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COMPENSATION MANAGEMENT


CHAPTER-IINTRODUCTIONINTRODUCTION

Compensation Management is an integral part of the management of the organization. Compensation Management contributes to the overall success of the organization in several ways. To be effective, the managers must appreciate the value of competitive pay, their human resources, and have an investment view of payroll costs. We want to maintain pay levels that attract and retain quality employees while recognizing the need to manage payroll costs.

Pay is a difficult topic of conversation in most organizations. In fact, the topic is altogether taboo in many workplaces. It simply isn't discussed unless absolutely necessary. And, when it is necessary, such as when a pay raise (or lack of one) must be explained to an employee, many managers find themselves at a loss for words. As the dreaded date of such a discussion approaches, managers may begin checking their sick time banks to see if they can disappear for a day or two.

While it may be a touchy subject, pay is a critical factor in the work lives of employees. Jobs are accepted or rejected based in part on starting salary and the opportunity for future increases in pay. Employees compare their pay to that of others in the same line of work. They constantly compare their pay level to their level of contribution, trying to determine whether the ratio of give and receive is a fair one. While it may not be a frequent topic of open discussion, employees think about pay often.

Approaches of compensation managementThere are 3P approach of developing a compensation policy centered on the fundamentals of paying for Position, Person and Performance. Drawing from external market information and internal policies, this program helps establish guidelines for an equitable grading structure, determine capability requirements and creation of short and long-term incentive plans.

The 3P approach to compensation management supports a company's strategy, mission and objectives. It is highly proactive and fully integrated into a company's management practices and business strategy. The 3P system ensures that human resources management plays a central role in management decision making and the achievement of business goals.

* Paying for position* Paying for person* Paying for performance

Because it is so important to employees, the issue of pay deserves to be clearly addressed. In spite of their hesitance, managers are capable of dealing with this sometimes difficult issue in a professional and effective manner. By keeping the following basic points about pay in mind, they can address virtually any pay-related topic with their employees in a professional and productive manner.

Specificity is Key Pay is a topic with many different shades and a variety of implications. Whenever approaching the subject, it is important to work out the details beforehand so that specifics can be clearly communicated. For the manager, this means that the increase amount is nailed down before discussing a promotion with an employee. No chance of misunderstanding or false expectations can be permitted. Far too often, managers are apt to discuss generalities. "It will mean a good increase." What exactly does that mean in terms of the employee's monthly budget? If care is not taken here, good news can become the source of conflict and resentment.

Pay is Relative What one employee considers a fantastic increase maybe an insult to another? Each individual has a unique set of creativity and competencies. Pay should be based on the performance, position and the competencies/skills the person is having. Pay is Not Created Equal Various forms of pay have different purposes. The two most common forms of direct cash compensation in most companies are base pay and bonus. Base pay is the annual salary or hourly wage paid to an employee given the job he holds, While bonus is typically (or at least should be) rewarded based on the achievement of a goal of the organization.

Discussions about bonus payments should be as specific as possible. This is the opportunity to point out particular accomplishments that contributed to overall team or company success. Even if the bonus is paid to all employees based on a simple overall company profit target, the manager should use the opportunity to point out specifically how individual employees helped achieve that target.

Distributing bonus checks presents a unique motivational opportunity for a manager. Handing money to an employee while discussing actions and behaviors he would like to see repeated, creates a powerful link between performance and reward.

Discussions about base pay increases can be a bit different. Most companies claim to link their annual base pay increases to performance. In reality, however, base pay decisions take into account a variety of factors, including the relative pay of others in the same job, the company's increase budget, market practices and where the individual falls within his pay range. Even when performance is a factor, the manager is faced with the difficult task of evaluating an entire year's worth of activity and then categorizing it according to the percentage increase options allowed by the budget. It becomes very difficult to pinpoint specific employee actions or accomplishments as the reason for the increase.

For these reasons, it's appropriate for the discussion about base pay increases to be more general and balanced. Both strengths and weaknesses of the employee should be addressed. The actual increase is then based on an overall assessment, as opposed to a link with one or two specific outcomes. Any other factors that impact the increase percent, such as budget or pay range should be openly discussed as well.

'Why?' is Critical? All organizations pay according to some underlying philosophy about jobs and the people who do them. This philosophy may not be in writing, but it certainly exists. Pay maybe treated in a formal and structured manner at one company. At another, any appearance of structure is intentionally avoided so that decisions can be made arbitrarily. Either way, the approach taken reflects a fundamental belief about people, motivation and management.

Managers often want to view each individual as a separate case. It is important to understand, however, that employees operate within a compensation system. A manager is wise to take the time to learn as much as possible about his company's compensation system. This knowledge will form the context for pay discussions and will go a long way toward helping the employee make sense of what is said.

While the answer to "how much?" is of course important to employees, they are also concerned about the "why?" of pay. In other words, while the actual amount of pay is very important, employees also are interested in the rationale used to determine it. Research has shown that pay satisfaction increases with understanding of the pay scheme.

Managers often leave this area to the HR department. Ideally, however, managers themselves will be the primary conduit of information on this topic. If a manager does not know the company's pay philosophy, he should seek out whomever in the organization is responsible for pay administration and get the answers he needs.

Is pay based on an analysis of market pay practices? Is it affected by the bonus plan? Are certain jobs considered critical and, therefore, treated differently? Do pay decisions take training and education into account? Answers to these questions will help managers help employees understand the organization's philosophy and the decisions resulting from it.

Job seekers who go into the negotiation process with their eyes wide open keep an important fact in mind: A few thousand dollars one way or the other can quickly become a gain or a loss depending on other benefits. Money is important, but it must be put in the context of other pros and cons--some of which have a dollar value and some of which do not.

The company's health plan, bonus plan, life insurance benefit match are just a few of the rewards with a dollar value. Beyond these, but just as important, are factors such as career development, camaraderie among teammates, flexible schedules, etc. Ask employees in a lousy work environment, and they will testify that these factors should never be understated.

Managers should be the company's biggest ambassadors when it comes to the value of benefits and work environment factors. Sharp companies do a good job of showing the value of these items. Smart managers will communicate their value, as well, especially when discussing pay. For example, when offering a promotion to an employee, a manager should consider all the potential benefits. What developmental opportunities are involved? Is there an increase in status? Will the move mean additional interaction with key players? All of these, as well as any increase in tangible pay and benefits should be discussed.

Speaking of Pay with Confidence Discussions regarding pay do not have to be awkward--they can be clear and productive if managers adhere to the basics outlined above. Rather than a taboo, pay can be addressed in an up-front manner if managers do their homework, get prepared and go into the discussion with the confidence that comes from knowledge.

Pay discussions should deal with specifics. In preparing for the discussion, the manager must remember that pay is relative and nothing can be assumed about the employee's response. The purpose of the particular aspect of pay being addressed is important, and the manager must be able to discuss the issue in the context of the organization's pay philosophy. Finally, the many faces of reward in the workplace cannot be overlooked.

If managers follow these guidelines, their pay-related communication with employees will result in clarity and respect. In addition, they will avoid the misunderstanding and resentment that results from avoiding this critical issue.

