A STUDY ON WAGE AND SALARY ADMINISTRATION (WITH SPECIAL REFERENCE TO NCS SUGARS LIMITED, LATCHAYYAPETA) IN PARTIAL FULFILLMENT FOR

THE AWARD OF THE DEGREE OF MASTER OF BUSINESS ADMINISTRATION SUBMITTED BY S.L. KUMAR Reg No.096C1E0022

UNDER THE GUIDANCE OF Asst. Prof.Mr.K.A.NAIDU M.com,M.B.A

DEPARTMENT OF HUMAN RESOURCE MANAGEMENT NCS SUGARS LIMITED,LATCHAYYAPETA, SEETANAGARAM (MANDAL) VIZIANAGARAM (DISTRICT), AP INDEX

CHAPTER - I Introduction Need for the study Objectives of the study Methodology of the study Limitations of the study CHAPTER - II
Profile of sugar industry

Profile of NCS sugar limited

CHAPTER - III Theoretical framework

CHAPTER - IV Wage and salary administration in NCS sugars limited

CHAPTER V Summary & Suggestions Conclusion CHAPTER VI

Bibliography & Questionary

1.1 INTRODUCTION TO HUMAN RESOURCE MANAGEMENT An organization, whether small or large, a business or an industrial enterprise, for its growth, survival and continuance, it needs financial resource, material resources, and human resources. Success or failure of an organization mainly depends upon combination of above resources. Of all resources, human resources are the participants in production and also the most beneficiaries of all resources directly depend on efficient utilization of human resources. Human Resource Management Definition : According to Flippo., human resource management is the planning, organizing, directing and controlling of the procurement, development, compensation, integration, maintenance and reproduction of human resources to the end that individual organizational societal objectives are accomplished. Objectives of Human Resource Management : To help the organization to attain its goals by providing well trained and well motivated employees To utilize the human resources effectively in the achievement of organizational goals. To enhance the job satisfaction and self actualization of employees by encouraging and assisting every employee to realize his or her full potential. To establish and maintain productivity, self respecting and internally satisfying working relationships among all the members of the organization.

 To bring about maximum individual development of members of the organization by providing opportunities for training and advancement. To develop and maintain a quality of work life which make employment in organization a desirable personal and social situation. To maintain high employee moral and sound human relations by sustaining and improving various conditions and facilities.

Principles Of Human Resource Management : a. Principal of maximum individual development : The principle stresses on the development of every personal working in a organization. By this employees will be able to develop themselves to the maximum extent of their capabilities. Their abilities, productivity and efficiency can be used achieving the objectivities of the organization.
b. Principle of scientific selection :

For the proper coordination between work and workers it is necessary to select the right person for the right job. Workers should be selected after a careful weighing of the requirements of the jobs. c. Principle of high morale : It is necessary to have a high morale among workers in an organization.
d. Principle of dignity of labour :

Work is worship workers should feel proud of their work and labor. e. Principle of team spirit : Team spirit must be developed in the workers. They should work collectively and they should feel collective responsibility for the attainment of the objective of the organization. f. Principles of effective communication : There must be effective channel of communication between the management and the workers. The orders of higher authorities should reach the workers,

while workers request and grievances should reach the higher authorities in a proper way. g. Principles of effective utilization of human resources : The skill and abilities of human resources should effectively utilize. Proper training facilities should provided to workers. h. Principles of participation : This principle emphasis the ideas of labor participation in the management of the enterprise.

Importance / significance of Human Resource Management : The importance of human resource management can be classified at four levels : 1) Organizational significance : a) Attracting and retaining the required talent through effective human resource planning, recruitment, selection, placement, orientation, compensation and promotion policies. b) Developing the necessary skills and right attitude among the employees and performance appraisal etc., c) Utilizing effectively the available human resources. 2) Professional significance : a) Developing people on continuous basis to meet the challenges of their jobs. b) Maintaining the dignity of personal at work place. c) Providing environment and incentives for developing and utilizing creativity. 3) Social significance : a) Maintaining balance between jobs and job seekers in terms of job requirement and job seekers abilities and attitudes. b) Providing most productive employment from socio psychological satisfaction can be derived.

c) Utilizing human capabilities effectively and matching rewards for the contribution made by people. 4) National significance : a) Increasing in the size and complexity of organizations. b) Rapid technological development and automation and computerization. c) Rise of professional and knowledgeable workers. d) Increasing work man in the work force. e) Growth of powerful nation wide trade unions.

1.2 NEED OF THE STUDY Many organizations today, in order to competent enough to meet the challenges need to continuously changes to develop wage and salary administration. Thus they are supposed to adopt well built wage and salary administration. The need for the study is that the performance of wage and salary administration is to be studied in order to make changes if any, in order to retained the employees and also attract the new employees to meet the challenges of the organization. The project work is done for the practical fulfillment of the degree of Master of Business Administration and to havepractical knowledge about the study. The study also aims at evaluating the practical wage and salary administration under taken by the organization in their work environment to improve their working skills.

1.3 OBJECTIVES OF THE STUDY The present study has been conducted with the following objectives : a. To know the various allowances and benefits provided by the management of FACOR ALLOYS LIMITED to the employees. b. To know the different policies, which are implemented by FECOR ALLOYS LIMITED. c. To find out the level of satisfaction of the workers of wages and salaries provided by the management. d. To study the strategies adopted in the wage and salary administration practices of FACOR during the challenging situation faced by it and to come out if such situations.

1.4 METHODOLOGY AND LIMITATIONS Data has been collected mainly from secondary sources. Some primary data also been collected. The sources are : a. Annual reports of FACOR b. Files (DA files, Bonus files) c. Bulletins. In addition to the above, some information was made available through interview with : a. Assistant Personal Manager. b. Clerks. c. Workmen The study made by me in Facor Alloys Limited was confined to determine wage and salary method and practices being followed a. The lack of availability of information.
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b. The collected does not give the complete information. c. As time period is 6weaks, it is very difficult to get a clear picture.

1.6 FRAMEWORK OF THE STUDY The study is divided into six chapters. Chapter-1 : The first chapter deals with the introduction part of the human resource management, need of study, objectives of study, scope of study, methodology and limitations of study and frame. Chapter-2 : The second chapter consists the Industry profile and company profile. Chapter-3 : The third chapter deals with the conceptual approach i.e. main subject and topic related concepts. Chapter-4 : The fourth chapter deals with the theoritical framework of the study. Chapter-5 : The fifth chapter deals with the analysis of wage & salary administration in FACOR ALLOYS Limited.

Chapter-6 : The sixth chapter deals with Summary, Findings, Suggestions and Conclusions.

Location Factors In recent years, the location factors have influenced the dispersal of sugar cane cultivated in subtropical regions and the development of cane in the south is mainly responsible for bringing about location changes in the industry. Further the sugar industry has received grater inputs from the completion of numerous irrigation projects like the Irwin canal in Mysore (Karnataka), Nizamsagar and Thungabadra projects in Madras (Tamilnadu). Added to this, the discriminatory policies in pursued by the government are also responsible for the faster rate of the growth of the industry in the south. Given transport facilities and access is necessarily dependent up on the availability of cane in the region. This concentration is substantiated from observation of the trend of sizes established in different regions of this country in relation to availability of cane. Comparatively the size of the sugar mills in Uttar Pradesh, Bihar and Maharashtra where continuous availability of cane is assured is observed to the large. Grant of production to the industry in 1931 also helped the units to increase their size. The average per day crushing capacity of the sugar factories working in our country varies from 220 tons to 3200 tons per day. In Uttar Pradesh and Bihar majority of the sugar mills have a cane crushing capacity of 2500 tons of sugar cane per day is considered to be an economical unit, under the present day working conditions.

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Since 1950, the industrys growth reveals that it is withstanding the controls and regulations, and the industry did grow substantially. While, the number of factories rise form 139 in 1950-51 to 432 in 2000-2001 the installed capacity increased ten fold from 69.2 million tones 300 million tones in 1999-2000. sugar production swelled from 1.1 million tones to 18.6 million tones during the same period. The government laid down targets for sugar production, consumptions installed capacity during each of the five year plans and ensured the growth of industry the growth of industry to meet the steady rise in consumption

SCENARIO OF SUGAR INDUSTRY

India is the largest consumer and second largest producer of sugar in the world (Source: USDA Foreign Agricultural Service). The Indian sugar industry is the second largest agro-industry located in the rural India. The India sugar industry has a turnover of Rs. 500 billion per annum and it contributes almost Rs. 22.5 billion to the central and state exchange as tax, and excise duty every year (Source: Ministry of Food, Government of India). It is the second largest agro-processing industry in the country after cotton textiles. With 453 operating sugar mills in different parts of the country, Indian sugar industry has been a local point for socio-economic development in the rural areas.

