a project report
TRANSCRIPT
A Project report
On
“Preparation of Compensation”
Submitted to
JRE School of Management, Greater Noida
In
Videocon Industries limited, Gurgaon.
Prepared By
Akanksha Sharma
PGDM- III trimester
2011-2013
Guided By
Mr.Nitin Saluke & Mr. Sachin Batra (Faculty Mentor)
Mr. Amol Mandlik (Company Mentor)
2011-2013
A Project report
On
“Preparation of Compensation ”
Submitted to
JRE School of Management, Greater Noida
In
Videocon Industries limited, Gurgaon.
Prepared By
Akanksha Sharma
PGDM- III trimester
2011-2013
Guided By
Mr.Nitin Saluke & Mr. Sachin Batra (Faculty Mentor)
Mr. Amol Mandlik (Company Mentor)
2
2011-2013
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
3
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)
4
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
5
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
6
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 FAQ’s which will give a clear idea about the
benefits which will be covered under it.
INDEX7
Content Page no.Company Profile 9-20Research Methodology 20-26Introduction to project 27-36Compensation manual 37-54Operation manual 55- 75Mediclaim insurance 76-79findings 80-81Recommendations 82-83Bibliography 84-85Annexure 86
8
INTRODUCTION
COMPANY PROFILE
HISTORY
9
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
Videocon’s 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.”
Board of Directors:-
Mr. Venugopal N Dhoot
10
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 Group-
Mr. 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
Today the group operates through key sectors:
11
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
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.
12
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,
celebrity’s 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
SWOT analysis of Company
13
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.
Future Plan
14
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.
CSR activities of Videocon
15
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.
16
Why Videocon?
Why VideoconVideocon has an environment which is-
17
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.
Landmarks for Videocon:18
BCG matrix for Product:
Understanding with the help of model
19
Star (Appliances) Question marks
(Entertainment)
Cash Cow Dogs
Oil and Gas division Leasing and finance limited
Porter’s model for company
20
Videocon
Threats from New entrants in glass shell (Hotline group
Threats from substitution (LCD, plasma tech)
Threats from competitors (LG, Philips)
Bargaining power of customer
Bargaining power of suppliers
RESEARCH METHODOLOGY
21
OBJECTIVESPRIMARY 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.
22
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.
23
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 don’t 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.
2. Descriptive studies
3. Casual studies
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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. After only design
II. Before after design
III. Before after with control group design
IV. Four groups, six studies design
V. After only with control group design.
VI. Consumer panel design
VII. Exposit facto design
25
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 )
26
DATA COLLECTION
PRIMARY DATA
SECONDARY DATA
Direct personal interview Indirect personal interviewInformation from correspondentMail questionnaireQuestion filled by enumerators
Published sourcesUnpublished sourcesGovt. Publication
Report Committee & commissionsPrivate publication
Research institute
INTRODUCTION OF PROJECT
COMPENSATION MANUAL
(THEORY)
27
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 organization’s 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 employee’s income or contribute to the employee’s standard of
living. Intrinsic Rewards are derived from the workplace itself and are valued internally by the
28
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
29
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 organization’s 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 market-
competitive salaries?
30
• 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
31
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 survey’s “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 Advantages DisadvantagesBase Pay Flexibility Fixed pay commitment
Recognized job requirement Does net motivate task behaviorHighlights relative importance of job
Does not encourages citizenship Behavior
Demonstrate commitment to employee
Not self- correcting
SimplicityPerformance pay Highlights Key work behavior
and motivates actionRequires a clear system of goal setting
Acts as a control mechanism Employee prefer predictable rewards
Creates employee interest in performance
May raise compensation costs
Can support managerial strategy May distort performance toward inappropriatelybehaviors
Can be linked to organization’s ability to pay
May have unanticipated consequences.More complex to administer than base pay
Indirect Pay Can aid recruitment Costs can be substantial and/or difficult to control
Removes an incentives for unionization
Funder do not always reimburse employer for their costs
32
Favorable tax treatment for individual employee
Rigidity
Economic of scale in purchasing packages
Difficult to develop efficient and effective benefits packages
Can provide rewards which are valued more highly than their costs
Administration and communication costly
Provides employee security Does not motivate task behaviorAids employer security May encourage undesirable
behavior.Can support managerial strategy
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
induction. This way this document finds its costumer to those who are newly employed to the
operation department.
File updation
33
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 employee’s 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
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
34
mediclaim policy and also includes some FAQ’s which will give a clear idea about the benefits
which will be covered under it.
