A

PROJECT REPORT
ON
WAGE PAYMENT & INCENTIVE SCHEMES
AT
ZOLOTO VALVES
A Project Report Submitted in Partial Fulfillment of Degree of
MBA 4 t h Sem
To be awarded by

Sikim Manipal University

Submitted by:

Supervised by:

CONTENTS
1. PROFILE OF THE COMPANY
2. RESEARCH METHODOLOGY

Objactives of the study

Sample Site
Sampling Techniques
Source of Date
Limitation of The Study
3. INTRODUCTION TO THE WAGE PAYMENTS AND INCENTIVES
SCHEMES
4. METHODS OF WAGES PAYMENTS IN ZI
5. INCENTIVES SCHEMES IN ZI
6. ANALYSIS OF THE SATISFACTION LEVEL OF THE WORKERS IN
ZI
7. BIBLIOGRAPHY

COMPANY PROFILE
ZOLOTO valves broke ground in 1966, as a s mall run compan y involved in the
designing and manufacturing of water fittings.
Ever since the commercial operation began, ZOLOTO 's vision was to stud y and
identif y the consumer needs b y offering well designed and engineered product as a
solution. The ke y to success was without doubt- THOROUGH CUSTOMER

SATISFACTION. With this drive, the compan y in a short span of ti me e merged

as one of the countr y's leading manufacturer of valves.
The compan y since its inception has maintained its own standards of qualit y with
no compromises. Advanced ma nufacturing techniques and equipment, a continuing
progra mme of engineering research, product developme nt and ma n y ye ars of
experience in the line is behind the qualit y and dependabilit y built into ever y

ZOLOTO product. A trul y independent eagle e ye d qualit y control cell functions

under a tea m of highl y qualified engineers and the selection of material for the
product and its components is alwa ys based upon expert metallurgical, foundr y
and fabrication knowledge.
Over the year, this path, dotted with total commit ment and exacting standards has
provided the compan y a rock like qualit y foundation. Toda y with decades of
experience in its belt, ZOLOTO has fir ml y established a position of pree minence in the real m of fluid controls. Its phenomenal growth is reflected in its
modern and comprehensive ma nufacturing infrastructure that harnesses the power
of superior technolog y to ma ss-produce qualit y products.
Rigid qualit y control, inspections and stringent tests at all ma nufacture ensure
that each ZOLOTO products carries its unconditional guarantee of qualit y,
giving ut most reliable service that ever y ZOLOTO customer is entitled to except.

ZOLOTO products are approved b y various qualit y institutions including BIS,

IBR, QUALTY MARKING and enjo y on active patronage of numerous govt.,
se mi govt, depart ments and e minent industrial houses in the countr y. The
compan y' s commit ment to" qualit y with dedication to manufacture world class
products stands reaffir med b y the encouraging response to ZOLOTO products in
a highl y competitive international market as well.
The compan y ai ms at building on its traditional strengths and fulfilling its vision
of becoming a world class compan y, dedicated to professionalis m and excellence.
With a solution for ever y need, an extensive range of products and a nationwide
distribution network, the consumers can rel y on ZOLOTO for, what the y deserve.

ISI (Bureau of Indian standards)

Standards & Codes Followed

IBR (Indian Boiler regulation Act) &

own

technical

specifications

Developed b y the R&D cell from

ti me to ti me for the uplift me nt of
product

qualit y.

The

compan y

is

certified as ISO 9001 compan y b y

U L of USA

TOTAL STRENGTH
Adminstration

26

Marketing

12

Designing

04

Quality Control

12

Production

346

EXPORT

ZOLOTO valves are enjo yi ng wide patronage of customers in the overseas

ma rket and have successfull y been exported to Afghanistan, Angola, Burma,

Bhutan, Canada, Denmark, Ethiopia, IRAQ, Kenya, Nepal, New Zealand,

Sri Lanka, United Arab Emirates & Yemen.
TECHNICAL COLLABORATION
With a boost in sales after having received regular & innumerable repeat export
orders. The compan y plans to further automate & upgrade manufacturing facilities
b y wa y of technolog y transfer from Ital y & Spain, in its upcoming ultra modern
plant having more than 7.500.000 sq.ft. of area.

