TRAINING REPORT ON

“THE STUDY OF FRINGE BENEFITS PROVIDED TO EMPLOYEES”

ATJINDAL SAW LTD.,

SUBMITTED IN PARTIAL FULLFILLMENT OF THE REQUIREMENT OF DEGREE IN MASTER OF

BUSINESS ADMINISTRATION

MAHARSHI DAYANAND UNIVERSITY, ROHTAK (SESSION 2010-12)

INSTITUTIONAL GUIDE: SUBMITTED BY:Mrs. PARUL KHANNA JATIN GABALECTURER MBA-IV SEMESTERBBA DEPARTEMENT ROLL NO: - 10077

KEDARNATH AGGARWAL INSTITUTE OF MANAGEMENT

(Affiliated to Maharshi Dayanand University, Rohtak)

PREFACE

Managing human resources in today’s dynamic environment is becoming more and more

complex as well as important. Recognition of people as a valuable resource in the

organization has led to increases trends in employee maintenance, job security, etc

My research project deals with “l as carried out at Bhart Sanchar Nigam Ltd. (BSNLK)”.

In this report, I have studied &evaluated the fringe benefits process as it is carried out in

the company.

The first section of my report deals with a detailed company profile. It includes the

company’s history: its activities and operations, organizational structure, etc. this section

attempts to give detailed information about the company and the nature of it’s

functioning.

The second section deals with fringe benefits. In this section, I have given a brief

conceptual explanation to fringe benefits. It contains the definition, process and

significance of fringe benefits.

In the third section of my report, I have conducted a research study to evaluate the

process of fringe benefits at Bharat Sanchar Nigam Ltd.; this section also contains my

findings, conclusions, suggestions and feedback

The forth and final section of this report consists of extra information that I related to the

main contents of the report. These annexure include some graphs and diagrams relating to

the company, graphs relating to the research study and important documents upon which

the project is based.

JATIN GABA

ACKNOWLEDGEMENT

This report has been made possible through the direct and indirect co-operation of

various persons for whom I wish to express my appreciation and gratitude. My report on

“PERFORMANCE APPRAISL AT JINDAL SAW LIMITED. (JSL)” is based upon

the fringe benefits at BSNL, New Delhi. I am thankful to all the team member’s of HR

Department for their hearty cooperation in preparation of this report. It is once again

pleasure to acknowledge the kind helps of my guide MISS. NEETU MUNJAL and my

friends for the preparation of my project report.

JATIN GABA

Acknowledgement Preface CHAPTER TOPICS PAGE NO.

NUMBER

1. Company Profile

2. Review of Literature

3. Synopsis of the study

4. Analysis of the Existing Systems and Practices of Fringe Benefits

5. Data Analysis and Interpretation

6. Recommendation

7. Suggestion

8. Conclusion Of The Study

9. Annexure

a) Questionnaire b) List of the Graphs & Tables c) List of Tables d) Bibliography

INTRODUCTION TO

JINDAL SAW LTD.Jindal Organisation, set up in 1970 by the steel visionary, Mr. O.P. Jindal, has grown from an In the world of business, the Jindal Organization is a celebrity. Ranked sixth amongst the top Indian Business Houses in terms of assets, the Group today is a US $ 12 Billion conglomerate.

Jindal Organization, set up in 1970 by the steel visionary Mr. O.P. Jindal, has grown from an indigenous single-unit steel plant in Hisar, Haryana to the present multi-billion, multi-locational and multiproduct steel conglomerate. The organization is still expanding, integrating, amalgamating and growing. New directions, new objectives... but the Jindal motto remains the same- "We are the Future of Steel ".

The group has been technology-driven and has a broad product portfolio. Yet, the focus at Jindal has always been steel. From mining of iron-ore to the manufacturing of value added steel products, Jindal has a pre-eminent position in the flat steel segment in India and is on its way to be a major global player, with its overseas manufacturing facilities and strategic manufacturing and marketing alliances with other world leaders.

Jindal Organization aims to be a global player. In pursuance of its objectives, it is committed to maintain world-class quality standards, efficient delivery schedules, competitive price and excellent after sales service.

Jindal SAW Ltd. is a part of the USD $ 15 billion O.P. Jindal Group, one of the country's topmost

industry houses and the foremost indigenous steel producers and exporters. It started operation in

the year 1984, when it became the first company in India to manufacture Submerged Arc Welded

(SAW) Pipes using the internationally acclaimed U-O-E technology.

Jindal SAW Ltd. is in a commanding position in India’s tubular market, being the undisputed

leader with a turnover in excess of Rs. 7500 Crore.

With integrated facilities at multiple locations and an ever expanding market opportunity, Jindal

SAW Ltd. has diversified from a single product company to a multi-product company,

manufacturing large diameter submerged arc pipes and spiral pipes for the energy transportation

sector; carbon, alloy and stainless steel seamless pipes and tubes manufactured by conical

piercing process used for industrial applications; and Ductile iron (DI) pipes for water and

wastewater transportation. Besides these, the company also provides various value added

products like pipe coatings, bends and connector castings to its clients.

Over the years Jindal SAW has continued to gain the confidence and trust of its stakeholders -

from employees, associates, shareholders and people whose lives have benefitted by the

company's endeavours. 

With its vision of sustainable development firmly in place, Jindal SAW has played a leading role

in developing livable cities across the world - that in turn has helped transform the lives of people

staying in them. 

Ensuring timely transportation of oil, gas and water, Jindal SAW helps residents and

organizations in numerous cities function efficiently. The pipes produced by the company are

energy efficient, reduce dependence on fossil fuels, and help conserve natural resources like

water. 

At the very core of Jindal SAW is imprinted the conviction of never being content with the

success attained and it is constantly striving for newer horizons. New boundaries, new challenges

and new opportunities keep the company driven to surge ahead. Venturing forward into different

areas of businesses with Jindal ITF, the infrastructure arm of Jindal SAW, the company is making

rapid progress in urban services sectors with:

Water, Wastewater and Solid Waste Management

Domestic Transport and Logistics

Transportation Equipment Fabrication

Having identified the immense potential offered by these sectors for the future, JITF has

diversified into five business verticals in these areas: JITF Ecopolis, JITF Aquasource, JITF

Vector, JITF Shipyards, and Jindal Rail Infrastructure. 

Jindal Strips Ltd.India's largest integrated stainless steel plant

Jindal Iron & Steel Co. Ltd.India's largest galvanised sheet producer

SAW Pipes Ltd.

India's largest bare line pipes and coated line pipes producer

Jindal Steel & Power Ltd.World's largest coal-based sponge iron plant

Jindal Vijayanagar Steel Ltd.World's largest Corex technology based steel plant

Jindal Praxair Oxygen Co. Ltd.

World's largest air separation facility

Jindal Thermal Power Co. Ltd.World's largest Corex gas based power plant

In recent years, Jindal Organisation has identified Information Technology as another growth area and has initiated three new IT ventures.

Jindal Transworld Pvt. Ltd.Contact center for telemarketing for B2B, B2C and CRM programs

Cross Border IT Ltd.Software development for web-based applications

Infovergix Ltd.Networking, IT infrastructure and system integration

SAW Pipes Ltd., over the years, has developed into a major global player using the most advanced technologies.

State-of-the-art manufacturing facilities have been set-up at:Kosi Kalan (UP), India Mundra (Gujarat), IndiaNashik (Maharashtra), IndiaBaytown (Texas), USA

CORPORATE VISIONOF

JINDAL SAW LTD.

Jindal Saw Nurtures the vision of becoming” a major diversify,

transnational, integrated energy company with a national leadership and a

strong environment conscience playing a national role in pipes and public

distribution”

The group has expanded and diversified into core sectors, ensuring synergy amongst it's business ventures, spreading over 13 plants in India and the USA.

