RAKSHPAL BAHADUR MANAGEMENT INSTITUTE BAREILLY

A SUMMER TRAINIG REPORT (2011-12)

ON

“COMPENSATION & BENEFITS SCHEME IN IWP CO. LIMITED”

UNDER THE KIND GUIDANCE AND SUPERVISION OF:

Mr. C.S. Sharma
Sr. Manager (P & A)

SUBMITTED BY :

HEMAN SRIVASTAVA
MBA 3rd Sem.

1
 CONTENTS

PREFACE

ACKNOWLEDGEMENT

DECLARATION

INTRODUCTION

COMPANY PROFILE

KNOWLEDGE ABOUT COMPANY/INTRODUCTION

QUALITY ASSUARANCE & RESEARCH AND PRODUCTS

VISION & MISSION

VALUES & CUSTOMER FOCUS

MANUFACTURING PROCESS

ORGANISATION CHART

EMPLOYEES & THEIR CATEGORISATION

COMPENSATION & BENEFITS

 TYPES OF WAGES
 DIFFERENT METHODS OF REMUNERATING LABOR
 ALLOWANCES
 FRINGE BENEFITS
 STATUTORY &OTHER BENEFITS
 WELFARE & OTHER FACILITIES
 INCENTIVES
o INCENTIVE PLAN
o INCENTIVE SCHEME IN IWP
o ATTACHMENTS
 OBJECTIVES OF THE REPORT
 RESEARCH METHDOLOGY
 SUMMARY OF RESEARCH DESIGN
 DATA ANALYSIS & INTERPRETATION
 FINDINGS
 SUGGESTION & RECOMMENDATIONS
 CONCLUSION
 LIMITATIONS OF THE PROJECT REPORT
 BIBLIOGRAPHY
 APPENDIX

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 PREFACE

As a part of the partial fulfillment of the MBA (HR) programme at Rakshpal Bahadur
Management Institute Summer Training was undertaken with The Indian Woods
Products Co. Limited (Katha Factory), Izatnagar Bareilly a unit of Katha/Black Catechu
and Cutch production in India (U.P.).

Bareilly Unit is one of the biggest Katha producing Factory in India. The company was
established in 1913 by M/S Gillianders Arbuthnot & Co. Limited and the production of
katha started in 1920 hence the company has now completed their 98 years of excellence
in Katha production.

The purpose of the training was to have the practical experience of working in a Human
Resource department and to have the exposure to the various management practices in
the field of human resource & how the Compensations, Salary, Wages, Incentives,
Allowances, Facilities and other benefits are distributed in the company.

This report is an attempt to provide the details about the “Compensation and Benefits
Scheme” adopted by the “The Indian Woods Products Co. Limited”.

ACKNOWLEDGEMENT
3
Nothing concrete can be achieved without an optimal combination inspiration and
perspiration. No work can be accompanied without taken the guidance of experts. It is
only critics from ingenious that help transform a product into a quality product.

For this, I am grateful to Mr. C.S. Sharma (Sr. Personnel Manager) for his constant
encouragement and invaluable critical suggestions given during my summer training
programme. His timely advice and guidance proved his commitment in completing my
training.

A heartfelt thanks to the respondents surveyed whose ideas, critical insights and
suggestions have been invaluable in the preparation of this report.

Last but not the least, our sincere thanks to the IWP Co. Limited who were a vital thrust to
our thoughts and needs throughout the training programme. Finally thanks to teachers at
Rakshpal Bahadur Management Institute, who put in numerous hours to make the
intangible tangible…..

DECLARATION

I hereby declare that the project report entitled-

4
 “COMPENSATION & BENEFITS SCHEME IN IWP CO. LTD.”

The analysis and findings in this report are based on the information collected by me
through a Structured Questionnaire having Open Ended Questions.

Place: Izatnagar, Bareilly. Trainee:

Date: _________________________ HEMAN SRIVASTAVA

INTRODUCTION TO IWP CO. LIMITED

 BACKGROUND:
The Indian Woods Co. Limited was promoted by Mr. H. N. Gladston, Mr. H. Bateson,
Mr. E .H. Bray of London and others in 1919. The company was limited by shares
under the Company’s Act 1913 with the sole object to manufacture Katha and Cutch

5
at Izatnagar, Bareilly (U.P.) India. The manufacturing activities started in 1920 and
the board of directors appointed M/S Gillianders Arbuthnot & Co. Limited as the
managing agents who would look after the daily activities of the company.

Till 1962, the company was under the Director of Industries, Kanpur (U.P.) and it
was only in 1963 that the company was granted an Industrial License by the
Ministry of Commerce and Industry. This entitled the company to manufacture 600
million tons of Katha & 1200 million tons of Cutch per annum. With the abolition of
Managing Agency Systems by the Companies Act, M/S Gillianders Arbuthnot & Co.
Limited ceased to act as the Managing Agents of the Company. Thereafter, the
control and management of the Company vested with the Board of Directors
consisting of directors of M/S Gillianders Arbuthnot & Co. Limited and their
associate companies. In 1970 it became an Indian Company. In 1980 the present
management acquired the controlling interest in the company.
At present, Mr. K. K. Mohta (Chairman) and Mr. K. K. Damani (Executive Director)
manage the entire range of daily operations of the company under the strict control
of Board of Directors.

