A Project report On Preparation of Compensation Submitted to JRE School of Management, Greater Noida In Videocon Industries limited, Gurgaon.

2011-2013
Prepared By Akanksha Sharma PGDM- III trimester 2011-2013

Guided By Mr.Nitin Saluke & Mr. Sachin Batra (Faculty Mentor) Mr. Amol Mandlik (Company Mentor)

A Project report On Preparation of Compensation Submitted to JRE School of Management, Greater Noida In Videocon Industries limited, Gurgaon.

2011-2013
Prepared By Akanksha Sharma PGDM- III trimester 2011-2013

Guided By Mr.Nitin Saluke & Mr. Sachin Batra (Faculty Mentor) Mr. Amol Mandlik (Company Mentor)

CERTIFICATE

This is to certify that this is the bonafide Project Work done by AKANKSHA SHARMA on Preparation of Operation at Videocon industries limited, of 3rd trimester in JRE School of management, Greater Noida-201308 , during the year 2012. She has worked under our guidance and direction and completed her project work successfully.

Project Guide Mr. Amol Mandlik Head HR operations Date:

Place: Gurgaon

DECLARATION

I hereby declare that the Project report entitled as Preparation of Compensation Manual submitted for the partial fulfillment of PGDM in JRE School of management, Greater Noida is my original work and carried out by me under the guidance and supervision of Mr. Amol Mandlik Head of HR Operations at Videocon Industries Limited, Gurgaon . The information has been collected from genuine & authentic sources.

Place: Gurgaon

Date: By Akanksha Sharma PGDM (2012-13)

ACKNOWLEDGEMENT
First and Foremost, I thank Almighty for enabling and encouraging me to continue my PGDM course under The Director, JRE School of Management, Greater Noida.

I also express my heartful gratitude to PROF. Pawan Gupta, Miss Mahnaz, Mr. Sachin Batra and Mr. Nitin Saluke my mentors and CRC coordinators for their constant encouragement and help throughout the course.

Words cannot express my gratitude and indebtedness to my guide and Company mentor Mr.Amol Mandlik, Head of HR Operations; Videocon Industries Limited. Thanks go to his constant help and encouragement from the Selection of the Topic and the development of the thesis from Chapter to Chapter.

My heartful and sincere thanks to Mr. Yuvraj Shrivatava (HR Head) who was kind enough in permitting me to do my project. Special thanks to Mr. Harish Kohli for constantly guiding and giving his precious time to me. I would like to thank my parents, brother, for their invaluable support and help even though could never thank them enough.

AKANKSHA SHARMA

EXECUTIVE SUMMARY
This Compensation Manual is a handbook developed by me for Videocon Industries Limited to assist managers and new employees with an overview of human resources information to better understand the components of compensation and choices available when reviewing policies and practices for employing and retaining workers. Managers have come to consider compensation as a key factor in their organizations competitiveness in attracting, recruiting and reducing staff turnover. Employee compensation which covers all forms of pay or rewards has become more complex in recent years and since compensation comprises the largest expense for most organizations it is important for managers to understand how to effectively manage compensation related activities. Compensation will only have the desired impact on attitude and behavior when employees understand the pay and the benefit options that apply to them, and the associated policies and procedures. Well thought out compensation communication increases morale and employee satisfaction with their organization and decreases turnover. This compensation manual is basically prepared to give a clear outline to all employees about their salary structure and the financial benefits for which they are entitled. It outlines useful modes of communication along with feedback mechanisms to ensure that information is well understood, as well as pointing out some of the barriers to effective communication on compensation. HR operation manual is a important document to the organization. It comprises of all the task which are covered under Operation department, formulated nicely to give information about the

working and procedures of this department. So that new employee can easily understand these aspects and working can be started immediately in case there is no time for orientation and induction. This way this document finds its costumer to those who are newly employed to the operation department. File updation is important task to be done by HR operations for each and every employee. Every employee has to fill some documents at the joining which are kept as record in file. These file are numbered according to the SAP code and file numbers. Each employee has its separate employee code, which help to maintain their record systematically. These records are updated accordingly as the new documents are required. These records are also maintained online at VG portal which are required to be filled by employee at the time of joining. Likewise records are maintained two ways which helps in keeping track of employees personal details, mediclaim, PF and Gratuity etc. Besides this, mediclaim as a benefit is very important in retaining and motivating the employees in a firm. It serve as a part of the benefit, for which formality is done at the time of joining, this claim cover the parents, two children and spouse of employee. Videocon has included many network hospitals at which employee can avail the benefit as cashless as well as in cash. Bills are required to be submitted at the end of year to claim the benefit, in case if bills are not produced it will be taken as taxable benefit. Videocon has made its tie-up with Alankit as TPA. Document named as Mediclaim insurance will be taken as a internal document which will give detail about the mediclaim policy and also includes some FAQs which will give a clear idea about the benefits which will be covered under it.

INDEX Content
Company Profile Research Methodology Introduction to project Compensation manual Operation manual Mediclaim insurance findings Recommendations Bibliography Annexure

Page no.
9-20 20-26 27-36 37-54 55- 75 76-79 80-81 82-83 84-85 86

INTRODUCTION COMPANY PROFILE

HISTORY

Introduction:
The Videocon group is emerges as a USD 2.5 Billion global conglomerate continuing to set trends in every sphere of its activities from a conference room sized assembly line in 1979. Videocon is an Indian multinational with interests in Consumer Electronics, Home Appliances, Color Picture Tube Glass, and Oil &Gas. Videocon was founded in 1987 by Nandlal Madhavlal Dhoot. At that time it used to manufacture TV and Washing Machine. In 1989-90, Videocon started manufacturing Home Entertainment Systems, Electric Motors & AC. Videocon entered Refrigerators and coolers segment in 1991. In 1995, Videocon started manufacturing Glass shells for CRT and in 1996 it ventured into Kitchen appliances and crude oil segment. In 1998, Videocon started manufacturing Compressors & Compressor Motors. In the year 2000, Videocon took over Philips Color TV Plant. In 2005, Videocon took over 3 plants of Electrolux India and acquired Thomson CPT. Today , it has evolved into a giant conglomerate with annual revenues of over U$4.1 billion.

Vision & Mission

Videocons mission expression has been crafted to envelope both extant and emerging realities: To delight and deliver beyond expectation through ingenious strategy, intrepid entrepreneurship, improved technology, innovative products, insightful marketing and inspired thinking about the future.

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Board of Directors:Mr. Venugopal N Dhoot Mr. Pradipkumar N Dhoot Mr. K C Srivastava Mr. Satyapal Talwar Mr. S Padmanabhan Maj. Gen. S C N Jatar Mr. A. G. Joshi Mr. Radhey Shyam Agarwal Mr. Girish Nayak - ICICI Bank Limited

Promoters of Videocon GroupMr. Venugopal Dhoot Mr. Rajkumar Dhoot Mr. Pradeep Dhoot Mr. Anirudh Dhoot Mr. Sourabh Dhoot

Product / services of Company Home Appliances Office Automation Mobile Phones Wireless Internet Petroleum Satellite Power

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Today the group operates through key sectors:

Consumer Durables

Thomson CPT

CRT Glass

Oil & Gas

Media

Moblies

Consumer Electronics, Home Appliances & Compressor manufacturing in India We enjoy a pre-eminent position in terms of sales and customer satisfaction in many of our consumer products like Color Televisions, Washing Machines, Air Conditioners, Refrigerators, Microwave ovens and many other home appliances, selling them through a Multi-Brand strategy with the largest sales and service network in India. Refrigerator manufacturing is further supported by our in-house compressor manufacturing technology in Bangalore.

Display industry and its components With the Thomson acquisition Videocon has emerged as one of the largest Color Picture tube manufacturers in the world operating in Mexico, Italy, Poland and China, continuing to lead through new innovative technologies like slim CPT, extra slim CPT and High Definition 16:9 format CPT.

Color Picture Tube Glass Videocon is one of the largest CPT Glass manufacturers in the world with a high level of
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experience and technical expertise operating through Poland and India. Videocon will leverage on this synergy after the Thomson acquisition to internally source glass for its CPT manufacturing increasing efficiencies and lowering costs. Oil and Gas An important asset for the group is its Ravva oil field with one of the lowest operating costs in the world producing 50,000 barrels of oil per day. The group has ambitious plans for expansion in this sector globally.