About 50 million sugarcanes farmers and a large number of agricultural laborers are involved in sugarcane cultivation and ancillary activities, constituting 7.5% of the rural population. Besides, the industry provides employment to about 2 million skilled/semi skilled workers and others mostly from the rural areas. (Source: ISMA Website accessed on May 16, 2005). The industry not only generates power for its own requirement but surplus power for export to the grid based on by product bagasse. It also produces ethanol, an ecology friendly and renewable energy for blending with petrol.

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Indian sugar industry has grown horizontally with large number of small sized sugar plants set up throughout the country as opposed to the consolidation of capacity in the rest of the important sugar producing countries, where greater emphasis has been laid on larger capacity of sugar plants.

Gone are those days when industries and its participants were highly protected with control and protectionism policies. In the process of liberalization of economic system, decontrolling policies like decontrol of sugar, steel, fertilizers etc.

Sugar industry is highly subsidized so far it also effects with new economic power. The demand for sugar has been increasing due to increase in its consumption out of changing habits of the people including common man and the need of the sugar also demands the sugar industry to meet the internal profit of its production and is to be exported to earn foreign currency within the changing market.

Sugar cane growers are facing inventory problems. Transportation problem, marketing problems, many of the growers are illiterates who are not competent to grow, sugar cane crop is on scientific lines. The financial problem is also other important one with which they can not take decisions in the time to improve quality and productivity, high transportation. Costs prices are not increasing in proportion to the increase in cost of production due to inflationary tendencies.

The sugar producing unit purchase sugar cane form the sugar cane growers. Therefore management of these units have to adopt marketing concept that is customer orientation. (Growers Orientation) various incentives are available from the government for developing sugar industry. But the industry in India is facing several problems.

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ECONOMY ROLE:

India is one of the largest sugar producing and consuming country in the world. The sugar industry plays a viral role in rural areas and provides direct and indirect employment in the country. India emerged as the largest producer of white sugar in the world.

The central government has already de-licensed. The sugar productions they purpose to decontrol the release mechanism by introduction of reduce on sugar price. At present India enjoys second place in the world sugar production. Central as well as state government has been getting 140 cores in the form of excess taxes from sugar industry. The industry has been providing substance to 5.5 lakhs workers and sustaining about 4.5 cores agricultures. Its total capital investment is amount to Rs. 1560 crores.

The sugar industry has a unique place in inidan economy and rural development because of its multiple contributions in terms of employment and provisions of raw materials to other industries. The sugar industry is the second largest agro based

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processing industry. Thus occupies a vital role among the 4 major sugar producing countries in the world. The other 3 are being USA, Brazil and Cuba.

IMPORTS & EXPORTS OF SUGAR: In view of cost of cane and sugar production in India, it could not complete with other favorable countries and to honor commitments and maintain international standard quality. The sugar exports began in the year 1958 under the sugar export promotions act up to middle of 1961. Government did not subsidize losses on exports and sugar factories got prorate payment. However in view of substantial quality of sugar in later years government stopped subsidizing these losses. The export policy has been largely influenced by the need for earning foreign exchange.

GROWTH OF SUGAR INDUSTRY There were only twenty nine factories in India during the year 1931. Protection granted to the industry in 1931 brought tremendous growth in the number of locations. The number of factories in operation had grown from 29 to 140 in 19501951. Out of which 110 factories were in northern parts of India. During the next decade the number of factories increased to 174. Out of which 116 factories are in the sub tropical region of northern India. Finally, the number of factories has grown from 200 in 1956 to 1966 to 417 in 1994 to 1995 of the factories are located in the northern India.

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The industry is predominantly localized in the Uttar Pradesh, particularly in the districts of Meerut, Saharnput Bijmour, Barely, Muzaffar Nagar Moradabad and Rampur, next Uttar Pradesh. The industry is mainly concentrated in Maharastra, Bihar and in the eastern costal districts of Andhra Pradesh. If we refer to the historical event in the sphere of sugar industry, Uttar Pradesh and Bihar occupied the predominant position as far as the location pattern of the industry is concerned, and still these states are enjoying the same position.

The reason of such heavy concentration in the states of Uttar Pradesh enjoys in respect of cane cultivation is due to the advantages confirmed by the rich and fertile alluvial soil of the genetic plain, the bulk of which contains adequate quantities of lime and potash, the pressure of thin varieties of cane admirable suited in the climate cheap and extensive of cheap and extensive irrigation facilities. The concentration of sugar cane crop incompact blocks enables the sugar factories to get fresh suppliers of sugar cane direct from the fields. Moreover, the cost of the cane cultivation is less and the cultivators are not accustomed to raise alternative crops like ground nuts, chilies, plantains etc.

STATE WISE SUGAR PRODUCTION

STATE

2004-05

2005-06

2006-07

2007-08

2008-09

2009-10

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A.P Gujarat Karnataka

1048 1055 1550

1210 1252 1868 6219 5651 1644 586 408 20145

886 1066 1116 3175 4552 921 390 272 13546

1203 832 1132 2303 5152 1475 337 270 13600

1276 1244 2009 5264 5564 2138 388 419 19300

1924 1390 2542 9013 8352 2426 550 483 28200

Maharastra 5613 U.P Tamilnadu Punjab Bihar All India 5260 1839 593 342 18528

SUGAR CANE PRODUCTION

Year 1950-51 1960-61 1970-71 1980-81 1990-91 2000-01 2001-02 2002-03 2003-04

No. of factories 138 174 215 315 385 436 434 453 422
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Cane Production (millon tones) 57.05 110 126.37 154.25 241.05 295.96 297.21 287.38 233.86

2004-05 2005-06 2006-07 2007-08 2008-09 2009-10

400 455 582 582 582 590

237.06 281.17 345.31 329.09 280 315

ZONE WISE SUGAR FACTORIES IN INDIA 2009-10

States

Public

Private

Co-Operative

Total

Punjab

16

23

Haryana

12

15

Rajasthan

U.P

33

70

28

131

Uttaramchal

10

M.P

11

17

Chandigarh

Gujarat

22

22

Maharstra

23

165

188

Bihar

15

14

29

Assam

Orissa

West Bengal

A.P Karnataka

1 3

26 25

15 23

42 51

Tamilnadu

19

16

38

Pondicherry

Kerala

Goa

Total

61

205

316

582

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ANDHRA PRADESH: 1. The Anakapalle 2. The Etikoppaka 3. The Thandava 4. The Chodavaram 5. NCS Sugars limited 6. Sri Vijayarama Gajapathi 7. GMR Industries 8. The KCP (Vuyyuru) 9. The KCP (Lakshmipuram) 10. Delta Sugars 11. Nava Bharat 12. Sri Saravaraya 13. The Andhra Sugars (Tanuku) 14. The Andhra (Taduvai) 15. Jeypore Sugars 16. The Andhra (Bhimadole) 17. Nizam Deccan (Shakarnagar) 18. Nizamabad 19. Gayatri Sugars 20. Trident Sugars
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21. Nizam Deccan (Momobogipally) 22. Ganapati 23. The Chittpr 24. KBD Sugars 25. Sri Venkateswara Sugars 26. Prudential 27. Sudalagunta Sugars 28. The Kovur 29. Empee 30. Sarita Sugars 31. Nizam Deccan (Muthyampeta) PROBLEMS OF SUGAR INDUSTRY IN INDIA:

1. Excessive Control:

The industry is suffering from changing of Government Policies. The Government has no fixed policy regarding the price and distribution of sugar.

The production of sugar is influenced by the purchasing price of sugar cane depending upon the cost of cultivation, the inefficiency and uneconomic nature of production in sugar mills to yield and short crushing season. The high pressure sugar cane and the heavy excise duties by the government are responsible for the high cost of production of sugar in India.

2. Under Utilization of by-products: In sugar production we get two by products, molasses and bio-gas, while molasses can be used in alcoholic preparation. These factories are not well developed in India. And bio-gas can be used in paper industry. But this is not being utilized properly by out paper industry. In India the yield of sugar cane per acre and percentage recovery of sugar from cane juice is very low.

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3. Short Crushing Season: Although the land is utilized through out the years, crushing season is limited to 3-4 months in a year. Hence factories have to be closed for the remaining period. This is making uneconomic too.