In 1996, the company under took wind power project and two generators of 400
KVA were installed at Poolavadi, Dist. Coimbatore ( Tamil Nadu) for generation of
wind power energy which is being supplied to Tamil Nadu State Electricity Board.

6
 COMPANY PROFILE:
Pioneers in manufacturing Katha, The Indian Woods Co.
Limited was established in 1919.

COMPANY The Indian Woods Products Co. Limited

7
 ADDRESSES:
H.O. Bombay Mutual Building, 7th floor-9,
Brabourne Road, Kolkata- 700001 (W.B.)
FACTORY Izatnagar, Nainital Road Bareilly- 243122
(U.P.)
SALES OFFICE 284/85 Katra Peran, Tilak Bazar- Khari Baoli,
Delhi.

E-MAIL iwpcl@cal2.vsnl.net.in

TELEPHONE (+91-33)2424749/4752

CHAIRMAN Mr. Krishna Kumar Mohta

WEBSITE www.iwpkatha.com

 SHIFTS OF WORKING:
In the Factory the production work is done in 3 shifts:

SHIFT-A SHIFT-B SHIFT-C

7:30am to 3:30pm 3:30pm to 11:30pm 11:30pm to 7:30am

The packaging and maintenance work is done from 8 am to 4:30pm daily.

The working of administrative class is from 9 am to 6 pm.

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 RAW MATERIAL:

The basic raw material for Katha production is Khair Wood which is supplied from
Maharashtra and Madhya Pradesh.

 PRODUCTION:

In Factory the total per day production of Katha is 9000 Quintals.

 SUPPLY:

The produced Katha is supplied at all over India. The maximum supply is made to Goa.
The supply is not limited only in India but it is exported from India also. The maximum
export is made to Indonesia.

QUALITY ASSUARANCE
&
RESEARCH

9
 QUALITY ASSUARANCE & RESEARCH:

Achieving ultimate customer satisfaction is the prime outlook of IWP. To materialize

this, the organization has adopted stringent quality control tests firm intermediate
stages of input of raw materials till output of finished products. To achieve this, we
have qualified team of 20 engineers & chemists who monitor the operation and the
quality. We are equipped with laboratory facilities and modern equipments such as
HPTLC, GLC, Polari meters, TLC, Spectrometer, Moisture meter, Hygroscopes besides

10
 Kjeldahi extractor, etc. The company also owns a research lab having plant &
equipments for Pilot Plant Scale Research for improving quality & research.

 PRODUCTS:

ANNUAL
PRODUCTS OTHER NAMES PRODUCTION
CAPACITY

CATECHU BLACK CATECHU, KATHA 600M.T.

CUTCH VEGETABLE TANNINC 1200M.T.

Vision and Mission

Our Vision Our Mission

11
 We are in the business of
trading and manufacturing
activities and moving along the
lines of recent economic
liberalization.
VALUES & CUSTOMER FOCUS
To establish ourselves as one of
the world’s premier companies in
the field of manufacturing
katha/catechu not only in India
but in international market.
To serve the society by
providing product and services of
consistent quality, meeting
customer requirements,
providing adequate opportunity
for the employees to achieve
their reasonable aspirations.
12
 VALUES:
We must also keep in mind the following values:-

 INTEGRITY:-
We shall be honest in our dealings to earn the trust and loyalty of others and our actions
must be just and ethical. We must be truthful, honor commitments, uphold declared values
and be fair. Integrity must be an integral part of every employee.

 COURTESY & HUMILITY:-

We shall be courteous and modest in our dealings both business and private. We should
not arbitrarily or selfishly but always respect rights and personal dignity of every
individual we deal with. We shall praise and encourage people freely.
We shall always listen respectfully to public opinion, solicit customer’s suggestion and
shall make continuously efforts to make ourselves better; this will also help us to earn
trust of society.

 COMMUNICATION & OPENNESS:-

We shall communicate our policies, goals, objectives and expectations to get involvement
of people. The information shared shall be within the limit of confidentiality.
We shall share related information and data to keep concerned people up to date to enable
them to make right decisions at right Time.
We hall create an environment through effective listening where people are encouraged to
express their views freely and make contributions. We shall share feelings in constructive
manner and gain clear understanding of alternatives.

 HARMONY & CO-OPERATION :-

Our people are the source of our strength, involvement and team work shall be our core
human values. Alone are we are weak, together we are strong, we shall work together as a
team with mutual understanding, responsibility, trust, respect and sincerity.
We should always keep in mind that without harmony and co-operation even a group of
very capable individuals cannot accomplish anything of significance. Harmony and co-
operation are essential for achieving excellence in everything we do.

 FAIRNESS:-
We shall be fair and just in our dealings. This spirit will help us earn respect and build our
image in society.
13
A fair person is one who is conscientious; sincere has nothing to be ashamed of and acts
above board within public and in private.

 ADJUSTMENT & ASSIMILLATION:-

Change is constant in markets, in ideas, in people and in technology. Progress cannot be
achieved unless we adjust to ever changing conditions around us. As the world moves
forward we must assimilate, be decisive and adapt quickly to keep pace with changing
environment. For we have to keep in close with changing social conditions, government
policies, public trends and demands to help us improve all aspects of our management.
We must always strive for new and better ways to make continuous improvements for
advancement of the company.