APPROVAL BY STATUTORY BODIES

Bureau of Indian Standards, Director of Boilers Punjab, National Test House,
Kolkata and state's qualit y ma rking centre.

QUALITY MANAGEMENT
The compan y has its own in-house che mical & ph ysical Testing labs equipped with
latest, modern & sophisticated equipment.

FLOW CHARTS OF TESTING PROCEDURE

1. Che mical composition anal ysis of ever y raw material procured from the
ma rket.

2. In house ingoting of raw materials as per customer specifications.

3. Rigid inspection b y Foundr y Metallurgical before & during the casting process.
4.

Floor inspection b y qualified engineers with calibrated gauges during

ever y stage of ma chining & asse mbling.

5. H ydraulic & stea m tests on proscribed ratings as per require me nt of the

standards to ensure their continuous "ZERO" leak perfor ma nce during
operation at the pipeline.

6. 100% pre-deliver y inspection (PDI).

LIST OF MAJOR CLIENTS
As a ma tter of compan y's marketing polic y its products are supplied onl y to its
authorized stockiest and it is the y who further feed the ma rket as well as
consumers. This polic y has been devised with the consumer's interest in mi nd as
in the compan y' s opinion it is alwa ys the locall y based stockiest who can best &
readil y serve the customer.

THIRD PARTY INSPECTION

Third part y inspections against specific require ments of the of the clients are
carried out in our works b y SGS. TUV (Ger man y) or an y oilier authorit y as per the
customer's require ments.

DEALERS NETWORK
ZOLOTO valves are easil y available through a wide network of its dealers in
ever y part of the countr y

AFTER SALES SERVICE

The compan y provides total back up support to its stockiest. ZOLOTO personnel
are alwa ys readil y available to help the consumers promptl y an y ti me & an ywhere
in India to handle their proble ms, if an y, within the shortest span of ti me.

ANNEXURE-B
TESTING FACILITIES
We have our own chemical & physical lab equipped with latest & Modern
equipment for testing of our material as per the Indian & British Standard
Specification.

LIST OF TESTING EQUIPMENTS

1 Physical
1.1

Universal Tensile Testing Machine Cap = 20 TONS

1.2

Make- FIE (Fuel Instruments & Engineers Pvt. Ltd.)

2 Chemical Lab
2.1

Platinum Electrodes

2.2

Electro Chemical Analyser

2.3

Muffle Furnace

2.4

Drying Oven

2.5

Hot plate

2.6

Chainomatie Analytical Balance

2.7

Glasswares & Chemicals

3 Thread Gauges & Measuring Instruments

3.1

GO-NO-GO Threaded plug gauges

8mm to 100mm

11 Nos

3.2

GO-NO-GO Minor Dia Gauges

8mm to 100mm

11 Nos

3.3

Dial Caliper

0mm to 50mm

02 Nos

3.4

Dial Caliper

0mm to 25mm

02 Nos

3.5

Verniers & Micrometers

4 Hydraulic Testing pump ( Motorised)

10 Nos

02 Nos

5.

Booster Hyd. Pump

6.

Boiler (Pressure Rating 275 Psig)

RESEARCH METHODLOLOGY

RESEARCH METHEDOLOGY
Sample Si ze :- The number of e mplo ye es in ZI was more than 500. It was quite
difficult to approach each and ever y worker. Therefore, I followed a si mple
me thod in observing the workers and that was b y sa mpling method.
To si mplif y my work, I selected the workers at random sa mple of 50 workers from
different depart me nts keeping in view the number of workers in each depart me nt.
The next thing required was a questionnaire and to prepare questionnaire, I have
to stress upon various concepts and various books. After going through various
concepts, ma n y di me nsions of wages were identified.
Sampling Techniques :- The sa mpling adopted was convenient sa mpling. After
picking up the sa mple and preparing questionnaire. I went to each depart ment and
'interviewed' the workers randoml y. All the responses to m y questions were put in
the categor y to which the workers responded.
The data was s yste maticall y arranged and anal yz ed for results b y using tables. For
each question separate table is ma de. Thereafter various conclusions are drawn
with the findings of the data collected.
Source of Data :- The sources of data collected was pri mar y as I have visited
personall y ever y depart ment to observe the worker's reactions regarding' my
questions. As I personall y interacted with the m the y showed their full cooperation in providing Proper infor mation.
Some infor mation was of secondar y nature because it was collected from
compan y' s files which were provided b y the personnel and administrative ma nager
of the compan y.

