HUMAN RESOURCES DEPARTMENT

INTRODUCTION

ABOUT THE PROJECT

The project work has been undertaken as a summer project while doing the three years course of Bachelor of Business Administration from Sikkim Manipal Institute of Technology.

Mount Distilleries Ltd., Majitar, Rangpo, was selected for carrying out the project in three topics Study of Recruitment process, and Compensation benefits.

The reason behind selecting this topic is that in todays world that company has gained tremendous importance in recruitment process, and compensation benefits.

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INTRODUCTION OF COMPANY :

MOUNT DISTILLERIES LIMITED MAJITAR : RANGPO :

EAST SIKKIM

COMPANY PROFILE

Mount Distilleries company is encouraged by the Industries incentives provided by the government of Sikkim to generate more revenue and employment to the local people Sikkim. Mount Distilleries Limited , a new company in the state was entered into a technical collaboration with Mohan Meakin Limited , a leading name in the Liquor Industries of India , to provide quality products at very reasonable price for sikkimese people . Since the date of introducing Mounts products in the liquor market of Sikkim the prices of all liquor made in this state has substantially gone down and the civil consumers as well as the defence & paramilitary forces in Sikkim got unlimited relief of the monopolistic liquor trade. Mounts main aims are to generate more revenue and employment in the state by expanding the production capacity of plant and taken a strategy to export its products to other states too. With a view to achieve this goal, Mount had entered into another collaboration with seagram Manufacturing Limited in the year 2003-04 to 2005-06, and started to produce its most popular brands like Imperial Blue Whisky and Royal Stag Whisky. Again in 2006, Mount has tied up with M/s V.M. Agrosoft Wines, Maharashtra and started to produce its premier brand (Red/White) wines like Sailo Rio, Etu Brutus and Mark Antony w.e.f. 28th January 2006. Mounts first effort to introduce such premier quality wines in Sikkims market flourished substantially by increasing its sales fr om 500 cases to 10000 cases per annum which also enhanced the growth of revenue to the Govt. Of Sikkim. After opening of a new unit of Seagram Manufacturing Limited in west Bengal, our sales to west Bengal and Neighboring states stopped from Sikkim due to heavy import duty, CST factor and expensive overheads. However, Mount has been successful to tie up with Indias famous liquor manufacturing company viz. United Spirit Limited, Bangalore since April 2007. Mount has been annually generating substantial revenue to the state Government and committed to increase the same in the current financial year too.

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DATE OF INAUGURATION DATE OF COMMERCIAL PRODUCTION NAME OF THE BRANDS PRODUCED 1. RUM
Old Monk XXX Rum Celebration XXX Rum Sikkim Millennium XXX Rum & Nathula Sikkim XXX Rum Honey Bee Brandy Golden Dragon Brandy Sikkim Melon Brandy & Royal Star Brandy. Mc Dowells Reserve Whisky Bagpiper Delux Whisky Knight Rider Whiskey & Black Knight Whisky. Big Ben London Gin & Blue Riband Gin. Sailo Rio, Etu Brutus & Mark Antony. Premium Romanov Vodka & White Mischief Vodka. Miniature Pack of 11 Products & Thunder Xtra Stong etc : 29th December 1998 : 8th March 1999

2. BRANDY

3. WHISKY

4. GIN

5. WINE

6. VODKA

7. OTHERS

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NEW PRODUCTS :

Mount is ready to launch its new products viz. Red Panda XXX Rum, Sikkim No. 1 Whisky , Eastern Star Brandy and other products for which Research & Development is going on.

PRODUCTION CAPACITY PER ANNUM

Three Lac cases per annum

EMPLOYMENT STRENGTH

Manager , Office & Staff - 24 members Workers - 70 members as per minimum wages POSITION Managing Director Director Director act of govt. Of Sikkim. ADDRESS Gangtok Mamring South Sikkim Gangtok

NAME OF DIRECTORS 1. Mr. R.K Mittal 2. Mr. Subhas Kharel 3. Mr. Sanjay Mittal

Executive
NAME Mr. D.K Rai Mr. K. Bimali

staff members :
DESIGNATION Manager Finance Manager Technical Manager Marketing Personnel Officer

Mr. G.S Sharma Mr. K. Subba

LOCATION OF FACTORY : 31/A, National Highway

Mazitar, Rangpo, E. Sikkim

PHONE NOS. FAX NO. E-MAIL REGISTERED OFFICE

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246031, 246372 246090 mdlfact@yahoo.co.in Palzor Stadium Road Gangtok East Sikkim
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OBJECTIVES OF THE MOUNT DISTILLERIES

To earn maximum profit Generation of revenue from govt. Of Sikkim Employment generation in the state by expanding the production capacity of plant and taken a strategy to export its products to other states too. To provide quality products at very reasonable price for sikkimese people . To introduce such premier quality wines in Sikkims market flourished substantially by increasing its sales from 500 cases to 10000 cases per annum To be highly experienced and passionate management team.

