Professional Documents
Culture Documents
2/10
A Report on
Compensation Management Comparison Of Trading Corporation of Pakistan Pvt Ltd. & Dewan Farooq Motors Company Ltd.
Submitted to
Mr Asad Hussan
Submitted by
Executive Summary
The report contains analysis of compensation structure being followed by two different companies (i-e Trading Corporation of Pakistan Pvt Ltd & Dewan Farooq Motors Company).The Primary research is conducted by visiting booth the companies and met their representative to collect the data. After compiling the data it is observed that both companies are not following internationally acceptable compensation structure. They need to improve it, in order to avoid de motivation factor among the employees.
Table of Contents
1. Objective
Page 4
Page 4
3. Basic scale.
Page 5
4. Allowances
Page 5
Page 6
8. Conclusion ..
Page 8
1. Objective
a. Trading Corporation of Pakistan Pvt Ltd. To provide for a uniform, stable and reasonably competitive compensation structure for all employees that is comparable to other corporation of Government of Pakistan. b. Dewan Farooq Motors Company Ltd. To find out the structure of compensation management being provided to all employees of the company and compare it to similar organogram, size and line of operations. c. The purpose to select two different sector (i-e Govt Corporation & Private Ltd.) companies was to find out the difference in the compensation of similar turnover and size of companies.
Designation CEO Director General Manager Deputy General Manager Manager Deputy Manager Assistant Manager Executive Jr. Executive Assistant
3. Basic Scale
a. Trading Corporation of Pakistan Pvt Ltd. Designation Chairman Director General Manager Manager Deputy Manager Assistant Manager Assistant Basic salary (Starting-Yearly Increment-Ending) 28660-1102-61720 27910-1032-58870 21210-972-50370 15540-920-43440 11100-740-33300 7780-460-14680-(530-25810) 5840-355-11165-(425-20000) Personal pay
b. Dewan Farooq Motors Company Ltd. Basic salary Designation CEO/Owner Director General Manager Deputy General Manager Manager Deputy Manager Assistant Manager Executive (Starting-Ending) 257870-451420 128838-225612 48194-96580 28838-48194 20451-32064 9483-22388 7548-9483 Personal pay
Comments on basic salary: Overlapping exist in TCP pay structure where as Dewan Farooq Motors has very less overlapping only at lower level which shows discrimination and violating internal equity.
4. Allowances
a. Trading Corporation of Pakistan Pvt Ltd. a. House Rent b. Conveyance Allowance c. Entertainment Allowance
d. e. f. g. h.
Car Maintenance Allowance Children Education Allowance TA/DA Lunch subsidy Leave encashment
b. Dewan Farooq Motors Company Ltd. a. b. c. d. House Rent Conveyance Allowance Leave Encashment Leave Fair Assistance
b. Dewan Farooq Motors Company Ltd. a. b. c. d. e. f. Car Policy Fuel Entitlements Leave Mobile subscription Medical (Inpatient) (self + Spouse + 2 children) OPD (Fix Amount)
6. Terminal Benefits
a. Trading Corporation of Pakistan Pvt Ltd. a. b. c. d. PF (Participatory) Gratuity (1 Gross) EOBI Long Service Award
250,000 2000 2,000 19,544 175 *66=11550 15000 approx 3,000 5000 54,094 16110 2 basic (322194/12)=26850 42,960 2,677 2,677 3,51,731
Cost Total Annual Employment Cost Total Monthly Cash Compensation Total Value of Non-Cash Comp/Benefits Average Monthly Cash Component 2,883,276 80,692 159,581 0.33 4,220,772 349,054 2,677 0.99
Company Size No of Employees Experience Supervision Responsibility Qualification Prestige Cash discount at PIA and PR
Medium More then 600 11 Years 75 plus Bachelors Regarded as VIPs of GoP 50 % discount for personal travel
Medium More then 600 42 Years 50 plus Masters plus specialized courses Personal N/A
8. Conclusion After analyzing the compensation structure it is observed that TCP is providing more in term of non cash benefits on other hand Dewan Farooq motors is paying 99 % cash to its employees. Both of them needs to maintain an optimum ratio between cash to non cash components in order to attract & retain their employees.