CONTENTS

CHAPTER 1 Introduction Need for the study Scope of the study Objectives of the study Methodology of the study Limitations of the study CHAPTER 2 Industrial profile CHAPTER 3 Company profile CHAPTER 4 Theoretical Frame or! CHAPTER 5 "ata analysis and Interpretation CHAPTER 6 Findings and suggestions Questionnaire

WAGE AND SALARY ADMINISTRATION

Biblio ra!"#

C#$%T&'(I

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$NTRO%&CT$ON

$ age is a remuneration paid) for the service of labour in production) periodically to an employee salary normally refer to the age usually refer to the hourly paid to such ee!ly or monthly rates paid to clerically ) groups as production and maintenance of employees * on the other hand) administrative and professional employees* It includes hat areas as job evaluation) surveys of of age and salaries)

analysis of relevant organi+ational problems) development and maintenance age structure* ,age payment) incentives) profit sharing) controlling of compensation costs and other related items* The e-uitable age and salary administration is to establish and maintain and age and salary structure* The age and salary administration is

concerned ith the financial aspects of needs) motivation and re ards*

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NEE% 'OR THE ST&%(

The provision of age and salaries beyond the statutory re-uirement a better comment and co(ordination

can ma!e the employees feel that they are concerned by the management* This positive feeling can help to dra from them* ,ages and salaries contribute to economic development by modeling or!ers into a productive) efficient and committed labour force* It is an important factor for industrial relations* ,age and salary administration must ell planned and organi+ed by -ualified leadership aimed at meting ay promoting sound minimum needs of the employees* So) in a long

industrial relations and building up a strong national economy*

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SCOPE O' THE ST&%(

The study

as made on

age and salary administration in the $ndhra

%radesh paper mills limited . includes statutory measures covers payment of ages act /012) minimum ages act /034) employees state insurance act /034) and

employees provident fund act /056) non(statuary measures cover att endance allo ance) night allo ance) job evaluation techni-ues) e-uitable and practices of age and salary administration* ages) policies

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OB)ECT$*ES

/* To revie organi+ation*

hether

age and salary are perfectly administrated in the

6* To !no the various benefits provided to the employees in the organi+ation* 1* To study the formulation of age policies in the organi+ation* 3* To !no that the e-uitable ages and salaries are provided to the employees in the organi+ation* 5* To study ho job evaluation techni-ues are follo ed in the organi+ation*

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WAGE AND SALARY ADMINISTRATION

+ETHO%O,O-(

"ata is collected through primary data and secondary data* %'IM$'7 "$T$ %rimary data is the data) hich is collected for the first time by investigator

through -uestionnaire and intervie s for the management of the $ndhra %radesh paper mills limited * 8y using various departments and observing employees and their attitude to ards the ages and salaries provided by the organi+ation* %'OC&SS OF 9$T#&'IN9 INFO'M$TION :uestionnaire as prepared according to the needs and priorities of the company* hich consists of sample si+e of 5;

This -uestionnaire has to collect all the information regarding the -uestions* The survey has to be conducted on this) employees ithin the T#& $N"#'$ %$%&' MILL* ,hile surveying the opinions of the people are ta!en into records*

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S&CON"$'7 "$T$ Secondary data is the data) journals etc* Through simple random sampling of the primary data) there is no e-ual chance of including each and every employee of the organi+ation* The sample si+e is 5; here in there and e-ual chance of each and every employee o e<press their opinion regarding provisions of company* age and salaries by the management of the hich is already collected by some persons) internet)

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,$+$TAT$ONS

/* The project

as made only for 35 days and as the time

as very less it

as

not possible to conduct a in depth study* 6* The sample si+e) hich I had preferred) as only 5;* This may not represent the hole class of the employees* 1* $ number of biases may creep into the study because of the employee=s uncertainity about their o n* 3* >ie due to tension) an<iety and other things they did not give more

information* 5* 8ecause of the confidentiality) they did not given much information*

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WAGE AND SALARY ADMINISTRATION

C#$%T&'(II
IN"?ST'I$L %'OFIL&

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WAGE AND SALARY ADMINISTRATION

$NTRO%&CT$ON
$ Country=s civili+ation mostly depends upon its paper consumption* First orld and its introduction in India* $gain its essentials to !no e

have to !no ) in brief about the introduction and establishment of paper in the about the development and progress of paper industry in our country as ell as in our state* The @%$%7'?SA) ord paper is adopted from the @,$T&' %L$NTA called hich used to gro around @NIL& 'I>&'A) &gypt* The &gyptians as said

used @%$%7'?SA plant after cutting and drying it* SINC& 1;;; 8*C* it T'&&A in /;5$*"*

that @T*B$ML?M C#$IN&A had prepared paper at the ban! of the @M?L8&''7

In C5/ $*"* the @$'8$SA imported the !no ledge of paper ma!ing the help of @C#IN&&S&A* Later the art of paper ma!ing and central countries of the orld* It

ith

as spreaded to &urope

as highly populari+ed by the

@8O,""$'DA especially by the @"OSDO MONDA throughout the orld* The @%$%7'?SA is the -uote plant ere hich gro in abundance in a plant riting material can be

oven and pressed into a sheet be used as

riting material by the ancient

&gyptians the evidence of %$%7'?S having been used as In ancient days for

found* &ven no in some of the &uropean libraries are preserving old manuscripts* riting purpose @8OB$ %$T'$A Ebar! of treesF) T$L$ hich is convenient %$T'$ Eleaves of palmF) T$M$'$ %$T'$ Ecopper platesF and LO#$ %$T'$ etc*) ere used time paned as and the need for riting surface of a easily available*
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DEFINTION: Paper may be defines as a mat of risis "nit of paper is e!!"!ose fiber& e!!"!ose fibers arran#ed in

ross fas$ion %it$ $ydro#en bond or ot$er for es& T$e basi

MEANS OF WRITING IN OLDEN DAYS In ear!y days of man'ind man "sed opper p!ates( Tamra Patras( papyr"s et for re ordin# $is t$o"#$ts&

ORIGIN OF PAPER: T$e first s$eet of paper %as reated in $ina by t sai !"n( a o"rt offi ia! in )nd ent"ry *&+ by "sin# m"!berry and ot$er baste fiber a!on# %it$ ra#s and $"m %aste& T$en it #rad"a!!y spread a!on# Mediterranean aro"nd ,,-- A&D and t$ereafter E"rope and Ameri a

HISTORY:
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Paper is a ommodity( %$i $ is important in e.ery day/s !ife0 it is one of t$e basi needs t$at man fe!t& Paper forms t$e basi materia! for omm"ni ation& Mans ear!iest attempt to re ord $"man a ti.ities %as made on stone& A !itt!e *AR1 !ea.es %ere "sed& *et%een )2-- *&+ and )---*&+ t$e man"fa t"rin# of paper %as be#an from ta!! reed #ro%in# a!on# t$e ri.er Ni!e a!!ed 3PAPYP4S5( +$inese in.ented t$e a t"a! man"fa t"rin#ofpaperabo"t,-2A&D T$e first paper mi!! in t$e %or!d %as started in ,667 A&D in Germany( .ie%in# t$e tremendo"s impa t of paper ind"stry0 mi!!s %ere started in ,227 in S%it8er!and and Ho!!and& Later it %as spread a!! o.er t$e %or!d& 9irst!y in ,:;< $!orine %as "sed in b!ea $in# of t$e paper( in ,::< robert in $o!es t$e 9ren $ s ientist desi#ned t$e first paper ma $ine in t$e %or!d& Present "sed paper ma $ine %as desi#ned by =La#es diddt and *rat man Do"'in %it$ t$eir ontin"o"s efforts&

