prof. Mahendra Kumar Mishra
HOD of P.G. Department of COMMERCE
 DECLARATION

I do hereby declare that the PROJECT REPORT on

“COMPENSATION MANAGEMENT POLICIES AND
PRACTICES OF STATE BANK OF INDIA” submitted by me to the
P.G. Department of commerce, SCS AUTONOMOUS COLLEGE,
PURI in partial fulfilment of the requirement for Master Degree in
commerce is my own work neither I have copied or translated it from
others and it has not been submitted to any other institution or published
at any time before.

LAXMI NARAYAN PANDA

ROLL NO- 517C-011
EXAM ROLL NO- 03PG17-020
 ACKNOWLADGEMENT

My project report would not have been possible without the co-
operation and valuable guidance given by my guide “Prof. Mahendra
Kumar Mishra” HOD of P.G, Dept. of Commerce, SCS
AUTONOMOUS COLLEGE of Puri.

I take this opportunity to convey my gratitude and obligation to him.

While preparing the seminar report, I have tried my best to be precise
and objective. Up to-date data and recent findings of eminent scholars
have been included by drawing attention on recent issue from journals
and periodicals.

I express my gratitude to the authorities concerned in this respect. I

acknowledge thanks to my parents for their valuable suggestion an
support in preparing the seminar report without whose co-operation and
blessings this would not have been possible.

LAXMI NARAYAN PANDA

ROLL NO- 517C-011
EXAM ROLL NO- 03PG17-020
 TABLE OF CONTENTS

SL. NO CHAPTER PAGE

1 INTRODUCTION
 Introduction
 Objective of the study 6-8
 Scope of the study
 Research methodology
 Limitations of the study
2 REVIEW LITRETURE 9-13
3 COMPANY PROFILE
 Introduction on bank
 Objectives of the bank 14-22
 Vision of the bank
 Compensation management policies
and practices of bank
4 ANALYSIS AND INTREPRITATION 23-37
5 FINDINGS AND CONCLUSION
 Findings 38-39
 Suggestion
 Conclusion

BIBILOGRAPHY 40
 CHAPTERT-1

INTRODUCTION
The State Bank of India (SBI) is an Indian
multinational, public sector banking and financial services company. It
is a government owned corporation headquartered in Mumbai,
Maharashtra. The bank is ranked 216th on the “Fortune Global 500 list”
of the world’s biggest corporation as of 2017. It is the largest bank in
India with a 23% market share in the assets, besides a share of one-
forth of the total loan and deposit market. The bank descends from
Bank of Calcutta, founded in 1806, via the Imperial Bank of India,
making it the oldest commercial bank in the Indian subcontinent. The
Bank of Madras merged into the other two “presidency banks” in
British India, the Bank of Calcutta and the Bank of Bombay, to form
the Imperial Bank of India, which in turn became the State Bank of
India in 1955. The government of India took control of the Imperial
bank of India in 1955, with Reserve Bank of India taking a 60% of
stake, renaming in the State Bank of India. In 2008, the government
took over the stake held by the Reserve Bank of India. SBI has 16
regional hubs and 57 zonal offices that are located at important cities
throughout India.

6
Objective of the Study:-

 To get an overall idea about the compensation

management of State Bank of India.
 To identify the Compensation Management policies of
State Bank of India.
 To know about the compensation management practices of
State Bank of India.
 To find the employees of State Bank of India are satisfied
or not with the compensations received by them.

Scope of the study:

The study will focus on the compensation management of State

Bank of India; how they perform and maintain compensation
management. Also It will be discussed the current compensation
practices and policies of State Bank of India. I am lucky that I had a
great opportunity to have an in depth knowledge of compensation
management practiced by the State Bank of India Ltd.

Research Methodology:

I have used only the secondary method for collecting data. The
data has been collected from secondary sources only. That is from
various websites, magazines, newspapers, journals etc.

7
Limitations of the study:

Research was based on information from factsheets and

websites. The study was carried out with extreme enthusing and
careful planning. There are several limitation every study or research
is conducted under some limit and there are some restriction which
have some impact on the project. The time period for the study was
very short. Cost factor is also an essential factor that affect my
research.