Mount distilleries limited company promoted by industry stalwart Mr. R.K Mittal. Acclaimed as a veteran in the liquor industry in Sikkim, has been spearheading the business for 12 years . Leveraging on his expertise and leadership, they had successfully added an array of premier brands of Indian made foreign liquor to our credit. Mount distilleries company is highly experienced and passionate management team ensures that we keep pace with the changing business dynamics and sharp competition . which is why , it has strategically located our sales offices in all main towns of Sikkim. Today , they are proud to be associated with some of the most popular brands in the country and are poised to become the most admired liquor company.

AIM / MISSION AND VISION OF THE MOUNT DISTILLERIES

To be most admired Liquor Company. To provide consumers the quality and unique proposition of the brands. Regulators for operating within the framework of law and timely paying our dues to the exchequer Providing opportunities for growth, well being, and enrichment Employees for our work ethics, environment and the opportunities for growth and learning Developing and inspiring the company capital

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SWOT ANALYSIS OF THE MOUNT DISTILLERIES
The internal environment - the situation inside the company or organization

STRENGTH
Better product life and durability Direct delivery capability Right product , quality , and reliability

WEAKNESS
Limited budget Need more sales person No direct marketing experience Cannot supply end- users abroad

OPPORTUNITIES
Could develop new products Profit margins will be good Technology development and innovation

THREATS
Legislation could impact Environmental effects would favour larger competitors

OWNERSHIP

PVT. LTD COMPANY (shares)

HEADQUARTERS

GANGTOK EAST SIKKIM

DEBT

PROMOTION CONTRIBUTION AND LOANS FROM BANKS / FINANCIAL INSTITUTION

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DESCRIPTION OF PRODUCT INDIA MADE FOREIGN LIQUOR (IMFL) :

COMPARATIVE ANALYSIS SIMILAR PRODUCT

LICENSING AGREEMENT

COLLABRATOR, TECHNICAL COLLABRATION WITH MML AND USL

PACKAGING AND LABELLING

SEMI AUTOMATIC (BOTH MAN AND MACHINE)

PROMOTIONAL MIX

IT IS DONE THROUGH BRAND NAME

SALES MARKET

SALES MARKET DONE ALL OVER STATE LIKE(GANGTOK, JORETHANG, MELLI AND ALL OVER DISTURBER)
MANUFACTURER DISTRIBUTER SALES

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MOUNT DISTILLERIES LTD. MAZITAR, RANGPO, EAST SIKKIM FLOW CHART OF DEPARTMENTAL HIERARCHY
MANAGING DIRECTOR

EXECUTIVE DIRECTOR

OTHERS DIRECTORS

MANAGER FINANCE & ADMINISTRATIVE

MANAGER PRODUCTION AND TECHNICAL

HR MANAGER

MANAGER MARKETING & SALES

PERSONNEL & SECURITY STAFF

ACCOUNTANTS & STORE KEEPER

SUPERVISORS & MACHINE OPERATORS

SALES EXECUTIVES

SALESMAN

WORKERS

ASSITANCE MANAGER

HELPERS

WORKERS

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MOUNT DISTILLERIES LTD. MAZITAR, RANGPO, EAST SIKKIM
BLENDING AND BOTTLING FLOW DIAGRAM
SPRIT TANKER