The paper industry has an important social role to play for the country* ?se of paper is considered as an inde< of cultural gro th* Dey social objectives of the 9overnment li!e eradicating illiteracy) ma!ing primary education compulsory etc* are very much related to the paper industry* The paper industry is also contributing to ards fulfilment of various re-uirements of the industry as a information dissemination) publicity etc* hole li!e hich in turn stimulate industrial gro th

of the country* The paper industry has) thus) a catalytic role to play not only for the overall gro th of the industry but also for the living standards of the people* The ne millennium is going to be the millennium of the !no ledge* So demand for

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paper

ould go on increasing in times to come* 8ecause of paper industry=s

strategic role for the society and also for the overall industrial gro th) it is necessary that the paper industry performs ell*

The varieties of paper in !"#e: +"!t"ra!( spe ia!ty( board( ind"stria! "!t"re>%ritin#( printin#( *ond( ?ero@ board A stra%berry( mi!! boards( fiber board( bo@ board( D"p!e@ board& Indians %ere "sin# opper and iron p!ates for t$e p"rpose of

%ritin# before paper omes into e@isten e& T$e art of paper ma'in# rea $ed India t$ro"#$ Arabs& Some Indian M"s!ims mi#$t $a.e a!so !earnt it dire t!y %$en t$ey .isited ma#no!ia& *"t t$e fami!ies %$o !earnt it( %$o are a!so 'no%n as =1ABIS/ 'ept t$is art as #"arded se ret& Not$in# an be said abo"t t$e first paper mi!! in India& *"t it is said t$at WILLAM +ARRY in ,;,) started t$e first paper mi!! at Seramp"r in %est *en#a! %it$ t$e $e!p of 1ABIS& In ,;6) t$e first C> dryer type ma $ine %as introd" ed in India in ,;7: it %as Transferred to 3roya! paper mi!!s5( *ALI( near +a! "tta( %$i $ %as .irt"a!!y absorbed by tita#rap$ paper mi!!s& T$ey %ere started t$e Paper P"!p +ompany %as started at Nai$a!t( %est *en#a! in ,<,; and t$e remainin# mi!!s started one by one PAPER PROD$%TION IN INDIA
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!ose!y

WAGE AND SALARY ADMINISTRATION

In ear!y ,<2-/s t$e tota! n"mber of paper mi!!s %$ere ,: %$i $ %as in reased to aro"nd )2- mi!!s by ,<;-& T$e domesti ,62--- metri A o"tp"t of paper D paper boards #re% from tons in ,<;2& tons in

tons in,<2, to ,2----- metri

ordin# to t$e bo"#$ estimates presented in s"r.ey of Indian

Ind"stry by t$e Hind" p"b!i ations it is ,<----- metri )--2&

T$e initia! de.e!opment D #ro%t$ of paper ind"stry ti!! t$e ear!y ,<t$ ent"ry %as affe ted by t$e stora#e of %ood in t$e o"ntry& *"t ,<,E( t$e de.e!opment of a pro ess based on bamboo Lead to rapid #ro%t$ of domesti ind"stry& *y t$e end of si@ties( t$e Domesti demand& Most of apa ity for po%er prod" tion domesti prod" tion %as

La##ed demand and imports in reased to appro@imate!y ,-F of t$e t$e on entrated in t$e $and of a fe% !ar#e mi!!s& In !ate si@ties( bamboo as an inp"t to paper ind"stry "nder s$ort s"pp!y& Ta'in# t$is into a ame

o"nt( t$e #o.ernment of

India started en o"ra#in# sma!! "nits based on a#ro>reside %aste Paper in t$e se.enties& 9is a! in enti.es %ere a!so offered& T$is !ead to a sport in t$e n"mber of mi!!s %it$ sma!! apa ities& *"t( from t$e !ate ei#$ties( ind"stry started fa in# an o.er S"pp!ies sit"ation !o% pri e rea!i8ation and p!ant Do%ntrend impro.ed& !os"res& T$e ontin"ed ti!! ,<))( %$en demand A s"pp!y sit"ation

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WAGE AND SALARY ADMINISTRATION

9rom ,<<6( in step %it$ t$e easin# of t$e %or!d %ide re ession in t$e ind"stry in.estments started in reasin#& A boomin# mar'et a!so $e!ped in raisin# money for ne% Ind"stry %as in a Go!!y mood "p to ,<<7& Sin e ,<<- t$e paper ind"stry in India is fo!!o%in# #!oba! y !e %it$ periods of o.er apa ity !eadin# to drop in paper pri es( !o%er apa ity "ti!i8ation and s!o% do%n in in.estment t$en ba ' f"!! ir !e to in rease in paper pri es& apa ity addin# fo!!o%ed by !os"re of mi!!s( de reased in demand A s"pp!y #ap and apita! apa ities& T$e

9overnment has completely de(licensed the paper industry The entrepreneurs are no Memorandum

*e*f* /Cth Buly) /00C*

re-uired to file an Industrial &ntrepreneur

ith the Secretariat for Industrial $ssistance for setting up a ne

paper mill or substantial e<pansion of the e<isting mill in permissible locations* The industry is a priority industry for foreign collaboration and foreign e-uity participation upto 5/G receives automatic approval by 'eserve 8an! of India* Foreign investment even upto /;;G is approved by FI%8 on case to case basis* Several fiscal incentives have also been provided to the paper industry) particularly to those mills hich are based on non(conventional ra material*

There are) at present) about 5/5 units engaged in the manufacture of paper and paperboards and ne sprint in India* The country is almost self(sufficient in manufacture of most varieties of paper and paperboards* Import) ho ever) is confined only to certain speciality papers* To meet part of its ra material needs) the industry has to rely on imported ood pulp and aste paper* The production of
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paper and paper board during the year 2..1/.2 is 31062 la!hs tonnes* The installed capacity) production and import of %aper and %aperboard of the last si1 years are sho n in the graph*

HISTORI%AL DE&ELOPMENT
)--*+ ,--AD ,:<; *ritis$ of paper on ept in $ina by Tsai!"n& Tra es of a"t$enti paper ma'in# pro ess& Patent iss"e to Ni $o!as A Lo"is Robert for first +ontin"o"s paper ma $ine& ,;-6>,;-: AD ,;)< ,;E,;2E ,;7: ,;;E ,<:7 ,<;E Patent iss"ed to fo"r drinier brot$ers for impro.ed paper ma $ine Patents iss"ed to Go$n Di 'inson/s for HEn#!andI& Gro"nd %ood p"!pin# met$od de.e!oped& 9irst man"fa t"re of p"!p from %ood "sin# soda pro ess& Patent iss"ed to *enGamin Ti!#$man for s"!p$ite p"!pin# pro ess& In.ention of 'raft p"!pin# pro ess by ari d$ai& *i> s"!p$ite p"!pin# and o@y#en de!i#nifi ation of a#ri resid"es& O@y#en>sa!.o p"!pin# of ba##ase %it$ re o.ery y!inder paper ma $ine ontin"o"s

SI'E AND %APA%ITY OF INDIAN PAPER IND$STRYJ T$e e onomi si8e of a paper ind"stry is determined by t$e

a.ai!abi!ity of a ra% materia! D density of mar'ets( a.ai!abi!ity of po%er and transport fa i!ities et in t$e be#innin# of first fi.e years p!an( t$ere %ere on!y ,< paper and paper board mi!!s %it$ a tota! ann"a! apa ity of abo"t ,&6< !a'$ tones& At present t$ere are ,-7

