A

SUMMER TRANING REPORT

ON

COMPENSATION MANAGEMENT
BALLACK CARPETS (PANIPAT)
(SUBMITTED IN THE PARTIAL FULFILLMENT FOR THE DEGREE
OF
BACHELOR OF BUSINESS ADMINISTRATION

(SESSION)
SUBMITTED TO:
MISS NISHA GUPTA

SUBMITED BY:
ASHIMA JUNEJA
B.B.A. III YEAR
CLASS ROLL No. 7872
UNIVERSITY ROLL No..

I.B.(P.G.) COLLEGE
AFFILIATED BY
KURUKSHETRA UNIVERSITY, KURUKSHETRA

DECLARATION
I ASHIMA JUNEJA student of B.B.A. III year in I.B.(P.G.) College, Panipat
hereby declare that

the project

report

entitled

COMPENSATION

MANAGEMENT
BALLACK CARPETS submitted for the degree of B.B.A. III year is my
original work and the project report has not formed the basis for the award of any
diploma, degree, associate ship, fellowship or similar other titles. It has not been
submitted to any other university or institution for the award of any degree or
diploma.

ASHIMA JUNEJA

ACKNOWLEDGEMENT
Survey is an excellent tool for learning and exploration. No classroom routine can
substitute which is possible while working in real situations. Application of
theoretical knowledge to practical situations is the bonanzas of this survey.
Without a proper combination of inspection and perspiration, its not easy to
achieve anything. There is always a sense of gratitude, which we express to others
for the help and the needy services they render during the different phases of our
lives. I too would like to do it as I really wish to express my gratitude toward all
those who have been helpful to me directly or indirectly during the development of
this project.
I would like to thank my professor MISS.NISHA GUPTA who was always there
to help and guide me when I needed help. Her perceptive criticism kept me
working to make this project more full proof. I am thankful to her for his
encouraging and valuable support. Working under her was an extremely
knowledgeable and enriching experience for me. I am very thankful to her for all
the value addition and enhancement done to me.
No words can adequately express my overriding debt of gratitude to my parents
whose support helps me in all the way. Above all I shall thank my friends who
constantly encouraged and blessed me so as to enable me to do this work
successfully.

ASHIMA JUNEJA

INDEX OF CONTENTS
INTRODUCTION TO THE INDUSTRY
1.0)

INDUSTRY PROFILE

1.1) CARPET MANUFACTURERS IN INDIA

1.2) CARPET MANUFCTURING PROCESS
1.3) SWOT ANALYSIS OF CARPET INDUSTRY
1.4) OPORTUNITIES:
TOPIC 2 INTRODUCTION TO THE COMPANY
2.0) INTRODUCTION TO BALLACK CARPETSFAB
2.1) COMPANY PROFILE
2.2) COMMITMENTS
2.3) PRODUCTS
2.4) QUALITY
2.5) INFRASTRUCTURE
2.6) PRODUCTION CAPACITY

2.7) LOOMS AND MACHINES AVAILABLE WITHIN THE COMPANY

2.8) RESEARCH MARKETS
CHAPTER 3 INTRODUCTION TO COMPENSATION SYSTEM
3.0)

INTRODUCTION

3.1) COMPONENTS OF EMPLOYEE COMPENSATION

3.2) IMPORTANCE OF COMPENSATION
3.3) CONCEPT OF FAIR WAGES:
3.4) ADVANTAGES OF FAIR WAGES
3.5) FACTORS INFLUENCING WAGE AND SALARY STRUCTURE
3.6) SYSTEMS OF WAGE PAYMENT
3.7) ADVANTAGES OF TIME RATE SYSTEM
3.8) DISADVANTAGES OF TIME RATE SYSTEM
3.9) MERITS OF PIECE RATE SYSTEM
3.10) DEMERITS OF PIECE RATE SYSTEM
3.11) INCENTIVE SYSTEMS OF WAGE PAYMENT
3.12) FEATURES OR REQUISITES OF A GOOD INCENTIVE PLAN
CHAPTER 4 RESEARCH METHODOLOGY
4.0)INTRODUCTION
4.1) JUSTIFICATION OF THE STUDY
4.8) TOOLS USED FOR ANALYSIS

4.3) THE BASIC TYPES OF RESEARCH ARE AS FOLLOWS

4.4) RESEARCH DESIGN
4.5) SAMPLE DESIGN
4.6) METHODS OF DATA COLLECTION
4.7) DATA USED FOR THE PROJECT
4.2) OBJECTIVES OF RESEARCH
TOPIC 5 FINDING & SUGGESTION
5.0) FINDINGS
5.1) RECOMMENDATIONS
5.2) CONCLUSION
TOPIC 06
BIBLIOGRAPHY

EXECUTIVE SUMMARY
In this project, the researcher analyzed the different aspects of compensation
system of . Prime objective was to understand and interpret the compensation
structure which includes various components such as wages, salaries, incentives,
perquisites & other benefits. As employee compensation is usually the single
largest expense. So, organizations continuously try to optimize the cost. But these
simple cost cutting measures are not always effective. And also employees create,
deliver and maintain most of the organizations value and losing those valuable
people in the organization can cost a lot.
This project includes components of compensation, its importance in an
organization, factors influencing compensation structure, wage payment system
and all other aspects related to compensation.
In this study, Descriptive Research Design has been used. This research design is
about the characteristics of particular things. The data used in this project is
collected from various websites, manuals, monthly periodicals etc. Researchers
analysis of the study undertaken is quite satisfactory which shows that this
company i.e. BALLACK CARPETS has good compensation system.

CHAPTER 1
INTRODUCTION TO THE INDUSTRY
1.0) INDUSTRY PROFILE
Carpet Industry is one of the oldest industries in India. Carpet Weaving was
brought to India by Moguls. Some of the majestic carpets were woven during this
Mogul era. Over the period, the weaver has become an artist, bringing the magical
exotic colors to the Indian carpets. Artists bring aesthetic touch to the carpets by
creating magic with colors and provide carpets an unusual beauty and elegance.
Indian Carpet Industry has always been an important part of Indian export industry.
Carpet holds recognition from over centuries. Earlier, only a few centers in India
were involved in carpet weaving but slowly, due to several historical reasons and
availability of resources various clusters have risen in northern part of India for the
same purpose. Each center has its own competitive advantage. These centers
employ nearly millions of people all across the country.
Major belts of carpets include Bhadohi, Mirzapur and Agra belt in Uttar Pradesh,
Jaipur , Bikaner in Rajasthan, Panipat belt in Haryana and Kashmir belt. Carpets
are broadly classified into two major categories, traditional and modern.
Otherwise, Indian manufacturers make carpets in various types, these are;
Chain
Tufted
ballack

stich

Rugs

Woolen

Carpets

carpets-knotted

Woolen

Carpets

GABBE

Woolen

Carpets

Pure

Silk

Carpets

ballack

carpetsmade

Woolen

Durries

Staple or Synthetic Carpets

Each type has its own individuality in terms of design, look and the wool used in
its manufacturing. Variety in carpets fulfills various needs of customers. And the
distinct variety added to the carpets is inclusion of silk and cotton which are
innovatively mixing with the wool to give an attractive look to the carpets. Silk
carpets are considered to be high quality pieces and are comparatively high in
price. Indian carpets are following the old popular patterns such as floral,
rhomboids, animal patterns and arabesques in its designs.
These traditional styles are preferred even today. However, Indian carpet industry
seems to be highly influenced by western patterns and designs which are giving a
competitive edge to Indian traditional carpets, like Chinese patterns and Persian
designs.
Now, in India, the industry is glowing with its utmost glory from the states of
Rajasthan, Kashmir, Punjab, Uttar Pradesh, Andhra Pradesh, and Himachal
Pradesh.
Today, carpet exports have been showing a steep rise. According to an article by
Indian Brand Equity Foundation, India accounts for 61 per cent of the global loom
age, 12 per cent of the world's production of textile fibers & yarn and 25 per cent
share in the total world trade of cotton yarn. Exports of carpets have increased
from US$ 654.32 million in 2004-05 to US$ 930.69 million in 2006-07, showing a
growth rate of 42.23 per cent. During April-October 2007, carpet exports totaled as
US$ 404.74 million. Hence, makes India the world leader in carpet exports with
36

per

cent

of

the

global

market

share.