DM WATER

SPRIT STORAGE

Colour & Flavour

BLENDING TANK

FILTRATION CHAMBER BAG FILTER

HORIZONTAL PLATE FILTER

BLEND HOLDING TANK

CARTRIDGE FILTER

Wash Bottle
RINSER MACHINE

FILLING MACHINE

PRIMARY VISUAL INSPECTION CAPPING IN BOTTLE SEALING MACHINE

FINAL VISUAL INSPECTION FINISHED GOODS GODOWN Page 9 BATCH NO. PRINTING MACHINE PACKING

LABELLING MACHINE SMIT

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RESEARCH METHODOLOGY
INTRODUCTION OF RESEARCH METHODOLOGY: Research methodology is defined as a highly intellectual human activity used in the investigation of nature and matter and deals specifically with the manner in which data is collected, analyzed and interpreted. TITLE OF THE STUDY; RECRUITMENT PROCESS AND COMPENSATION BENEFITS OBJECTIVES OF THE STUDY: Every task is understood with an objective, without any objectives a task is meaningless. The main objectives for undertaking this project are: For future survival organisation need to be able to develop a wide range of diverse talent. The success of most of todays business depends more on human assets than on physical or financial assets. Hiring decisions are among the most important decisions made by managers. Without the right position, neither a company nor its unit can perform successfully. Having decided what are the various jobs vacancies need filling, what kind of jobs they are and what kind of people should fill them, managers should be aware of the sources from which personnel will find suitable applicants. There is a need of recruiting the right kind of people in the right position for the success of the organisation. The basic objectives are: To study the different methods of recruitment process To understand what all recruitment practices are being adopted so as to make organisation work well To identify the training procedures To identify the areas where there can be scope for improvement What type of workers is recruiting for the different purpose of the company Capacity of building of different workers by providing by the constant training or not To study the components of compensation package provided by the company To study the satisfaction level of the employee due to compensation package provided to them

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SCOPE OF THE STUDY: The scope of this study is to observe the recruitments adopted by the company. The scope of the study is not only getting an idea of the method in the recruitment procedure but a close look will be taken at the insight of corporate culture prevailing in the organisation To structure the recruitment process of Mount Distilleries To analyze the recruitment process of the organisation To get a close look at the various levels authority responsibility relationship prevailing in the organisation This research study will be helpful for the organisation, as one problem is known the organisation can take step to improve and increase the satisfaction level of the employee working for their organisation This study will help the organisation to come to know about whether the employees are satisfied with the present compensation package or not Through this study company would come to their compensation benefits among the employees.

LIMITATION OF THE STUDY: Time constraint is one of the limitation factors Collecting the information from executives and employees during there working hours was difficult so sometimes it was not possible to interact with them fully The analysis is done based on the response given by the executives and employees assuming that are true.

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DATA ANALYSIS: The analysis of data was done on the basic of unit, age and number of years of experience and factors SOURCES OF DATA COLLECTION FOR ME TO MAKE SUCCESSFUL PROJECT ARE: The primary data as well as secondary sources was used for collecting of data. Thus the collection of where are as follows: 1 PRIMARY DATA: Interaction with the office staff, workers, managers, field staff, and so on Interview schedule SECONDARY DATA: Books Company websites Company prospectus Internet Questionnaire

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TOPIC RECRUITMENT PROCESS OF THE MOUNT DISTILLERIES COMPANY LITERATURE :

The human being resources are the most important assets of an organisation. The success or failure of an organisation is largely dependent on the calibre of the people working therein. Without positive and creative contributions from people, organisation cannot progress and prosper. In order to achieve the goals or the activities of an organisation, therefore, we need to recruit people with requisite skills, qualification and experience. While doing so, we have to keep the present as well as the future requirements of the organisation in mind. MEANING & DEFINITION: In simple terms, recruitment is understood as the process of searching for and obtaining applicants for jobs, from whom the right people can be selected. A formal definition of recruitment is: It is a process of finding and attracting capable applicants for employment. The process begins when new recruits are sought and ends when their applicants are submitted. The result is a pool of applicants from which new employees are selected. Though, theoretically, recruitment process is said to end with the receipt of applicants, in practice the activity extends to the screening of applicants so as to eliminate those who are not qualified for the job. DEFINATION BY V S P RAO :

Recruitment is a linking function- joining together those with jobs to fill and those seeking jobs. It is a joining process in that it tries to bring together job seekers and employers with a view to encourage the former to apply for a job with the later. The basic purpose of recruiting is to develop a group of potentially qualified people. To this end, the organisation must communicate the position in such a way that job seekers respond. To be cost effective, The recruitment process should attract qualified applicants and provide enough information for unqualified persons to self respect themselves out.

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RECRUITMENT PROCESS AND SOURCES IN THE COMPANY FOR DIFFERENT WORKERS :

Recruitment process in the company was different to the workers like direct and indirect method for which the company give the sources of recruitment for the internal and external sources.

INTERNAL SOURCES

Person who are already working in an organisation constitute the internal sources. Retrenched employees, retired employees, dependents of deceased employees may also constitute the internal sources. Whenever any vacancies arise, someone from within the organisation is upgraded, transferred, promoted or even demoted.

MERITS AND DEMERITS OF INTERNAL SOURCES: MERITS

Economical: The cost of recruiting internal candidates is minimal. No expenses are incurred on advertising Suitable: The organisation can pick the right candidates having the requisite skills. The candidates can choose a right vacancy where their talents can be fully utilised. Reliable: The organisation has knowledge about the suitability of a candidate for a position. Satisfying: A policy of preferring people from within offers regular promotional avenues for employees. It motivates them to work hard and earn promotions. They will work with loyalty, commitment and enthusiasm.

