A STUDY ON

WAGE AND SALARY ADMINISTRATION

(With Special Reference to FACOR ALLOYS LIMITED)

INDEX
CHAPTER 1:
INTRODUCTION
NEED FOR THE STUDY
OBJECTIVES OF THE STUDY
SCOPE OF THE STUDY
METHODOLOGY
LIMITATIONS

CHAPTER 2:
INDUSTRY PROFILE
COMPANY PROFILE

CHAPTER 3:
THEORETICAL FRAME WORK OF THE STUDY

CHAPTER 4:
ANALYSIS AND INTERPRETATION OF THE STUDY

CHAPTER 5:
SUMMARY
FINDINGS
SUGGESTIONS

ANNEXURES
BIBLIOGRAPHY

INTRODUCTION
One of the most important factors in Human Resource Management is Compensation
Management. The soundness of compensation management depends upon the amount of wage or
salary is paid to an employee for a fair days work.
Wage and Salary administration refers to the established and implementation of sound
policies and practices employee compensation. Wage and salary administration is one of the vital
areas of the personnel administration. For sound wage and salary policies and programs are
essential. To procure, maintain, develop, promote and transfer employees and to get effective
results from them.
An organization has to balance fairly financial and non financial rewards extrinsic
awards. Effective awards and intrinsic awards. Effective reward system requires not only that the
absolute level of compensation paid by an organization compares favorably but also enquires that
it satisfies the principles of internal equity and equity with the job content. The employees gets
pay satisfaction of the perceived salary is equal to actual salary received and actual salary is less
than perceived salary the employee is dissatisfied with the salary. The remuneration paid by the
employer for the services of hourly, daily, weekly and fortnightly employees.
The remuneration paid to the clerical and managerial personnel employed on monthly or
annual basis. It is the amount of remuneration for unit of time excluding incentives, overtime pay
etc. Is the amount of wage fixed for the unit of time fixed on the basis of job evaluation
standards? Is an assembly of all properly evaluated standard wage rates set from in the sequence
according to the job and size of the rate. Refer to compensation given to the employees over and
above wage rates which often is not directly related to output performance of time worked. Refer
to special rates to certain period such as over time, Sundays and holidays. The objective of wage
and salary administration is numerous and sometimes conflict with each other. Candidates decide
upon their career in a particular organization mostly on the basis of the amount of remuneration
the organization mostly on the basis of the amount of remuneration the organization offers
qualified and competent people join the best paid organization. The organization should aim at
payment of salaries at that level where they can attract competent and qualified people. If the
3

salary does not present compare favorable with that of other similar organization. Employees
quit the present one and join the other organization.
The organization must keep the wage levels at the competent level, in order to prevent
quite. Internal equity does mean payment of similar wages for similar jobs within the
organization. External equity implies payment of similar wages to similar jobs in comparable
organization.
To protect in public as progressive employers and to comply with the wage
legislations. To pay according to comply with wage legislations. To pay according to the content
land difficulty of the jobs and in tune with the effort and merit of the employees. To facilitate pay
role administration of budgeting and wage and salary control. To Simply collective bargaining
procedure and negotiations. To promote organization feasibility.
Over all salary range for all the jobs in an organization is arranged. Each job grade will
be assigned salary range. These individual salary ranges will be filled into an overall range
Overall salary grades of the organization may be adjusted on the data information collected about
the salary levels of similar organizations. Individual salary may also be adjusted based on the
performance of the individual employees.

NEED FOR THE STUDY

Many organizations today, in order to competent enough to meet the challenges need to
continuously changes to develop wage and salary administration.
Thus Companys are supposed to adopt well built wage and salary administration.
Need for the study is that the performance of wage and salary administration is to be
studied in order to make changes if any, in order to retain the employees and also to
attract.
The new employees to meet the challenges of the organization.
The study also aims at evaluating the practical wage and salary administration under
taken by the organization in their work environment to improve their working skills.

OBJECTIVES OF THE STUDY

The present study has been conducted with the following objectives:
To study the fluctuations in wage and salary policies of FACOR management and
employee satisfaction.
To compare the wage and salary administration practices between workers and officials
of M/s FACOR.
To know the strategies adopted in the wage and salary administration practices of
FACOR during the challenging situation faced by it and to come out if such situations.
To know the level satisfaction of the employees regarding the wage & salary
administration in Facor.

SCOPE OF THE STUDY

The Scope of the study covers with extent of help to check all the activities of salary
administration against the company polices.
An attempt was made to know the pleasure of employees regarding their wages and
salary administration.
Hence this study specially is focused on wages and salary administration which is a key
factor for employee job satisfaction.
The Organization under study namely, FACOR Alloys Corporation Limited,
ShreeramNagar (Garividi) is one of the major concern in India for a generating and distributing
HC Ferro manganese, silicon manganese, HC Ferro chrome, Ferro silicon magnesium, MC Ferro
magnesium, LC Ferro chrome to the industries and domestic purpose in south India.

METHODOLOGY
In study the primary data collected by means of personal interview with the help of
questionnaire.

PRIMARY DATA:
The information consists of data gathered from the differnt source. Primary data is
the refresh data. This has been collected from various sources. The sources adopted to get data is
questionnaire and through observation.
Questionnaire is designed in such way that every employee can understand. It
consists of 16 questions which are sample and close and open end question.

SAMPLING:
In order to get data a sample size of 100 is taken and employee selected on
random base.

SECONDARY DATA:
The data is collected from published reports, unpublished reports, annual reports,
unpublished manuals and materials etc.

THE SOURCES ARE:

Interview with assistant personal manager.
Collecting necessary information by conducting survey through questionnaire.
Annual reports of FACOR
Bulletins
Files ( DA files, Bonus files )

LIMITATIONS OF THE STUDY

The study made by me in FACOR ALLOYS Limited was confined to determine wage and
salary method and practices being followed:
The lack of availability of information.
The collected one does not give the complete information.
As time period is 2 months, it is very difficult to get a clear picture.
The sample size taken for the research is small due to constraints of time.
Some of the employees had not co-operated in filling of questionnaire.

INDUSTRY PROFILE
FERRO ALLOY INDUSTRY REQUIRES LEVEL PLAYING FIELD IN
THE LIBERALISED ECONOMY:
The Indian Ferro Alloy Industry is not as old as the Steel Industry. From a humble
start in the fifties the capacity has grown enormously with enough potential to increase exports in
future. However, the high power tariff in India is the stumbling block. Though the industry
started getting power from National Power Corporation at NTPC tariff, it is still higher than the
power tariff available in countries like Norway, China, and Russia, Kazakhstan etc., which are a
major producers and exporters of Ferro alloy too.
What is more, the import duty on Ferro alloy has also been reduced drastically to 25
per cent in the post liberalized era. Further, steel exporters are eligible to import their raw
material including Ferro Alloys free of duty against advance license. With plenty of raw
materials like ores and reluctant available in the country, what the industry needs is a level
playing field by power being made available at international comparable tariff. The Indian Ferro
Alloy Industry is more than four decades old, as produces Bulk and Noble Ferro Alloys.
Through this Industry is not as old as the steel industry, its capacity has increased
substantially from a humble start in the fifties, meeting the requirement of the steel industry in
the country. The growth of the steel industry has not picked up as expected, whereas the growth
of the Ferro Alloy Industry has stepped up, much more than the expected level. With the result,
the capacity available in the country is much more in the Ferro Alloy Industry.
It is a lot of potential to increase its exports in the near future. India has been bestowed
with adequate resources of all basic raw materials required for the production of Manganese,
Silicon and Chrome Alloys. Most of the Ferro Alloy Units have come up in the six States Andhra

10

Pradesh, Madhya Pradesh, Maharashtra, Orissa and West Bengal, mainly due to availability
and /or proximity of the raw materials. Ferro Alloys is a power intensive industry.
The total connected load of the industry has grown almost 8 to 9 times from 130 MVA in
the mid sixties to over 1000 MVA as on date. With the result, the installed capacity of the
industry is 1.5 million tones of Bulk and Noble Ferro Alloys. Capacity of Manganese Alloys is
around 700,000 tones. Ferro Silicon 175.000 tones and Ferro Molybdenum, Ferro Vanadium,
Ferro Tungsten, Silicon Magnesium, Ferro Titanium, Ferro Phosphorous, etc., around 20,000
tones.
PRODUCTION OF FERRO ALLOYS:
Production of Different Ferro Alloys for last five tears is given below:
Table 1 statement showing production of Ferro Alloys during 2006-07 to 2010-11 as
available with the association. (Quantity in Tones)
Production

2007-08

2008-09

2009-10

2010-11

828

Lock out

18

25

400

Lock out

Manganese
HC
Ferro 52350

13769

28478

23730

Lock out

Chrome
Ferro Silicon 0

Lock out

Magnesium
MC
Ferro 3

10

13

Lock out

Chrome
LC
Ferro 0

20

216

Lock out

HC

2006-07

Ferro 60

Manganese
Silicon

26

Chrome

The capacity increase of the Ferro industry in general, followed the course to meet the
planned target of steel industry in the country, and also to remain potential exporters of Ferro
Alloys in the international market to earn substantial foreign exchange for the country. However,
11

the performance of the industry started deteriorating from the mid-sixties, due to various reasons,
the foremost being, steep increase in the power tariff, fuel, oil, raw materials and transport
charges.
Exports started sliding from 1978 onwards. The eighties witnessed the maximum
erosion in the export performance of the Ferro Alloy Industry. However, after initiation of the
liberalization programmed, there has been a spurt in the export of Bulk Ferro Alloys. Like all
other Sectors, exports from this sector have also increased.

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ORGANIZATION PROFILE
FERRO ALLOYS CORPORATION LIMITED
Name

FACOR Alloys Corporation Limited

Incorporation

1955

Commencement of Business

1958

Registered

Shreeram Bhavan, Tumsar.

Authorized Capital

2000 Lakhs

Paid up Capital

3000 Lakhs

Factory

FACOR Alloys Limited, Garividi

Chairman

Umashankar Agrawal

Director

R.K.Saraf

Joint Managing Director

Yogesh Saraf

Vice Chairman & Managing

Asim Saraf
Executive Director

Anurag Saraf

Director (Technical)

C.N.Harman
13

Bankers

Bank of India
Central Bank of India
State Bank of India
Syndicate Bank
State Bank of Bikaner & Jaipur.