Indian carpets are famous worldwide for its magnificent designs and heart-winning
workmanship.

ballack carpets-knotted woolen carpets, tufted woolen carpets,

chain stitch rugs, pure silk carpets, staple/synthetic carpets, ballack carpetsmade
woolen durries are some of the floor covering types for which there is a huge
market demand in the European and American market.
The Indian carpet industry has considerable potential for growth. However, lesser
innovation techniques, outdated technology, labor law issues and lack of
infrastructural facilities in some of the rural areas are major barriers that make this
industry less competent as compared to other carpet supplying countries.
With these factors, the Indian government has established Carpet Export Promotion
Council of India (CEPC) to promote the exports of ballack carpets knotted carpets
and other floor coverings. It provides the necessary support to the Indian exporters,
identifies the markets, provides financial and marketing assistance, sponsors
participation in fairs and exhibitions and also conducts publicity abroad.

1.1)CARPET MANUFACTURERS IN INDIA

The art of ballack carpets-knotted carpets probably originated in the Southern
Central Asia during 3rd and 2nd millennium BCE. Turkmenistan and Persia (Iran)
were the countries which served as a cradle of the art of carpet making.

The art of carpet making, in India was introduced with the beginning of the
Mughal Dynasty in the early sixteenth century. The last successor of Babar
extended his rule from Kabul to India to establish the Mughal Empire. Under their
patronage, Indian craftsmen adopted Persian techniques and designs and gradually
came with their own creativity. Carpets, which were woven in Punjab at that time
(often-called Lahore carpets today), made use of motifs and decorative styles
found in the Mughal architecture.

During Mughal period, the carpets made on the Indian subcontinent became so
famous that demand for them spread abroad. These carpets had distinctive designs.
Carpets made for the Mughal emperors, including Jahangir and Shah Jahan, were
of the finest quality. Under Shah Jahan's reign, Mughal carpet weaving took on a
new aesthetic level and transformed as unique classic art pieces.

That tradition of carpet weaving was carried from the Mughals to other dynasties
and further taken down to generations and spread across various states. Every state
or region now has a unique mix of its own specialty and ethnic sense of carpet
designing.
And also, the quality and categories of carpets depend on the availability of raw
materials and skill set of craftsmen of different regions.

The Indian subcontinent has always welcomed the new cultures and the person
which has made the Indian culture richly diversified with art forms accumulated
over the centuries. And this cultural impact is reflected on the carpet manufacturing
art.

List of distinguished manufacturers of India below:

Domotex International, New Delhi
Jaipur Rugs Company Private Ltd, Jaipur
Vimla International, Jaipur
KK Overseas, Delhi

 Deepiga Tax, Tamil Nadu

D-Raj International, New Delhi
United Overseas, Panipat
Vinaayak Fab, Tamil Nadu
Oasis Agencies, Kolkatta
Vaibhav International, Jaipur
Anjani Carpets, Bhadohi
Bansal Carpets, Agra
Oriental Carpet Center, New Delhi
Kashyap Carpets, Kashmir
PKJ Exports, Mumbai
Craft India International, Kanpu
Versatile Trade, Delhi
Monarch Exports International, Gurgaon
Buoyant Export, Agra

1.2) CARPET MANUFCTURING PROCESS

ballack carpets-made carpets are technically very different from machine-made
carpets. As it is quite relevant from their names, ballack carpets-made carpets are
woven by ballack carpetss while machine-made carpets undergo treatments by
various machines.
1) Process of ballack carpetsmade carpets
2) Process of machine made carpets
ballack carpets-made V/s Machine-made carpets
Carpet is a textile floor covering that is fixed to the floor surface and extends wall
to wall. Such a textile floor covering is manufactured in two ways:

ballack

carpets-made

or

machine-made.

One of the most prominent differences between

ballack carpets-made and

machine-made carpets is that the former holds a valuable impression. The other
main difference between these two types of rugs is the actual manner of
construction. Machine-made rugs consist of plastic derived fibers being glued onto
a strong plastic base which makes them initially very durable, but over the time the
adhesive degrades and the fibers detach easily from the base
It is well said that for rooms with modern designs or active areas with high traffic
or children, machine-made rugs with contemporary designs are excellent. While on
the other ballack carpets, there is a common misconception that ballack carpetsmade oriental rugs are delicate and not durable. Their ornate designs and soft feel
often deceive many.More clarity on the differences can be explained in terms of:
Knots used
Sides and Ends sewn
Back of the carpets
Materials used
Touch
Knots
Machine-made rugs and carpets are not woven by ballack carpets but are loomed
by a computer generated system or apparatus. There are no knots in machine-made
rugs. Whereas in a ballack carpets-made rug, each knot is ballack carpets knotted
and tied. In machine-made carpets, threads are glued or looped onto a hot latex
(plastic) backing which cools and hardens. They show a complete and rigid
uniformity in manufacture which transforms into a static design. Machine made
rugs

generally

SIDES AND ENDS

lacks

spontaneity.

In a ballack carpets-made or ballack carpets-knotted rug, the fringe is part of the

rug. The fringe is not sewn on as an extension, as is the case in machine-made
rugs. Machine-made rugs always have serged sides or machine stitching on both
sides of the rug, as opposed to a ballack carpets-knotted which will be irregular.
Back
In power loomed or machine-made rugs the stitching on the back is very
consistent. They have extremely regular knots and even structure remains identical
in all parts of the carpet. On the other ballack carpets, in ballack carpets-knotted
rugs the stitching varies slightly due to different tensions on the wool as people
ballack carpets-tie the knots. Most ballack carpets-made rugs and carpets are
covered

with

cotton

or

canvas.

Materials
Acrylics and other chemically processed materials are usually used to make
machine-made carpets. ballack carpets-knotted rugs and carpets use pure organic
wools.
Touch
you can also differentiate a machine-made and ballack carpets-made rug simply by
touching. If you place one finger on the front of a machine-made rug and your
thumb on the back and pinch tightly, the rug will compress greatly and you will
feel a sensation going right through one side to other side.

1.3) SWOT Analysis of Carpet Industry

Indian Carpet industry is a unique kind of industry. Its highly unorganized with
lack of proper channels. Still, it has managed to show impressive performance in
the past. What is behind this industry which drives the exports? One cannot forget
that it had significant share in Indian exports till early 1990s. SWOT analysis will
bring forth the value drivers and stumbling blocks in this industry.

STRENGTHS:Artistic skills:Over the period, major carpet centers have built huge network of
artistic weavers. The industry currently is employing millions of people directly
and indirectly. They are highly skilled in these areas.
Costs: India has an advantage in terms of costs. The labor costs in India are
comparatively low. Also, total cost of producing a carpet is low compared to
countries like Turkey, Iran without compromising on quality fronts heavily.
Innovations:Innovations is one of the major criteria for selling carpets. As carpets
are considered as luxury items and consumer trends re changing continuously,
innovation is a key for the success. The countries like China which produce low
cost carpets lack in innovations.
Flexibility:Indian carpet industry can manufacture all kinds of carpets. Other
countries have specialized in particular carpets. Also, the carpets of any size can be
manufactured in

ballack carpets knotted categories. This is not possible in

machine made carpets. There are several kinds of manufacturers which can take
small orders or big orders. Hence, Indian industry can offer wide options to a
customer for carpet purchases.
WEAKNESSES:Unorganized:Indian carpet industry is highly unorganized. Therefore, a lot of
activities are duplicated. Hence, it increases the cost of production. Also, it
increases the time of delivery of carpets.

Marketing Channels:The carpet manufacturers lack the proper marketing

channels. They find it very difficult to access the customers is increase the market.
Therefore, they are heavily dependent upon the buying agents.