DEMERITS Limited choice: The organisation is forced to select candidate from a limited pool. It may have to sacrifice quality and settle down for less qualified candidates. Inbreeding: It discourages entry for talented people, available outside an organisation. Existing employees may fail to behave in innovative ways and inject necessary dynamism to enterprise activities Inefficiency: Promotions based on length of services rather than merit, may prove to be blessing for inefficient candidates. They do not work hard and prove their worth. Bone of contention: Recruitments from within may lead to infighting among employees aspiring for limited, higher level position in an organisation.

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EXTERNAL SOURCES:
External sources lie outside an organisation. Here the organisation can have the services of employees working in the organisation, job aspirants registered with employment exchange, students from reputed educational institutions, candidates referred by unions, friends, relatives and existing employees, candidates forwarded by search firms and contracts, candidates responding to the advertisement, issued by the organisation.

MERITS AND DEMERITS OF EXTERNAL SOURCES: MERITS:

Wide choice: The organisation has the freedom to select the candidates from a large pool. Persons with requisite qualification could be picked up. Injection of fresh blood: People with special skills and knowledge could be hired to stir op the existing employees and pave the way for innovative ways of working. Motivational force: It helps in motivating internal employees to work hard and compete with external candidates while seeking career growth. Long term benefits: Talented people could join the ranks, new ideas could find meaningful expression, a competitive atmosphere would compel people to give out their best and earn rewards, etc.

DEMERITS;
Expensive: Hiring costs could go up substantially. Tapping multifarious sources of recruitment is not an easy task either. Time consuming: Its takes time to advertise, screen, to test and to select suitable employees. Where suitable ones are not available, the process has to be repeated. Demotivating: Existing employees who have put in considerable service may resist the process of filling up vacancies from outside. Uncertainty: There is no guarantee that the organisation, ultimately, will be able to hire the services of suitable candidates.

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METHODS OF RECRUITMENT PROCESS:

There are two types of methods for recruiting the people:

1. INTERNAL METHODS:
Previous applicants Employee referrals: Employee referrals means using personal contacts to locate job opportunities. It is a recommendation from a current employee regarding a job applicant. The logical behind employee referral is that it takes one to know one. Present employee Promotion and transfer: A transfer is a lateral movement within the same grade, from one job to another. It may lead to changes in duties and responsibilities, working conditions, etc., but not necessarily salary. Promotion on the other hand, involves movement of employees from lower level position to a higher level position accompanied by (usually) changes in duties, responsibilities, status and value. Job posting: Job posting is another way of hiring people from within. In this method, the organisation publicises job opening on bulletin boards, electronic media and similar outlets.

ADVANTAGES
Cost low Employee is habitat with the policy of the company Good performance Highly qualified applicants working within the company to look for growth opportunities within the company.

DISADVANTAGE
It is a old concept Their current work is affected

2. DIRECT METHODS

Campus recruitment: It is a method of recruiting by visiting and participating in college campuses and their placement centre. Advantages of this method include: the placement centre helps locate applicants and provides resumes to organisation, applicants can be pre-screened, and applicants will not be lured away from a current job and lower salary expectation.

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GUIDELINES FOR CAMPUS RECRUITING:

Identify the potential candidates early Employee various means to attract candidates Use effective recruiting materials Offer training to campus interviewers Come out with a competitive offer

3. INDIRECT METHODS: Advertisements: These include advertisement in newspaper, trade, professional and technical journals; radio and television etc. E. Recruiting Television ADVANTAGES New talents are there with new skills Jealous and heart burn are avoided

DISADVANTAGE It is costly for which companies are bearing Adjustment of new employees took longer time 4. THIRD PARTY METHODS: Private Employment Search Firms: A search firm is a private employment agency that maintains computerised lists of qualified applicants and supplies these to employers willing to hire people from the list for a fee. Firms like Arthur Anderson, Noble and Hewitt. Employment exchange: As a statutory requirement, companies are also expected to notify( wherever the employment exchange act, 1959, applies) their vacancies through the respective employment exchange, created all over India for helping unemployed youth, displaced persons, ex-military personnel, physically handicapped, etc. Gate Hiring Contracts: Gate hiring( where job seekers, generally blue collar employees, present themselves at the factory gate and offer their services on a daily basis), hiring through contractors, recruiting through word-of-mouth publicity are still in use-despite the many possibilities for their misuse-in the small scale sector in India. Unsolicited Applicants/Walk-ins
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RECRUITMENT PROCESS OF THE MOUNT DISTELLIERIES LTD.