To conclude we can say that compensation is a hot potato for the Human Resource Department. The motivation level of the employees to great extent lies in monetary rewards. If paid well can generate results for the organization, failed can create problems. The major challenges what managers face today is retention of the man power and the major cause of it is that they are paid better in the other organizations. A satisfied employee is a productive employee and care should be taken that they are fairly paid for their worth in the organization.

NEED FOR THE STUDY: Compensation management of the employees is important if the employees are satisfied then only the organization can function smoothly increases its production, faces competition.

If employees are satisfied with their job they will carry a positive attitude. Hence the study has been undertaken to assess the employee Compensation which is necessary for the organization in order to make sound decisions.

OBJECTIVES OF THE STUDY Understand the concepts of compensation management in ASHOK LEYLAND Explore the role of c compensation management

Pay roll system in ASHOK LEYLAND To study maintain pay equity To study simplify the system To study create a new mindset To study give managers more autonomy To study increase transparencySCOPE OF THE STUDY

The compensation management in ASHOK LEYLAND refers to a persons feeling of satisfaction on their job. It is different from person to person. The researcher has chosen to measure the level compensation management in ASHOK LEYLAND . The study considers the impact of 10 factors on compensation management in it concentrates on the effect of factors in general, but no exclusive study is made on them.

The study considers only the perceptual elements of employees and does not focus on ground realities. The scope of study cover: work conditions, compensation, extra benefits, conveyance treatment of superiors, colleagues, duly timings, and grievance reprisal mechanism and promotion policy.

RESEARCH METHODOLOGY

The methodology that is adopted for the study is such that it facilities the data accumulation. The information is gathered through survey method. The survey method has been adopted for collecting the data from employees.

RESEARCH DESIGN: Research Design is defined as the specification of methods and procedures for acquiring the information needed. Generally the research design is any of the following three types-DESCRIPTIVE, EXPLORATORY and CASUAL.

DESCRIPTIVE STUDY:

Descriptive study/research is marked by the prior formulations of specific research questions. The investigator already knows a substantial amount about the research problem before the project is initiated. Hence this is chosen for my research. EXPLORATORY STUDY:

The major purpose of exploratory study is the identification of problem, the more precision formulation of problem and the formulation of new alternative courses of action.

CASUAL STUDY:

The study involves the determination of the causes of what the researchers are predicting. this is mainly a cause and effect study.

The research design selected by the researcher in the present study is DESCRIPTIVE in nature. RESEARCH INSTRUMENT:

HR research has a one main research instruments in collecting primary data. That is questionnaires.

In order to extract first hand information from the respondents, a pre-tested questionnaire was prepare and the same was administered to the respondents.

DATA SOURCES: Data means a collection of facts in real life statistical data is a collection of facts in numerical figures. The data sources are usually identified using the type of data needed. There are two types of data.

1. Primary data

2. Secondary dataPRIMARY DATA: The first hand information by the investigator by means of observation face to face questioning, telephone interview and mailing questionnaire is called primary data.

Primary data consists of original information gathered for a specific purpose.

SOURCES OF PRIMARY DATA;- For the purpose of present study, the primary data collected from respondents by contacting them personally.

SECONDARY DATA:

Secondary data consists of information that already exists somewhere, having been collected for another purpose

SOURCES OF SECONDARY DATA:

For the purpose of present study, the secondary data was collected from published data of the companies. Population is the aggregate of objects animate and in animate, under study in any statistical investigation. The population for the study here was employees in ASHOK LEYLAND . SAMPLING PROCEDURE

With a view to arrive at the sample population for the study, a Purposive-Cum convenient sampling was followed.

SAMPLE SIZE

1) The sample size includes 100 employees who are working in the in ASHOK LEYLAND . LIMITATIONS OF THE STUDY:

1. This study covers those employees who are working at ASHOK LEYLAND. The understand and knowledge may vary from person to person. The replied gives by the respondents are taken for granted, though they are not uniform.

2. Since names are mentioned in most of questionnaires, most of the employees answered favorable to the company. This might have led to wring finding in the study.

3. The interpretation being based on percentage method is not definite.

4. The report is subjects to changes with fast changing scenario.

CHAPTER-IIINDUSTRY PROFILE&COMPANY PROFILE INDUSTRY PROFILE

Industry Performance in 2012-13

ProductionThe cumulative production data for April-March 2013 shows production growth of only 1.20 percent over the same period last year. The industry produced 1,685,355 vehicles in March 2013 as against 1,845,868 in March 2012, which declined by (-) 8.70 percent.

Domestic SalesThe overall growth in domestic sales during April-March 2013 was 2.61 percent over the same period last year. While in March 2013 overall sales fell by (-) 7.76 percent over March 2012.

Passenger Vehicles segment grew at 2.15 percent during April-March 2013 over same period last year. Passenger Cars declined by (-) 6.69 percent, Utility Vehicles grew by 52.20 percent and Vans grew only by 1.08 percent during April-March 2013 as compared to the same period last year. However, in March 2013 passenger car sales further declined by (-) 22.51 percent over March 2012. Total passenger vehicles sales also declined by (-) 13.01 percent in March 2013 over same month last year.

The overall Commercial Vehicles segment registered de-growth of (-) -2.02 percent in April-March 2013 as compared to the same period last year. While Medium & Heavy Commercial Vehicles (M&HCVs) declined by (-) 23.18 percent, Light Commercial Vehicles grew at 14.04 percent. In March 2013, M&HCVs sales further declined by (-) 26.16 percent over March 2012.

Three Wheelers sales grew by 4.87 percent in April-March 2013. Passenger Carriers grew by 8.58 percent during April-March 2013 and Goods Carriers registered de-growth at (-) 9.20 percent during this period.

Two Wheelers registered growth of only 2.90 percent during April-March 2013. Scooters, mopeds and motorcycles grew by 14.24 percent, 1.53 percent and 0.12 percent respectively over same period last year. However, in March 2013 all sub-segments of two wheelers, scooters, motorcycles and mopeds registered de-growth at (-) 3.18 percent, (-) 8.32 percent and (-) 4.54 percent respectively.

During April-March 2013, overall automobile exports registered de-growth of (-) 1.34 percent compared to the same period last year. Passenger Vehicles grew by 9.02 percent, while the other segments like Commercial Vehicles, Three Wheelers and Two Wheelers fell by (-)13.35 percent, (-) 16.22 percent and (-) 0.72 percent respectively. In March 2013, Passenger Vehicles, Two & Three Wheelers grew by 3.07 percent, 3.51 percent and 7.50 percent respectively. While Commercial Vehicles declined by (-) 28.33 percent.WORLD-CLASSTECHNOLOGY

To offer world-class technology that is relevant and affordable to the Indian customer is the philosophy that drives R&D at Ashok Leyland. Over the years, this philosophy has been translated time and again into products that seamlessly integrate international technology with local needs. "The role of R&D is central in fulfilling the company-wide commitment to total customer satisfaction" states Mr. R. Seshasayee, Managing Director, and adds that the increased infrastructural and financial support expresses the company's determination to become self-reliant in R&D.