Infrastructure:The infrastructure is very poor leading to higher time for

production and costs. Also, buyers find it difficult to visit places like Bhadohi for
looking designs. Most of the manufacturers do not have showrooms in the cities to
showcase their creations. There is only one institute which provides courses related
to carpet industry.
Professional Approach:Majority of players lack professional approach for doing
the business. They do not respect delivery time and quality issues. Therefore,
buyers like to deal only through buying agents to control them.
Internal Competition:Many players have entered the industry increasing the
competition. There is a tremendous competition among players on price front and
are willing to offer very low prices even though some one has already taken order.
Intellectual Property Rights:Many players in the industry copy designs from
each others. There is a lack of respect for intellectual property rights

1.4) OPORTUNITIES:Globally, Home furnishing market is moving towards Carpet industry. Hence, this
movement offers a new market for

ballack carpets tufted Carpets which are

comparatively cheaper to ballack carpets-knotted carpets.

Traditionally, the carpets were purchased by old people. The evolution of modern
design has attracted youth market as well. This segment can be further expanded.
After dealing with China for some time, many players think that India provide
better option and flexibility. This kind feeling can further be tapped
Carpets are generally considered to be expensive. With use of modern technology,
prices can further be reduced. Also, cutting middlemen will directly benefit the
consumers thereby increasing the demand.
Organized operations can enhance the image of Indian Carpet industry.
The companies like IKEA, Wal-Mart, etc can offer new and larger market to the
manufacturers provided this market is properly tapped.
THREATS:o If not ballack carpetsled properly, current rebound in the industry may not
be sustainable
o Unhealthy competition in the industry kills each other.
o Indian Carpet industry has not completely got rid off of issues like Child
labor. Hence, risk of possible backlash on the industry is going to be there
for considerable time in the future although some action is being taken on
this front.

Present & Future Growth Drivers of the Industry

Low End Carpets

Low end carpets such as ballack carpets-tufted carpets are currently driving the
growth of industry. These carpets have expanded the market as these carpets are
cheaper and affordablefor many consumer segments. Due to which these segments
aregoing to drive future growth for a considerable time.

Modern Designs
As in the case of low end carpets, modern designs are also expanding the market.
Modern designs are attracting young consumers. Also, there are a great number of
consumers who prefer modern designs compared to traditional designs. These
designs are prominent in countries like Germany, Scandinavia, etc.
New Markets
Traditionally, carpets industry was dominated by buyers from USA & Germany.
However, new markets are emerging for carpets and they are growing fast. These
are basically in developing countries or lesser developed countries like Spain, etc.
Growth in income level is the major driver for these markets.
Big Retailers
Big retailers like Wal-Mart, Ikea can also drive the growth inthe carpet industry
and these players have huge networkwith a large customer base. Low-end carpets
can be amajor product that can be targeted by these players or big retailers.
Cost Management
In Todays competitive market, price is considered as animportant factor.
Therefore, better price can be offeredthrough better costs management. Effective
costsmanagement will prove to be a competitive advantage toany player. This trend
is common in every industry.Carpet industry is no exception to this. Better cost
managementwill decrease the price which can lead to increase involume sales.

TOPIC - 2

INTRODUCTION TO
THE COMPANY

2.0)INTRODUCTION TO BALLACK CARPETSFABS

BALLACK CARPETSis a leading manufacturer and exporter of ballack carpets
tufted and ballack carpets woven carpets for the last 15 years based inPanipat, well
known for home furnishing goods from India. In the fifteen years of operations
they have continuously moved ahead with desire to learn and excel in field of
carpet production.

PRESIDENT:MR. Abhinavgarg
Product range includes:

ballack carpets Tufted Woolen Carpets

ballack carpets Woven Woolen Carpets

Sea Grass Carpets

Jute Carpets
Persian Tufted carpets
Bath Mats
Rugs
Durries

2.1) COMPANY PROFILE

Company has an extremely efficient production infrastructure equipped with all the
facilities under one roof which is capable in performing in the most competitive
environments.
Apart from quality ,their focus on Prompt and on-schedule deliveries has led to
rapid growth and progress which in turn further enabled them to develop a strong
customer loyalty in Indian and global markets.

Company Profile
BALLACK CARPETSFAB

Company Name:
Business Type:

Manufacturer, Trading Company, Distributor/Wholesaler

Product/Service

Carpet, Bathmat, Shaggy, Rugs, Area Rugs

Product/Service

Tufting Machinery, Latexing Plant, Machine Made

(We Buy):

Carpet

Number

of 101 - 500 People

Employees:
Main markets:

South America and Western Europe

2.2) Commitments:
Competitive market price.
Quality products.
Timely deliveries.

 Use of safe, eco friendly dyes for healthy environment.

No Child Labor at all
Clean and healthy working environment at working place.
Progressive company policy for workers.

2.3) Products
Rugs: Rugs and carpets usually they both have no difference
except in size and usage. Rugs usually have multiple uses. Rugs
may be used as central flooring furnishing, foot rug, wall dcor,
sofa throws and other decorative utilities. They usually have an
artistic or stylish touch in terms of patterns, shape or
color.Whether traditional ballack carpets knotted ballack carpets
tufted or the modern machine made variety, a rug will set off any
interior with their finer finish and intricate patterns.
Carpets: Carpets are usually larger in size than rugs and these
are mainly used as floor covering. Carpets may be used as wall to
wall floorings or wide centerpieces .Carpets can be ballack
carpets-knotted, tufted, bonded or machine made.

2.4) Quality
At

BALLACK CARPETSFAB, Quality is corporate mantra at every level of

production and administration that ensures maximum customer satisfaction The in-house
quality checks done under professional personnel make sure that the carpets meet all
international standards.

Fig. 1.1 Quality at the company

They have a team of highly talented designers who are continuously coming out with
exquisite designs, magnificent cuts and fabulous colors to appeal the clients all over the
globe. They are engrossed in bringing forth a collection of products which is a
combination of modernity and tradition.s real strength lies in the weavers working on the
state-of-the-art looms. These master craftsmen have woven pieces that have enabled
them deliver quality products to the clients for one and half decades now. They
understand that each rug needs specific attention and it is because of this emphasis on
quality that they have successfully achieved customer appreciation resulting in long term
relations

2.5)Infrastructure
BALLACK CARPETS has the infrastructural set up to undertake complete carpet
production process within its factory premises at Panipat, India. They possess state-ofthe-art production unit equipped with state-of-the-art looms and hi-tech machines that
enable them to carry out production indigenously. Their looms for gun tufting, ballack
carpetslooms, finishing unit, washing unit, latex section and drying chamber enables
them to deliver products with unmatched quality and finish.

Fig. 1.2 Companys infrastructure

2.6)PRODUCTION CAPACITY

ballack carpets tufted

10000sq meter per month

ballack carpets woven

25000sqmeterper month

Bath Mats

20000sq meter per month

2.7)Looms and Machines available within the company

60 ballack carpetslooms
40 ballack carpets Tufted Looms. (With manual & electric gun machines)
90 Pit looms
35 Eight needles bathmat machines
80 Single needle bathmat machines
3 Carpet drying chambers
Cobble tufting machine with Multi Needles

2.8)Research Markets
EUROPE, UK, USA, JAPAN, MIDDLE EAST, HONG KONG, SOUTH AFRICA,
NEW ZEALAND AND AUSTRALIA.

CHAPTER 3
INTRODUCTION TO
COMPENSATION SYSTEM

3.0) INTRODUCTION-

Compensation or Reward system plays vital role in a business organization. Since,

among four Ms, i.e. Men, Material, Machine and Money, Men has been most
important factor, it is impossible to imagine a business process without Men. Land,
Labor, Capital and entrepreneur are four major factors of production. Every factor
contributes to the process of production/business and expects return from the
business process. The labor expects wages from the process. Wage is a monetary
payment, which is made by the employer to his employee for the work done or
services rendered. It is a monetary compensation for the services rendered. Wages
are usually paid in cash at the end of one day; one month etc. Money wage is the
monetary compensation paid by the employer to his employee for the services
rendered. Such compensation is also called wage or salary or reward given by an
organizationto

worker.