JOB ANALYSIS

JOB DISCRIPTION

JOB SPECIFICATION

JOB VACANCY

RECRUITMENT PLANNING

Number of the candidate Type of the candidate

EXTERNAL SOURCES

Interview/test

Decision making

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JOB ANALYSIS:
In simple terms, Job analysis may be understood as a process of collecting information about a job. The process of job analysis results in two sets of data: JOB DESCRIPTION JOB SPECIFICATION

Job Analysis is the process of studying and collecting information relating to the operation and responsibilities of a specific job. The immediate products of this analysis are job description and job specifications.

JOB DESCRIPTION: A statement containing items such as: Job title Location Job summary Duties Machines, tools & equipments Materials and forms used Supervision given or received Working conditions Hazards

JOB SPECIFICATION A statement of human qualifications necessary to do job. Usually contains such items as:
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Education Experience Training Judgement Initiative Physical effort Physical skills Responsibilities
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Communication skills Emotional characteristics RECRUITMENT PLANNING:
In recruitment process first stage is planning. Planning involves the translation of likely job vacancies and information about the nature of these jobs into a set of objectives or targets that specify the number and type of applicants to be contacted. NUMBER OF THE CANDIDATE:

Organisation, nearly always, plan to attract more applicants than they will hire. Some of those contacted will be uninterested, unqualified, or both. Each time a recruitment programme is contemplated; one task is to estimate the number of applicants necessary to fill all vacancies with qualified people. TYPE OF THE CANDIDATE:

This refers to the type of people to be informed about job openings. The type of people depends on the tasks and responsibilities involved and the qualification and experience expected. These details are available through job description and job specification. EXTERNAL SOURCES

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ANALYSIS AND FINDINGS

1. Employees status

: CALCULATION PERCENTAGE 75% 19% 5%

FREQUENCY Permanent Probationary Contract 71 18 5 94

TOTAL

Out of 94 employees 71 is permanent, i.e 75% of employees who are working in the organisation more than 10-18 months, 18 employees were traniee i.e. 19% of employees are working under probationary period and there were the employee who are in contract basics that is 5%

EMPLOYEES STATUS
5%

19%

Permanent Probationary 75% Contract

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2. Through which sources you have been recruited for your job? FREQUENCY CALCULATION PERCENTAGE 45% 9% 0% 0% 24%

Employee referral 42 Advertisement 9 Campus Recruitment 0 Recruitment Agency 0 Wall-ins 23 Recommendation by social body, ward panchyat 20 TOTAL 94 2

21%

RECRUITED FOR JOB

21% 45% 24% 9%

Employee referral Advertisement Campus recruitment Recruitment Agency Walk-ins Social body

In the above pie chart most of the employees of the Mount Distilleries ltd.(about 45% were recruited through employee referral, while 9% of the sample employee were recruited through advertisement, while 0% of the sample employee were recruited through campus recruitment, recruitment agency, 24% of the sample employee through walk-ins and 21% of the employee recruited through society body and ward panchyat.

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3. Before joining you have been verified by on which of the following aspect? FREQUENCY Educational qualification Legal background Reference check Family background TOTAL 52 0 35 7 94 CALCULATION PERCENTAGE 55% 0% 37% 7%

JOINING ASPECT
100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Educational qualification Legal background Referance check Family background 7% 55% 37% JOINING ASPECT

Before joining the organisation 55% the sample employees have been verified on educational qualification, while 37% of the employees were verified on both educational and reference check. While 7% of sample employees were verified on family background, reference check and educational qualification. None of the sample employee were verified on legal background.

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4. Which of the following test you have gone through during recruitment process? FREQUENCY Written Aptitude Group discussion Personal Interview TOTAL 10 10 0 74 94 CALCULATION PERCENTAGE 10.6% 10.6% 0% 78.7%

RECRUITMENT PROCESS

10.60% 10.60% Written Aptitude Group discussion 78.70% Personal interview

From the above diagram, it is clear that the organisation adopts various test for recruitment the right candidate. Out of 94 sample employees,74% employee were chosen through personal interview which comprises 79%, while 10 employee were chosen through written exam comprising 10% and 10 employees out of 70 employees were chosen through aptitude test which comprises 10%. None of the employees were aware of group discussion.

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5. Have you been reimbursed for any of the following expenses during your recruitment? FREQUENCY Travel/ Accommodations None TOTAL 20 74 94 CALCULATION PERCENTAGE 21.2% 78%

74

EXPENCES
21.20%

Travel/Accomodation None 78%

Above frequency, out of 94 sample employee, 20 employee(about 21%) were reimbursed by the organisation for travelling and accommodation expenses during their recruitment, while 74 employees about 78% were not reimbursed for any of the following expenses.