Competitors of Videocon Sony LG Onida Samsung Whirlpool

Marketing Strategy of Videocon

Above the line promotion Advertising on TV, print media, word of mouth, dealer recommendations The company organizes many events to promote the products like youth awards, celebritys night. Brand ambassadors like Shahrukh khan and MS Dhoni are being roped in to promote the products Below the line promotion Scratch cards, discount coupons, gift with purchase of product, money back offers, on the spot
cash discounts exchange offers, festive discounts.

Free service camps and promotional campaigns should be organized to target specific areas

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SWOT analysis of Company

Strengths Backward integration. Diversified goods portfolio across Consumer Durables Sector. Multi brand strategy. Global company.

Weakness Image of low to medium cost company. Diversification into too many sectors. Not much international recognition. Too much rebranding/ changing of positioning. Weak sales and service network.

Opportunities India is big consumer durables market and growing at 10 to 15%. Lifestyle of people has been change very much so there is demand for premium products. consumer durable market will become $158 billion by 2015. Overall number of rural households estimated to grow in coming years.

Threats Stiff competition from MNCs like LG, Samsung, and SONY. Cheaply available of Chinese products. Virtually not able to establish the products for online sales and marketing. Local brands available in the market.

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Future Plan To strengthen and maintain & its leadership status, the Videocon group has clearly charted out its course for the future. Aggressive development is in full swing at the R & D Centers to bring out state-of-the-art technologies including True Flat, Slim, Extra Slim, Plasma & LCDs, at the earliest.

Cost rationalization processes - are in various stages - including rationalizing factories in Europe, increasing automation and improvement of efficiency in China, accessing glass shells from India for international CPT facilities and a lot more - are in various stages of implementation.

Internationally all existing client relationships are being strengthened. The cost competitiveness and increase in capacity in Poland has opened up big opportunities in the OEM business. Last but not the least, in the domestic market consolidation with multiple brands paves the way
for an unassailable lead in the market.

In the Oil & Gas business, having all the basic operator capabilities of a prospecting entity, the group is looking to add more explorations and production depth as also oil bearing assets. The group will also get into gas distribution in India significantly.

Corporate Governance The Company\'s philosophy on corporate governance enshrines the goal of achieving the highest levels of transparency, accountability and equity in all spheres of its operations and in all its dealing with the shareholders, employees, the government and other parties. The company believes in the philosophy on code of corporate governance, which provides a structure by which the rights and responsibility of different constituents, such as the board, employees and shareholders are carved out. In carrying out this, it is ensured that the Company\'s objectives are well defined and performance against those objectives are adequately measured and monitored. Corporate governance is considered as an important tool for shareholders protection and maximization of their long-term values. The cardinal principal such as accountability, responsibility, transparency and fair disclosure serve as the means for achieving this.
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CSR activities of Videocon Hospital In the memory of founder, Videocon runs a world class hospital with the latest equipment, MRI, CT scan machines run by dedicated doctors specializing in Cancer and heart surgery. The Hospital is 100% charitable. Charities: The blood donation camp is arranged at DHOOT Hospital blood Bank. Environment: The company consistently pursues reduction in energy consumption in its manufacturing process on an ongoing basis. Cricket: The Videocon School of cricket was launched in Kolkata to train bubbling talent in the age group of 10 to 17. The academy has been undertaken in cooperation with the captain of the Indian cricket team, Saurav Ganguly, who has been designated Chief Coach. It aims to put 700 students through the paces every year.

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Why Videocon?

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Why Videocon
Videocon has an environment which is

Driven by Performance Strong Value base Empowered Inclusive Diversified Talent base Fun-filled

Creativity and autonomy: An individual's creativity is the basis for value creation. Videocon respects diversity and autonomy, allowing each of its employees to exercise their creativity to the full.

Emphasis on competence: Competence is the basis for performance. Videocon sees competence as the most important factor in its personnel decisions.

Equal opportunities: Equal opportunities build trust among people. Videocon ensures equal opportunities regardless of gender, race, age, religion, or nationality.

Long-term perspective: Maintaining a long-term perspective is the foundation for Videocon's HR policies. VIDEOCON's HR programs are designed with a long-term perspective and implemented with dedication and persistence.

Training: Videocon offers diverse training programs to its employees according to position to encourage learning and development. We do this by equipping them with the professional capabilities and enabling them to apply the latest technologies at work.

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Landmarks for Videocon:

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BCG matrix for Product:

Understanding with the help of model

Star (Appliances)

Question marks (Entertainment)

Cash Cow Oil and Gas division

Dogs Leasing and finance limited

Porters model for company

Threats from New entrants in glass shell (Hotline group

Bargaining power of suppliers

Videocon

Threats from substitution (LCD, plasma tech)

Bargaining power of customer

Threats from competitors (LG, Philips)

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RESEARCH METHODOLOGY

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OBJECTIVES
PRIMARY OBJECTIVE:

To study the procedure of pay roll and prepare the compensation Manual for Videocon Industries Limited

SECONDARY OBJECTIVE:

To study the Mediclaim procedure and prepare the Mediclaim Insurance Policy for Videocon Industries Limited.
To study the whole HR operation and prepare the HR Operation manual for Videocon Industries Limited. To update the documents files of employees in excel sheet.

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Need of project:
Project work performed by me in Videocon Industries Limited is a important in the point of view that it gives the HR operation department three structure document that are Compensation manual prepared with the help of compensation manual of telecommunication, a HR operation manual that gives its procedure a text from for reading and better understanding ,the Mediclaim Insurance manual which help the new employees to understand the facility given by the company and the minimum formality to be performed by the employee in case to claim the benefits. These Operation manual were basically designed for the internal purpose, so that a new joined employee in operation can easily understand the working of the department. Record management is a important task to be done in HR operation which seeks Hard work, attention and punctuality as well. An Excel sheet was prepared by me taking into account the document which have been submitted and those not has been submitted. This record will help in completing the staff files successfully and monitoring them as well.

Scope of the project:

Project is restricted to Videocon industries Limited only all the policy written in the manual is for this company only although many procedures may be similar to other company as well, but this manual is for the internal employees and the new employee that are joining the company. No questionnaire is prepared for this project report, as it was just the texting of all the procedure going in the department. In case of understanding of procedure, help of mentor was taken.

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RESEARCH METHODOLOGY
Research is a common language refers to a search of knowledge. Research is scientific & systematic search for pertinent information on a specific topic, infect research is an art of scientific investigation. Research Methodology is a scientific way to solve research problem. It may be understood as a science of studying how research is dont scientifically. In it we study various steps that are generally adopted by researchers in studying their research problem. It is necessary for researchers to know not only know research method techniques but also technology. The scope of Research Methodology is wider than that of research methods. The research problem consists of series of closely related activities. At times, the first step determines the native of the last step to be undertaken. Why a research has been defined, what data has been collected and what a particular methods have been adopted and a host of similar other questions are usually answered when we talk of research methodology concerning a research problem or study. The project is a study where focus is on the following points:

RESEARCH DESIGN A research design is defined, as the specification of methods and procedures for acquiring the Information needed. It is a plant or organizing framework for doing the study and collecting the data. Designing a research plan requires decisions all the data sources, research approaches, Research instruments, sampling plan and contact methods. Research design is mainly of following types: 1. Exploratory research.
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2. Descriptive studies 3. Casual studies EXPLORATORY RESEARCH The major purposes of exploratory studies are the identification of problems, the more precise Formulation of problems and the formulations of new alternative courses of action. The design of exploratory studies is characterized by a great amount of flexibility and ad-hoc veracity. DESCRIPTIVE STUDIES Descriptive research in contrast to exploratory research is marked by the prior formulation of specific research Questions. The investigator already knows a substantial amount about the

research problem. Perhaps as a Result of an exploratory study, before the project is initiated. Descriptive research is also characterized by a Preplanned and structured design. CASUAL OR EXPERIMENTAL DESIGN A casual design investigates the cause and effect relationships between two or more variables. The hypothesis is tested and the experiment is done. There are following types of casual designs: I. II. III. IV. V. VI. VII. After only design Before after design Before after with control group design Four groups, six studies design After only with control group design. Consumer panel design Exposit facto design

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Period of Study: This study has been carried out for a maximum period of 8 weeks.