VALUETOTHECUSTOMER

The immediate R&D priorities are to pro-actively address safety and environmental issues, harness and adopt technologies that provide value to the customer in an atmosphere enabling creativity and innovation. Powering those who "engineertomorrows" with an enabling infrastructure has been top priority for the company.

TESTTRACKS::Our R&D is not confined within walls. It extends to the test tracks as well. Rigorous tests are carried out under stringent simulated conditions that replicate themosttreacherouslandscapes.

Vehicle ruggedness and longevity are a prime customer concern, as they directly impact earnings. Ever conscious of this, Ashok Leyland makes extensive use of a modern CAD set-up, a comprehensive test track facility (where cobble-stones are calibrated and reset periodically), accelerated fatigue testing rigs and rigorous durability testing facilities. Together they ensure that there is a constant improvement in the life and on-road performance of every make of Ashok Leyland vehicle to hit the roads. Safety, durability,through our R&D efforts.

INNOVATIONS:

Ashok Leyland product development successes have come from a keen sense of anticipation and attentiveness. The company initiated research into alternative fuels well before legislative debate had even begun in the country. The result was the implementation of CNG technology ahead of the rest promising a breath of fresh air for polluted cities.ASSOCIATES COMPANIES: Automotive Coaches & Components Ltd (ACCL)

Lanka Ashok Leyland

Hinduja Foundries

IRIZAR-TVS

Ashok Leyland Project Services Limited

Albonair GmbH

JOINT VENTURE:

Nissan Motor Company

John Deere & Company

Automotive Infotronics

Ashley Alteams India Pvt Ltd

Optare

2.5 SNAPSHOT

1948 1987 THE FIRST FOUR DECADES:

Pandit Jawaharlal Nehru persuaded Raghunandan Saran, an industrialist, to enter automotive manufacture

In 1948, Ashok Motors was set up for the assembly of Austin cars. With equity participation by British Leyland, Ashok Leyland commenced manufacture of commercial vehicles in 1955

Access to international technology enabled the Company to introduce a host of trend-setting product innovations in the country, supported by product development and marketing capabilities Multi-axle vehicles, tractor trailers, double decker and vestibuled buses, power steering

Units at Ennore, Hosur, Bhandara and Alwar became part of a pan-India growth plan of the Indian leadership

Tie-ups with international technology majors for engine and gearbox technology

Battled formidable competition, gaining and sustaining a 25% plus market share

Withstood the unprecedented business depression of the early 80s, proved its resilience a quality that has stood the Company in good stead in subsequent trying times too

Made a habit of earning profits and declaring dividends

1987 MID 90S THE GROWTH PHASE:

Transnational Hinduja Group took over the principal overseas shareholding of the Company in 1987, infusing vital capital and technology. Emboldened, Ashok Leylands long-term plan to become a global player by benchmarking global standards of technology and quality was soon firmed up

A state-of-the-art manufacturing base set up at Hosur to roll out international class products

Anticipated growing market demand and pioneered CNG technology

capacity up from 23,000 units in 1987 to 50,000 units in 1998.

MANAGEMENT DETAILS:

Board of Directors

:Dheeraj G Hinduja, Chairman (Alternate: Y M Kale)

:R Seshasayee, Executive Vice Chairman

:Anil Harish

:D J Balaji Rao

:A K Das

:Jean Brunol (from 20.10.2010)

:Jorma Antero Halonen (from 19.05.2011)

:S anjay K Asher (from 21.12.2010)

:F Sahami

:Shardul S Shroff

:Dr V Sumantran

:Vinod K Dasari, Managing Director

Chief Financial Officer :K Sridharan

Executive Director And

Company Secretary

:A R Chandrasekharan

Executive Directors

:Anup Bhat

:A K Jain

:Jayendra Parikh

:R R G Menon

:P G Nilsson

:Nitin Seth

:Rajive Saharia

:Shekhar Arora

Auditors

:M S Krishnaswami & Rajan

: D eloitte Haskins & Sells

Cost Auditors

:Geeyes & Co.

Business Operation

:Automobiles-Trucks/Lcv

BackgroundThe origin of Ashok Leyland, a Hinduja group company can be traced to the urge for self-reliance, felt by independent India. Pandit Jawaharlal Nehru, India's first Prime Minister persuaded Raghunandan Saran, an industrialist, to enter automotive manufacture. In 1948, Ashok Motors was set up in what was then Madras, for the assembly of Austin Cars. The Company's destiny and name changed soon with equity par

Financials:Total Income - Rs. 114065.872 Million ( year ending Mar2011) Net Profit - Rs. 6312.993 Million ( year ending Mar2011)

Market Share:

NameLast PriceMarket Cap.

(Rs. Cr.)Sales TurnoverNet ProfitTotal Assets

Tata Motors 193.45 61,399.84 47,807.421,811.82 35,912.05

Ashok Leyland 26.20 6,970.97 11,117.71631.30 6,621.14

Eicher Motors 1,688.004,555.00442.6775.44 474.14

Tata Motors (D) 102.953,303.44 - - -

SML Isuzu 388.45 562.15 893.01 36.56 297.79

VALUES:

CUSTOMERS:

We value of customers and will constantly endeavour to fulfil their needs by proactively offering them products and service appropriate to their diverse application.

EMPLOYEE:

We consider our employee as our most valuable asset and are committed to provide full encouragement and support to them to enhance their potential and contribution to companys business.

VENDORS:

Our vendors are our valued partners in our business development and we will work with them in a spirit of mutual co-operation to meet our business objectives.DISTRIBUTORS:

Our distributors are the vital between the company and the customers and we are committed to advice and support our distributors to continuously upgrade their infrastructure, skills and capability to serve our customers better.

SHAREHOLDERS:

We value the trust reposed in us by our shareholders and strive unstintingly to ensure a fair and reasonable return on their investment.

SOCIETY:

We are committed to add to the wealth and well-being of our society by enhancing the quality of life and contributing to this economic development while maintaining the highest level of environment and safety standards.

THE FIVE ASHOK LEYLAND CORPORATE VALUES ARE:

International

Speedy

Value creator

Innovative

Ethical

2.7 POLICIES AND OBJECTIVES OF ASHOK LEYLAND:

QUALITY POLICY:

Ashok Leyland is committed to achieve customer satisfaction, by anticipating and delivering superior value to the customers in relation to their own business, through the product and services offered by the company and comply with statutory requirement.

Towards this, the quality policy of Ashok Leyland is to make continual improvement in the process that constitutes the quality management system, to make them more robust and to enhance their effectiveness and efficiency in achieving stated objectives leading to:

Superior product manufactured as also service offered by the company.

Max use of employee potential to contribute to quality and environment by progressive up gradation of their knowledge and skills as appropriate to their functions.

Seamless involvement from vendors and dealers in the mission of the company to address customers changing needs and protection of the environment.

ENVIRONMENT POLICY:We at Ashok Leyland committed personal environment measures.

We follow all legal reasons.

Adopt pollution prevent technology in design and manufacturing projects.

Conserve all resources such as power, water, oil, gas, compressed air etc.. and optimise their usage through scientific methods.

Provide clean working environment to employees.