FACOR has created a respectable place for a remote place called Garividi in the
industrial scenario after establishing its first Ferro Alloys plant in 1956. The FACOR township is
named after late Bahadurseth Shreeramji, the father of the founder of this great organization late
Sri. Durgaprasadji Sharaf (father of the present Chairman Sri.Umashankar Agarwal and V.C &
MD.Sri.R.K.Sharaf) as SHREERAMNAGAR.
FACOR was established as a public limited company by the families of SHARAFS and
MORS in the History of Ferro Alloys, this has become the first of its kind and a major producer
of Ferro Manganese in the country. FACOR is not only a leader in the field of Ferro Alloys, but
also produces special steels of high standard. Its diversified activities extended beyond mining
and production of Ferro Alloys, to making the special steel and embrace the production and
manufacture of synthetic yarn and maize products. Low Ferro Chrome was imported to India
until 1966 to meet the demand of steel industry. Then, FACOR has step up a Ferro Chrome plant
with two furnaces having capacity of about 12000mt low/high Carbon Ferro Chrome to
substituted the imports of Ferro Chrome and meet the domestic demand along with Ferro
Manganese Production and saved lot of valuable foreign occupies the first position as producer
and exporter of Ferro Alloys, in the country. It is a pride for the organization for such credentials.

14

CREDENTIALS OF FACOR:
It is the countrys first Ferro Alloys Plant.
It is the first plan to innovate and introduce Chromium Alloys and also the only single unit to
meet countrys requirements.
It is the first unit to produce Magnesium Ferro Silicon.
It is the first to take up the erection and commissioning of the wholly indigenous furnace without
any foreign component or consultancy.
The first in the countrys to export Ferro Manganese
It is the first among the various Ferro Alloys, producing unit to take up the manufacture of low
Carbon Ferro Alloys.
It is the first firm to produce a total of one million tones of Ferro Alloys by the end of
1981. FACOR develops Ferro Alloys as per customer specifications besides making sizeable
exports. FACOR was awarded certificate for export recognition by the Engineering Export
Promotion council, Western Region, and Bombay in Recognition of the outstanding performance
in the export of Ferro Manganese, Ferro Chrome, during the 1981-82.
FAVORABLE CAUSES OF LOCATION OF FACOR:
FACOR (FACOR Alloys Limited) at ShreeramNagar (Garividi) is situated at 85 Km north
of Visakhapatnam port. The main factors motivated to establish a factory in Shreeramnagar are

Availability of labor at cheap rates

Availability of continues water supply

Availability of power station near by

Availability of low grade Manganese or near by

Cheap availability of the communication and transport facilities.

Availability of labor at cheap rates is one of the important and it is true in the case of

FACOR. Regarding supply of water there is a big Banta situated very nearer to with the plant. It
is big tank of 200 ft. depth and four five acres of plinth area.
This unit was established along the Madras-Howrah Railway Track which generally
contribute to easy transportation and FACOR is located the side roadway linking Srikakulam-

15

Visakhapatnam. Hence it offered good communication and infrastructural facilities. It is nearer to

Visakhapatnam Port to export its products.
The Government of Andhra Pradesh supplies electricity at lower rate. The near by villages
are the main sources of raw materials like sand, manganese or is available at nearest villages
Garividi, Koduru, Garbham, Duvvada and Sadanandapuram.
TECHNICAL COLLABORATION:
The Ferro Manganese plant located at Shreeramnagar works division contains three
furnaces of each 7.5 KVA capacity to produce all varieties of Ferro Alloys, to meet the demand
of countrys steel makers. The technical assistance was provided to establish these Furnaces by
M/s Elkin A/s Oslo, Norway.
The technical process is very advanced and innovative that visitors from Finland,
Norway, South Africa, Germany, Austria etc., visited the plant and learnt about the process. The
Ferro Chrome Division has also obtained the technical assistance in constructing two furnaces
from M/s Elkin, Oslo, Norway and M/s Electro Invest A/S Stockholm Sweden, subsidiary of M/s
Asia, Sweden. Technical knowhow for production of low carbon Ferro Chrome was also taken
from M/s Electro Invest, A/S Swede, for an initial period of about five years. FACOR crossed
another mile stone in Ferro Alloys, production by establishing a sub merged are smelting furnace
with 16 MVA capacities which is commissioned in 1981. Thus FACOR has its credit of six
furnaces in operation at Shreeramnagar, producing various Ferro Alloys of Manganese,
Chromium and Silicon for Steel manufacture.
As a part of FACORS vertical integration it has set up a steel plant at Nagpur in 1978,
producing special steels like Carbon Steels low alloy steel for the free going industry and various
stainless steels of all grades under quality control standards to meet the demand of the country.
Thus FACOR is called as a Steel Maker. In 1979, FACOR established its own Research and
Development wing the remarkable technology to produce charge chrome, the wonder alloy for
stainless steel manufactures, desired by steel makers all over the world.
Thus a charge chrome plant was set up at D.P.Nagar in Orissa in 1983. Using
sophisticated Japanese furnace and indigenous technology. FACOR accomplished the task of
16

converting low grade chrome ores and rejects into a quality charge chrome which are obtained
from which Bowla, Kathapal and Osthapal mines the beneficiation of which is done at DES
Bowla plant meant for beneficiation. The FACOR again stands first in India in the quality
production of charge chrome and whose total production is exported.
IMPORTANCE OF FERRO ALLOYS:
The Industrial development of any country depends upon the strengths of the basic
industries like Iron and Steel, Cement, Power Generation, Electric and Electronic etc., steel is the
life blood of any industry and also prime requirement for human development. Thus the Ferro
Alloys are the basic raw materials for steel manufacture with various properties for different
application. FACOR Shreeramnagar, works division is fulfilling this demand for steel industry in
the country, thus has unmatched reputation of this-quality production not only in the domestic
market but also in the international market.
DIFFERENT FACILITIES AT SHREERAMNAGAR WORKS:

1. FERRO MANGANESE PLANT:

Two 7500 KVA covered rotating submerged are smelting furnace.

One 7500 KVA open top rotating submerged electric smelting furnace.

2. FERRO CHROME PLANT:

One 12000 KVA open top rotating submerged smelting furnace.

One 8000 KVA open electric are smelting furnace

One 16000 KVA stationary submerged electric smelting furnace.

3. OTHER AUXILIARY UNITS:

Production of electrode Carbon paste

Beneficiation and agglomeration of chrome ores

Chrome ore Briquetting (Mechanized plant stated in 1990).

Metal recovery plant.

RAW MATERIALS:
17

The basic raw materials required for production of Ferro Alloys are given below:
Ferro Chrome (high carbon)

: Manganese Ore, chrome ore, quartz, Lime stone, Coke and

Electric Power.

The raw materials are obtained from Orissa, Maharashtra, Bihar and West Bengal,
Sometimes coke and chrome ore are also imported from Japan, China, Turkey, U.A.E. etc.
Annual consumption of the raw materials for full production is around 3 lakh tones.
The raw materials are sized and blended in ore preparation plant before using in the
furnaces. Blended materials are stocked in the yard sheds near the furnaces.
STORAGE AND FEEDING TO FURNACES:
The raw materials are initially fed to respective Ground Hopers, Skips Hoist, Bucket
Elevators, Telpher Cars etc., in sequence in order to have intermediate storage at individual
furnaces.
FINISHED GOODS, HANDLING, SIZING AND TRANSPORTATION:
Finished goods are handled manually or mechanically according to specifications of
the orders and transported by means of road or rail within the country. Some quantities are also
exported to Japan, Germany, Korea and USA etc., by ship through Visakhapatnam Port.
SALES AND DISPATCHES:
Chennai and Kolkata. FACOR is using installed capacity fully depending on the
market conditions. FACOR makes direct sales in domestic market through its marketing
department located at Head Office, Tumsar and through is regional Office at Mumbai; Delhi.
FACOR has built up a good track record and developed into Indias largest manufacturer and
exporter of Ferro Alloys, and maintained this position over the time. The personnel department
plays a vital role in the organizational climate of any organization. The personnel department of
FACOR has also drawn clear guidelines for personnel policies and procedures, their by setting up
an atmosphere of mutual confidence and respect. Thus it helps to develop harmonious relations
between management and the work force.
RECRUITMENT:

18

A thorough job analysis is under taken and then existing employee pool is referred
and matches to the required employee qualities with job specification, if it matches the employee
is assigned the job, if not a new candidate will be introduced into the organization.

CAPTIVE POWER PLANT:

One of the basic raw materials for FACOR is power, which constitutes shortage,
and heavy and continuous power cuts and low voltages, production hampered and there were
heavy losses due to non availability of finished goods at required time. So FACOR planned to
establish its own power generate plant during 1990-91 and the cost of generation is almost 50%
of cost of power supplied by APSEB power generated in the plant is meeting also 50% of the
FACOR requirement.
The basic raw material for power plant lubricants is produced from HPCL Vizag.
The FACOR provides employment nearly for 10000 employees and has been instrumental in
building industrial township of Shreeramnagar (A.P) Durgaprasad and Sri Durgapur (Orissa).
MANUFACTURING PROCESS:
The raw materials are smelted/heated to 1500 to 2000c and then alloys are trapped
from electric arc furnaces in molten states, at prescribed intervals, along with the bye-products
which are called slag. The melt is separated into metal and slag and collected in receptacles.
After cooling the metal and slag are handled separately.
FINISHED PRODUCTS:
The various types of Ferro Alloys products are as follows:
a) High carbon Ferro Chrome.
Among the products, the High Carbon Ferro Chrome is only producing by FACOR at present
.

