COMPENSATION MANAGEMENT IN

SJVN

PROJECT REPORT
Submitted in fulfillment for the Award of the Degree of
Master of Business Administration
(YEAR 2012-2014)

Supervised by: Submitted by:

Mr Anurag Bhardwaj Preshika Thakur
Sr. Officer MBA IInd SEMESTER
Wjmba12443

1
 DECLARATION
I Preshika thakur hereby declare at the project work entitled
“COMPENSATION MANAGEMENT IN SJVNL” is an
authenticated work carried by me at SJVN Limited Corporate
Office Shilma under the guidance of Mr Anurag Bhardwaj for the
award of the degree of Master of Business Administration & this
work has been submitted to Banasthali University, Rajasthan.

(Preshika Thakur)
MBA IInd SEMESTER

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 PREFACE
As a part of course curriculum of Master of Business Administration I
was asked to undergo 4-6 weeks summer training in any organization so
as to give me exposure to practical management to get me familiar with
various activities taking place in the organization have put my sincere
efforts to accomplish my objectives within the stipulated time. Despite
all limitations, obstructs, hurdles and hindrances, I have toiled and
worked to my optimum potential to achieve desired goals. Being
neophytes in the highly competitive world of business. I came across
some difficulties to make my objective a reality. Anyhow with the kind
of help and genuine interest and the guidance of my supervisor. I am
presenting this hand carved effort. I tried my level best to conduct a
research to gain a thorough knowledge about the project on topic,
“compensation management in sjvnl”. I put the best of my efforts and
have also tried to be justice with available. If anywhere something is
found unacceptable or unnecessary to the theme; you are welcomed with
your valuable suggestions.
Thanks and regards,
Yours sincerely
Preshika Thakur

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 ACKNOWLEDGEMENT
I feel deeply in debted towards people who have guided me in this
project. It would have not have been possible to make such an
extensive report without the help, guidance and inputs from them.
Most of my information source has been from SJVN HR Manual
and magazines related to hydro electric power project
I would firstly like to express my gratitude towards my
teachers for having shown so much of flexibility & guiding in
such a way that I was really learning the subject all the time. They
helped me in deciding the project topic. They showed a lot of
openness in their approach and I would like to thank them for their
support in a way that has lead to proper & effective learning.
Secondly I would like to thank Mr. Anurag
Bhardwaj(Sr.Officer), Mr.Shallinder (Dy.Gen.Manager), Mr
Gaurav Sood (Officer)my mentors of SJVNL for spending their
precious time for my project and giving me ample of good ideas
about the project.
Last but not least I am grateful to all my family members &
my friends for being my side always. Without their help and
Motivation it would have been impossible to complete my project.

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 TABLE OF CONTENTS
CHAPTER 1 7
EXECUTIVE SUMMARY

CHAPTER 2 8-16
INTRODUCTION TO THE COMPENSATION MANAGEMENT

2.1 COMPONENTS OF COMPENSATION SYSTEM

2.2 TYPES OF COMPENSATION

2.3 IMPORTANCE OF COMPENSATION

2.4 COMPENSATION MANAGEMENT: RECENT TREND

CHAPTER 3 17-18
OBJECTIVES

CHAPTER 4 19
RESEARCH METHEDOLOGY

CHAPTER 5 20-21
INDUSTRY PROFILE

CHAPTER 6 22-36
COMPANY PROFILE
6.1 P & A DEPARTMENT AT SJVN
6.2 PROJECTS UNDERTAKEN BY SJVN
6.2 AWARDS AND ACHIVEMENT
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CHAPTER 7 37-38
LITRATURE REVIEW

CHAPTR-8 39-65
COMPENSATION MANAGEMENT IN SJVN

8.1 COMPENSATION PACKAGE

8.2 NEED SATISFACTION FACTOR

8.3 RETATION FACTOR

8.4 MOTIVATION FACTOR

CHAPTER-9 65-77
ANALYSIS AND INTERPRITATION

CHAPTER 10 78-81
CONCLUSION AND RECOMMENDATIONS
10.1 CONCLUSION
10.2 RECOMMENDATIONS
10.3 FINDINGS
10.4 LIMITATIONS

BIBLIOGRAPHY

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 CHAPTER-1 EXECUTIVE SUMMARY

In the scenario of competitive business environment, it has become important for a

management student to equip himself/herself with the practical exposure of the
corporate world. It was great privilege for me to understand the practical HR
aspects learnt in our college classroom at sjvn in regards to this project I was asked
to analyze the compensation package in SJVN.