LIMITATIONS
During the course of my stud y. I have to face the following difficulties:

1. The ti me period of stud y was 6 weeks onl y. Therefore it was quite difficult to
have the full knowledge of full concept.

2. Most of the workers were out of Punjab speciall y from BIHAR, GUJRAT etc.
Therefore it was difficult to make the m understand the concept.

3. Most of the workers were non co-operative, the y thought that the surve y was
being done b y the compan y and because of unsatisfactor y conditions the y
didn't answer properl y of the questions.

4. When suggestions were invited than few of workers responded, others were
of the view that it was of no use, the y think that nothing is going to be
changed. The y refused to express their views.

5. Mostl y workers were bus y with their work so supervisors didn't allow the m
to leave their working place and so I have to wait a lot for their responses.

6. Most of the m were illiterate so it was difficult to ma ke aware of the concept.

In spite of all these difficulties, I was able to collect the first hand infor mation
regarding the wage pa yment and incentives sche mes h the organization.

OBJECTIVES OF THE STUDY

The main objectives of the stud y are to anal ys e and interpret the wages and
interpret the wages and incentives sche mes to relate to workers in "ZOLOTO

VALVES". S ome of the objectives are following :1.

To stud y the attitude of compan y towards the wages of the workers and the
incentives plans followed b y the compan y.

2.

To study the practices, policies & procedures regarding wages of workers.

3.

To know whether the compan y is moving accordance with the pa yme nt of wages act.

4.

5.

To know whether the worker's are getting the mi ni mu m wage rate or not.

To study the worker's satisfaction level from the wages and incentives (either
financial or non-financial) offered to the m b y the compan y.

6.

To know the communication pattern followed b y the workers and ma nage ment.

7.

To know whether worker's feel secured of their job.

8.

And at last to stud y the worker's in the e yes of organization.

INTRODUCTION OF WAGE PAYMENT

Meaning:- Wages may be referred to as compensation given to the employees
in lieu of services rendered by them to the organization. The relationship of

employer and employee is a symbiotic relationship. An employer offer wages

to the employee and in turn employee serves the purpose of the employees.
Both of them need each other to maintain the economic relationship. The
relationship rests mainly on wages. Wages is an important and effective tool
in the hands of management to motivate the human resources of the
organization. Basically managing human resources is one of the main
characteristics of personnel management.

Issues regarding wages have been the most important cause of dispute between
the labors and the management. An organization which does not offer fair
remuneration to it's employees has to face strikes and lockouts. However the
problem before the management is that it has to keep the wages within certain
limits for these wages become very much a part of the total cost of the
product. Wages produce far reaching effects in the general standard of living
in the country, employment, productivity, cost of production, prices, capital
formation.

ROLE OF GOVERNMENT
Even Govt. has shown its concern for the remunerations paid to the employees
by an organization. It is due to this reason that various acts concerning the
wages of the employees have been passed, for example Minimum Wages Act,
1948 which ensures that the minimum wages as stipulated and amended from
time to time are paid to the employees.

DIFFERENT METHODS OF WAGE PAYMENT

TIME WAGE SYSTEM: This is the oldest method of wage payment. Under this method:

1. Wages are paid to workers on the basis of time spent by them on the job and no
consideration is given to their efficiency or performance.

W= T*R
Where T is time and R is a rate per hour.

2. This system is suitable where quality of the product is more important than the
quality or the individual performance of a work cannot be measured.

3. Under this method, the workers are guaranteed minimum wages. Because there is
no relationship between the efficiency and wages.

4. This method enjoys the support of trade unions because all the workers are treated
alike paying wages.

5. This method requires strict supervision on the workers so that they do not waste
their time deliberately with a view to get more wages.

6. This method lays more emphasis on the quality of the product.

7. Here it is difficult to calculate per unit labour cost.

MERITS OF TIME WAGE SYSTEM

1. It is si mple to understand and eas y to calculate.

2. Qualit y goods can be ensured.

3. No hurr y, therefore proper handling of machines.
4. Less wastage of materials.
5. Beneficial for newcomer.
6. Acceptance b y trade unions.

