Compensation management module - 5

Prepared by:- Soni Smirali Rathod Margaret

Vision statement of GNFC

To be a technology driven, environmentally responsible Joint Sector Company manufacturing Fertilizers, Commodity and Speciality Chemicals maintaining highest standards of operational excellence and innovation for creating sustainable value for all stakeholders.

Mission Statement
We shall be the leading provider of Chemicals and Agricultural inputs through adoption of State of the Art Technologies and Business Processes; have a firm commitment to quality, environment, health and safety; enrich human resources and promote teamwork, innovativeness and integrity; achieve sustainable economic growth based on corporate excellence driven by ethical business practices, professionalism, dynamism and social responsibility.

Strategic action plan/roadmap for the coming 5 year plan.

The Companys new projects with total capital outlay of Rs. 3,975 crore are at various stages of implementation. Status of following three projects with an estimated investment of Rs. 665 crore is as under: 150 MTPD Concentrated Nitric Acid -III Plant is commissioned on 2nd May, 2011. 300 MTPD Weak Nitric Acid -II Plant is mechanically completed and is under Commissioning. Recommissioning is scheduled in July, 2011. 33 MW Co-generation Power and Steam Unit (CPSU) is scheduled to by mechanically completed by September, 2011

Role of HR in entire process

Hiring employees Creating training programs to strengthen the quality of work within an organization Handle the labor relations and dispute resolution operations Developing compensation packages, benefit materials and employee assistance programs

Reward Management integrated as follows:

Strategic integration: GNFCs total reward package helps to link its reward strategy towards institutionalization & internalization of the GNFCs vision & its core values HRM integration: GNFCs total reward system enhance +ve participative work culture by encouraging employee for innovative & creative thinking

 Reward integration: GNFCs total reward package consist the following: Leave travel concession Education Assistance Vehicle Allowance TA/HA rules Long Service Awards Provident Fund Gratuity Pension Scheme Group Personal Accident Insurance Policy Death benefit scheme Workers education scheme Quarter allotment rules Suggestion scheme

Changes in total reward policy of GNFC and the reason for it

From 2002 till 2011 major 2 settlements have been made in the existing reward system. These settlements have been made in both financial as well as nonfinancial reward elements. Basically these changes have been made to be in pace with the competitors.

Rank order awarded by co to the nonfinancial reward management elements

Performance Career development Involvement Recognition Work envt Work life balance

Reward strategies that have accelerated better team performance

Example:
TDI line project of GNFC Completed in the year 2010 For the execution of which ad hoc team was formed After the completion of the project the team was awarded

GNFCs employee engagement

GNFC believes Engaged employees work with passion and feel a profound connection to their company They drive innovation and move the organization forward
Why employee engagement is necessary
employees arent just unhappy at work theyre busy acting out their unhappiness They are putting in time, but not enough energy or passion into their work

Financial rewards existing in GNFC

Annual increments Loans and advances
Housing loan Vehicle loan Marriage loan Festival advance Food grain advance Consumer Durable loan

Non-financial rewards existing in GNFC

Educational assistance Vehicle allowance Traveling and Halting allowance Long service awards Suggestion scheme Quarter allotment Death benefit scheme Workers education scheme

Bonus scheme of GNFC

Fixed bonus is provided by GNFC And also sometimes production-linked bonus is provided to the employees The production-linked bonus is provided when promised whether the company is operating in losses

PAY-SCALES
OFFICER Grade SD
GREO-01 GREO-02 GREO-03 GREO-04 GREO-05 GREO-06

Illustrative Designation Special Director

Executive Director General Manager Addl. General Manager / CS & AGM Chief Manager / Chief Mktg. Manager /Chief Manager (HR) Sr. Manager / Sr. Mktg. Manager Manager / Mktg.Manager / Manager(HR)

Pay-Scale (Rs.) 23300-1250-42050/20100-975-23025-109027385-1205-37025/17100-860-19680-97523580-1090-32300/14600-745-16835-86020275-975-28075/12900-630-14790-74517770-860-24650 /11400-540-13020-60515440-700-21040/10150-480-11590-54013750-615-18670/-

OFFICER
Grade
GREO-07

Illustrative Designation
Dy. Mktg. Mgr. / Nursing Officer / Pers.Secy. / Sr. A/cs Officer / Sr. Admn. Officer / Sr. Chemist / Sr. Engineer Foreman / Officer Accounts Officer / Admn. Officer / Asst.Mktg. Mgr. / Chemist / Fire Officer /Officer / Engineer / Jr. Nursing Officer /LMO / Librarian / Material Officer / Sports Officer / System Analyst

Pay-Scale (Rs.)
8900-410-10130-47512030-540-16350/-

GREO-07 SPL GREO-08

8250-400-9450-46011290-510-15370/7800-360-8880-41010520-475-14320/-

GREO-08 SPL

Chargeman / Jr. Officer/ Pers. Secy.

7500-350-8550-40010150-460-13830/-

Pension schemes of GNFC

GNFC has established 2 separate Trusts One for officer & another for staff

Benefits
A member who retires on or after the normal retirement age, after having completed 5 yrs of service, shall be granted a pension commencing from the date of retirement

 Pension will be calculated at the rate of 1.75% of the pension able salary each year of service Following minimum pensions will be payable for the benefits granted under this rule
Minimum yrs of service
5 years 10 years

Minimum pension as % of pensionable salary

12% of pensionable salary 20% of pensionable salary

15 years
20 years 25 years

30% of pensionable salary

40% of pensionable salary 45% of pensionable salary

Designing Innovative and better reward schemes

Make a clear connection between performance and outcome. Develop flexible rewards systems that provide a variety of potentially attractive outcomes. Determine what rewards the employee values. Ensure that employees receive appropriate training and have the ability to perform the job successfully. Gather Commitment from Management Link the Reward to Bottom Line Results Connect the Rewards Value to the Employee Distribute Awards Fairly and Equitably