CUSTOMER FOCUS:

Our prime responsibility is towards our customers and all others who are impacted by our
products and services. We shall focus on energies constantly in understanding,
anticipating and meeting customer’s demand. We shall consistently provide quality
products of good value to their satisfaction and earn their respect.
To satisfy our external customers, it is imperative that everyone must work towards
meeting the requirements of internal customers.

MANUFACTURING PROCESS
Katha and Cutch are obtained from aqueous extract of the heart wood of Khair tree
(Acacia Catechu). Katha is the main product and cutch is the byproduct of the industry.

Following are the different stages of manufacturing process:

1. DEBARKING & DESAPPING-

14
Khair wood is debarked and desapped to recover heart wood only, which contains
Katha and Cutch. This is done manually with the help of axe, etc.

2. CHIPPING-
Stripped Khair wood logs are directly fed into the Chipping Machines and converted
into small chips of about 1”*1/4 size.

3. EXTRACTION-
Small chips are filled in Autoclaves and extracted with water at high temperature for
desired time and thin extract thus obtained is collected in Mother Liquor tank, this
liquor contains both Katha and Cutch as extractives.

4. CONCENTRATION-
Thin Mother Liquor is passed through triple effect evaporators and concentrated to
make thick liquor. The cooling water used in the Barometric condenser of this
evaporator is partly used in Autoclaves as hot water and rest of the water is sent in a
Cooling Tower for cooling and recycled back to the Barometric condenser.

5. BLENDING TANK-
Thick Liquor is stored in tanks for 2 days for cooling before filling in cold chambers.
Thus the discharge of water as effluent is totally eliminated from this section. The
Cooling tower is in operation from 02.04.2005.
6. CRYSTALLSATION-
Thick Mother Liquor thus obtained, is transferred to cooling chambers, filled in
Aluminum containers and crystallized for about 15 days. Katha being of crystalline
nature crystallizes under cold conditions.

7. FILTRATION-
Wet Katha crystals and cutch liquor are separated by filtering the crystallized slurry
through though the plate vacuum filters and kept for 24 hrs. In desired condition.

15
 8. HYDRAULIC PRESSING–
Wet Katha plate obtained from vacuum filter is further pressed in hydraulic presses
to remove more cutch for more purity in Katha.

9. CUTTING-
Wet Katha plates obtained from hydraulic press is cut into tablets of 2”*2” size with
the help of cutting machines and placed on trays, fitted in palates.

10. KATHA DRYING-

Pallets of wet Katha tablets are placed in de-humidification tunnel and drying is
carried out at low temperature to check color deterioration due to oxidation. It
takes about 15 to 18 days to complete the drying of Katha in tunnels.
(Vertical drying- 6 days, Horizontal drying-10 days, Ambient- 2 days)

11. CUTCH LIQUOR CONCENTRATION-

Cutch filtrates obtained from Vacuum filter and hydraulic press is concentrated
directly in the finisher, from which it comes out in semi solid form. It is collected in
wooden cases and dried product is obtained on cooling at ambient temperature.
In the modified process, we have economized on the use of water in plate making,
filtration, vacuum filter and hydraulic pressing areas. This has led to increase in the
concentration of cutch obtained from these areas.
The cutch so obtained does not need to be passed through the 2nd triple effect
evaporator of our plant (as used to be done earlier) and can be directly fed to the
finisher.
Thus one step of the process has been eliminated. The resultant use of raw water in
2nd triple effect evaporator has also been eliminated.

12. PACKING-
Dry Katha packed has in 1 kg. Cartons/20 kg. In a Wooden Case and packed as 50
Kg. /25 kg. Per case as desired.

16
 THE
ORGANISATION
17
CHART

18
19
 EMPLOYEES & THEIR CATEGORISATION

 WORK FORCE:-

TOTAL WORKERS 229

HIGHLY SKILLED WORKERS 25

SKILLED 40

SEMI- SKILLED 60

SUPERVISORS 12

CLERKS 12

CHEMISTS 06

OTHER WORKERS 74

 OFFICERS:-

TOTAL OFFICERS 50

HEAD OF DEPARTMENTS 06

MANAGERS 08

ASSISTANT/DEPUTY 10
MANAGERS
SENIOR OFFICERS 12

OFFICERS 14

 MANAGEMENT:-

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 POST NAMES

EXECUTIVE DIRECTOR SHRI K.K. DAMANI

AGM- FINANCE R.K. AGARWAL

SENIOR MANAGER (Q.C.) N.H. AGARWAL

SENIOR MANAGER (P&A) C.S. SHARMA

SENIOR COMMERCIAL MANAGER RAVI CHANDAK

MANAGER (PROJECTS & A.K. AGARWAL

MAINTENANCE)

COMPENSATION & BENEFITS

WAGES:

21
Wages means the payment is made by an employer to his workers or employees as
remuneration of their work that they have rendered for the employer. This remuneration
may be weekly, fortnightly or monthly. Thus, wage means any amount given by employer
to his employees for their services.
“Wages are the sum of money paid under contract by an employer to a worker for
the services rendered.”- Benham

TYPES OF WAGES

 LIVING WAGES:

Living wages means the wages that may be sufficient to provide for the bare necessities
as well as certain amenities for the employee. It means wages may be sufficient to
provide for the bare necessities and such amenities that are considered necessary for
the well-being of the employee and his family members in accordance with his social
status.