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WAGE AND SALARY ADMINISTRATION

mi!!s %it$ t$e tota! ann"a! apa ity of ,6&<E tones and prod" tion is abo"t ,,&,) !a'$ tones a!t$o"#$ t$ere $as been a #enera! Spreadin# of mi!!s into !ar#e dimensions( t$ere sti!! e@ists "nits of or#ani8ed and %e!! eK"ipped %it$ a prod" tion apa ity of more t$an 2-(--- tones and "nits too sma!! %it$ a apa ity of ,--- tones& In India( t$e #ro%t$ of paper ind"stry after independen e is satisfa tory "nder t$e #"idan e of 2 year p!ans& Its #ro%t$ is ref!e ted by t$e fa t t$at from maGor ,: mi!!s %it$ ann"a! apa ity of ,&6: !a'$ tones in ,<2,( t$e ind"stry en!ar#ed to 6,< mi!!s %it$ ann"a! apa ity of 6)&6, !a'$ tones at t$e end of : t$ fi.e>year p!an& +apa ity of 6:<- !a'$ tones& T$e !a'$ of !ar#e in.estment in t$is Ind"stry by t$e pri.ate se tor for ed t$e Go.ernment of India to set 4p t$e Hind"stan Paper +orporatio in t$e p"b!i se tor to #i.e importan e to t$e #ro%t$ of t$e ind"stry and to meet t$e reK"irements of t$e near f"t"re %it$ t$e effe t from Mar $ ,<;: paper ind"stry t$e pre.ie% of mod .at s $eme& T$e #o.ernment a!so $e!ped paper ind"stry in importin# %ood p"!p $ips and %aste paper by a!!o%in# t$em "nder open #enera! !i ense and ertain e@ ise d"ty e@ eption& D"rin# t$e !ast fe% years( #o.ernment $as made efforts to red" e t$e import of ne%s print and for ed t$e ne%s paper and ma#a8ines to "se same of t$e "!t"ra! .arieties of paper man"fa t"red by Indian mi!!s&

The proportion of non( ood ra material based paper is increasing over the years* $t present about 2;*4 per cent of the total production is based on non( ood ra material and 10*6 per cent based on sho n in the graph* ood* Fibre( ise share of production is

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WAGE AND SALARY ADMINISTRATION

DE&ELOPMENT OF PAPER IND$STRY IN INDIA A ordin# to $istori re ord t$e first paper mi!! %as set "p in t$e

year ,;,) A&D it %as on!y after ,;:-/s man"fa t"rin# of paper #ained moment"m( %it$ t$e estab!is$ment of 3ROYAL *ASE PAPER MILL5 at Hoo#!y( %$i $ %as !ater mer#ed %it$ Tita#$ar paper mi!!s& 9rom t$en on%ards t$e prod" tion of paper $as bee$ onstant!y In reasin# to meet t$e e.er>in reasin# demand of paper in t$e o"ntry& At present abo"t );; paper mi!!s are in f"n tion %it$ o.era!! insta!!ed apa ity of )E&2- !a'$ tones o"t of t$is $"#e apa ity E-F of t$e prod" tions are from amo"nt of prod" tion

sma!!>s a!e mi!!s and on!y t%o mi!!s are #iant "nderta'in#& On!y E: mi!!s $a.e an ann"a! insta!!ed apa ity of ,-&--- tons& A ordin# to re ent s"r.ey( by Hind" s"r.ey of Indian Ind"stry it !ear and e.ident t$at INDIA is in t$e ba ' seat %$en o"ntries !i'e Ameri a( +anada( S%eden and Lapan& %as K"ite

ompared to

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WAGE AND SALARY ADMINISTRATION

IND$STRY POSITION Paper ind"stry is $i#$!y fra#mented %it$ a apa ity of mi!!s ran#in# from t$an ,- tones to 7-- tones per day& T$ere are aro"nd 6;- paper mi!!s( %$i $ are prod" in# paper in o"r o"ntry& T$e rate of #ro%t$ of paper ind"stry is aro"nd 2F per ann"m& T$e o.era!! insta!!ed apa ity is aro"nd EE!a'$ tones %$i!e t$e prod" tion is aro"nd 6)&2!a'$ tones o"t of t$e 6)&2!a'$ tones of paper prod" tion&)<!a'$ tones is paper and paper boards and 6&2!a'$ tones omprises of ne% prints&

Ra% materia!s bein# "sed by t$ese paper mi!!s aro"nd 6:F of t$e prod" tion are dependent on %ood 6,F is dependent "pon a#ros and t$e remainin# 6)F is dependent "pon t$e %aste paper& A ordin# to t$e information pro.ided by t$e $ind" s"r.ey of

Indian ind"stry( ,<::( it %as mentioned t$at aro"nd 61# is !i'e!y to #o "p to E1# by t$e year )---& T$e demand for paper and .ario"s )--2&

PAPER IND$STRY IN ANDHRA PRADESH And$ra Prades$ is one of t$e most de.e!oped states in terms of paper prod" tion& In often pro.ided e@ e!!ent p!atform for t$e de.e!opment of paper mi!!s& T$e state no% ontains ), paper mi!!s
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WAGE AND SALARY ADMINISTRATION

s attered a!! o.er t$e state& And$ra Prades$ stands (th in t$e n"mber of paper mi!!s it ontains& In And$ra Prades$ o"t of t$e ), mi!!s it passes( ,2 mi!!s are f"n tionin# K"ite effi ient!y and t$e remainin# $as been an e@ eption of %or' e@ e!!en e( as t$ey remained !osed t$ese days& And$ra Prades$ in ontrast to its first position in terms of

N"mber of paper mi!!s stand )nd in terms of apa ity& T$e insta!!ed apa ity of And$ra Prades$ is E&E;!a'$ tones per ann"m& IND$STRY S%ENARIO Paper ind"stry s"pp!ies .ario"s types of paper board/s Spe ia!ty paper to a n"mber of end "sers& T$ese end "sers in !"ded #o.ernment( prod" t is ed" ation( intimate!y ompanies !in'ed %it$ in.o!.ed "!t"ra! e@ !"si.e!y and in

pa 'a#in#( ne%s paper( ma#a8ines et de.e!opment of t$e o"ntry&

"se of paper and paper e onomi a!

T$e demand for paper depends on a n"mber of intan#ib!e fa tors s" $ as pop"!ation( nationa! in ome( #ro%t$ of !itera y( and spread of ed" ation in to distant parts of t$e !i.in# and ind"stria! prod" tion& Prod" ts of Indian paper mi!!s are main!y paper and paper boards& T$ese in !"de #!assine paper( #rease proof paper( ins"!ation papers( and papers( ?ero@ papers(
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o"ntry( standard of

arbon paper(

oated boards( ti 'et board( trip!e@ board( $e ' papers( !ottery omp"ter stationery( et & T$ese different

stra% boards& Paper boards( ti 'et board(

WAGE AND SALARY ADMINISTRATION

prod" ts are "sed in different ind"stries !i'e printin# of ne%s print( pro essed( foods( toba o pa 'in# orr"#ation( arbon ma'in# ba#s( so 's ind"stries( te@ti!e ind"stries and many ot$er/ ind"stries& E.ery paper mi!! in India does not prod" e a!! prod" ts of t$e Indian paper ind"stry&

Consu2!tion
%aper industry is of cyclical nature and the global paper industry being on come bac! trail) the Indian paper Industry has also started loo!ing up* India=s per capita consumption of paper is around 3*;; !g) hich is one of the lo est in the orld* ,ith the e<pected increase in literacy rate and gro th of the economy) an increase in the per capita consumption of paper is e<pected* The demand for upstream mar!et of paper products li!e tissue paper) tea bags) filter paper) light eight online coated paper) medical grade coated paper) etc* ) is gro ing up* These developments are e<pected to give fillip to the industry

TYPES OF RAW MATERIALS Prod" tion of paper is main!y dependent on 6types of ra% materia!s t$at are "sed in prod" tion of paper and different paper Prod" ts are

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WAGE AND SALARY ADMINISTRATION

,& Wood )& A#ro 6& Waste

O"t of different types of ra% materia!s a.ai!ab!e for prod" tion of paper and paper prod" ts in India& A#ros are most fa.orab!y "sed by t$e ind"stries& T$e se!e tion of ra% materia! is dependent "p on t$e ind"stry& onditions pre.a!ent in and aro"nd t$e