8
 Chapter-2
Review Literature

1. Dessler, (2012), published in the article “A study on

compensation management”, found in his study that
compensation is the most important part for an employee as
well as the organization because it is one most important tool
that motivates the employees to perform for the company.
Actually compensation refers to a particular remuneration that
employees are paid based on the job they have done. In fact
what the employees are paid due to their employment and job
done is called compensation. Compensation refers other forms
of remuneration as well that could be either monetary or
nonmonetary. Compensation refers to all forms of pay going
to employees and arising from their employment.

2. Guirgis, (2007), published in the article “Impact of

compensation on employee performance”, in his study
moreover he said that compensation is sort of rewards that can
be fundamental as well as more than the basic that employee
receives in terms of their service to the company or
organization where all sort of incentives may be monetary or
nonmonetary are offered as a reward to the employees.
Compensation represents both the intrinsic and extrinsic
rewards employees receive for performing their jobs.

9
3. Nate Holdren, (2014), published in the book “Employment
risk under workmen’s compensation”, this article takes the
crisis of employment discrimination in the aftermath of the
creation of workmen’s compensation legislation as a point of
entry for arguing that compensation law created new incentive
for employment discrimination.

4. Sunil Dutta, (2014), writes on “Review of accounting

studies”, found that the optimal pay-performance sensitivity
may increase and expected marginal compensation may
decrease as the manager’s cost of earning management
decreases.

5. Jaideep Chowdhary, (2014), “Economic bulletin”, suggests

that a financially constrained firm offers higher incentive
compensation to its employees if the degree of product
differentiation is sufficiently low.

6. Tapomoy Deb, (2009), “Compensation Management”, the

entire text book has been divided into 5 theme – based parts
which has been further divided into 10 logical, enriching and
descriptive chapters. Each part address one broad theme and
highlights a particular aspect of compensation management.

10
7. Joseph J. Martocchio, (2011), “Strategic Compensation”,
this book is to provide knowledge of the art and science of
compensation practice and its role in promoting companies’
competitive advantages.

8. Bijan Abedini, (2013), “Journal of Educational and

Managerial Studies”, the objective of this journal is to study
the relationship between employees compensation and
earnings in companies. He found that there is a direct
relationship between employees compensation and earnings.

9. Amit Hole, (2013), “Impact of Compensation Strategies on

Performance of Employees”, in this newspaper he written that
excusive compensation is determined by the requirement of
earning management. Specifically, our litters indicate that total
compensation is negatively related to the absolute value of
accruals.
10. C.X. Williamson, (2009) “Study the impact of
compensation management”, in this book he wrote that the
impact of individual based and group-based compensation on
performance. The results show that, in the design of
compensation system, compared with individual effort,
enterprise are supposed to attach importance to the degree of
team effort, so as to promote the innovation of the team and
improvement of the performance of enterprise.
11
11. Y.J. Shen, (2004), “Aspect of the relationship between
employees and executives”, in this article he found that the
compensation of employees and executives are both positively
associated with the performance of enterprises, which
indicates the 2 kind of compensation initiative has a positive
effect on the growth of performance.

12. W. J. Williamson, (2003), “Management of compensation

of the employees and executives”, he examined the different
initiative of pay gap on executives and employees. He said that
if the pay gap results from managerial power to certain extent,
it does not have an encouraging effort on executives.

13. Talkof I. D., (2013), “RPI on different compensation

system”, in this book he wrote that the result indicate that the
both public and private RPI has a positive effect on
performance, no matter whether the compensation system is
flat wage performance based or individual performance based.

14. Van Rinsum, (2014), “Compensation management

designing”, in this book he found that when a manager’s
performance has a positive influence on monetary payoff of
his peers, the manager is more likely to overstate his
performance.

12
15. C. S. Armstrong, (2009), “Strategic Compensation”, in
this book he said moreover that compensation is sort of
rewards that can be fundamental as well as more than the
basic that employee receives in terms of their service to the
company.