Ix
35
Compensation manual of
Videocon
1. OBJECTIVE
36
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 gradeEG TEXT ESG EMPLOYEE SUBGROUP TEXT
B Board of directors
C1 Chairman
C2 President
BD Board of directors
M Manager
M9 Director
SV Senior vice president
M8 Vice president
AV Associate vice president
SG Senior general manager
M7 General manager
M6 Deputy general manager
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M5 Assist.general manager
M4 Senior manager
M3 Manager
M2 Deputy manager
M1 Assist.manager
T trainees
MT Management trainee
ET Graduate engineer trainee
S3 Senior assistant
S1 Assistant
S0 Junior assistant
X executive
E3 Senior executive
E2 Executive
G officer
O3 Senior officer
O2 Officer
01 Junior officer
H Sub staff H1 Driver
Compensation Structure
The compensation structure of Videocon Telecommunications Ltd. Is divided into two parts:
Total Fixed Pay (TFP)
Total Variable Pay (TVP)
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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 Reimbursement
Basic Pay Medical Reimbursement
HRA Fuel Reimbursement
Conveyance Allowance Driver’s Salary Reimbursement
Child Education Allowance Car Hire Scheme
Grade Allowance
Provident Fund
LTA Reimbursement
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.
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Fast Fact
Salary
Component Limit
Payment
Process Tax Implication
Basic Pay
Fixed Limit of
40% of TCTC Monthly payout Taxable
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/-
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))
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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
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.
Eligibility: All employees who have not opted for ‘Car Hiring Scheme’.
Limit: Maximum limit of Rs 800/- per month
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Salary
Component Limit
Payment
Process Tax Implication
HRA50% of
basic pay
Monthly
payout
Least of the following amounts is
exempt from income tax:
Actual HRA Received
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
Taxability: Conveyance allowance is exempted from tax up to Rs 9600/- per annum Or Rs.
800/- per month.
Salary
Component Eligibility
Maximum
Limit
Payment
Process Tax Implication
Conveyance
Allowance
All
employees
Rs. 800/- per
month
Monthly
Payout
Exempted up to Rs 800
per month
Fast Fact
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
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Fast Fact
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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Salary
Componen
tEligibility
Maximum
Limit
Payment
Process
Tax
Implication
Child
Education
Allowance
All
employee
s
Rs. 2400/-
p.a.
Monthly
Payout
Exempted up
to Rs 200/- .
Fast Fact
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
B. Leave Travel Allowance (LTA)
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Salary
Componen
tEligibility
Maximum Limit
Payment
Process
Tax
Implication
Helper
allowance
Employee
Above
Manager
Grade
Maximum Limit
Of Rs 5000/-
P.M Or Rs
60,000/- P.A.
Monthly
Payout
Non-
taxable
Grade
allowance
Employees
Are Eligible.
It Is Balancing
Amount.
Monthly
Payout
Taxable
Office
wear
allowance
Employees
Are Eligible.
Varies As Per
Grade
Monthly
Payout
Non-
Taxable
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 income tax.
Block would be considered as per the Income Tax act.
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
Miscellaneous Provisions Act, 1952 and benefits under this act are extended to all employees
from their date of joining.
Rate of contribution:
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Salary
Component Eligibility
Maximum
Limit
Payment
Process Tax Implication
LTAAll
employees
Any
amount up
to 8.33% of
Basic
Reimbursed
on production
of actual bills
on prorated
entitlements
LTA claimed twice
in a block of 4 years
(as defined by IT act
and rule) exempted
from Income Tax
Employee’s contribution – Minimum 12% of basic pay per month
Employer’s 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 employer’s 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:
Employee’s contribution – 1.75% of Gross salary per month
Employer’s 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
Driver’s Salary
Car lease Rental
Fuel & Maintenance
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A) Medical Reimbursement: Medical expenses reimbursement is done to assist employees in
defraying expenses incurred towards medicines, doctor’s 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
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 Company’s ‘Car Hire Policy’.
Guidelines
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Salary
Component
Eligibilit
y
Maximu
m Limit
Payment
Process
Tax
Implication
Medical
Reimburseme
nt
All
employee
s
Rs.
1250/-
per
month
Reimbursed
monthly on
production
of actual
bills.
Attracts FBT
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 June’09 onwards
Fast Fact
C) Driver’s salary reimbursement
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Salary
Component Eligibility Limit
Payment
Process Tax Implication
Car Hire
Charges
Asst.Manag
er & above
Car Lease
Rental Up To
Rs.12, 000/-
P.M. Or 1,
44,000 P.A.
Monthly
payout to
third party
Attracts Fringe
Benefit Tax
(FBT)/Perquisite
An employee, availing car hire component, can also claim reimbursement under ‘Driver’s
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.
Driver’s 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 driver’s salary attracts FBT/Perquisite
Fast Fact
D) Fuel & Maintenance
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Salary
Compone
ntEligibility
Maximu
m Limit
Payment
Process
Tax
Implication
Driver’s
Salary
Asst.
Manager
& above
Rs.
5000/-
per
month
Reimbursed
monthly on
production of
driver’
payment
receipt
Attracts
Fringe
Benefit Tax
(FBT)/Perq
uisite
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
Frequency of structuring TCC
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Salary
Componen
tEligibility
Limit
Payment
Process Tax Implication
Fuel &
Maintenanc
e
Asst.