4. Obsolescence: Most of the factories in the private sector were set up five to six decades ago. Their machinery has by now duplicated. The cost of production of such units is unduly owing to less mechanical efficiency and more down time. It will require more money for modernization/renovation of such factories.

5. Technology: The level of technology in the Indian sugar industry is quite high and a number of developing countries have borrowed Indian sugar technology, unfortunately however many of Indian factories had been set up in early 30s and have become absolute. For these the need of the hour is modernization, rehabilitation and expanding also. Attention needs to be paid to cane development.

6. Output Trends:

Over production is due to cyclical nature and seasonal conditional and cultivations of average sugar cane. The fluctuation in the production of sugar cane is a major problem of the day.

Sugar Industry in A.P

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AP occupies 4th place in respect of sugar growing in the county. Sugar cane is cultivated in the districts of Srikakulam, Vizag, East Godavari, West Godavari, Krishna, Nizamabad, Cuddapah, Chittor and Guntur. The mill at Bodhan in Nizamabad district of AP is the highest sugar producing unit in Asia. Three more units were set up under the same management. In our country total cane under sugar cane 1/4th belongs to AP and this occupies 9th place in the industry.

NCS SUGARS LIMITED

NCS Sugars Ltd., was incorporated on 6th june 2002 for the purpose of purchasing the core assets and business of Latchayyapeta unit of Nizam Sugars Ltd (NSL), a Government of Andhra Pradesh undertaking. Latchayyapeta unit is one of the sugar mills operated and owned by NSL. It was set up in the year 1995 with a crushing capacity of 2500 TCD by replacing two units at Bobbili (850 TCD) and Seethanagaram (600 TCD) that had been taken over by Government of AP in 1986. Latchayyapeta is the principal industrial employer in the region. The Sugar Mill is located in the eastern part of AP about 800 Km north east of Hyderabad and 1Km to the north of the village of Latchayyapeta. It is 6 Km from Bobilli, a town with a population of 75000, in Seethanagaram Mandal, Vizianagaram dist A.P. Latchayyapeta is well served by transport facilities. It is located some 115 km north of the airport and one of indias major seaports at the city of visakhapatnam on the Bay of Bengal. The State Highway 34 (SH-34), between Vizianagaram and Seethanagaram, runs immediately to the west of the Mill, separating the mill lands from the residential colony lands. Bobilli Railway station and Bolilli Bus stand are about 6 km form the sugar factory.

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The existing potential for cane production and supply is of the order of 3.5 to 4 lakhs mt. cane development programs, irrigation and use of organic and / or chemical agents could increase both the acreage and yield and supply an additional 50-65,000 mt in a short time horizon. This level of supply would sustain the 2500 TCD plant at Latchayyapeta, allowing for 10% of total production to be retained for seed and 1% for household use by cane growers. The company completed 1st year of operation on 30the April 2003 with sugarcane crushing of 2.25 lakhs MT.

With a growth that consistently established, now NCS Sugars Limited is a full fledged sugar manufacturing unit with the state-of-art technology managed by a crew of professionals from various capacities, poising towards a crushing capacity up to 6000 TCD. The plant has been allotted a zone of about 43 000 acres of agricultural land consisting 17 mandals, 820 villages and about 22 000 potential farmers in the zone. The major thrust is given for cane development and uplifting farmers living standards by increasing their per capita income. This in turn will result in sufficient quantity of cane needed for optimum utilization of our facility to crush up to 6000 MT per day, during the seasons.

NCS Sugars Limited has also ventured into co-generation of power up to 20MV, by using the bagasse from the sugar unit, which is an eco-friendly venture that could take care of the electricity requirements of AP TRANSCO.

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BRIEF HISTORY OF THE ORGANISATION

Sri R.G.V.R.K Ranga rao, land lord, Raja of Bobbili and Ex-Chief Minister for combined states of Tamil Nadu and Andhra Pradesh had established sugar factory named as Sri Rama Sugars & Industries Ltd. At Bobbili under private sector in the year 1935 with 300 tonns capacity and subsequently expanded to 850 M.T per day crushing capacity. It is the first sugar industry for combined states of Tamil Nadu and Andhra Pradesh. He also started another sugar factory near Bobbili i.e., at seethanagaram for the benefit of the surrounding can growers with 650 M.T per day crushing capacity at seethanagaram. Due to losses incurred by the factories, the operations are closed in the year 1976 at Bobbili and 1978 at Seethanagaram respectively.

Then the representation made by the cane growers, local business people and workmen, the Government of Andhra Pradesh has takeover the factories and handed over to the Nizam Sugar Factory Ltd., (Government Company) to run the factory as authorized controller under Industries Development and Regulation Act. These two factories were permanently merged with the Nizam Sugar Factory Ltd (Government Company) in the year 1986 under Act 30 of 1986 by the former Chief Minister Sri N.T Rama Rao.

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Subsequently, The Nizam Sugar Factory Ltd., has changed the name as the Nizam Sugars Ltd., The Nizam Sugars Ltd., successfully run the Factories till 1990. Due to old machinery and less crushing capacity resulting poor performance of the production, the Nizam Sugars Ltd., has decided to construct new new Sugar Factory in between Seethanagaram and Bobbili villages for the benefit of both factories, cane gross as well as workers. Then the Honble Ex-Chief Minister Sri P.Janardhan Reddy had laid the foundation stone to start construction of 2500 TCD sugar Factory at Latchayyapeta in the year 1991.

Accordingly the construction and erection works have been completed in the year 1995 and the new factory with 2500 TCD capacity was inaugurated by Honble Ex. Chief Minister Sri.N Chandrababu Naidu on 28th December 1995 and the factory stars its commercial crushing for the season 1995-96 season onwards. The bobbili & Seethanagaram Sugar Factories were stopped and condemned and sale the machinery at Bobbili and Seethanagaram.

Due to Privatization policy of the Government of Andhra Pradesh and the decision of the Government of Andhra Pradesh to privatize entire the Niam Sugars Ltd., and implement the same through Implementation Secretary, Secretariat, Hyderabad.

Accordingly the process of privatization and other matters entrusted to call tenders and finalization of privatization process as per the guide lines of the World Bank, through implementation Secretary, Secretariat, Hyderabad. The NCS Estates (P) Limited has quoted highest bid and taken over the Nizam Sugars Ltd., sugar unit situated at Latchayyapeta in the name and style of the NCS Sugars Limited and was inaugurated the factory on 17th December 2002 under the New Management.

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OBJECTIVES OF THE COMPANY

The objectives of the company set out in the memorandum of association as under:

To establish factories for manufacturing of sugar To establish the sugar cane units properly and to increase the production of the sugar cane. To supply least variety of cane seeds. To give maximum price to suppliers of sugar cane. To export sugar and other products to the farmers. To introduce the agriculture development schemes and other subsidiary schemes for the farmers. Other objectives like facilities for employees and development of area.

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QUALITY POLICY

We are committed to achieve continual improvement and enhance satisfaction of customers through:

Manufacture and supply of consistent quality of sugar and its by-products at an optimum cost complying with customer requirements. Generation of reliable power with maximum Plant Load Factor. Extending necessary support to cane growers to optimize per acre yield that would result in larger volumes of supply. Continually improving the effectiveness of management systems and practices.
Compliance with applicable statutory and regulatory requirements.

Seeking participation of employees at all levels, to inculcate total quality culture.

GROWTH OF THE COMPANY

The factory operations under the new management of NCS Sugars had

commenced on 17th January 2003.

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 After taking over, NCS Sugars Limited has registered a phenomenal growth in terms of production and yield. During the year 2006-07, the company expanded its existing capacity of 2500 TCD to 6000 TCD and commissioned a 20 MW Co-generation plant. A 240 KLPD Ethanol Plant is in the pipeline, thereby it becomes a sugar complex where many activities related to sugar manufacturing and its byproducts would happen.

PRESENT PROJECT OF THE COMPANY

The company is presently manufacturing sugar at its factory at latchayyapeta. Company manufacturing sugar with raw sugar in the off season due to un availability of the cane. Company imports raw sugar from brazil and it is the first company in India in the sugar production with importing raw sugar from other country. The capacity of the company in producing the sugar is 94 bags per day which is increased from the previous production 86 bags per day. The company target is to produce 95 bags per day and its almost reaches their target and tries to reach target completely.