Article 43 of the Constitution of India states that, “The state shall endeavor to secure by
suitable legislation or economic organization or in other way to all workers,
agricultural, industrial work, a living wage, conditions of work ensuring decent
standard of life and full enjoyment of leisure and social and cultural opportunities.”

 MINIMUM WAGES:

According to Fair Wages Committee, “Minimum Wages should provide not only for the
bare necessities of a worker. It should also provide for the maintenance of efficiency of
a worker. From this point of view, minimum wages must be sufficient to provide for all
requirements of education, health and other essential ‘amenities’.”

 FAIR WAGES:

“Rate of wages in a particular industry can be regarded as fair wages only when it is
almost equal to the wages which is paid in other industries for the works which are of

22
 the same caliber and equally and require almost equal efficiency and training.”- Prof.
Marshall.

Fair wages is the amount of wages that may provide the basic needs and amenities to
the workers according to the social status.

DIFFERENT METHODS OF REMUNERATING LABOUR

 TIME RATE SYSTEM:-

Under this method, the workers are paid the wages on the basis of time: per hour, per
day, per week, per fort night or per month, etc. this system does not consider the
production of the employees during this time. The amount of wages under this system
is calculated as given below:

Wages = Time Spent By The Worker * Rate Of Wage According To Time

 PIECE RATE SYSTEM:-

Under this system of wage payment, the workers are paid the wages on the basis of
quantity and quality of work performed by them. Under this system, the rates of wages
are determined according to quality and quantity of work and the workers are paid
according to these rates. The amount of wages paid to a worker under this system is
calculated as under:-

Wages = Units Of Production * Rate Per Unit

 In IWP CO. Ltd. The method used in remunerating labor is basically “Time Rate
System”. But in Contract based working it may adopts “Piece Rate System” for same
purpose.

ALLOWANCES:
23
An Allowance is money that is given to employees and workers usually on a regular basis,
in order to help them pay for the things that they need.

ALLOWACES IN IWP CO. LIMITED

 BASIC SALARY/WAGES:-
This is the basic amount paid to the workers/employees by the employer for the
services rendered from them.

 DEARNESS ALLOWANCE (D.A.):-

It is the amount of money given to the workers/employees for their survival in this
inflationary world i.e. increasing prices of necessities and amenities.

 HOUSE RENT ALLOWANCE (H.R.A.):-

The amount of money provided to every workers/employees for their house rent.

 CONVEYENCE ALLOWANCE:-
The amount of money provided to every workers/employees for their conveyance to
the industrial concern.

 TRANSPORT ALLOWANCE:-
The amount of money provided to every workers/employees for their transportation to
the industrial concern.

 EDUCATION ALLOWANCE:-
The amount of money provided to every workers/employees for the education of their
children.

 ENTERTAINMENT ALLOWANCE:-

24
 The amount of money provided to every employee for their entertainment like
newspapers, magazines, etc.

 UNIFORM ALLOWANCE:-
The amount of money provided to every workers for their which they wore at industrial
concern for working hours.

FRINGE BENEFITS:
“The fringe benefits are the services, facilities and comforts available within and
nearby the enterprise so that the employees working in the enterprise may work in
healthy and peaceful circumstances and take advantage of these facilities to
improve the level of their health and moral.”- International Labor Organization.

FRINGE BENEFITS IN IWP CO. LIMITED

 LEAVE TRAVEL ASSISTANCE (L.T.A.):-
The travelling assistance is also provided to the employees on leaves, this amount is
provided to them at each alternative year.

 MEDICAL ASSISTANCE:-
The amount of money which is provided as medical, on any accidental or incidental
casualty. In IWP it is provided as the amount maximum up to Rs. 15000.

 EX-GRATIA:-
An ex-gratia payment is given to employees/workers as a favor or gift. In IWP it is given
as lump-sum amount, near about Basic + D.A. & provided annually.

STATUTORY BENEFITS IN IWP CO. LIMITED

25
These benefits are provided by the employer to his employees with the statutory
obligations.

 BONUS:-

In IWP the Bonus is provided to workers and employees as per Bonus Act, 1966. The
important provisions of Bonus Act followed by IWP are as follows:

o Bonus provided between 8.33% to 20% on Profitability of the concern.

o Bonus must be paid compulsorily whether it is in profit or loss.

o This act does not apply on the employees who are getting basic pay of 3,500 per
month or more.

SOME OTHER ANNUAL BENEFITS IN IWP CO. LIMITED

o 2 Sets of uniform to workers.

o 1 set of woolen uniform to workers.

o 1 Raincoat is provided to workers one’s in two years.

o 1 cap for workers who works in chiller areas.

WELFARE FACILITIES IN IWP CO. LIMITED

o Toilets.

o Drinking water.

o Canteen.

o Rest/Waiting Room.

o Dispensary (Equipped with Doctors).

26
 SOME OTHER SOCIAL SECURITY BENEFITS IN IWP
CO. LIMITED
o PROVIDEND FUND:-

The Provident Fund is deducted on Basic pay + D.A. It is 12% for employer and
employees both.

o GRATUITY: -

The Gratuity is provided as per government provisions.

o EMLOYEE STATE INSUARANCE (E.S.I.):-

The employee state insurance is undertaken in the company from February, 2011
and the challan is submitted by computer programmed methodology and it is
mandatory. This challan report is sent after 6 month under Form (6) of Employee
State Insurance Corporation. The E.S.I. is exempt above Rs. 15000 Gross Salary.