Set and review objectives and targets for continually improving environment.

2.8 PRODUCT RANGE OF THE COMPANY INCLUDES: Buses

Trucks

Engines

Defence & Special Vehicles

2.9 MILESTONES: 1966- Introduced full air brakes

1967- Launched double-decker bus

1968- Offered power steering in commercial vehicles

1979- Introduced multi-axle trucks

1980- Introduced the international concept of integral bus with air suspension

1982- Introduced vestibule bus

1992- Won self-certification status for defence supplies

1993- Received ISO 9002

1997- India's first CNG powered bus joined the BEST fleet

2001- Received ISO 14001 certification for all manufacturing units

2002- Launched hybrid electric vehicle2.10 AWARDS/ACHIEVEMENTS In the journey towards global standards of quality, Ashok Leyland reached a major milestone in 1993 when it became the first in India's automobile history to win the ISO 9002 certification.

The more comprehensive ISO 9001 certification came in 1994, QS 9000 in 1998 and ISO 14001 certification for all vehicle manufacturing units in 2002.

It has also become the first Indian auto company to receive the latest ISO/TS 16949 Corporate Certification (in July 2006) which is specific to the auto industry.

Ashok Leyland buses carry 60 million passengers a day, more people than the entire Indian rail network

Ashok Leyland has a near 85% market share in the Marine Diesel engines markets in India

In 2002, all the vehicle-manufacturing units of Ashok Leyland were ISO 14001 certified for their Environmental Management System, making it the first Indian commercial vehicle manufacture to do so.

In 2005, received the BS7799 Certification for its Information Security Management System (ISMS), making it the first auto manufacturer in India to do so.

In 2006, received the ISO/TS 16949 Corporate Certification, making it the first auto manufacturer in India to do so.

It is one of the leading suppliers of defence vehicles in the world and also the leading supplier of logistics vehicles to the Indian Army.

It is the largest manufacturer of CNG buses in the world.

4. RESEARCH METHODOLOGY

OBJECTIVE OF RESEARCH

Estimation of working capital requirement

Evaluation of working capital management

Evaluation of Liquidity position & working capital utilization

Analysis of relationship between working capital and profitability

Analysis & sources of working capital

Analyzing the level of current assets with relation to current liabilities.

COLLECTION OF DATA:

Data has been collected from various sources like:

Annual reports of last three years

Manual of concerned departments

Internet sites like www.google.com,

METHODS OF QUANTITATIVE ANALYSIS

Calculation of net working capital requirements.

Ratio analysis

Operating cycle & cash cycle

Cash flow analysis

Determining the Financing mix

LIMITATIONS

The data is mostly secondary in nature

Data has been recalculated & regrouped wherever necessary

In the absence of sufficient data personnel judgment have been taken on reasonable assumption.

In the absence of sufficient data in-depth study of cash, Receivables and inventory management was not possible.

ASSUMPTION:

Number of days in a year is 365 days.

All purchases have been taken as credit purchases.

All sales have been taken as credit sales.

In the absence of relevant data the data from internet site is taken as the relevant informations.

4.1 RATIO ANALYSIS

1. WORKING CAPITAL RATIOS:

Turnover Ratio:

Net Working Capital Ratio

Working Capital Turnover Ratio

Current Asset Turnover Ratio

Fixed Asset Turnover Ratio

Liquidity Ratio:

Current Ratio

Acid Test Ratio

Absolute Ratio

Profitability Ratio:

Gross Profit Ratio

Net Profit Ratio

Operating Profit Ratio

2. INVENTORY MANAGEMENT RATIO:

Inventory Turnover Ratio

Inventory Holding Period

Inventory Proportion

3. RECEIVABLE MANAGEMENT RATIO (DEBTORS):

Debtors Turnover Ratio

Debtors Collection Ratio

4. PAYABLE MANAGEMENT RATIO (CREDITORS):

Creditors Turnover Ratio

Creditors Collection Period

5. CASH MANAGEMENT RATIO:

Cash Ratio

Cash Turnover Ratio

COMPANY PROFILE

We are the 2nd largest manufacturer of commercial vehicles in India, the 4th largest manufacturer of buses in the world and the 16th largest manufacturer of trucks globally.

With a turnover in excess of US $ 2.3 billion (2012-13) and a footprint that extends across 50 countries, we are one of the most fully-integrated manufacturing companies this side of the globe.

Over 70 million passengers use our buses to get to their destinations every day while over 700,000 trucks keep the wheels of economies moving. With the largest fleet of logistics vehicles deployed in the Indian Army and significant partnerships with armed forces across the globe, we help keep borders secure.

Headquartered in Chennai, India, our manufacturing footprint spreads across the globe with 8 plants; including one at Ras Al Khaimah (UAE). Our Joint Venture partners include Nissan Motor Company (Japan) for Light Commercial Vehicles, John Deere (USA) for Construction Equipment, Continental AG (Germany) for Automotive Infotronics and the Alteams Group for the manufacture of high-press die-casting extruded aluminum components for the automotive and telecommunications sectors.

Following the independence of India,Pandit Jawaharlal Nehru, Indias first Prime Minister, persuadedMr. Raghunandan Saran, an industrialist, to enter automotive manufacture. The company began in 1948 asAshok Motors, to assembleAustincars. The company was renamed and started manufacturing commercial vehicles in 1955 with equity participation byBritish Leyland. Today the company is the flagship of theHinduja Group, aBritish-based and Indian originated transnational conglomerate.

Early products included theLeyland Cometbus which was a passenger body built on a truck chassis, sold in large numbers to many operators, including Hyderabad Road Transport, Ahmadabad Municipality, Travancore State Transport, Bombay State Transport and Delhi Road Transport Authority. By 1963, the Comet was operated by every State Transport Undertaking in India, and over 8,000 were in service. The Comet was soon joined in production by a version of theLeyland Tiger.

In 1968, production of theLeyland Titanceased in Britain, but was restarted by Ashok Leyland in India. The Titan PD3 chassis was modified and a five speed heavy duty constant-mesh gearbox utilized, together with the Ashok Leyland version of the O.680 engine. The Ashok Leyland Titan was very successful, and continued in production for many years.

Over the years, Ashok Leyland vehicles have built a reputation for reliability and ruggedness. This was mainly due to the product design legacy carried over from British Leyland.

Ashok Leyland had collaboration with the Japanese companyHino Motorsfrom whom the technology for the H-series engines was bought. Many indigenous versions of H-series engine were developed with 4 and 6 cylinder and also conforming to BS2 and BS3 emission norms in India. These engines proved to be extremely popular with the customers primarily for their excellent fuel efficiency. Most current models of Ashok Leyland come with H-series engines.

An Ashok Leyland bus run by theChennai Metropolitan Transport CorporationIn 1987, the overseas holding byLand Rover Leyland International Holdings Limited(LRLIH) was taken over by a joint venture between the Hinduja Group, the Non-Resident Indian transnational group andIVECOFiatSpA, part of the Fiat Group and Europe's leading truck manufacturer. Ashok Leylands long-term plan to become a global player by benchmarking global standards of technology and quality was soon firmed up. Access to international technology and a US$200 million investment programmed created a state-of-the-art manufacturing base to roll out international class products. This resulted in Ashok Leyland launching the 'Cargo' range of trucks based on EuropeanFord Cargotrucks. These vehicles used Iveco engines and for the first time had factory-fitted cabs. Though the Cargo trucks are no longer in production and the use of Iveco engine was discontinued, the cab continues to be used on the 'ecomet' range of trucks.