13
 CHAPTER-3
COMPANY PROFILE

The State Bank of India (SBI) is an Indian multinational, public

sector banking and financial services company. It is a government
owned corporation headquartered in Mumbai, Maharashtra. The bank
is ranked 216th on the “Fortune Global 500 list” of the world’s biggest
corporation as of 2017. It is the largest bank in India with a 23% market
share in the assets, besides a share of one-forth of the total loan and
deposit market.
The bank descends from Bank of Calcutta, founded in 1806, via
the Imperial Bank of India, making it the oldest commercial bank in the
Indian subcontinent. The Bank of Madras merged into the other two
“presidency banks” in British India, the Bank of Calcutta and the Bank
of Bombay, to form the Imperial Bank of India, which in turn became
the State Bank of India in 1955. The government of India took control
of the Imperial bank of India in 1955, with Reserve Bank of India
taking a 60% of stake, renaming in the State Bank of India. In 2008,
the government took over the stake held by the Reserve Bank of India.
SBI has 16 regional hubs and 57 zonal offices that are located at
important cities throughout India. It has 18354 branches in India. In the
financial year 2013-14 the revenue was Rs.2.005 trillion, out of which
domestic operations contributed to 95.35% of revenue. Similarly
domestic operations contributed to 88.37% of total profits for the same
financial year. As of 2014-15, the bank had 191 overseas office spread
over 36 countries having the largest presence in the foreign markets
among Indian banks. SBI operates several foreign subsidiaries and
affiliates.

14
Objective:

The objective of “State Bank of India” is to act in accordance with

the board economic policies of the government, to encourage and
mobilise savings by opening branches in rural and semi-urban areas
and to promote rural credit, to establish government partnership in the
provision of cooperative credit, to extend financial help for the
establishment of licensed warehouse and cooperative marketing
societies and to provide financial help to the small scale and cottage
industries, to provide remittance facilities to the banking institutions.

Mission:

The Mission of “State Bank of India” is to be one of the most

admired banks in the nation and be recognized as an innovative and
client-focused bank, enabled by cutting-edge technology a dynamic
workforce and a broad array of financial products and services.

Vision:

The ultimate vision of “State Bank of India” is to be the first

leading organisation in India in the banking industry. SBI wants to see
itself as the one and only leading performers and world class service
providers in the banking industry.

15
Function:

It acts as the government’s bank, i.e., it collects money and makes

payment on behalf of the government and manages public debt. It also
invests in surplus funds in government securities, railway securities and
securities of corporations and treasury bills. It buy and sells gold and
silver. It acts as agent of cooperative banks. It draws bill of exchange
and grants letter of credit payable out of India.

Compensation Management Practices and Policies:

Compensation is the most important part in any organization as it
is one of the key factors of motivation for all employees now-a-days.
Therefore different organization undertakes attractive compensation
policy to uphold the potential employees to increase the productivity.
Generally, we can see two types of compensation system. One is
financial and another one is nonfinancial. State Bank of India has been
also offering lucrative compensation to their employees for years for
which their demand is up scaling day by day. One of the finest thing
that I observe that SBI has always tried their utmost to keep their best
person else by ensuring the best pay scale comparing with the
competitors. Therefore it is seen that the turnout ratio of employees of
SBI is so low. SBI goal of compensation is to focus on the certain
activity or works done by the employees upon which the compensation
is maintain or scaled such as it has maintain a combination of cash,
benefits, retirement, perquisites as a total compensation package.

16
Salary:

To compare with all the other banks SBI pays relatively so high
to their lower level employees. It is done due to grab the potential
employees from the market. Actually there are few companies in the
market to pay such a high basics to their employees for which SBI is
still is the first choice of new comers. This is the area in which SBI has
done marvellous job because now-a-days employees are more concern
of their basics. SBI has successfully adapted this change. It has been
seen that employees of SBI are highly satisfied due to the convenient
salary structure as other company in the market are not paying like this.
Moreover, SBI used to review its salary once in a year.

For an instance every December, the salary of the employee

review based on the performance which is key motivating factor to
perform well. Another thing that is to mention that SBI conducts
performance evaluation twice in a year according to that they are to
review the salary.

Bonus:
Like the other banks, SBI provides various festival bonuses to
their employee’s, such as, in Diwali, in Holly, in Eid-ul-Fital, in
Christmass etc. The bonus is equivalent to the basics of the employees.
Moreover, there is another provision regarding the bonus which is
based on the performance of the employee. But it actually depends in
the performance of the branch which means if a branch does well as a
whole then all the employees of that branch get bonuses of their
performance.
17
Performance Bonus:

If the bank makes profit, the employees will be entitled to 3% of

pre-tax profit as performance bonus. Fifty percent of such bonus
distributed on the basis of basic pay of an employee, and balance fifty
percent on the basis of performance of individual employees.

Provident Fund & Gratuity:

The employees are also entitled with provident fund in SBI.