SJVN has a long-standing commitment to pay for performance. SJVN

compensation management programs evolve and are adjusted over time to support
SJVN’s business goals and promote both short- and long-term profitable growth of
the company. Cash compensation consists primarily of payments under annual
incentive cash plan that are based on relative and absolute financial performance,
company performance relative to operational goals, and individual performance.
Total compensation for each executive officer varies with individual performance
and SJVN’s performance in achieving financial and non-financial objectives.

This report summarizes the empirical and theoretical research on compensation

management and provides a comprehensive and up-to-date description of pay
practices (and trends in pay practices) . Topics discussed include the level and
structure of Employee pay (including detailed analyses of annual bonus plans,
executive stock options, and option valuation), the pay-setting process, Different
benefits, facilities provided by the company to make their employees more
motivated and to make their best talent retain in the company.

It was analyzed that the employees were fully satisfied in respect to their increment
in their salary package.

An online interview and telephonic interview was being conducted and

questionnaire was being distributed accordingly.

The feedback of the respondents was being up to mark and a positive response was
being carried out.

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 CHAPTER-2COMPENSATION MANGEMENT
AN INTRODUCTION

Definition
Compensation is a systematic approach to providing monetary value to employees
in exchange for work performed. Compensation may achieve several purposes
assisting in recruitment, job performance, and job satisfaction
Compensation is payment in the form of hourly wages or annual salary combined
with benefits such as insurance, vacation, stock options, etc. that can positively or
negatively affect an employee's work performance.
An ideal compensation management system will help you significantly boost the
performance of your employees and create a more engaged workforce that’s
willing to go the extra mile for your organization. Such a system should be well-
defined and uniform and should apply to all levels of the organization as a general
system.. Plus you’ll enjoy clearer visibility into individual employee performance
when it comes time to make critical compensation planning decisions.
With effective compensation management you’ll also enjoy clearer visibility
into individual employee performance when it comes time to make critical
compensation planning decisions. These performance appraisals assist in
determining compensation and benefits, but they are also instrumental in
identifying ways to help individuals improve their current positions and
prepare for future opportunities.

 2.1 Components of Compensation System

Compensation systems are designed keeping in minds the strategic goals and
business objectives. Compensation system is designed on the basis of certain
factors after analyzing the job work and responsibilities. Components of
compensation system are as follows:
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  2.2 Types of Compensation
Compensation provided to employees can direct in the form of monetary benefits
and /or indirect in the form of non-monetary benefits known as perks, time off, etc.
Compensation does not include only salary but it is the sum total of all rewards and
allowances provided to the employees in return for their services. If the
compensation offered is effectively managed, it contributes to high organizational
productivity.

Direct Compensation:

Direct compensation refers to monetary benefits offered and provided to

employees in return of the services they provide to the organization. The monetary
benefits include basic salary, house rent allowance, conveyance, leave travel
allowance, medical reimbursements, special allowances, bonus, Pf/Gratuity, etc.
They are given at a regular interval at a definite time.

 Basic Salary
Salary is the amount received by the employee in lieu of the work done by him/her
for a Certain period say a day, a week, a month, etc. It is the money an employee
receives from His/her employer by rendering his/her services.

 House Rent Allowance

Organizations either provide accommodations to its employees who are from
different state or country or they provide house rent allowances to its employees.
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This is done to provide them social security and motivate them to work.

 Conveyance
Organizations provide for cab facilities to their employees. Few organizations also
provide vehicles and petrol allowances to their employees to motivate them.

 Leave Travel Allowance

These allowances are provided to retain the best talent in the organization. The
employees are given allowances to visit any place they wish with their families.
The allowances are scaled as per the position of employee in the organization.

 Medical Reimbursement
Organizations also look after the health conditions of their employees. The
employees are provided with medic-claims for them and their family members.
These medic-claims include health-insurances and treatment bills reimbursements.

 Bonus
Bonus is paid to the employees during festive seasons to motivate them and
provide them the Social security. The bonus amount usually amounts to one
month’s salary of the employee.

 Special Allowance
Special allowance such as overtime, mobile allowances, meals, commissions,
travel Expenses, reduced interest loans; insurance, club memberships, etc are
provided to Employees to provide them social security and motivate them which
improve the Organizational productivity.

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INDIRECT COMPENSATION

Indirect compensation refers to non-monetary benefits offered and provided to

employees in lieu of the services provided by them to the organization. They
include Leave Policy, Overtime Policy, Car policy, Hospitalization, Insurance,
Leave travel Assistance Limits, Retirement Benefits, Holiday Homes.