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6. How much of the time duration taken for your induction program? FREQUENCY Less than 1 week Maximum 1 week More than 1 week 79 15 0 94 CALCULATION PERCENTAGE 84% 15.9% 0%

TOTAL

600% 500% 400% 300% 200% 100% 0% Less than 1 week Maximum 1 week More than 1 week Series 2 Series 1

In the above diagram, time taken by 94 employees, 79 employees took less than 1 week, whereas 15 employees took maximum 1 week to complete their induction program and none of them took more than 1 week.

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7. Has training imparted by your organisation helped you to improve the performance level? FREQUENCY Strongly Agree Agree Undecided Disagree Strongly Disagree TOTAL 20 55 19 0 0 94 CALCULATION PERCENTAGE 21.27% 58.5% 20.2% 0% 0%

IMPROVING PERFORMANCE LEVEL

0% 0%

20.20%

21.27%

Strongly agree Agree Undecided Disagree

58.50%

Stongly disagree

From above pie diagram, it is clear that most of the employees comprising 21% and 58% of my sample study were agreed that the training imparted by the organisation improved their performance level, while some employees who comprise 20% and 0% of my sample study were undecided and disagree respectively by the training given by the organisation.

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8. Have you been explained about the leave plan of the organisation? FREQUENCY CALCULATION PERCENTAGE In details (staff) 29 As and when situation arises 65 Only if the candidate enquiries about it 0 Not at all 0 TOTAL 94 30.85% 69 0% 0%

LEAVE PLAN
0% 0%

30.85%

In details Situation Candidate enquiries Not at all

69%

From the above pie diagram, 30% of sample employees have been explained about the leave plan of an organisation in detail. While 69% of sample employee have been explained about the leave plan as and when situation and 0% of the employees of sample study have not at all been explained about the leave plan of an organisation.

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9. Have you been given any notice period for leaving an organisation? FREQUENCY CALCULATION PERCENTAGE 15 Days 30 Days TOTAL 0 94 94 0% 100%

NOTICE PERIOD
0%

100%

15Days 30 Days

In this pvt ltd company leave plan is 30 days.

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10. Which of the following aspect have attract you and employee to join this company? FREQUENCY CALCULATION PERCENTAGE Image of the organisation Location Compensation package Job prospectus Career growth opportunity TOTAL 50 30 0 10 4 94 53.19% 31.91% 0% 10.63% 4.25%

REASON TO JOIN THIS COMPANY

4.25% 10.63% Image of the organisation Location Compensation package 31.91% 53.19% Job prospect Career growth opportunity

The above diagram, show that 50 of the employees are inspired by the image of that organisation. It can also seen that 0 of the employees are attracted by the compensation package, while 10 of the employees are attracted by the job prospect and 30 of the employees are attracted by location and career growth opportunity which comprise 4 employees respectively.

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FINDINGS

On the basis of data collected through the process of questionnaire the following things were finding from the observation: There is a need to improve environment at project. It was found out that the feedback of appraisal in not communicated to the employees. Some of the employees do not get the information properly. The project organizes the training programs for the workman to improve their educational/ technical qualification for promotion

Some of the employees do not come in time. Unskilled employees are more in the company. There is a communication gap between employees and workers.

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CHAPTER 3 COMPENSATION BENEFITS DEFINATION :

Compensation is what employees receive in exchange for their contribution to the organisation. Generally, employees offer their services for three types of rewards. Pay refers to the base wages and salaries employees normally receive. Compensation forms such as bonuses, commission and profit sharing plans are incentives designed to encourage employees to produce results beyond normal expectation. Benefits such as insurance, medical, recreational, retirement, etc., represent a more indirect type of compensation. So, the term compensation is a comprehensive one including pay, incentives, benefits offered by employees hiring the services of employees. In addition to these, managers have to observe legal formalities that offer physical as well as financial security to employees. All these issues play an important role in any HR departments efforts to obtain, maintain and retain an effective work force.

OBJECTIVES OF COMPENSATION PLANNING

The important objectives of any pay system are fairness or equity. The term equity has three dimensions: Internal equity: This ensures that most difficult jobs are paid more. External equity: This ensures that jobs are fairly compensated in comparison to similar jobs in the labour market. Individual equity: It ensures equal pay for equal work, i.e, each individuals pay is fair in comparisons to others doing the same/ similar jobs.