E.S.I. Contribution
Employee’s Contribution 1.75%
Employer’s Contribution 4.75%

FACILITIES PROVIDED TO OFFICERS IN IWP CO. LIMITED

27
o HOUSING (FURNISHED ACCOMODATION):-

The housing facilities are provided to the officers of the company. These housing
facilities are provided with furnished accommodation.

o COMPANY CONVEYENCE:-

The conveyance facilities are also provided to the officers by their expense of the
company.

o FREE ELECTRICITY:-

Free electricity is provided with the housing facility to the officers.

o CLUB MEMBERSHIP:-

The club membership like Rotary club is provided to each officer on their wish.

o LEAVE ASSISTANCE:-
The leave assistance in the company for 365 days or 1 year is as follow:

No. OF DAYS TYPE OF LEAVE

28
 7 Casual Leave
15 Medical Leave
25 Earned Leave

INCENTIVES:

Incentives are the stimulus that motivates the workers to produce to the best of their
capacity, of best quality and minimum cost. Incentives play an important role in affecting
the efficiency of workers and hence results in an increase in productivity.

“Incentive means that which incites or has tendency to incite action.”- George R. Terry.

INCENTIVE PLAN IN IWP CO. LIMITED

In IWP, Incentives are provided on surplus production about 2% to 3% of their

Basic Wages.

(P.T.O)

The Incentive Plan in IWP is designed and developed by IWP itself.

INCENTIVE PLAN
29
 TIME WAGE WAGE INCENTIVE PLAN

INDIVIDUAL INCENTIVES GROUP INCENTIVES

MANUAL WORK (DIRECT PRODUCTION)

BATCH VACUUM PLATE HYDROLIC CUTTING PACKAGING

MAKING FILTER MAKING PRESSURE
AUTOMATION
(MANUFACTURING/PRODUCTION)

BOILER AUTO-CLAVE WOODEN AMMONIA MAINTENANCE

WET

PRODUCTION CLERKS CHEMISTS

SUPERVISOR

INCENTIVES SCHEME IN IWP CO. LIMITED

According to Uttar Pradesh Vivad Adhiniyam1947, (Section4-F) & Rule 5(1):

30
In Indian Woods Product Co. Ltd. as per date 12.06.2009 following are the details of
Incentive Agreement between The Indian Woods Product Co. Ltd and workers Trade
Union:-

This agreement was undertaken at factory concern on 25.10.2008 by the discussions and
collective bargaining. For this purpose the discussions were made between both of them in
many schedules.

On such date in factory there was a production of 1890 kg.(4000) Boxes katha with
Incentive was made with the help of 205 Permanent Workers and 24 Casual Workers
(on day to day basis) working on 6 cutting machines. The Top Management had given a
proposal to increase the production from 4000 Boxes to 5000 Boxes katha. For this
proposal the workers union argued that with the present workforce and only 6 cutting
machines the production of 5000 Boxes katha is not possible. Hence after the discussion it
was decided that for increasing the production from 4000 Boxes to 5000 Boxes there
would be installed 1 more cutting machine also with the additional workforce of 24
workers.

It was also decided that in factory there not be made any changes in incentive scheme but
as per the requirements would occur the scheme would be expanded in the same ratio.

 CONDITIONS OF AGREEMENT:-

 Both the parties were agreed upon the condition that the production would
increased from 4000 Boxes to 5000 Boxes with incentive, for this there would be
installed one (7th) additional katha cutting machine.

31
 Also there would be provided 24 additional workers for increasing the production.

 These increased labor and 1 additional katha machine would used only for
increasing the production from 4000 Boxes to 5000 Boxes.

 The parties were also agreed upon that with the installation of 7 th machine, the
additional workers will allocated in various departments of production like batch
making, katha cutting, etc as per the requirement felt.

 The parties were also agreed upon that the incentives would be provided on the
Base Production as per the past trend in the factory i.e. on 1380 kg katha per shift
and there would not be made any changes or modification in the incentive scheme.
For the increased production of 1890 kg katha the same incentive scheme will be
enhanced in the same ratio. (As Per Attachment A.)

 The parties were also agreed upon that as in past the casual workers were provided
Rs.10/- per day as incentive this practice would be discontinued and for
encouraging these workers, they would be provided more profitable and new
incentive schedule. (As Per Attachment B.)

 The parties were also agreed upon that if the production would increased to 5000
peti katha (with incentive) per month and the production gets stabilizes then the
management would make 21 casual workers as permanent and in the factory, the
Boiler Attendant(1) and other 2 required job workers were also appointed as
permanent workers. But by making these workers as permanent the number of
casual workers would not be reduced. In this way, the number of total permanent
workers in the factory would be increased from 205 to 229.

32
 The Probation Period of the casual to the permanent workers will be 1 year as per
the rule. The worker who works effectively in that probation period only those
workers would be made permanent.

 The parties were agreed upon that if the incentive scheme would be discontinued,
the workers who would make casual to permanent they would remain in factory as
other permanent workers.

 Hence now there is no confusion or any misconception between the Trade Union
and Management related to Incentive Scheme and Casual Workers. With these
conditions the agreement became finalized on 25.10.2008.