In the journey towards global standards of quality, Ashok Leyland reached a major milestone in 1993 when it became the first in India's automobile history to win theISO 9002certification. The more comprehensiveISO 9001certification came in 1994,QS 9000in 1998 andISO 14001certification for all vehicle manufacturing units in 2002. In 2006, Ashok Leyland became the first automobile company in India to receive theTS16949Corporate Certification. Editors note: This is part of a series of articles peeking into clean car industries and car manufacturers of China, India, South Korea and Germany.

Among many other goals, Ashok Leyland aims to expand its operations to penetrate into overseas markets. Included in the companys plans is to acquire smaller car manufacturers in China and in other developing countries. In October 2006, Ashok Leyland bought a majority stake in the Czech based-Avia. Called Avia Ashok Leyland Motors s.r.o., this will give Ashok Leyland a channel into the competitive European market. According to the company, in 2008 the joint venture sold 518 LCVs in Europe despite tough economic conditions. Furthermore, the company will expand its product offers into construction equipment, following a joint venture with John Deere. Newly formed in June 2009, the John Deere partnership is a 50/50 split between the companies. The company says negotiation is progressing on land acquisition, and the production plans are in place. The venture is scheduled to start rolling out wheel loaders and backhoe loaders in October 2010. Aside from the full expansion planned for the company, Ashok Leyland is also paying close attention to the environment. In fact, they are one of the companies showing the strongest commitment to environmental protection, utilizing eco-friendly processes in their various plants. Even as they thrust into different directions, Ashok Leyland maintains an R&D group that aims to uncover ways to make their vehicles more fuel efficient and reduce emissions.

In fact, even before laws were placed on car emissions, Ashok Leyland was already producing low-emission vehicles. Back in 1997, they have already released buses with quiet engines and low pollutant emission based on the CNG technology. In 2002 it developed the first hybrid electric vehicle. Ashok Leyland has also launched a mobile emission clinic that operates on highways and at entry points to New Delhi. The clinic checks vehicles for emission levels, recommends remedies and offers tips on maintenance and care. This work will help generate valuable data and garner insight that will guide further development.

When it comes to the development of environmentally friendly technologies, Ashok Leyland has developed Hythane engines. In association with the Australian companyEden Energy, Ashok Leyland successfully developed a 6-cylinder, 6-liter 92kW BS-4 engine which uses Hythane (H-CNG,) which is a blend of natural gas and around 20% of hydrogen. Hydrogen helps improve the efficiency of the engine but the CNG aspect makes sure that emissions are at a controlled level. A 4-cylinder 4-litre 63 KW engine is also being developed for H-CNG blend in a joint R&D program with MNRE (Ministry of New and Renewable Energy) and Indian Oil Corporation.

The H-CNG concept is now in full swing, with more than 5,500 of the technologys vehicles running around Delhi. The company is also already discussing the wide-scale use of Hythane engines with the Indian government. Hythane engines may be expected in the near future, but these may not be brought to the United States as yet. Ashok Leylands partnership with Nissan is also focusing on vehicle, power train, and technology development listed under three joint ventures. With impressive investment, the joint ventures will focus on producing trucks with diesel engines that meet Euro 3 and Euro 4 emission standards.

In the coming years, Ashok Leyland also has some hybrid trucks and buses in store for its market. The buses and trucks are set to feature a new electronic shift-by-wire transmission technology as well as electronic-controlled engine management for greater fuel efficiency. Ashok Leyland focuses on improving fuel efficiency without affecting automotive power and the vehicles will have a 5% improvement on fuel efficiency. Ashok Leyland is also developing electric batteries and bio-fuel modes.

Ashok Leyland Ltds March quarter results were expected to be impressive, as its monthly vehicle output reports had indicated a 138% jump in volumes. But what impressed was its net profit growth of 317%, to Rs223 crore, over the year-ago period, even as sales rose by 139%. Ashok Leylands operating profit margin rose to 13% compared with 10.5%. Higher volume growth, a better product mix due to higher sales of multi-axle vehicles and tractor trailers, and cost reduction were key reasons for margin expansion. Its estimate for volume growth in 2011 is conservative, at 15% compared with over 30% in FY2010.

Around 1,200 buses under the Jawaharlal Nehru National Urban Renewal Mission scheme are yet to be delivered of the 5,098 ordered. Besides, it has orders on hand from state transport undertakings for another 2,000 buses. The firm is investing to increase its capacity, with Rs1,200 crore proposed for expansion plans over the next two years; mainly to increase output of engines and new generation cabs. Besides, it plans to invest Rs800 crore in joint ventures. Analysts believe that its Uttarakhand plant is expected to deliver 22,000-25,000 vehicles in fiscal 2011, in its first full year of operation. The company has also steadily gained market share, from 21-22% in the first quarter of 2010 to 28-29% in the fourth quarter. One concern is that it is not yet a strong player in the eastern market. Besides, the southern market, traditionally its stronghold, has grown by only 15% in volume terms in 2010. The rest of India (mainly north and west) grew by 40% during the year.

An Ashok Leyland-Nissan joint venture produced light commercial vehicles (LCVs) from the former's House facility near Bangalore as well as from Renault-Nissan's car plant near Chennai.

Directors

Mr. Dheeraj Gopichand Hinduja

Mr. Anil Harish

Mr. D. J. Balaji Rao

Mr. A. K. Das

Mr. Jean Brunol

Mr. Jorma Antero Halonen

Mr. Sanjay K. Asher

Mr. F. Sahami

Mr. Shardul S. Shroff

Mr. R. Seshasayee

Mr. Vinod K. Dasari

Dr. V. SumantranBoard committee

CHAPTER-III

REVIEW OF LITERATURE


Human Resource is the most vital resource for any organization. It is responsible for each and every decision taken, each and every work done and each and every result. Employees should be managed properly and motivated by providing best remuneration and compensation as per the industry standards. The lucrative compensation will also serve the need for attracting and retaining the best employees. Compensation is the remuneration received by an employee in return for his/her contribution to the organization. It is an organized practice that involves balancing the work-employee relation by providing monetary and non-monetary benefits to employees.Compensation is an integral part of human resource management which helps in motivating the employees and improving organizational effectiveness. Components of Compensation SystemCompensation systems are designed keeping in minds the strategic goals and business objectives. Compensation system is designed on the basis of certain factors after analyzing the job work and responsibilities. Components of a compensation system are as follows:

TYPES OF COMPENSATION

Compensation provided to employees can direct in the form of monetary benefits and/or indirect in the form of non-monetary benefits known as perks, time off, etc. Compensation does not include only salary but it is the sum total of all rewards and allowances provided to the employees in return for their services. If the compensation offered is effectively managed, it contributes to high organizational productivity.