Jindal Strips Ltd. India's largest integrated stainless steel plantJindal Iron & Steel Co. Ltd. India's largest galvanised sheet producer

SAW Pipes Ltd. India's largest bare line pipes and coated line pipes producer

Jindal Steel & Power Ltd. World's largest coal-based sponge iron plant Jindal Vijayanagar Steel Ltd. World's largest Corex technology based steel plant

Jindal Praxair Oxygen Co. Ltd. World's largest air separation facility

Jindal Thermal Power Co. Ltd. World's largest Corex gas based power plant

In recent years, Jindal Organisation has identified Information Technology as another growth area and has initiated three new IT ventures.

Jindal Transworld Pvt. Ltd. Contact center for telemarketing for B2B, B2C and CRM programs

Cross Border IT Ltd. Software development for web-based applicationsInfovergix Ltd. Networking, IT infrastructure and system integration

JINDAL SAW’S MISSION

To maximize creation of wealth, value and satisfaction for the stakeholders.

T o attain leadership in developing, adopting and assimilating sates-of-the-art technology for competitive advantage.

To provide technology and services through sustained research and development.

To foster a culture of participation and innovation of employee’s growth and contribution.

To cultivate high standards of business ethics and Total Quality Management (TQM) for a strong corporate identity and brand equity.

To achieve international standards of excellence in all aspects of energy and diversified business with focus on customer delight through value of products, services and cost reduction.

The Genesis Jindal Saw Ltd. is a part of the USD $4 billion Jindal Group, one of the country's topmost industry houses and the foremost indigenous steel producers and exporters. It started operation in the year 1984, when it became the first company in India to manufacture Submerged Arc Welded (SAW) Pipes using the internationally acclaimed U-O-E technology.

About Jindal Saw Ltd. (JSL) JSL is one of the country's largest producers of SAW pipes, which is widely used in the energy sector for the transportation of oil and gas. With integrated facilities at multiple locations and an ever expanding market opportunity, JSL has diversified from a single product company to a multi-product company, manufacturing large diameter submerged arc pipes and spiral pipes and bends for the energy transportation sector; carbon, alloy and stainless steel seamless pipes and tubes manufactured by conical piercing process used for industrial applications; and Ductile iron (DI) pipes for water and sewage transportation.

JSL has established itself as a market leader, and a global major in providing total pipe solutions to the industry.

Quality at par with the best in the world The company boasts of an inimitable, innovative and process driven business environment with the highest level of quality commitment, which is reassured through the ISO 9001, ISO 14001 and ISO 18001 certifications, amongst others.

A Structured Organisation At JSL, the business operations are highly structured with four strategic business units: Large Diameter Pipes, Seamless Tubes, DI (Ductile Iron) Pipes and the US Operations. Every SBU has its own dedicated sales and marketing targets and operations. While the first three SBUs manufacture and market Large Diameter Pipes, Seamless Tubes and Ductile Iron Pipes respectively, the last SBU acts as a dedicated marketing arm catering to the American market. In effect, the US Operations markets the products manufactured by all other SBUs. It also gets raw material converted to finished goods supplied to the US Affiliates under a toll conversion arrangement, and further markets the product in the American market.

Besides these, JSL also provides various value added products like pipe coatings, bends and connector castings to its clients.

Manufacturing Facilities The state-of-the-art manufacturing facilities of Jindal Saw Ltd. are located at three places in India. The first plant was set up in Kosi Kalan in UP to manufacture SAW Pipes using U-O-E technology. Later, a coating plant was also added here. At Nashik (Maharashtra), the company has one plant, engaged in the manufacture of Seamless pipes. There are two manufacturing bases in Mundra (Gujarat). Mundra-I, which is fully export oriented, has two plants to manufacture SAW Pipes and one plant for coating. Mundra-II, the second base, has three more plants.

Milestones

Founded in 1984

Commissioning of first and only UOE Pipe Mill manufacturing

LSAW Pipes in Kosi Kalan, India with a capacity of 250,000 M.T

P.A, located about 1200 Kms from nearest west coast port of India

API Line Pipe production commences

First order for ONGC casing Pipe completed

Three major offshore projects awarded by ONGC under international

competitive bidding - Italian and Japanese being L2 and L3 bidders

Seamless Pipes and Tubes Division commissioned at Nashik. 

First Coating plant commissioned at Kosi Kalan

Received first export order

First Induction bending plant commissioned at Kosi Kalan

Commissioning of second LSAW pipe manufacturing facility as

100% export oriented unit using JCO forming process at

Nanakapaya, Mundra to meet the export market with a capacity of

300,000 MT per annum close to Port Mundra – The first major

private port on west coast of India. 

Internal coating plant commissioned at Kosi Kalan Commissioning

of second Coating plant at Nanakapaya – Port Mundra

Concrete weight coating plant commissioned at Nanakapaya – Port

Mundra

Commissioning of third Coating plant at Samaghogha, Mundra

Commissioning of third Pipe mill manufacturing LSAW Pipe using

JCO forming process in Samaghogha, Mundra with a capacity of

250,000 MT per annum.

Commissioning of fourth Pipe mill manufacturing HSAW (Spiral)

Pipe at Samaghogha, Mundra with capacity of 150,000 MT per

annum

Start up of Integrated Pipe Unit Ductile Iron Pipe manufacturing

plant of 200,000 capacity along with Blast Furnace of 250,000 MT

per annum capacity and a Coke Oven plant

Commissioning of fifth & sixth Pipe mill manufacturing HSAW

(Spiral) pipe at Bellary - Karnataka and Samaghogha-Mundra with a

combined capacity of 390,000 MT per annum. 

Second Induction bending plant commissioned at Samaghogha,

Mundra

Commissioning of seventh Pipe mill manufacturing LSAW using

JCO forming in Nanakapaya - Port Mundra with capacity of 300,000

MT per annum

Jindal Saw Ltd. firmly believes that the essence of corporate governance is based on three key aspects:

Integrity & FairnessThe management's freedom should be exercised within a framework of checks and balances. Accordingly, the Company will conduct its affairs in a manner that ensures

fairness to all stakeholders, both internal as well as external. To this end, the Company has formulated ethical standards and evolved processes and methodologies that prevent the misuse of power and facilitate fair and effective management.

Code of Conduct Company has evolved the following code of conduct for its Directors and senior management:

Transparency & DisclosureThe Company believes that transparency means that all the policies, decisions and actions are clearly explained to those to whom the Company is responsible, in particular, those who are affected by such policies, decisions and actions. Accordingly, such transparency is implemented through proper disclosures, at the same time ensuring that the Company's strategic interests are not jeopardised. In practice, this is achieved through strong MIS, robust internal controls, an active audit committee and strict adherence to procedures by the Board of Directors.

Accountability & ResponsibilityThe executive management of the Company is accountable to the Board of Directors, which in turn is accountable to shareholders and other stakeholders, including customers, employees, vendors, creditors, and to society and the general public at large. The Company also believes that high levels of accountability are ensured by vesting decision-making powers at appropriate levels of the organisational hierarchy. Hence, empowerment is an integral part of the Company's philosophy of corporate governance.

At Jindal Saw Ltd., the principle of corporate governance is based on two core aspects:

1. The management must be given the executive freedom to drive the Company forward, towards its goals, objectives and vision, without undue restraints

2. This freedom of management must be exercised prudently within a framework of effective accountability

International Clients

 AGIPGasBV,(Libya)

 

Petroleum Develoopment Omam, Omam

PTTE&P, Thailand

Domestic Clients

 Assam Gas Co. Ltd.