19

WORKMEN/EMPLOYEE EMPLOYED:
The existing manpower at Shreeramnagar works in about 1000, out of which:

2010 (June) (as on 1.7.2010 a.w.h)

Managerial

Supervisory (Tech)

68

Supervisory (Non-Tech)

35

Work men Skilled

219

Work men Administration

89

Work men Permanent

213

Mining employees

TOTAL

636

PERSONNEL MANAGEMENT:
The Management has committed for the professional management in the process
of which the employees are considered very important and prime resources for the development
of the organization. Thus, management envisaged Employees excellence Scheme (EERS).
QUALITY ASSURANCE SYSTEM:
A stringent quality control for both raw materials and products is being maintained as
per the standards and being supported by full-fledged Inspection and Quality Control
Department.
FACOR has accredited by Dutch-council for certification and achieved ISO-9002
Certificate recently issued by IRQS a department of Indian Register for shipping, Mumbai.
ISO:
1994 Efforts have been paid to accredit with ISO-9002 implementation.
20

1995 The certificate was issued at ISO-9002, 1987 version.

Subsequently the certificate is upgraded with respect to ISO-9002, 1994 version. Indian Register
of quality systems, Mumbai.
The certificate has been renewal in December, 2000 it is valid up to December 2003.
QUALITY MANAGENT SYSTEM GUIDELINES FOR PERFORMANCE FOR
IMPROVEMENTS ISO 2004
INTRODUCTION:
The adoption of quality management system should be a strategic decision by the top
management of an organization. The design and implementation of an organizations quality
management system is influenced by varying needs, particular objectives, the products provided,
the processes employed and the size and structure of the organization. This international standard
is based on eight quality international standard to imply uniformity in the structure of quality
management systems of uniformity of documentation.
THE PURPOSE OF AN ORGANIZATION IS:
To identify and meet the needs and expectation of its customers and the interested
parties (people in the organization suppliers, owners, society) to achieve competitive advantage ,
and to do this effective and efficient manner and to achieve, maintain, and improve overall
organizational performance and capabilities.
The application of quality management principles not only provades direct benefits
but also makes an important contribution to managing costs and risks. Benefit, cost and risk
management considerations are important for the organization, its customers and other interest
parties.
.
DIVERSIFICATION:
FACOR has performed well during last four decades and its turnover is about Rs.3, 000/million and is further seeking to diversify into other fields namely metallurgical, petro chemicals,
chemical food based products etc. FACOR is well known nationally and internationally for 620
million Rupees.
As a pioneer, the company has always been eager to utilize the opportunities for growth
and diversification in the related areas and for that reason FACOR has acquired/set up
21

A mini-steel plant at Nagpur (Maharashtra) to produce quality steel.

A charge chrome plant located at D.P. Nagpur, randia, dist. Balasore, costing around 45 crores.
This is a 100% Export Oriented unit with a production capacity of 50,000 tons per annum.
AMANITIES FOR EMPLOYEES:
The company with its progressive ideas has very much alive to its special obligations
to the community and its employees as well, such as:
a) WELFARE
b) HEALTH & FAMILY PLANNING
c) CANTEEN
d) RECREATIONAL ACTIVITIES
e) EDUCATIONAL FACILITIES
f) CULTURAL & SPORTS
g) PLACES OF WORKSHIP
h) TV & VCR FACILITIES
i) KALYANA MANDAPAM
j) SOCIAL ACTIVITIES
k) OEU LIONS EYE HOSPITAL
l) BALVIHAR FOR ORPHANS
m) WOMEN WELFARE CENTRE
n) NARINIKETAN.
School for Deaf & Dumb & Mentally retarded, a school for Blind and
Handicapped children.
For well being & improving the socio economic conditioned in the area also.
ANALYSIS OF WAGE AND SALARY ADMINSTRATION:
The following are the allowances which are given to employees and to the
workers in FACOR
ACTING ALLOWANCE:
1) FOR REGULAR WORKMEN:

22

A: Acting allowance will be paid to the workmen in the grade of 01,02 and 03
Grades in case they work on any day in a vacancy in a permanent sanctioned post of 1,2,3 and 4
grade respectively, at the rate of Rs.30/- per day provided and said vacancy is due to the absence
of the workmen on the higher grade but not of workmen who has been awarded the said higher
grade by virtue of length of services without getting the designation in the higher grade.
B: Any workmen who have been awarded the next higher grade due to length of
the services only will be eligible for acting allowances when on any day he works in the vacancy
of the higher unit he is promoted to the higher cadre by change of designations and when
permanent vacancy arises in the higher cadre.

2) FOR CASUAL WORKMEN:

Acting allowance shall also be paid to the casual operation when they are engaged
in place of permanent workmen in the higher category of 03 & 04 grade at the rate of Rs.30/- per
day. No acting allowance will they are engaged in the place of 2 grade personnel.
GENERAL:
1) Acting allowance shall not be paid.
a) Unless there is a temporary vacancy of permanent sanctioned higher category.
b) If there is a permanent vacancy filled in the same category or the same grade.
2) Claims for the acting allowance from all departments must be routed through Personnel
department only.
3) Regarding making of the details and the workmen engaged in acting places. DFR (daily
foreman report) should be confirmed so that time office can follow acting allowance formula
accurately.
4) If any workmen to refuse to act in higher grade against the instructions of his supervisors with
a workmen will disqualify himself for the further promotions of higher cadre and the concerned
head and the departments are suggested to make a note of such refusal and intimate the personnel
department for nothing the personnel file of concerned employee.
REVISION OF ACTING ALLOWANCE:
23

In accordance with the clause 10 of the settlement dated 11-03-1974 the workmen
will be paid acting allowance equivalent to the differences at the minimum of two pay scale
concerned. If he carries out duties of higher category.
Subsequently, management has enhanced acting allowance wide notice SMPA/FPL,
dated 27-03-1987 to @ 30/- day in order to further motivate the workmen to act in higher
position is and when temporary vacancy arises in order to given unity to workmen to make
themselves complement for the job in higher position and be considered for higher position when
a vacancy in a higher cadre arises IT is also mentioned in the said notice that if any workmen
refuses to act a higher cadre against the instructions of superiors the said workmen will
disqualify himself for the future promotion of higher cadre. In the foreign contest we once again
enhance allowance form Rs.22/- to Rs.30/- per day with the same objective as mentioned under
working in higher position and once he is promoted he would be in a position to carry out the job
easily. Therefore, whenever the workmen are asked to act higher position they are advised to
obey and act in higher position to avoid being disqualified from promotion.
WORKMEN PAY SCALES FROM 01.07.2011:
A) 02 Rs. 3150-50-3450-53-3768-56-4104-59-4458-62-4830-65-5220-68-5628-71-6054/B) 2A Rs. 3300-53-3618-56-3954-59-4308-62-4680-65-5070-68-5478-71-5904-74-6348/C) 03 Rs. 3450-56-3786-60-4146-64-4530-68-4938-72-5370-76-5826-80-6306-84-6810/D) 3A Rs. 3600-60-3960-65-4350-70-4770-75-5220-80-5700-85-6210-90-6750-95-7320/E) 04 Rs. 3750-65-4140-70-4560-75-5010-80-5490-85-6000-90-6540-95-71110-100-7710/F) 4A Rs. 3900-85-4410-95-4980-105-5610-115-6300-125-7050-135-7860-145-8730-1559660/G) 14.

4050-95-4620-107-5262-119-5976-131-6762-143-7620-155-8550-167-9552-179-

10626/H) 15. 4200-130-4980-145-5850-160-6810-175-7860-190-9000-205-10230-220-11550-23512960/-.

SUPERVISORY PAY SCALES: W.E.F.01.06.2009 (NEW SCALES) GRADE:
JM
24

60: Rs.4500-175-5200-195-5980-215-6840-235-7780-255-8800/AM
61: Rs.5000-215-5860-240-6820-265-7880-290-9040-315-10300/SAM
62: Rs.5500-255-6520-285-7660-315-8920-345-10300-375-11800/DM
63: Rs.6000-295-7180-330-8500-365-9960-400-11560-435-13300/SDM
64: Rs.6500-335-7840-375-9340-415-11000-455-12820-495-14800/M
65: Rs.7000-375-8500-420-10180-465-12040-510-14080-555-16300/SM
66: Rs.7500-415-9160-465-11020-515-13080-565-15340-615-17800/AGM
67: Rs.8000-455-9820-510-11860-565-14120-620-16600-675-19300/DGM
68: Rs.8500-500-10500-560-12740-620-15220-680-17940-740-20900/GM:
69: Rs.10000-1000-14000-1150-18600-1300-23800-1450-29600-1600-36000/-.
CONVEYANCE ALLOWANCE (VEHICLE ALLOWANCE):
Employees are eligible for vehicle allowance provided they maintain Scooter/motor
cycle or cars to attend factory at the rate mentioned below:
The vehicle shall stand registered in the employee name in the case of cycle evidence of
purchase in the employee name shall be produced.
CAR ALLOWANCE:
GRADE

ALLOWANCE P.M

63 & above

Rs.2500/-

25

SCOOTER ALLOWANCE:
For all workmen Rs.530/- & supervisors Rs.560/-.

MOPED ALLOWANCE:
For all workmen Rs.320/- & supervisors Rs.350/-.
RULES FOR PAYMENT OF VEHICLE ALLOWANCE:
1. An eligible employee while submitting application for claiming vehicle allowance is required
to

produce C-book of his vehicle to the personnel department to verify the ownership.

2. Personnel departments will in turn on being satisfied with the ownership intimate the eligible
of vehicle allowance in this monthly salary as per their eligibility.
3. All the employees are eligible for vehicle allowance provided they produce their C-books of
their vehicle to the personnel department once in a quarter for getting allowance subsequent
quarter.
CYCLE ALLOWANCE:
All permanent workmen and supervisory personnel are eligible for cycle allowance of
Rs.65/- pm unskilled workmen Rs.30/- pm.
SPECIAL VEHICLE ALLOWANCE:
Some employees whose duties also involve duties outside the plant premises are given
special vehicle allowance of Rs.100/- pm in the addition to the vehicle allowance if they use their
scooter motor cycle for such duties, the department head concerned should maintain a long book
in such cases.
HOUSE RENT ALLOWANCE:
All workmen who are not allotted quarters or choose to say in private houses are eligible
for house rent allowance at the rate of Rs.12.5% of their basic salary subject to a minimum of
Rs.400/- pm whichever is higher.

26

NIGHT SHIFT ALLOWANCE:

Night shift allowance will be paid at the rate of Rs.12/- per their shift attend fully by a
workmen.
The eligible workmen are:
1.

Regular workmen.