Labor plays significant role in bringing about the process of production/business in

motion. Labor therefore expects to have fair share in the business/production
process. Compensation is what an employee receives in return for his or her
contribution to the organization. Compensation occupies an important place in the
life of an employee. His or her standard of living, status in the society, motivation,
loyalty, and productivity depend upon the remuneration he or she receives. For the
employer too, employee compensation is significant because of its contribution to
the cost of production. Compensation is a key factor in attracting and keeping the
best employees and ensuring competitive edge in this increasingly competitive
world.Generally, compensation payable to an employee includes the following
three components:

Basic compensation for the job (wage/salary)

Incentive compensation for the employee on job

 Supplementary compensation paid to employees (fringe benefits and

employee services)

3.1) COMPONENTS OF EMPLOYEE COMPENSATION

The compensation of an employee includes wage/salary, incentives, fringe
benefits, perquisites and finally non-monetary benefits. The following chart
presents the compensation payable to the workers or the components which
contributes to the component.

Remuneration Packet of an
employee

Incentives
Wage/ Salary
Fringe benefits

Total
Compensation

Payable

Fig. 1.3 Components of compensation

Non-monetary
Perquisites
benefits

1. Wages and salary:

Wages meanshourly rates of pay, and salary implies monthly rate of pay,
irrespective of the number of hours put in by the employee. Both are subject
to the annual increments. They differ from employee to employee, and depend
upon various factors such as- the nature of job, seniority, and merit.

2. Incentives:Incentives are those which are paid in addition to wages and

salaries and are also called payments by results. Incentives depend upon
productivity, sales, profit, or cost reduction efforts.These are:
(a) Individual incentive schemes

(b) Group incentive programmes.

Individual incentives are applicable to particular employee performance. But,

where a given task demands group efforts for completion, incentives are paid
to the group as a whole. The amount is then divided among group members on
an equitable basis.
3. Fringe benefits:
These are monetary benefits, which are provided to employees which include
the benefit of: (a) Provident fund (b) Gratuity (c) Medical care (d)
Hospitalization payment (e) Accident relief (f) Health and Group insurance (g)
Subsidized canteen facilities (h) Recreational facilities and (i) Provision of
uniforms to employees (j) travelling allowance etc.
4. Perquisites:
There are special types of benefits offered to managers/executives. The
purpose behind this is to retain competent executives. Perquisites include the
following: (a) Company car for travelling, (b) Club membership, (c) Paid
holidays, (d) Furnished house or accommodation, (e) Stock option schemes,
etc.

5. Non-monetary benefits:
These benefits provide psychological satisfaction to employees even when
financial benefit is not available. These are:(a)Recognition of merit through certificate, etc. (b) Offering challenging job
responsibilities, (c) Promoting growth prospects, (d) Comfortable working
conditions, (e) Competent supervision, and (f) Job sharing.
Through these benefits employees are motivated a lot, which ultimately
proves to be beneficial for the organization.

3.2) IMPORTANCE OF COMPENSATION

1. to worker:
Wage payment is important to all categories of workers. Wage is a matter of life
and death to workers/employees. Their life, welfare and even social status depend
on wage payment. It is only source of income to large majority of workers. They
and their unions always demand higher wages and other monetary benefits.
Majority of labor problems and disputes are directly related to wage payment. The
efficiency of workers and their interest and involvement in the work depend on
wage payment. Even their attitude towards employer depends on wage payment.
In brief, wage payment is a matter of greatest importance to workers. Wage
problem is the most persistent problem before the entire labor force.
2. to employer:
Wage payment is equally important to employers as their profit depend on the total
wage bill. An employer in general is interested in paying low wages and thereby
controls the cost of production. However, low wages are not necessarily
economical. In fact they may prove to be too costly to the employer in the long
run. As if workers are not paid properly then it is difficult for the company to retain
them. An employer has a moral and social responsibility to pay fair wages to his

worker as they are equal partners in the production process. He should give fair
wages which will benefit to both the parties.

Employees will offer full co-

operation to the management when they are paid attractive wages. On the other
ballack carpets, strikes and disputes are likely to develop when workers are paid
low wages or when they are dissatisfied and angry due to low wage rates. It is
possible to earn more profit by paying attractive wages to workers.
3. to government:
Government also give special importance and attention to wages paid to industrial
workers as industrial development, productivity, industrial peace and cordial labormanagement relationship depend on the wage payment to workers. Government
desires to give protection to the working class and for this minimum

wages act

and other Acts are made. In India, wages are now link with the cost of living. This
is for the protection of workers. And Government is the biggest employer in India
and the wage rates of government servant and employees of public sector
organizations are decided by government itself. And Revision of pay scale of
government employees made for adjusting their wages as per the cost of living.
For this purpose, Pay Commission is appointed and pay scale is adjusted as per
the recommendations made.

3.3) CONCEPT OF FAIR WAGES:

Fair wages is the wage which is above the minimum wage but below the living
wage. The lower limit of the fair wage is the minimum wage and the upper limit is
set by the ability of the industry to pay. Between these two limits, fair wages
should depend on the factors like:-

1. Prevailing rates of wages in the same region or neighboring areas

2. Employers ability to pay
3. Level of national income and its distribution
4. Productivity of labor
5. Status enjoyed by the industry in the economy
6. Prevailing wages rates in the same occupation
Hence it can be said that fair wages are determined on industry cum region basis.
When fair wages are paid employees enjoy higher standard of living. It is accepted
fact that wages must be fair and reasonable. Wages are fair when the employee is
able to meet its essential needs and enjoy reasonable standard of living. Equal
pay for equal work serves as base of fair wage

3.4) ADVANTAGES OF FAIR WAGES

Therefore, there are certain advantages of providing fair wages to the workers. The
fair compensation system will help in the following manner:
1. If an ideal compensation system is designed, it will have positive impact on
the efficiency and results produced by workmen.

2. Such system will encourage the normal worker to perform better and achieve
the standards fixed.
3. This system will encourage the process of job evaluation. It will also help in
setting up an ideal job evaluation, which will have transparency, and the
standards fixing would be more realistic and achievable.
4. This system would be well defined and uniform, which will be applied to all
the levels of the organization as a general system.
5. This system would be simple and flexible so that every worker/recipient
would be able to compute his own compensation receivable.
6. Such a system would be easy to implement, so that it would not penalize the
workers for the reasons beyond their control and would not result in
exploitation of workers.
7. It will help in raising the morale, efficiency and cooperation among the
workers. It, being just and fair would provide satisfaction to all workers.
8. Such system would help management in complying with the various labor
acts.
9. Such system would also bring about settlement of disputes between the
workmen union and management.
10.The system would embody itself the principle of equal work equal wages.
Encouragement for those who perform better and opportunities for those
who wish to excel.
3.5) Factors Influencing Wage and Salary Structure
The organizations ability to pay:

Compensation paid to the workers depends upon organizations ability to pay, to

a large extent. Companies which have good sales and therefore high profits tend
to pay higher wages than those which are running at a loss or earning low
profits because of the high cost of production or low sales.
Supply and demand oflabor:
If the demand and certain skills of labor are high and the supply is low the
result is rise in the price to be paid for these skills and the other alternative is to
pay higher wages if the labor supply is scarce and lower wages when it is
excessive.
The cost of living:
When the cost of living increases, workers and trade unions demand enhanced
wages. But, when living costs are stable or decline, the management does not
resort with this argument as a reason for wage reduction.
The living wage:
Employers feel that the level of living prescribed in workers budget is opened to
argument as it is based on subjective opinion.
Job requirements:
Jobs are graded according to the given skill, responsibility and job conditions
required. Accordingly, wage structure is decided.

Trade unions bargaining power:

Trade unions do affect the rate of wages. Generally the stronger and more
powerful trade union, higher the wages.
Prevailing market rate:

This is also known as comparable wages or going wage rate. Reason behind
this is competition. It means that competitors adhere to the same relative wage
level.