Area of study: The study is exclusively done in the area of HR Operation Department of Videocon Industries Limited. It is process which required patience and some knowledge related to HR operation. Type of data used : In case of preparation Compensation manual, Insurance mediclaim ans File updation secondary data was used. For HR operation manual Primary data was used. Data collection Technique: Interview of experience person (Employees of videocon )

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INTRODUCTION OF PROJECT COMPENSATION MANUAL (THEORY)

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A growing realization among not-for-profit organizations and their funders is that human resources performance is a key determinant of organizational effectiveness. As this effectiveness, in turn, depends upon organizations ability to recruit and retain skilled employees, these organizations compensation packages must be externally competitive and internally equitable. And, as complex as compensation is, further complications are budgetary limitations constraining not-for-profits from offering a more generous compensation package. A compensation strategy that is aligned with an organization strategy helps ensure that managers can attract and retain high-quality employees. Designing such a strategy is itself a complex process with numerous decision points and multiple variables to consider. Whether they are developing a compensation package for new or existing positions, it is important for human resources managers to consider their organizations size and complexity, its fiscal capacity and the market rates for jobs requiring similar skills.

What is Compensation?
Compensation is the area of human resources management which involves making decisions about pay that are fair, equitable and competitive with current market rates; providing employees with incentives to improve performance; ensuring that benefits packages are cost effective and serve to motivate employees, and making certain that all compensation-related policies and programs comply with government requirements. The HR Guide to the defines compensation as a systematic approach to providing monetary value to employees in exchange for work performed. Compensation strategy is a set of tools used by management to further the objectives of the organization. It can assist in recruitment, improving job performance, achieving equity, promoting and enhancing job satisfaction, reducing turnover and improving relations with unions. And it can be adapted to changes in organizational needs, goals, and available resources. Extrinsic Rewards are those rewards which are most visible, such as job security or opportunities for promotion. They may be further divided into direct rewards, including cash compensation such as base pay and performance pay and indirect rewards generally classed as non-cash, or benefit items, that protect an employees income or contribute to the employees standard of living. Intrinsic Rewards are derived from the workplace itself and are valued internally by the
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employee. These include opportunities for personal growth, quality of work life, job satisfaction, challenges, personal and professional development opportunities, a sense of belonging, freedom to act, visionary leadership. To sum up, total compensation is the sum of all the direct and indirect compensation elements used by an organization to compensate its employees.

Internal equity and external Competitiveness - determining pay & Benefits

A central feature of a compensation policy is the balance between internal equity and external competitiveness. Employees will perceive their pay to be equitable if it is fair in relation to their peers in the workplace and in other organizations. Internal equity is achieved when compensation programs are applied consistently, horizontally and vertically, across an organization. Maintaining external competitiveness relies on comparative data from competing employers in the same labor market. Importance of Achieving Internal and External Equity Equity, in particular internal and external equity, is a crucial factor in determining pay rates. The fairness of a compensation policy can be assessed by employees pay levels in relation to those of their colleagues and employees in comparable jobs in the larger market. When pay rates are too low, the organization will face difficulties with recruitment and retention. By contrast, if they are too high, the organization may face financial difficulties. The process of establishing pay rates, while ensuring internal and external equity, typically takes different measures: Achieving Internal Consistency (Internal Equity)- Here the worth of each job within the organization is determined through the Job Evaluation process (job analysis, job descriptions, & job evaluations). This establishes the relative worth of a job in relation to the value of other jobs in the workplace. Achieving External Competitiveness (External Equity) Before comparing external market rates on a position, human resources managers need to set out the essential elements of existing compensation policies such as cash compensation and indirect pay. This mix is a central consideration when making comparisons to pay levels at other organizations. Another
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consideration in designing compensation strategies is whether to match, lag or lead the market. One common method for accessing information on pay rates for benchmark jobs in other organizations is through using or collecting salary survey information. Inequities Inequities exist within an organization when the salaries of employees are out of alignment. Organizational alignment occurs when appropriate pay differences exist between supervisors and the employees they supervise; employees in different grades; and, employees in the same pay grade with different levels of responsibility, qualifications and performance. In addition, internal inequity is present when employees within a given organization with comparable qualifications, levels of responsibility, history, performance and length of time within the same salary grade are not paid at comparable rates. And, external inequity exists when an organizations pay rates are not in line with those of the relevant market. This can lead to serious employee recruitment and retention issues. Examining equity The process of assessing internal equity can serve to highlight many organizational problems. First compensation philosophies need to be identified and examined for fit with internal equity adjustment plans. Next, managers need to know whether the organization has the funds to implement such a plan. Questions that managers may need to consider are: Is the pay structure properly defined or is it inadequate? What are employees making in comparison to those with identical skills and equally important experience? How are employees compensated for internally developed experience versus external experience brought with them to the organization? Is length of service valued? What is the turnover rate and what, if any, impact does internal equity have on it? Is the organization unable to attract candidates to a position because it cannot maintain marketcompetitive salaries?

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 Has the organization needed to increase compensation for a position, resulting in it being higher paid than the same type of jobs with more skills or responsibilities, thus throwing salaries out of alignment? Does the organization have consistent hiring and promotion practices? From the perspective of motivating performance, managing internal equity is probably more important than managing external equity. Employees can more easily understand and obtain information on salaries and job performance standards within their workplace than in other organizations. Their perceived inequity can lead to morale problems and turnover. Conducting a job evaluation and the development of an equitable pay structure which is competitive with the external market rates can be used to attract and retain high performance employees.External Competitiveness results from comparing and matching or exceeding the compensation rates of one organization to those of its competitors. Labour Market is the geographical area from which an organization recruits employees and where individuals seek employment.Market Rate is the rate of pay established for a benchmark job outside of the organization. It is determined though the collection of pay data gleaned from surveys of numerous organizations. Benchmark (or key) job is a standard job from either within the organization or outside the organization used as a reference point for pay comparisons. These jobs have relatively the same job content and there is not much difference in their rates of pay. Sometimes employees may decide to seek employment elsewhere because of better pay; rather than lose the employee to the competition, a counter offer may be made. In such circumstances pay increases can be used as a retention strategy. However, before implementing such increases, consider the following factors: Is the competing offer for the same level of responsibility? How does to total compensation package (salary, benefits, hours of work per week, etc.) compare to the existing compensation package? And, if this warrants an increase, how will the counter offer impact internal equity? Does the organization have the financial capacity to provide an overall increase to salaries? And, if it does not, how will this affect the morale of the other employees in the organization? To correct salary inequities, managers may need to adjust their pay structure. Once funds are approved for this undertaking, determining the worth of all internal positions through job
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evaluation should be the first step in the process. Achieving external equity would be the next important measure to be taken and can be accomplished by comparing internal positions to ones in the external market. The comparison can be done through the collection of salary survey information and matching internal jobs with the surveys benchmark jobs, followed by adjusting the salary to the market reference point of com-parable jobs. Although this sounds rather straightforward, there are other factors that may affect pay decisions, one being, and labor shortages. It may mean that in order to attract candidates which are scarce and in high demand a market salary adjustment may be warranted. In such circumstances, transparency of the pay structure and communicating the rationale behind compensation decisions will ensure that employees will perceive their compensation system to be fair and equitable. The Compensation mix To decide the relative proportion of base pay, performance pay and indirect pay to include in the compensation mix, a breakdown of advantages and disadvantages of each should be considered:

Components
Base Pay

Advantages
Flexibility Recognized job requirement Highlights relative importance of job Demonstrate commitment to employee Simplicity Highlights Key work behavior and motivates action Acts as a control mechanism Creates employee interest in performance Can support managerial strategy Can be linked to organizations ability to pay

Disadvantages
Fixed pay commitment Does net motivate task behavior Does not encourages citizenship Behavior Not self- correcting

Performance pay

Requires a clear system of goal setting Employee prefer predictable rewards May raise compensation costs May distort performance toward inappropriately behaviors May have unanticipated consequences. More complex to administer than base pay Costs can be substantial and/or difficult to control
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Indirect Pay

Can aid recruitment

Removes an incentives for unionization Favorable tax treatment for individual employee Economic of scale in purchasing packages Can provide rewards which are valued more highly than their costs Provides employee security Aids employer security Can support managerial strategy

Funder do not always reimburse employer for their costs Rigidity Difficult to develop efficient and effective benefits packages Administration and communication costly Does not motivate task behavior May encourage undesirable behavior.