DEMERITS OF TIME WAGE SYSTEM

1. It ma kes no distinction between efficient and inefficient workers.

2. Less production.
3. Intensive supervision.
4. Difficult to measure labour cost per unit.
5. Large interference b y trade unions.

PIECE WAGE SYSTEM:- under this method, wages are paid on the basis of number or
units manufactured by the workers and no consideration is given to the time consumed for the
production.
W~P*R
It is suitable where quality of the product does not matter much and it is possible to measure
in standard units, the performance of each worker.
There is no guarantee of minimum wages under diis method. If there is interruption in the
production then the wages of the workers become uncertain.
Hence since efficient workers are able to get more wages than the inefficient workers, it
breeds jealousy among the workers and hence it is opposed by trade unions.
Under this method the workers know that of they will work more they will get more earning.
Hence they exercise self-control and donate waste time. This method lays more emphasis on
the quality or level of production.
Under this method per unit labour cost can be easily known.
MERITS OF PIECE RATE SYSTEM
1. Gives incentives to the workers.
2. There will be automatic increase in production.
3. Workers will use machines, equipment and sources in a good manner.
4. Efficient workers will get encouragement for working.
5. It will reduce the per capita unit cost of production.
6. Supervision cost will be less.

DEMERITS OF PIECE RATE SYSTEM

1. It affects qualit y of the product.
2. Mishandling of machines and tools due to speed up production.
3. It is not beneficial for new workers.
4. This method is not acceptable b y trade-unions.
5. It becomes difficult to fix wage rate.
6. Over exertion of both ma chines and e mplo yees also, which effects the s mooth
running of production and work.

INCENTIVE WAGE SYSTEM

Under this s yste m workers are induced to produce more on one hand workers are
assume d of mini mu m wages and on the other hand the y are given incentives or we
can sa y bonus whenever the y perfor m above the standards fixed. The ai m of these
plans is to benefit both the parties i.e. the workers and the e mplo yees b y offering
incentive wage to the for mer and b y reducing the cost of production for the latter
ma de possible b y better perfor ma nce or more production b y the workers so this
me thod tries to overcome the li mitations of both ti me wage s yste m as well as piece
wage s yste m. These plans can be classified b y a wa y of a chart.

Essentials of a Good Wage Plan

1. The wage plan must be si mple to under stand and operate it should not involve
complicated calculations. It should involve complicated calculations. It should
enable even on ordinar y worker to calculate his earnings on his own.

2. The wage must be linked with the productivit y of workers.

3. The wage for each job classification should be related to each other in ter ms of
job require ments, due consideration being given to such factors as skill, length
of ti me required in learning, working conditions and responsibilit y de manded.

4. Wage plan must ensure the workers, manage me nt and consumers due share in the
gains of higher productivit y.

5. The wage plan must ensure higher pa y to the workers who perfor m work at
higher level of efficienc y.

6. The wage plan should ha\e a proper wage differential based on proper job
evolution.

7. The wage plan should guarantee mi ni mu m wages to pro ect the interests of
workers against conditions over which the y have no control.

8. The wage plan should be flexible i n order to me et changing conditions and

should not involve excessive administration cost.

NON FINANCIAL INCENTIVES:- These are generall y introduced as a nor mal

practice in good ma nage ment. These elicit from e mplo yees sense of participation
and belongingness and their i mportance is not to be under-esti mated. The non
financial incentives touch the inner feelings of e mplo yees and bring out a response
much more i mpressive than could be possible through financial incentives are the
out come of an enlightened ma nage ment. The provision of better working conditions
encourage ment

and

appreciation

of

good

work

and

journal

at mosphere

of

willingness and co-operation in dealing with common proble ms are all those
contributed to excellence in all areas of work and higher productivit y. There is no
doubt that introduction of financial incentives sche mes and the acceptance of
workmen bring a radical change in industrial relations manage me nt often is faced
with a challenge when the y introduce incentives sche mes. For the incentives
sche mes to be effective, manage me nt must ensure that the y will be able to do good
to the ma nage ment and the workers alike one of the studies carried out in a public
undertaking revealed that after 4-5 months of introduction of sche mes, following
results are achieved:-

Increase in production 20%

Increase in productivit y 15%

Reduction in rate of accidents 60%

Reduction in over ti me 40%

In addition to the above, there was i mprove me nt in attendance in morale,

willingness to work and enforce me nt for increasing production. We have seen that
incentives plans provide for higher reward for increased output.