Actually 10% of the basic are deducted from each employee for the
provident fund along with this another 10% provided by the company
total 20% is installed as the payment of provident fund. This fund is
given to their employees at the end of their service. If any employees
leave the organization before completing three years of employment he
will get the provident fund induce from the 10% of the basic that will
calculated upon his service period which means those employees will
not be able to claim the other 10% provided by the company.

In addition SBI also provide gratuity to their which has a

handsome amount apart from the basics. The employees who complete
10 years are used to get a gratuity equivalent to the basic of 3 months.

18
Annual Increment:

There is a provision of annual increment of SBI which is 10%

increment based on the performance. It works as a motivating factor
for the employees to perform well. Therefore each employee tries their
best to make it happen so that their base salary having well shaped
structure.

Travel Allowance:

The bank also provides travel allowance to their employees. If

any employee travels any place in India or out of the country regarding
company’s prospect, they will get the money or remuneration that is
cost by them but the cost that is spent is verified by the HR personnel
and after that they got the requisition of the money.

House Rent Allowance:

The company also provides house rent to their permanent

employees who are in the managerial level. Each employee in the
managerial level gets 55% of their basic as house rent. This encourages
the potential candidates in the market to work for SBI.

19
Employee Loan:

Unlike other banks, State Bank of India provides a great scheme

of loans to their employees. First of all, the permanent employees get
loans from their provident fund at a cost of 10%. They can use their
money for several purposes. Secondly, from the executive level the
employees are qualified for home loans, car loans and others at a cost
of 8% where it is around 15% for the customers so it an extra benefits
consumed by the employees.

Medical Facilities:

The medical facility provided by SBI is quite different from other

banks. SBI has their own medical team to look after their employees in
case of any medical assistance. They have their nursing home as well.
Therefore employees of SBI do not have the opportunity to enjoy life
insurance which means SBI does not provides life insurance policies to
the employees.

Earn Leave:

The employees who complete one year of service without any

unusual leave, get 30 days for earn leave in a year. It means their paid
equivalent 30 days of compensation.

20
Disability Leave:

If any employee faces unusual accident or physical challenge,

then they are provided leave granted by the company which is called
disability leave but for this leave the salary of them will not be deduced
which means these are paid leave.

Maternity Leave:

Maternity leave may be granted by the competent authority to an

employee for a maximum three months period at a time. This flexibility
is provided considering the labour law made by the government. This
is also a paid leave.

Study leave:

There is a fantastic opportunity for the employee of SBI. The

employees who perform extensively well and show gratitude of
benefits that they can contribute for the sake of company are entitled
for recommendation to study. Generally, the employees are
recommended to get 3 (three) years paid leave for their studies but all
the employees do not get this advantage because it is for those who are
really high performer are to authorized to get the full payment to
continue their studies.

21
Insurance:-
Insurance is a means of protection from financial loss. It is
a form of risk management, primarily used to hedge against the risk of
a contingent and uncertain loss. An entity which provides insurance is
known as insurer, insurance company, insurance carrier or underwriter.
A person or entity who buys insurance is known as an insured or as a
policy holder.

22
 CHAPTER-4
ANALYSIS AND INTERPRETATION

Salary:
To compare with all other banks SBI pays relatively so high to
their lower level employees. It is done due to grab the potential
employees from the market. Actually there are few companies in the
market to pay such a high basics to their employees for which SBI is
still is the first choice of new comers. This is the area in which SBI has
done marvellous job because now-a-days employees are more concern
of their basics. SBI has successfully adapted this change. It has been
seen that employees of SBI are highly satisfied due to the convenient
salary structure as other company in the market are not paying like this.
Moreover, SBI used to review its salary once in a year. For an instance
every December, the salary of the employee review based on the
performance which is key motivating factor to perform well. Another
thing that is to mention that SBI conducts performance evaluation twice
in a year according to that they are to review the salary.
Designation Amount of salary
Assistant Officer (AO) 34000
Junior Officer (JO) 40000
Officer 48000
Senior Officer 54000
Junior Assistant Vice president 60000
(JAVP)
First Assistant Vice President 66000
(FAVP)
Assistant Vice President (AVP) 74000

23
 The above table shows the amount of salary paid to the Assistant
Officer (AO), Junior Officer (JO), Officer, Senior Officer, Junior
Assistant Vice president (JAVP), First Assistant Vice President
(FAVP), Assistant Vice President (AVP) per month.