 Leave Policy
It is the right of employee to get adequate number of leave while working with the
organization. The organizations provide for paid leaves such as, casual leaves,
medical leaves (sick leave), and maternity leaves, statutory pay, etc.

 Overtime Policy
Employees should be provided with the adequate allowances and facilities during
their overtime, if they happened to do so, such as transport facilities, overtime pay,
etc.

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  Hospitalization

The employees should be provided allowances to get their regular check-ups, say
at an interval of one year. Even their dependents should be eligible for the medical
-claims that provide them emotional and social security.

 Insurance
Organizations also provide for accidental insurance and life insurance for
employees. This gives them the emotional security and they feel themselves valued
in the organization.

 Leave Travel
The employees are provided with leaves and travel allowances to go for holiday
with their families. Some organizations arrange for a tour for the employees of the
organization. This is usually done to make the employees stress free.

 Retirement Benefits
Organizations provide for pension plans and other benefits for their employees
which benefits them after they retire from the organization at the prescribed age.

 Holiday Homes
Organizations provide for holiday homes and guest house for their employees at
different locations. These holiday homes are usually located in hill station and
other most wanted holiday spots. The organizations make sure that the employees
do not face any kind of difficulties during their stay in the guest house.

 Flexible Timings
Organizations provide for flexible timings to the employees who cannot come to
work during normal shifts due to their personal problems and valid reasons.

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 2.3 IMPORTANCE OF COMPENSATION

Compensation and Reward system plays vital role in a business organization.

Since, among four Ms, i.e. Men, Material, Machine and Money, Men has been
most important factor, it is impossible to imagine a business process without Men.
Every factor contributes to the process of production/business. It expects return
from the business process such as rent is the return expected by the landlord,
capitalist expects interest and organizer i.e. entrepreneur expects profits. Similarly
the labor expects wages from the process.

Labor plays vital role in bringing about the process of production/business in

motion. The other factors being human, has expectations, emotions, ambitions and
egos.

Labor therefore expects to have fair share in the business/production process.

Therefore a fair compensation system is a must for every business organization.

The fair compensation system will help in the following:

 An ideal compensation system will have positive impact on the efficiency

and results produced by employees. It will encourage the employees to
perform better and achieve the standards fixed.
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 It will enhance the process of job evaluation. It will also help in setting up an
ideal job evaluation and the set standards would be more realistic and
achievable.

 Such a system should be well defined and uniform. It will be apply to all the
levels of the organization as a general system.

 The system should be simple and flexible so that every employee would be
able to compute his own compensation receivable.

 It should be easy to implement, should not result in exploitation of workers.

 It will raise the morale, efficiency and cooperation among the workers. It,
being just and fair would provide satisfaction to the workers.

 Such system would help management in complying with the various labor
acts.

 Such system should also solve disputes between the employee union and
Management.

 The system should follow the management principle of equal pay.

 It should motivate and encouragement those who perform better and should
provide opportunities for those who wish to excel.

 Sound Compensation/Reward System brings peace in the relationship of

employer and employees.

 It aims at creating a healthy competition among them and encourages

employees to work hard and efficiently.

 The system provides growth and advancement opportunities to the deserving

employees.

 The perfect compensation system provides platform for happy and satisfied
Workforce. This minimizes the labor turnover.
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 The organization is able to retain the best talent by providing them adequate
compensation thereby stopping them from switching over to another job.

 The business organization can think of expansion and growth if it has the
support of skillful, talented and happy workforce.

 The sound compensation system is hallmark of organization’s success and

prosperity. The success and stability of organization is measured with pay-
package it provides to its employees.

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2.4 COMPENSATION MANAGEMENT: RECENT TREND
Compensation or remuneration in general terms means direct wages, salaries, or allowances
given to the work force of the business organization. Compensation management or wage and
Salary administration refer to establishment and implementation of sound policies and practices
of employee compensation considering the worth of concerned employee and concerned job. It
includes such areas as job evaluation, surveys of wage and salaries, analysis of relevant
organizational problems, development and maintenance of wage structure, establishing rules for
Administering wages, wage payments, incentives, profit sharing, wage changes and adjustments,
supplementary payments, control of compensation costs and other related items.
Contingent factors in compensation plan:

Internal factors External factors

1. Organizational strategy and attitude 1. Nature of Hr market.
2. Organizational culture. 2. Cost of living
3. Nature and worth of job. 3. Employee union.
4. Capacity to pay. 4. Legal framework
5. Nature of human resource 5. Socio-economic factors

COMPENSATION MANAGEMENT: IN INDIAN SCENARIO

With the technological developments taking place at a higher rate, the salary
packages are too increasing at a much higher rate. Pay packages in India have
witnessed an increase of more than 14% in 2006 over last year’s salary packages.
The compensation package comprises of monetary and non-monetary benefits that
includes salary, special allowances, house rent allowance, travel allowance, mobile
allowance, employee stock options, club memberships, accommodations,
retirement benefits and other benefits.

