Professional Documents
Culture Documents
INTRODUCTION
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Compensation constitutes the largest part of the employee retention
process. The employees always have high expectations regarding their
compensation packages. Compensation packages vary from industry to
industry. So an attractive compensation package plays a critical role in
retaining the employees.
o Basic wage
Salary and wages represent the level of skill and experience an individual
has. Time to time increase in the salaries and wages of employees should be
done. And this increase should be based on the employees performance and
his contribution to the organization.
Bonus: Bonuses are usually given to the employees at the end of the year or
on a festival.
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stage.
Workers union
In some countries the employee compensation may be negotiated with a
workers union. The workers union will in many cases deal with for example
a minimum wage limit and will not deal with the management team
compensation but instead leave that to the company.
Means of compensation
In a typical modern US corporation, the CEO and other top executives are
paid contractual salary plus contractual bonuses, which usually have some
performance criteria attached depending on the role of the executive. For
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example, the Sales Director's performance related bonus may be based on
incremental turnover; a CEO's could be based on incremental profitability.
with a mixture of cash and shares of the company which are almost always
subject to vesting restrictions. The vesting term refers to the period of time
before the recipient has the right to transfer shares and realize value. Vesting
can be based on time, performance or both. For example a highly paid CEO
would get 1 million in cash, and 1 million in company shares.
Perquisites ("perks")
Other components of an executive compensation package may include such
perks as generous retirement plans, a health insurance, a chauffered
limousine, an executive jet, interest free loans for the purchase of housing,
etc.
Typical compensation
The typical salary in the top of the list is $1 million - $3 million (Immelt).
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The typical top cash bonus is $10 million - $15 million (Henry R.
Silverman). The highest stock bonus is $20 million (Fuld). The highest
option exercise have been in the range of $100 million - $200 million
(Reuben Mark).
Stock options
Supporters of stock options say that they align the self-interest of the CEO
to that of the company, since options are only valuable if the stock price
remains above the option's strike price. Many critics have called for options
to be counted as a corporate expense, which would impact a company's
income statement and make the distribution of options accountable to
shareholders. Detractors of stock options charge that they are granted
excessively. Stock options have also been criticised because they cause a
confBajaj Allianzt of interest in which the CEO artificially raises the current
stock price to cash in stock options at the expense of the long term health of
the company.
Restricted stock
Executives are also compensated with restricted stock, which is stock given
to an executive that cannot be sold until certain conditions are met and has
the same value as the market price of the stock at the time of grant.
Tax issues
Salary is taxable to an individual at a high individual rate. If part of that
income can be converted to capital gain, for example by granting stock
options to executives, a more advantageous tax treatment may be obtained.
1. Incentives and bonus plans need to have clear guidelines to minimize any
confusion. They shouldn't be seen as a guaranteed payment, but instead
should be measured by performance of the individual, team or company. If
end-of-the-year bonuses are given every year regardless of performance,
they no longer serve as a motivating factor; they are expected payments.
Incentives and bonus payments should be reserved for employees who go
above and beyond their everyday performance to help the company exceed
its profitability goals.
2. Understand the costs of a benefit plan before you offer it. Offering
benefits is a nice incentive for employees, but they can be a very costly
burden to the company. So when assessing what benefits to add, consider
not only today's direct costs, but also long-term expenses. Adding and
removing benefits can be very demoralizing to your staff. So don't add
anything you don't plan to continue long term. Of course, unexpected
situations can always arise that may affect your ability to continue offering
a certain benefit, but employees will become disgruntled when benefits are
added and removed frequently.
3. You also need to calculate employer payroll taxes into your overall
payroll budget. Employers incur expenses, such as Social Security and
Medicare tax, unemployment insurance for both state and federal entities,
and workers' compensation insurance.
4. What type of position will the individual hold? Does it best correlate with
direct payment on an hourly or salaried basis or is commission a better
arrangement? Employees in sales-related positions should have commission
as a part of their compensation package. Whether they're 100 percent
commission or some other combination depends on the circumstances.
These types of positions are most successful when their compensation is
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tied to their performance. It's a win-win for both the company and the
employee.
Below are two scenarios wherein two of the problems are identified and the
process of resolving them and changing them into an advantage is
described.
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Organization Profile
A leading insurance firm, that offers insurance and investment products for
the US market. The firm has recruited and trained about 30,000 insurance
agents to interface with customers and sell their products. The firm has done
so, with an aggressive business plan & strategy in place, to achieve a
significant growth over the previous year.
The Challenge
The firm however, has a manual & outdated process to calculate its
commission and incentive payout for its agents, which is resulting in high
operations and administrative costs and also costly errors in terms of wrong
payments made. The inefficiency has also resulted in deep employee dis-
satisfaction and consequently, high attrition. If this wasn't enough, the firm
constantly spends its precious resources on resolving disputes arising of the
discrepancies.