The co-generation plant is producing power with the capacity of 20 mw per hour and it continues its same project at present. Company seeks to establish a ethanol plant in the nearest place of sugar factory and also seeks to establish another sugar plant to form complex sugar factory. LAND AND BUILDINGS OF THE COMPANY: The company presently approximately owns 200 acres of land at latchayyapeta. There the existing sugar units located had the extent of area covered by building in 71.56 acres. The company at present has 13 sugar godowns for storing 10,00,00 bags of sugar.
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WELFARE FACILITIES PROVIDED BY THE COMPANY

Statutory safety facilities: Staff shoes Uniforms Other safety equipment

Statutory welfare facilities Washing facilities Canteen facilities Restrooms and lunchrooms Dispensary Facilities for sitting

Non-statutory welfare facilities School bus Arranging picnics Other benefits and allowances Bonus

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 Gratuity Medical expenses for insured persons Retaining allowances Provident fund

TRADE UNIONS

In the NCS sugars limited there are four unions. All unions are registered there is no recognition of any unions since the establishment of new plant. Elections are also not held between the unions since a long time. Union leaders are outside leaders only. The details of various unions are furnished below. The NCS sugar factory staff and workers union latchayya peta registred NOD/11/7/90-CITUC The NCS sugar Karmic Sangh Uuion Regd.NO.-3/11/76 BMS The NCS sugar workers & employee union Red.No-1558/96 Independent union Sri Rama Sugar mills Labor Union Regd-No-715/47-AITUC

Awards and honors of the company NCS Sugars Limited is the recipient of Best Cane Development award for 2007, presented in R & D workshop at Vijayawada by Acharya N G Ranga Agricultural University & Commissionerate of suger, Government of Andhra Pradesh.
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2nd place in Best Cane Development Award by SISSTA-2007. This is the FIRST Sugar Factory to have associated with 22000 farmers covering half the district of Vizianagaram. Board of Directors of the Comapany: Sri N. Nageswara Rao Sri N.Murali Sri N.Srinivas Sri Janki Manohar Managing Director Director Director Chief Executive

Organizational Chart of NCS Sugars limited

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DEPARTMENTS IN THE NCS SUGARS LIMITED

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 Cane Department. Process Department. Engineering Department. Purchase and Stores Department. Sales Department. Co-Generation Department. Finance Department. Personal Department. Electronic Data Processing Center.

CANE DEPARTMENT:

The functions of this department are followed by under the directions of the cane manager. The main function of this department is procuring raw material and supply to the production department for crushing to produce sugar. In addition to this function here they give incentives to the formers and so on.

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Key functions: (Raw Material Supply-Fixing Incentives Fixing Cane price-Bills Payment to formers)

Procuring and supply of raw materials: Provide incentives to the formers: Fixing of cane price Bills paid through accounting department

Central Government fix the price of the sugar cane across India called as Fair and Remunerative Price (FRP) formerly known as statutory minimum price (SMP) is Rs 1312 per tone and purchase tax Rs 60, in addition to this the company paid 378 Rs to encourage the formers towards sugar cane production.

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CANE PRICE PAID FROM 2005 TO 2010

Year 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11

SMP 866.00 833.00 880.00 820.50 811.80 901.80 1312.00

PT 60 60 60 60 60 60 60

ACP 119.50 103.20 238.20 378.00

TOT PRICE 926.00 893.00 940 880.50 871.80 961.80 1750.00

Supportive/off seasonal functions: Technology Development: Controlling methods of sugar cane diseases Awareness programs:

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Structure of Cane Department:

Deputy General Manager (HOD) Deputy General Manager (HOD)

Manager (HOS) Manager (HOS)

Deputy Manager (Area Manager)

Agricultural Assistant Agricultural Assistant

Field Men

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PRODUCTION DEPARTMENT:

The production department is the key department for the organizations development if it performs well the company will grow, if the department not performs well it may be leads to organization wealth decrease. The entire income incurred to the organization form product sales only. Thats why this department has such importance.

The function of this department is to produce sugar and its by products from the cane as well as from raw sugar.

To operate machinery well.

Particulars of cane crushed:

Duration No of Days Cane Crushed (Tonnes) Sugar Produced (Qts) Recovery (%) Turnover (Rs in Lakhs)

2008-09 175 11,96,365 13,95,110 11.14 22,319

2009-10 189 12,83,994 13,93,770 10.85 16,792

NCS SUGARS LIMITED TOTAL PRODUCTION

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Juice Hearts

Production Year (in Quintals)

Timing-juice treatment tanks- sulphation so2 gas

2003-2004 2004-2005 2005-2006 2006-2007 2007-2008 Clarifies-Filter cake througotary vaccum filter 2008-2009 2009-2010 2010-2011

11,26,400 13,09,340 9,23,650 10,75,620 12,24,740 13,95,110 13,93,770 14,25,620

Evaporators

Sugar Manufacturing Process:

Sugar Cane

Syrup-Sulphited

Weigh Bridges

Cane Carriers Vacuum pans Cane Cutter Mascreation water-Shredder Mills-Bagasse to Boiler as fuel A-1, B-1, B-2,C Massecuites Crystallizers (Through water weighing scale)

Raw/Juice (Mixed) Centrifugal Machines- (AH, AC, BH, CL, FM, AB, Heavy & Light Molasses)

Sugar Grader

38 Sugar Bagging (Grade Wise)

Sugar Godowns (For Storage)

ENGINEERING DEPARTMENT:

This is the department for maintaining all machineries, which are used in the production process. Here the chief engineer is the head of the department and he is the responsible person for the function in the department. The key function of the engineering department is maintaining of machineries. The maintaining types are Periodic maintenance Break down maintenance General maintenance

Checking of the machineries at time to time and observing the performance of the machinery in the process functionChief Engineer are also the functions of the department. Another function of this department is managing production process. Machinery installation.
Senior Manager Engineer

Structure of the Department: Deputy Manager

(Engineering)

Engineers 39 Work Men

PURCHASE AND STORES DEPARTMENT:

This department is managed by material manager. He is the responsible for all the functions in the department. The main function of this department is purchasing the general items like material oil, lubricant of nuts and bolts, electrical items basing on the requirement of general department.

This time for item required to supply that item is maximum 1 week. Its called as pipe line. The company mostly purchases items from Gujarat, Karnataka. They prefer brand items only and go to manufacturer directly to purchase. They go to traders for purchase in few cases. The stores department functions is to store the purchased items safely based on the item or chemical. Department Chart:

Purchase and Stores

Manager Material

Manager Purchase

40 Clerks

SALES DEPARTMENT: The sales department is controlling by the deputy general manager (accounts). The company goes to two types of sales as per central government orders, those are free sales and levy sales.

Sales Sales

Levy

Free Sales

Levy Sales:

10% of the total production is goes to levy sale. This sugar is for the public distribution. The price for lavy sales is fixed by the central government of India.

Free Sales:

90% of the total production of the sugar sold in the form of free sales. The sales of this sugar done according to the sales orders given by the central government.The central government releases purchasing orders relating to quality of sales to be sold on the basis of total production of the sugar in the completed year.

41

Functions of this department:

Issuing gate pass to the lorries for weighment after receiving the delivery orders by the deputy general manger. Reporting of sales transactions to the deputy general manager Record keeping regarding to the sales transactions done in the company. Maintaining accounts.

Structure of the Department:

Director

Sugar Trade Head

Assistant Sugar Trade

Deputy General Manager (Accoutns)

Accounts Assistant

Godown Incharge

Godown Assistant

42

CO-GENERATION DEPARTMENT:

A co-generation plant was established beside the NCS Sugars limited. It was commissioned form 17th Mach 2007. Two departments are in the co-generations plant one is technical department and the other one is executive office. Hence the Deputy General Manager manages the total co-generation plant.

The plant total capacity is 20mw/h, and they provide 4.5mw to the sugar plant in the seasonal period and 1mw in the off season. 10% of the total production consumed for the axillaries of the co-generation plant and the remaining should exported.

The byproduct begasse of sugar production is used as the raw material for the power generation. Coal is used as raw material while in the off season. This coal is imports from Indonesia.

EXECUTIVE OFFICE:

43

This is the head office of the co-generation plant, total functions which are not related to technical are done here.

Functions of executive office

Equipment availability:

Here they arrange the equipments to the power generation like fuel, machinery, man power.