The main objective is to increase the production b y giving an induce me nt to

workers in for m of higher wages. An effective incentives plan must provide for
mi ni mu m guaranteed wages.

INCENTIVES SCHEMES
Incentives are the stimulus mainly ps ychological and it maintains and
strengthens the desire to achieve improved performance. Incentives are mainly
of two types:

Financial Incentives.

Non-Financial Incentives.

Financial Incentives helps the individuals to meet their basic needs and non
financial incentives assist in meeting the higher order needs such as social
needs, ego needs and self actualization needs. Non financial incentives are
based on sociological and ps ychological principles of higher behaviors.
Financial Incentives:- These incentives are payments for improved productivity
attendance and general improvements in employee's performance. Financial
incentives schemes can be direct or indirect or indirect in nature. In direct
financial incentives schemes, the payments are based on employees own
performance or contribution to the job such as production incentives schemes
attendance bonus, profit sharing bonus etc. The case of indirect financial
incentives, the payments are not directly related to employees contribution &
schemes are like subsidized means such as leave encashment, gratuity
schemes, leave travel concession, canteen facilities at subsidized rates etc.

ADVANTAGES
Following are the various advantages of financial incentives schemes:1. Achievement of higher production.
2. Lesser breakdown and defective work.
3. Cutting down the cost of production.

4. Opportunity for higher earnings to employees.

5. Reducing the supervision ti me.

6. Effective use of manpower planning.

DISADVANTAGES
The incentives sche me s are not free from disadvantages the following are some of
the disadvantages of incentives sche mes:-

1. Possibilit y of incentive sche mes to be misunderstood because of its

complexities.

2. Lack of consistenc y.
3. Ps yc hological proble ms in the incentives s yste ms.
4. Dela y in the pa yment of sche me.

OBJECTIVES
Following are some of the i mportant objectives for which incentive sche mes are
used:-

1. To increase production, productivit y yi elds manpower utilization earning of

the e mplo yees sales and qualit y.

2. To i mprove qualit y, reduced inventor y and reduced wastage.

9. The wage plan must be related to cost controls and the operating level budget.

10. The wage plan should place no limits on the amount of additional earnings of the
workers and thus it should maintain the high moral of workers.

Some of the Non-Financial Incentives Are: Welfare measures.

Social and sports activities.
Education opportunities.
Suggestion sche mes.
Meritorious service awards.
Sound perfor mance appraisals.
Promotional policies.
Better working conditions.
Creation of health y organizational planning and developme nt.
Knowledge of results growth opportunities in the organization.
Recognition.

Salient or Essential Features of Incentives Schemes

Following are the salient features to be considered in an y incentives sche mes:-

1. It should be easil y understood and the a mount of benefits should be reall y

assessed.

2. It must benefit e mplo ye es as well as e mplo ye es.

3. It should assist in supervision.
4. It must have relation between the benefits to the e mplo yees in relation to
their efforts.

5. It should not to costl y to adopt or operate.

6. It should sti mulate the interest a mong e mplo yees.
7. It should sti mulate the co-operation a mong all e mplo ye es.
8. It should not be detri mental to welfare of the e mplo ye es.

WAGE PAYMENT IN ZI
The number of workers working in the organization is 400. The organization is divided in to
different departments. Each department is engaged in a specific kind of operation. The various
departments are:
PURCHASE DEPARTMENT
ACCOUNTS DEPARTMENT
MARKETING DEPARTMENT
MOULDING SHOP
TOOLS ROOM
QUALITY DEPARTMENT
MACHINING SECTION
PACKING DEPARTMENT
PAINTSHOP
TESTING DEPARTMENT
TECHNICAL STAFF
ADMINISTRATION
SECURITY
FINISHED GOODS STORE