Bharat Petroleum Corpn. Ltd.

British Gas

Cairn Energy Ltd.

Dodsal Ltd.

Engineers India Ltd.

Essar Construction Ltd.

 

Hindustan Petroleum Co. Ltd.

Indian Oil Co. Ltd.

Indraprastha Gas Ltd.

Larsen & Toubro

Mahanagar Gas Ltd.

Oil & Natural Gas Co. Ltd.

Oil India Ltd.

AGIPOilCompany (Libya)

BechtelIntec Consortium, UK

Burullus Gas Co., Egypt

ChinaNational PetroleumCompany (China)EastGasCompany(Egypt)

FIMCO F2E, Iran

Gasco (Egypt)

Qatar Petroleum, Qatar

Repsol Oil Operations

Saipem (Italy)

Saipem / CCC – JV, Omam

SaudiArabianOilCo.(Saudi Arabia)

Shell Petrleum Development Company (Nigeria)

Shell, Brunie

Hyundai Heavy Inds. Ltd, Korea

Iranian Offshore Oil Co. (IOOC), Iran

Shell, The Netherlands

SichuanPetroleum Administratiion(China)

FINANCIAL PERFORMANCE

1. FINANCIAL RESULTS

Particulars For the year P For the year2010 - 11 2009 - 10(Rs. in lacs) (Rs. in lacs)

Gross Sales & Income from Operations 1,12,330.12 80,495.90Profit before Interest and Depreciation 13,804.22 16,094.63Less:

- Interest 3,866.91 3,813.58- Depreciation 2,188.33 1,842.47

Profit before tax 7,748.98 10,438.58Provision for Income Tax and Wealth Tax 2,124.82 2,830.89Net Profit after tax 5,624.16 7,607.69Add:Balance brought forward from previous Year 9,435.07 4,994.72

________ ________ Total amount available for appropriation 15,059.23 12,602.41Less : Appropriations:

(a) Debenture Redemption Reserve 187.50 275.00(b) Capital Redemption Reserve - 750.00(c) Transfer to General Reserve 1,000.00 1,000.00(d) Interim Dividend on Preference Shares paid - 43.00(e) Proposed Dividend:

- on Equity Shares 974.48 974.48(f) Corporate Tax on proposed dividend 127.35 124.86 Balance carried to Balance Sheet 12,769.90 9,435.07

TECHNICAL PERFORMANCE

Serving the Oil and Gas Sector for two decades

Early 80's SAW Pipes Limited, India is born.....

India's first long seam, U-O-E pipe manufacturing unit established Producing 16" - 36" OD pipes upto Grade X-65 with initial capacity, of 0.1million MT/ Annum Meeting small to medium size requirement of the country in the line Pipes segment Providing world class quality and gearing to expand...

The 90's Era of expansion and integration......

Capacity expansion from 100,000 MT/ Annum to 1.0 million MT/ Annum SAW Pipes, takes on orders of large stature both in the international and the domestic market. New plants for Three layer Polyethylene / Polypropylene, Fusion Bond Epoxy coal tar

enamel and concrete weight coating established. New pipe plant and Steel Mill facilities established in the USA to facilitate business in the international market. Long Radius Bends and Connector Casing fabrication started SAW Pipes becomes "Total Pipe Solutions" provider.

Turn of the Millenium, 2000.... Focus on exports......

New Pipe plants established at port location on the west coast of India to cater to the increasing export demands Constant strategising and a vision for perfection, SAW Pipes surges ahead creating a global footprint Product range increases to 16 inch OD to 56 inch OD upto grade X-80 Manufacturing capacities grow to

1.5 million MT/ Annum of Line Pipes 12 million sqm/ Annum of Coatin

SAW PIPES LIMITEDWinning starts with beginningIn every phenomenon the beginning always remains the most notable moment. Saw Pipes Limited began its glorious journey to success in the year 1984, when it became the first company in India to manufacture Submerged Arc Welded (SAW) Pipes using U-O-E technology. As a part of the $3 billion Jindal organization, the forerunners in Indigenoussteel industry, SPL has established itself as a market leader and a global major in providing total pipe solutions to the industry. Our innovative and process driven business environment, backed by the state of the art manufacturing facilities in India and USA have helped us create a business with complete backward and forward integration, that promises immense growth. Today Saw Pipes Limited enjoys a market leadership in manufacturing large diameter Submerged Arc Welded line pipes used for energy transportation. Since its inception, SPL has pioneered and perfected the art of pipe making using U-OE and J-C-O technology and has evolved into one of the most preferred and reliable providers of value in all of its businesses. With a wide product portfolio,dedicated work force, state of the art technology and enormous capacities, we continue to stride ahead with readiness and responsibility to rewrite our saga of success yet again.

Our work, a presentation of our Capabilities

At Saw Pipes Limited we feel that the greatest reward for doing anything, is the opportunity to do more. Providing our clients with the best of products that cover a wide range of applications has been a constant endeavor at SPL. Thus reinforcing our positioning of ‘ Total Pipe Solutions’ company. One more step in this direction is our project for production of Ductile Iron (DI) & Cast Iron (CI) pipes for Water and Sewage transportation at Mundra.

Our expanded portfolio now includes· Large diameter submerged arc welded pipes· Carbon, alloy and stainless steel seamless pipes manufactured by conical piercing process· Spiral pipes and steel bends for energy transportation sector· Cast Iron & Ductile Iron Pipes (CIDI) for water and sewage transportation.Besides these state of the art products, we also offer value added services like anti corrosion coatings, concrete weight coatings for offshore applications, long radius bends and connector casings for drilling operations and connecting the pipelines. We are the only company in India to have world-renowned NACE Lab to test the material used in manufacturing of pipes meant for sour gas/ crude transportation.

US OperationsJindal United Steel mill rolls hot-rolled plate widths up to 160 inches (4.1m) and thickness up to four inches (102mm). We service shipyards, oilfield fabricators, heavy equipment producers, machinery makers, and many other end users and distributors who need high quality carbon plate. Using quality plate from Jindal United and other Suppliers, the SAW Pipes USA mill produces DSAW pipe to service energy and petrochemical markets, including large diameter line pipe for onshore and offshore use, heavy-duty casing, and piling. Strategically located in Baytown, Texas, just 30 miles outside Houston, The facilities are ideally suited to serve the needs of the global energy and petrochemicals industry and as affiliates of Saw Pipes Limited, the Texas Works plants benefit from the parent organization’ s world-class engineering expertise and product know-how.

The Nucleus of CreationOur State of the Art manufacturing plants are the hubs that produce quality and innovation combined together with products made, as per clients requirement and specifications. Located at Kosi Kalan (Uttar Pradesh), Mundra (Gujarat), Nashik (Maharashtra) and Baytown (Texas, USA) all our manufacturing plants specialize in their own areas of manufacturing and have dedicated coating plants.

BOARD OF DIRECTORS:

At present the strength of Board of Directors is 9 whose composition is given below: -

Name of Director Status Smt.savitri jindal chairperson

Shri P.R. Jindal vice chairman

Shri indresh batra managing director

Ms sminu jindal managing director

Shri Devi Dayal director

Shri sk gupta director

Shri kuldeep bhargava director

Shri hs choudhary whole time director

Dr rajkamal aggarwal director

INTRODUCTION TO HUMAN RESOURCES

As we know that human resources relates to the HRM is an art of utilizing human resources in order to accomplish desired result through application of behavioral sciences. It encompasses of planning, organizing, directing, controlling the functions of procurement, development, maintenance and utilization of workforce to attain objective more economically and effectively.