Maintenance of schedules:

The co-generation plant is 24 hours working plant thats why they maintain schedules for the workers. Here the workers follow three shifts A, B, C. A shift6AM to 2PM B shift2PM to 10PM C shift10PM to 6AM General Shift8AM to 5PM

Power export an import activities:

44

The power after consumed by the sugar and co-generation plant is exports to the other states. The deputy general manager and the other staff maintain this function. Technical office functions: The main function of the technical department is operate and controlling of the machinery. They operate the machinery form the separate room by using some panels are control panel, generator panel, in that panels displays the information regarding to the working of machineries and power generation based on that information they operates and control them

Structure of the co-generation department:

Deputy General Manager

Manager

Deputy Manager (Technical)

Deputy Manager (Q.C)

Electical Engineer s

Technician s

Instrument al Engineers

Chemist

Plant Operators

Operation

Maintenanc e

45

FINANCE AND ACCOUNTS DEPARTMENT:

The main function of financial development is to arrange the funds for salaries, wages for the employees and daily wages, to arrange payment to the sugar cane growers for the purchase of other considering goods, oils, chemicals, spare parts of the machinery and they have to receive sale proceeds by way of selling products.

Finance Department Chart:

Accounting Department Accounting Department Manager Finance & Accounts Finance & Accounts Asst Manager Finance & Asst Manager Finance & Accountants Accountants Asst Accountant Officer Asst Accountant Officer

Clerks 46

PERSONNEL DEPARTMENT:

The main function of personnel department is to look after with manpower planning, recruitment, selection, placement, induction, promotion, and transfer, demotion, separation, lay-off, retrenchment, training, wage & salary administration.

The personnel functions also include the welfare aspects of labour are concerned with the conditions of work and elements such as the provision of canteens, housing, transport, medical, education and health & safety provisions.

INDUSTRIAL RELATIONS:

To keep up discipline in the organization is another function of personnel department. If any worker commits a mistake, the management must take action according to the sending.

Charge Sheet

Enquiry

Suspension 47 Dismissal

EMPLOYMENT:

Recruitment: it is concerned with quantity and quality of man power. Technical staff is recruited from employment exchange. Take apprentices form employment exchange for a period of 1 year. They give stipend for that year. After 1 year they are revealed from service. It is for lower cadre like filters, technical staff etc. to receive the executive rank officers they are giving paper ads in a leading news paper. They recruit these employees based on experiences. Solution:

Selection process typically follows standard pattern beginning with an initial screening interviews and including the final employment decision. Placement and probation:

A proper placement of a worker reduces employee turnover, absenteeism and accident rates and improves more probation period, is 1 year. It extended to them on for with permanent employees.

Promotions and transfers:

48

Promotions are based on the seniority and ability. But most of them are based on seniority. Transfer are due to convenience of the company employee. Temporary transfer due to ill health. Permanent transfers arising out of ill health.

Time, office management: Procedure of taking attendance: the attendance procedure followed in this organization in the case of workers they had given the token numbers in this come to the organization they inform their token number in the time office. In the case of staff they are given token numbers they directly sign in the register. And also use biometric system. Shift Timings: As the manufacturing process of the company is continuous in the nature, the working hours for the employees and workers are as follows during the season. For the staff includes executives, supervisors, clerks, office boys etc., who are not connected with manufacturing process. i.e., General Shifts from 9AM to 6PM for the Sr.Engineers, A.Es., J.Es, Supervisors, manufacturing chemicals, lab chemists and workers who are connected with manufacturing process. A shiftfrom 6.00 AM to 2.00 PM
Unit Head

B shiftfrom 2.00 Noon to 10.00 PM HOD C shiftfrom 10.00 PM to 6.00 AM Structure of the personnel department:
HOS

Jr. Officer-HR

In-ChargeHR 49 Time Office Asst

Asst. Payroll

Time Office Asst

Time Office Asst

ELECTRONIC DATA PROCESSING CENTER:

This department is the key department for the organization because the information relating to the all department is stored in this department. They maintain separate database for store the all these data. EDP in charge is the head for this department and three EDP assistants are working in this department.

Objective of this department: Prevent data losses Reducing network problems

Functions: The most common function of this department is day by day incremental back up. Network checking Total systems in the organization are controlling by this department. Bio-metrics dual checking. Through this they record daily attendance of the executives, employees and workers.

50

Video conferences are held in this department. Through this top management participate in meetings with other executives in the outside of the organization. They ready to develop ERP. Pay lists are creating here.

CHAPTER-III THEORITICAL FRAME WORK

51

WAGE AND SALARY

One of the most important areas of Human Resource Management is compensation Management. The soundness of compensation management depends upon the amount of wage and salary paid to an employee for a fair days work. Despite the conclusions of morale studies wage or salary is significant to most of the employees as it constitutes a major share of their income pay in one form or another is certainly one of the main springs of physical needs. It provides recognition a sense of accomplishment and determines social status. Hence formulation and administration of sound remuneration policy to attract and retain right personnel in right position is the prime responsibility of any organization. Wages and salary administration is essentially the application of a systematic approach to the problem of ensuring that employees are paid in a logical, equitable and fair manner. Wage:

Wage and salary are often discussed in loose sense, as they are used interchangeably. But ILO defined the term wage as the remuneration paid by, the employer for the

52

services of hourly, daily, weekly and fortnightly employees. It also means that remuneration paid to production and maintenance or blue collar employees. Salary:

The term salary is defined as the remuneration paid to all clerical and managerial personnel employed on monthly or annual basis.

The direct compensation paid to an employee compensating his service to an organization. Salary is known as basic pay.

Earnings: Earnings are the total amount of remuneration received by an employee during a given period. These include salary (pay). Dearness allowance, house rent allowance, city compensatory allowance, other allowances, overtime payments etc. Nominal wage: It is the wage paid or received in monetary terms. It is also known as money wage.

Real wage:

Real wage is the amount of wage arrived after discounting Nominal wage by the living cost. It represents the purchasing power of money wage.

Take home salary:

53

It is the amount of salary left to the employee after making authorized deductions like contribution to the provident fund, life insurance premium, income tax changes, and other charges.

Minimum wage:

It is the amount of remuneration, which could meet the normal needs of the average employee regarding as a human being living in a civilized society.

It is defined as the amount of remuneration, which may be sufficient to enable a worker to live in reasonable comfort, having regard to all obligations to which an average worker would ordinarily be subjected to. Principles of Wage and Salary Administration: There are several principles of wage and salary plans, policies and practices. The important among them are: Wage and salary plans and policies should be sufficiently flexible or responsive to changes in internal and external conditions of the organization. Wage and salary administration plans must always be consistent with overall organizational plans and programs. Wage and salary administration plans and programs should be in conformity with the social and economic objectives of the country like attainment of quality in income distribution and controlling inflationary trends. Management should ensure that employees know and understand the wage policy of the company. Workers should be associated in formulation and implementation of wage policy. All wage and salary decisions should be checked against the standards set in advance in the wage policy. Wage and salary plans should simplify and expedite other administrative processes.

54

WAGE FIXATION INSTITUTES IN INDIA:

Collective bargaining and adjudication CB is procedure in which compromise is reached through balancing of opposed strengths. It is a means through which employee prol-leiw, relating to various issues including wages are settled, if these problems are settled through CB they may be settled through voluntary arbitration or adjudication.

Wage board:

Government of India set up tripartite wage board on industry wise basis to fix and revise pay. The boards are set up on ad-hoc basics on the demand of trade unions and employees as there is no low providing for their establishments.

A wage board consists of an impartial chairman, two independent members and 2 or 3 representatives of workers each. The recommendation of wage boards is first
55

submitted to the government. Government may accept, modify or reject the recommendation. While determining wages, wage boards take into accounts the following factors: a) Need based minimum wages b) Industries capacity to pay. c) Productivity of labor d) Prevailing rates of wages e) Various wage legislation f) Level of income and its distribution g) Place of the industry in the economy h) Needs of industry in a developing economy i) Requirements of social justice. j) Need to provide incentive for improving productivity

Pay commission:

This is another institution which fixes and revises the wages and allowances to the employees working in the government and government departments. Pay commissions are separately constituted by Central, and State Government. Central Government so far has appointed five pay commissions. WAGE AND SALARY ADMINISTRATION IN NCS SUGARS LIMITED Human Resource Management is the part of the management process that is concerned with the management of Human Resources in an Organization. Human Resource Management is a multidisciplinary activity, utilizing knowledge and inputs drawn from psychology, sociology, anthropology and economics etc. The scope of Human Resource Management is very large. Wage and Salary administration plays a prominent role in each and every organization. Wage and salary administration is essentially the application of a systematic approach to the problem of ensuring that employees are paid in a logical, equitable and fair manner.