Determinants of Compensation
Various factors affecting compensation include financial and equity considerations. To attract and retain qualified employees, managers must make certain that their pay rates are fair compared to positions within the organization and outside of it (internal and external equity). To achieve this, market rates are used, because they are perceived to be the most objective and valid guide for setting compensation levels. However, this falls short of ensuring equity within the organization. To facilitate internal equity, positions need to be evaluated consistently and fairly and classified into appropriate pay ranges.

HR Operation manual
HR operation manual is a important document to the organization. It comprises of all the task which are covered under Operation department, formulated nicely to give information about the working and procedures of this department. So that new employee can easily understand these aspects and working can be started immediately in case there is no time for orientation and
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induction. This way this document finds its costumer to those who are newly employed to the operation department.

File updation
File updation is important task to be done by HR operations for each and every employee. Every employee has to fill some documents at the joining which are kept as record in file. These file are numbered according to the SAP code and file numbers. Each employee has its separate employee code, which help to maintain their record systematically. These records are updated accordingly as the new documents are required. These records are also maintained online at VG portal which are required to be filled by employee at the time of joining. Likewise records are maintained two ways which helps in keeping track of employees personal details, mediclaim, PF and Gratuity etc. Benefits of Record management: Space savings Reduced expenditures for filing equipment. Increased efficiency in retrieval of information Protection of vital records Control over creation of new records

Mediclaim Insurance Policy

Mediclaim as a benefit is very important in retaining and motivating the employees in a firm. It serve as a part of the benefit, for which formality is done at the time of joining, this claim cover the parents, two children and spouse of employee. Videocon has included many network hospitals at which employee can avail the benefit as cashless as well as in cash. Bills are required

34

to be submitted at the end of year to claim the benefit, in case if bills are not produced it will be taken as taxable benefit. Videocon has made its tie-up with Alankit as TPA. Document named as Mediclaim insurance will be taken as a internal document which will give detail about the mediclaim policy and also includes some FAQs which will give a clear idea about the benefits which will be covered under it.

Ix

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Compensation manual of Videocon

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1. OBJECTIVE The objective of this manual is to clearly define the compensation policies and salary structure of Videocon Industries Ltd.

2. Philosophy THE
COMPANY BELIEVES IN A COMPENSATION PHILOSOPHY AIMED AT ATTRACTING,

MOTIVATING

& RETAINING TALENT. THE UNDERLYING PRINCIPLES OF THE COMPENSATION

PHILOSOPHY ARE AS FOLLOWS:

UNIFORMITY IN BANDS & SALARY STRUCTURE ACROSS VIDEOCON INDUSTRIES LTD. FLEXIBILITY TO EMPLOYEES IN STRUCTURING THEIR SALARIES TAX COMPLIANT STRUCTURE

3. APPLICABILITY THE MANUAL IS APPLICABLE TO ALL EMPLOYEES OF VIDEOCON INDUSTRIES LTD. All previous documents and addendums issued prior to this stand nullified post the release of this document.

Designation code and grade

EG TEXT ESG C1 B Board of directors C2 BD M9 SV M8 EMPLOYEE SUBGROUP TEXT Chairman President Board of directors Director Senior vice president Vice president

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AV SG M7 M Manager M6 M5 M4 M3 M2 M1 MT ET S3 S1 T trainees S0 E3 X executive E2 O3 O2 G H officer Sub staff 01 H1

Associate vice president Senior general manager General manager Deputy general manager Assist.general manager Senior manager Manager Deputy manager Assist.manager Management trainee Graduate engineer trainee Senior assistant Assistant Junior assistant Senior executive Executive Senior officer Officer Junior officer Driver

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Compensation Structure The compensation structure of Videocon Telecommunications Ltd. Is divided into two parts: Total Fixed Pay (TFP) Total Variable Pay (TVP)

Total Cost to Company (TCC) = TFP + TV

5.1 Total Fixed Pay (TFP) It is the fixed salary which is committed to an employee for payment on monthly basis. It further comprises of two parts: Fixed Pay (Pay slip Component) Flexible Pay (Reimbursement Component)

The compensation elements under Fixed Pay and Flexible pay are as below: Fixed Pay Basic Pay HRA Conveyance Allowance Child Education Allowance Grade Allowance Provident Fund LTA Reimbursement Reimbursement Medical Reimbursement Fuel Reimbursement Drivers Salary Reimbursement Car Hire Scheme

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5.1.1 Description of Fixed Pay A) Basic Pay: Basic pay will be fixed at 40% of Fixed for all employees. Limits: Fixed 40% of Fix Taxability: Basic Salary is fully taxable and applicable tax rules will apply. Fast Fact Salary Component Limit Fixed Limit of Basic Pay 40% of TCTC Monthly payout Taxable Payment Process Tax Implication

B) House rent allowance (HRA) HRA will be fixed at 50% of basic pay for all employees Limits: fixed - 50% of basic pay. Taxability: From the HRA received as part of salary during the year, least of the following three amounts are exempt from tax: Amount equal to 50% of basic salary for persons staying in metropolitan cities (Mumbai, Kolkata, Chennai, Delhi, Hyderabad or Bangalore) and 40% for other cities. Actual HRA received. Amount of rent actually paid in excess of 10% of annual basic salary

Example: 1. Salary for the entire year Rs. 300,000/- (Basic) 2. Actual HRA received Rs. 1,50,000/-

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3. Rent paid for the entire year Rs. 1,20,000/- (10000 pm * 12 months) HRA exemption for this case is: Actual HRA received = Rs. 1,50,000 Rent paid less 10% of Basic Salary = Rs. 90,000 (1,20,000 minus 30,000 (10% of 3,00,000)) 40% of Basic Salary (3,00,000) = Rs. 1,20,000 (for non-metro) Least of the above, Rs. 90,000, is exempt from tax Fast Fact

Salary Component Limit

Payment Process Tax Implication Least of the following amounts is exempt from income tax: Actual HRA Received

HRA

50% of basic pay

Monthly payout

50% of basic pay (for metro cities) and 40% of basic pay (for non-metro cities) Amount of rent actually paid in excess of 10% of annual basic salary

C) Transportation Allowance Conveyance allowance is paid to assist employees in defraying their expenses incurred towards cost of local conveyance. Any employee, who is not availing Car Hiring Scheme/ Fringe Benefit Plan, can avail Conveyance allowance, subject to a maximum limit of Rs 800/- per month.
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Eligibility: All employees who have not opted for Car Hiring Scheme. Limit: Maximum limit of Rs 800/- per month Taxability: Conveyance allowance is exempted from tax up to Rs 9600/- per annum Or Rs. 800/- per month. Fast Fact

Salary Component Conveyance Allowance Eligibility All employees

Maximum Limit Rs. 800/- per month

Payment Process Monthly Payout Tax Implication Exempted up to Rs 800 per month

D) Child Education Allowance Child Education Allowance (CEA) is paid to assist employees in defraying their expenses incurred towards cost of child education. Any employee can avail CEA, subject to a maximum limit of Rs 2400/- p.a. . Eligibility: All employees are eligible. Limit: Maximum limit of Rs 2400/- p.a. Taxability: CEA is exempted from tax up to Rs 2400/- P.a

42

Fast Fact

Salary Component Eligibility Child Education Allowance All employees

Maximum Limit

Payment Process

Tax Implication

Rs. 2400/p.a.

Monthly Payout

Exempted up to Rs 200/- .

E) Helper Allowance Eligibility: All employees grading Manager and Above Limit: Maximum limit of Rs 5000/- P.m or Rs 60,000/- P.a. Taxability: Helper allowance is amount is exempted from tax. F) Grade Allowance Eligibility: All Employees are eligible Limit: It is a balancing amount. Taxability: Grade allowance is taxable.

G) Office Wear Allowance Eligibility: All Employees are eligible Limit: Varies as per grade Taxability: Office wear allowance is exempted from tax.