HR in an independent discipline formed by conglomeration of sociology , psychology , political science and others. HRM is regarded by some personnel managers as just a set of initiatives. Human resource been the key factor in an industry or an organization has to be major concern to the top management since its contributes to a great extent for the attainment of the business objectives.

The main function of HRD is to incorporate various systems and instruments for the development of an organization setup, to create and sustain the work culture. The organization has decided to set on data-based feedback for the implementation of the system and develop competent personnel needed at various levels. They analyze organizational practices from the point view of the HRD and also suggests the way of advancing Humanization & its Effectiveness on the organization. HRD determines formal and informal job description used for staffing purpose as well as for other HR

activities, strategic and coherent approach to the management of an organization’s people contributing towards the attainment of the business objectives. It involves the set of interrelated policies and forms a business focused approach to manage people for the competitive advantages.

HR is the continuing process of the personnel management. It’s objective is to accomplish maximum individual development , desirable working relationship between employers and employees and also effective molding of the human resources as contrary to the physical resources. HR refers to the practices and policies we need to carry out the people or personnel aspects of management job . They includes-

Conducting job analysis. Planning labor needs and Recruiting candidates. Selecting job candidates. Orientation and Training new employees. Managing wages and salaries. Providing incentives & Benefits. Appraisal performance. Communicating. Training and Development Building employees commitment.

FRINGE BENEFITS

MeaningThese benefits are usually known as ‘Fringe Benefits’ as they are offered by the employer to the employee as a fringe. Different terms have been used for these benefits, such as WELFARE EXPENSES, WAGE SUPPLEMENTS, and SUBWAGES etc.

DefinitionThe Glossary of Current Industrial Relations and Wage Terms has defined fringe benefits as “Supplement to wages received by workers at a cost to employers. The term encompasses a no. of benefits- paid vacation, pension, health and insurance plans etc.- which usually add up to some thing more than a fringe, and is sometimes applied to practice that may constitute a dubious benefit for workers.”Features

Fringe benefits are those payments or benefits, which a worker enjoys in addition to the wages or salary he receives.

These benefits are given to stimulate worker’s interest in their work and to make their job more attractive and productive for them.

Fringe benefits represents a labour costs for an employer, for it is an expenditure which he incurs on supplementing the avg. money rates due to his employees who have been engaged on the basis of time schedules.

Fringe benefits are offered on the basis of length of service, sickness, sex, the hazards of life the worker encounters in the course of his work.

To be termed a ‘fringe benefit’, a labour cost should be intended by an employer as a benefit desired by its staff.

A fringe must constitute a positive cost to the employer and should be incurred to finance an employee benefit.

Need / ImportanceAn org. designs and establishes a benefit-and-service program to achieve the following ends: -

To keep in line with the prevailing practices of offering benefits and services which are given by similar concerns.

To recruit and retain the best personnel. To provide for the needs of employees and protect them against certain hazards of

life To increase and improve employee morale and create a helpful and a positive

attitude on the part of workers towards their employees.

To make the org.. a dominant influence in the lives of its employees with a view to gain their loyalty and cooperation, encouraging them to greater productive efforts.

To recognize the official trade union’s bargaining strength.

Types of Benefits(a) Employee security payments

Employees contribution stipulated in legal enactment: old age, survivor, disability, health and unemployment insurance.

Payment under Workmen’s Compensation Act. Supplemental unemployment benefits. Accident insurance Pensions Contribution to savings plan and health and welfare funds.

(b) Payment for time not worked Rest periods Holidays Vacations Sick leave Severance pay Leave of absence Pension programs

Insurance

(c) Bonus and awards Overtime Shift payments Attendance bonus Festival bonus Suggestion awards

Types of Services Services related to type of work performed Eating facilities Transport facilities Child care facilities Housing facilities Financial and legal services Purchasing services Educational services Medical services Outplacement services

FRINGE BENEFITS

To many people compensation means pay. Anything else an employer might provide is often considered so minor that it is a fringe benefit . However in recent years, fringe benefits have grown to become a major part of the employee compensation and employer labor cost.

Some of the fringe benefits are listed here Group Life Insurance, Supplemental Life Insurance, accidental death and dismemberment insurance, voluntary short-term disability plan, long term disability plan, medical insurance, dental insurance, stock purchase plan, tuition reimbursement, holidays, company subsidized cafeteria, profit sharing retirement plan, free parking, rest breaks etc. Most of these benefits and services are fully paid for by the company.

Employee benefits and services seek to satisfy Societal, Organizational and Employee objective.

I. SOCIETAL OBJECTIVE

To solve social problems and to provide security for interdependent wage earner, government rely on the support of the employers. Through favorable tax treatment, employees can receive most benefits tax – free ,while employers can deduct the cost of benefit as a regular business expense. Although government tax collections are reduced by these text breaks, these health care, disability, life insurance and retirement benefit reduce the burden on government and charitable agencies when ill health , death or retirement occur.

II. ORGANISATIONAL OBJECTIVE

From these large outlays for fringe benefits, what do employers gain ? Companies must offer some of the fringe benefits if they are to recruit successfully in the labor market. If they do not offer health insurance and paid vacations, recruits and present employees would work for some other company or its competitor company. Similarly many employees will stay with the company because they do not want to give up the benefits, and so employee turnover is lowered.

Vacations along with holidays and rest breaks, help employees reduce fatigue and many enhance productivity during the hours the employees do work. Similarly, retirement, health care and disability benefits may allow workers to be more productive by freeing them of concern about medical and retirement costs. Like-wise, if these benefits were not available, employees might elect to form a union and collectively bargain with the employer.

Therefore, it is accurate to state that indirect compensation may:-1. Reduce fatigue2. Discourage labour unrest3. Satisfy employer4. Aid recruitment5. Reduce turn-over6. Minimise overtime

III. EMPLOYEE OBJECTIVE

Employees usually seek employer provided benefits and services because of the lower cost and availability, for example company insurance benefits, usually are less expensive because the employer may pay some or all of the cost. Even when the workers must pay the entire premium, it is still less expensive because the group plans save the insurer cost of administering and selling many individual policy. Lower income taxes are another employee objective.

For some employees, there primary objective may be to obtain benefits and services, especially health care and life insurance. Without employer provided insurance, these policies may be obtainable or unaffordable if the employee has a pre-existing medical condition.

The objective of societal, organizational and employee have encouraged rapid growth of benefits and services. This growth has affected all areas of fringe benefits and services including insurance, security, time of and work scheduling benefits.

HEALTH RELATED INSURANCE

Insurance benefits spread the financial risks encountered by employees and their families. These risks are shared by pooling funds in the form of insurance premiums. Then, when insured risk occur, the covered employees or their families are compensated.

Health related insurance coverage is the most common form of insurance provided by the employer. In one survey of 994 companies, reported making payments for health insurance.

MEDICAL INSURANCE

Medical insurance pays for sickness, accidents and hospitalization expenses.

DENTAL INSURANCE

Dental insurance benefit plans for the most preventive care and for a portion of needed dental work, sometimes, including false teeth and brace.

LIFE INSURANCE

Life insurance was the first form of insurance offered to workers by employer. As a result, Group Life Insurance (GLI) has become a practically universal element in corporate employee benefit program. In the majority of firms, the amount of life insurance is a multiple of employees’ salary.

SYNOPSIS OF THE STUDY

THE TITLE OF THE PROJECT

The title of the project is “FRINGE BENEFITS” had been completed in JINDAL SAW LTD with in gurgaon region.

THE OBJECTIVE OF THE PROJECT

The basic objective of the project is as follows:- To know the employee’s satisfaction level about the Fringe Benefits. To critically analyze the functioning of the Fringe Benefits.given to employees. To identify the probable areas of improvement to make Fringe Benefits Schemes

more effective.