This Agreement came into force on 12.06.2009.

PARTIES IN AGREEMENT
 MANAGEMENT:-
1) Mr. Krishna Kumar Damani (Executive Director)
2) Mr. C.S. Sharma (Manager P&A)

 WORKERS REPRESENTATIVES:-
1) Mr. Jagdish Chand Sharma (Dist. President- BMS)
2) Mr. Mohd. Saleem (Vice President)
3) Mr. Mahendra Pal (Secretary)
4) Mr. Budhraj Pandey ( Jt. Secretary)
5) Mr. Mohan Ram (Treasurer)
ATTACHMENT
(1)
 WORKLOAD / INCENTIVE:-

The parties were agreed that following would be the incentive scheme for the
production of 1380 kg weight katha cake (without side cutting):

33
Production In Category- A (In Category- B (In
kg/shift Rs.) Rs.)

1380 0 0
1410 125 100
1440 250 200
1470 375 300
1500 500 400
1530 625 500
1560 750 600
1590 875 700
1620 1000 800
1650 1125 900
1680 1250 1000
1710 1375 1100
1740 1500 1200
1770 1675 1300
1800 1750 1400
1830 1875 1500
1860 2000 1600
1890 2125 1700
1920 2250 1800
1950 2375 1900
1980 2500 2000
2010 2625 2100
2140 2750 2200
2170 2875 2300
2100 3000 2400
2130 3125 2500
2160 3250 2600
2190 3375 2700
2220 3500 2800
2250 3625 2900
2280 3750 3000
2310 3875 3100
2340 4000 3200
2370 4125 3300
2400 4250 3400
2430 4375 3500
2460 4500 3600
2490 4625 3700
34
 2520 4750 3800
2550 4875 3900
2580 5000 4000
2610 5125 4100
2640 5250 4200
2670 5375 4300
2700 5500 4400
2730 5625 4500
2760 5750 4600
2790 5875 4700
2820 6000 4800
2850 6125 4900
2880 6250 5000
2910 6375 5100
2940 6500 5200
2970 6625 5300
3000 6750 5400

The amount of Side Cutting is also included in rates of incentive given in above table.

ATTACHMENT
(2)
 NEW INCENTIVES FOR CASUALS:-
Production In Incentive in Rs.
kg/shift
1380 0
1410 30
1440 60
1470 90
1500 120
35
1530 150
1560 180
1590 210
1620 240
1650 270
1680 300
1710 330
1740 360
1770 390
1800 420
1830 450
1860 480
1890 510
1920 540
1950 570
1980 600
2010 630
2140 660
2170 690
2100 720
2130 750
2160 780
2190 810
2220 840
2250 870
2280 900
2310 930
2340 960
2370 990
2400 1020
2430 1050
2460 1080
2490 1110
2520 1140
2550 1170
2580 1200
2610 1230
2640 1260
2670 1290
2700 1320
2730 1350

36
 2760 1380
2790 1410
2820 1440
2850 1470
2880 1500
2910 1530
2940 1560
2970 1590
3000 1620

This scheme of incentive payment is open till the production of 3000 kg (weight katha
cake) per shift per month.

OBJECTIVE OF THE REPORT

 To study the Compensation and Benefits Scheme in IWP Co. Ltd.

 To study the Basis on which the Wages and Incentives are provided to
workers.

 To study Welfare and Other Facilities provided to workers.

37
 RESEARCH METHODOLOGY

 MEANING OF RESEARCH

Research in common paralance refers to a search for knowledge. It is a careful

investigation or inquiry specially, through search for new facts in any branch of
knowledge. In other words, research comprises defining and redefining problems,
formulating hypothesis or suggested solutions; collecting, organizing and evaluating data;
making deductions and reaching conclusions; and at last carefully testing the conclusions
to determine whether they fit the formulating hypothesis.

 TYPES OF RESEARCH:

The basic types of research are as follows:

 BASIC RESEARCH: - Basic Research is that intended to expand the body of

knowledge in a field or to provide knowledge for others.

38
  APPLIED RESEARCH: - Applied Research is carried out for solving of a
particular problem or for guiding a specific decision and usually its results are
private.

“Basic Research is generally for common purpose and Applied Research is for
specific purpose.”

Here the research is basic. The sources of data collection are both Primary and
Secondary data.

 OTHER TYPES OF RESEARCH:- All other type of research are variation of one
or other of the above stated approaches, based on either the purpose of research, or
the time required to accomplish research, on the environment in which research is
done, or on the basis of some other similar factor.

On the basis of time: one time research or longitudinal research; in the former case the
research is confined to single time period, whereas in the latter case the research is
carried on over several time periods.

On the basis of environment: research can be field setting research or laboratory

research or simulation research.

 RESEARCH DESIGN:

The research design is the plan, structure and strategy of investigation conceived so as to

obtain answer to research questions and to control variance.

The definition of the three important terms– Plan, Structure and Strategy are:

 The Plan is an outline of the research scheme on which the researcher is to work.

39
  The Structure of the research is a more specific outline or the scheme.

 The Strategy shows how the Research will be carried out, specifying the methods to

be used in collection and analysis of data.

Research design is the specification of methods and the procedure from acquiring the

information needed. It is the operational pattern or framework of the projects that

stipulate what information is to be collected from which sources by the procedures. The

importance of research design lies in the fact that it makes a statement of what is to

be done in order to achieve the research objectives and how it is to be done. It is an

expression of what of the research exercise in terms of results and the analytical input

needed to convert data into research findings.