Skill levels available in the market:

With the rapid growth of industries and business trade there is shortage of
skilled resources. The technological development and automation has been
affecting the skilled levels at a faster rate.
Psychological and social factors:
These factors determine in a significant manner that how hard a person will work
for the compensation received or what pressures he will exert toget his
compensation increased.

3.6) SYSTEMS OF WAGE PAYMENT

A) TIME RATESYSTEM
B)

PIECE RATE SYSTEM

Time rate system:
It is the oldest and simplest method of wage payment used mainly in the industrial
as well as government departments. Wages are paid to the workers as per the time
spent by the workers in the factory. The production done by them is not taken into
consideration. Time rate system is also known as day wage system. In the time rate
system, efficiency, sincerity, ability of the worker is not given attention and all the
workers are paid at one and the same rate as per the period spent in the factory.

3.7) ADVANTAGES OF TIME RATE SYSTEM:

1)

Easy and simple: Time rate is easy to understand and simple to follow and
calculate. Each worker knows how much wage payment he is entitled to at the end
of the month.

2)

Guarantee of minimum wage: It gives the guarantee of certain minimum wage

payment to every worker irrespective of their working capacity which gives a
sense of security to all workers as regards wage payment.

3)

Maintains quality of production: Quality of production is maintained as the

workers are not in a hurry to complete the work. So, they do not spoil the quality
because of the temptation to earn more.

4)

Avoids quarrels among workers: Time rate avoids quarrels among the workers
as uniform wages are paid to all.

5)

Support from trade unions: Workers and trade unions support time rate system
as all workers are placed in one category as regards wage payment which ensures
unity among workers. Trade unions normally prefer this system of wage payment.

6) Convenient in modern factory system: Time rate payment is convenient in

modern factory system where production process is continuous and integrated. It is
not possible to measure the work completed by one individual worker and hence
time rate system is convenient.

3.8) DISADVANTAGES OF TIME RATE SYSTEM:

1) Not scientific: Time rate is not scientific system of wage payment as there is no
direct linking between wages and production/productivity.

2)

Absence of positive encouragement: In the time rate system, there is no positive

encouragement to workers to improve their efficiency/ performance as the wage
rate is uniform to all workers; efficient and inefficient.

3)

No initiative to workers: Time rate fails to encourage workers to take more

interest and initiative in their work. In fact, it encourages them to follow go slow
policy. As wage payment is not linked with the production given.

4) Strict supervision: In the time rate strict supervision on the workers is essential as
payment is for period and not production. This raises the expenditure on
supervision.
5) No distinction between workers: In the time rate system of wage payment, no
distinction is made between efficient and lazy worker, both are paid at one rate
which is unfair. This system does not prove to be beneficial to sincere and efficient
workers. They are discouraged because they are paid less than what they deserve
due to which, they may even leave the job.
6) No effect on productivity/ efficiency: Time rate fails to raise productivity and
efficiency of labor force as it is not an incentive system of wage payment.
7) Labor cost may increase: In the time rate system, there is a possibility of increase
in the labor cost without corresponding increase in the production. As workers may
work with slow speed, give less production but collect the wage as per time or day
fixed.
Piece rate system:
This is yet another or an important system of wage payment. It is opposite to the
time rate. It is treated as an incentive wage system as it encourages workers to
produce more and also to earn more. In the piece rate system, wages are paid as per
the output given by the worker and not as per the time spent by the worker in the
factory. Payment is made according to results in terms of output given. Wage rate

is fixed per piece of work or for certain quantity of production. The production
given by a worker at the end of the day is counted and payment is made
accordingly.
3.9) MERITS OF PIECE RATE SYSTEM:
1) Linking of wages with production: Here wages are linked with production or
productivity. It raises the productivity of labor.
2) Distinction is made between efficient and inefficient workers: Distinction is
made between efficient and inefficient worker and full justice is done to efficient
worker as he gets payment in proportion to the production given.
3) Encourages workers to take initiative in the work: Piece rate system
encourages workers to take more interest and initiative in the work as every worker
gets full reward of his efforts.
4) Fair to employer and employees: This system is fair to employers as well as
employees. The employees get income in proportion to production given by them
and the employer gets production in proportion to the wage paid.
5) Incentive system: This system serves as the incentive system. Workers work
efficiently and take interest in the work due to corresponding benefit/ reward in the
form of higher wage payment.
6) Limited supervision: In this system strict supervision on the workers is not
necessary as workers work sincerely because their wage payment is directly linked
with their sincerity and ability.
7) Freedom of work to workers: Workers get more freedom of work and there is
effective control on the cost of production in the piece rate system.
8) Brings cordial relations: Piece rate brings cordial labor- management relations
and industrial peace.

3.10) DEMERITS OF PIECE RATE SYSTEM

1) No guarantee of minimum wage payment:According to thissystem, certainty for
minimum wage payment to a worker. This may prove to be dangerous particularly
to a newly recruited worker.
2) Complicated system: Piece rate system is complicated and difficult as it is
difficult to understand by ordinary workers. Management has to keep elaborate
records of production given by each worker.
4) Disturbs unity of workers: Piece rate affects the unity among workers as wage
payment will not be uniform to all workers. This will lead to quarrel among
workers.
5) Not fair to trainees: Piece rate system does not seems to be fair to trainees, as
their capacity to produce is less and naturally they will get less wages.
6) Quality of production is adversely affected: It affects the quality of production
as workers may work with speed and this may bring down the quality of
production.

3.11) INCENTIVE SYSTEMS OF WAGE PAYMENT

The wage plan should be highly incentive means it should encourage workers to
take more interest in the work, produce more and also earn more. The wage plan
which serves all these purposes related to work is called incentive wage plan. Such
an incentive plan is beneficial to both - employers and employees.
Incentives include monetary as well as non-monetary benefits. Incentives lead to
motivation among workers. In every incentive plan, wages/salaries are linked with
the given output. Incentives are not fixed as wages and salaries. They vary from

individual to individual.ILO defines incentives as "payment by results". Incentives

can also be stated as "incentive systems of payment.
TYPES OF INCENTIVE PLANS:
There are two types of incentive plans as given below:(a) Individual incentive plans
(b) Group incentive plans
Individual incentive plan is provided for individual employees. Employee has to
work hard i.e. efficiently, produce more and share the monetary benefits for
himself. The incentive benefit is directly linked with his ability, efficiency and
capacity.
In the group incentive plan, the incentive is not for individual employee but for the
group of employees working in one department or area. The group will work
collectively, give more production and share the incentive benefit. Initially the
benefit will be given to the group and further, it will be divided among the
members of the group.
3.12) FEATURES OR REQUISITES OF A GOOD INCENTIVE PLAN:
Simplicity:
A good incentive plan is one which is easy to understand and simple to apply. An
average worker must be able to understand the incentive offered and what he is
expected to do. The monetary as well as non-monetary benefits which are to be
offered must be made clear to all workers.

Encourage initiative:
A good incentive plan should create initiative among workers to work more and to

earn more and more. It must offer more profit/production to the firm or company.

Definiteness and flexibility:

A good incentive plan should be definite which means frequent changes should not
be made as regard rates, etc. as such type of changes create confusion and doubts
in the minds of workers.
In addition to this, an ideal incentive plan should be flexible. It should consider
technological and other changes taking place from time-to-time. There should be
suitable provision for making such adjustment.
Wide coverage and equitable:
A good incentive plan should not be for employees in some departments only. It
should have a wide coverage and almost all employees should be covered under
such plan. Such wide coverage makes the plan popular among all categories of
workers.
An incentive plan must be equitable which means it should provide equal
opportunity to all employees to show efficiency and earn more. And hence avoids
dissatisfaction among employees and makes the plan just and fair to all
employees.
Guarantee of minimum wage payment:
An incentive wage plan should include certain minimum wage amount to every
worker per month. This should be irrespective of the production, that employee
gives. Such provision of guarantee payments creates a sense of security and
confidence among workers at all levels.
Scientific fixation of standard workload:

Under the incentive plan, as extra payment is given for the extra work i.e. work
which is over and above certain quality. Such standard work-load must be clear,
specific and fixed with scientific studies so that majority of employees will be able
to give extra production for extra payment.
Justice to employer and employees:
A good incentive plan should do justice to both parties- employer and the
employee. The employer must get additional production along with extra profit and
the workers must get extra payment for extra production.