1. Are you satisfied with your current salaries?

The following table is based on the information collected
from 15 respondents of my above question.
Particular Responds Percentage
Satisfied 3 20%
Strongly satisfied 10 66%
Neutral 2 13%
Dissatisfied 0 0%
Strongly 0 0%
dissatisfied
Total 15 100%

Explanation:
From the above figure, we can observe that 66% employees
are strongly satisfied with the current salary and 20% are satisfied
where 13% employees are neutral and 0% are dissatisfied or
strongly dissatisfied.

Observation:
Most of the employees are strongly satisfied with current
salary and no one is dissatisfied with their current salary.

24
 2. Are you happy with your basic pay?
The following table is based on the information collected
from 15 respondents of my above question.

Particular Responds Percentage

Yes 14 93%
No 0 0%
Neutral 1 7%
Total 15 100%
Explanation:
From the above figure, we can observe that 93% employees are
happy with their basic pay where as 7% are neutral and 0% are not
satisfied.
Observation:
Most of the employees are happy with their portion of basic pay
and no one is dissatisfied.

Compensation benefits provided to the employees:-

Bonus:
Like the other banks, SBI provides two festival bonuses to their
employee’s one is in Eidul- Fitar another one is Eid-ul-Azha. The bonus
is equivalent to the basics of the employees. Moreover, there is another
provision regarding the bonus which is based on the performance of the
employee. But it actually depends in the performance of the branch
which means if a branch does well as a whole then all the employees
of that branch get bonuses of their performance.
25
Performance Bonus:
If the bank makes profit, the employees will be entitled to 3% of
pre-tax profit as performance bonus. Fifty percent of such bonus
distributed on the basis of basic pay of an employee, and balance fifty
percent on the basis of performance of individual employees.

Provident Fund & Gratuity:

The employees are also entitled with provident fund in SBI.
Actually 10% of the basic are deducted from each employee for the
provident fund along with this 10% another 10% provided by the
company total 20% is installed as the payment of provident fund. This
fund is given to their employees at the end of their service. If any
employees leave the organization before completing three years of
employment he will get the provident fund induce from the 10% of the
basic that will calculated upon his service period which means those
employees will not be able to claim the other 10% provided by the
company. In addition SBI also provide gratuity to their which has a
handsome amount apart from the basics. The employees who complete
10 years are used to get a gratuity equivalent to the basic of 3 months.

Annual Increment:
There is a provision of annual increment of SBI which is 10%
increment based on the performance. It works as a motivating factor
for the employees to perform well. Therefore each employee tries their
best to make it happen so that their base salary having well shaped
structure.

26
Travel Allowance:

The bank also provides travel allowance to their employees. If

any employee travels any place in Bangladesh regarding company’s
prospect, they will get the money or remuneration that is cost by them
but the cost that is spent is verified by the HR personnel and after that
they got the requisition of the money.

House Rent Allowance:

The company also provides house rent to their permanent

employees who are in the managerial level. Each employee in the
managerial level gets 55% of their basic as house rent. This encourages
the potential candidates in the market to work for SBI.

Employee Loan:

Unlike other banks, SBI provides a great scheme of loans to their

employees. First of all, the permanent employees get loans from their
provident fund at a cost of 10%. They can use their money for several
purposes. Secondly, from the executive level the employees are
qualified for home loans, car loans and others at a cost of 8% where it
is around 15% for the customers so it an extra benefits consumed by
the employees.

27
Medical Facilities:

The medical facility provided by SBI is quite different from other

banks. SBI has their own medical team to look after their employees in
case of any medical assistance. They have their nursing home as well.
Therefore employees of SBI do not have the opportunity to enjoy life
insurance which means SBI does not provides life insurance policies to
the employees.

Earn Leave:

The employees who complete one year of service without any

unusual leave, get 30 days for earn leave in a year. It means their paid
equivalent 30 days of compensation.

Disability Leave:

If any employee faces unusual accident or physical challenge,

then they are provided leave granted by the company which is called
disability leave but for this leave the salary of them will not be deduced
which means these are paid leave.

28
Maternity Leave:

Maternity leave may be granted by the competent authority to an

employee for a maximum three months period at a time. This flexibility
is provided considering the labour law made by the government. This
is also a paid leave.