Globalization is being considered as the cause for such salary hikes. The
establishment of multinational companies and privatization has led the Indian
industry to witness higher salary package. With the immense competition of
attracting and retaining talented human resource, compensation package is the only
motivation factor available with the organizations be it Indian origin organizations
or foreign-owned multinationals.

With the high attrition rate organizations are increasing their salary packages to
attract and retain talented human resource. In the race, India has begged first
position followed by Lithuania and China

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 CHAPTER-3 OBJECTIVES
Today there is a lot of talk about compensation, its cost to the organization and the
company's return on its compensation investment. As a result, a variety of new pay
systems have been developed, each with its own objectives, benefits and risks.
Some companies have already installed new pay plans, and many more are
considering it. Strategic compensation planning allows an organization to focus
on its strategic objectives and develop a comprehensive plan, considering base
pay, short- and long-term incentives, benefits and growth opportunities. This
kind of planning helps ensure that the compensation system will support the
organization's long-and short-term objectives without overlap, which would
have more than one pay plan driving the same objectives.

An organization's compensation program focuses on two major objectives. First,

it must identify the right pay programs to recognize and reward desired behaviors.
Second, it must decide how to organize work procedures to make the best use of
available resources.

Primary Objective

 To find out how it helps the organization to free from employee

dissatisfaction and also prevail lively environment inside the organization.

 To find out the effect of compensation policy at SJVN.

 To know the different compensation strategies adopted by SJVN LMT.

 To understand how Compensation management helps the organization to

achieve strategic success.

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Secondary Objective

 To understand the nature and characteristics of COMPENSATION

MANAGEMENT
 To know the various types of compensation schemes provided by the SJVN
LMT.
 How it helps to retain the current and efficient employees.

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CHAPTER-5 RESEARCH METODOLOGY

The methodology being used involves two basic sources of information primary
sources and secondary source
In order to know the satisfaction of the employees working in this organization one
set of Questionnaire was administered to the employees (both officers and non
officers) working in this organization

RESEARCH DESIGN

In order to understand the satisfaction of the Employees from compensation

management a brief conversation was done with the employers and a survey was
done through online basis.

Primary sources of Information

 Meetings and discussion with the General Manager and the Senior Manager
of personnel & administration department

Data Collection through Questionnaire: (QUANTITATIVE RESEARCH)

Primary data have been collected personally from the respondents through
questionnaire. The respondent includes both the officers as well as the non officers
of every department working in this organization and analysis on the basis of their
working period. The respondents have been asked to fill up the questionnaire and
more over data collection process also includes oral interview.

Secondary sources of Information

 HR Manual and Internal Circulars of the Organization
 Research papers, power point presentations and PDF files prepared by the
Organization and its related official

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 CHAPTER-6 THE INDUSTRY PROFILE
THE INDIAN HYDRO ELECTRIC POWER INDUSTRY
The last decade has seen many positive developments in the Indian Hydro Electric
Industry. The growth in the Indian Hydro Electric Industry has been more
qualitative than quantitative and it is expected to remain the same in the coming
years.
India was the 7th largest producer of hydroelectric power in 2008 after Norway:
114 TWh and 3.5% the world total in 2008. The potential for hydroelectric
power in India is one of the greatest in the world.
In this system of power generation, the potential of the water falling under
gravitational force is utilized to rotate a turbine which again is coupled to a
Generator, leading to generation of electricity. India is one of the pioneering
countries in establishing hydro-electric power plants. The power plants
at Darjeeling and Shimsha (Shivanasamudra) were established in 1898 and 1902
respectively and are among the first in Asia.
India is endowed with economically exploitable and viable hydro potential
assessed to be about 84,000 MW at 60% load factor. In addition, 6780 MW in
terms of installed capacity from Small, Mini, and Micro Hydro schemes have been
assessed. Also, 56 sites for pumped storage schemes with an aggregate installed
capacity of 94,000 MW have been identified. It is the most widely used form of
renewable energy. India is blessed with immense amount of hydro-electric
potential and ranks 5th in terms of exploitable hydro-potential on global scenario.
The present installed capacity as on 30-06-2011 is approximately 37,367.4
MW which is 21.53% of total Electricity Generation in India.
The public sector has a predominant share of 97% in this sector. Following are the
organization which deals in hydro electric power
• National Hydroelectric Power Corporation (NHPC)
• Northeast Electric Power Company (NEEPCO)
• Satluj jal vidyut nigam (SJVNL)
• Tehri Hydro Development Corporation
• NTPC-Hydro
These are few public sector companies engaged in development of
Hydroelectric Power in India.
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Bhakra Beas Management Board (BBMB), illustrative state-owned enterprise in
north India, has an installed capacity of 2.9 GW and generates 12000-14000 MU
per year. The cost of generation of energy after four decades of operation is about
20 paise/kWh.] BBMB is a major source of peaking power and black start to the
northern grid in India. Large reservoirs provide operational flexibility. BBMB
reservoirs annually supply water for irrigation to 12.5 million (12.5 million) acres
of agricultural land of partner states, enabling northern India in its green
revolution.