Direct Compensation

Direct compensation refers to monetary benefits offered and provided to employees in return of the services they provide to the organization. The monetary benefits include basic salary, house rent allowance, conveyance, leave travel allowance, medical reimbursements, special allowances, bonus, Pf/Gratuity, etc. They are given at a regular interval at a definite time.

Basic Salary

Salary is the amount received by the employee in lieu of the work done by him/her for a certain period say a day, a week, a month, etc. It is the money an employee receives from his/her employer by rendering his/her services.

House Rent Allowance

Organizations either provide accommodations to its employees who are from different state or country or they provide house rent allowances to its employees. This is done to provide them social security and motivate them to work.

Conveyance

Organizations provide for cab facilities to their employees. Few organizations also provide vehicles and petrol allowances to their employees to motivate them.

Leave Travel Allowance

These allowances are provided to retain the best talent in the organization. The employees are given allowances to visit any place they wish with their families. The allowances are scaled as per the position of employee in the organization.

Medical Reimbursement

Organizations also look after the health conditions of their employees. The employees are provided with medi-claims for them and their family members. These medi-claims include health-insurances and treatment bills reimbursements.

Bonus

Bonus is paid to the employees during festive seasons to motivate them and provide them the social security. The bonus amount usually amounts to one months salary of the employee.

Special Allowance Special allowance such as overtime, mobile allowances, meals, commissions, travel expenses, reduced interest loans; insurance, club memberships, etc are provided to employees to provide them social security and motivate them which improve the organizational productivity.Indirect Compensation

Indirect compensation refers to non-monetary benefits offered and provided to employees in lieu of the services provided by them to the organization. They include Leave Policy, Overtime Policy, Car policy, Hospitalization, Insurance, Leave travel Assistance Limits, Retirement Benefits, Holiday Homes.

Leave Policy

It is the right of employee to get adequate number of leave while working with the organization. The organizations provide for paid leaves such as, casual leaves, medical leaves (sick leave), and maternity leaves, statutory pay, etc.

Overtime Policy

Employees should be provided with the adequate allowances and facilities during their overtime, if they happened to do so, such as transport facilities, overtime pay, etc.

Hospitalization

The employees should be provided allowances to get their regular check-ups, say at an interval of one year. Even their dependents should be eligible for the medi-claims that provide them emotional and social security.

InsuranceOrganizations also provide for accidental insurance and life insurance for employees. This gives them the emotional security and they feel themselves valued in the organization. Leave Travel

The employees are provided with leaves and travel allowances to go for holiday with their families. Some organizations arrange for a tour for the employees of the organization. This is usually done to make the employees stress free.

Retirement Benefits

Organizations provide for pension plans and other benefits for their employees which benefits them after they retire from the organization at the prescribed age.

Holiday Homes

Organizations provide for holiday homes and guest house for their employees at different locations. These holiday homes are usually located in hill station and other most wanted holiday spots. The organizations make sure that the employees do not face any kind of difficulties during their stay in the guest house.Flexible TimingsOrganizations provide for flexible timings to the employees who cannot come to work during normal shifts due to their personal problems and valid reasons.

Need of Compensation Management

A good compensation package is important to motivate the employees to increase the organizational productivity.

Unless compensation is provided no one will come and work for the organization. Thus, compensation helps in running an organization effectively and accomplishing its goals.

Salary is just a part of the compensation system, the employees have other psychological and self-actualization needs to fulfill. Thus, compensation serves the purpose.

The most competitive compensation will help the organization to attract and sustain the best talent. The compensation package should be as per industry standards.

Strategic Compensation

Strategic compensation is determining and providing the compensation packages to the employees that are aligned with the business goals and objectives. In todays competitive scenario organizations have to take special measures regarding compensation of the employees so that the organizations retain the valuable employees. The compensation systems have changed from traditional ones to strategic compensation systems.

Payroll is defined as a method of administrating employees salaries in the organizations. The process consists of calculation of salaries and tax deductions of the employees, administrating the retirement benefits and disbursements of salaries to employees. It can also be called as an accounts activity which undertakes the salary administration of employees in the organization.

Administrating the employees salaries is not an easy task, the HR and accounts department work together to calculate and disburse the salary to the employees. Thus, payroll management can be further subdivided into two sub processes, i.e. Payroll accounting and payroll administration.Payroll Accounting Payroll accounting involves calculations of employees salaries and tax deductions. It also undertakes the activities such as preparation of tax returns, maintaining the payroll records, etc.

Payroll AdministrationPayroll Administration involves managerial activities such as maintaining employees records, referring employment laws. Here, the HR comes into picture which maintains the daily record if employees attendance.

Figure: Payroll Process

Database of employees is maintained. Employees details such as name, employee ID, basic salary, daily attendance, etc are recorded. Gross Salary is calculated after adding the allowances and incentives to the basic salary of the employee. Net salary is calculated by deducting the tax and other calculated deductions (loan installments, etc). Evolution of Compensation

Todays compensation systems have come from a long way. With the changing organizational structures workers need and compensation systems have also been changing. From the bureaucratic organizations to the participative organizations, employees have started asking for their rights and appropriate compensations. The higher education standards and higher skills required for the jobs have made the organizations provide competitive compensations to their employees.

Compensation strategy is derived from the business strategy. The business goals and objectives are aligned with the HR strategies. Then the compensation committee or the concerned authority formulates the compensation strategy. It depends on both internal and external factors as well as the life cycle of an organization.

Evolution of Strategic Compensation

Traditional Compensation Systems

In the traditional organizational structures, employees were expected to work hard and obey the bosses orders. In return they were provided with job security, salary increments and promotions annually. The salary was determined on the basis of the job work and the years of experience the employee is holding. Some of the organizations provided for retirement benefits such as, pension plans, for the employees. It was assumed that humans work for money, there was no space for other psychological and social needs of workers.

Change in Compensation Systems

With the behavioral science theories and evolution of labour and trade unions, employees started asking for their rights. Maslow brought in the need hierarchy for the rights of the employees. He stated that employees do not work only for money but there are other needs too which they want to satisfy from there job, i.e. social needs, psychological needs, safety needs, self-actualization, etc. Now the employees were being treated as human resource.

Their performance was being measured and appraised based on the organizational and individual performance. Competition among employees existed. Employees were expected to work hard to have the job security. The compensation system was designed on the basis of job work and related proficiency of the employee.

Maslows Need Hierarchy

Todays Modern Compensation Systems

Today the compensation systems are designed aligned to the business goals and strategies. The employees are expected to work and take their own decisions. Authority is being delegated. Employees feel secured and valued in the organization. Organizations offer monetary and non-monetary benefits to attract and retain the best talents in the competitive environment. Some of the benefits are special allowances like mobile, companys vehicle; House rent allowances; statutory leaves, etc.

Compensation and 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. Every factor contributes to the process of production/business. It expects return from the business process such as rent is the return expected by the landlord, capitalist expects interest and organizer i.e. entrepreneur expects profits. Similarly the labour expects wages from the process.