In addition, there are others objectives also. The ultimate goal of compensation administration (the process of managing a companys compensation programme) is to reward desired behaviour and encourage people to do well in their jobs. Some of the important objectives that are sought to be achieved through effective compensation management are listed below: Attract talent: Compensation needs to be high enough to attract talented people. Since many firms compete to hire the services of competent people, the salaries offered must be high enough to motivate them to apply. Retain talent: If compensation levels fall below the expectation of employees or not competitive, employees may quit frustration. Ensure equity: Pay should equal the worth of a job. Similar jobs should get similar pay. Likewise more qualified people should get better wages.
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New and desired behaviour: Pay should reward loyalty, commitment, experience; risks taking, initiative and others desired behaviour. Where the company fails to reward such behaviours, employees may go in search of greener pastures outside. Control costs: The cost of hiring people should not be too high. Effective compensation management ensures that workers are neither overpaid nor underpaid. Comply with legal rules: Compensation programmes must invariably satisfy governmental rules regarding minimum wages, bonus, allowances, benefits, etc.

SCOPE OF THE STUDY:

This study will help the organisation to come to know about whether the employees are satisfied with the present compensation package or not. Through this study the company would come to their compensation benefits among the employees.

ANALYSIS AND FINDINGS

1. Whish of the following you are getting from your organisation? Medical insurance Pension scheme Transport facility Canteen facility Recreational facility This shows that mount distilleries ltd. Gives medical insurances, pension scheme, recreational facility to their employees.

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2. Do you think the salary package you are getting have a balance with your work and effort? FREQUENCY Strongly agree Agree Undecided Disagree Strongly disagree 56 30 5 3 0 94 CALCULATION PERCENTAGE 59.57% 31.91% 5.31% 3.19% 0%

TOTAL

No. of respondent
5.31% 3.19%

Strongly agree Agree 31.19% 59.57% Undecided Disagree Strongly disagree

31.19% 0f mount distilleries employees agree that the salary package they are getting have balance with their work and effort. 5.31% employees are undecided about it while 3.19% employee disagrees to it and 59.57% employee strongly agrees on it; with 0% employee strongly disagree on this statement.

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3. What percentage of salary is increased every fiscal year? FREQUENCY 10% to 20% 25 20% to 30% 0 According to companies profit 0 According to performance 30 Not fixed 39 CALCULATION PERCENTAGE 26.59% 0% 0% 31.91% 41.48%

No. of respondent

41.48%

26.59%

10% to 20% 20% to 30% According to companies profit

31.91%

According to performance Not fixed

31.91% of employees agree that their salary hike every fiscal year is according to their performance. O% says that it is according to companies profit while 41.48% employees are not fixed about it. 26.59% employees says that salary hike is 10% to 20% while 0% of them says that it is 20% to 30%. 4. What kind of pension plan is provided by your company? Defined benefit plan Simplified employee pension plan Deferred profit sharing plan Defined contribution plan No plan provided Mount Distilleries Company can provided only defined contribution plan among others like defined benefit plan, simplified employee pension plan, deferred profit sharing plan, no plan provided.

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5. What percent of medical expenses is borne by your company? FREQUENCY CALCULATION PERCENTAGE

100% on accidentals case 58 61.70% Only 50% of the total medical expenses incurred by self only 12 12.76% Only 75% of the total medical expenses incurred by self only 6 6.38% Depends on the type of treatment specified by the company dept. 18 19.14%

No. of respondent
100% on Accidental case 19.14% Only 50% of the total medical expenses incurred by self only 6.38% 12.76% 61.70% Only 75% of the total medical expences incurred by self only Depends on the type of treatment specified by the company dept.

19.14% employees of mount distilleries claims that medical expenses borne by the company depends on the type of treatment specified by the company medical dept. 6.38% says that only 75% borne by company. 61.70% says it is borne by the company while 12.76% says that only 50% of it is borne by company.

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6. Who are the family members included for your medical treatment for which you will be reimbursed? FREQUENCY Yourself only 89 Family members 0 Yourself and one children 5 TOTAL 94 CALCULATION PERCENTAGE 94.68% 0% 5.31%

No. of respondent
5.31%

Yourself only Family members 94.68% Yourself and one children

94.68% employee agree that medical treatment for which you will be reimbursed for yourself while 0% family members and 5.31% employees agree with yourself and one children. 7. Is there any kind of recreational facility given by your company? Indoor games Outdoor games Picnic Movie show Dont have Not interested In Mount Distilleries Company only picnic facility is available to their employees.