The Strategy
The strategy is to replace the manual process of commission entry and
processing with an automated system, so as to calculate commission and
bonuses more accurately and efficiently. The system would also enable
greater flexibility in terms of applying varying compensation pay structures
across the agent spectrum, which isn't possible currently.
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Automated electronic production and distribution of commission
statements
Now, with the aid of the above benefits, the firm has not only been able to
cut costs and achieve employee satisfaction at the same time, but has also
achieved the target it had laid out for itself.
The above are only a few of the many possibilities & benefits, of
automating the compensation process.
Contact us to know the other benefits that are there, and how these can be
translated to your business.
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The Challenge:
The organization however, had multiple databases of employee information
from which relevant information had to be drawn for the purpose of
compensation & benefits administration. The staff constantly found
themselves, missing out on key employee data, spending enormous amount
of time on gathering and verifying information and at times rewarding the
wrong employee.
The Solution:
The solution here was to create a consolidated compensation data
warehouse, which would gather and enable management of employee
information from multiple sources.
The Results:
The Organization now has all its employee details consolidated into one
database, making it easy to retrieve & validate the required information
whenever needed. It could also retrieve historical records easily.
Besides that, measurement formats were recognized & standardized and the
divisional budget allocation within the overall budget could be decided
according to performance.
Overall, the earlier mistakes made were eliminated and the amount of time
and effort spent on searching, retrieving and validating information were
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reduced significantly, resulting in considerable administrative costs savings.
Also the entire process of allocating budgets division wise was streamlined
and made easy.
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Team-Based Compensation. As many companies introduce team-based
management practices such as self-managed work teams, they begin to offer
team-based pay. Recognizing the importnace of close cooperation and
mutual development in a work group, companies want to encourage
employees to work as a team by offering pay based on the overall
effectiveness of the team.
Performance-Based Compensation. In the traditional sense, pay is
considered entitlement that employees deserve in exchange for showing up
at work and doing well enough to avoid being fired. While base pay is given
to employees regardless of performance, incentives and bonuses are extra
rewards given in appreciation of their extra efforts. Pay-for-performance is a
new movement away from this entitlement concept (Milkovich and
Newman, 1996). A pay-for-performance plan increases even the base pay
so-called merit increasesto reflect how highly employees are rated on a
performance evaluation. Other incentives and bonuses are calculated based
on this new merit pay, resulting in substantially more total dollars for highly
ranked employee performance. Frequently, employees also receive an end-
of-year lump sum bonus that does not build into base pay.
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executives? Justification of such a large sum of compensation is linked to
the company's performance. In fact, a significant portion of executive
compensation results from exercising stock options, which were quite
valuable in the recent "bull" market. And yet ordinary working-class
Americans are outraged by the shocking contrast in pay raises: Annual
executive pay at large companies rose 54 percent in 1996, whereas the pay
raises of most working-class people were in the 3 percent to 5 percent range
during the same period.
An executive compensation package is typically composed of (1) base
salary, (2) annual incentives or bonuses, (3) long-term incentives (e.g., stock
options), (4) executive benefits (e.g., health insurance, life insurance, and
pension plans), and (5) executive perquisites. Considering the high turnover
rate of competent executives, offering a competitive salary is crucial in
attracting the top candidates.
Frequently, annual bonuses play a more important role than base salary in
executive compensations. They are primarily designed to motivate better
performance. In order to underscore the importance of financial
performance, usually measured by the company's stock price, top executives
are offered stock options. Sometimes, exercising stock options yields more
cash benefits to executives than do annual salaries.
In addition to monetary compensation, executives enjoy many different
types of perquisites, commonly called "perks." Such executive perks
include the luxurious office with lush carpets, the executive dining room,
special parking, use of a company airplane, company-paid membership in
high-class country clubs and associations, and executive travel
arrangements. Many companies even offer executives tax-free personal
perks, including such things as free access to company property, free legal
counseling, free home repairs and improvements, and expenses for vacation
homes or boats.
Another perk that became popular recently is the so-called golden parachute
a protection plan for executives in the event that they are forced out of the
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organization. Such severance frequently results from a merger or hostile
take over of the company. The golden parachute provides either a
significant one-time sum to the departing executive or a guaranteed
executive position in the newly merged company.
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CHAPTER 2
REVIEW OF LITERATURE
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The effect of performance-based remuneration has not
yet been sufficiently studied, except for the case where
Haftel and Martin (1993) conducted a survey targeting 48
high-technology companies in the State of Connecticut and
found that both pecuniary compensation and nonpecuniary
compensation (e.g. awards) were effective in increasing the
number of patents. However, they pointed out that payment
of a large amount of compensation over $50,000 was only
effective for small-sized companies including venture
companies, suggesting that many researchers in venture
companies prefer pecuniary compensation. Lach and
Schankerman (2004) analyzed whether the system to pay
university researchers compensation in proportion to royalty
income would increase a universitys total royalty income.