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Fast Fact

Salary Component Eligibility Employee Helper allowance Above Manager Grade Employees Maximum Limit Maximum Limit Of Rs 5000/P.M Or Rs 60,000/- P.A. It Is Balancing

Payment Process Monthly Payout

Tax Implication Nontaxable

Grade allowance Office wear allowance

Monthly Payout Monthly Payout

Taxable

Are Eligible. Amount. Employees Varies As Per

NonTaxable

Are Eligible. Grade

5.1.2 Yearly benefits A. Ex-Gratia Payout Gratuity amount equal to 4.81% of basic pay is to be paid along with full & final settlement under the head of Ex-gratia Salary. Payout amount will be equivalent to the month on month provisioning done with finance. Ex-gratia payout attracts Tax, to be calculated as per Income Tax Act guidelines

44

B. Leave Travel Allowance (LTA) An employee can opt for LTA and claim the LTA amount subject to the guidelines mentioned below. Unclaimed amount lying under this head would be carry forward to the next financial year or paid at the end of the financial year as a Taxable Allowance (post consent from employee). Guidelines Detail policy is approved by Finance & HR department & is uploaded on Intranet for the perusal for all employees. Eligibility: All employees. Limit: Any amount up to 8.33% of Basic. Taxability: LTA claimed twice in a block of four years will be exempted from Block would be considered as per the Income Tax act. income tax.

Salary Component Eligibility

Maximum Limit

Payment Process Reimbursed on production of actual bills on prorated entitlements Tax Implication LTA claimed twice in a block of 4 years (as defined by IT act and rule) exempted from Income Tax

Any LTA All employees amount up to 8.33% of Basic

Retiral Benefits Provident Fund (PF) : It is a retiral benefit to ensure financial protection and maintenance of a comfortable lifestyle after retirement. It is a deduction under the Employees Provident Fund and

45

Miscellaneous Provisions Act, 1952 and benefits under this act are extended to all employees from their date of joining. Rate of contribution: Employees contribution Minimum 12% of basic pay per month Employers contribution 12% of basic pay per month Employees may choose to enhance their rate of contribution to Provident Fund in a way of

Voluntary Provident Fund, however employers contribution will remain fixed at 12% of monthly basic pay B) Gratuity An amount equal to 4.81% of basic pay is kept aside from TCTC to be paid along with full & final settlement under the head of Ex-gratia Salary Other Benefits Employee State Insurance (ESI) All employees with salary (as defined under ESI Act) of Rs.15,000/- and below per month will be covered under the ESI Act. Rate of contribution: Employees contribution 1.75% of Gross salary per month Employers contribution 4.75% of Gross salary pay per month The contribution is a statutory deduction as per ESI Act. 5.2 Description compensation under Reimbursement The following components of TCC will be reimbursed on prorated entitlements: Medical Drivers Salary
46

Car lease Rental Fuel & Maintenance A) Medical Reimbursement: Medical expenses reimbursement is done to assist employees in defraying expenses incurred towards medicines, doctors fees etc (expenses incurred on purchase of toiletries / cosmetic items will not be reimbursed) An employee can claim reimbursement under this component subject to a maximum limit of Rs 15000/- per annum. The specified amount would be reimbursed on production of actual bills Unclaimed amount lying under this head would be paid at the end of the financial year as a Taxable Allowance. Eligibility: All employees. Limit: Maximum limit of Rs 15000/- per annum. Taxability: Medical Reimbursement attracts Fringe Benefit Tax (FBT). Fast fact

Salary Component Eligibility All Medical Reimbursement employees

Maximum Payment Limit Process Reimbursed monthly on production of actual bills.

Tax Implication

Rs. 1250/- per month

Attracts FBT

B) Car Hire Charges All employees in Manager & above are entitled to Car Hire Charges, in case he/she has not availed conveyance as part of salary. This component will be governed by the Companys Car Hire Policy.
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Guidelines An employee can claim car-hiring charges if the vehicle is registered in the name of any third party (other than in the name of any employee of Videocon Industries Ltd.). However, the employee will be required to submit a copy of the registration certificate of the car insurance certificate and PAN of registered owner, as proof of ownership. The vehicle will be taken on hire by the Company for the exclusive use of the employee concerned. The hire charges shall be paid to the third party, on a monthly basis. For details on the said component, kindly refer to the Car Hire policy Eligibility: Asst. Manager & above Limits: Car lease rental up to Rs.12, 000/- p.m. or Rs.1, 44,000/- p.a. (* Latest insured depreciated value of the car will be considered for the purpose) Taxability Car Hire Charges attracts Fringe Benefit Tax (FBT) Applicability Car Hire Charges is applicable from June09 onwards Fast Fact

Salary Component Eligibility Limit Car Lease Asst.Manag Car Hire Charges er & above Rental Up To Rs.12, 000/P.M. Or 1, 44,000 P.A.

Payment Process Tax Implication

Monthly payout to

Attracts Fringe Benefit Tax

third party (FBT)/Perquisite

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C) Drivers salary reimbursement An employee, availing car hire component, can also claim reimbursement under Drivers Salary component. Employees wishing to avail this amount would be required to submit copy of the driving license of the driver and would have to produce monthly receipts of the payments made to the driver so as to claim reimbursement under this component. Drivers salary will not be reimbursed in advance. Unclaimed amount lying under this head would be paid at the end of the financial year as a Taxable Allowance. Eligibility: Asst. Manager & above employees who have opted for Car Hire Charges as a component of TCTC. Limit: As per limits specified for each Band. Taxability: Reimbursement of drivers salary attracts FBT/Perquisite Fast Fact Salary Compone nt Eligibility Maximu m Limit Payment Process Reimbursed Drivers Salary Asst. Manager & above Rs. 5000/per month monthly on production of driver payment receipt Tax Implication

Attracts Fringe Benefit Tax (FBT)/Perq uisite

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D) Fuel & Maintenance An employee, availing car hire, can also claim reimbursement under Fuel & Maintenance subject to a maximum limit defined for each band. The specified amount would be reimbursed on monthly basis, on production of actual bills, subject to the prorated accrued amount under this component which implies that reimbursement under this component cannot be claimed in advance. The unclaimed amount lying under this head would be paid at the end of the financial year as a taxable allowance. Eligibility: Asst. Manager & above employees who have opted for Car Hire Charges as a component of TCTC. Limit: As per limits specified for each Band Taxability: Reimbursement of Fuel & Maintenance expenses attracts FBT/Perquisite. Fast Fact Salary Componen t Eligibility Payment Limit Process Reimbursed monthly on production of bills on prorated entitlements Attracts Fringe Benefit Tax (FBT)/Perquisite Tax Implication

As per Fuel & Asst. limits specified for each Band.

Maintenanc Manager e & above

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Frequency of structuring TCC An employee can restructure his/her TCC, in a given financial year, only on the occurrence of the following: Revision in TCTC Change in car hire (this component should not be changed more than once in a given financial year) 7. Taxability Taxability, wherever defined, is as per prevailing income tax rules. However in case of any changes in the tax rules, the same shall apply wherever relevant. Exit Management Full & Final settlement to be initiated only after receiving Complete Clearance sheet duly approved by respective departments. Payroll SPOC to consolidate Full & Final Inputs & send to Payroll vendor. Basis inputs vendor to calculate payout /recovery & share with corporate SPOC. Corporate SPOC to share calculations with Circle HR SPOC, who in turn takes due consent from the resigned/ex employee. Only after confirmation from Circle HR SPOCs, payout advice to be given to finance. Settlement where full & final amount is in negative, separate recovery process needs to be initiated. Treatment of components at the time of Full & Final Payout:Leave Encashment Encashment of leave is permissible only at the time of exit along with full & final settlement .Payout is calculated on basic salary & for calculation purpose 30days in a month are considered. Leave encashment attracts Tax, to be calculated as per Income Tax Act guidelines. One- time payment Recovery

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Onetime payments such as Relocation Allowance, Notice Pay Reimbursement and Joining Bonus paid basis commitment at the time Recruitment, are fully recovered in case if a person leaves organization before completion of 1 year of service. Any exception to be approved only by Chief Human Resource. Notice Period Recovery As per terms and conditions of appointment letter, employee is required to serve 30/60 days notice period. In case when employee fails to serve notice period, then the shortfall is deducted from his/her full & final settlement. Recoverable amount is calculated on the basis of basic salary and for all the calculation purposes one month is treated equal to 30 days. Approval for Deviation Any deviation on the above to be approved by CHRO only. For payroll processes, responsibilities Payroll Charter to be referred.