SCOPE OF STUDY

The scope of study was confined to the Module 1 of JINDAL SAW LTD., Gurgaon.

The benefit of the company is that through this study the company can improve and modify its Fringe Benefits.Schemes.

The benefit of the study for the researcher is that it helped to gain knowledge and experience and also provided the opportunity to study and understand the prevalent Fringe Benefits.given to employees.

RESEARCH METHODOLOGY

RESEARCH PROBLEM

To identify and analyze the factors that can be linked with the HR Department of the JINDAL SAW LTD. to improve the efficiency and effectiveness of the Fringe Benefits given to employees.

THE SCOPE OF THE STUDY

The study will be conducted at JINDAL SAW LTD. The whole Fringe Benefits given are taken under consideration irrespective whether they belong to Managerial level or Working level.

THE SIZE OF THE REPRESENTATIVE SAMPLE

The size of the representative sample of the 1000would be 10% of the Managerial as well as Non-managerial level of JINDAL SAW LTD.

THE METHOD OF SELECTING REPRESENTATIVE SAMPLE

The Selection of the representative sample will be based on Random Sampling. The whole of the personnel in the HR Department are taken into consideration in

this study.

METHOD OF DATA COLLECTIONFor the study of Fringe Benefits at JINDAL SAW LTD. PRIMARY DATA are used. The data was collected with the help of different sources such as:

PRIMARY DATA: -

QUESTIONNAIRES. INTERVIEWS. OBSERVATIONS. INFORMATION FROM CORRESPONDENTS.etc

SECONDARY DATA :-

For the study of Fringe Benefits SECONDARY DATA are used. HR Department of JINDAL SAW LTD. provided these data and data was collected from certain references books. The SECONDARY DATA includes both Published as well as Unpublished sources:

BROCHURES. JOURNALS. COMPANY MAGAZINES, RECORDS. ANNUAL REPORTS .etc

.

LIMITATIONS

Even though every effort has been done to minimize the variation and present a factual picture with the help of statistical method, but still there are some limitations :-

Due to less time or time factor is play an important role in the report making two month is not enough to complete the whole project

Money is the another constraint in making of the whole complete project

Certain important information was kept secret. This is because of the reason certain hypothesis were taken.

The respondent may not have marked all responses honestly so that the collected data may be not fully accurate.

Peoples working in the organization are very cooperative but due to busy schedule of the HR officers they were not able to give more time &attention.

GRATUITY

Short title and application

These rules may be called “JINDAL SAW LTD. Gratuity Rules” and shall be deemed to have come into force from the dates hereunder:

Non-officers -- 30th May, 1973

Definitions

a) Emoluments shall mean full pay which term includes basic pay, dearness

allowance, special pay, personal pay and non-practicing allowance

admissible immediately preceding the date of separation from service.

b) Family shall include the following:

i) Wife , husband, sons, daughter, father, mother, unmarried brothers.

Eligibility

An employee who was in service of the Corporation on the date of applicability of these

rules or thereafter will be eligible for the benefits under the scheme and these rules.

Rates

Subject to other provisions of the scheme and these rules, gratuity will be paid to all categories of employees @ 15/26 of the monthly emoluments for every completed year of service or part thereof in excess of 6 months subject to a maximum of 16-1/2 times the monthly emoluments or RS. 1 Lakh, whichever is less.

Gratuity for the residual portion of services less than a year will be payable as under:

Service period Entitlement

More than six months - @ 15/26 of the monthly wages

6 months - @ 15/52 of the monthly wages

Less than 6 months - Nil

Benefits

Gratuity will be payable in various contingencies to the extent and subject to the conditions indicated below:

a) In case of death of employees in the service, the amount of gratuity will be

as per the normal provisions as outlined in the sub-clause 26.3.2.4 or as

worked out below, whichever is more.

During 1st year of service -2 months’ emoluments

After 1 year but before -6 months’ emoluments

5 years’ service

After completion of 5 years’ -12 months’ emoluments

service but before 20 years’ service

Service of 20 years or more - Half a months’ emoluments

for completed Half year of

qualifying service subject to a

maximum of 33 times the

emoluments provided the amount of

death gratuity shall in no case exceed

Rs. 1 Lakh.

b) In case of permanent mental or physical disability, gratuity will be paid as

following:

i) If the service is less than one year, gratuity will be equivalent to 4

monthly emoluments

ii) If the service is one year or more, but less than 5 years, gratuity

will be equivalent to six monthly emoluments.

iii) If the service is 5 years of more gratuity will be payable equivalent

to 10 monthly emoluments or at the normal rate of 15/26 of

monthly emoluments for each completed year of service.

c) Gratuity will be paid at the rate and subject to the conditions mentioned

above in the following cases:

i) Resignation or voluntary retirement or termination from service

under the contract of employment provided the service of the

employee is 5 years or more.

ii) In the case of Government servants who are on deputation and are

absorbed in the Corporation’s service, previous service with the

Government will be counted for computing the minimum

qualifying service for determining eligibility to gratuity under the

Corporation’s Gratuity Rules.

iii) The total of gratuity received by the employee from the

Government and that payable by the Corporation does not exceed

the amount of maximum gratuity admissible under the

Corporation’s Gratuity Rules.

d) In case of termination, discharge or dismissal as a measure of disciplinary

action, payment of gratuity will be regulated as follows:

i) If the service is less than 10 years, no gratuity is payable.

ii) If the service is 10 years or more but less than 15 years, gratuity

will be paid @ ¾th of the amount payable.

iii) If the service is 15 years or more, gratuity will be paid @

mentioned above.

e) Effective from 1.10. 1982, an employee who resigns from his service with

the Corporation and joins another Govt Deptt., transfer of gratuity amount

can be effected even if the employee has not completed the minimum

eligibility period of 5 years. However, such transfer will be effected to the

Govt. Deptt in which the employee has joined after resigning from the

service of the Corporation subject to the condition that:

i) Such Govt. deptt. agrees to accept the gratuity transfer and make

payment to the employee when he leaves it; and

ii) In case the gratuity amount is not ultimately paid to the employee

concerned for any reason whatsoever, the transferred amount shall

be paid back to the Corporation.

Compassionate Gratuity Rules

In addition to normal gratuity, compassionate gratuity may be paid

when co. is satisfied that the death of an employee has left his family in straitened

circumstances.

The amount of compassionate gratuity will be half months’ pay for each year of

service subject to a maximum of 12 months’ pay and minimum of 10 months’ pay

For the purpose of determining the amount of compassionate gratuity, pay means

basic pay last drawn and will not include dearness allowance ,city compensatory

allowance or house rent allowance, but will include officiating allowance if it had

been drawn by an employee for a period of at least 12 months immediately

preceding death.

GROUP SAVINGS- LINKED INSURANCE/DOUBLE

ACCIDENT BENEFIT SCHEME

LIC have formulated a Group Savings- Linked Insurance Scheme for employees of

public sector undertakings .The scheme has also been introduce in JINDAL SAW LTD.

Under the scheme a part of monthly income payable is charged for risk coverage of life

and the remaining amount is kept in savings account earning interest at pre-determined

rates compounded on yearly basis .The premium are payable by the member employee

through the employer by deductions from monthly salaries. The scheme is intended to

provide the member employees the twin benefits of an insurance cover to help their

families in the event of death in service and a lump sum payment to augment their

resources after attaining the age of superannuation. About 1/3 rd of the monthly premium

is contributed towards risk cover and the balance 2/3rd is put by LIC in a savings account

earning interest.