In case of workmen works partially in third shift, he shall not be eligible for any night shift
allowance for that night.
UNIFORM ALLOWANCE:
Uniform allowance of Rs.450/- per annum is paid annually to certain categories of
employees and above.
PETROL BUNK DUTY ALLOWANCE:
Petrol bunk duty allowance of Rs.530/- is paid to the clerk of stores and paid to clerk pf
stores and purchases section of materials department who attends to the issue of petrol or diesel
to companys vehicle and employees vehicles.
TRAVELLING ALLOWANCE:
An employee is eligible for traveling allowance if journey is undertaken for following
purpose.
Tour (official)
For medical examination or treatment of an employee any member of his family of
Approved by company medical officer
To participate in sports, games and cultural programmers this authorized sponsor by the
company.
To receive national awards.
To attend training programmers, seminars, conferences.
To appear in courts as witness or assessor.
For any other journey undertaken as per the instructions of the management.

27

ENTITLEMENT AND MODE OF TRAVEL:

Entitlement and mode of travel in different pay ranges as mentioned below
SETTING ALLOWANCES:
A person on joining is entitled from reimbursement of railway fare from itself, wife,
dependent and children for travel from its place to shreeramnagar by the shortest route detailed
below.
CATEGORY OF EMPLOYEES DRAWING:
Basic salary per month

Eligibility
Actual, air, train, taxi
1st Class, 2nd Class AC

AC

By Train
2nd class by train.
EXTRA WAGES:
These are granted on the basing on the recommendation of the departmental heads in case
of employee works on one day off.
In case of employee works on extra hours beyond their duty.
In case of employees asked to work on paid holidays or optional holidays, one extra wage
is given in the paid holiday.
In case of employee calming extra wage of the extra work after the normal working
hours. Extra work of minimum three hours and above will be considered.
This system is for 5 grades. In case of assistant managers i.e., from grade 6 the extra
hours is for 8 hours continuously after normal working hours, the employees from grade
7 are eligible for extra wages.
28

 In case of deputy managers and Sr. Deputy Managers works on Sunday as paid Holiday
they are given compulsory d-off for that days.
Managers and above are not given extra recommendations for working d-off paid day.

CLASSIFICATION OF OVERTIME:
The over time is classified as details below:
1) For emergency breakdown due to which production activity etc., get hampered.
2) To fill up sanctioned complement due to leave vacancy absence where usual workman
could not be arranged.
3) For completion of normal work which could not be in regular time.
For completion of annual of such works which are not being regular in nature but have asked
to carry in regular time.
COMPENSATORY D-OFF:
SITUATION (1):

If a workman works on day off paid/optional holiday workman will be granted in CD in

he had worked for the while day on his day-off/paid-optional holidays.

Half CDO if he had worked only for half day off paid holidays.

Will be granted one CDO if he had worked for whole day on his day off/paid optional
holiday.

FOR WORKERS:
Section in charge will grant the CDO. If he had worked for whole day off/paid holiday or
optional holiday.
FOR SUPERVISORS:

Department Head will grant the CDO.

He will be granted one CDO if he had worked for whole day off/paid holiday or optional
holiday.

29

SECTION (4):
Sanction of CDOs at stretch.

SECTION (5):
Time limit with in3 months, CDOs must be availed.

HUMAN RESOURCE MANAGEMENT DEFINITION:

According to Flippo, human resource management is the planning, Organizing, directing
and controlling of the procurement, development, compensation, integration Maintenance and
reproduction of human resources to the individual, organizational and societal objectives are
accomplished.
To help the organization to attain its goals by providing well-trained and well-motivated
employees.
To utilize the human resources effectively in the achievement of organizational Goals.
To enhance the job satisfaction and self actualization of employees by Encouraging and
assisting every employee to realize his or her full potential.
To establish and maintain productive, self respecting and internally satisfying working
relationships among all the members of the organization.
To bring about maximum individual development of members of the organization by
providing opportunities for training and advancement.
To develop and maintain a quality of work life which make employment, in the
organization a desirable personal and social situation.
To maintain high employee morale and sound human relations by sustaining and
improving various conditions and facilities.
To manage change to the mutual advantage of individuals, groups, the organization and
the society.

PRINCIPLES OF HUMAN RESOURCE MANAGEMENT

1) PRINICIPLE OF MAXIMUM INDIVIDUAL DEVELOPMENT:

30

This principle stresses on the development of every person working in an

organization. By this employees will be able to develop themselves to the maximum extent of
their capabilities. Their abilities, productivity and efficiency can be used for achieving the
objectives of the organization.

2) PRINCIPLE OF SCIENTIFIC SELECTION:

For the proper coordination between work and workers it is necessary to select the
right person for the right job. Workers should be selected after a careful weighing of the
requirements of the jobs.
3) PRINCIPLE OF HIGH MORALE:
It is necessary to have a high morale among workers in an organization.
4) PRINCIPLE OF DIGNITY OF LABOR:
Work is worship workers should feel proud feel of their work or labor.
5) PRINCIPLE OF TEAM SPIRIT:
Team spirit must be developed in the workers. They should work collectively and
they should feel collective responsibility for the attainment of the objectives of the organization.
6) PRINCIPLE OF EFFECTIVE COMMUNICATION:
There must be effective channel of communication between the management and the
workers. The orders of higher authorities should reach the workers, while workers requests and
grievances should reach the higher authorities in a proper way.
7) PRINCIPLE OF FAIR REMUNERATION:
Labor should be given fair and proper compensation for the work they rendered.
They should also give fair incentives to recognize good performance.
8) PRINCIPLE OF EFFECTIVE UTILISATION OF HUMAN RESOURCES:
The skill and abilities of human resources should effectively utilize. Proper training
facilities should provide to workers.
9) PRINCIPLE OF PARTICIPATION:

31

This principle emphasis the idea of labor participation in the management of the
enterprise.

10) PRINCIPLE OF CONTRIBUTION TO NATIONAL PROSPERITY:

This principle stresses to provide a higher purpose of work to all the employees and
to contribute to national prosperity.

IMPORTANCE OF HUMAN RESOURCE MANAGEMENT:

a) ORGANIZATIONAL SIGNIFICANCE :
Attracting and retaining the required talent through effective human resource planning,
recruitment, selection, placement, orientation, compensation and promotion policies.

Developing the necessary skills and right attitudes among the employees and
performance appraisal etc.

Securing willing cooperation of employees through motivation, participation grievance

handing.

Utilizing effectively the available human resources.

b) PROFESSIONAL SIGNIFICANCE:
Developing people on continuous basis to meet the challenges of their jobs.
Maintaining the dignity of personnel at work place.
Providing proper physical and social environment at the work place to utilize the
capabilities of the people effectively.
Providing environment and incentives for developing and utilizing creativity.
c) SOCIAL SIGNIFICANCE:
Maintaining balance between jobs and job sealers in terms of job.
Requirements and job seekers abilities and attitudes.
32

 Providing most productive employment from socio psychological satisfaction can be

derived.
Utilizing human capabilities effectively and matching rewards for the contribution made
by people.

d) NATIONAL SIGNIFICANCE:
Increase in the size and complexity of organizations.
Rapid technological developments like automation and computerization.
Rise of professional and knowledgeable workers.
Increasing workmen in the work force.
Growth of powerful nationwide trade unions.
Revolution of technology that might affect the work force.

Wage and Salary Administration

Wage and salary Administration is essential application of a systematic approach to the
problem of ensuring that employees are paid in a logical, fair

and

equitable manner. The

payment of wages and salary is an inbuilt system with human force for their

activity performed.

To what extent the payment of wages & salary is reasonable and adequate in consonance to the
nature of the work performed.
The payment of wages and salary is an inbuilt system with human force for their activity
performed. The supply of labor is more than the demand and with the result there is exploitation
of cheap labor policy. Later the advent of trade unionism helped to improve the working
conditions of labor. Until Second World War, event the government adopted a
FAIRE

LAISSEZ-

policy in this regard. It was as late as in 1947, which the industrial unrest becomes

so uncontrollable that a tripartite conference was convened of

(1) Central and state govt.
(2) Employers
(3) Employees which resulted in Industrial trade resolution.

33

The basic purpose of wage &salary administration is to establish and maintain an

equitable Wage & salary structure.
The secondary objective is to establish and maintenance of equitable labour cost i.e. an
optimal balancing of conflicting personnel interests so that satisfaction of employer and
employee is maximized.
It is concerned with the financial aspects of needs, motivation and rewards. Managers,
therefore, analyze and interpret the needs of their employees so that rewards can be individually
designed to satisfy these needs.
The first and the most important problem in wage and salary administration is the
establishment of base compensation for the job. This problem is enormously complicated by
such factors as Supply and Demand, Labor organization, the firms ability to pay, Variations in
productivity and Cost of living, Government legislation, Including CIVICS RIGHTS ACT.
In order to attract and retain needed personnel for the organization, employees must
perceive that compensation offered is equitable in relation to their inputs and relative
contributions. The most likely to be used method to solve this problem at present would be job
evaluation, a systematic and orderly process for establishing the worth of job.
The importance of a pay system to an event of major importance to employees and its
effects upon them cannot be ignored. It is a valid system if it results in a structure acceptable to
both employee and employer. In general, structures that are internally and externally consistent
have the greatest chances of affecting overall satisfaction. Under reward, Over-reward and
inconsistency of reward not only tend to lead to lower satisfaction but encourage behavior that
often proves dysfunctional to organizational objectives. A sound, systematic, consistent system
of compensation determination will do much to promote equity and satisfaction, provided that
such a system is understood and accepted by most employees.
NEED FOR THE WAGE AND SALARY ADMINISTRATION:
Wage and salary administration is very much needed in an organization.

Reward employees according to efficiency and merit.

Attract and retain the services of desirable employees.

Get improved employee morale and productivity.

34

Keep labor cost within reasonable limits so as to safe guard the interests of shareholders,
competitive worth of the organization and its product and profitability.

Helps the employees to compare the pay of

different employees with their skill,

knowledge, performance etc.