They found that an increase by 1% of the royalty share
for researchers would increase royalty income by 4.5%.
They also found that this effect was produced by two
factors---increased incentives for university researchers and
the flow of researchers who
prefer pecuniary compensation into universities.
Savitsky (1991) conducted a questionnaire survey
targeting 203 US companies, and found that about 91% of
all target companies provided a fixed amount of
compensation for the filing of a patent appBajaj Allianzation,
whereas companies providing compensation for remarkable
inventions and those providing compensation based on
profits only accounted for 15% and 7% respectively. Savitsky
pointed out that in the United States, although the transfer
of employees inventions was effected by a contract
between companies and researchers, performance-based
compensation systems were adopted by only a limited
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number of companies, and this very fact suggested that
performance-based compensation systems might not be
effective. Meier (1998) pointed out that payment of
compensation at the time of transfer of inventions as
required under the German law on employee inventions
would increase costs incurred by companies in obtaining
patents and also produce other adverse effects, such as
disputes between inventors and companies over payment of
compensation, prevention of the exchange of information
among researchers, and researchers tendency to prevent
others from making inventions that would replace their own
invention. Nagaoka (2006) presented problems with
compensation systems, such as uncertainty of inventions,
evaluation risk and costs, and multi-task issues, pointing out
that researcher evaluation systems should basically be
diverse and that limiting the scope of options by law
wasinappropriate.
In an attempt to investigate the effect of performance-
based compensation systems, Harhoff and Hoisl (2004) and
the Institute of Intellectual Property (IIP) (2003) conducted
questionnaire surveys targeting inventors. Harhoff and Hoisl
targeted 3,346 inventors whose inventions had been filed
for patents at the European Patent Office (EPO). In the
survey, 60% of the respondents regarded the German law
on employee inventions as providing R&D incentives,
whereas 30% evaluated the law negatively. Among the
reasons for the negative view, a small amount of
compensation was chosen by the most respondents, at
33.6%, with an opaque calculation method chosen by 32%
and delays in payment by 15.3%, indicating that most
respondents found problems with the amount of
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compensation. The IIP (2003) targeted 2,394 Japanese
inventors in its questionnaire survey. Among the possible
R&D incentives, growth of the companys business,
better evaluation as a researcher, and compensation
ranked first to third, suggesting that pecuniarycompensation
is not the most effective means toincrease R&D work
incentives for inventors.
Inresponse to the question as to whether or not
compensation provides incentives, 60% of the respondents
answered positively whereas 25% answered negatively.
Among the reasons for the negative view, the small
amount of compensation ranked first, followed by delays
in payment. This also suggests, as the survey by Harhoff
and Hoisl (2004) indicates, that most inventors are
dissatisfied with the amount of compensation.
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CHAPTER 3
COMPANY
PROFILE
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BAJAJ ALLIANZ LIFE INSURANCE
Mission
As a responsible, customer focused market leader, we will strive to
understand the insurance needs of the consumers and translate it into
affordable products that deliver value for money.
A Partnership Based on Synergy
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Bajaj Allianz General Insurance offers technical excellence in all areas of
General and Health Insurance as well as Risk Management. This
partnership successfully combines Bajaj Finserv's in-depth understanding of
the local market and extensive distribution network with the global
experience and technical expertise of the Allianz Group. As a registered
Indian Insurance Company and a capital base of Rs. 110 crores, the
company is fully Bajaj Allianzensed to underwrite all lines of general
insurance business including health insurance.
Achievements
Bajaj Allianz has received iAAA rating, from ICRA Limited, an associate of
Moody's Investors Service, for Claims Paying ability. This rating indicates
highest claims paying ability and a fundamentally strong position.
Bajaj Allianz General Insurance has received the prestigious "Business
Leader in General Insurance", award by NDTV Profit Business Leadership
Awards 2008. The company was one of the top three finalists for the year
2007 and 2008 in the General Insurance Company of the Year award by
Asia Insurance Review.
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SHAREHOLDERS & PROMOTERS
Bajaj Finserv Limited Bajaj Finserv Limited has been recently demerged
from Bajaj Auto Limited which is the largest manufacturer of two and three-
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wheelers in India. As a promoter of Bajaj Allianz General Insurance
Company Ltd., Bajaj Finserv Ltd; has the following to offer:-
Vast distribution network through its group companies.
Knowledge of Indian consumers.
Financial strength and stability to support the insurance business.
Features :
Exclusive ULIP that you can buy online.
High allocation of 98% from the start of the poBajaj Allianzy.
100% allocation from 6th poBajaj Allianzy year onwards.
Inbuilt accidental death cover.
Option to select poBajaj Allianzy term of 10/15 or 20 years and
premium paying term of 5 years to poBajaj Allianzy term.
Automatic annual increase in sum assured from 6th poBajaj Allianzy
anniversary to suit your needs.