MAJOR HYDRO ELECTRIC POJECTS IN INDIA

Station State Operator
Uri Hydroelectric Jammu & NHPC
Dam Kashmir
Tehri Dam Uttarakhand THDC INDIA
LMT
Teesta-V Sikkim NHPC
Tanakpur Uttarakhand NHPC
Srisailam Dam Andhra Pradesh AP GENCO
Sharavathi Karnataka KPCL
Sardar Sarovar Gujarat SSNNL
Salal Jammu & NHPC
Kashmir
Rangeet Sikkim NHPC
Pong Himachal Pradesh BBMB
Omkareshwar Madhya Pradesh NHPC
Nathpa Jhakri Himachal Pradesh SJVNL
Karcham Himachal Pradesh JAYPEE GROUP
Wangtoo

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 CHAPTER 6- COMPANY PROFILE
An Introduction
SJVN Limited, a Mini Ratna & Schedule 'A' Central PSU under the Ministry of
Power, Govt. of India, is a joint venture between the Govt. of India & Govt. of
Himachal Pradesh. Incorporated in the year 1988, the Company is emerging as a
major power player in the country. The present authorized capital of SJVN is `
7000 crores.
Beginning with single project, the Company is presently implementing hydro
electric projects in the states of Himachal Pradesh, Uttrakhand and the
neighboring countries viz. Nepal and Bhutan. After achieving great success in
hydro power development, SJVN is now venturing in the field of Thermal and
Wind Power Generation.
SJVN has thus expanded its horizons and envisions developing itself into a fully-
diversified Transnational Power Company in all types of conventional and non-
conventional forms of energy.
The present installed capacity of SJVN is 1500 MW. The capacity addition under
execution by the Corporation during the forthcoming five year plan is 4952 MW
(412 MW Rampur HEP in H.P. and 47.6 MW Khirvire Wind Power project in
Maharashtra under construction and 4492 MW under various stages of
investigations/clearances).
SJVN is committed to generating reliable and eco-friendly power by means of
State of Art Technology, excellence in engineering and continual improvement in
quality management. SJVN, as an IT savvy Corporation has established and is
following sound business, financial and regulatory policies. SJVN believes that
employees are its most valuable assets and has evolved a growth oriented Human
Resources Development Strategy.

Vision
To make India a fountainhead of hydro power and the energy source of the future
by reorganizing development with passion and professionalism for sustainable
viability of the Corporation on bedrock of sound commercial principles.
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Mission
To plan, investigate, organize, execute, operate and maintain hydropower projects
in the Satluj river basin in Himachal Pradesh and at any other place in India &
abroad.

Objectives
In the pursuit of above mission, the company had set for itself the following
Corporate Objectives:
• Operating and maintaining power stations with maximum performance
efficiency.
• Establishing and following sound business, financial and regulatory
policies.
• Taking up of other hydro power projects.
• Completion of the new projects allocated to SJVN in an efficient and cost
effective manner.
• Use of the best project management practices for the project
implementation by applying latest universally accepted project
management techniques, and by enabling its engineers to become
certified project managers through further trainings.
• Dissemination of available in-house technical and managerial expertise to
other utilities/projects.
• Creating work culture and work environment conducive to the growth
and development of both the organization and the individuals through
introduction of participative management philosophy.
• Fulfilling social commitments to the society. Achieving constructive
cooperation and building personal relations with stakeholders, peers, and
other related organizations.
• Striving for clean and green project environment with minimal ecological
and social disturbances.
• To strive for acquiring Nav Ratna Status.
6.1 PERSONNEL & ADMINSTRATION
DEPARTMENT AT SJVN