56

The basic purpose of wage and salary administration is to establish and maintain an equitable wage and salary structure and maintenance of an equitable labor cost structure. So that satisfaction of employees and employers is maximized and conflicts minimized. The wage and salary administration concerned with the financial aspects of needs. The needs of the employees so that reward can be individually designed to satisfy some need. Before they do anything, they look for a reward or pay-off. The reward may be money or promotion, but more likely it will be some pay-off a smile acceptance by a peer, receipt of information, as kind word of recognition etc. The management of Jeypore Sugar Company has Designed a well Structured wage and salary system. In the organization the salaries are paid at three levels namely salaries to non managers including permanent and seasonal employees, salaries to executives and salaries to management staff.

LIST OF GRANTS & ATTACHED PAY SCALE

S.NO Grade 1 2 3 4 5 6 7 Un skilled-II Un skiled-I Semi skilled

Pay Scale 5700-40-6100-50-6600-60-7200-70-7900 5850-50-6350-60-6950-70-7650-80-8450 6035-60-6635-70-7335-80-8135-90-9035

Skilled & clerical grade-IV 6225-70-6925-80-7725-90-8625-100-9625 Skilled & clerical grade-III 6350-75-7100-85-7950-95-8900-105-9950 Highly skilled & clerical 6470-80-7270-90-8170-100-9170-110-10270 grade-II Supervisory grade-I & clerical 6625-90-7525-100-8525-110-9625-120-10825

The above table-shows what grades are in the NCS Sugars Limited and the pay scale in the NCS Sugars Limited that is paid for workers.

57

The table shows the pay scale non-managers in the company. There are basically three types of non-managing employees. One is supervisory cadre and the second one is clerical cadre and the third one is the skill-based category. In the unskilled grade IIs pay scale starts with 5700/- basic in this yearly increment is 40/- once the scale cross the 6100/- the increment will grow up to 50/- the scale ends at 7900/- basic. Unskilled grade Is pay scale stats with 5850/- basic in this yearly increment is 50/once the scale cross the 6350/- the increment will grow up to 60/- the scale ends at 8450/- basic.

Semi skilled pay scale stats with 6035/- basic in this yearly increment is 60/- once the scale cross the 6635/- the increment will grow up to 70/- the scale ends at 9035/basic.

In the skilled and clerical grade-IVs pay scale stats with 6225/- basic in this yearly increments is 70/- once the scale cross the 6925/- the increment will grow up to 80/once the scale cross the 7725/- the increment will grow up to 90/- the scale ends at 9625/- basic.

In the skilled and clerical grade-III pay scale stats with 6350/- basic in this yearly increments in 75/- once the scale cross the 7100/- the increment will grow up to 85/once the scale cross the 7950/- the increment will grow up to 95/- the scale ends at 9950/- basic.

In the skilled & clerical grade-II pay scale starts with 6470/- basic in this yearly increments is 80/- once the scale cross the 7270/- the increment will grow up to 90/58

once the scale cross the 2990/- the increment will grow up to 100/- the scale ends at 10270/- basic.

In the supervisory & clerical grade-Is pay scale starts with 6625/- basic in this yearly increments is 90/- once the scale cross the 7525/- increment will grow up to 100/once the scale cross the 8525/- the increment will grow up to 100/- the scale ends at 10825/- basic.

SUGAR FACTORY EXECUTIVES

Sno

Name

Designation

scale of pay

M.janaki Manohar

Chief Executive

66500

K.Srinivas

Personal Manager

23750

K.Ravi Kumar

Executive-HR

18387

T.Srinivas Raju

Liaison Officer

14250

M.Suryanarayana

Sr.Manager (Operation)

23750

S.Balasubramanyam

Jr.Officer-HR

7753

59

CO-GENERATION EXECUTIVES

Y.V.Subba Rao

Deputy Eneral Manager

54150

P.Nagaraju

Deputy Manger(Electical)

33250

K.Murali

Chemist

13350

V.Suryanarayana

Deputy Manager (Mech)

30400

Syed Abdul Nabi

Assistant Manger (Q.C)

20900

M.V.V.S Srivas

Sr. Engineer (Electical)

19000

60

EXECUTIVES PAY SCALE

Wage & Salary Structure for Different Categories in NCS Sugars Limited

Managerial staff supervising candidates Workers & electrical staff Trainees Apprentices PRW for below 175 bags Next 25 bags Next each bag

Consolidate Wage agreement Consolidate Government Each bag 70 paisa Each bag 90 paisa Each bag 1.05 paisa

PRW-Piece Rate Workers:

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In seasonal 25% retaining allowance will be given for piece rate workers. The above table shows the information about how NCS Sugars Limited pays the wage and salary for workers and managerial staff, supervising candidates and trainees and apprentices and piece rate workers.

LIST OF EMPLOYEES ELIGIBLE FOR P.F CUTTING

Sugar executive employees Co-gen executive employees Sugar permanent employees Co-gen permanent employees Sugar seasonal employees Co-gen seasonal employees Sugar probation employees Co-gen probation employees Head office employees Arrears of all category employees

30 1 64 3 177 28 13 9 22 14

62

Total

361

SALARIES STRUCTURE UNDER WAGE BOARD SCALES (Confirmed permanent and seasonal employees)

Basic Dearness allowance Fixed allowance Family planning

: : : :

*** *** *** ***

PF wages (for the purpose of provident fund and gratuity

Medical allowance Washing allowance House rent allowance

: : :

*** *** ***

Allowances

63

Conveyance allowance

***

Different allowances are listed shown in the given below table

GRADES

D.A

M.A

W.A

H.R.A

C.A (field Staff)

Un skilled-II 240.00 Un skilled-I 200.00 Semi-skilled 200.00 Skilled & 200.00 clerical Grade-IV Skilled & 200.00 clerical Grade-III Highly 340.00 Skilled & Clerical Grade-II Supervisory 200.00

1757.65 200.00 1757.65 1757.65 1757.65 265.00 265.00 265.00

265.00 110.00 110.00 110.00

110.00 250.00 300.00 340.00

1757.65

265.00

110.00

340.00

1757.65 200.00

265.00

110.00

1757.65

265.00

110.00

340.00

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& Clerical grade-I

The above table shows the information about the different types of allowances that are paid to the Non-executives in the company.

D.A Dearness Allowance M.A Medical Allowance W.A Washing Allowance C.A Conveyance Allowance The company gives dearness allowance to the employees based on the all India average consumer price index points @ Rs. 2.15 per point. WAGE DEDUCTIONS:

The company deducts the wages of the employees in such cases provident fund, voluntary provident fund, professional tax, life insurance policies taken by the employee, if the employee took loans from the bank, if the company gives imprest allowances and festival allowance, house maintenance, canteen token given by the company, group saving link insurance, cable connection recovery. Provident fund: The EPF is a scheme intended to help employees from both private non-pensionable public sectors save a fraction of their salary every month in a saving scheme, to be used in an event that the employee is temporarily or no longer fit to work or at retirement. For P.F Employee Contribution is 12%

65

Employer Contribution is Employer Contribution for E.P.F Voluntary provident fund

3.67% 8.33% 8%

Professional tax:

Professional tax is the amount levied on the income of the profession of the employee. This amount is deducted based on the wage or salary earning of the employee.

Insurance policy: If the employee take insurance policy from the insurance company he may liable to pay the insurance term wise thats why the company deduct his insurance premium amount and paid directly to the insurance. Bank Loans: NCS provides bank loans for the employees based on their income capability through banks. If any employees took bank loan, company deduct the amount which is liable to pay to recover the bank loan and paid directly to the bank. Canteen: Company gives canteen tokens for subside to the employees. The amount for the tokens collects from the salary of the employee. SUMMARY OF SALARY BILL Earnings:
66

Basic Fixed allowance F.P increment Special pay V.D.A House Rent Allowance Medical Allowance Washing Allowance Conveyance Allowance Other Allowance Gross

: : : : : : : : : : :

*** *** *** *** *** *** *** *** *** *** ***

Recoveries

Provident Fund V.P.F Profession Tax Court Attachments Life Insurance Policy Income Tax Festival Advance Education Advance Canteen Collection

: : : : : : : : :

*** *** *** *** *** *** *** *** ***

67

Cable T.V collection House Rent Recovery Electrical excess consumption R.D bank G.S.L.I L.W.F Club Others Imprest Advance Salary Advance APCO Collection School M.Club Dormitory Medicines Telephones Donations Net total

: : : : : : : : : : : : : : : : : :

*** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** ***

SALARY BILL IN NCS SUGARS LIMITED

Earning: Basic : ***

68

Fixed Allowance F.P Inc Special pay Dearness Allowance House Rent Allowance Medical Washing Allowance Conveyance Allowance Others

: : : : : : : : :

*** *** *** *** *** *** *** *** ***

Gross: Deductions: P.V V.P.F P.Tax L.I.C Court Bank loan Imprest Fest Electricity H.M.R G.S.L.I Canteen Cable : : : : : : : : : : : : :
69

*** *** *** *** *** *** *** *** *** *** *** *** ***

Po.rd Others

: : : :

*** *** *** ***

Total deductions Net salary

REMUNERATION FOR THE EMPLOYEES IN NCS SUGARS LIMITED

In the NCS sugars limited there are four types of employees. In those the remuneration is different for the seasonal employees compared to the permanent.