Choice of 7 investment funds to invest in as per your risk appetite.
Two investment portfolio strategies to manage your investments better;
including the Wheel of Life portfolio strategy, which will help you to
balance and safeguard your investment.
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Make partial withdrawals anytime after five years from the
commencement of the poBajaj Allianzy.
Make top-up premium payment over and above regular premiums.
Change your premium payment term.
Decrease your sum assured.
Change your premium payment frequency.
Get Optional riders to enhance your protection.
Requirements change with time. Keeping in line with changing trends and
new horizons, Bajaj Allianz Life Insurance Co. Ltd presents 'Bajaj Allianz
Money Secure Insurance Plan'.
Presenting an investment plan that provides you the dual advantage of
planning for your financial security and getting the best returns possible for
every rupee you invest. The investment plan is structured to provide you a
secure life cover and guaranteed maturity benefits aligned with our
commitment to give you the best of both worlds.
With Money Secure Insurance Plan, you have the flexibility to:-
Partial withdrawals anytime after five years from the commencement of
the poBajaj Allianzy.
Top-up premium payment over and above regular premiums.
Option to decrease sum assured.
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Option to change premium payment term and alter premium payment
frequency.
Optional riders to enhance your protection.
Key Highlights:
The protection plan offers you key Highlights:-
Get 100% allocation from the 10th poBajaj Allianzy year.
Extra protection with wider accidental cover.
Choice of 7 investment funds to invest in.
Option to select poBajaj Allianzy term of 10, 15 or 20 years and
premium paying term from 7 years to poBajaj Allianzy term.
Automatic annual increase in sum assured from 6th poBajaj Allianzy
anniversary.
Choose between Investor Selectable portfolio strategy and wheel of life
portfolio strategy.
Get maximum flexibility to pay top-up premium and partial withdrawal
any time after 5th poBajaj Allianzy year.
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Smart Insurance Plan III - Systematic Savings ULIP
Key Highlights:- Smart Insurance Plan III by Bajaj Allianz has the
following features:-
Inbuilt Accidental Death cover.
Refund of 100% of the total allocation charge as loyalty addition.
Automatic annual increase in sum assured from 6th poBajaj Allianzy
anniversary to suit your needs.
Option to select poBajaj Allianzy term of 10, 15 or 20 years and
premium payment term from 6 years to poBajaj Allianzy term.
Choice of 7 investment funds to invest in as per your risk appetite.
With Smart Insurance Plan III, you have the flexibility to:-
o Make partial withdrawals anytime after five years.
o Decrease your sum assured.
o Make top-up premium payment.
o Make unlimited free switches.
o Change your premium payment term.
o Change your premium payment frequency.
o Get optional riders which enhance your insurance cover.
o Receive the maturity proceeds as settlement option.
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Max Advantage Insurance Plan
With the stock markets in a flux, you need an investment plan that keeps
your money safe even as it gets you the highest possible returns. The
Bajaj Allianz Max Advantage Insurance Plan gives you the guarantee to
encash your units at maturity, at the highest unit price achieved by the fund
over the 10-year term of your poBajaj Allianzy.*
Invest in the best without risk! Invest in the Bajaj Allianz Max Advantage
Insurance Plan and make sure that once your returns go up, they stay up.
Single Premium
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Your savings mean everything for you secure it now! We, at Bajaj Allianz
understand the value of your money and present a single premium fixed-
term unit-linked insurance plan. So planning for a target amount is made
easy now.
Key Highlights:
Bajaj Allianz Flexi Advantage Insurance Plan provides you with the
following:
Get up-to 18% of single premium as Guaranteed Addition
Choice of 7 investment funds to invest in as per your risk appetite
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Flexibility to pay unlimited top-up premium and make partial
withdrawals
Flexibility to receive the maturity proceeds as settlement option
Flexibility to decrease your sum assured
Systematic switching option to manage your investments better
Optional additional rider benefits to enhance your protection
Wealth Insurance provides you the option to decrease your sum assured.
Systematic switching option to manange your investments better and
optional rider benefits to enhance your protection are also some features of
Wealth Insurance Plan.
Key Highlights Wealth Insurance Plan offers the following key benefits:-
Loyalty addition up to 7% of single premium at the end of the fifth
year. **Conditions Apply.
Option to receive the maturity benefits as settlement option.
Maximum flexibility to pay unlimited top-up premium and make
partial withdrawals. ***Conditions Apply.
Option to decrease your sum assured.
Systematic switching option to manage your investments better.
Optional additional rider benefits to enhance your protection.
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BAJAJ ALLIANZ LIFE INSURANCE FACTS
Bajaj Allianz, one of Indias largest life insurance companies, is a deeply
established life insurance partner of millions of people. It has hundreds of
branches throughout the country to facilitate better financial transaction for
the customers. There are many reasons why the company could thrive in an
accelerated pace even in the midst of the emergence of a number of new
generation insurance companies. Customers are largely benefited by
different services of the company. Customers are free to choose suitable
plans for their background.