E)TERNAL FA%TORS T$e e@terna! fa tors t$at affe t t$e se!e tin# of ra% materia!s are t$ose re!ated to t$e s"rro"ndin# t$e p!ant possesses& T$e And$ra Prades$ paper mi!!s !td& *e a"se of t$e a.ai!abi!ity of !ot of 9orest areas aro"nd RaGa$m"ndry $as s" essf"!!y adopted t$e te $no!o#y of paper prod" tion %$ere t$e ra% materia! is %ood& *y "sin# %ood( t$e mi!! an red" e t$e ost of transportation& T$ere it is K"ite !ear and e.ident t$at ra% materia! se!e tion is P"re!y dependent "pon many e@terna! fa tors& Interna! fa tors are tota!!y dependent "pon t$e type of ra% materia! "sed&

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WAGE AND SALARY ADMINISTRATION

For e*J In

ase of

APPM MILL

!td(

%$ere t$e

ra%

materia! is Wood( it $as to introd" e a pro ess pro ess5( %$i $ Is essentia! on!y in

a!!ed 3 r"s$in#

ase t$e ra% materia! is %ood&

T$erefore ra% materia! an be a de idin# fa tor for a set of interna! fa tors( s" $ as prod" tion strate#ies( prod" tion te $no!o#ies and many more ot$er fa tors&

O"t of different types of ra% materia!s a.ai!ab!e( a #ross is "se by fo"rteen ompanies in And$ra( %$i!e on!y fo"r ompanies are "sin# %ood as t$eir ra% materia!& T$e remainin# t$ree are "sin# %aste as t$eir ra% materia!&

PRI%E %ONTROL: T$e paper prod" tion of ontro! order( ,<:E ad.erse!y affe ted t$e efforts

of de.e!opin# ne% .arieties of papers and board and distrib"ted t$e ertain estab!is$ed .arieties& 4nder t$is order( t$e Mi!!s are reK"ired to man"fa t"re 6-F of t$eir tota! o"tp"t in t$e form of %$ite printin# paper and se!! t$e same to a!!ot at on essiona! rate of ):2-M>per ton( %$i $ is non>rem"nerati.e& Ho%e.er d"e to poor of ta'e by t$e respe ti.e ons"mers( t$e o"ntin# Ind"stry $ad to arry $"#e sto ' of t$is .ariety of paper( a Ind"stry( t$e #o.ernment permitted open mar'etin#&

2:F of tota! o"tp"t fo!!o%in# t$e representation made by t$e

THE APPM

WAGE AND SALARY ADMINISTRATION

Sa!es ta@ on ession %as a.ai!ab!e "p to t$e end of ,<:7& *"t In No. ,<:7( t$e #o.ernment $as as'ed to set "p immediate!y t$e Open mar'et onditions impro.ed& T$e ind"stry ir !es estimated t$at an e@ ess prod" tion of ot$er .arieties of paper& T$e off ta'e %as poor and pri e dropped by 2--M> to 7--M> a ton on an a.era#e& 4nder t$e paper ontro! order ,<:<( prom"!#ated %it$ printin# ontro!& Hind"stan ontro! on t$e paper ommon paper b"t a!so bro"#$t its distrib"tion "nder ons"mers( p"b!is$er and printers& T$e !atest

Paper +orporatio( %$i $ %o"!d arran#e for t$e s"pp!y of paper b"!' Ind"stry $as fo!!o%ed s$arp in rease in t$e pri e of

.arieties of %ritin# and printin# paper& T$ese %ere reports of trade $ar#in# premises o.er and abo.e t$e !isted pri es of most ommon .arieties of paper& E.en t$e %$ite printin# paper t$at %as "nder t$an stip"!ated& 4nder t$e paper ontro! order ,<:<( prom"!#ated on L"ne ream o.er paper ontro! %as

often fo"nd to be bo!d in t$e open mar'ets at states m" $ $i#$er

6-(,<:< t$e e@>fa tory pri e of %$ite printin#

%as fi@ed at 6---M> per ton and 6;:2M> per ton respe ti.e!y& T$is order a!so empo%ered t$e "nion #o.ernment to iss"e dire tions to t$e man"fa t"re re#ardin# disposed of t$eir sto 's of bot$ t$ese .arieties on t$e #o.ernment not on!y in reased t$e pri e of %$ite Printin# paper b"t a!so bro"#$t its distrib"tion "nder ontro!&

PROM+LEMS OF PAPER IND$STRY

THE APPM

WAGE AND SALARY ADMINISTRATION

Many en.ironmenta! iss"es are asso iated %it$ t$e paper Ind"stry& T$e Indian paper ind"stry is b!amed for "sin# too m" $ of Water D !ar#e dis $ar#e of o!ored eff!"ent( presen e of $!orinated by prod" ts in t$e eff!"ent system( odor ontro! a id deposition and sto ' emission( soi!ed %aste& T$e Indian paper ind"stry is b!amed for %$i $ o"!d "ttin# do%n of trees(

reate e onomi a! imba!an e& T$e Indian #o.ernment

$as not ta'en effe ti.e steps in en o"ra#in# t$e ind"stry to "se ot$er so"r es of ra% materia!s& T$e #o.ernment on t$e ot$er $and too' steps and de isions to ontro! "ttin# do%n of trees& T$is rested a sort of dis ontent in paper ind"stry& Inno.ati.e p!ans are in pro#ress to asso iate s"#ar ane mi!!s %it$ t$e paper mi!!s& T$is p!an $as ome into e@isten e& So as to a.oid e@tra po!!"tion bein# in "rred by t$e paper mi!!s %i!! be "sed by t$e s"#ar ane mi!!s( %$i $ are asso iated %it$ t$em&

F$T$RE PROSPE%TS OF PAPER IND$STRYJ

THE APPM

WAGE AND SALARY ADMINISTRATION

T$e ind"stry s$o"!d be $e!ped to optimi8e apa ity "ti!i8ation t$ro"#$ reno.ation D moderni8ation of e@istin# !ar#e mi!!s& In t$is onne tion( t$e pri e fi@ed by t$e #o.ernment for .ario"s types of Paper %ere "nrea!isti and did not pro.ide for reasonab!e ret"rns on apita!& As a res"!t t$e ind"stry %as $ard p"t to p!o"#$ ba ' f"nds for e@pansions and moderni8ation %it$ t$e remo.a! of pri es and distrib"tion ontro!s on %$ite printin# paper in ,<;;( paper ind"stry %as ab!e to #et rem"nerati.e pri e& One of t$e most serio"s prob!em is fa in# t$e paper is t$e rapid dep!etion of fibro"s ra% materia!s& *amboo t$e main stay a!t$o"#$ some s" ontin"o"s to be ess $as been a $ie.ed in t$e "se

of mi@ed $ard %oods ba##a#e "ne onomi a! re!ian e $as to be p!a ed on "n on.entiona! ra% materia!s s" $ as $ard %ood& Paper mi!!s may $a.e to "nderta'e p!antation( forests in t$eir s"rro"ndin# areas& In re ent years( t$e prod" tion of paper board $as re orded moderate b"t steady pro#ress& India is no% se!f s"ffi ient in t$e prod" tion of most .arieties of paper board& On!y ertain .arieties of paper and paper board are bein# imported& Ho%e.er a maGority of paper mi!!s sti!! "se o"t dated te $no!o#y ma $inery& To $e!p t$e ind"stry( t$e #o.ernment $as ta'en .ario"s meas"res( %$i $ in !"de e@ ise to sma!! "nits( abo!ition of stat"tory ontro! o.er prod" tion& "stom d"ty on t$e import of paper #rade p"!p and %ood $ips remo.a! of