3.13) FRINGE BENEFITS:

Fringe benefits may be defined as wide range of benefits and services that
employees receive by the employer as an integral part of their total compensation
package. They are based on critical job factors and work performance. Fringe
benefits include indirect compensation as they are usually extended as a condition
of employment and not directly related to performance of concerned employee.
Fringe benefits are just supplements to regular wages received by the workers at a
cost of employers. They include benefits such as paid vacation, pension, health and
insurance plans, medical allowance etc. Such benefits are measured in terms of
money and the amount of benefit is generally not predetermined.
The purpose of fringe benefits is to retain efficient and capable employee in the
organization over a long period. They boost loyalty and acts as a securitybase for

the employees.

FEATURES OF FRINGE BENEFITS:

Different from regular wages:Fringe benefits are different from regular
wages as such benefits are those payments, which an employee enjoys in
addition to basic wages he receives. It is a supplementary payment
andprovides support and satisfaction to an employee.
Employee motivation: Fringe benefits are not given to employees for
performing certain work instead the purpose is to encourage them to take
more interest in the assigned work.
Useful but avoidable expenditure:Fringe benefits constitute a labor cost for
the employer as these are paid by the employer.
Not directly linked with efforts:Fringe benefits are not directly linked with
efforts made or the production given by an employee.
Beneficial to all employees:Fringe benefits are a labor cost but its benefits
are made available to the entire labor force and not to a small group of
employees.

OBJECTIVES OF FRINGE BENEFITS:

To supplement direct remuneration:Fringe benefits supplement the regular
pay of employee. It raises the total earnings of an employee and hence
provides better life and welfare to him.
Employers prefer fringe benefits:Employers prefer this indirect remuneration

instead of direct pay increase.

To retain competent employees:Fringe benefits create happy and satisfied
labor force. In addition, the management can attract and retain competent
personnel in the organization by offering fringe benefits.
To develop good corporate image: Fringe benefits help to develop a good
image of the corporate.
To raise employee morale: Liberal package of Fringe benefits raises the
morale of employees.

LIMITATIONS OF FRINGE BENEFITS:

There are some limitations of Fringe Benefits. These are:
Fringe Benefits may lead to unhealthy competition among employees
which may create unrest situation.
The expected benefit may not be available if the monetary benefits are
not adequately attractive to all the employees.
The motivation may not be as per expectation if the implementation of
the benefits scheme is not transparent to all.
ADVANTAGES OF FRINGE BENEFITS
There are certain advantages of Fringe benefits. These are:
Fringe benefits serves as support to remuneration paid to employees.
Fringe benefits improve efficiency and productivity of employees in the

organization.
Fringe benefits act as added attraction to the employees.
Fringe benefits reduce monotony of employees. They make employees cooperative for whatever organizational changes required to be introduced.
Fringe benefits raisethemorale of the employees.
Fringe benefits develop good corporate image which raise market standing
of the organization.
Fringe benefits act as motivating force. They motivate employees and
encourage them to work for the progress and prosperity of the organization.

TYPES OF FRINGE BENEFITS:

(1) Payment for time not worked by the employee in the organization:
Vacations.
Leave with pay and allowances.
(2)Contingent and deferred benefits:
Pension payment.
Group life insurance benefit.
Group health insurance.
Sick leave, maternity leave, etc.
Suggestion or service award

(3)Legally required payments:

Old age, disability payments and health insurance
Unemployment compensation facilities.

 Worker's compensation.

(4) Misc. benefits:

Travel allowances.
Company car and membership of clubs, etc
Moving expenses.
Child care facilities.
Tool expenses and meal allowances, etc

CHAPTER - 4

RESEARCH METHODOLOGY

4.0) INTRODUCTION
Research methodology is a way to systematically represent a research on any
problem. It tends to describe the steps taken by the researcher in studying the
research problem along with the logic behind them. . The methodology combines
economy with efficiency.
The procedure adopted for conducting the research requires a lot of concentration
as it has direct bearing on accuracy, reliability and adequacy of results obtained.
Research in common language refers to a search for knowledge. Research can also
be defined as a scientific and systematic search for pertinent information on a
specific topic. Research is an art of specific investigation. Research is an academic
and as such the term should be used in a technical sense. It is a voyage of
discovery. Research methodology is a way to systematically study and solve the
research problems.

4.1) JUSTIFICATION OF THE STUDY

The study is significant as it helps to know the perception of the employees about
the compensation system of the company. Compensation is considered as a key

factor in attracting and keeping the best employees and ensuring competitive edge
in this increasingly competitive world. It helps in motivating the employees to put
their best towards work and also fair compensation helps in achieving employee
satisfaction. The study explains the compensation system or pay structure followed
within the company. So the study becomes relevant to understand the various
components of compensation and its relevance in attracting and retaining
competent employees in todays business environment.

4.2) OBJECTIVES OF RESEARCH

MAIN OBJECTIVE
The main motive behind this research is to study the compensation system
prevailing at BALLACK CARPETSFABS.
Sub objectives: To understand the compensation structure and its segregation into various
components.
To assess the satisfaction level of employees regarding the compensation
system of the company

4.3)The basic types of research are as follows

1) Descriptive vs. analytical:
Descriptive research includes surveys and fact-finding inquiries of different
kinds. The main purpose of descriptive research is description of the state of

affairs as it exists at present. In analytical research, on the other ballack carpets,

the researcher is required to use facts or information already available.
2) Applied vs. Fundamental:
Applied research is done for a particular problem or finding a solution for a
particular problem. On the other ballack carpets, fundamental research is the
basic research.

3) Quantitative Research:
It is based on the measurement of quantity or amount. It is applicable that can
be expressed in terms of quantity phenomenon.
4) Conceptual Research vs. empirical research
Conceptual research is related to some abstract ideas or theory. Philosophers
and thinkers, to develop new concepts or to reinterpret existing ones generally
use it. On the other ballack carpets empirical research depends on experience
or observation alone, often without due regard for system and theory.

4.4) Research Design

The research design used in this project is Descriptive in nature. Descriptive
research includes surveys and fact-finding enquiries of different kinds. The main
purpose of this descriptive research is description of the state of affairs as it exists
at present. The main characteristic of this method is that the researcher has no
control over the variables; he can only report what has happened and what is
happening.

WHY DESCRIPTIVE TYPE RESEARCH METHODOLOGY?

The purpose of descriptive research design is in descriptive state. The main

characteristic is that the research has no control over the variables; he can only
report what has happened or what is happening. In this project all primary data has
been taken by researcher to know about the compensation system followed in the
company for the employees. These primary data have been collected from various
employees of the company.

4.5) SAMPLE DESIGN

The sample design used in this study is PROBABILITYRANDOM SAMPLING.

UNIVERSE
In statistics, universe or population means an aggregate of items about which we
obtain information. A universe or population means the entire field under
investigation about which knowledge is sought. A population can be of two kinds
(i) Finite and (ii) Infinite.
But in this research project, only finite population is used as the employeesof
BALLACK CARPETSFAB.

SAMPLE SIZE
A part of population is called sample. In other words, selected units from the
population are known as sample. In fact, a sample is that part of the population
which we select for the purpose of investigation.
In this research project, the sample size of this study is 150. This would help in
easing up of Analysis and Interpretation and is also going to be reasonable to reach
any conclusions.

4.6) METHODS OF DATA COLLECTION

To determine the appropriate data for research, mainly two kinds of data was
collected:
1) Primary Data
2) Secondary Data
Primary data Primary data is that data which is collected for the first time. These
data are basically observed and collected by the researcher for the first time.
Secondary data Secondary data are those data which are primarily collected by
the other person for his own purpose and now we use these for our purpose
secondly.
Sources of secondary data are

Internet.
Books and Journals.
Company reports.
Research work of others.