Eligibility

a) Employees in regular scales of pay of the employer are eligible

b) All future employees shall join the scheme on the relevant entry dates as

soon as they satisfy the condition of eligibility.

Contributions

Every member shall pay a monthly contribution .The commencement shall

commence on entry date and continue untill the terminal date or otherwise

as specified in the rules.

The employer shall recover the contribution in respect of all the members from their

salaries and remit the same in full on the due date i.e. on the 20 th of each month to the

corporation for providing benefits in accordance with the rules.

Benefits

On the death of the member before the terminal date.

The life assurance benefit as mentioned here under shall become payable

to the beneficiary of the member employee:

GROUP INSURED AMOUNT

I RS 1,00,000

II RS 75,000

III RS 50,000

IV RS 25,000

On reaching terminal date or on earlier cessation of service other than death

The total amount to the credit of the member in the running account as shall be

determined by the Corporation having regard to the entry date, the amounts credited

to the running account from time to time, the rate of interest and the date of exit

shall become payable to the member.

Change In Category On Promotion/ Appointment

When an employee in lower category is promoted /appointed to higher category, the

change in the amount of insurance cover and the increase in his monthly subscription

shall take effect only on the following annual renewal date for which correspondingly

necessary changes may be incorporated in the promotion/appointment orders.

Procedure For Payment To LIC

a) JINDAL SAW LTD. makes the payment to LIC every month in advance but

before 20th of the following month.

With a view to ensure simplicity, Finance, R&P shall give the debit note to the units

at the time of releasing payment to LIC based on the number of member officers

intimated by the units.

GROUP INSURANCE SCHEME

The LIC Group Insurance Scheme for employees of JINDAL SAW LTD. is

designed to provide insurance protection in the event of premature death while in

active service. The scheme is in lieu of the benefits envisaged under the Employees’

Deposit Linked Insurance Scheme, 1980 (subsequently amended in May,1990).

Eligibility

The employees of the employer who are within the following category shall be

eligible to join the scheme:

i) Employees in the regular scales of pay of the employer are eligible

to join the scheme.

ii) All future employees shall become members of the scheme on the

relevant entry dates.

No members shall withdraw his membership from the scheme as long as

he satisfies the conditions of eligibility.

Premium

The Company shall pay to the Corporation in respect of each member on the entry

date and the relevant annual renewal dates such premiums as are required to secure

the benefits under the assurance affected on his life in accordance with these rules.

Assurances

On the entry date, an assurance shall be affected on the life of each member under

One Year Renewable Group Term Assurance Plan for a sum assured equal to

Rs .27, 000

Benefits on death while in service

Upon the death member whilst in service, the sum assured under the assurance shall

become payable to the nominee by the Corporation.

Termination of assurance

The assurance on the life of a member shall immediately terminate upon the member

ceasing to be regular employee of the employer. The Corporation will immediately

intimate the appropriate action.

Discontinuance or amendment of the scheme

The Company reserves the right to discontinue the scheme or to amend the rules

thereof on any annual renewal date, subject to 3 months” notice being given to the

Corporation provided that the scheme may be discontinued or the rules amended only

after obtaining the prior approval of the appropriate Government Authority.

Rates of premium and conditions of assurance

The rates of premium and conditions of assurance under which the Corporation is

prepared to arrange the scheme shall be subject to an agreement between the

company and the Corporation, The conditions of assurance and rates of premium may

be modified by the Corporation from time to time on any annual renewal date, subject

to 3 months” notice being given to the Company.

Post- Retirement Medical

Attendance Facility

The scheme of medical attendance facility during post- retirement period has been

introduced with effect from 01.01.1985 for officers and 01.11.1988 for non-officers (as

amended from time to time). As a purely welfare measure, the scheme is aimed at

providing medical attendance, in their old age, to eligible employees of the Corporation

(And/or their dependent spouse) who superannuate/voluntarily retire/resign or are

retrenched after putting in satisfactory and long service with the corporation. The scheme

is contributory but voluntary. The details of the schemes are given below.

SCHEME FOR PROVIDING POST-RETIREMENT MEDICAL

ATTENDANCE FACILITY FOR OFFICERS

Eligibilty

Within the overall framework of the rules and regulations of the Medical Rules of the

Corporation, the facility of post-retirement medical attendance will be admissible to the

following categories of officers on a contributory and voluntary bases:

i) Those who retire from the service of the---- on reaching the age of superannuation,

subject to rendering minimum service for 10 years in JINDAL SAW LTD.

ii)Those who prematurely/voluntarily retire from the service of the Corporation after

attaining the age of 50 years, subject to rendering minimum service for 10 years in IOC

and/or with Government and/or in organisations in the Public Sector.

iii) Those who resign from the services, with specific consent of the corporation, after

attaining the age of 50 years subject to rendering minimum service for 20 years.

iv) Those who relinquish charge as whole-time Director of the Corporation at Board level

after rendering minimum service for a term of the tenure appointment provided one of the

conditions at (i), (ii) and (iii) above is met.

Contribution

The facility of post-retirement medical attendance will operate on a contributory and

voluntary basis. An officer, depending upon the category to which he belongs at the

time of cessation of service, will be required to make a one-time non-refundable

lumpsum contribution (effective from---), as indicated below, so as to become

eligible for the benefits under this scheme 1894.

Group I (Officers in Grade ‘A’) - Rs. 2,250

Group II (Officers in Grade ‘B’, ‘C’ & ‘D’) - Rs. 2,750

Group III (Offices in Grade ‘E’ and above) - Rs. 3,250

Chairman/Functional Director - Rs. 3,250

The lump sum contribution will be payable by the officer in advance, prior to

cessation of service in the Corporation.

Where both husband and wife are employees of the Corporation, the contribution

towards membership under the scheme would be payable by one of them only. In that

event, upon superannuation, the spouse who retires later would not be enrolled under

the scheme independently. The medical benefits would be, as in other cases, restricted

to the prescribed ceilings for the member and the other being covered as the spouse.

However, in case it is considered beneficial, option may be exercised jointly by both

ex-employees (husband and wife) and the differential amount paid, at the time of

superannuation of the latter, to convert the existing membership in the name of the

one who was superannuated last.

In case the member/spouse is hospitalised, it would be a pre-requisite to notify

Management at the earlies.

In case of domiciliary medical attendance, i.e. medical attendance received otherwise

than during hospitalisation in recognised as well as other hospitals, the reimbursement

will be made for every block of 2 years limited to the following m maximum limits

per financial year (w.e.f. 01.01.1990).

Group I - Rs. 2,700

Group II - Rs. 4,000

Group III - Rs. 5,400

Chairman/Functional Director - Rs. 8,000

The above limits for reimbursement of expenses on domiciliary medical

attendance will operate within the overall limit for reimbursement of expenses

during hospitalisation as mentioned above.

The scheme and/or the benefits thereunder shall be liable to be withdrawn and made

inoperative in to at anytime, for misuse or abuse of the benefits under the scheme or

for any other reason whatsoever. The scheme and/or the benefits thereunder shall not

be deemed to be a matter of right or contract or term/conditions of employment.

Benefits.

The benefits of post-retirement medical attendance facility under the scheme shall be

admissible only to the retired officer and the dependent spouse. In the event of the

death of either, the benefit will continue to apply to the survivor. A female spouse not

availing medical facilities from any other source will be considered eligible.

The reimbursible ceiling limits for consultation fees, room charges, charges for

various tests and investigations, etc. shall be those as applicable from time to time

under the Medical Rules to a serving officer of similar rank.

Reimbursement of medical expenses incurred during hospitalisation in hospitals other

than those nominated as recognised hospitals in metropolitan cities, as also in

hospitals in cities other than metropolitan cities will be made for every block of two

financial years, subject to the following maximum limits per financial year (w.e.f.