52

OPERATION MANUAL OF VIDEOCON

53

1. OBJECTIVE
The objective of this manual is to clearly define the HR operations and working of Videocon Industries Ltd.

1. Philosophy
THE COMPANY BELIEVES IN A BELIEVES IN FAIR OPERATION PROCEDURES AIMED AT ATTRACTING, MOTIVATING & RETAINING TALENT. THE UNDERLYING PRINCIPLES OF THE COMPENSATION PHILOSOPHY ARE AS FOLLOWS: UNIFORMITY IN BANDS & SALARY STRUCTURE ACROSS VIDEOCON INDUSTRIES LTD. FLEXIBILITY TO EMPLOYEES IN STRUCTURING THEIR SALARIES TAX COMPLIANT STRUCTURE

2. APPLICABILITY
THE MANUAL IS APPLICABLE TO ALL EMPLOYEES OF VIDEOCON INDUSTRIES LTD. All previous documents and addendums issued prior to this stand nullified post the release of this document.

MANAGEMENTS BANDS AND LEVELS

EG
B

TEXT
BOARD OF DIRECTORS

ESG
C1 C2 BD M9 SV M8 AV SG M7 M6

EMPLOYEE SUBGROUP TEXT

CHAIRMAN PRESIDENT BOARD OF DIRECTORS DIRECOR SENIOR VICE PRESIDENT VICE PRESIDENT ASSOCIATE VICE PRESIDENT SENIOR GENERAL MANAGER GENERAL MANAGER DEPUTY GENERAL MANAGER ASSIST.GENERAL MANAGER SENIOR MANAGER

MANAGER

M5 M4

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M3 M2 M1 MT ET T TRAINEES S3 S1 S0 E3 X EXECUTIVE E2 O3 G OFFICER O2 01 H SUB STAFF H1

MANAGER DEPUTY MANAGER ASSIST.MANAGER MANAGEMENT TRAINEE GRADUATE ENGINEER TRAINEE SENIOR ASSISTANT ASSISTANT JUNIOR ASSISTANT SENIOR EXECUTIVE EXECUTIVE SENIOR OFFICER OFFICER JUNIOR OFFICER DRIVER

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RECRUITMENT PROCESS

Man power request from Department

Recruitment Team

Source of hiring

Job portal (NAUKARI.COM)

References

Consultancy

Following Interview are conducted

HR interview

Interview by reporting officer

Interview by HOD

Documentation and its verification

Issuing of offer letter

Joining of candidate & position closed 56

 MAN POWER REQUESITION- Analysis is been done by each department and then requirement of new position or reappointment of candidates is been decided and this request is been forwarded to HR head of recruitment department by the concern person.

SEARCHING OF CANDIDATES-As per the requirement issued by the concern person HR recruitment team start searching and pulling out resumes from different sources ,which includes JOB PORTAL 1. NAUKRI.COM REFERENCES CONSULTANCY

FORWARDING THE SUITABLE RESUMES Suitable resumes are been forwarded to the concern department or person who has requested for the position generation. Selected resumes are been forwarded to recruitment team for further follow up.

INTERACTION WITH THE CANDIDATES-RECRUITMENT TEAM talks to the candidate, brief them about the job description, check their interest level and also note down some details regarding: Candidate current job place, profile, grade, current CTC, asking about issues regarding relocating (if candidate is from other city), commuting (candidate from same city). If candidate is interested forwarding his resume to the HOD or to the concern person. Assigning the date for the interview and calling the selected candidate for interview.

CONDUCTING THE INTERVIEWS- Three stages of interviews 1. 1st interview is taken by the HR of the organization, if HR find candidate suitable second Round of interview is conducted.
57

2. 2nd interview is takes by the reporting officer who has generated the requirement of the job, if he thinks the candidate is suitable his resume is further forwarded to HOD.

3. 3rd Final interview Head of department takes the interview and if the candidate is selected offer letter is issued to the candidate Following documents are asked to be submitted to the candidate:

1. Letter of intent (offer letter) 2. Resume of the candidate 3. Appointment letter of previous organization 4. Recent salary break up slips 5. Credential check form 6. Declaration of health form

ARRANGEMENT OF DOCUMENT: Recruitment team arranges the documents in the following order.

1. Check list 2. Letter of intent (offer letter) 3. Salary structure 4. Interview assessment sheet 5. Man power requisition form 6. Job description & KRA form 7. Resume of the candidate 8. Appointment letter of previous organization 9. Recent salary break up slips 10. 11. Credential check form Declaration of health form
58

 Check List: It includes the list of all the documents required for the verification. Letter of Intent: This is the confirmation letter from the company to the candidate which contains the detail of the date of joining the organisation, position, grade, department and the name of the concerned person candidate will be reporting to. Salary Structure: It contains the detail description of the salary component offered to the candidate. Interview assessment sheet: It shows the judgement criterias on which interviewer has selected the candidate. Man Power requisition form: The form shows the position, department the candidate is appointed in, location, number of position and name of reporting officer. This form is approved by HR VP or VC&CEO of the company. Job description and KRA form: The concern department which has generated the requirement of job describe the job and special KRA (Key result area) to the candidate. Resume of the candidate: Describe the candidates personal skills and educational qualification. Appointment letter of previous organisation: To cross check the candidate organisation ask for the appointment letter of the previous organisation the candidate is working. Recent Salary breakup slips: Organization ask for the recent pay slips of last organisation to check the CTC and offer salary according to it. Credential Form: It contains the personal details of the candidate with previous employment details which includes o Name and Address of the previous organization o Candidate designation
59

o Employ Id number o Period of employment till date. o Phone number of previous organizations supervisor o Declaration and authorisation of candidate. Declaration of health form: This form shows the physical fitness or disability of the candidate if any.

Job position closing: When the selected candidate finally comes on board then that position is closed.

OPERATIONS

JOINING:After hiring the candidate, operation department checks all the documents provided to them by the recruitment team regarding the candidate, the set of documents is called VIDEOCON RECRUITMENT CHECKLIST .Checklist includes the following documents Check list Letter of intent (offer letter) Salary structure Interview assessment sheet Man power requisition form Job description & KRA form Resume of the candidate Appointment letter of previous organization Recent salary break up slips Credential check form Declaration of health form

When the above documents are verified by the operations team and the feel that the documents are genuine Operation department generate LETTER OF INTENT 60

 LETTER OF INTENT- Candidates who are selected are offered a letter of intent in which all the details of his position, grade and date of joining is summarized to him. Every Wednesday new joining is done and induction programme is conducted. In induction programme brief summary of company is given to the candidate and he is been introduced to the work culture of the company. Feedback of induction programme is taken from the candidate.

INDUCTION FEEDBACK FORM Candidates give the feedback regarding the induction held in the organization, so that organization can innovate there induction program and make it more interesting.

SAP codes/employee code is generated on the first day of their induction session.

SAP UPDATION: SAP is software where all the information regarding the employee is stored and it is used for future references. Even the final salary figure comes out after running the SAP software. This is done on the monthly basis when all the data is received at the operation department of corporate head office SAP code/employee code- in this all the details of the employees are stored like their personal information, details of his previous organization, provident fund details, account number of the employee, salary breakup of the employee.

JOINING KIT Candidate is asked to submit the copies either online or hard copies to the company Following forms are included in the joining kit CANDIDATE INFORMATION FORM - this form includes all personal information of the candidate such as:

61

1. Basic details 2. Contact details 3. Family member details 4. Social security benefits (mediclaim) Benefits of the policy covers individual irrespective of any grade Cover spouse,2 children and parents 5. Educational and professional details 6. Training undergone during academic period 7. Employment record (of the previous organization) Compensation particulars previous employer details o Grade/level o Basic salary o HRA o Dearness allowance o Other cash allowance o Conveyance allowance o LTA (leave travel allowance) o Bonus o Gratuity o superannuation o Provident fund cont. o Company car o Other perks o Gross salary o Total CTC

7. Reference details- two references are must of which one from candidates previous employer and other from professional contacts 8. Details of relatives if any, employed in VIDEOCON GROUP 9. Details of official sim card and email id.
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 FORM 13- (Annexure- II) Application for transfer of EPF account To transfer provident fund of past organization to present one in this candidate has to provide EPF-account number. This form is not compulsory to submit, it totally depends on the candidates wish. FORM 2- Nomination and declaration form to assign a nominee to receive provident fund and (widow/child )pension in the event of the death of the candidate FORM F- (GRATUITY FORM) (Annexure - III) Nominate a person to receive the gratuity payable after the death of the candidate, gratuity is payable only if the candidate has worked for 5 years in the same organisation. PERSONAL & EDUCATIONAL DOCUMENTS: 10TH CLASS MARKSHEET 12TH CLASS MARKSHEET GRADUATION DEGREE POST GRADUATION DIPLOMA/DEGREE PAY SLIP OF LAST ORGANIZATION (if any) RELIEVING LETTER(from the last organization) APPOINTMENT LETTER(from the last organization) DRIVING LICENCE or PAN CARD or PASSPORT DETAILS LAPTOP AND SIERRA CARD FORM To assist the VG employees to comply with business objectives even on fields, or mobility, to access Enterprise Portal anywhere to comply the work process. This form is not compulsory to submit, candidates who really wants to avail this service can fill this form. GRADE LAPTOP SIERRA CARD COMPUTER PERIPHERALS
63

GM& ABOVE DGM& BELOW

COMPANY PROVIDED LAPTOP *REIMBURSEMENT OF RS 1000/P.M.[for max 36 months]

YES Applicable only for sales staff .for support function based on HR, HODs approval.