THE APPM

WAGE AND SALARY ADMINISTRATION

The Indian %aper Industry accounts for about /*2G of the

orld=s production of

paper and paperboard* The estimated turnover of the industry is 's 65);;; crore E?S" 5*05 billionF appro<imately and its contribution to the e<che-uer is around 's* 60/4 crore E?S" ;*20 billionF* The industry provides employment to more than ;*/6 million people directly and ;*13 million people indirectly* The industry as delicenced effective from Buly) /00C by the 9overnment of India. foreign participation is permissible* Most of the paper mills are in e<istence for a long time and hence present technologies fall in a most modern* The mills use a variety of ra material vi+* ood) bamboo) recycled fibre) bagasse) heat stra ) rice hus!) etc*. appro<imately 15G are based on chemical pulp) 33G on recycled fibre and 6/G on agro(residues* The geographical spread of the industry as ell as mar!et is mainly responsible for regional balance of production and consumption* ,ith added capacity of appro<imately ;*4 million tons during 6;;C(;4 the operating capacity of the industry currently stands at 0*1 million tons* "uring this fiscal year) domestic production of paper and paperboard is estimated to be C*2 million tons* $s per industry guesstimates) over all paper consumption Eincluding ne sprintF has no pegged at 4*1 !g* touched 4*42 million tons and per capita consumption is ide spectrum ranging from oldest to the

THE APPM

WAGE AND SALARY ADMINISTRATION

"emand of paper has been hovering around 4G for some time* "uring the period 6;;6(;C hile ne sprint registered a gro th of /1G) ,riting H %rinting) Containerboard) Cartonboard and others registered gro th of 5G) //G) 0G and /G respectively* So far) the gro th in paper industry has mirrored the gro th in 9"% and has gro n on an average 2(C per cent over the last fe years* India is the fastest gro ing mar!et for paper globally and it presents an e<citing scenario. paper consumption is poised for a big leap for ard in sync consumption ith the economic gro th and is estimated to touch /1*05 is that gro th in paper million tons by 6;/5(/2* The futuristic vie consumption by one !g per capita a C$9' of 4*3G trend* Foreign funds interest in the Indian paper sector is gro ing* IFC) the investment arm of the ,orld 8an! is already associated ith at least three of the I%M$ member mills*

ould be in multiples of 9"% and hence an increase in ould lead to an increase in demand of / ill gro at a C$9' of 0G till a gro ing

million tons* $s per industry estimates) paper production is li!ely to gro at hile paper consumption 6;/6(/1* The import of pulp H paper products is li!ely to sho

THE APPM

WAGE AND SALARY ADMINISTRATION

C#$%T&' (III
COM%$N7 %'OFIL&

THE APPM

WAGE AND SALARY ADMINISTRATION

CORPORATE PRO'$,E $%%M is one of the largest integrated pulp and paper mills in the country updating its processes ith the state(of(the(art technologies from time to time to ater) reduce protect and regenerate natural resources) conserve energy and pollution and improve productivity* The mill as established as Carnatic paper mills limited ay bac! in

/06/and production started in /063* In /052)

ith the formation of $% state) state

govt* has ta!en over the mill and started running the mill under the name T#& $N"#'$ %$%&' MILLS* 8ut subse-uently it made into a joint stoc! company in /023 by selling it to Dol!ata based 8angur group* The Company as incorporated on 60th Bune /023 as IThe $ndhra %radesh

%aper Mills Ltd*I $t 'ajahmundry* The Certificate of Commencement of business as obtained on /;th Buly /023* The $ndhra %radesh %aper Mills Ltd* as formed ith infusion of funds and high calibre management of the Calcutta) ell(!no n industrial house of 8angurs of ind energy ho have interests in te<tile manufacturing) tea plantation)

generation and trading and investment business other than paper*

,ithin 3 years of ta!e over) the production as increased from 1);;;T%$ to 1;);;;T%$* From time to time the company has been investing and increasing its capacity and updating its processes and technologies for sustainable gro th and development*
THE APPM

WAGE AND SALARY ADMINISTRATION

In 6;;/) Coastal %apers Ltd) an agri(residue and

aste paper based mill

situated at madhavarayudu palem) near !adiam rail ay station) about 6;!m from 'ajahmundry as ta!en over by the company* The production capacity of both the units put together is /)C3);;; T%$* There are eight paper machines installed at the t o locations hich produce ell as

papers of different M*F H M*9 varieties in the range of 6/ to 65; 9SM as

ne sprint* ,ith the commissioning of largest continuous digester in the country) the total bleached pulp production at $%%M E?nit 'ajahmundryF is /)4/)5;; T%$* The paper production capacity ill increase to 6)3/);;; T%$ after commissioning of 2C;;; T%$ paper machine hich is undererection* The company provides direct employment to over 3;;; families* Moreover) the company provides livelihood to over /;);;; families through indirect job opportunities* In 6;;4(6;;0) the turnover is rs*25)C11*10la!hs* The sales volume is /)C;)610tons E paper( /)14)21;MT H pulp( 1/)2;0MT F &<ports J /3)532MT 9ross profit J C344*;5la!hs Net profit J /C33*C1la!hs

THE APPM

WAGE AND SALARY ADMINISTRATION

They e<port for /1 countries* They are /* Malaysia 6* Sudan 1* Spain 3* Nigeria 5* &ngland 2* Sri lan!a C* Nepal 4* Ne +ealand 0* &gypt /;*$ustralia //*"ubai /6*?*a*e /1*&thopia

Resear3" an4 4e5elo!2ent

It have helped in ensuring higher survival percentage of seedlings) higher productivity per unit area and reduction in rotation cycle* The mill has introduced lo farming community* cost planting techni-ues for casuarinas bare rooted hich has been idely accepted by the seedlings and subabul stumps

THE APPM

WAGE AND SALARY ADMINISTRATION

$ctivities in the area of research and development have enabled the mills to introduce high yielding) decease resistance clonal samplings) of casuarinas and eucalyptus) hich ould ensure silvicultural gains apart from -uality fibre from plantation* The clonal research activities have been e<tended further to the mill catchment areas of $ndhra %radesh in order to meet the demand of the beneficlaries* +oar# of Dire tors of the %o,pan-: S$ri L&N&*an#"r time dire tor
,&

+$airman D %$o!e Mana#in# dire tor chartered accountant "irector professional manager member of audit committee) committeeof directorsEfinance) commercial H M"%F

)& Smt& A!'a *an#"r 1* Shri N*Srinivasan 3* Shri '*C*Sarin 5* Shri '*>* 'aghavan 2* Shri %*B*>* Sarma

C* Shri %*D*%aul

"irection of international ventures H travels

;& S$ri RaGi. 1apasi a o"ntant <& S$ri M&1& Tara Dire tor >>

+$artered Mana#in#

THE APPM

WAGE AND SALARY ADMINISTRATION

Member of ommittee dire torHfinan eI( ommittee of dire tors H ommer ia!DMDPI and in.estor/s #rie.an e ommittee of t$e ompany& ,-& Ms& S$eeta! *an#"r Dire tor H+ommer ia!I of ommittee of dire torsHfinan eI(member ommittee of dire tors H ommer ia!DMDPI and in.estors #rie.an e ommmittee ,,& S$ri& Dire tor H+orporateI S$reeyas$ *an#"r

,)& S$ri& P& 1& S"ri HOperationsI

Dire tor

O4R MANAGEMENT TEAM

Mr& M&1&Tara (Mana#in# dire tor Mr&S$eeta! *an#"r( Dire tor H ommer ia!I Mr& S$reyas$ *an#"r( Dire tor H orporateI Mr& P&1&S"ri( Dire torHoperationsI Mr& +&S&M"rty( Sr&Ci e PresidentH ProGe tsI Mr& +& Prab$a'ar( Sr&Ci e Pre identH+AI D +ompany se retary Mr&E&Sairam( Sr&Ci e PresidentH9inan eI D +9O Mr& Amit Me$ta( Prin ipa! e@e "ti.e to $airman&

THE APPM

WAGE AND SALARY ADMINISTRATION

THE APPM

WAGE AND SALARY ADMINISTRATION

$n 2..4 2..5 $ special a ard by C$%&KIL Esponsored by Ministry of commerce H industry) 9overnment of India F in recognition of outstanding e<port performance in respect of paper and paperboards for the year 6;;3 L 6;;5* ,ater efficient unit shield H certificate for @ &<cellence in ,ater Management 6;;5 @ by CIIES'F $ndhrapradesh chapter* E?nitJ C%F Certificate of appreciation in recognition of efforts of management) staff) employees and or!ers in achieving occupational health and safety assessment series certification EO#S$S /4;;/ F by National safety council) $ndhrapradesh chapter) 6;;5* E ?nit J $%%M F