4.7) DATA USED FOR THE PROJECT

For the study conducted both kind of data have been used, primary as well as
secondary.
Primary Data-With the help of questionnaire and own observation or through
communication with the company officials.

Secondary data- With the help of journals and internet.

4.8) TOOLS USED FOR ANALYSIS

Graphical and Tabular analysis
The tools used for the analysis are as follows:Tables: Tables are used to represent the response of the respondents in a precise
term so that it become easy to evaluate the data collected.
Pie-charts: Pies charts have been used to express that how much percentage of the
respondents have positive attitude and how much has negative attitude toward a
particular situation.
Graphs:-Graphs are nothing more than a graphical representation of the data
collected in tabular form.

LIMITATION OF THE STUDY

Findings are based on the views expressed by the respondents of different
occupation and age so it may suffer from biased prejudices.
The study has not been intended on a very large scale, have the possibility of
errors, which cant be ruled out.
The misunderstanding of the terms used in questionnaire by the respondents.
Lack of awareness and knowledge among the selected sample unit.
Some of the workers did not respond properly as they thought HR
Department was carrying on some performance assessment or performance
grading, on the basis of their responses.
Time limitation was another constraint. Workers were not able to entertain
properly due to their busy schedules.

DATA ANALYSIS AND INTERPRETATION

TABLE 4.1
EMPLOYEES SATISFACTION WITH CURRENT SALARY PACKAGE

OPINION

NO.OF

RESPONDENTS

RESPONDENTS

YES

90

60

NO

60

40

OF

EMPLOYEES SATISFACTION WITH CURRENTY SALARY PACKAGE

70
60
50
40
% OF RESPONDENTS 30

60

20

40

10
0
YES

NO

Figure 4.1

INTERPRETATION
The above table and chart shows that the majority of respondents i.e. 60% of the
respondents are satisfied with their current salary package. And 40% of the

respondents are not satisfied with the current salary package provided by the
company.

TABLE 4.2
SATISFACTION

LEVEL

FOR

COMPENSATION

BASED

QUALIFICATION AND EXPERIENCE

SCALE

NO.OF

%OF

RESPONDENTS

RESPONDENTS

40

26.67

75

50

10

6.67

20

13.33

3.33

Figure 4.2

ON

SCALE
A =MOST SATISFACTORY
B = SATISFACTORY
C = NEUTRAL
D = DISSATISFACTORY
E = MOST DISSATISFACT

INTERPRETATION
The above table and scale shows the employees satisfaction regarding
compensation based on qualification and experience. Among them, 40 out of 150
feels most satisfactory 75 respondents are satisfactory. 10 respondents show their
neutral response towards this. 20 showed their dissatisfactory response. 5
respondents out of 150 are most dissatisfactory with the compensation based on
qualification and experience. It is interpreted that majority of the respondents are
satisfied with the current compensation, considering their qualification and
experience into account.

TABLE 4.3
BESIDES SALARY, ANY BENEFITS PROVIDE TO EMPLOYEES

OPINION

NO.

OF %

RESPONDENTS

RESPONDENTS

YES

105

70

NO

45

30

OF

BESIDES SALARY, ANY BENEFITS PROVIDED TO EMPLOYEES

30%

YES
NO
70%

Figure 4.3

INTERPRETATION
It can be interpreted from the above table and pie chart that 70% of the respondents
i.e. 105 employees agree that besides salary, other benefits are provided to
employees. Whereas 30% of the respondents or 45 employees says that no other
benefits are provided. So it implies that majority of the employees are availed of
other benefits besides salary such as bonus, incentives etc

TABLE 4.4
SATISFACTION REGARDING INCENTIVES BENEFITS
OPINION

NO.OF

%OF

RESPONDENTS RESPONDENTS
YES

75

50

NO

25

16.67

TO

SOME 50

33.33

EXTENT

Figure 4.4
INTERPRETATION

Hence concluded that 50% of the respondents are satisfied with the incentive
benefits as provided by the company. 16.67% or 25 respondents out of 150 are not
satisfied with theincentive benefits. Where 33.33% or 50 respondents are satisfied
with the incentive benefits to some extent.
TABLE 4.5
IS TIMELY COMPENSATION PAID TO EMPLOYEE
OPINION

NO.

OF %

OF

RESPONDENTS

RESPONDENTS

YES

90

60

NO

30

20

SOMETIMES

30

20

IS TIMELY COMPENSATION PAID TO EMPLOYEES

20%
yes
no
20%

Figure 4.5
INTERPRETATION

60%

sometimes

From this pie chart it can be concluded that regular or timely payment is made in
the company to employees as 60% of the employees are in favour of this. 20% of
the respondents states that sometimes company make timely payment and
sometimes not. And only 20% of the respondents says that they do not get timely
compensation.
TABLE 4.6
IS THERE ADEQUATE INCREEMENT IN PAY FOR EXTRA WORK
OPINION

NO.OF

%of

RESPONDEN

RESPONDEN

TS

TS

ALWAYS

120

80

SOMETIM

30

20

ES
NEVER

Figure 4.6

INTERPRETATION: From the above table and figure, it can be interpreted that
as per the feedback from the respondents of the company, 80% implies that for
every additional work, there is always an adequate increment in pay structure. And
20% of the respondents states that company sometimes pay extra for extra work
and sometimes not. But none of the employees says that there is not an adequate
increment in pay for additional work.

TABLE 4.7
Is Organizations pay policy clear regarding salaries, pay &bonus
Opinion

NO.

OF %

RESPONDENTS

RESPONDENTS

Yes

105

70

no

45

30

OF

CLARITY OF ORGANISATION PAY POLICY RELATED TO SALARY, PAY , BONUS

30%

YES
NO

70%

Figure 4.7
INTERPRETATION
Here it can be concluded from the above table and pie chart that there is clarity of
organizations pay policy relating to salary, pay, bonus to 70% of the respondents.
And organizations pay policy is not clear to rest of the respondents i.e.30%. It can
be interpreted that most of the employees understands the pay policy of the
company.
TABLE 4.8
Is there any biasness in the compensation package for similar jobs within the
Organization?

OPTIONS

NO.

OF %

RESPONDENTS

RESPONDENTS

YES

45

30

NO

105

70

OF

Figure 4.8

INTERPRETATION
This figure shows that as per the opinion of the 70% of the respondents, there is
not any biasness in the company in the compensation package for the similar jobs.
Rest 30% of the respondents states that there is biasness in the company for
compensation .In all, it can be concluded that Company is not so partial in
providing compensationto its employees. Hence, there is similar pay for similar
work in the company or internal equity is met in the company.

TABLE 4.9
BELIEF IN PERFORMANCE BASED PAYMENT SYSTEM
OPINION

NO.OF

OF

RESPONDENTS

RESPONDENTS

YES

115

76.67

NO

35

23.33

BELIEF IN PERFORMANCE BASED PAYMENT SYSTEM

23.33

Yes
No

76.67

Figure 4.9
INTERPRETATION
From the above pie chart and table it can be stated that 76.67% of the respondents
or 115 employees are in favor of performance based payment system and 35 or
23.33% of the respondents do not believe in performance based payment system.

TABLE 4.10
MOTIVATIONAL FACTORS AT WORK PLACE
FACTORS

NO.

OF %

OF

RESPONDEN

RESPONDENTS

INCREMENTS
BETTER

TS
70
25

46.67
16.67

AMENITIES
SCOPE

10

6.66

OF ADVANCEMENT
BETTER
30

20

WORKING
CONDITIONS
BETTER
WORKLIFEBALAN
CE FACILITIES

15

10

MOTIVATIONAL FACTORS IN WORK

% of respondents

Figure 4.10

INTERPRETATION

50
45
40
35
30
25
20
15
10
5
0

With this bar chart, various motivational factors at workplace can be seen. Among
them, majority of the respondents as 46.67% or 70 respondents think increment in
the compensation is supposed to be the motivational factor in their work. 16.67%
or 25 employees feel better amenities as the motivational factor, whereas 6.67% of
the respondents or only 10 respondents take scope of advancement as the
motivational factor at their work place. 20% considers better working conditions as
the motivational factor.10% of the respondents consider better work life balance
facilities at work place as the motivational factor.
TABLE 4.11
AGREEMENT

WITH

PAY ACCORDING

TO

RESPONSIBILITIES

BALLACK CARPETSLED
SCALE

NO.