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8. The wages that is provided by your company is according to : Govt. Wage norms Companys own norms Job survey Others

In Mount Distilleries Company that wages is provided according to Govt. Wage norms and companys own norms. 9. What is the minimum wages( in Rs per day) that your company provides to: Unskilled worker @ Rs. 130 per day Semi-skilled @ Rs. 250 per day Skilled @ Rs. 325 per day Highly skilled In Mount Distilleries Company that the minimum wages to unskilled worker is Rs 130 per day, while Rs 250 per day for semi-skilled and for skilled is Rs 325 per day. 10. What percent of provident fund is contributed by : Employer 12% of basic pay Employee 12% of basic pay

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11. Does the compensation package that your company provides is able to attract and retain qualify employees? FREQUENCY Strongly agree Agree Undecided Disagree Strongly disagree 38 47 4 5 0 CALCULATION PERCENTAGE 40.42% 50% 4.25% 5.25% 0%

No. of respondent
4.25% 5.25%

40.42%

Strongly agree Agree Undecided

50%

Disagree Strongly disagree

50% employees agree that compensation package is able to attract and retain qualified employee in the company. 4.25% are undecided while 40.42% strongly agree to it & 4.25% employees disagree to it.

FINDINGS
Most of the employees are satisfied with the present compensation package provided by the organization but few members of employee are also dissatisfied with the package as they feel that the compensation provided to them is not consistent with the type of work that they do or with any other reason.

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CONCLUSION

As I already describe about recruitment process and compensation benefits. For recruitment process organisations have to recruit people with requisite skills, qualification and experience, if they have to survive and flourish in a highly competitive environment. Studying the recruitment procedure of mount distilleries ltd. Analysis the respondent answer and data analysis it came to conclusion that mount distilleries is a growing company. It has separate personnel department which is entrusted with the task of carrying out its various roles efficiently. The recruitment process of mount distilleries ltd. Is carried on in a very scientific manner. The reason why every employee gets motivated to do the job is because of the training given by the company and time to time of the performance appraisal. Almost all the candidate got the specified job offered to them. This implies that the company has the organised recruitment policy They have to be sensitive to economic, social, political, legal factor within a country. As we already know that the basic purpose of recruiting is to develop a group of potentially qualified people. So, before deciding the recruitment process the organisation should keep in mind the overall aspects of the company recruiting process so that the employee get motivated to do work and they can get qualified employee to achieve goal. Compensation package plays an important role in attracting and retaining the employees in the organisation which is one of the most difficult parts. So, before deciding the compensation package the organisation should keep in mind the overall aspects of the compensation benefits so that the employees get motivated to do work and organisation can achieve its goal. The management should identify the important factors that affect the compensation package and should take necessary measures to improve it. Employees would love their jobs if they are paid well for their work.

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SUGGESTION
Periodic meeting should arrange in all level regarding their task, problems, so that top management can find the strength & weakness of the employees. Feedback should be communicated to the employees. Some of the employees engaged in certain job which is not match with their job descriptions. If it is long term process it will contaminate the whole system, therefore they should be assigned to the job with matches with their job description .i.e. right person be placed at right job. Training is needed to make employees more productive and useful in the long-run. There should be good coordination among the employees. Training is necessary to make employees versatile.

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QUESTIONNAIRE RECRUITMENT PROCESS

1 2 3 4 5 6 7 8 9 10 Employee status? Through which sources you have been recruited for your job? Before joining you have been verified by on which of the following aspects? Which of the following test you have gone through during recruitment process? Have you been reimbursed for any of the following expenses during your recruitment? How much of the time duration taken for your induction program? Has training imparted by your organisation helped you to improve the performance level? Have you been explained about the leave plan of the organisation? To what extent are you satisfied with the leave plan? Which of the following aspect have attracted you and employee to join this company?

COMPENSATION BENEFITS
1 2 Which of the following you are getting from your organisation? Do you think the salary package you are getting have a balance with your work and effort? 3 What percent of salary is increased every fiscal year? 4 What kind of pension plan is provided by your company? 5 What percent of medical expenses is borne by your company? 6 Who are the family members included for your medical treatment for which you will be reimbursed? 7 Does the compensation package that your company provides is able to attract and retain qualify employee? 8 Is there any kind of recreational facility given by your company? 9 The wage that is provided by your company is according to? 10 What is the minimum wages (in Rs per day) that your company provides to? 11 What per cent of provident fund is contributed by employer and employee?

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BIBLIOGRAPHY
BOOKS REFFERED: 1. Human Resources Management by V S P Rao 2. Human Resources Management by P jyoti 3. Human Resources Management by Aswathappa

WEBSITES VISITED: 1. www.google.com 2. www.wikipedia. Com

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