$n 2..3 2..4 The "istrict administration) rajahmundry a arded a certificate of commendation for assisting the administration in solving the lea!age of L%9 tan!er on a public roa) thereby avoiding a serious disaster in a busy traffic junction of 'ajahmundry to n* The company activities in the field of social forestry* The company also received a special a ard on Cth November) 6;;1 from C$%&KIL sponsored by ministry of commerce) 9ovt* of India in recognition of their outstanding e<port performance in respect of paper H paper 8oard for the year 6;;6 L 6;;1*
THE APPM

as also a arded another

certificate of commendation by the district $dministration for commendable

WAGE AND SALARY ADMINISTRATION

6A-E AN% SA,AR( A%+$N$STRAT$ON THEORET$CA, APPROACH 7Pa# in one 8or2 or anot"er is 3ertainl# one o8 t"e 2ains!rin s o8 2oti5ation in our so3iet#9 !a# is t"e 2ost i2!ortant sin le 2oti5ator use4 in our or anise4 so3iet#0 As a 2oti5ator: it be3o2es !art o8 eneral !s#3"olo i3al !roble2s0; / HA$RE: -H$SA,,$ AN% PORTER

,age and salary represent a substantial part of total cost of most of the organisation* It is not only the concern of the organisation but is e-ually important for the or!ers to maintain their social image* ,ages are directly related to hile salary is the compensation for services rendered by the persons production

hose output is difficult to be measured*

One of the most important and difficult problem of the management is that of determining the rate of the monetary compensation i*e**) the control of employee benefits as indirect compensation* %erformance appraisal is the most important basis for determining the level of compensation of individual employees* age and salary levels* Monetary payments may be regarded as direct compensation and

THE APPM

WAGE AND SALARY ADMINISTRATION

A !ro!er s#ste2 o8 3o2!ensation "el!s to a3"ie5e t"e 8ollo<in = EaF To attract capable employees) EbF To motivate them to ard superior performance) EcF To retain their services over an e<tended period of time* Ob>e3ti5es = To gather information relating to job description) job specification) and employee specifications of various jobs in an organi+ation* $ age is the remuneration paid) for the service of labour in production) periodically to an employee @ ageA usually refer to the hourly rate paid to such group as production and maintenance of employees* On the other hand) salary normally refer to the ee!ly or monthly rates paid to clerically) administrative and professional employees* +a>or 8un3tions $pproval findings* 'evie and recommends of basic age and salary structure* #elp in the formulation of age policies* Co(ordination and revie of relative departments rates to ensure conformity* To !no about budget estimates for age and salary adjustments and increases* or recommendation to management on job evaluation method and

THE APPM

WAGE AND SALARY ADMINISTRATION

PR$NC$P,ES O' 6A-E AN% SA,AR( A%+$N$STRAT$ON= The generally accepted principles governing the fi<ation of areJ There should be a definite plan to ensure that differences in pay of jobs are based up on variations in job re-uirements) such as s!ill) effort) responsibility or job or or!ing conditions and mental and physical re-uirements* age and salary

The general level of ages and salaries should be reasonably inline ith that prevailing in the labour mar!et*

$ plan should carefully distinguish bet een jobs and employees* $ job carries a certain age rate) and person is assign to fill it at that rate* &-ual pay for e-ual or! that is if t o jobs have e-ual difficulty) the pay should be the same regardless of ho fills them*

suitable practices should be adopted for the reorgani+ation of individual difference in ability ad contribution* For some units) this may ta!e the form or rate ranger* ,ith in grade increases) in other) it may be a age incentive plan) in still othersJ it may ta!e the form of closely integrated se-uences of job promotions*

There should be clearly establish procedure for hearing and adjusting complaints*
THE APPM

age

WAGE AND SALARY ADMINISTRATION

The employees and trade unions) one should be informed about the procedure used to establish o n position and of the age rages* &very employee should be informed of his ages and salaries structures* Secrecy in age matters

should not be used as a cover(up for unreasonable age programme*

The

age should be sufficient to ensure for the

or!er and his family age

reasonable standard of living* ,or!er should receive a guaranteed minimum to protect them against condition beyond their control*

The age and salary structure should be fle<ible so that changing conditions can be easily met*

For revision of

ages) a

age committee should al ays be preferred to the

individual judgment) ho ever unbiased) or a manager*

The

age and salary payments must fulfill a

ide variety of human needs)

including the need for self(actuali+ation*

Nature an4 !ur!ose=

THE APPM

WAGE AND SALARY ADMINISTRATION

The basic purpose of maintain an e-uitable

age and salary administration is to establish and age and

age and structure* it = s second objective is the ith the financial aspects of needs) motivation

establishment and maintenance of an e-uitable labor cost structure* The salary administration is concerned

and re ards* Managers therefore) analy+e and interpret the needs of their employees so thcat re ard can be individually to satisfy these needs*

CO+PENSAT$ON: 6A-E?SA,AR(

Compensation may be defined as money received in the performance of or!) plus many !inds of benefits and services that organi+ation provide their employees* Money is include under direct compensation) and may consist of life accidents and health insurance* CONCEPTS O' 6A-ES ,hile evolving) age policy 1 concepts of ages namely Minimum age Fair ages Living ages

These are broadly based on the or!ers) capacity of the employees to pay H the several economic conditions prevailing in a country*

THE APPM

WAGE AND SALARY ADMINISTRATION

+$N$+&+ 6A-E

Minimum

age is the one)

hich provide not merely for base or!er*

substance of life) also for the preservation of the efficiency of the For this purpose) the minimum

age must also provide for some measure of or!ers* 8ut is usually ages ) besides

education) medical re-uirements and amenities* Minimum age may be fed by an agreement bet een the management and the needs of determined through legislation* In the fi<ation of minimum of the jobs and so on) are also considered*

or!ers) other factors li!e ability of the concern to pay) nature

'A$R 6A-ES

Is understood in 6 ay in a narro a ider sense it

sense)

age fair if it is e-ual to the

rate prevailing in the same trade and in the neighborhood for similar or! in ill be fair if it is e-ual to the predominant rate for similar age can be fi<ed or! throughout the country and for trades in general fair only be comparison ith an standard ages*

,$*$N- 6A-ES

THE APPM

WAGE AND SALARY ADMINISTRATION

Living

age is a step of higher than fair

age** living

age may be

described as one

hich should enable the earner to provide for himself M

herself and his M her family not only the base essentials of life li!e food) clothing and shelter) but a measure of frugal comfort including education for children ) protection against ill health) re-uirements o essential social needs) andM or measure of insure against the more important misfortunes including old age* $ living age must be fi<ed considering the general economic conditions of the country* The concept of living age) therefore) varies from country* In India) minimum is determined mainly for s eated*

'ACTORS $N',&ENC$N- 6A-E SA,AR( STR&CT&RE Organi+ation=s ability to pay Supply and demand of labor The prevailing mar!et rate The cost of living Living age %roductivity Bob re-uirements Managerial attitudes Trade union=s bargaining po er %sychological and sociological factors

THE APPM

WAGE AND SALARY ADMINISTRATION

T#!es o8 <a es = Time age J this is a oldest and common method of fi<ing of ?nder this system) certain period of time* Merits. /* It is simple) for the amount earned by a or!er can be easily calculated* 6* $s all the or!men employed for doing a particular !ind of or! receive the or!ers are paid according to the ages*

or! done during a

same ages) it ill avoid jealous among them are avoided* %iece ageJ ?nder this system) or!ers are paid according to the amount of or!