Type are:

Confirmed permanent employees Seasonal employees Probation employees Trainees

70

Confirmed permanent employees:

For these employees company give salaries for their work according to the wage agreement between the workers and management of the company.

Seasonal employees:

For this type of employees company give salaries in the season. And in the off season they provide retained allowance. The retained allowance is provided for the retaining of employees in the company during the off season. This retention allowance was given based on the grades. Its listed below.

Unskilled-I 25% in their salary in the season

Unskilled-II

Semi skilled

35% of their salary in the season

Skilled & clerical grade-IV Skilled & clerical grade-III Highly skilled & clerical grade-II 50% of their salary in the season

71

Supervisory & clerical grade-I

Probation employee: For these employees company give salaries for their work according to the wage agreement between the workers and management of the company.

Trainees:

Company paid remuneration for the trainees for their work according to the government rules and provisions

BONUS GIVEN TO THE EMPLOYEES IN NCS SUGARS LIMITED

NCS Sugars limited prepare bonus bill for the following categories separately for the financial year of every year (Sugar & Cogeneration plant)

1.Executive bill 2.Permanent bill 3.Seasonal employees bill Company consider salary during season Company consider retained allowance during season

72

Company consider the occupational wages during season 4. probation employee bill 5. I.T.I apprentice bill 6.V.R.S employee bill 7.DIP trainers bill 8.trainees bill

NCS sugars have to calculate month wise the categories of the employees for bonus for 12 months (i.e from period 01.04.year to 31.03.year)

For calculation:

Total earned P.F wages x 8.33 % = one month bonus 100 For example:
Rs 3500 100 X 8.33 % = Rs 291.55

(i.e bonus for 12 months = Rs 291.55 x 12 = Rs 3498.60)

73

In the view of the above company take total earned PF wages and calculate month wise for 12 months. Bonus payable @ 8.33% maximum ceiling up to Rs 3500/-Per annum those who have earned P.F wages subject to Maximum ceiling up to Rs 10,000/- per month salary based.

EX GRATIA FOR EMPLOYEES IN NCS SUGARS LIMITED

NCS sugars limited prepare ex-gratia bill for the following categories separately for the financial year of every year (sugar & congeneration plant)

1.Executive bill 2.Permanent bill 3.Seasonal employees bill Company consider salary during season Company consider retained allowance during season Company consider the occupational wages during season 4. probation employee bill

74

5. I.T.I apprentice bill 6.V.R.S employee bill 7.DIP trainers bill 8.trainees bill

NCS sugars have to calculate month wise the categories of the employees for bonus for 12 months (i.e from period 01.04.year to 31.03.year)

For calculation: Total earned gross wages x 30 = one month ex-gratia 365 days For example: Rs 10000/X 30 = Rs 821,91/365

(i.e ex gratia for 12 months = Rs 821.91 x 12 = Rs 9862/- ex gratia per year)

75

Manual option the above is subject to maximum for 15 days / 30days / 45 days / 60 days for ex gratia calculation

If company has paid any means the amount should be clubbed in concern month earning and the same should be clubbed in grand total.

PENSION AND GRATUITY

Under the provident fund act 1925 the company follows the pension scheme 1995. According to this the employer contribution for the pension is 8.33% and the Calculation of pension amount: employees contribution is 12%. Pension is deducting and calculating up to 58 years of the employees age. Pensionable salary x pensionable service In the NCS sugars limited the employees working period is 60 years but the amount Pension deducts up to 58= years only. The remaining two years there is no deduction from wages and pension is payable to that employee from 58 years age of the employee. 70 For example: Employers contribution for pension =12% Employees contribution for pension =8.33% Pension 3250/= 6500/- x 35 7 Calculation of gratuity: Gratuity = P.F wages x no.of years serice x 7 or 15
76

= 50%

26

CHAPTER-IV DATA ANALYSIS AND INTERPRETATION & WAGE AND SALARY ADMINISTRATION

77

1. EMPLOYEES RESPONSE ON RECEIVING THEIR SALARY

S.No 1 2 3

Item of scale More Satisfied Satisfied Unsatisfied Total

No.of Respondents 46 61 3 110

Percentage 42 56 2 100

78

Employeees Response on Receiving thier Salary

2%

42%

More Satisfied Satisfied Unsatisfied

56%

Interpretation

The above table reveals the employees perceptions about their salary. 61 respondents representing 56% of the sample were satisfied with the salary that they are receiving. While, 46 respondents constituting 42% opined that they are more satisfied with their salary and remaining (2%) were unsatisfied.

2. EMPLOYEES RESPONSE ABOUT OVERTIME SALARY

S.No 1 2 3 4

Item of scale Excellent Good Average Poor Total

No.of Respondents 35 46 18 11 110

Percentage 32 42 16 10 100

79

Employees Response about Overtime Salary

10% 32% Excellent Good Average Poor

16%

42%

Interpretation

The table indicates the employees response about overtime salary. Majority (74%) of the employees stated that the overtime salary was good. While, 16% of employees said that it is average, 10% however opined that it is poor.

3. EMPLOYEES OPINION ON TAKING ANNUAL BONUS

S.No 1 2 3

Item of scale More Satisfied Satisfied Unsatisfied Total

No.of Respondents 40 62 8 110

Percentage 37 56 7 100

80

Employees opinion on taking their Annual Bonus

7%

37% More Satisfied Satisfied Unsatisfied 56%

Interpretation

The table shows the employees perception on Annual Bonus. 62 respondents representing 56% of the sample said that they are satisfied with the annual bonus. 40 respondents constituting 37% of employees stated that they are more satisfied. Whereas, 7% of employees stated that they are more satisfied. Whereas, 7% of employees were unsatisfied.

4. EMPLOYEES OPINION ON SALARY / WAGE INCREMETNS

S.No 1 2 3

Item of scale More Satisfied Satisfied Unsatisfied Total

No.of Respondents 51 38 21 110

Percentage 46 35 19 100

81

Employees opinion on Salary / wage increments

19%

46%

More Satisfied Satisfied Unsatisfied

35%

Interpretation

The table shows the opinions of the respondents about the payments of increments. Majority (81%) of the employees opined that the increments give are good. However, 19% of employees took a neutral stand.

5. EMPLOYEES OPINION ON HOUSE RENT ALLOWANCE (HRA)

S.No 1 2 3 4

Item of scale Excellent Good Average Poor Total

No.of Respondents 27 59 17 7 110

Percentage 25 54 15 6 100

82

Employees opinion on House Rent Allowances (HRA)

6% 15% 25% Excellent Good Average Poor

54%

Interpretation

Table exhibits the employees opinion on house rent allowances. It is observed that majority (79%) of respondents said that the HRA is Good. 15% of respondents stated that it is average. Whereas, 6% opines that they are poor.

6. EMPLOYEES OPINION ON V.R.S

S.No 1 2 3 4

Item of scale Excellent Good Average Poor Total

No.of Respondents 12 21 61 17 110

Percentage 11 19 55 15 100

83

Employees opinion on V.R.S

15%

11%

19%

Excellent Good Average Poor

55%

Interpretation

The table shows that, 61 respondent representing 55% of the sample stated that the V.R.S of the company is average. 19% of employees said that the V.R.S is Good. Whereas, 15% opined that the V.R.S is poor.

7. EMPLOYEES OPINION ABOUT PROVIDENT FUND

S.No 1 2 3 4

Item of scale Excellent Good Average Poor Total

No.of Respondents 59 25 18 8 110

Percentage 54 23 16 7 100

84

Employees opinion about Provident Fund

7% 16% Excellent Good 54% Average Poor 23%

Interpretation

From the table it is observed that, majority (77%) of the employees stated that the provident fund provided by the company is good. 16% of employees said that it is average. Whereas, 7% of employees opined that it is poor.