Different Sections Comes Under This Department

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  RESETTLEMENT AND REHABILITATION SECTION

Definition: - Resettlement and Rehabilitation is the act or instance of settling

or being settled in another place

This section take cares in resettlement and rehabilitation of its Project Affected
Families (PAFs) whose land, house and other assets have been acquired or source
of livelihoods have been affected. It has formulated and adopted exhaustive R&R
plans which are being vigorously implemented in its Projects. The basic objective
of the R&R Plans is to increase the socio-economic standards of the PAFs or at
least retain their previous standards. Major components of the plans are, providing
alternative agricultural land, suitable constructed house or cash assistance for
construction of house, employment, financial assistance for self employment and
various infrastructural facilities in their rehabilitated areas.

 RECRUITMENT SECTION

Definition: - Recruitment refers to the process of attracting, screening,

selecting, and on boarding a qualified person for a job.

Recruitment activities are centralized at Corporate Centre and are undertaken by

Corporate Recruitment Group. However, with the prior approval of the Appointing
Authority, recruitment to non-executive posts may be carried out by Project
Personnel Department also.

SOURCES OF RECRUITMENT:
Recruitment shall be in adherence to the overall manpower budget and will be
made only against the sanctioned posts. Once the manpower requirement is
finalized, recruitment process starts with advertisement/notification of posts
depending upon

PROCEDURE
 Planning For Advertisement:
 Window Advertisement:
 Publication Of Advertisement:
24
  Notification To The Employment Exchanges :
 Receiving/Registration Of Applications :
 Screening Of Applications :
 Proposal For Holding Of Written Test / Interview :
 Written Examination :
 Question Paper Setting:
 Question Paper Printing:
 Data Processing And Issuance Of Roll Number & Call Letters:
 Conduct Of Exam:
 Evaluation Of Answer Sheet:
 Declaration Of Result:
 Constitution Of Selection Board / Committee:
 Despatch Of Call Letters Intimation To The Interview/Selection
Committee Members :
 Preparation For Interview :
 Selection
 Criteria For Assessment:
 Group Discussion:
 Personal Interview:

 INDUSTRIAL RELATION & WELFARE SECTION

Definition Industrial Relation: - the relationship between the employers and

employees and trade unions is called Industrial Relations

Definition Welfare: - Statutory procedure or social effort designed to

promote the basic physical and material well-being of people in need
.
IR & WELFARE section is doing great job when it comes to their work

Some of the following duties undertaken by them

 To establish contacts and hold consultations with a view to maintaining

harmonious relations between the factory management and workers

 To bring to the notice of factory management, the grievances of workers,

individual as well as collective, with a view to securing their expeditious
25
 redress and to act as a Liaison Officer between the management and labor25
 To study and understand the point of view of labor in order to help the
factory management to shape and formulate labor policies and to interpret
these policies to the workers in language they can understand

 MAN POWER PLANNING SECTION

Definition: - Estimating or projecting the number of personnel with

different skills required every time or for a project, and detailing how and
when they will be acquired

The management is estimating the structure of the organization at a given point in

time. For this estimate, the number and types of employees needed have to be
determined. This determination is affected by many environmental factors viz.,
business forecasts, expansion and growth, design and structural changes,
management philosophy, government policy, product and human skills mire and
competition. After estimating the future organization structure the next step is to
draw up the requirements of human resources, both for existing departments and
for new vacancies. In determining the requirements of human resources, the
expected losses due to labor turnover dismissals, promotions, layoffs etc. should be
considered.

 Establishment section
This department basically is concerned with the implementation of all the policies
and rules/regulations of the organization. The care is taken about the various
allowances and advances. It’s made sure that the person is getting the benefits to
which he is entitled at the right time and easily. This department looks after the
entire working life of an employee. Right from joining the organization till
separation. The basic areas which are looked after by this department are
promotions, transfers and career progression etc. Promotions could be merit or
seniority based but the most essential condition is the availability of vacancy.

26
The basic four requirements for it are merit, vacancy, eligibility and seniority.

The various advances/ allowances given to employees are:

• Computer advance

• Furniture advance

• LTC

• Medical benefits

• Insurance

• Building advance

• Conveyance

 Corporate Communication Section

Definition: - Corporate communication is the set of activities involved in

managing and orchestrating all internal and external communications aimed
at creating favorable point-of-view among stakeholders on which the company
depends

This department remains in touch with all other departments and making of plans
is done by it and it also makes sure that plans are being implemented at the right
time and in the right way. Budget is one of the important topics which are looked
after by this department. The main aim of this department is image building of
organization through the means of effective publicity, which is done through
different mediums of press (print, electronic media). This department plays a
significant role in giving the society prior information about its various projects
and other information which is of social interest. This department also deals with
the advertisements which are to be published in public i.e. tender notices for
project work, recruitment notices and corporate advertisements.
27
In addition to all these important works this department also lays significant
importance towards image building. It also keeps all its employees aware about the
various amendments, achievements, departmental information through the medium
of printing diaries, booklets, brochures, calendars etc.