SALARY
Fixed periodical payment to a person doing other than manual or mechanical work. It
refers to monthly rate of May, irrespective of the number of hours put by an employee.
WAGES:
Payment paid for manual and mechanical work is wages. Represents hourly rates of pay.
wages means all remuneration, capable of being expressed in terms of money which would if
the terms of the contract employment express or implied ,were fulfilled ,be payable to a person
employed in respect of his employment or of work done in such employment.
OBJECTIVES OF WAGE AND SALARY ADMINISTRATION:
The objective of wage and salary administration is numerous and sometimes conflict with
each other.
1) TO ACQUIRE QUALIFIED COMPETANT PERSONNEL :
Candidates decide upon their career in a particular organization mostly on the
basis of the amount of remuneration the organization mostly on the basis of the amount of
remuneration the organization offers qualified and competent people join the best paid
organization. As such the organization should aim at payment of salaries at that level where
they can attract competent and qualified people.
2) TO RETAIN THE PRESENT EMPLOYEES :
If the salary does not present compare favorably with that of other similar
organization. Employees quit the present one and join the other organization. The
organization must keep the wage levels at the competent level, in order to prevent quite.
35

3) TO SECURE INTERNAL AND EXTERNAL EQUITY :

Internal equity does mean payment of similar wages for similar jobs within
the organization. External equity implies payment of similar wages to similar jobs in comparable
organization.
4) TO ENSURE THE DESIRED BEHAVIOUR :
Good rewards reinforce desired behavior like performance loyalty accepting
new responsibilities and changes etc. to keep labor and administration costs in line of the
organization to pay. To protect in public as progressive employers and to comply with the
wage legislations. To pay according to comply with wage legislations. To pay according to
the content land difficulty of the jobs and in tune with the effort and merit of the employees.
To facilitate pay role administration of budgeting and wage and salary control. To simply
collective bargaining procedure and negotiations. To promote organization feasibility.
SYSTEMS TO ACHIEVE THE OBJECTIVES:
The objective is achieved by the use of the following systems:
JOB EVALUATION:
All the jobs will be analyzed and graded to establish the pattern of internal
relationships. It is the process of the determining relative worth of jobs. It includes suitable
job evaluation techniques classifying jobs into various categories and determining relative
value of jobs into various categories.
WAGE AND SALARY RANGES:
Over all salary range for all the jobs in an organization is arranged. Each job
grade will be assigned salary range. These individual salary ranges will be filled into an overall
range.

36

WAGE AND SALARY ADJUSTMENTS:

Overall salary grades of the organization may be adjusted on the data information
collected about the salary levels of similar organizations. Individual salary may also be adjusted
based on the performance of the individual employees.
PRINCIPLES OF WAGE AND SALARY ADMINISTRATION:
There are several principles of wage and salary plan, policies and practices. The
important among them are:
Wage and salary plans and policies should be sufficiently flexible.
Job evaluation should be done scientifically.
Wage and salary administration plans must always be consistent with

overall

organizational plans and programmes.

Wage and salary administration plans and programmes should be in

conformity with the

social and economic objectives of the country attainment of equity in income distribution
and controlling inflationary trends.
Wage and salary administration plans and programmes should be responsive to the
changing local and national conditions. These plans should simplify and expedite other
administrative process.
ELEMENTS OF WAGE AND SALARY ADMINISTRATION:
Wage and salary system should have relationship with the performance, satisfaction and
attainment of goals of an individual. Henderson identified the following elements of
wage and salary administration.
Identifying the available salary opportunities, their costs, estimating the worth of its
members of these salary opportunities and communicating them to employees.
Relating salary to needs and goals.
Developing quality, quantity and time standards relating to work and goals.
Determining the effort necessary to achieve standards.
Measuring the actual performance.
Comparing the performance with the salary received.
37

 Measuring the job satisfaction gained by the employees.

Evaluating the unsatisfied wants and un reached goals of the employees.
Finding out the dissatisfaction arising from unfulfilled needs and unattained goals
adjusting the salary levels accordingly with the view to enabling the employees to reach
unreached goals and fulfill the unfulfilled needs.
WAGE INCENTIVES:
Wage incentives are extra financial motivates. They are designed to stimulate human
effort by rewarding the persons, over and above the time rate remuneration for improvements in
the present or targeted results.

TYPES OF INCENTIVES PLANS:

HALSAY SYSTEMS:
Under this system a standard time is fixed for the completion of job if the worker
completes the job in less than the standard time the time actually spent on the job he is paid at
hourly rate plus a bonus for the time saved.
ROWAN SYSTEM:
Under this system, a standard time is allowed for job and a bonus is paid for time
saved. The bonus is percentage of the workers part at a hourly basis. The percentage being equal
to the proportion the proportion the time saved bears to standards is attained.
TAYOR DIFFERENTIAL PIECE RATE SYSTEM:
This has a piece rate for output below standard and a piece rate per open above
standard with a bonus of 50% of the hourly rate of wages when standard is attained.
MERRICK DIFFERENTIAL PIECE RATE SYSTEM:
Straight piece rates are fixed up to 83% of standard o/p at which a bonus of 10% on
reaching standard o/p, beyond standard o/p high piece rates.
38

GRANT TASK SYSTEM:

Under this system for open below standard, the worker gets a guaranteed minimum
hourly rated, on reaching standards o/p, he gets 20% bonus, for outputs exceeding the standards
high piece rates are paid.

THE MECHANISM OF WAGE AND SALARY ADMINISTRATION:

Salary is structured, fixed adjusted on the basis of several systems. The important among
them are.

1) FACTORS EFFECTING SALARY LEVELS :

REMUNERATION:
Prevailing rates of remuneration in comparable industries constituted an important
factor in determining the salary levels. The organization in the long run must pay at least
equal to the going rate for the similar jobs in the similar organization.
FIRMS ABILITY TO PAY:
One of the principle considerations is the firms ability to pay. The firms should
be able to pay the same even at the tough situation (loss).
COST OF LIVING:
The cost of living is another important factor that influences the quantum of
salary the employees expect that their purchasing power be maintained at least at the
same level. If not increased by adjusting wages to changes in cost of living.
PRODUCTIVITY:
An interesting development in wage determination has been productively standard
this is based on the fact that productivity increase is also result of employees.
39

UNION PRESURE AND STRATEGIES:

The wages are also after influence by the strength of various. There bargaining
capacity and their strategies.
GOVERNMENT LEGISLATION:
Government legislations influence wage determination.

2) WAGE THEORIES :
JUST WAGE THEORY:
This was the first theory on wages advocated during medieval period. The essence
of this theory is that the worker should be paid on the level of maintain himself and his
family.
SUBSISTENCE THEORY:
According to Ricardo the laborers are paid to enable them to subsist and
perpetuate the race without increase or diminution.
STANDARD OF LIVING THEORY:
Karl Marx pointed out that wage of labor is determined by a traditional standard
of living, which, in turn, is determined by the mode of production of the country
concerned.
THE WAGE FUND THEORY:
According to J.S.Mill, the wages are determined on the basis of the relationship
between the amount of fund allocated for the purpose of wage payment and number of
workers in the country.
Amount of fund allocated for wage payment
Wages =

Number of workers

40

RESIDUAL CLIMANT THEORY:

According to walker, the wages are determined on the basis of amount left after the
payment of profits and interest to land, entrepreneur and capital respectively out of the
production level.
Amount of wages = production value (rent + profits = interest)
MARGINAL PRODUCTIVITY THEORY:
According to J.B. Clark, the wages are determined on the basis of marginal
contributions of the workers to production. The employer stops employing further workers where
the contributions of most recently employed worker are equal to his wages.

BARGAINING THEORY OF WAGES:

According to this theory the wages and other terms of employment are determined on
the basis of the relative bargaining strength of the two parties, viz., the employer and the
employees. Webs stated that, the haggling of the market which under a system of the
completion and individual bargaining determines the conditions of employment.

WORKMAN AND SUPERVISORS:

No claim for CDOs will be entertained or granted after expiry of three months from date on
which he worked in line of which CDOs be claimed.

WAGES AND SALARIY POLICY OF FACCOR

ADVANCES POLICY:
Monetary advantage is given to employees against the salaries for following purposes.
1) Festival advance.

1) FESTIVAL ADVANCE:

41

1). Festival is given to Hindu employees for Sankranthi. To Christmas for the Christian
employees and Ramzan to Muslims.
2). To amount of advance is as follows. 3000/- recoverable in 8 installments.

INCREMENTS:
The following are the increments given to the employees.
1) ANNUAL INCREMENTS:
Annual increments of all the employees will be effected twice in a year as a matter
convince as an annual increment will be awarded in January or in July.
2) SPECIAL INCREMENTS:
Increments are awarded for employees for extra ordinary performance on job per
direction on management.

FITMENT:
If a workmans basic pay short by Rs.3/- and fit in to particular slab in a particular scale,
such shortage will be covered by adding of amount to such shortage this benefit is extended only
during the subsistence of union agreement 1989/93. Additional increment for completion of
every 5 years of service.
BONUS:
The following are the bonus given to the employees and workers as well.

1. ANNUAL BONUS:
Annual bonus to all the employees is paid on accordance with the provision of payment
of bonus act 1965 and its amendments from time to time. The financial year of the company is
from 1st April to 31st March.

2.