N.A. N.A.

INDUCTION FEEDBACK FORM (refer to Annexure-I) Candidates give the feedback regarding the induction held in the organization, so that organization can innovate there induction program and make it more interesting. Following codes and ids are generated to store candidates informations:

VENDOR code- all the expenses made by the employee are stored in this like travel expenses, and all other expenses during the day to day working in the organization. EMAIL-ID- professional id of the employee is generated by the company through which all the official working is done and to receive all the work related messages. ATTENDANCE USER ID- employee is been assigned with a user name and a password, to mark his attendance daily at the time of arrival and at the time of going back, so that the proper record is been maintained of his punctuality this user id is only given to the CORPORATE OFFICE EMPLOYEES & at BRANCH OFFICES master register is maintained on which employees have to sign on daily basis. VISITING CARD AND ID CARD- organization issues professional visiting cards and ids to the employees.

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PAYROLL PROCESS
BRANCH OFFICE

ATTENDANCE SHEET

CORPORATE OFFICE ATTENDANCE SHEET COLLECT AT CORPORATE OFFICE

MONTHLY UPDATES OF EMPLOYEES E.g. LEAVE, LOANS SAP UPDATION OF PAYROLL INFORMATION GENERATED BY IT DEPT.

GENERATION OF PAYSLIP

GENERATION OF OFF CYCLE PAY SLIP

SIMULATION/TEST RUN OF SALARY SHEET MANUL VERIFICATION OF SALARY SHEET VERIFICATION BY PARROLL HEAD IN HR OPERATION DEPARTMENT TRANSFERING THE SALARY SHEET TO ACCOUNTS DEPARMENT VERIFICATION BY ACCOUNTS DEPARTMENT BANK TRANSFER SHEET GENERATED BY OPERATIONS DEPARTMENT PAYMENT MADE BY THE ACCOUNTS DEPARTMENT

ACCOUNT

DEMAND DRAFT SALARY IS RELEASED ON 5TH OF EVERY MONTH SALARY SLIP IS GENERATED V.G PORTAL -epprd/irj/portal

ON HOLD

65

GENERATION OF SALARY SHEET: Following information is stored in salary sheet SR.NO SAP CODE/EMPLOYEE CODE EMPLOYEE NAME LOCATION ADVANCES GIVEN TO EMPLOYEE LAST MONTH LOAN BALANCE LOAN INSTALLMENT FOR CURRENT MONTH INCOME TAX INFORMATION ACCOUNT NUMBER REMARK (IF ANY) NAME EMPLOYEE WHO PREPARED LIST To mark the attendance following abbreviations are used PR PRESENT OD- OUTDOOR WITHEN TERRITORY WO- WEEKLY OFF PH- PAID HOLIDAY PL- PAID LEAVE WP- WITHOUT PAY ABSENT COM-COMPANY OFF PD- TOTAL PAYABLE DAYS LEAVE DETAIL: 1ST January to 31st December is considered as YEAR for the purpose of leave rule. Upon your confirmation you will be eligible for 24 paid leaves in a year. Depending upon exigencies of work, the superior/HOD will recommend /sanction the leave. Out of the entire leave balance at the end of the year , only 18 leaves will be carry forwarded to the next calendar year, balance leaves gets lapsed. Leave accumulation can happen foe maximum of 54 days ,leaves above 54 days is to be reimbursed in January salary every year(basic pay).
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 Only one leave is allowed for probationary employee that is also credited from his account.

UPDATING OF SALARY SHEET: Leaves are updated : If leave exceed more than balance in a month salary is deducted according to the number of leaves taken by the employee and the amount is deducted from his Basic salary HRA Transport allowance Child education allowance Helper allowance Medical allowance Office wear allowance Grade allowance

Updating the deductions: Provident Fund contribution, Loan taken, income tax, advances, is marked on the attendance sheet. Recording of reimbursement expenses Medical Reimbursement Driver salary Fuel & Maintenance Over and above CTC Laptop Reimbursement Mobile Reimbursement Air/ Sierra card Reimbursement Off cycle pay slip is generated keeping in mind all the reimbursement expenses. This process of updating, deduction and reimbursement is done on the monthly basis at the operation department of Corporate Head Office.

67

 SIMULATION /TEST RUN OF SALARY SHEET: Test run of salary sheet is done in SAP software MANUL TESTING: The salary sheet is checked manually by the Head HR of the operation team. POSTING OF SALARY SHEET TO ACCOUNTS DEPARTMENT: Manually and test run salary sheet is posted to account department for further rechecking. GENERATION OF SALARY SLIP: Salary slip is generated after the SAP updation and further OFF CYCLE pay slip is generated with the help of information collected from the IT department. VERIFICATION BY ACCOUNTS DEPARTMENT: Final verification of salary sheet is done and the salary is transferred to the candidates bank accounts. DISTRIBUTION OF SALARY Employees who have a bank account their salary is directly transferred to their account by and after the approval of the accounts department. Employees who dont have a bank account their salary is given to them through DEMAND DRAFT. Employees who have given a notice period to an organization their salary is kept on hold, after their no dues form is cleared then they get their salary. Salary is generated on the 5th of every month.

POSTING OF SALARY SHEET TO EMPLOYEES: Final salary slip and off cycle salary slip is posted to the candidate. PAY SLIP: Final amount which employee will take home is mentioned in this slip, amount which is mentioned here is undergone all the deductions related to employee leaves, loans, advances Pay slip contains following intent: Name of the employee Id number
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 Pay period Department/location Position Pf number Cost centre PAN number Account number Details of income tax EARNINGS: Basic salary House rent allowance Conveyance/transport Children education allowance Office wear allowance Grade allowance DEDUCTIONS PF contribution Income tax (if any other specific one SUMMARY OF LEAVES Days payable Paid leave Unpaid leaves P.L.balance Final figure of TAKE HOME PAY OFF CYCLE PAY SLIP: It gives the following details Name of Employee
69

 ID number Pay Period Account Number Department/location Position PF Number Cost Centre REIMBURSEMENT TYPE Medical Reimbursement Fuel reimbursement Driver Expense reimbursement It also contains the information about reimbursement claimed till date of issue of OFF CYCLE PAY SLIP.

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SEPERATION PROCESS

RESIGNATION BY THE CANDIDATE

JOB ABANDONMENT

NOTICE PERIOD

TERMINATION

EXIT INTERVIEW

NO DUES CLEARANCE (FROM CORPORATE/BRANCH) SUBMITTED AT CORPORATE HR

SIGNED BY IT, HR ACCOUNT DEPARTMENT. APPROVED BY HOD, CONCERNED REPORTING OFFICER

FULL & FINAL SETTLEMENT BY ACCOUNTS DEPT.