InvestGain
SaveCare Economy SP
Life Time Care
Super Saver
CashGain
Child Gain
There are both life insurance plans and health insurance plans which operate
with multifaceted facilities to all customers. Various Pension Plans and
Women Insurance Plans have also proved to be beneficial for customers.
Under pension plans, a number of options are available which help
customers to select the most appropriate one to meet their requirements.
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Special plans are granted for senior citizens to make their old age happy and
trouble free. Women insurance plans are unique at Bajaj Allianz Life
Insurance because there are investment benefits, savings, retirement
solutions and medical insurance. All special needs of women are met with
beneficial and flexible plans. Other special plans are devised for children
under the name, Childgain Kids Special Plan to concentrate on childrens
educational, professional and medical betterment. Life insurance from Bajaj
Allianz covers almost all sections of people. There are Individual Plans,
Group Insurance Schemes and Special Insurance PoBajaj Allianzies for
NRIs. They have the option to select the ideal plan according to their
financial background. All the plans are beneficial with maximum return.
The companys collaboration with the health care industry paved the way
for availing inclusive medical care for the customers. Personal accident
benefits are of high margin. Accidental hospitalization expenses are met by
the company thereby ensuring all aspects of an individuals personal, social
and professional life.
Bajaj Allianz Life Insurance extends its services beyond the expanse of the
Indian Territory. Most of its plans are useful for those who deal with
international transactions. There is a Health-cum- international debit and
ATM card which helps the customers in all their financial dealings.
Collaboration with a number of organizations has facilitated discounts for
many products. The discount is appBajaj Allianzable for airlines, hotels and
restaurants expenses too. Hence, any collaboration with the company is
useful for the customers in one way or other way.
The sudden and stable growth of the company indicates the fact that all
plans are useful for the customers. Cooperation is the key word at Bajaj
Allianz. Effective customer care service assists customers to know more
about different insurance plans.
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CHAPTER 4
PURPOSE & NEED OF THE STUDY
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4.1 PURPOSE OF THE STUDY
The study has attempted to accomplish several purposed by the
examination of the concept of using employee compensation system in the
organisation.
Compensation and Reward system plays vital role in a business
organization. Since, among four Ms, i.e. Men, Material, Machine and
Money, Men has been most important factor, it is impossible to imagine a
business process without Men.
Every factor contributes to the process of production/business. It expects
return from the business process such as rent is the return expected by the
landlord, capitalist expects interest and organizer i.e. entrepreneur expects
profits. Similarly the labour expects wages from the process.
Labour plays vital role in bringing about the process of
production/business in motion. The other factors being human, has
expectations, emotions, ambitions and egos.
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o Help management in complying with the various labor acts. Such
system should also solve disputes between the employee union and
management.
o Follow the management principle of equal pay. It should motivate and
encouragement those who perform better and should provide
opportunities for those who wish to excel.
o Sound Compensation/Reward System brings peace in the relationship
of employer and employees. It aims at creating a healthy competition
among them and encourages employees to work hard and efficiently.
o Retain the best talent by providing them adequate compensation
thereby stopping them from switching over to another job. The business
organization can think of expansion and growth if it has the support of
skillful, talented and happy workforce.
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CHAPTER 5
RESEARCH OBJECTIVES
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The current research was aimed at determining the role of
compensation system in Human Resource with respect to Bajaj Allianz,
Chandigarh. The research was focused on the following major issues.
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CHAPTER 6
RESEARCH METHODOLOGY
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Research Plan
The research study is exploratory in nature. The established objectives were
kept in mind during the study, however no hypothesis was formed as the
study was more in the form of descriptive design attempting to analyze the
attitude of respondents towards the project.
Literature Survey:
In order to be familiar with the topic and to know the views of various
experts of marketing, a literature survey done. The intention behind this will
to get full knowledge about the topic.
Data Collection:
The Core finding of the study was based upon the information collected
through primary data i.e. information was collected from respondent with
the help of structured questionnaire.
Measurement Technique:
A structured questionnaire was administrated for the purpose of obtaining
information from the respondents. Much care been taken to put the related
to the subject, the questionnaire will contain closed ended logical questions.
a) Primary Data
The Primary Data was gathered through the direct personal interviews with
technical and as well as marketing persons of the concerns.
b) Secondary Data
Secondary Data was gathered from books and journals on performance
appraisal in Bajaj Allianz, Chandigarh.
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c) Sample Size
Due to time and resources shortage only 50 Samples had taken.
50 Employees
Measurement Technique:
A structured questionnaire is administrated for the purpose of obtaining
information from the respondents. Much care was taken to put the related to
the subject. the questionnaire contains closed ended logical questions.
Sample Plan
Universe:
The universe of the study was Chandigarh City of Punjab. Reasons for
choosing this particular city as universe for the study are:
1. One of the major cities of Punjab and hence almost all the Bajaj Allianz
and private sector players are present in the market.