The method followed by the organization for the payment of wages to workers is usually time
wage system i.e. weekly or monthly wages. Everyone in the organization is on salary basis.
No one is given wages according to piece wage rate. All the workers enter in the premises at a
fixed time and leave it also at a prefixed time

An agreement between both the parties was executed on 27 111 April 2000 validity of which has
expired on 31st march 2005, therefore w.e.f. 1 stApril 2005, this new agreement will become
effective. There terms are as under:

TERMS OF AGREEMENT
Agreed that whenever the Punjab government, increases minimum wages,
all those workers covered under the minimum wage categories having
satisfactory attendance, that is minimum 85% shall be given the benefit of
increased minimum wages,_ irrespective of the fact whether they are
getting more than the minimum wages or not.
Those workers whose production, productivity and discipline are not in
accordance with the company rules, they will not be entitled to the benefit
of increase in minimum wages.
Agreed that the following existing benefits to all workers will remain
unchanged:1.

Grant of annual increments w.e.f. 1 April, every year based on

Performance,

attendance,

productivity,

discipline

and

general

behavior of Each worker.

2. Payment of bonus calculated 12 % of basic pay linked with
production And productivity as per the mutually agreed scheme to be
paid in the Month of august every year.
3. Retirement age at 58 years.
4. Agreed that in consideration of above benefits being granted by the
management, the workers have agreed to give 20% increase in their

productivity every year in terms of units to meet the market

competition.
5. Agreed

that

every

worker

shall

ensure

better

housekeeping,

maintenance of Machines, fixtures and abide by the discipline. Every

worker will start and stop his work as per the timings fixed by the
management, which, presently are 8:30 A.M to 5:00 P.M with half an
hour lunch break and lea break often minutes. All workers will strictly
adhere to these timings so that production time is not wasted.
6. Agreed that this agreement shall remain in full force from l April, 2005
to 3 lMarch,2009.During this period, the workers shall not raise any
demand involving financial burden on the company.
7. Agreed that by virtue of this agreement any or all agreements executed
in the past shall stand superseded.

DATED

SIGN A TURE

Though the wage policy of the company is better than some other leading concerns of
the city but there is no criterion of fixing wages for the workers in accordance with
the nature of job performed by workers in different sections of the company. In spite
of the fact that adequate safety measures have been provided at all necessary places,
still there are certain jobs that involve a greater amount of risk and still others are
more tiresome. From this point of view, the company has not evaluated the jobs by
their nature but a. minimum wages is given to each worker.

MODE OF PAYMENT OF WAGES

The company fixes the wages of new employees as per (heir capability. The
minimum wages amounted by the government arc simply complied with the
wages are paid on 7th of each month. This rule is subject to, the exception
that a needy employee can take l/3rd of his pay on the 22nd of this month. The
wages are packed in polythene packet by the cashier and given to the
employees at their workplace. A computerized pay slip giving A detail of
wages and - deductions made is also put in that envelope.

VARIOUS CATEGORIES OF WORKERS

In 'ZI' the workers are categorized by keeping in view their skills, experience,
intelligence and behavior etc. the various categories are as follows:1) Unskilled (includes)
mazdoor, etc.

peon, sweeper, helper, watchman, yard

2) Semi skilled (lower)

taper, driver, packers, operator, Assemble etc.

3) Semi-skilled (upper)
4) Skilled

(lower)

turner, supervisor, die-settler, testing, engineer,

etc
5) Skilled (upper)

fitter, foreman, engineer, etc

6) Clerk, ti mekeeper, sales ma n, storekeeper, conductor etc.

7) Accountant, graduate-clerk, assistant-supervisor, car-driver, cashier, steno
t ypist etc.

8) Truck-driver, te mpo- driver, supervisor, stenographer.

DETAILS OF WAGES GIVEN TO UNSKILLED.SEMISKILLED &

SKILLED WORKERS
Table 1.1
AMOUNT AS
ON
1-3-2005
Categories of workers
1) UNSKILLED
2) SEMI-SKILLED (II&A) i.e. lower
3) SEMI-SKILLED (I&B) i.e. Upper
4) SKILLED (II&A) i.e. lower
5) SKILLED (I&B) i.e. upper
6) CLERK. TIMEKEEPER, SALESMEN.
CONDUCTOR ETC
7) ACCOUNTANT, GRADUATECLERK.
ASSIST ANTSUPERVISOR, CAR-DRIVER,
CASHIER.
8)TRUCK,
BUS, TEMPODRIVER, SUPERVISOR,
STENOGRAPHER.