STRONGLY AGREE
AGREE
NEUTRAL
DISAGREE
STRONGLY

RESPONDENTS
55
35
30
20
10

DISAGREE

OF %
RESPONDENTS
36.67
23.33
20
13.33
6.67

OF

AGREEMENT WITH PAY ACCORDING TO RESPONSIBILITIES HANDLED

40

36.67

35
30
25

23.33
20

% OF RESPONDENTS 20

13.33

15

6.67

10
5
0
STRONGLY AGREE

NEUTRAL

STRONGLY DISAGREE

SCALE

Figure 4.11
INTERPRETATION:
From this bar graph, it can be interpreted that 36.67% of the respondents or 55 out
of 150 respondents strongly agree with this system of paying according to
responsibilities ballack carpetsled by the employees. 23.33% or 35 out of 150
respondents agree with paying according to responsibilities ballack carpetsled.
Then there are 20% of the respondents who have neutral response towards it.
13.33% or 20 out of 150 respondents disagree with this system of payment. And
6.67% or 10 out of 150 respondents strongly disagree with this payment system.

TABLE 4.12

WILLINGNESS TO TAKE ADDITIONAL RESPONSIBILITY WITH

INCREASED COMPENSATION
OPINION

NO.

OF %

YES
NO

RESPONDENTS
105
45

OF

RESPONDENTS
70
30

WILLINGNESS TO TAKE ADDITIONAL RESPONSIBILITY WITH ENHANCED COMPENSATION

30

YES
NO

70

Figure 4.12
INTERPRETATION
From the above table and figure it can be concluded that 70% of the respondents
are willing to take additional responsibility, if increased compensation is provided
to them. But 30% of the respondents do not show willingness to take additional
responsibility with increased compensation too. So it can be concluded that
compensation alone is not sufficient to please the employees.
TABLE 4.13
SATISFACTION WITH PIECE RATE SYSTEM
OPINION

NO.

OF %

OF

RESPONDENTS
90
45
15

SATISFIED
DISSATISFIED
NEUTRAL

RESPONDENTS
60
30
10

SATISFACTION WITH PIECE RATE SYSTEM

60
60
50
40

30

% OF RESPONDENTS 30
20

10

10
0
SATISFIED DISSATISFIED NEUTRAL

Figure 4.13
INTERPRETATION
It can be interpreted from the above table and chart that 60% of the respondents are
satisfied with the payment system followed in the company i.e. piece rate payment
system. Where, 30% of the respondents are dissatisfied with this system. And 10%
says that they are neither satisfied nor dissatisfied.

TABLE 4.14
IS NON MONETARY INCENTIVES NECESSARY FOR IMPROVING
PERFORMANCE
OPINION

NO.
RESPONDENTS

OF %
RESPONDENTS

OF

YES
NO
SOMETIMES

75
30
45

50
20
30

IS NON MONETARY INCENTIVES NECESSARY FOR PERFORMANCE IMPROVEMENT

30
YES
NO
50

SOMETIMES

20

Figure 4.14

INTERPRETATION
It can be interpreted that majority of the respondents i.e.50% of the respondents
feels that non monetary incentives are necessary for improving their performance
because these leads to motivation of the employees. 20% respondents stated that
non monetary incentives are not needed at all. But 30% says that for improvement
in the performance, non monetary incentives are sometimes essential.
TABLE 4.1
SATISFACTION WITH COMPENSATION SYSTEM OF COMPANY

OPINION

NO.

OF %

FULLY SATISFIED
NOT SATISFIED
TO SOME EXTENT

RESPONDENTS
105
30
15

OF

RESPONDENTS
70
20
10

EMPLOYEES SATISFACTION WITH COMPENSATION SYSTEM OF COMPANY

% OF RESPONDENTS

70
60
50
40
30
20
10
0

70
20

10

Figure 4.15
INTERPRETATION
It can be implied that on asking regarding satisfaction with compensation system
of the company, 70% respondents showed their full satisfaction, 20% are not
satisfied, and remaining 10% are satisfied to some extent. It implies that most of
the employees are satisfied with the prevailing compensation system.
TABLE 4.16
EMPLOYEES

FEEDBACK

OR

RATING

FOR

COMPANYS

COMPENSATION SYSTEM

SCALE

NO.

OF %

OF

RESPONDENTS
45
60
15
15
15

EXCELLENT
VERY GOOD
GOOD
AVERAGE
NOT GOOD

RESPONDENTS
30
40
10
10
10

RATING FOR COMPENSATION SYSTEM OF COMPANY

40
40
35

30

30
25
20
% OF RESPONDENTS

15

10

10

10

10
5
0

Figure 4.16

INTERPRETATION
The above table and graph shows the feedback or the rating of the employees
towards compensation system of the company. Where 30% of the respondents have
rated companys compensation system of the company as excellent, 40% has rated
as very good. 10% of the respondents stated that it is good. 10% consider
compensation system as average. 10% respondents or 15 out of 150 respondents

think that companys compensation system is not good. This shows that there is
scope for improvement in the Compensation and Benefits Management System.

TOPIC 5

FINDING & SUGGESTION

5.0) FINDINGS
The major findings of the project are stated as: Majority of the respondents are satisfied with the compensation based on
qualification and experience.
Most of the respondents think that the organizations pay policy is clear,
related to the salaries, pay and bonus.
Almost all the respondent employees believed in performance based
compensation system.
More than Fifty percent of the respondents agreed that the Organization they
work for provides pay in accordance with the job responsibilities they
ballack carpetsle.
Most of the respondents are willing to take additional responsibility, in case
the compensation is increased.
Some of the respondents feel that there exists bias in the compensation
package of similar jobs within the organization.
More than half of the respondents gave the rating for the Compensation and
Benefits Management system of the company as GOOD. Only 10%
respondents think that companys compensation system is not good and
there is need to make changes in the existing compensation and benefits
package.

5.1) RECOMMENDATIONS
There needs to be more focus on employee potential and current
performance while formulating the compensation and benefits
package.
Inclusion of good overtime pay package in the compensation, as work
load is high during the project completion period.
Also Compensation packages should be based on quantity, quality and
impact of work.
The Compensation has to be balanced properly across the employees
of organization who have the same number of years of experience and
also the nature of work being same.
Provision of short term and medium term education course packages,
helps the
Competent employees to develop their skills and enhance their
knowledge, which in turn helps the organization to grow.
Monthly rewards for star performers should be included which will
motivate the employees as for most of the employees, compensation
play a crucial determinant.

5.2) CONCLUSION

Thestudy revealed the compensation system followed by

BALLACK

CARPETSFAB.The results of the study indicate that with the changing

organizational working patterns and employee needs,there is a need to bring in
changes in the compensation systems of the company.Further the study reveals that
perfect compensation system, with properly designed features like loyalty pay and
Flexible Benefit Plan along with timely increments, andperformance incentives,
leads to happy and satisfied workforce.
The employees not only look for monetary benefits, but also look forward to
various things like wok-life balance facilities, better amenities, better scope of
advancement etc. So, there should also be non monetary incentives for employees
which motivate the employees to put their best in work. The company can think of
expansion and growth if it has the support unskillful, talented and happy
workforce. Therefore a fair compensation system is required for every business
organization.The sound compensation system is a good sign of organizations
success and prosperity.

TOPIC 06

BIBLIOGRAPHY

BIBLIOGRAPHY
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RAO.V.S.P Human Resource Management EXCEL, page no.(200-230)
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 www.shyamexports.com
www.emeraldinsight.com
www.springerlink.com
www.sagepublications.com
www.thanagazicarpetcluster.com/Carpet%20Industry.htm
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m