ATTENDANCE BONUS:

42

Attendance bonus is payable on the basic of attendance on quarterly basis to workmen

only. Quarterly means Jan-March, April-June, July-September, October-December of each
calendar year.
The payment details of attendance bonus are as follows:
1. Rs.330/- per quarter to workman who has put in full attendance in the quarter without
taking any casual leave of sickness leave.
2. Rs.240/- per quarter to a workmen who has availed maximum one day casual leave on
one day sickness leave and has full of attendance.
3. Rs.190/- per quarter to workmen who has availed maximum, two day casual leave or
sickness leave and has balance full attendance.
Attendance includes attendance leave, earned leave, weekly days off, paid holidays, special
leaves.
With effect of 01-06-2008 management has decided on unions request that special leave and
leave for company planning operation are to be considered attendance.
FAMILY PLANNING INCENTIVES:
Management will be paying family planning incentives to employees who are
undergoing family planning operation with a view to promote small family norms against
employees.
The following is the family planning programme implemented to employees.
Special leave for six days will also sanction to such of those employees who undergo
family planning operation. The special leave will also be granted to the employees even of
his/her spouse family planning operation.
COMMUNICATION:
In FACOR, they do not have any communication policy but the media of communication
are by phone, pens, notice board, circulars, notes etc.
NATIONAL AND PAID HOLIDAYS:
1. Management declares to paid holidays including 10 national holidays in a year as per
unions and subject to approval of deputy commissioner of Vizag.
43

2. In addition of these ten days holidays two optional holidays given to employees.
3. Names of workmen decided to work on paid holidays are to be intimated to department
section to time office one day before.
4. Workman who is called upon paid holidays is not forced to work as it is continuous
manufacturing process.
5. Such of workmen who are asked to work on paid holidays to be given extra wages.
6. Extra wages for working on non paid holidays for supervisory staff with be given up to
Sr. Asst. Manager can avail compensatory off holidays for such numbers in which
worked.
SCHEME OF INCENTIVES:
These schemes of incentives shall be applicable from 01-01-1993 Subject to the
condition that the revised rates of incentives will not be payable for the period during which
normal production is effected due to any willful cause by the workmen. Incentives no 01-tapping
incentives. Each members of the taping crew of the furnaces in each shift is eligible for this
incentive. The amount payable to each worker depends upon the material produces and the no.of
tapping reaction done.
POLLUTION CONTROL:
FACOR fore saw the need of pollution control system as a responsibility and
incorporated two stage Venture scrubber systems, bag house units to the furnaces and are being
operated continuously maintain a clean environment around the industry. Continuous monitoring
is being done by a separate pollution control wing that the pollution levels are far below and safe
limits prescribed by the pollution control boards.
A beautiful green belt has been developed in an around the industry addition to the
plants developed within the factors systematic plantation is done to preserve and to beautiful the
environment. By a separate horticulture wing. The developed plantation covered with an area of
about 100 acres. And also the facilities for beneficiation and agglomeration of chrome ores have
been set up. Pilots for sintering of Manganese chrome ore fines and mechanize frequenting plant
were set up.
BRIEF DESCRIPTION OF PROVIDENCE OF FACOR:

44

The employee provident Fund and miscellaneous provisions Act 1952, is a social Security
Act. It was mainly passed with a view to make some provisions for the future of the individual
workers after his retirement or for his dependents is case of early death. It is also framed to
inculcate the habit of saving among the workers for the further contingencies.
The main object of this act provide substantial security and timely monetary benefit and
assistance to individual employee and their families when there are problems in need some
assistance to meet their family and school obligations, and also to protect them, when they
become older, disabled or and in case of early death of the employee and also in meeting some
other contingencies.
VARIOUS SCHEMES OF THE ACT:
The employee provident fund & miscellaneous provisions Act 1952 has mainly 3 schemes
to provide a broad and real recruit to the employee and their families. They are as follows:

The Employees Provident Fund Scheme. 1952

The Employees Pension Scheme. 1995

The Employees Deposit Linked Insurance Scheme. 1973

REMITTANCE RATES:
The employee has to remit by 15 th of every month of the contributions and other
charges at the following rates.
THE WAGE LIMIT (MAXIMUM) FOR ALL THE THREE SCHEMES IS 6,500:
SCHEME

CONTRIBUTION
OF

EMPLOYER

EMPLOYEE
FPF Scheme

12%

3.67%

Provident Fund

-----

------

Admin Charges

-----

1.10%

Employee Pension

-----

8.33%

Scheme
45

Linked Insurance

-----

0.50%

-----

0.01%

Scheme
EDIT Adm Charges

(Subject to Min of 2)
TOTAL

12%

13.61%

The employer and the Employee have to furnish various firms to Provident Fund Office
for different purposed some of them are follows:
ABOUT E.S.I (EMPLOYEE STATE INSURANCE):
The contribution of E.S.I is as follows:
EMPLOYEE

1.75%

EMPLOYER

4.75%

CLARIFICATION ON CERTAIN UNDER ESI ACT:

Following are the clarification confirmed by the regional office of ESI at Hyderabad
which formed part of deliberation at the seminar on recent amendment to ESI (central) rules,
1950, held on 29-3-1977 at FAPCCI premises.
Allowances which are COVERED & NOT COVERED the definition of wages and on
which ESI deductions are to be made.
COVERED

NOT COVERED

1. Payment made for over time working

1.Cycle allowance (paid for using)

2. HRA

2.Coneyance allowance

3. Night shift/shift allowance

3.Lunch allowance per day of.

Attendance
4. Incentive payment made

4.Allowance paid to datary incidental

ABOUT ESI (EMPLOYEES STATE INSURANCE):

46

The contribution of E.S.I is as follows:

EMPLOYEE
EMPLOYER

1.75%
4.75%

Payment for working on holidays.

Payment paid for acting in a higher post.

NOTE: The incentive payment made at interval exceeding 2 months also constitute as wage.

ANALYSIS AND INTERPRETATION OF THE STUDY

1. Are you happy with your job
(a)YES (b) NO
TABLE NO: 1

SL.NO

OPTIONS

1
2

YES
NO
TOTAL

NO. OF
RESPONDENTS
75
25
100

GRAPH: 1

47

PERCENTAGE
(%)
75
25
100

ANALYSIS :
In table no.1, it shows that75percentage of the respondes are happy with their
job.25 percentage of respondents are not happy with their job . The maximum number of
the respondents are of an opinion that they are satisfied with their job. Minimum number
of respondents are of the opinion that they are not satisfied with their job.

48

2. Which factor is more important to have job satisfaction

(a)Salary (b) Management

(c) Welfare benefits

(d) Working conditions

TABLE NO: 2

SL.NO
1

OPTIONS
Salary

NO. OF
RESPONDENTS
40

2
3
4

Management
Welfare
benefits
Working
condition
TOTAL

GRAPH: 2
49

PERCENTAGE
(%)
40

35

35

10

10

15

15

100

100

ANALYSIS :
In table no 2 , it show sthat 40 percentage of the employees say that their salary is
important for job satisfaction, 35 percentage of employees say that their management is
important for job satisfaction,10 percentage employees say that their welfare benefits is
important for job satisfaction ,15 percentage employees say that their working
conditions is important for job satisfaction. The maximum number of the respondents
are of the opinion that they are satisfied with their salary.

50

3. The salary gives good feeling & personal accomplishment

(a)Strongly agree (b) Agree

(c) Partly agree (d) Disagree

TABLE NO : 3

SL.NO

OPTIONS

1
2
3
4

Strongly Agree
Agree
Partly Agree
Disagree
TOTAL

NO. OF
RESPONDENTS
66
14
15
5
100

GRAPH: 3

51

PERCENTAGE
(%)
66
14
15
5
100

ANALYSIS :
In table no.3, 66percentage of the respondents strongly agree that they are satisfied
with their salary, 14 percentage of them agreed, 15 percentage of them partly agreed and 5% of
them totally disagree that their salary is not good. After survey it has been found that all the
employees who are working in the FACOR are satisfied with their salaries and it gives good
feelings and personal accomplishment to 66 percentage of them.

52

4. salary should be given on the basis of performance of the employee

(a)Strongly agree (b) Agree

(c) Partly agree (d) Disagree

TABLE NO: 4

SL.NO

OPTIONS

1
2
3
4

Strongly Agree
Agree
Partly Agree
Disagree
TOTAL

NO. OF
RESPONDENTS
53
20
17
10
100

GRAPH: 4

53

PERCENTAGE
(%)
53
20
17
10
100

ANALYSIS :
Majority of the respondents i.e., 53 percentage of them strongly agree that salary are
given on the basis of performance of the employees, 20 percentage of the respondents agree, 17
percentage of them partly agree and 10 percentage of them disagreed. The maximum number of
respondents are of the opinion that salary should be given on the basis of performance and only
minimum of them disagree.

54

5. Compensation commensurate with responsibility to all levels of employee

(a)Strongly agree (b) Agree

(c) Partly agree (d) Disagree

TABLE NO. 5

SL.NO

OPTIONS

1
2
3
4

Strongly Agree
Agree
Partly Agree
Disagree
TOTAL

NO. OF
RESPONDENTS
20
67
6
7
100

GRAPH: 5
55

PERCENTAGE
(%)
20
67
6
7
100

ANALYSIS :
Most of the respondents agreed that the compensation commensurate with responsibility
to all levels of employee i.e., 67percentage. But some of them strongly agree at 20 percentage,
partly agree at 6 percentage and disagreed at 7 percentage. The maximum number of respondents
are of the opinion that compensation commensurate should be done at all levels of employee. But
minimum of them disagreed.

56

6. Are you getting the salaries on time every month

(a)Yes (b) No

TABLE NO: 6

SL.NO

OPTIONS

1
2

Yes
No
TOTAL

NO.OF
RESPONDENTS
100
0
100

GRAPH: 6

57

PERCENTAGE
(%)
100
0
100

ANALYSIS :
In table no.6, 100percentage of the respondents said that they are getting the salaries on
time every month. None of them i.e., 0 percentage responded negatively. 100 percentage
respondents stated that they are getting the salaries on time every month in company rules and
regulations.

58

7. Whether wages, salaries and increments are followed every year

(a)Strongly agree (b) Agree

(c) Partly agree (d) Disagree

TABLE NO: 7

SL.NO

OPTIONS

1
2
3
4

Strongly Agree
Agree
Partly Agree
Disagree
TOTAL

NO. OF
RESPONDENTS
76
10
10
4
100
59

PERCENTAGE
(%)
76
10
10
4
100

GRAPH: 7

ANALYSIS :

In table no.7, it has found that 76 percentage of the respondents strongly agree,
10 percentage of them agree, 10 percentage of them partly agree and 4 percentage of them
disagreed that the wages, salaries and increments are followed every year in the company. After
the survey it has found that maximum number of respondents agreed that wages, salaries and
increments are followed every year. Minimum number of them disagreed with it.

60

8. The Wages and Salary system for all employees in Facor is Satisfactory
(a)Strongly agree (b) Agree

(c) Partly agree (d) Disagree

TABLE NO : 8

SL.NO

OPTIONS

1
2
3
4

Strongly Agree
Agree
Partly Agree
Disagree
TOTAL

NO. OF
RESPONDENTS
53
22
18
7
100

61

PERCENTAGE
(%)
53
22
18
7
100

GRAPH: 8

ANALYSIS :
In table no. 9, 53 percentage of the respondents strongly agree that they are satisfied with
wages and salary system, 22 percentage of them agree, 18 percentage of them partly agree and 7
percentage of them disagreed. Maximum number of the respondents opinion that the wages and
salary system in FACOR is Satisfactory. Minimum number of respondents opinion is that it is not
Satisfactory.