Monthly
2315
2530.65
2431.25
2770.65
2591.25
263 ).05

Daily
88.92
97.27
93'. 37
106.42
99.51
100.26

2751.25

103.34

3049.35

117.12

Recently, increment of rupees 35 has been announced by the government

from 1-3-2005.
Increment is announced two times in a year. Firstly in March and then in
September. But for getting these increments the workers have to satisfy some
conditions as per specified in the memorandum of settlement between the
Employer and workers.

2. It is clear from the table that the increments are given twice in a year,
firstly in the month of march and secondly in September.

ANALYSIS OF TABLE 1.3

1. This table shows the increments given to workers w.e.f. 1st march 1999.

2. Normally this increment procedure was followed twice in a year but it clear from
that no increment was given in 1-9-1999

There was increase of Rs 45/- w.e.f. 1-9-2001 and again there was increase of Rs 45/w.e.f. 1-3-2002 as increment amount was same in both cases.

FACTORS AFFECTING WAGE PAYMENT IN ZI

The company expects all employees to observe compliance of its rules and
regulations to ensure maintenance of discipline and the company's work
culture. Some of the factors governing & influencing the wages of the workers
are as under:

1.

WORKING HOURS : WORKING HOURS IN THE COMPANY

ARE: 8:30 AM TO 5:00 P.M - FOR WORKERS AND ALL THE STAFF
This rule is strictl y folk-wed in the compan y .at 8:30 workers should start
their work. The gate of the compan y closes at 8:30 AM. A worker late b y ten
minutes is ignored but a worker who is late b y more than 10 mi nutes face
deduction in wages.

2.

LUNCH BREAK : Lunch Break is given in two shifts comme ncing

from:13:00 noon to 13:30 for workers and for Supervisors &ManagcriaI Staff. An y
workers

found

before

or

after

lunch

break

roa ming

in

canteen

or

unnecessaril y at an y place is punished.

3.

LEAVE RULES: There are two t ypes of leaves

a) Casual Leaves : An e mplo yee is entitled to 7 da ys casual leave in a ye ar and

he cannot avail the sa me more than 2 leaves at a ti me and that too on giving
2 da ys advance notice before availing the leave. In onl y urgent cases he can
avail

leave and make application thereafter giving reasons to the

specification of the manage me nt. Casual leave cannot be combined with an y

other kind of leave. An e mplo ye e who joins fresh cannot avails an y casual
leave during months of his journe y.

b) Earned Leave:

i)

The entitle me nt of leave is at the rate of one leave after ever y 20 da ys

of actual working.

ii)

Emplo ye e can avail earned leave maxi mu m three ti mes in a ye ar. Onl y
in
exceptional cases the compan y can allow the avail ment of earned
leave
more than three ti mes.

iii)

Emplo ye e concerned has to give 15 da ys advance notice to the

compan y
for availing earned leave.

4.

LEAVE WITHOUT PAY : There is no provision in the law regarding leave

without

pa y or

special

leave.

However

manager

concerned on his

satisfaction about the urgenc y and genuineness grants it in special cases.

Workers not availing leave as per the above guidelines will not be
sanctioned leave and will be marked absent. In this wa y the y will lose
salar y for the weekl y off da y.

5.

WAGES FOR UNA VAILED LEAVE : Unavailcd leave during a financial

ye ar is encashed to all e mplo yees after the close of the financial ye ar at
full rate of basic pa y for casual and earned leaves.

6.

OVERTIME: Overti me pa yme nts are calculated on the basis of number of

unit produced b y the workers who are asked to prepare addition; I
components after working hours.

BONUS: Bonus is declared annually and paid in the month of august cva y year. The

7.

quantum of annual bonus is linked with productivity per the formula evolved by the
representatives of the workers. Against statutory minimum bonus is payable @ 12%
of the basic salary.

ANNUAL INCREMENT: The increments are determined by a wage evaluation

8.

report given by the concerned manager. The increments are generally 5% to 8%

depending on the performance grading given by the manager of the concerned
employee.