done or the no of units completed) the rate of each unit being settled in advance) irrespective of the time ta!en to do to the tas!* Balan3e or 4ebt 2et"o4J This is a combination of time and piece rate* The hourly or a day rate calculated at the piece rate e<ceeded the amount) hich he or!er is guaranteed an or!er ould have earned if

ith an alternative piece rate* If the earnings of a

paid on time basis) he gets credit for the balance i* e*) the e<cess piece rate earnings over the time rate earnings* Is his piece rate earnings are e-ual to his time rate earnings* The -uestion of e<cess payment does not arise* ,here piece rate earning are less than time rate earnings) he is paid on the bases of the time rateJ but the e<cess) hich he is played) is carried for ard as a debt against him to be recovered from my future balance of piece or! earnings overtime or! earnings* The system presupposes the fi<ation of time and piece rate on a scientific basis*

THE APPM

WAGE AND SALARY ADMINISTRATION

6A-E %$''ERENT$A,S

,ages differ in different employments or occupations) industries and localities) and also bet een persons in the same employment or grade* One there fore comes across such times occupational age differentials) inter L industry) inter firm) area or geographical differentials and personal differentials* ,age differentials have been classified in to three categories*

First) the differentials that can be attributed to imperfection in the employment mar!ets) such as the limited !no ledge of alternative job opportunities available else occupational or inter firm mobility of or!ers in regard to here. obstacles to geographical)

or!ersJ or time lags in the adjustment of

resource distribution and changes in the scope and structure of economic activities* &<amples of such age differentials are inter industry) inter firm) and geographical inter area age differentials* Second) the prejudices and age differentials) hich originate in social values and

hich) are deeper and more persistent than economic factors* ,age

differentials by se<) age) status or ethic origin belong to this category*

Third) occupational

age differentials)

hich

ould e<ist even if

employment mar!ers ere perfect and social prejudices) ere absent*

THE APPM

WAGE AND SALARY ADMINISTRATION

In other ords) age differentials may beJ /* Occupational differentials or differentials based on s!ills. 6* Inter( firm differentials. 1Inter( area or regional differentials. 3inter( industry differentials. 5* "ifferentials based on se<*

6A-E %$''ERENT$A,S $N $N%$A

"ue to paucity of relevant data on

age differentials) it is not possible to age structure may be

analy+e them in India* 7et the main features of the Indian because of job selling) individual bargaining and

stated thus @as a characteristic of unorgani+ed labour mar!) personal differentials age discrimination have tendered to persist in India) especially in the organi+ation sector of the economy) and even in the organi+ed and un organi+ed sections in industryA*

The tendency appears to bet to

ards the elimination of

age differentials

because of government interference through the fi<ation of the minimum ages and) of late) through the appointment of age boards and pressures from trade

unions* ,age differentials by se< are -uite common* 8oth economic and social

THE APPM

WAGE AND SALARY ADMINISTRATION

reasons account for this phenomenon* "espite the fact the constitution of India enjoins upon the state to direct its policy to ards securing e-ual pay for e-ual or! for men and omen omen) a ards of some industrial tribunals provided for omen or!ers support a smaller family that the cost of ere -uite important and fre-uent in the past ever) there has been a tendency hich tend to or!ers is higher * $s regards inter firm and inter industry different ground that the employing

differentials in India) the formers

particularly in the jute mill industry* Of late) ho

to ards the elimination of inter firm differentials* The forces)

eliminate inter( personal differentials in the country) operate in the case as ell*

E@EC&T$*E CO+PENSAT$ON P,ANS

For the higher management) salaries are influenced by the si+e of company) by the specific industry) and in part by the contribution of the compensation paid to the e<ecutives* The industries that are more highly constrained by governmental regulation E ban!s) life insurance) air transport) rail ays) roads) public utilitiesF pay relatively less than those that are more free to carry on their business E private firms F*

Straight salaries) bonuses) stoc! purchase plans and profit sharing are used to compensate major e<ecutive* Of these) the straight salary is the most common

method the salary is determined by mutual agreement bet een the individual and

THE APPM

WAGE AND SALARY ADMINISTRATION

employer* The sales affected) the cost of production) reduction in e<penses and the profits made are also ta!en into account*

8onus are also aid to e<ecutives at a certain percentage of the profits* The bonus may average form 1;G to 5;G of the basic salary* The bonuses operate most effectively in increasing motivation hen the follo ing conditions e<ist* /* The paid is closely related to the level of individual performance* 6* The amount paid after ta<es represents a clearly noticeable rise above the base salary level* 1*The amount paid is closely related to the level of company performance* 3* The amount paid is tied into the base salary in such a earnings are e-uitable both in relation and e<ternal standards* 5* The amount paid is reduced drastically hen ever an individual e<periences a ay that the combined

real and continuing decrease in performance effectiveness* 2* The amount paid is based on an easily understandable system of allocation) and the individual is provided bonuses and performance* More over) e<ecutives are compensated for various e<penses incurred by them) for ta<ation ta!es a ay a major portion of their salary* Such payments are in the form of( E aF Medical care* E b F Counsel and accountants to assist in legal) ta< and financial problems*N
THE APPM

ith complete information on the relationship bet een

WAGE AND SALARY ADMINISTRATION

E c F Facilities for entertaining customers and for dinning out* E d F Company recreational are s imming pool and gymnasium* E eF The cost of education and training of e<ecutives) scholarships for their children) and allo ances for business maga+ines and boo!s. and E F F Free ell L furnished accommodation conveyance and servants) all these go

under the head of per-uisite*

6A-E PO,$C( $N $N%$A

,age policy refers to all systematic efforts of the government in relation to national age H salary system* It includes orders) legislations and so on to regulate the levels or structure or age H salary ith a vie to achieving economic H social objectives of the government*

&specially the objectives of age policy are. /* To obtain for the or!ers a just share of the fruits of economic development* 6* To set minimum ages for or!ers hose bargaining position is ea!*

1* To bring about a more efficient allocationH utili+ation of human resources through age H salary differentials*

THE APPM

WAGE AND SALARY ADMINISTRATION

3* To abolish malpractice and a buses in age H salary payments* The first strep to ards the evolution of payment of age policy as the enactment of the

age act) /012* The main objective of the act is to prohibit delay or

ith holding of ages legitimately due to employees*

The ne<t step

as the passing of the industrial dispute act) /03C hich

authori+ing all the state governments to setup industrial tribunals) development that leads to the evolution of age policy rates of ages to

ould loo! into disputes relating to remuneration* $nother notable as the enactment of oolen) carpet the minimum as act) /034* The purpose of the act is the fi<ation of minimum or!ers in s eated industries such as ma!ing) floor mills) tobacco manufacturing) oil mills) plantations) -uarrying) micas agriculture and the li!e* The act as amended several times to ma!e it applicable to more and more industries* These come the e-ual remuneration on the bars of religion) region) or se<

THE APPM

WAGE AND SALARY ADMINISTRATION

C#$%T&' L >
"$T$ $N$L7SIS H INT&'%'&T$TION

/* Opinion regarding present age and salaries administration* SI*No / 6 Opinion 7es No Number of respondents $ggregate percentage 10 4 C4G /2G

THE APPM

WAGE AND SALARY ADMINISTRATION

To Some &<tent Total

1 5;

2G /;;G

INT&'%'&T$TION J From the above analysis I have found that /2G of the employees are not satisfied C4G are satisfied to some e<tent*

6* &mployee=s opinions regarding minimum ages and salaries* SI*No / 6 1 Opinion 8ad %oor 9ood Number of respondents $ggregate percentage /; ;C 1; 6;G /3G 2;G

THE APPM

WAGE AND SALARY ADMINISTRATION

&<cellent Total

;1 5;

;2G /;;G

INT&'%'&T$TION J From the above analysis I have found the 13G of the employees are not satisfied 2;G feel good) ;2G feel e<cellent) and satisfied by the minimum given by the organi+ation* ages