62

9. Wage & Salary structure implemented according to qualification & experience

(a)Strongly agree (b) Agree

(c) Partly agree (d) Disagree

TABLE: 9

SL.NO

OPTIONS

1
2
3
4

Strongly Agree
Agree
Partly Agree
Disagree
TOTAL

NO. OF
RESPONDENTS
35
44
12
9
100

63

PERCENTAGE
(%)
35
44
12
9
100

GRAPH: 9

ANALYSIS :
In table no.9, after the survey it has found that 35 percentage of the
respondents strongly agree, 44 percentage them agree, 12 percentage them partly agree
and 9 percentage them disagreed that wages & salary structure implemented according to
qualification and experience.Maximum number of respondents satisfied that wage and
salary structure implemented according to qualification and experience. Minimum
number of respondents did not satisfied with this.

64

10. Bonus & Incentives are they relative to the employees contribution
(a)Strongly agree (b) Agree

(c) Partly agree (d) Disagree

TABLE NO: 10

SL.NO

OPTIONS

1
2
3
4

Strongly Agree
Agree
Partly Agree
Disagree
TOTAL

NO. OF
RESPONDENTS
12
54
15
19
100

GRAPH: 10
65

PERCENTAGE
(%)
12
54
15
19
100

ANALYSIS:
In table no. 10, 12 percentage respondents strongly agree, 54 percentage
respondents agree, 15 percentage respondents partly agree and 19 percentage respondents
disagreed that bonus and incentives are relative to the employees contribution. It has
found that maximum number of the respondents agreed that Bonus and Incentives are
relative to the employees contribution. Minimum of them did not agree with that.

66

11. Are you getting your pay as per the laws

(a) Yes

(b) No

TABLE NO: 12

SL.NO

OPTIONS

1
2

Yes
No
TOTAL

NO.OF
RESPONDENTS
100
0
100

GRAPH: 11

67

PERCENTAGE
(%)
100
0
100

ANALYSIS :

In table no. 11, 100 percentage of the respondents said that they are getting their
pay as per the laws. None of them i.e., 0 percentage responded negatively. 100 percentage
respondents stated that they are getting wages according to law. Permanent employees are getting
more than the minimum wages which includes their incentives and bonus on the basis of their
experience. Contract labour are getting wages according to minimum wages act.

68

12. Are employees paid for overtime if their work over and above their contracted
hours
(a) Yes

(b) No

TABLE NO : 12

SL.NO

OPTIONS

1
2

Yes
No
TOTAL

NO.OF
RESPONDENTS
100
0
100

GRAPH: 12
69

PERCENTAGE
(%)
100
0
100

ANALYSIS :
In table no. 12, it has found that 100 percentage of the respondents agree that the
employees are paid for overtime and above their contracted hours. 0 percentage of them
disagreed for that. The standard working hours in a week is 48hrs. As an organization
FACOR avoids persistent working of extra hours. Employees are paid overtime with the
monthly wages for any extra hours worked. 100 percentage employees responded to the
favourably which shows that employees do get monitory benefits as per law when they
put in extra hours at work due to business requirements.

70

13. How frequently your wages and salary structure is modified

(a) Yearly

(b) Half yearly

(c) Quarterly

(d) More than 1 year

TABLE NO : 13

SL.NO
1
2
3
4

OPTIONS
Yearly
Half yearly
Quarterly
More than 1
year
TOTAL

NO. OF
RESPONDENTS
55
20
15
10
100

GRAPH: 13

71

PERCENTAGE
(%)
55
20
15
10
100

ANALYSIS :
In table no. 13, 55percentage of the respondents say that wages and salary
structure is modified every year. 20percentage of the respondents say that wages and
salary structure is modified for half yearly. 15percentage of the respondents say that
wages and salary structure is modified for quaterly. 10percentage of the respondents say
that wages and salary structure is modified for more than one year.

72

14. Dose the company change DA as per the changes taking place in the environment
(a) Yes

(b) No

TABLE NO : 14

SL.NO

OPTIONS

1
2

Yes
No
TOTAL

NO.OF
RESPONDENTS
75
25
100

GRAPH: 14

73

PERCENTAGE
(%)
75
25
100

ANALYSIS :
In table no. 14, it is clear that only 75% answered favourably where as 25%
felt that they were paid less , when they are asked about DA by the management.
Maximum number of the respondents opinion is that they are getting DA according to
law. Minimum of them disagreed with this.

74

15. What is your opinion in comparing salary/wage with similar

Industries?
a) Very Good

b) Good

c) Bad

TABLE NO : 15
SL.NO

OPTIONS

1
2
3

Very Good
Good
Bad
TOTAL

NO. OF
RESPONDENTS
80
10
10
100

GRAPH: 15

75

PERCENTAGE
(%)
80
10
10
100

ANALYSIS :
In table no. 15, it is clear that only 80% of employers are saying that they are very happy
with the wage/salary that was provided by the FACCOR when comparing with other industries
and 20% of employers are saying that it is good when comparing to other industry.

76

16. Suggestions
a) you want better salary
b) More monitory benefits are expected

77

SUMMARY
An organization has to balance fairly financial and non financial rewards extrinsic
awards. Effective awards and intrinsic awards. Effective reward system requires not only that the
absolute level of compensation paid by an organization compares favorably but also enquires that
it satisfies the principles of internal equity and equity with the job content. The employees gets
pay satisfaction of the perceived salary is equal to actual salary received and actual salary is less
than perceived salary the employee is dissatisfied with the salary. The remuneration paid by the
employer for the services of hourly, daily, weekly and fortnightly employees.
The remuneration paid to the clerical and managerial personnel employed on monthly
or annual basis. It is the amount of remuneration for unit of time excluding incentives, overtime
pay etc. Is the amount of wage fixed for the unit of time fixed on the basis of job evaluation
standards. Is an assembly of all properly evaluated standard wage rate set from in the sequence
78

according to the job and size of the rate. Refer to compensation given to the employees over and
above wage rates which often is not directly related to output performance of time worked refer
to special rates to certain period such as over time, Sundays and holidays.
The objective of wage and salary administration is numerous and sometimes conflict
with each other. Candidates decide upon their career in a particular organization mostly on the
basis of the amount of remuneration the organization mostly on the basis of the amount of
remuneration the organization offers qualified and competent people join the best paid
organization. The organization should aim at payment of salaries at that level where they can
attract competent and qualified people. If the salary does not present compare favorably with that
of other similar organization. Employees quit the present one and join the other organization.
The organization must keep the wage levels at the competent level, in order to prevent
quite. Internal equity does mean payment of similar wages for similar jobs within the
organization. External equity implies payment of similar wages to similar jobs in comparable
organization.
To protect in public as progressive employers and to comply with the wage
legislations. To pay according to comply with wage legislations. To pay according to the content
land difficulty of the jobs and in tune with the effort and merit of the employees. To facilitate pay
role administration of budgeting and wage and salary control. To simply collective bargaining
procedure and negotiations. To promote organization feasibility.
Over all salary range for all the jobs in an organization is arranged. Each job grade will
be assigned salary range. These individual salary ranges will be filled into an overall range
Overall salary grades of the organization may be adjusted on the data information collected about
the salary levels of similar organizations. Individual salary may also be adjusted based on the
performance of the individual employees. Indian Ferro Alloy Industry is not as old as the Steel
Industry. From a humble start in the fifties the capacity has grown enormously with enough
potential to increase exports in future. However, the high power tariff in India is the stumbling
block. Though the industry started getting power from National Power Corporation at NTPC
tariff, it is still higher than the power tariff available in countries like Norway, China, and Russia,
Kazakhstan etc., which are a major producers and exporters of Ferro alloy too.
What is more, the import duty on Ferro alloy has also been reduced drastically to 25
per cent in the post liberalized era. Further, steel exporters are eligible to import their raw
79

material including Ferro Alloys free of duty against advance license. With plenty of raw
materials like ores and reluctant available in the country, what the industry needs is a level
playing field by power being made available at international comparable tariff. The Indian Ferro
Alloy Industry is more than four decades old, as produces Bulk and Noble Ferro Alloys.
Through this Industry is not as old as the steel industry, its capacity has increased
substantially from a humble start in the fifties, meeting the requirement of the steel industry in
the country. The growth of the steel industry has not picked up as expected, whereas the growth
of the Ferro Alloy Industry has stepped up, much more than the expected level. With the result,
the capacity available in the country is much more in the Ferro Alloy Industry.
It is a lot of potential to increase its exports in the near future. India has been bestowed
with adequate resources of all basic raw materials required for the production of Manganese,
Silicon and Chrome Alloys. Most of the Ferro Alloy Units have come up in the six States Andhra
Pradesh, Madhya Pradesh, Maharashtra, Orissa and West Bengal, mainly due to availability and
or proximity of the raw materials. Ferro Alloys is a power intensive industry.
The total connected load of the industry has grown almost 8 to 9 times from 130 MVA
in the mid sixties to over 1000 MVA as on date. With the result, the installed capacity of the
industry is 1.5 million tones of Bulk and Noble Ferro Alloys. Capacity of Manganese Alloys is
around 700,000 tones. Ferro Silicon 175.000 tones and Ferro Molybdenum, Ferro Vanadium,
Ferro Tungsten, Silicon Magnesium, Ferro Titanium, Ferro Phosphorous, etc., around 20,000
tones. FACOR was established as a public limited company by the families of SHARAFS and
MORS.
In the History of Ferro Alloys, this has become the first of its kind and a major producer
of Ferro Manganese in the country. FACOR is not only a leader in the field of Ferro Alloys, but
also produces special steels of high standard. Its diversified activities extended beyond mining
and production of Ferro Alloys, to making the special steel and embrace the production and
manufacture of synthetic yarn and maize products. Low Ferro Chrome was imported to India
until 1966 to meet the demand of steel industry. Then, FACOR has step up a Ferro Chrome plant
with two furnaces having capacity of about 12000mt low/high Carbon Ferro Chrome to
substituted the imports of Ferro Chrome and meet the domestic demand along with Ferro
Manganese Production and saved lot of valuable foreign occupies the first position as producer
and exporter of Ferro Alloys, in the country. It is a pride for the organization for such credentials.
80