01.01.1990).

Group I - Rs. 8,000

Group II - Rs. 12,000

Group III - Rs. 16,000

Chairman/Functional Director - Rs. 24,000

Reimbursement of medical expenses incurred during hospitalisation in hospitals

nominated by the Corporation as recognised in metropolitan cities only (Delhi,

Bombay, Calcutta and Madras) will be made as per ceilings laid down under the

Medical Rules of the Corporation

as amended from time to time and as applicable to a serving officer of similar rank.

However, expenses beyond financial ceilings lad down above will be regulated as

under:

a) Admissible expenses on account of serious diseases as per

notified list given in Annexure V shall be reimbursible

irrespective of the financial ceilings

b) Admissible expenses on account of diseases other than serious

diseases as per list referred to at (a) above shall be reimbursible

upto 85% of such expenses.

The above limits for reimbursement of medical expenses shall operate as the combined

limit for the officer and the dependent spouse.

POST-RETIREMENT MEDICAL SCHEME

FORNON-OFFICERS

Title

The scheme may be called “Post-Retirement Medical Scheme for Non-Officers”.

Definitions

i) “Dependent Spouse” shall mean a female spouse irrespective of her

income or an ale spouse wholly dependent on the eligible female

spouse and having income of less than Rs. 500/- per month (excluding

superannuation benefit receivable from Corporation in case of death of

the female spouse).

ii) “Nominated Doctor” shall mean a qualified doctor nominated by the

corporation as places where the corporation does not have its hospital.

iii) Authorized Medical Attendant” (AMA) will mean a registered

medical practitioner qualified in modern system of allopathic

medicines with a minimum qualification of MBBS. In small

towns/villages where medical practitioners with MBBS or higher

qualifications are not available, the term AMA will include registered

medical practitioners in allopathic system of medicine with a

qualification less than MBBS but not lower than a Licentiate in

Medicine.

Eligibility

Employees fulfilling one of the following conditions would be eligible to seek

membership of the scheme:

i) Those who retire from the service of the Corporation on reaching the

age of superannuation, subject to rendering minimum service for 10 years

in the corporation /Govt. Public Sector.

ii) Those who prematurely/voluntarily retire from the service of the

corporation after attaining the age of 50 years subject to rendering

minimum service for 10 years in the corporation.

iii) Those who resign from the service, with specific consent of the

corporation, after attaining the age of 50 years subject to rendering

minimum service for 20 years in the corporation/govt./ public sector.

iv) Those whose services are terminated for reasons other than on grounds

of disciplinary action, subject to their attaining the age of 50 years and

rendering continuous service for a minimum period of 20 years in the

Corporation/Govt./ Public Sector.

v) The surviving female spouse of eligible employees who die while in

service (irrespective of the period of service rendered by the deceased

employee) providing the benefit of employment available to the dependent

of the deceased employee has not been opted for and availed of.

.Contribution

En eligible employee wishing to draw benefit under the scheme shall be required

to pay in advance the amount mentioned hereunder by cheque at par/demand draft

to the designated officer as non-refundable contribution, for securing the

membership of the scheme before cessation of service in the corporation.

However, in case of death contribution should be remitted within 3 months from

the date of death of the eligible employee.

Grade Category Rate of contribution

Per Financial year

I & II A Rs. 75/-

III & VII B Rs. 100/-

VIII C Rs. 125/-

(As on the date of separation)

Eligible employees opting to become members of the scheme are required to deposit their

contribution in blocks 5 years along with pro-rata contribution rounded off to the next

rupee for the financial year in which they seek membership. (For example, an employee

in Grade I seeking membership, say from 01.12.1988, will be required to make initial

contribution of Rs. 187/- i.e. Rs. 12/- for December, 1988 March, 1989 and Rs. 175/- for

the next block of 5 years.). Contribution for the future block (S) should reach the

designated officer before expiry of the current block period, failing which the

membership would be deemed to have been terminated on the last day of the 5 yearly

block without notice to the member/spouse.

Benefits.

The benefits under the scheme shall be admissible only to the eligible employee and

dependent spouse. In the event of death of either, the benefit will continue to be

admissible to the surviving dependent spouse subject to his/her contributing as pr

clause 29.2.4. above till death or remarriage. However, after demise of both, the

scheme shall cease to apply.

The treatment would be allowed only under allopathic system of medicines, for which

purpose the “ Authorized Medical Attendant”, “Specialist”, “Surgeon”, “Medical

Attendance”, “Hospital/Nursing Home Treatment”, “medicines” and “ Inadmissible

Medicines” will be as defined in clause 29.2.2 above.

The reimbursable ceiling limits for consultation fees, room charges, charges for

various tests and investigations, etc. shall be those as are applicable from time to time

under the “Medical Rules of the Corporation to the serving employees of similar rank.

Reimbursement of medical expenses incurred during hospitalization in hospital other

than those nominated as recognized hospitals in metropolitan cities, as also in

hospitals in cities other than metropolitan cities, will be made in terms of sub-clause

29.2.5.3. for every block of two financial years, subject to the following limits per

financial year:

Category A - Rs. 3,000/-

Category B - Rs. 4,000/-

Category C - Rs. 5,000/-

The above limits for reimbursement of medical expenses shall operate as the combined

limit for the employee and the dependent spouse.

In case of domiciliary medical attendance i.e. medical attendance received otherwise

than during hospitalization, the reimbursement will be made in terms of sub-clause

29.2.5.3. Above for every block of two years, limited to the following maximum

limits per financial year:

Category A - Rs. 750/-

Category B - Rs. 1,000/-

Category C - Rs. 1,200/-

The above limits for reimbursement of expenses on domiciliary medical attendance will

operate within the overall limit for reimbursement of expenses during

hospitalization

Reimbursement of medical expenses incurred during hospitalization for serious

sickness as per notified list given in Annexure VII in the hospitals nominated by the

corporation as recognized hospitals in metropolitan cities only (Delhi, Bombay,

Calcutta and Madras) without applying financial ceilings laid down. For other

ailments, reimbursement will be restricted to 75% of the admissible expenditure if the

expenditure incurred is beyond the applicable financial ceiling limits as at sub-clause

29.2.5.4 above.

In case the member/spouse is hospitalised, it would be a pre-requisite to notify the

designated officer at the earliest.

The corporation shall not consider requests for reimbursement in either of the

following cases:

a) Veneral diseases or diseases attributable to alcoholism; or

b) Stay in sanatorium or similar institution for convalescence.

The benefits under the scheme will be pro-rata in the financial year in which the

employee becomes eligible for the scheme.

In case an eligible employee and/or dependent spouse receives free reimbursable

medical attendance facility from any other source, the benefit under the scheme will

be admissible only to the extent of difference between the expenses incurred and the

reimbursement received from such other alternative sources, subject to the overall

limits above.

Medical expenses incurred for treatment outside the country shall not be admissible

for reimbursement under this scheme.

No medical advance shall be admissible under this scheme.

General

This scheme has been introduced purely as a welfare measure under which

reimbursement will be claimed not as a matter of right but at the sole discretion of the

Corporation and shall not form a contract or term/condition of employment and/or

separation.

An eligible employee desirous of availing the benefits under the scheme shall make a

formal application in the prescribed form prior to cessation of the service in the

Corporation. The option to join the scheme will not be available the employee ceases

to be in the service of the Corporation

In case of any disagreement or doubt with regard to interpretation of any of the rules

and regulation of the scheme, the decision of G.M. (HR) shall be treated as final.