2. Competition is seen tough in the market.
Sample Size:
The sample consists of Bajaj Allianz, Chandigarh. And on whole 50
Employees was taken for the survey.
Sampling procedure:
In the study the sample was chosen on the basis of Random Sampling as
well as convenience sample.
Contact Method:
The respondents sampling personally and a structured questionnaire was got
filled from them a report questionnaire was prepared to interview the
customer.
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CHAPTER 7
DATA INTERPRETATION & ANALYSIS
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SECTION - A
Sex:
Male 31
Female 19
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Age:
Upto 20 years 3
20 30 years 13
30 40 years 16
Above 40 years 18
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Marital status:
Married 37
Unmarried 13
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Educational qualification:
Senior Secondary 2
Higher Secondary 4
Diploma 15
UG 21
PG 8
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Department:
Front Desk 1
HR 9
Control Process 12
Agent 19
Others 9
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Year of service:
Upto 2 years 3
2 -6 years 10
6 -10 years 15
Above 10 years 22
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Monthly Income: (in Rs.)
Below 10,000 3
10,000 -15,000 7
15,000 20,000 17
above 20,000 23
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Sec-B
1. Has the compensation system proved to be effective in order to retain
company employees?
No. of
Options respondents %age
no, not at all 7 14
yes, but only in a 19 38
short term
yes, definitely 24 48
Total 50 100
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2. What changes has taken place in the number of the given employee
responsibilities due to the implementation of the compensation system?
No. of
Options respondents %age
increased 19 38
there has been no 21 42
change
decreased 4 8
there are no data 6 12
Total 50 100
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3. What changes have taken place in the distribution of the employee
responsibilities due to the implementation of the compensation system?
No. of
Options respondents %age
Increased 12 24
there has been no 23 46
change
Decreased 6 12
there are no data 9 18
Total 50 100
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4. Has there been any change in the number of claims for settling
damage through recent years?
No. of
Options respondents %age
increased 15 30
there has been no 21 42
change
decreased 9 18
there are no data 5 10
Total 22 100
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5. The retirement benefits given by my organization are satisfactory.
No. of
Options respondents %age
StronglyAgreed 11 22
Agreed 14 28
Neutral 18 36
Disagreed 3 6
Strongly 8
Disagreed 4
Total 50 100
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6. Organization has good poBajaj Allianzy for loans for different
purposes
No. of
Options respondents %age
StronglyAgreed 11 22
Agreed 12 24
Neutral 17 34
Disagreed 7 14
Strongly 6
Disagreed 3
Total 50 100
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7. The Promotion and growth poBajaj Allianzy provided to the
employee by the organization is good in terms of wages and salary
No. of
Options respondents %age
StronglyAgreed 17 34
Agreed 18 36
Neutral 10 20
Disagreed 3 6
Strongly 4
Disagreed 2
Total 50 100
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8. Are the owners are actively involved in the day-to-day management
of the company?
No. of
Options respondents %age
StronglyAgreed 23 46
Agreed 14 28
Neutral 10 20
Disagreed 2 4
Strongly 1 2
Disagreed
Total 50 100
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9. Are safety meetings are held with employees at least quarterly?
No. of
Options respondents %age
StronglyAgreed 26 52
Agreed 11 22
Neutral 9 18
Disagreed 3 6
Strongly 1 2
Disagreed
Total 50 100
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10. Are you fairly satisfied with the level of overall compensation.
No. of
Options respondents %age
StronglyAgreed 31 62
Agreed 9 18
Neutral 7 14
Disagreed 2 4
Strongly 1 2
Disagreed
Total 50 100
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CHAPTER 8
FINDINGS & CONCLUSIONS
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8.1 FINDINGS
According to 50 employees of BAJAJ ALLIANZ , 48% proved that
compensation system is effective to retain the employees, 38% are in
favor but for short term. And 14% are not in favour.
According to 50 BAJAJ ALLIANZ employees, regarding the
implementation of compensation system, 12 % responded that there is
no data available, 8% responded that there is decrease, 42% responded
that there has been no change and 38% responded that there is an
increase in the responsibilities due to the implementation of
compensation system.
According to 50 BAJAJ ALLIANZ employees, 24% responded that
changes have taken place in the distribution of the employee
responsibilities due to the implementation of the compensation system,
46% responded there has been no change, 12% responded decreased,
18% responded that there is no data.
According to 50 BAJAJ ALLIANZ employees, 30% responded that
there has been any change in the number of claims for setting damage
through recent years, 42% responded there has been no change, 18%
responded decreased, 10% responded that there is no data.
According to the graph 22% says they are strongly agree that retirement
benefits given by my organization are satisfactory, 28% says that they
agree that retirement benefits given by my organization are satisfactory,
36% says that they are neutral that retirement benefits given by my
organization are satisfactory, 6% says that they are disagree that
retirement benefits given by my organization are satisfactory, and rest
8% says that they strongly Disagree that retirement benefits given by
my organization are satisfactory.