8. EMPLOYEES OPINION ON RELATIONSHIP WITH MANAGEMENT

S.No 1 2 3 4

Item of scale Excellent Good Average Poor Total

No.of Respondents 15 49 38 8 110

Percentage 14 45 34 7 100

85

Employees opinion on Relationship With Management

7%

14%

Excellent 34% Good Average Poor 45%

Interpretation

The table shows that 45% of employees said that the relations are good whereas, 14% of employees stated that the relations are excellent. 34% of employees opined that they are average. However, 7% of employees said that the relations with management are poor.

9. EMPLOYEES KNOWLEDGE ON WAGE AGREEMENT

S.No 1 2 3

Item of scale Yes No Not completely Total

No.of Respondents 83 7 20 110

Percentage 76 6 18 100

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Employees Knowledge On Wage Agreement

18%

6%

Yes No Not completely

76%

Interpretation

From the above table it is observed that 60% of the respondents said that they know about the wage agreement and its provisions.. 6% of the respondents said that they dont know the agreement details. 1% of employees remained are know but not completely.

10. EMPLOYEES SATISFACTION ABOUT THEIR SALARIES

S.No 1 2 3

Item of scale More Satisfied Satisfied Unsatisfied Total

No.of Respondents 33 62 15 110

Percentage 30 57 13 100

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Employees Satisfaction About Their Salaries

13% 30% More Satisfied Satisfied Unsatisfied

57%

Interpretation

The table shows that majority 57% of the employees have the satisfaction regarding the salaries that are given by the company. However, 30% of the respondents were more satisfied with the salaries. The remaining respondents are unsatisfied with the salaries of the company.

11. EMPLOYEES KNOWLEDGE ABOUT THEIR SALARY STRUCTURE

S.No 1 2 3

Item of scale Knowledge No Knowledge Partial Knowledge Total

No.of Respondents 64 12 34 110

Percentage 58 10 32 100

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Employees Knowledge About Their Salary Structure

32% Knowledge No Knowledge 58% 10% Partial Knowledge

Interpretation

The table shows that majority 58% of the employees have the knowledge regarding the salary structure in their organization. However, 10% of the respondents dont have knowledge about their salary structure. The remaining respondents have partial knowledge about their salary structure.

12. EMPLOYEES RESPONSE ON MEDICAL ALLOWANCE S.No 1 2 3 Item of scale More Satisfied Satisfied Unsatisfied Total No.of Respondents 25 73 12 110 Percentage 23 66 11 100

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Employees Response On Medical Allowance

11% 23%

More Satisfied Satisfied Unsatisfied

66%

Interpretation

Incentive is a payment of further remuneration to the workmen depending not upon profit but no extra production. The table shows that majority (23%) of the employees has the more satisfaction and 66% have the satisfaction regarding the medical allowance that is provided by the company. However, 11% of the respondents were unsatisfied with the medical allowance.

13. EMPLOYEES OPINION ABOUT FRINGE BENEFITS

S.No 1 2 3

Item of scale Good Bad No comment

No.of Respondents 85 25 0

Percentage 77 23 0

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Total

110

100

Employees Opinion About Fringe Benefits

0% 23%

Good Bad No comment

77%

Interpretation

From the table it is observed that, 85 respondents representing 77% of the sample said that the Fringe Benefits are good and 25 respondents constituting 23% stated that the Fringe benefits are Bad.

14. EMPLOYEES WILLINGNESS TO GIVE SUGGESTIONS REGARDING TO SALARIES

S.No 1 2 3

Item of scale Yes No No Comment

No.of Respondents 78 32 0

Percentage 70 30 0

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Total

110

100

Employees Willingness To Give Suggestions Regarding To Salaries

0% 30% Yes No No Comment 70%

Interpretation

Above table shows that 70% of the respondents had will to give suggestions regarding to salaries if management offer a chance remaining are dont have will.

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CHAPTER-V

SUMMARY

The Human Resource Department of an organization is very much significant in establishing itself as a brand. The past one year has seen an increasing number of companies focus on creating a unique HR brand for their organization. The scope of Human Resource management is very large and expanded the scope of HR function into the areas as personnel aspect, welfare aspect and individual relations aspect.

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Human Resource management is now regarded as a must for the successful running of a business or industrial enterprise. HRM helps management at enterprise level, industrial level and at societal level.

The basic purpose of wage and salary administration is to establish and maintain an equitable wage and salary structure and maintenance of an equitable labor cost structure. So that satisfaction of employees and employers is maximized and conflicts minimized.

The wage and salary administration concerned with the financial aspects of needs. The needs of the employees so that reward can be individually designed to satisfy some need. Before they do any thing, they look for a reward or pay-off. The reward may be money or promotion, but more likely it will be some pay off a smile acceptance by a peer, receipt of information, as kind word of recognition etc.

According to Beach, wage and salary programs have four major purposes. To recruit persons for a firm To control pay roll costs To satisfy people, to reduce the incidence of quitting, grievances and functions over pay To motive people to perform better

The study has been taken up with the following objectives. To know about the wages and salary administration of the NCS Sugars limited, latchayya peta. To know about the different types of allowances in the NCS sugars limited, latchayya peta. To study about the employees pay structure in the company. To assess the employees perception about the wage and salary structure of the company. To identify the problems, if any, in the wage and salary administration of the company and to make suggestions.

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The data for the study have been collected from primary and secondary sources. As part of primary data, a survey has been conducted on the employees of NCS sugars limited, latchayya peta. A sample of 110 respondents has been selected on the basis of convenience and a structured questionnaire has been administered to them. The responses have tabulated and analyzed with the help of percentages. The secondary data are collected from text books, magazines, company records and websites.

Sugar industry is very important to the Indian National Economy, because of its multiple contributions in the shape of employment and provision of raw materials to other industries.

Sugar is made by some plants to store energy that they dont need straight away, rather like animals make fat. People like sugar for its sweetness and its energy so some of these plants are grown commercially to extract the sugar.

FINDINGS

The following are the findings: The additional cane price given by the NCS sugars limited is good and attracts the farmers NCS sugars limited, latchayya peta, is paid wage and salary according to the wage board

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 NCS sugars limited, latchayya peta management must ensure the employees know and understand about the wage agreement Half of the respondents are satisfied with the receiving the bouns It is observed that majority of the employees 98% are very much satisfied with the salary that they are receiving Majority of the employees opinioned that their job was good, 17% however said that it is average It is found that, majority of the employees are feeling good about the overtime salary. While, 16% of employees felt that it is average, 10% however felt that it is poor. Majority of the employees 79% are feeling good about the house rent allowances that are provided by the company Majority of the employees 81% have the more satisfaction regarding the salary increments rest of the respondents not satisfied It is observed that majority 81% of the employees opined that the increments given are good

SUGGESTIONS

NCS sugars limited management must to say to worked how much percentage to cut their salary under the PF. The management must to essentiate the PF with wages or salaries. NCS sugars limited management asks the opinion of the employees, before the implement the wage agreement
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 NCS sugars limited management should wage settlement with in five days after the month NCS sugars limited management should be increase the payment for VRS of the workers The company follows consolidating wage for the newly recruiting employees. But the salary under the wage board gives job security to the employees.

CONCLUSION

The employees of the NCS sugars Limited area more satisfied with their wages and salaries. The wage and salary structure and employee benefits and service is one of the vital area of personal administration for sound wage and salary policies and programs are essential to maintain, develop, promote and transfer employees and to

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get effective result from them. Wage and salary structure are perhaps the most important single element in the condition of employees. Organizational morale cannot be maintained at high level without a fair equitable and sound remuneration program.

The wages and salary administration in NCS sugars limited is a big task and it is being managed by inviting lot of human resources. The little attention has been devoted to study the internal structure and Human Resource Management policies.

Therefore it is felt that the study relating to wage and salary administration in NCS sugars limited help and understand and analyze the practices. Thus, policies and practices of wage and salary administration should be structured effectively and efficiently.

CHAPTER VI

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Bibliography

Books

P.Subba Rao

Essentials of Human Resource Management

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And Industrial Relations Himalaya Publications New Delhi 3rd and Revised Addition

Micheal Armstrong

Employee Reward Universities Press (India) Ltd.

Websites:

www.indiansugars.com

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