1* 7our opinions on night allo ances given by organi+ation* SI*No / 6 1 Opinion 8ad %oor 9ood Number of respondents $ggregate percentage ;6 ;4 14 ;3G /2G C2G

THE APPM

WAGE AND SALARY ADMINISTRATION

&<cellent Total

;6 5;

;3G /;;G

INT&'%'&T$TION J From the above analysis) I found that /2G of the employees feel that might allo ances are poor) ;3G feel bad) C2G feel good and ;3G of the employees feel that might allo ances are e<cellent*

3* &mployee opinion on attendance allo ance* SI*No / 6 Opinion Satisfied Not(satisfied Number of respondents $ggregate percentage 1; ; 2;G ;G

THE APPM

WAGE AND SALARY ADMINISTRATION

1 3

9ood &<cellent Total

/5 5 5;

/5G /;G /;;G

INT&'%'&T$TION J From the above analysis I have found that none of the employees are unsatisfied) 1;G feel good) /;G feel e<cellent any by all 2;G of the employees are satisfy by the attendance allo ances provided by the organi+ation*

5* &mployees opinion e-uitable age and salaries* SI*No / Opinion 7es Number of respondents $ggregate percentage 35 0;G

THE APPM

WAGE AND SALARY ADMINISTRATION

No Total

;5 5;

/;G /;;G

INT&'%'&T$TION J From the above analysis I have found that /;G of the employees are not satisfied and 0;G of the employees are satisfied by the e-uitable salaries given by the organi+ation* ages and

2* Opinions regarding job evaluation techni-ues* SI*No / 6 Opinion 7es No Total Number of respondents $ggregate percentage 3; /; 5; 4;G 6;G /;;G

THE APPM

WAGE AND SALARY ADMINISTRATION

INT&'%'&T$TION J $ny company must or! hard to ards setting of the job evaluation ith the job evaluation techni-ues* Other techni-ues* &mployees must be satisfied

ise they may not concentrate on or!* From the above analysis it is observed that employees are unsatisfied and 4;G employees are satisfied by the job evaluation techni-ues follo ed by the organi+ation) 6;G not satisfied*

C* &mployees satisfaction polices and %ractices* SI*No / 6 1 Opinion Satisfied Not(satisfied 9ood Number of respondents $ggregate percentage 15 2 C C;G /6G /3G

THE APPM

WAGE AND SALARY ADMINISTRATION

&<cellent Total

6 5;

3G /;;G

INT&'%'&T$TION J From the above analysis a brief over vie is observed that /6G of the ages and salaries employees are not satisfied) /3G feel good) none feel e<cellent and C;G of the employees are satisfied by the policies and practices of follo ed by the organi+ation*

4* &mployee satisfaction on %ension 8enefits* SI*No / 6 1 Opinion Satisfied Not(satisfied 9ood Number of respondents $ggregate percentage 65 5 5 5;G ;/G /;G

THE APPM

WAGE AND SALARY ADMINISTRATION

&<cellent Total

/5 5;

1;G /;;G

INT&'%'&T$TION J The above table gives a brief over that /;G of the employees are not satisfied) /;G feel good) /;G feel e<cellent and by all 5;G of the employees are satisfied by the pension benefits provided by the organi+ation*

0* &mployee opinions insurance benefits* SI*No / 6 1 Opinion 7es No 9ood Number of respondents $ggregate percentage 1; ; /5 2;G ;G 1;G

THE APPM

WAGE AND SALARY ADMINISTRATION

&<cellent Total

5 5;

/;G /;;G

INT&'%'&T$TION J From the above analysis) I observed that the employees are not satisfied) 1;G feel good) /;G feel e<cellent and by all 2;G of the employees are satisfied by the insurance benefits provided by the organi+ation*

/;* Opinion about financial position of the company* SI*No / 6 1 Opinion 9ood &<cellent 8ad Number of respondents $ggregate percentage 5 65 5 /;G 5;G /;G

THE APPM

WAGE AND SALARY ADMINISTRATION

%oor Total

/5 5;

1;G /;;G

INT&'%'&T$TION J From the above analysis) it is observed that /;G of employees feel the financial position of the company is good) 5;G of employees feel e<cellent) 65G employees feel bad and /;G feel poor*

//*Opinion of the about e-ual pay for e-ual or!* SI*No / 6 Opinion 7es No Total Number of respondents $ggregate percentage 35 5 5; 0;G /;G /;;G

THE APPM

WAGE AND SALARY ADMINISTRATION

INT&'%'&T$TION J From the above analysis) it is observed that 0;G of employees are satisfied H /;G of employees are not satisfied ith e-uitable ages*

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WAGE AND SALARY ADMINISTRATION

C#$%T&'(>I
FIN"IN9S H S?99&STIONS

'$N%$N-S

THE APPM

WAGE AND SALARY ADMINISTRATION

From 4;=s on ards $%%M started @Farm ForestryA ith a future vision of increasing the bamboo production hich is the main ra material for paper preparation* $ special type of paper !no n as @&lemental Chlorine Free %aper is developed by $%%M in hich Chlorine is not used as the bleaching agent* >arious types of allo ances are given in order to motivate the employees or!ing out there in the organisation* These allo ances are made available to both ,or!men and Bunior staff members* $nd for those ho are decovered from &SI) 4G of annual benefit ill be given to Medical purposes* One of the most difficult systems of calculating the bonus amounts is follo ed in this organisation hich is the @Set On and Set OffA model* $%%M has 13 mega att plant and /; fire mega att turbines for its self po er generation* Out of the total po er generated) an amount of 5 mega att po er is given to the government*

THE APPM

WAGE AND SALARY ADMINISTRATION

S&--ESS$ONS

The overall study about the ,ages and Salary $dministration in $%%M gives an detailed account of the different communication patterns among the employees in the organisation) the different components of salary and their calculations) the systems follo ed for alloting the money) the various allo ances) benefits that are made available to the employees in the organisation*

THE APPM

WAGE AND SALARY ADMINISTRATION

B$B,$O-RAPH(

NA+E O' THE BOOA /* %&'SONN&L M$N$9&M&NT 6* &SS&NTI$LS OF #?M$N '&SO?'C&S M$N$9&M&NT $N" IN"?ST'I$L '&L$TIONS 1* #?M$N '&SO?'C& "&>&LO%M&NT 3* #?M$N '&SO'C& "&>&LO%M&NT 5* %&'SONN&L M$N$9&M&NT 6ebsites = <<<0 oo le03o2 <<<0<iBi!e4ia03o2 )ournals: re!orts: !ro5i4e4 b# t"e APP+

A&THOR C*8* Mamoria

%*S?88$'$O 8is ajeet patnaya! %rof* T*>*'ao $run Monappa

Q&EST$ONNA$RE
THE APPM

WAGE AND SALARY ADMINISTRATION

/*$re you satisfied ith the present age and salary administration O 7es No To some e<tent age and salary structure follo ed by the

6*$re you satisfied the e-uitable organi+ation O 7es No

To some e<tent

1*#o do you feel about the job evaluation process follo ed by the organi+ation O Satisfied Not satisfied 9ood &<cellent

3*,hat are your opinions about allocation and utili+ation of human resourcesO Satisfied 5*#o Not satisfied 9ood &<cellent age and salary

ould you thin! about sound policies and practices for

administration O Satisfied Not satisfied 9ood &<cellent

2*7our opinions about minimum ages provided by the organi+ation O Satisfied Not satisfied 9ood &<cellent

C*"id you satisfied ith minimum price rate provided by the organi+ationO 7es No

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WAGE AND SALARY ADMINISTRATION

4*#o

ould you feel

ith pension and insurance scheme provided by the

organi+ation O 7es No

0*,hat is the financial position of the company O 9ood &<cellent 8ad %oor

/;*"id all the employees have e-ual pay for e-ual or! O 7es No To some e<tent

//*,hat are your opinions about night allo ances O &<cellent 9ood 8ad %oor

THE APPM