According to the graph 22% says they are strongly agree, 24% says that
they agree, 34% says that they are neutral, 14% says that they are
disagree, and rest 6% says that they strongly Disagree that organization
has good poBajaj Allianzy for loans for different purposes.
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According to the graph 34% says they are strongly agree, 36% says that
they agree, 20% says that they are neutral, 6% says that they are
disagree, and rest 4% says that they strongly Disagree that the
Promotion and growth poBajaj Allianzy provided to the employee by
the organization is good.
According to 50 employees of BAJAJ ALLIANZ , 46% are strongly
agreed that owners are actively involved in day-to-day management of
the company, 28% are agreed, 20 are neutral, 4% are disagreed and rest
2% are strongly disagreed.
According to 50 employees of BAJAJ ALLIANZ , 52% are strongly
agreed that safety meetings are held with employees at least quarterly,
22% are agreed, 18% are neutral, 6% are disagreed and 2% are strongly
disagreed.
According to 50 employees of BAJAJ ALLIANZ , 62% are strongly
agreed that they are fairly satisfied with the level of overall
compensation, 18% are agreed, 14% are neutral, 4% are disagreed and
rest 2% are strongly disagreed.
8.2 CONCLUSION
Compensation and Reward system plays vital role in a business
organization. Since, among four Ms, i.e. Men, Material, Machine and
Money, Men has been most important factor, it is impossible to imagine a
business process without Men. Every factor contributes to the process of
production/business. It expects return from the business process such as rent
is the return expected by the landlord, capitalist expects interest and
organizer i.e. entrepreneur expects profits. Similarly the labour expects
wages from the process.
o It will enhance the process of job evaluation. It will also help in setting
up an ideal job evaluation and the set standards would be more realistic
and achievable.
o Such a system should be well defined and uniform. It will be apply to
all the levels of the organization as a general system.
o The system should be simple and flexible so that every employee
would be able to compute his own compensation receivable.
o It should be easy to implement, should not result in exploitation of
workers.
o It will raise the morale, efficiency and cooperation among the workers.
It, being just and fair would provide satisfaction to the workers.
o Such system would help management in complying with the various
labor acts.
o Such system should also solve disputes between the employee union
and management.
o The system should follow the management principle of equal pay.
o It should motivate and encouragement those who perform better and
should provide opportunities for those who wish to excel.
o Sound Compensation/Reward System brings peace in the relationship
of employer and employees.
o It aims at creating a healthy competition among them and encourages
employees to work hard and efficiently.
o The system provides growth and advancement opportunities to the
deserving employees.
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o The perfect compensation system provides platform for happy and
satisfied workforce. This minimizes the labour turnover. The
organization enjoys the stability.
o The organization is able to retain the best talent by providing them
adequate compensation thereby stopping them from switching over to
another job.
o The business organization can think of expansion and growth if it has
the support of skillful, talented and happy workforce.
o The sound compensation system is hallmark of organizations success
and prosperity. The success and stability of organization is measured
with pay-package it provides to its employees.
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CHAPTER 9
SUGGESTIONS
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SUGGESTIONS
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o The organization is able to retain the best talent by providing them
adequate compensation thereby stopping them from switching over to
another job. The business organization can think of expansion and
growth if it has the support of skillful, talented and happy workforce.
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LIMITATIONS
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LIMITATIONS
Thisstudytooissubjecttocertainlimitations,justlikeanyotherstudy
wouldbe.Thelimitationsarementionedbelow,sothatthefindingsofthe
presentstudycanbeperceivedintheircorrectperspective:
concentratedtoBajajAllianz,Chandigarhonly.
2. Theselectionofrespondentswasbasedontheconvenience;itmight
notbetruerepresentativeofentireuniverse.
3. Although almost care has been taken to get accurate results, yet
becauseoftheriskofambiguitiesandmisinterpretationonthepartof
theresponds,someelementofinaccuracymighthavecreptin.
couldntberuledoutinresearchstudy.
5. Notalltherespondentswerealwaysforthcomingwiththeirviewon
certainquestions.
6. Therespondentsmightnothaverespondedtruly,astheymaynot
wanttodisclosetheexactinformation.