9.

PAYMENT DAY AND ADVANCE AGAINST SALARY:

All the employees of the company are paid their wages/salaries on the 7 th of every
month. .

In case of need, every employee of the company is entitled to take an advance of 1/3rd of
his salary on or after the 22nd of the concerned month

INCENTIVE SCHEMES IN "ZI"

To increase the morale of the workers by satisfying their ps ychological, social
and ego needs is very important aspect for the "Zoloto Industries". For this
various incentive schemes are followed by the organization. Sometimes these
incentives are of financial nature and sometimes of non-financial nature.
These are discussed as below:-

FINANCIAL INCENTIVES
Incentives given in monetary terms are called as financial incentives. In ZI
following financial incentives are provided to the workers:1. Group Gratuity Insurance : - All employees with more than one year's
service are insured. With the L.l.C under the group of gratuity schemes.
The benefit of schemes is that in the addition to security gratuity of the
employees during the service, L.l.C will pay gratuity to the heirs that
would have become payable to the decreased employees at the age of 58
years irrespective of the service / age of the employees concerned at the
time of death.
2. Accident Insurance :- All the employees whose duties involve frequent
visit outside the factory and those going with the insurance company for
various amount and the premium is paid by the company.
3. Reimbursement of Medical Expenses : - those employees who are not
covered under employees state insurance arc reimbursed with the
medical expenses at actual but not exceeding 15 days basic salary per
completed financial year.

4. Encashment of Leave :- If the employees does not avail the leave during a financial
year then that un-availed is encashed to all employees after the closing of financial
year.at full rate of basic pay for casual and earned leaves and at half rate for sick
leaves ( where sick leaves are given as per rules)

NON-FINANCIAL INCENTIVES
Non financial incentives are based on psychological needs of the workers. The non financial
incentives provided in ZI are as follows:-

1. Suggestion Schemes :- A suggestion scheme is in vague in the company and the

employees are encouraged to give their valuable suggestions in following areas are as:Improvement in production methods resulting in saving of labour and material.

Productivity

Quality Improvement

Improvement of industrial relations viz relations between workers -supervisor and

supervisors - managers

Safety

Check of pilferage

Saving of power / f u l l

Administrative points

By these scheme workers have a feeling of importance i n the company.

2. Promotional Avenue :- After every three years the designation of each and every
worker is changed, they are well promoted after a specified period of time which
shows that there are good chances of promotion in the organization. While doing
survey, it was found that 48% of the workers were satisfied with the promotional
avenue of the organization. 14% rank promotional avenue as very good, 34% ranks
good and 4% said it is excellent.
3. Better Working Conditions :- Workers have neat and clean machines, tools and
other equipment, neat working place with all the necessary things needed while
working. These working conditions refresh the workers and they do their work in a
better way. While doing survey. (came to know that each and every worker was
satisfied with the working conditions provided to them.

4. Labour Welfare Activities : - Various labour welfare activities are introduced in

the company for workers so as to give them some benefits in excess of wages paid to
them by the organization.

5. Recognition of Good Work : - Good work is fully recognized by the management.

Each and every worker who performs his job honestly and is always ready to do any
kind of work for achieving organizational goals is duly recognized by the management
of the company. Sometimes rewards are also given in recognition of good work done
by them.

6. Timely Training : - In ZI training programs are held time to time. So as to upgrade

the knowledge and skills of the workers. This training is helpful in increasing the
efficiency of the workers. This training program increases the value of human
resources which in itself is a plus point of company.

7. Latest Facilities Associated With Job: - Workers are provided with the latest
facilities associated with the job either physical or technical. Latest
machines, tools are provided to them so as to lower the cost of
production, facilitate the job of workers and make company product up
to date.

8. Personal Interaction of Management with Workers: - Management personally

interacts with the workers, ..Workers interest is fully considered while
taking any decision. They are aware of each and every happening in the
organization. In case of any problem management personally interacts
with workers.

Ahuja K.K

Personnel Management

Memoria, C.B.

Personnel Management

Sood, S.K. &

Kapoor

Principles & Practices of

Management

Flippo, Edwin. B.

Personnel Management

Tripathi, P.C

Personnel Management
& Industrial Relations