Study leave:

There is a fantastic opportunity for the employee of SBI. The

employees who perform extensively well and show gratitude of
benefits that they can contribute for the sake of company are entitled
for recommendation to study. Generally, the employees are
recommended to get 3 (three) years paid leave for their studies but all
the employees do not get this advantage because it is for those who are
really high performer are to authorized to get the full payment to
continue their studies.

3. Are you satisfied with the compensation benefits and plans

provided to you?

The following table is based on the information collected

from 15 respondents of my above question.

29
 Particular Respond Percentage
Satisfied 9 60%
Strongly satisfied 3 20%
Neutral 3 20%
Dissatisfied 0 0%
Strongly dissatisfied 0 0%
total 15 100%

Explanation:
From the above figure, we can observe that 60% employees are
satisfied with the compensation benefits and plans and 20% are
strongly satisfied where as 20% employees are neutral and 0% are
dissatisfied.

Observation:
Most of the employees are satisfied with compensation benefits
and plans.

4. Does the company adjust the whole compensation time to

time?
The following table is based on the information collected
from 15 respondents of my above question.
Particular Responds Percentages
Yes 12 80%
No 2 13%
Neutral 1 7%
Total 15 100%
30
Explanation:
From the above figure, we can observe that 80% employee said
compensations adjusted time to time, 13% said that compensations did
not adjust time to time where as 7% stay neutral.
Observation:
Most of the employees said their compensation is adjusted time
to time whereas a few said that their compensation did not adjust time
to time.

5. How do you rate your bank work environment?

The following table is based on the information collected
from 15 respondents of my above question.
Particular Responds Percentages
Excellent 3 20%
Very good 3 20%
Good 8 53%
Average 1 7%
Poor 0 0%
Total 15 100%

Explanation:
From the above figure, we can observe that 53% employees said
SBI work environment is good, 20% employees said environment is
very good, 20% said work environment is excellent and other 7% said
that working environment is average whereas 0% said that the
environment is poor. More than 90% of the employees said bank’s
work environment is good or very good or excellent.
31
 6. How do you rate your company’s incentives system?
The following table is based on the information collected
from 15 respondents of my above question.
Particular Responds Percentages
Excellent 1 7%
Very good 4 26%
Good 9 60%
Average 1 7%
Poor 0 0%
Total 15 100%

Explanation:

From the above figure, we can observe that 60% employees said
SBI incentive system is good, 26% said the incentive scheme is very
good, 7% said that the incentive scheme is excellent whereas only 7%
said incentives are average. It is observed that most of the employees
said that bank incentive system is good and no one said poor. It means
the incentive system of the bank is good.

Life Insurance:-

A life insurance is a contact between an insurance policy holder and an

insurer, where the insurer promises to pay a designated beneficiary a
sum of money in exchange for a premium, upon the death of an insured
person. Here the bank provides premium for its employees, the lump-
sum amount of which will be received by the employees.
32
 7. Does your organization provide the life insurance facility?

The following table is based on the information collected

from 15 respondents of my above question.
Particular Responds Percentages
Yes 0 0%
No 13 87%
Neutral 2 13%
Total 15 100%

Explanation:

From the above figure, we can observe that 87% employees said
SBI did not provide any life insurance facility to employees whereas
only 13% of employees are styed neutral. Most of the employees said
they did not get life insurance facility and few stay neutral. The bank
should have to provide the life insurance to its employees.

Provident Fund & Gratuity:

The employees are also entitled with provident fund in SBI.

Actually 10% of the basic are deducted from each employee for the
provident fund along with this 10% another 10% provided by the
company total 20% is installed as the payment of provident fund. This
fund is given to their employees at the end of their service. If any
employees leave the organization before completing three years of
employment he will get the provident fund induce from the 10% of the
basic that will calculated upon his service period which means those
employees will not be able to claim the other 10% provided by the
company. In addition SBI also provide gratuity to their which has a
handsome amount apart from the basics. The employees who complete
10 years are used to get a gratuity equivalent to the basic of 3 months.

8. Are you happy with the provident fund provided by your

bank?
The following table is based on the information collected
from 15 respondents of my above question.

Particular Responds Percentage

Yes 9 60%
No 0 0%
Neutral 6 40%
Total 15 100%

Explanation:

From the above table we can observe that, 60% employees

of SBI are satisfied and happy with the provident fund received by them
from the bank. But 40% employees of SBI are stayed neutral on this
question, whereas no employee unhappy with the provident fund
provided by the bank to them.