There are various functions of the corporate communication department, which

are

 Printing a monthly magazine called Satluj Samachar and a bi-monthly one

called SatlujVani.
 They also air a radio show on AIR named SatlujVani.
 The department designs corporate advertisements for the company
through various agencies.
 They process tender notices from procurement department.
 The department also gets material such as diaries, greeting cards, calendars
etc. printed.
 They participate in the India-International trade fair.
 They also take part in the India Electricity fair.
 The department also prepares the annual report.
 They also take out brochures regarding public relations.

 Law section

Definition: - law is a system of rules and guidelines which are enforced

through social institutions to govern behavior.
The department deals with handling of cases, notices issued, vetting of documents,
providing legal opinion, liaising with advocates, drawing up contracts, interacting
with Trade Unions etc. 28
The department also deals with the following:

1. Bids: Biddings can be of following types:

· Financial bid
· Technical bid
· General bid

2. Service matters: Law department handles various service matters like transfers,
promotion, increments, suspension etc.

3. Disciplinary matters: It conduct rules

For suspension: small punishment is given.

Dismissal: the person is never allowed to join the organization again.

Legal opinions are given to people from time to time so that problems are solved
right at the root level. Dispute resolution board is also there which has got retire
judges or Industrialists as its members. After it arbitration councils are there which
help in solving the disputes. Settlement out of court is yet another way used to
solve the problems. District courts, High courts and Supreme courts are there to
solve the disputes but it is always preferred to solve the dispute at the lowest level
and SJVNL also believes in it.

 Policy section

Definition: - A policy is a principle or rule to guide decisions and achieve

rational outcomes

The department is closely related with the establishment department.

29
Policy formulation in PSU’s is 20 based on government guidelines. Policies are
related to: Procurement of employees-job analysis, qualification, experience, and
age, if need be physical aspect, for selection –interview, group discussion and
written test. Service conditions-for workmen (industrial employment or standing
order act) expectations are included of both employee and employer regarding
conduct and behavior and training and promotion, etc. Along with the above one of
the most important functions of the department is the implementation of Balanced
Score Card.

 Training Section:

Definition: - Training and development is the field which is concerned with

organizational activity aimed at bettering the performance of individuals and
groups in organizational settings

SJVNL believes that employees are its most valuable assets and has evolved
growth oriented human resources development strategy.
Empowerment of manpower skills through training receives utmost importance
every time. The company has well established strategy for imparting training to the
employees for good working.
The training imparted is two dimensional i.e. in house training and through
external professional institutions as well. The company also facilitates the
professional candidates of various institutions for undergoing vocational training in
the organization. This department is of significant importance in SJVNL because it
is interrelated to almost all the other departments of the organization. It takes care
of a trainee from the moment he passes the exams and is short listed for training.30

30
 6.2 PROJECTS UNDERTAKEN BY SJVN

 Nathpa Jhakri Hydro Power Station (NJHPS)

SJVN is presently operating the country's largest 1500 MW Nathpa Jhakri Hydro
Power Station (NJHPS) in Himachal Pradesh which has been recognized as an
engineering marvel.
Salient Features
• A 62.50 m high concrete Dam on Satluj River.
• World's largest underground Desalting complex comprising four
Chambers (each 525 m long, 16.31 m wide and 27.5 m deep).
• Head Race Tunnel of 27.39 m length with die of 10.15 m.
• 301 m deep Surge Shaft (deepest in the world).
• Underground Power House with a cavern size of 222 m x 20 m x 49 m
having six Francis Turbine Units of 250 MW each.

 Rampur Hydroelectric Project

The Rampur project with a generation potential of 412 MW is located on River

Satluj in Shimla & Kullu districts of Himachal Pradesh. The project has the
potential to generate 1770 million units of electricity each year. The project is
designed as a cascade run of river to India’s largest 1500 MW Nathpa Jhakri plant.
Salient Features
• A head race concrete lined tunnel of 15.177 km length .
• A 165 meter deep 38 meter dia. surge shaft.
• A 54 meter long 10.50 meter dia., tail race tunnel with an open channel.