ANALYSIS OF DATA COLLECTED THROUGH

QUESTIONNAIRE

Questionnaire targeted at the Employees: -

A Questionnaire was prepared for the purpose of getting feedback from the employees

regarding the “ Employee Satisfaction Level for the Fringe Benefits ” in the JINDAL

SAW LTD. Around 50 employees were selected randomly from different departments

across the grades and were distributed the questionnaire for the purpose of the study.

ANALYSIS OF THE DATA: -

The analysis of the data is done as per the survey findings. The data is represented

Graphically in Percentage .

I. AWARENESS

Sr. No. Opinion No. of Respondents Percentage %1 Yes 35 70%2 No 5 10%3 To some extent 5 10%4 Can’t Say 5 10%

70 % of the employees are aware of the social benefits .10% of the employees are unaware of the social benefits .10% of the employees are aware to some extent .10% of the employees are not sure about it .

II. BENEFITS

Sr. No. Opinion No. of Respondents Percentage %1 On the job breaks 3 9%2 Sick days and Well pays 6 12%

3 Holidays and Vacation 9 18%4 Leave of Absence 12 24%5 All 20 40%

9% of the Respondents said that on the job breaks are provided to them

12% of the Respondents said that sick day leaves and well pays are provided to them

18% of the Respondents said that holidays and vacations are given to them

24% of the Respondents said that absence leave provided to them

40% of the Respondents said all of the above

III. GOALS

Sr. No. Opinion No. of Respondents Percentage %1 Social Goal 5 10%2 Human Relation Goal 7 14%3 Macro-economic Goal 10 20%4 All 25 50%5 Any other 3 6%

10% of the employees said that social goals satisfy the fringe benefits

14% of the employees said that human relation goals satisfy the fringe benefits

20% of the employees said that Macro-economic Goal satisfy the fringe benefits

50% of the employees said that all the above goals satisfy the fringe benefits

6% of the employees said that there may be be other goals also that satisfy the fringe

benefits

IV. PROBLEM

Sr. No. Opinion No. of Respondents Percentage %1 Charge of paternalism 3 6%2 Excessive expenditure 6 12%3 Fads become Fashionable 5 10%4 Maintenance of the least

productive worker's4 8%

5 Neglect of other personnel function

7 14%

6 All 25 50%

50% of the employees said that they face the problem of charge of paternalism however12% of the employees said that they face the problem of excessive expenditure further 10% of the employees said that they face the problem of facts becoming fashionable and 8% of the employees said that they face the problem of maintenance of the least productive workers but 14% of the employees said that they face the problem of neglects of other personnel function

V. POST-RETIREMENT FACILITY

Sr. No. Opinion No. of Respondents Percentage %1 Fully satisfied 15 30%2 Quiet satisfied 25 50%3 Satisfied to some extent 7 14%4 Not Satisfied 3 6%

30% of the employees are fully satisfied with the Post-Retirement Facility however

50% of the employees are quiet satisfied with the Post-Retirement facility further

14% of the employees are satisfied to some extent with the Post-Retirement Facility but

6% of the employees are not satisfied with the Post-Retirement Facility

SECURITY

Sr. No. Opinion No. of Respondents Percentage %1 Yes 40 73%2 No 5 9%3 To some extent 7 13%4 Can't Say 3 5%

73% of the Employees said that they have job security9% of the employees said they don’t have job security13% of the employees said that to some extent they have job security 5% of the employees said they can’t say if their jobs are secured or not

SUGGESTIONS

The company is doing very well and is providing everything what an average employee

demands regarding the fringe benefits and social security. Still then there are various

suggestions that are given below: -

The employee should have clear understanding of various policies regarding:-

Rules

Retired employees benefits rules

Medical facilities

Statutory obligations and similar other rules.

Increment to be related with performance.

Redesigning compensation system to reduce multiple allowances

Adopt open-end scales.

Print booklets containing all the policy matters and circulate it among all the

employees

RECOMMENDATIONS

Increase in fringe benefits according to the position of the people working in the

organization.

The training for the employees about the work and tells about the terms and

condition of the company Statuary obligation and similar other rules and

regulation.

Tell employees about the retired benefits rules.

Provide good medical facility for the employees.

To adopt the open-end scale.

Provide good library for the employees when they are free they get relaxed their

and their knowledge about the company.

Conclusion of the study

Based on the analysis, through the questionnaire responses the following is the conclusion of the study:-

The organization follows the rules and regulations involved in fringe benefits of the organization. However there is some scope for improve with regard to following:-

The employees are up to some extent satisfied with the existing systems and practices of recruitment and selection procedure.

The Recruitment and Selection should not be lengthy.

To some extent a clear picture of required candidates should be made in order to search for the appropriate candidates.

The Recruitment and Selection Procedure should be impartial.

Organization, who does not follow the Recruitment and Selection Procedure, should follow.

In JINDAL SAW LTD. Gurgaon, a proper Recruitment and Selection Procedure is followed.

QUESTIONNAIRE

SURVEY ON THE EMPLOYEES SATISFACTION LEVEL FOR THE SOCIAL SECURITY AND BENEFITS

Dear Respondent ,

We are conducting a survey on the employee satisfaction level for the Social Security and Benefits. Your free and frank opinion would be very valuable in conducting the survey . Please answer the following questions with a ( ) in the appropriate boxes .

GENERAL

1) Are you aware of the Fringe Benefits? Yes No

To some extent Can’t say

2) Do you feel comfortable with the Fringe Benefits scheme ? Yes No

To some extent Can’t say

3) What are the benefits that the organization might give its employee to provide them with greater financial security ? Medical Benefits Children’s Educational Benefits

Accidents and Sickness Insurance All Any other

SCHEMES

4) Are you aware of the different Insurance Schemes like LIC , GIS etc.?

Yes No

To some extent Can’t Say

5) Are you satisfied with the benefits you get from these schemes ?

Fully Satisfied Quiet Satisfied

Satisfied to some extent Not Satisfied

EXTENSION OF BENEFITS

5) What are the reasons that an organization is extending the Fringe Benefits year after

year?

Employee Demands Trade Union Demands

Employer’s Preference As a Social Security All

6) What are different benefits that are provided by the organization to its employees ?

On the Job Break Sick days and Well pay

Holidays and Vacations Leave of absence All

SECURITY

7) Do you feel that you and your job are fully secured by the organization?

Yes No

To some extent Can’t Say

GOALS

8) What are the goals that satisfy the Fringe Benefits?

Social Goal Human Relation Goal

Macro-economic Goal All Any other

POST RETIREMENT FACILITY

9) Does your organization provides the post-retirement facility ?

Yes No

To some extent Can’t Say

10) Are you satisfied with the benefits that are provided in post-retirement facility ?

Fully Satisfied Quiet Satisfied

Satisfied to some extent Not Satisfied

PROBLEMS

11) What are the problems arise when these benefit programmes are adopted and

administered ?

Charge of Paternalism Excessive Expenditure

Fads become fashionable Maintenance of the least productive

workers

Neglect of other personnel function All

SUGGESTIONS 12) In your opinion what else can be done to improve the present system and practices of

the Fringe Benefits Schemes? ________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

_____________________________________________________________________

BIBLIOGRAPHY

Gupta, C.B., Principles and practice of management, National, New Delhi, 1996. Mamoria, C.B., Personnel management, Himalaya Publication House, Gurgaon, Mumbai – 400 004, 2002 Sharma, M.C. Question Bank in business studies, Sultan chand & Sons, Ram Nagar, New Delhi – 110055, 1992 Kumar , H.L. Practical Guide Labour Management , Universal Law Publishing Co. Pvt Ltd CEF-1A Ansal Dilkush, Industrial Estate,GT Karnal Road, Delhi –110033.1997

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