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 9. Does your organization provide the medical facilities?

Medical Facilities:

The medical facility provided by SBI is quite different from

other banks. SBI has their own medical team to look after their
employees in case of any medical assistance. They have their
nursing home as well. Therefore employees of SBI do not have
the opportunity to enjoy life insurance which means SBI does
not provides life insurance policies to the employees.

The following table is based on the information

collected from 20 respondents of my above question.

Particular Respondents Percentage

Yes 18 90%
Neutral 2 10%
No 0 0%
Total 20 100%

Explanation:

From the above table we can observe that, 90% employees

of the SBI are said that the got suitable and timely medical facilities
from the organisation, which is a great achievement for any
organisation. Whereas 10% employees of the organisation stayed
neutral while asking them about the medical facilities provided to them
by the organisation.

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 10. Do you feel competitors pay mix is more attractive?
The following table is based on the information collected
from 15 respondents of my above question.

Particulars Respondents Percentages

Yes 6 40%
No 9 60%
Neutral 0 0%
Total 15 100%

Explanation:

From the above table we can observe that, 40% employees

of the SBI are said that the employees of other competitive
organisations got more compensation benefits than the employees SBI,
which is not a good sign for an organisation, whereas 60% employees
said that they got more better compensation benefits than the
compensation benefits of employees of any other competitive
organisations. Here the bank has to consider and take certain steps
regarding the compensation given by it and the compensation given by
its competitors.

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11. What types of insurance facility offered by your
organization?

Insurance:-

Insurance is a means of protection from financial loss.

It is a form of risk management, primarily used to hedge
against the risk of a contingent and uncertain loss. An entity
which provides insurance is known as insurer, insurance
company, insurance carrier or underwriter. A person or entity
who buys insurance is known as an insured or as a policy
holder.

Particular Respondents Percentages

Individual 2 13%
insurance
Group insurance 11 74%
Any other 2 13$
Total 15 100%

Explanation:
From the above table, we can observe that 74%
employees of SBI said that SBI have group insurance
facility. 13% employees said that they have individual
insurance facility and remaining 13 % said that they have
any other insurance facilities. From the above table we
observed that most of the employees of SBI said that they
got group insurance facility and some other employees said
that they got individual insurance facility while some other
employees said that the got some other type of insurance
facilities from the organisation.
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 CHAPTER-5
FINDINGS AND CONCLUSION

FINDINGS:-

1. I found that compensation and benefits which are provided to the

employees by the State Bank of India are good but employees of
certain levels are satisfied whereas some are not satisfied or stay
neutral.

2. I found that there is an absence of life insurance benefits for

certain level of employees as said by maximum number of
employees and few employees stay neutral.

3. I found that in term of promotion SBI only focuses to the

increment of the salary and does not focuses on increment of other
incentives and benefits along with the salary when employees are
promoted.

4. I found that the employees of the bank are satisfied with the
amount of salary received by them except a few.

5. I found that the bank adjusts the whole compensation of the

employees time to time.

6. I found that State Bank of India provides suitable and timely

medical facilities to the employees.
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SUGGESTIONS:-

1. State Bank of India should increase other incentives and benefits

according to the employee promotion and efforts.

2. SBI should try to increase compensation and benefits according

to market standard analysis.

3. They can introduce life insurance policy to their employees of all

the levels as other organization of similar field have their life
insurance policy for the employees.

4. They should review the compensation policy and practices

considering for the job satisfaction of senior level employees.

CONCLUSION:-
From my research I concluded, that compensation is the most
important part for an employee as well as the organization because it is
one of the most important tool that motivates the employees to perform
for the organisation. Actually compensation refers to a particular
remuneration that employees are paid based on the job they have done.
In fact what the employees are paid due to their employment and job
done is called compensation. Compensation refers other forms of
remuneration as well that could be either monetary or nonmonetary.
Compensation refers to all forms of pay going to employees and arising
from their employment.
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 BIBILOGRAPHY

Text book:-
 Human Resource Management (13th ed.). Pearson.
 Strategic Compensation (Joseph J. Martocchio).
 Compensation Management.
 Practices and Policies of Compensation.

Website:-
 http://docslide.us/business/compensation-and-benefit-
chapter-1.html (last logged in)
 http://www.mutualtrustbank.com/ (last logged in)
 Sbi.co.in (last logged in)
 Wekipedia.com (last logged in)

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