Labour plays vital role in bringing about the process of production/business in motion. The other factors being human, has expectations, emotions, ambitions and egos. Labour therefore expects to have fair share in the business/production process. Therefore a fair compensation system is a must for every business organization. The fair compensation system will help in the following:

An ideal compensation system will have positive impact on the efficiency and results produced by employees. It will encourage the employees to perform better and achieve the standards fixed.

It will enhance the process of job evaluation. It will also help in setting up an ideal job evaluation and the set standards would be more realistic and achievable.

Such a system should be well defined and uniform. It will be apply to all the levels of the organization as a general system.

The system should be simple and flexible so that every employee would be able to compute his own compensation receivable.

It should be easy to implement, should not result in exploitation of workers.

It will raise the morale, efficiency and cooperation among the workers. It, being just and fair would provide satisfaction to the workers.

Such system would help management in complying with the various labor acts.

Such system should also solve disputes between the employee union and management.

The system should follow the management principle of equal pay.

It should motivate and encouragement those who perform better and should provide opportunities for those who wish to excel.

Sound Compensation/Reward System brings peace in the relationship of employer and employees.

It aims at creating a healthy competition among them and encourages employees to work hard and efficiently.

The system provides growth and advancement opportunities to the deserving employees.

The perfect compensation system provides platform for happy and satisfied workforce. This minimizes the labour turnover. The organization enjoys the stability.

The organization is able to retain the best talent by providing them adequate compensation thereby stopping them from switching over to another job.

The business organization can think of expansion and growth if it has the support of skillful, talented and happy workforce.

The sound compensation system is hallmark of organizations success and prosperity. The success and stability of organization is measured with pay-package it provides to its employees.Payroll refers to the administration of employees' salaries, wages, bonuses, net pay, and deductions. It consist of the employee ID, employee name, date of joining, daily attendance record, basic salary, allowances, overtime pay, bonus, commissions, incentives, pay for holidays, vacations and sickness, value of meals and lodging etc. There are some deductions such as PF, taxes, loan installments or advances taken by employee.

Payroll is administered on monthly basis and annual basis.

While administrating the monthly payroll basic salary, HRA, conveyance, and other special allowances such mobile, etc are considered. There are some deductionswhich are provident fund (12%) of the salary, taxes and other deductions.

Figure: Components of Monthly Payroll

Deductions such as tax and loan/advances taken by the employee from organizations are deducted only where applicable. Dearness Allowance and House rent allowance is provided at a fixed rate stated by the employment law. Provident fund is deducted from the gross salary of employee on the monthly basis as per the employment law, which is provided later to the employee. Organizations also contribute the same amount to the provident fund of the employee.

Annual payroll consists of leave travel allowances, incentives, annual bonuses, meal vouchers/reimbursements, and medical reimbursements.

Figure: Components of Annual Payroll

Allowances, incentives, bonuses and reimbursements are based on organizational policies. Some organizations provided the allowances on a fixed rate say 10% or 12% of the basic salary. Some organizations go for performance based incentives.CHAPTER-IVData analysis

&

interpretation

1. Pay and compensation package is adequate and fair in comparison to performance.

OPTIONSNO OF RESPONSES

Strongly agree18

Agree52

Neutral18

Strongly disagree12

Interpretation:

The survey revealed that most of the employees agree for the reason of their pay and compensation package is adequate and fair in comparison to performance and some are disagree.

2. Medical facilities provided by the organization suites your health needs?


Strongly agree38

Agree46

disagree14

Strongly disagree0

Interpretation:

The survey revealed that most of the employees agree and strongly agree for the reason of the medical facilities provided by the organization which suits their health needs, and few are disagree.

3. Recognition & rewards are given based on employee performance.OPTIONSNO OF RESPONSES

Strongly agree18

Agree48

Neutral16

Disagree18

Interpretation;

The survey revealed that most of the employees agree and strongly agree for recognition and rewards are given based on employee performance but some are disagree.

4. Do you think the reward system is fair and adequate?

(a) YES (b) NO

s.noOptions No. of ResponsesPercentage

1YES3672

2NO1428

TOTAL50100

Interpretation:

About 72% said that the reward system is fair and adequate and 28% responded that it is not fair.

5. Do you think that a good workman gets motivated with frequent Compensative pay? Is conducted?

(a) YES (b) NO


1YES4488

2NO612

TOTAL50100

SHAPE \* MERGEFORMAT

Interpretation:

A majority of 88% of the employees said that a good workman gets motivated with frequent Compensative pay and 12% of the employees are not satisfied with above.

6. Satisfaction level in ASHOK LEYLAND Comparison with other Companies

Opinion of the employeesTATA MOTORSASHOKEICHER TVS

Opinion %50%75%40%30%

INTERPRETATION: The survey reveals that the employees satisfaction level in ASHOK LEYLAND Ltd is above average when compared to Others. an employee of ASHOK LEYLAND was satisfying with their Rewards & Recognitions.

7. Employee Preference on Rewards and Recognition in Comparison with other Companies:Opinion of employee of difference companiesRewardRecognitionBoth

TATA MOTORS52075

ASHOK10090

EICHER04060

TVS252550

INTERPRETATION:From the analysis we came to know that the many respondents of different industries prefer both the Rewards and Recognition. Some employees prefer the recognition and the very few are prefer the only rewards.

8. Do you think Compensation management is needed in a company?

(a ) YES (b) NO


1YES100100

2NO00

TOTAL100100

INTERPRETATION: To above question, almost 100% of the employees thought that Compensation management is needed in a company.

9. Do you think that incentives are needed for Compensation management programmers?

(a) YES (b) NO

S.NOOPTIONSNO OF RESPONDENTS% OF RESPONDENTS

1YES100100

2NO00

TOTAL100100

Interpretation:

From the above analysis we can say that 100% of the employees feel

Those incentives are needed for attending Compensation management. 0% of the employees feel those incentives are not needed for training programmers.

10. Job provides scope to achieve goals?

ResponseRespondents% of Respondents

Strongly Agree2026.67

Agree2432

Neutral1013.33

Disagree1216

Strongly 912

Interpretation:-

From the above table, it is clear that, 32 % of employees agree that there is scope for achieving goals and 26% of them are strongly is agreed.

11. Freedom to take decision?ResponseRespondents% of Respondents

Strongly Agree56.67

Agree1013.33

Neutral1520

Disagree2026.67

Strongly 2533.33

Interpretation:-

From the above table, 13 % of employees agreed that they have the

Freedom to take decision with the decision taking and 33% of employee doesnt have freedom to take decision.

12. Better position in near future?



Agree3242.33

Neutral1013.33

Disagree79.33

Strongly 56.67

Interpretation:-

From the above table, 42 % of employees agree that they can see themselves in a better position in near future and 26% strongly agree that they can place themselves in a better position very few disagrees for the above.

13. Working under in human working conditions:



Agree3040

Neutral1114.67

Disagree45.33

Strongly 56.67

Interpretation:-

From above table 40% of employees agree with the working conditions are human and 33% of employees strongly agree.

14. Benefits provided by the company?


Excellent1216

Good2118

Average1824

Bad912

Very Bad1520

Interpretation:-

From the above table, 16% of the employees said Excellent benefits provided by the company, 18% of employees Good, 24% of employees have good, 24% off employees have average 12% of employees have bad, 20% of employees have very sad opinion.