A design may be quite suitable in one case but could not fit in some other research

problem. One design cannot serve the purpose of all types of research problems. Also most

of the research problems are complex in nature and cannot be solved by a specific

research design. Hence a combination of research design is used to reach a solution.

The research design when chosen correctly prevents deviation in the study. The present

study is the cross sectional descriptive type with fields study and partly casual in nature as

it seeks to find out consumer behavior with respect to mobile and correlate them with

income, age, education, professions etc. and formulate marketing strategies based on the

study.

 SAMPLING & SAMPLE DESIGN:

40
It is not possible to examine every item in the population hence interferences is drawn

about a large numbers of items possessing a particular attribute based on based analysis

of fraction of such items. It is called a Sample. For developing a sampler design following

points need to be discussed with regard to the present study –

A. POPULATION: In statistical usage the terms population is applied to any finite

collection of individuals. It has displaced the orders terms universe. It is aggregate of

all elements possessing certain specified characteristics which need to studied and

defined prior to sample. Population can be finite if units can be counted or infinite.

Since the present study is done in Bareilly, The population is finite.

Population can be defined in terms of Elements, Sampling Units, Extent and

Time.
In this study, the specifications will be as follows:
1. Element : Workers
2. Sampling Units : No
3. Extent : IWP Factory

B. ELEMENT: An Element is the unit about which information is collected. It provides

the basis for analysis. It identifiable physically. In the present study the element is

workers having a good knowledge about the compensation and benefits scheme in

IWP.

C. SAMPLING UNIT: The sampling unit is the basic unit containing the element of

the target population. The sampling may be different from the element. It can be
41
 either geographical unit (state, district etc.) or social unit (Household, family, club

etc.) or a construction unit (enclave, house, flat etc.) or it may be an individual. In the

present stuffy, a sample of distributor is selected in the three stages. First of all a

sample of cities is selected, than a sample of colonies is selected from each selected

colony after the entire distributor in it.

D. SAMPLE FRAME: A sample frame could be a telephone directory, a list of block

and localities of a city, a map or any other list consisting of all the sampling units,

each stage of sampling process requires its own sampling frame. Since the present

study undergoes two stages sampling process, we would need two sampling frames.

First a list of localities, Second a list of distributors within the selected localities.

E. SAMPLING DESIGN: Representation of entire universe is only possible through

the sampling technique. Considerable care has been taken in selecting the sample.

F. Convenient in terms of size and enough to represent the entire universe.

G. SURVEY METHOD: I have chosen the Personal Survey Techniques.

I have chosen workers in factory concern to intercept survey.

42
H. QUESTIONNAIRE DEVELOPMENT: First of all I have given the introduction of

myself and the reasons why I am collecting data. Then I have given assurance that

their information will be kept confidential. I have gone for screening and then I have

prepared the body of questionnaire. Lastly, I make respondents profiles.

Questionnaires have been Structured Questionnaire based on non comparative

scales techniques.

 SAMPLING TECHNIQUE:

In case of my research my target population has been the workers in IWP Factory,
Bareilly. I have conducted my research through Non-Probability Techniques and
among non-probability sampling technique I have gone for Convenience Sampling
Technique. Most importantly, as it is an academic research it lacks money and time.
That’s why for administering the research, the sample size has 35 workers. Then I
have carried out my research by myself very efficiently and accurately to come to an
end with solutions of the problem statement.
Field work is general descriptive term for the collection of raw data. In the
professional research, research firm use its own people or external people to collect
data for sample. Since it is an academic and individual research I myself have to go
and collect data from the respondents.

 Sample Size:

For study I surveyed 40 workers of the factory concern.

 TOOLS AND TECHNIQUES:

43
Tools and techniques used in the IWP CO. Ltd were mainly personal interviews of
the HR Executive or Managers and the persons involved in the Wages & Salary
Distribution. And getting filled some questionnaire by the workers. In order to know
the exact process and the details of the sources used in compensation and benefits
distributions.

TOOLS AND TECHNIQUES USED

DATA COLLECTION

PRIMARY DATA

_____________________________________________

PERSONAL INTERVIEW QUESTIONAIRE

SECONDARY DATA

___________________________________________

LITERATURES CO.WEBSITES

SAMPLING

CONVENIENT SAMPLING

44
 SUMMARY OF RESEARCH DESIGN

Data source : Primary Data and Secondary Data

Research approach : Survey Method

Research instrument : Questionnaire

Sampling Plan : Sample Unit (Workers in IWP Factory)

Sample size : 40 Workers

Time : July-August 2011

Sample Area : IWP Factory Concern

Contact Method : Personal contact

45
 DATA ANALYSIS
&
INTERETATION

1. Are you satisfied with the Working conditions of the Factory concern?

46
 25%

YES
75% NO

 INTERPRETATION:
25% (10) workers are satisfied with the Working conditions of the Factory
concern.

2. Do you think that the Trade Union can properly bargain your problem with the
higher authority?

47
  INTERPRETATION:
70% (28) workers think that the Trade Union can properly bargain their
problem with the higher authority.