Manager
& above
As per
limits
specified
for each
Band.
Reimbursed
monthly on
production
of bills on
prorated
entitlements
Attracts Fringe
Benefit Tax
(FBT)/Perquisite
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
Onetime payments such as Relocation Allowance, Notice Pay Reimbursement and Joining
Bonus paid basis commitment at the time
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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.
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OPERATION MANUAL
OF VIDEOCON
1. OBJECTIVE
53
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 TEXT ESG EMPLOYEE SUBGROUP TEXT
B BOARD OF DIRECTORSC1 CHAIRMANC2 PRESIDENTBD BOARD OF DIRECTORS
M MANAGER
M9 DIRECORSV SENIOR VICE PRESIDENTM8 VICE PRESIDENTAV ASSOCIATE VICE PRESIDENT
SG SENIOR GENERAL MANAGER
M7 GENERAL MANAGER
M6 DEPUTY GENERAL MANAGER
M5 ASSIST.GENERAL MANAGER
M4 SENIOR MANAGER
M3 MANAGER
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M2 DEPUTY MANAGER
M1 ASSIST.MANAGER
T TRAINEES
MT MANAGEMENT TRAINEE
ET GRADUATE ENGINEER TRAINEE
S3 SENIOR ASSISTANT
S1 ASSISTANT
S0 JUNIOR ASSISTANT
X EXECUTIVEE3 SENIOR EXECUTIVE
E2 EXECUTIVE
G OFFICER
O3 SENIOR OFFICER
O2 OFFICER
01 JUNIOR OFFICER
H SUB STAFF H1 DRIVER
RECRUITMENT PROCESS
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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
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.
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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. Credential check form
11. Declaration of health form
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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 criteria’s 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 candidate’s 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
o Employ Id number
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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:
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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 detailso 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 candidate’s
previous employer and other from professional contacts
8. Details of relatives if any, employed in VIDEOCON GROUP
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9. Details of official sim card and email id.
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
63
PERIPHERALSGM& ABOVE COMPANY
PROVIDED LAPTOPYES N.A.
DGM& BELOW *REIMBURSEMENT OF RS 1000/- P.M.[for max 36 months]
Applicable only for sales staff .for support function based on HR, HODs approval.
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 candidate’s information’s:
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.
64
PAYROLL PROCESS
ATTENDANCE
SHEET
65
CORPORATE OFFICE ATTENDANCE SHEET COLLECT AT CORPORATE OFFICEBRANCH OFFICE
MONTHLY UPDATES OF EMPLOYEES E.g. LEAVE, LOANS
SAP UPDATION OF PAYROLL
GENERATION OF OFF CYCLE PAY SLIP
VERIFICATION BY PARROLL HEAD IN HR OPERATION DEPARTMENT
DEMAND DRAFT ACCOUNT ON HOLD
GENERATION OF PAYSLIP INFORMATION GENERATED BY IT DEPT.
SIMULATION/TEST RUN OF SALARY SHEET
MANUL VERIFICATION OF SALARY SHEET
TRANSFERING THE SALARY SHEET TO ACCOUNTS DEPARMENT
VERIFICATION BY ACCOUNTS DEPARTMENT
BANK TRANSFER SHEET GENERATED BY OPERATIONS DEPARTMENT
PAYMENT MADE BY THE ACCOUNTS DEPARTMENT
SALARY IS RELEASED ON 5TH OF EVERY MONTH
SALARY SLIP IS GENERATED
V.G PORTAL -epprd/irj/portal
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.
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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 candidate’s 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 don’t 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
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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
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RESIGNATION BY THE CANDIDATE
NOTICE PERIOD
JOB ABANDONMENT
TERMINATION
FULL & FINAL SETTLEMENT BY ACCOUNTS DEPT.
NO DUES CLEARANCE (FROM CORPORATE/BRANCH) SUBMITTED AT CORPORATE HR
RELIEVING LETTER
EXIT INTERVIEW
SIGNED BY IT, HR ACCOUNT DEPARTMENT. APPROVED BY HOD, CONCERNED REPORTING OFFICER
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 doesn’t 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
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she is not coming and shouldn’t organization terminate him or her on these
grounds of abandonment?
If the employee doesn’t 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 company’s 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 doesn’t 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
GUIDELINES
75
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 Mediclaim(in lacs) GPA (in lacs)
Vp & Svp 5 15
Gm & Avp 5 15
Agm & Dgm 4 10
Manager & Sr Manger 3 5
Asst. Manager & Dy. Manager 2 5
Executive & Senior Executive 1 3
Sr.Officer, Officer,Mt, Jr
Officer
1 3
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.
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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.
FAQ’s
1. How many visits are covered and over what period of time?
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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
Finding and Analysis:
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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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