15. How do you feel about work load?


Relaxed1317.33

Normal4560

Burden79.33

Over Burden34

Satisfy810.67

INTERPRETATION:-

From the above table, 17.33% of the employees have told Relaxed work load, 60% of employees have normal, 9.33% of employees have Burden, 10.67% off employees have satisfy the work load in the company.

16. How do you feel about responsibility?


Highly Response3648

Response2837.33

Not Response34

No Opinion810.67

INTERPRETATION:- From the above table, 48% of the employees feel highly responsible, 37.33% of employees Responsible, 4% of employees doesnt feel Responsibility, 10.67% of employees no opinion on the responsibilities.

17. Satisfied with the company rules?


Highly Satisfied4762.67

Satisfied1824

Dissatisfied68

Highly Dissatisfied45.33

INTERPRETATION:-From the above table 20% of employees have highly satisfy the personal development, 32% of employees satisfy, 40% of employees dissatisfy, 8% of employees highly Dissatisfy with the personal development.

CHAPTER-5

FINDINGS &

CONCLUSION SUGGESTIONS

FINDINGS Employees in ASHOK LEYLAND are well satisfied with Management towards the proper decision in generating their own ideas working environmental conditions.

A study portrays that 75% of respondents show improvement in the quality of workmanship, in participating the organization.

The Compensation management in management provides better understanding to the employees about their roles in achieving the goals of the company.

The Compensation management in management acts as a complimentary body to help collective bargaining that creates healthy work atmosphere and legal relations in ASHOK LEYLAND Every member in the organization are very much well satisfied with the job, in developing their working conditions, and following their rules and regulations at regular intervals of time, conducted by the management.

A study portrays, 60% of employees rate excellent in maintaining good relations in the organization between workers and management and 25% are well satisfied with the relations maintain by the management towards the workers.

CONCLUSION

The global business environment is buzzing with the single most important issue of Building a competitive edge by creating and retaining a large number of Employees than their goods and services every organization is therefore seized of the task of establishing sustaining its worth to the customer, who has been rendered unpredictable by competition

Therefore every business is making a continuous effort for achieving Employees effort for achieving Employees loyalty

In short it is total organizational culture and brand equity, which face challenge. So that there is a perennial struggle amongst organizations to sustain their existence in the market place, and hence in order to sustain the stiff competition the company has to take up market Research frequently to know the changing needs & preference of the Employees.

This helps the company to reframe the policies in providing cutting edge technology to satisfy the Employees & retain him for a life time.

SUGGESTIONS There should be coordination and cooperation between executives and non-executives.

The employees have a high degree of understanding of the concept of workers participation in management

Suggestive and collective bargaining should be more effective that they can play much greater role in eliminating the communication gap between management and workers.

The committees should pay more attention on areas where is scope for improvements, so as to improve the overall performance of the company.

The employees want the company to give rewards in accomplishing the tasks.

Improve the promotion and recognition system.

Every year a survey should be conducted by management regarding the grievances and settlement should be done so that every employee will work with dedication.

See that the quality of food is maintained in the canteen.

The suggestions of the workers must be given importance in the decision making.

The various other facilities and schemes provided by the company such as sports, recreation, compensation and benefit packages, incentives etc are satisfactory.

CHAPTER-6

BIBLIOGRAPHY

QUESTIONNAIREBOOKS

Aswathappa.k, Human resource and personnel management, 3/e, TMH, 2003.

Mamoria.C.B and Gankar.S.V. Personnel management, text and cases, Himalaya Publications, 2003.

Gary Dessler, Human Resource Management, 9/e, Prentice Hall India, 2003.

G.C. Berry, Business Statistics, 2/e, TMH, 2003.

S.P. Gupta, Statistical Methods, 34/e, Sultan Chand & Sons.

JOURNALS

Personnel Management, June, July, August, editions.

Human Capital, June, July, August, editions.

Indian Management, April, June, November, editions (2006&2007).

INTERNET

http://www.google.com

http://www.wikipedia.com

ANNEXURE

QUESTIONNAIRE ON


Name: Designation: Age:

Pay and compensation package is adequate and fair in comparison to performance Medical facilities provided by the organization suites your health needs Recognition & rewards are given based on employee performance Do you think the reward system is fair and adequate . Do you think that a good workman gets motivated with frequent Compensative pay? Is conducted?

Satisfaction level in ASHOK LEYLAND Ltd Comparison with other Companies

Employee Preference on Rewards and Recognition in Comparison with other Companies Do you think Compensation management is needed in a company?

Do you think that incentives are needed for Compensation management programmers?

Job provides scope to achieve goals? Freedom to take decision Better position in near future Working under in human working conditions Benefits provided by the company How do you feel about work load How do you feel about responsibility Satisfied with the company rules?

Any Suggestions

% of respondents

88% YES

12% NO

_1499772045.xlsChart1

18481618

OPTIONSOPTIONSOPTIONSOPTIONS

NO OF RESPONSESNO OF RESPONSESNO OF RESPONSESNO OF RESPONSES

Strongly agree

Agree

Neutral

Disagree

Sheet1


Strongly agree18

Agree48

Neutral16

Disagree18

_1499772050.xlsChart1

18521812

Strongly agree

Agree

Neutral

Strongly disagree

Sheet1


Strongly agree18

Agree52

Neutral18

Strongly disagree12

_1499772052.xlsChart1

18.12

6.3

0.75

0

0.37

NET PROFIT

MARKET SHARE

Sheet1

COMPANYNET PROFIT

Tata Motors18.12

ASHOK LEYLAND6.3

Eicher Motors0.75

Tata Motors (D)0

SMZ Isuzu0.37

To resize chart data range, drag lower right corner of range.

_1499772048.xlsChart1

3846140

Strongly agree

Agree

disagree

Strongly disagree

Sheet1


Strongly agree38

Agree46

disagree14

Strongly disagree0

_1499772040.xlsChart1

5

10

15

20

25

No.of respondents

Sheet1

Strongly AgreeAgreeNeutralDisagreeStrongly

510152025

_1499772043.xlsChart1

20

24

10

12

9

No.of respondents

Sheet1

Strongly AgreeAgreeNeutralDisagreeStrongly

202410129

_1499772035.xlsChart1

12

21

18

9

15

No.of respondents

Sheet1

ExcellentGoodAverageBadVarybad

122118915

_1499772038.xlsChart1

2126.67

3242.33

1013.33

79.33

56.67

Respondants

% of Respondants

Sheet1

ResponseRespondants% of Respondants


Agree3242.33

Neutral1013.33

Disagree79.33

Strongly56.67

Sheet1

Respondants

% of Respondants

Sheet2

Sheet3

_1499772033.xlsChart1

36

28

3

8

No.of respondents

Sheet1

Highly ResponseResponseNot ResponceNo Opinion

362838

_1499772030.xlsChart1

47

18

6

4

No.of respondents

Sheet1

Highly SatisfiedSatisfiedDis satisfiedHighly Dissatisfied

471864

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