3. Are you satisfied with the Incentive Scheme of the concern?

48
  INTERPRETATION:
70% (28) workers are satisfied with the Incentive Scheme of the concern.

3. Are satisfied with the Welfare Facilities provided to you?

49
  INTERPRETATION:
40% (16) workers are satisfied with the welfare facilities provided to them.

4. Do you think that the Medical Benefits provided to workers are satisfactory?

50

INTERPRETATION:
65% (26) of workers are satisfied with the Medical Benefits provided to them.

5. Are you satisfied with the LTA Scheme?

51
  INTERPRETATION:
80% (32) Workers are satisfied with the LTA Scheme provided to them.

6. Are you satisfied with the Promotion Scheme?

52
  INTERPRETATION:
65% (26) of the workers are satisfied with the promotion scheme.

7. Are you satisfied with your Present Personal Salary Structure?

53
  INTERPRETATION:
75% (30) workers are satisfied with their Present Personal Salary Structure.

8. Do you think that you are considered as the Asset of the organization?

54
  INTERPRETATION:

60% (24) workers say that they are considered as Asset of the organization.

FINDINGS

After the survey we found,

 Welfare Scheme is Satisfactory.

 There is no Scheme related to Entertainment.
 No Education Scheme for Workers.

55
 Incentive Scheme should be improved.
 Cold water (Drinking) may sometimes not available.
 Maintenance required in Shelter/Rest room.
 Conveyance facility should be improved.
 Dispensary and Ambulance Facility is not available.
 Maintenance required in the Canteen.

RECOMMENDATIONS & SUGGESTIONS

 The company should provide Ambulance Facility in the factory for the workers for

overcoming the emergency situations.

 The company should provide Maintained Shelter room in factory concern for

workers to take rest in break time.

 The company should provide the Entertainment Allowance to the workers.
 The company should provide Education Allowance to workers for their Children.
 The company should maintain the Infrastructure of the factory concern.

CONCLUSION

56
The Indian Woods Products Co. Limited is the company which has the good choice of

compensation and benefits provisions for distribution to their workers and employees. As

per my research, it shows that the company has the flexible environment where all the

employees are free to do work in an efficient manner to fulfill the motto and is to complete

the work having good quality.

Various aspects of compensation and benefits scheme are studied. For conducting this

scheme an interview of workers in the factory was conducted with the help of a structured

Questionnaire.

Thus we can conclude that, there should be required an improvement in the welfare

facilities for workers like the infrastructure of the factory concern, canteen, shelter room,

etc. There should also be required improvement in incentive scheme because they are

provided on the productivity basis, it should be improved from productivity to

Productivity + Time basis.

Hence, the report represents that how the distribution of incentives, compensations,

allowances, benefits and facilities are done and the various procedures and techniques

used for their evaluation in IWP Co. Ltd.

LIMITATION OF THE PROJECT REPORT

 The sample was collected using Convenience Sampling techniques. As such result
may not give an exact representation of the population.
57
  Shortage of time is also the reason for comprehensiveness of the report.

 The views of workers in the factory are biased therefore it doesn’t reflect the true
picture.

BIBLIOGRAPHY

I have used the following source for finding the data-

1) Human Resource Management by Archana Deshpande, Bajaj Duggal & H.

Sharma

2) Research methodology by C.R. Kothari.

3) IWP Annual Journal.

4) www.google.co.in
58
 5) www.iwpkatha.com

6) www.hprofessor.com

7) www.managementparadise.com

APPENDIX
(1)
QUESTIONNAIRE
1. Are you satisfied with the working conditions of the Factory concern?
YES [ ] NO [ ]

2. Do you think that the Trade Union can properly Bargain your problem with the higher
authority?

YES [ ] NO [ ]

3. Are you satisfied with the Incentive Scheme of the concern?

YES [ ] NO [ ]

4. Are satisfied with the Welfare Facilities provided to you?

YES [ ] NO [ ]

5. What type of Welfare Facility should also be provided in the Factory (Be Specific)?

___________________________________________________________________________________________

6. Do you think that the Medical Benefits provided to workers are satisfactory?
59
 YES [ ] NO [ ]

7. Is any Pension Plans are designed to be provided to workers after their retirement?

YES [ ] NO [ ]

8. Are you satisfied with the LTA Scheme?

YES [ ] NO [ ]

9. Have you been provided the proper for Winter Season?

YES [ ] NO [ ]

10. Do you get your Salary on time?

YES [ ] NO [ ]

11. Are you satisfied with the Promotion Scheme?

YES [ ] NO [ ]

12. Is any Entertainment Facility provided to Workers?

YES [ ] NO [ ]

13. Is any Education Allowance provided to Workers?

YES [ ] NO [ ]

14. Are you satisfied with your Present Personal Salary Structure?

YES [ ] NO [ ]

15. Do you think that you are considered as the Asset of the organization?

YES [ ] NO [ ]

Suggestion (If any):

_______________________________________________________________________________________

_______________________________________________________________________________________

60
PERSONAL PROFILE:

Name : ___________________________________________

Designation : ___________________________________________

Department : ___________________________________________

Token Number : ___________________________________________

Age : ___________________________________________

Education :

High School [ ] Intermediate [ ]

Under 10th [ ] Illiterate [ ]

APPENDIX
(2)
INCENTIVE SCHEME IN IWP (XEROX)

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64
65
66
67
68
69
70
THANK
YOU

71