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BIBLIOGRAPHY
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BIBLIOGRAPHY
INTERNET RESOURCES
http://dirweb.state.nv.us/wcs/handouts/engqa.pdf
http://payroll.naukrihub.com/compensation/importance-of-
compensation.html
http://www.citehr.com/12978-compensation-system.html
http://www.entrepreneur.com/money/moneymanagement/financialmana
gementcolumnistpamnewman/article183864.html
http://retention.naukrihub.com/compensation.html
http://business.gov.in/manage_business/compensation.php
http://www.enotes.com/business-finance-encyclopedia/employee-
compensation
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ANNEXURE
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ANNEXURE: QUESTIONNAIRE
SECTION - A
1) Name ( optional ):
2) Sex :
Male Female
3) Age :
Upto 20 years 20 30 years 30 40 years above 40 years
4) Marital status :
Married Unmarried
5) Educational qualification :
Senior Secondary Higher Secondary Diploma UG
PG
6) Department :
Front Desk HR IT Accounts Others
7) Year of service :
Upto 2 years 2 -6 years 6 -10 years above 10 years
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SECTION - B
2. What changes has taken place in the number of the given employee
responsibilities due to the implementation of the compensation system?
increased there has been no change
decreased there are no data
4. Has there been any change in the number of claims for settling
damage through recent years?
increased there has been no change
decreased there are no data
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Neutral Disagree
Strongly Disagree
7. The Promotion and growth poBajaj Allianzy provided to the
employee by the organization is good in terms of wages and salary
75 | P a g e
11. Are there any significant operational changes planned for the next
12 months?
12. Are you fairly satisfied with the level of overall compensation.
Strongly Agree Agree
Neutral Disagree
Strongly Disagree
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EMPLOYEES
Employee Name designation cadre date DOB
no
179755 Mr. Muni AO 3/7/2009 12/5/1966
lal verma
153132 Neelam AO 28/4/05 15/06/1962
rana
188306 Narender AO 23/5/2008 30/4/1964
verma
188316 Sunil sood AO 6/5/2008 5/1/1965
188350 Vandana AO 4/5/2009 11/7/1966
sood
188342 Parveen AO 17/6/2010 4/7/1967
sood
180155 Sushila negi AO 6/5/2008 20/10/191967
167863 Rekha AO 4/5/2009 19/9/1968
verma
184168 Sapna gupta AO 18/5/2011 7/10/1970
188343 Balak ram AO 6/5/2009 21/2/1964
179762 Manohar AO 18/5/2004 15/7/1967
sharma
185336 Ashwani AO 5/5/2004 15/7/1960
dogra
179855 Dinesh AO 16/5/2005 1/6/1972
sharma
183967 Rajesh AAO 14/5/2012 4/8/1968
kumar
189457 Mohan lal AAO 14/5/2012 1/6/1957
179759 Sanjay AO 5/8/2010 14/11/1964
sharma
188389 Pratap singh AAO 21/5/2012 10/8/1967
verma
185162 Meenu AAO 18/5/2012 1/3/1967
khanna
188312 Jagat ram AO 26/8/2008 4/4/1967
185147 Anu razdan AO 18/5/2011 4/9/1968
188355 Neelam AAO 2/1/2009 27/10/1965
sharma
189031 Roop AAO 23/9/2006 3/8/1961
kanwar
188339 Ramesh AAO 26/9/2007 25/4/1964
chand
182058 Sanju uppal AAO 26/9/2007 10/9/1967
188383 Shakuntla AAO 12/1/2010 26/11/1968
chauhan
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189029 Sanjay AAO 9/10/2006 3/3/1965
gupta
184166 Balbir AAO 13/9/2006 23/6/1969
kumar
186037 Man chand AAO 11/9/2009 25/4/1966
183111 Bd sharma AAO 1/9/2009 7/2/1960
188406 Ramesh AAO 11/9/2009 2/5/1969
kumar
tanwar
180156 Bhagat ram AAO 11/9/2009 8/2/1966
186043 Mohinder AAO 11/9/2009 15/7/1967
singh
155152 Gian chand AAO 13/9/2008 16/6/1966
179764 Sandhya AAO 1/9/2008 26/6/1964
malhotra
184171 Birender AAO 3/1/2007 20/7/1969
jaret
188010 Paritosh AAO 20/12/2010 5/10/1983
yadav
185142 Jatima AAO 21/10/2010 2/4/1965
quureshi
184180 Rajeev AAO 26/12/2011 18/6/1967
kumar
chaudhary
182060 Rajesh AAO 31/12/2011 8/2/1968
kumar
bhatol
188380 Annu AAO 11/9/2009 17/1/1967
600195 Shrutika AAO 22/1/2012 19/9/1986
jain
183970 Prem chand AAO 14/9/2009 15/5/1965
sharma
179770 Lalita AAO 11/9/2009 29/12/1963
punam
chauhan
183123 Sumitra AAO 16/9/2010 5/8/1960
devi
188381 Hema AAO 21/1/2012 29/11/1969
adhikari
189028 Anju bala AAO 13/9/2010 10/4/1968
sharma
186047 Lekhpal AAO 30/6/2009 15/6/1971
singh
185146 Sudha AAO 1/9/2008 3/8/1966
sanjeev
139308 Pradeep AAO 6/1/2012 18/11/1974
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dhoundiyal
180164 Dhanna lal AAO 11/9/2009 6/3/1967
thakur
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