RELIEVING LETTER

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RESIGNATION: In case of employee is resigning from the service for professional or personal reasons, must give a written resignation letter to concerned immediate supervisor will initiate further action the relieving date will be decided in relation with terms and conditions as per letter of appointment . The notice period/ notice pay deduction etc. will be based on the same NOTICE PERIOD: Notice period of service may be effected by either side tendering one month notice for all confirmed employees, out of which 15 days working is must from the employee and for rest of the period payment of 15 days salary (basic salary) in lieu of notice may be recovered at the sole discretion. During probation period an employee is required to serve a notice period of 15 days. The increase/decrease in the notice period is again on the sole discretion of management. EXIT INTERVIEW/ BLACK BOX: In annual event of an employee leaving the organisation, his/her exit interview is conducted by the immediate supervisor along with member of HR team, strictly in personal confidence to know his experience with the company, difficulty at work, suggestion, scope of improvement, training needs, reason for leaving, policy issues, etc. To ensure timely compliance and necessary actions to avoid early exit on the same ground. The employee as to submit a formal notice of resignation. For Asst. manager and above category formal and informal exit interviews shall be administrated by regional coordinator/branch manager/unit head and corporate HR.

JOB ABANDONMENT:
If an employee remains absent without leave or remains absent for more than 3 working days in addition to originally granted leave period, he/she will be considered as absconding. In such case of absconding of employee , he or she will be issued a warning letter immediately If the absconded employee doesnt revert back within a week of issuance he or she will be given one more chance for explaining his or her reason, and organization would issue him or her show cause notice asking foe why he or
72

she is not coming and shouldnt organization terminate him or her on these grounds of abandonment? If the employee doesnt even reply to this in next seven days .then it will be considered that the employee is not interested in associating with the organization anymore. He or she will be issued a termination letter. all the communication will be done at correspondent address of employee The above mentioned procedure is applicable for confirm employees only. in case of probationary employee termination would be from the immediate effect of such abandonment

TERMINATION LETTER: Termination is an undesirable outcome for both the

employee and the company but may be necessary if the employee Violates the companies policy/code of conduct/rules and regulations Any act /behaviour which damages brand image/equity Is unable to meet the companys performance standards

FULL&FINAL SETTLEMENT: On receiving the separation check list from HR /commercial,

the employee must obtain the signature of all concern and return it to HR/ commercial department the employee is required to settle all financial obligations and turn in his or her identification card, keys and any other property which he or she had been issued by all company. The full & final amount is paid to the employee after recovering all advances/ outstanding dues, if any. The Company reserves the right to with-hold / deduct the full final settlement. In case the resign employee doesnt comply with the basic formalities as per requirement of immediate supervisor.

CLEARENCE OF NO DUES FORM: Employee has to submit a NO DUE FORM to the

organization only then he will be given his last month salary as the salary is generally put on hold when the employee generates an request that he wants to leave an organization. Following details are there in the form:

Employee name Designation

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 Date of joining Date of discharge Notice period given Remarks Department Employee code Date of resignation Resignation acceptance Leave balance Clearance by department head Clearance by account department Details of the outstanding against product purchase Details of outstanding against hard furnishing Clearance from admin Clearance from IT department Date Signature of HR department Signature of employee
When all the above formalities are cleared no dues form is cleared this form is transferred to accounts department for further process and releasing the exit employees salary.

ISSUEING OF EXIT LETTER: All the above formalities are completed then exit letter is been
issued by the concerned department to whom the employee was been reporting and all the final settlements are made and finally the candidates gets the TAKE HOME PAY and he can leave the organization

Company/management reserves the right to modify, cancel or amend any or all these rules without any previous notice and giving effect to them as deemed fit

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MEDICLAIM POLICY OF VIDEOCON

75

GUIDELINES Insurance Company: United India Insurance Company Ltd

TPA(Third party Administrator): Alankit Health Care Policy Number: 020100/48/11/41/00002648

Coverage: Employee, spouse, first two children and parents. Mode of benefits: Cashless in network hospitals through reimbursement in case of non network hospitals

Benefits provided are according to following scheme according to the grades.

Grade Vp & Svp Gm & Avp Agm & Dgm Manager & Sr Manger Asst. Manager & Dy. Manager Executive & Senior Executive Sr.Officer, Officer,Mt, Jr Officer

Mediclaim(in lacs) 5 5 4 3 2 1 1

GPA (in lacs) 15 15 10 5 5 3 3

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Employee has to complete all their formalities during the time of joining. It is the duty of Employee to give the complete information about their family members, which may include spouse, first two children and employee parents.

Any information given after joining formalities will not be entertained except for spouse and first two children. The declaration, nomination and updation will have to take care by concerned employee well in time in coordination with corporate HR. To claim hospitalization bills all original documents like hospital admission, briefing cause of admission, date of discharge, prescription notes, medicine expense bills, other treatment like surgery, special treatment, X ray, scanning, diagnosis report etc. bills to be submitted in details

The Hospital should have minimum 5 beds capacity. Minimum 24 hours of hospitalization is required. A The Doctor should be registered under Medical Registration and qualified as MBBS or MD. In case employee is resuming duty Original Discharge certificate with fitness certificate is required to be submitted. The policy benefits can be availed only after completion of following formalities, which are mandatory for further compliance with the insurance company. Any deviation to this, the insurance Company shall not be entertained for claim process.

Yearly a specific amount is deducted from the salary of the employee as the premium for this mediclaim policy. This amount may vary according to the grade of employee.

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FAQs 1. How many visits are covered and over what period of time? Ans. As such no limits are marked in concern of visits. As long as employee has balance, they can visit the hospitals.

2. Will there any additional costs will be covered such as lab test, supplements etc. Ans. Any employee or family member willing to avail medical benefits will have to be

admitted in the hospital at least for 24 hours. The hospital should have minimum 5 beds. Laboratory test or any other diagnosis will not be reimbursed if the beneficiary is not admitted.

3. If I use a practitioner who is not a part of your network do you provide any coverage? Are there any out of pocket cost. Ans. Yes coverage will be provided for non network hospitals also, original bills and prescription are required to be submitted by the employee. Buffer policy is given to the employee for bearing any additional cost in case of emergency on special approval.

4.Who do, I contact in case of any query regarding insurance policy? Ans. Employee has contact to Mr. Harish Kohli for any queries.

5. From when will the employee will be eligible for the insurance policy? Ans. Employee will be eligible from the date of joining. Employee under probation period is also eligible for claiming.

6.Can new nominee be added in the insurance policy? From when they are eligible to claim insurance. Ans. Only spouse and children can be added after giving prior information about it to HR operations. After submitting all the details of the new nominee to HR operation, new nominee will be eligible.

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FINDING AND ANALYSIS

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Finding and Analysis:

Compensation structure always consists of two parts in which one part is fixed and other is variable. Benefits or non- monetary incentives are also the important part of salary structure. A good compensation structure is a too, to retain the employee and motivate them to work sincerely. Cost to company or gross salary and take home pay are different, company usually try to increase in hand salary of employee by giving them tax benefits. HR Operation is a wide scope to work and very important to monitor it regularly. Deciding a salary for an employee has many factors to consider in it. Pre- Joining formalities are as important as post- joining formalities. File or record management of employee makes the work of operation department very easy; it gives the important details of employee and helps in monitoring their performance. Files of employee are periodically monitored to keep their record updated. Mediclaim insurance or health care facility is very important to retain the employee and make them feel that they are the part of company. Company to not interact with the insurance company it usually coordinates through third party.

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RECOMMENDATIONS

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Recommendations
It has been observed that compensation structure do not have any provision for Over time pay it must be included in that. It will help in increasing the dedication in the employee to work hard; will increase the productivity as well. In hand pay of the employee in comparatively low in comparison to the gross salary, some restructuring is required to be done. Flexible working hours must be included so that employee can work according to their convenience of time. As it had been observed that many problems were faced to complete the records of employee. So to complete it on time, one thing can be done. When employees join the company they fill their details on VG portal as well. Print out of that web page can be used instead of getting them filled by the employee. It will help in completing document on time and no pending files will be there. Cover page of all staff files must have a check list in which document present must be marked in that. Shelf where files are kept, a paper slip must be pasted which contain the range of number of employee files kept in that shelf. For example, 190001-190050 Laptop can be provided by the company instead of giving 36,000 as reimbursement. It will cost less. It will give them buyback value also. Generic medicine stores must be covered under medical policy so that burden of high cost medicine will be reduced from both employer and employee as well. Specified limit of age of children must be mentioned in the mediclaim policy so that company will not bear the cost of mediclaim of those children who are self dependent

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BIBLIOGRAPHY

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Bibliography
Videocon Telecommunication compensation manual Videocon HR policy manual WWW.Videocon.com WWW.citehr.com http://www.frma.org/ VG portal of Videocon.

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ANNEXURES

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