It is the countrys first Ferro Alloys Plant. It is the first plan to innovate and introduce
Chromium Alloys and also the only single unit to meet countrys requirements. It is the first unit
to produce Magnesium Ferro Silicon.It is the first to take up the erection and commissioning of
the wholly indigenous furnace without any foreign component or consultancy. The first in the
countrys to export Ferro Manganese. It is the first among the various Ferro Alloys, producing
unit to take up the manufacture of low Carbon Ferro A
FACOR has built up a good track record and developed into Indias largest
manufacturer and exporter of Ferro Alloys, and maintained this position over the time. Personnel
Department. The personnel department plays a vital role in the organizational climate of any
organization. The personnel department of FACOR has also drawn clear guidelines for personnel
policies and procedures, their by setting up an atmosphere of mutual confidence and respect.
Thus it helps to develop harmonious relations between management and the work force.
A thorough job analysis is under taken and then existing employee pool is referred and
matches to the required employee qualities with job specification, if it matches the employee is
assigned the job, if not a new candidate will be introduced into the organization. One of the basic
raw materials for FACOR is power, which constitutes shortage, and heavy and continuous power
cuts and low voltages, production hampered and there were heavy losses due to non availability
of finished goods at required time. So FACOR planned to establish its own power generate plant
during 1990-91 and the cost of generation is almost 50% of cost of power supplied by APSEB
power generated in the plant is meeting also 50% of the FACOR requirement.
The basic raw material for power plant lubricants is produced from HPCL Vizag.
The FACOR provides employment nearly for 10000 employees and has been instrumental in
building industrial township of Shreeramnagar (A.P) Durgaprasad and Sri Durgapur (Orissa).
The raw materials are smelted/heated to 1500 to 2000c and then alloys are trapped from electric
arc furnaces in molten states, at prescribed intervals, along with the bye-products which are
called slag. The melt is separated into metal and slag and collected in receptacles. After cooling
the metal and slag are handled separately.
The organization must keep the wage levels at the competent level, in order to
prevent quite. Internal equity does mean payment of similar wages for similar jobs with in the
organization. External equity implies payment of similar wages to similar jobs in comparable
organization. To protect in public as progressive employers and to comply with the wage
81

legislations. To pay according to comply with wage legislations. To pay according to the content
land difficulty of the jobs and in tune with the effort and merit of the employees. To facilitate pay
role administration of budgeting and wage and salary control. To simply collective bargaining
procedure and negotiations. To promote organization feasibility.
Over all salary range for all the jobs in an organization is arranged. Each job grade will
be assigned salary range. These individual salary ranges will be filled into an overall range
Overall salary grades of the organization may be adjusted on the data information collected about
the salary levels of similar organizations. Individual salary may also be adjusted based on the
performance of the individual employees.
The raw materials are smelted/heated to 1500 to 2000c and then alloys are trapped
from electric arc furnaces in molten states, at prescribed intervals, along with the bye-products
which are called slag. The melt is separated into metal and slag and collected in receptacles.
After cooling the metal and slag are handled separately.
The adoption of quality management system should be a strategic decision by the
top management of an organization. The design and implementation of an organizations quality
management system is influenced by varying needs, particular objectives, the products provided,
the processes employed and the size and structure of the organization. This international standard
is based on eight quality international standard to imply uniformity in the structure of quality
management systems of uniformity of documentation.To identify and meet the needs and
expectation of its customers and the interested parties (people in the organization suppliers,
owners, society) to achieve competitive advantage , and to do this effective and efficient manner
and to achieve, maintain, and improve overall organizational performance and capabilities.
The application of quality management principles not only provades direct benefits
but also makes an important contribution to managing costs and risks. Benefit, cost and risk
management considerations are important for the organization, its customers and other interest
parties.
FACOR has performed well during last four decades and its turnover is about Rs.3,
000/- million and is further seeking to diversify into other fields namely metallurgical, petro
chemicals, chemical food based products etc. FACOR is well known nationally and
internationally for 620 million Rupees.

82

As a pioneer, the company has always been eager to utilize the opportunities for
growth and diversification in the related areas and for that reason FACOR has acquired/set up a
mini-steel plant at Nagapur (Maharashtra) to produce quality steel. A charge chrome plant
located at D.P. Nagpur, randia, dist. Balasore, costing around 45 crores. This is a 100% Export
Oriented unit with a production capacity of 50,000 tones per annum.
The employee provident Fund and miscellaneous provisions Act 1952, is a social
Security Act. It was mainly passed with a view to make some provisions for the future of the
individual workers after his retirement or for his dependents is case of early death. It is also
framed to inculcate the habit of saving among the workers for the further contingencies.
The main object of this act provide substantial security and timely monetary benefit and
assistance to individual employee and their families when there are problems in need some
assistance to meet their family and school obligations, and also to protect them, when they
become older, disabled or and in case of early death of the employee and also in meeting some
other contingencies.
The capacity increase of the Ferro industry in general, followed the course to meet the
planned target of steel industry in the country, and also to remain potential exporters of Ferro
Alloys in the international market to earn substantial foreign exchange for the country. However,
the performance of the industry started deteriorating from the mid-sixties, due to various reasons,
the foremost being, steep increase in the power tariff, fuel, oil, raw materials and transport
charges.
Exports started sliding from 1978 onwards. The eighties witnessed the maximum
erosion in the export performance of the Ferro Alloy Industry. However, after initiation of the
liberalization programmed, there has been a spurt in the export of Bulk Ferro Alloys. Like all
other Sectors, exports from this sector have also increased.
The Industrial development of any country depends upon the strengths of the basic
industries like Iron and Steel, Cement, Power Generation, Electric and Electronic etc., steel is the
life blood of any industry and also prime requirement for human development. Thus the Ferro
Alloys are the basic raw materials for steel manufacture with various properties for different
application. FACOR Shreeramnagar, works division is fulfilling this demand for steel industry in
83

the country, thus has unmatched reputation of this-quality production not only in the domestic
market but also in the international market.To help the organization to attain its goals by
providing well-trained and well-motivated employees. To utilize the human resources effectively
in the achievement of organizational Goals. To enhance the job satisfaction and self actualization
of employees by Encouraging and assisting every employee to realize his or her full potential.
To establish and maintain productive, self respecting and internally satisfying working
relationships among all the members of the organization. To bring about maximum individual
development of members of the organization by providing opportunities for training and
advancement. To develop and maintain a quality of work life which make employment, in the
organization a desirable personal and social situation. To maintain high employee morale and
sound human relations by sustaining and improving various conditions and facilities.To manage
change to the mutual advantage of individuals, groups, the organization and the society. Principle
stresses on the development of every person working in an organization. By this employees will
be able to develop themselves to the maximum extent of their capabilities. Their abilities,
productivity and efficiency can be used for achieving the objectives of the organization.

FINDINGS

Most of the employees satisfied with their job.

Many of the employees agreed that their salary is providing good feeling and
accomplishment.

Most of the respondents agreed that rewards should be given on the basis of performance.

Maximum number of respondents agreed with the compensation.

Most of the employees agreed with the organization policies.

Mostly all the employees agreed that company is much concern about employees.

Many of the respondents agreed recognition of employees contribution.

Most of the agreed that wages, Salaries and increments are followed every year.

Maximum number of the respondents agreed about the Wages and Salary system in
FACOR is Satisfactory.

84

Many of the employees agreed that Wage and Salary structure implemented according to
qualification and experience.

Many of the respondents agreed that Bonus and Incentives are relative to the employees
contribution.

Mostly all the employees responded positively that they are getting their pay as per the
laws

All the employees reacted positively that they are paid for overtime.

Maximum of the respondents agreed that they are getting benefits on time and when
needed.

Above of the employees agreed that they are getting gratuity according to laws while
leaving the job.

SUGGESTIONS

The Wages and Salary policy adopted by management is not up to standard level.

The management is paying acting allowance if a person acts in place of another and plays
additional expenditure. The additional expenditure can be avoided by employing multi
skilled workers.

The management may announce efficiently based increments to attract deficient, skilled,
committed and personal. So that the experienced skilled employee do not go to other
small industries and create a competition to this organization.

Standard safety precautions are not followed at the work spot.

85

In order to solve the power problem management started a power plant but is not in use
today it become a dead weight.

QUESTIONNAIRE
A STUDY ON EVALUATION OF WAGE & SALARY ADMINISTRATION
NAME:
DESIGNATION:
1) Are you happy with your job
a) Yes b) No
2) Which factor is here important to have job satiesfaction
(a)Salary (b) Management

(c) Welfare benefits

86

(d) Working conditions

3) The salary gives good feeling & personal accomplishment.

a) Strongly Agree b) Agree c) Disagree d) Strongly Disagree
4) Rewards should be given on the basis of better performance of the employee.
a) Strongly agree b) Agree c) disagree d) Strongly disagree
5) Compensation commensurate with all levels of employee
a) Strongly agree b) Agree c) disagree d) Strongly disagree
6) Are you getting the salary on time every month
a) Yes b) No
7) Whether wages, salaries and increments are followed every year.
a) Strongly agree b) Agree c) disagree d) Strongly disagree
8) The Wages and salary system for all Employees in FACOR is satisfactory.
a) Strongly agree b) Agree c) disagree d) Strongly disagree
9) Wage & Salary structure implemented according to Qualification & Experience.
a) Strongly agree b) Agree

c) disagree d) Strongly disagree

10) Bonus & Incentives are they relative to the employees contribution.
a) Strongly agree b) Agree

c) disagree

d) Strongly disagree

11) Are you getting your pay as per the laws?

a) Yes

b) No

12) Are Employees paid for overtime if their work overtime above their contracted hours?
a) Yes

b) No

13) How frequently your wages &salary structure is modified

a) Yearly

b) Half yearly

c) Quarterly

d) More than 1 year

14) Dose the company change DA as per the changes taking place in the environment
87

a) Yes

b) No

15) What is your opinion in comparing salary/wage with similar industries?

a) Very Good

b) Good

c) Bad

16) Suggestions

a) You want better salary

b) More monitory benefits are expected

BIBLIOGRAPHY

Human Resource Management.

- V.S.P. Rao

Human Resource Management.

- K. Aswathappa
Human Resource Management, Excel publications.
- N.K. Singh
HRD and Management.
- Ghosh
88

 Human Resource management, Oxford university press.

- Jyothi

WEB SITES:

www.management.about.com
www.humanresource.about.com

89