 Luhri Project

The Luhri Project with a generation potential of about 600 MW is located on River
Satluj in Shimla, Kullu & Mandi districts of Himachal Pradesh.
The project is designed as a standalone run of the river scheme.
31
  Dhaulasidh Project

The Dhaulasidh Project with a generation potential of 66 MW is located on River

Beas, part of the Indus basin, in Hamirpur district of Himachal Pradesh in North
India. The project is designed as a run of river scheme with a small live storage to
be utilized for peaking power during the lean season.
The Dhaulasidh project design holds potential of generating 264.59 million units of
electric energy each year.
Salient Features
• A 70.75 meter high concrete dam that would be 195.14 meters long at the
top.
• Dam toe surface power house on the left bank with two 33 MW
generating vertical shaft Francis turbines.
• A tail race channel of 69 meters length and 15 meters wide

 Devsari Project

The Devsari project with a generation potential of 252 MW is located on River

Pinder, on Ganga basin, in Chamoli district of Uttarakhand state in North India.
The project is designed as a standalone run of the river scheme.
The Devsari project has the potential to generate 913.42 million units of electricity
each year.

Salient Features
• A 35 meter high concrete gravity dam across Pinder River.
• An underground desilting chamber.
• A 78 meter high and 21.5 meter wide surge shaft.
• A 240 meter long and 8.5 meter dia. tail race tunnel

 Naitwar Mori Project

The Naitwar Mori Project with a generation potential of 60 MW is located on
River Tons, a major tributary of River Yamuna on the Ganga basin, in Uttarkashi
district of Uttarakhand.
The project is designed as a standalone run of the river scheme.
32
The Naitwar Mori project has the potential to generate 265.5 million units of
electricity each year.

Salient Features
• 30.5 meter high concrete barrage dam near Naitwar village.
• An intake approach tunnel with twin chambered de-silting tank of 130
meters length, 25 meters wide and 13.5 meters deep.
• A 4.313 m long head race tunnel of 5.6 meters dia. that terminates into the
surge shaft.

 Jakhol Sankri Project

The Jakhol Sankri Project with a generation potential of 51 MW is located on

River Supin, a tributary of River Tons and part of River Yamuna on the Ganga
basin, in Uttarkashi district of Uttarakhand state in North India.
The project is designed as a standalone run of the river scheme.
The Jakhol Sankri project has the potential to generate 216.261 million units of
electricity each year.

Salient Features
• A 13 meter high concrete gated barrage dam near village Jakhol.
• An intake approach tunnel with an underground de-silting tank with twin
chambers of 100 meters length, 12 meters wide and 12.27 meters deep.
• A 6.625 km long head race tunnel of 3 meters dia that terminates into the
surge shaft.

 Arunachal Pradesh Hydro Projects

The Government of Arunachal Pradesh in January 2012 assigned to SJVN the task
of carrying out survey, investigation and preparing the Pre-Feasibility Reports
(PFR) for three projects, namely Ranganadi Stage-ll, Kameng-I & Doimukh
Projects. SJVN was also assigned the task of surveying and investigation Si River
Basin in Jan. 2012.
SJVN has completed the preparation of Pre-Feasibility Reports (PFRs) for 60 MW
Ranganadi Stage-ll, 378 MW Kameng-I and 80 MW Doimukh Projects in a record
time of six months.
33
SJVN has also submitted Expression of Interest for execution of 60 MW
Ranganadi Stage-II and 80 MW Doimukh Projects.

 PROJECTS IN BHUTAN

Kholangchu HE Project (600MW) & Wangchu HE Project (570MW)

Ministry of Power, Government of India entrusted the work of preparation of DPR

of Kholangchu Hydroelectric Project and Wangchu Hydroelectric Project to SJVN
in December, 2010.
SJVN has already completed the required survey and investigation works of both
these projects and prepared the DPR of Kholangchu Project for an installed
capacity of 600 MW and that of Wangchu Project for an installed capacity of
570MW within deadlines set therefore.

Both DPRs have been submitted to CEA for their techno economic appraisal.

These projects are proposed for implementation in joint venture with Druk Green
Power of Bhutan.

 PROJECT IN NEPAL

Arun-3 HEP, Nepal

SJVN is the first CPSU to secure a Hydropower Project outside India in open
competition. Memorandum of Understanding (MoU) between Govt. of Nepal and
SJVN was signed on March 02, 2008. As per the MoU, GoN agreed to grant the
licenses for generation and transmission of electricity to SJVN for the development
and operation of the Project for a period of thirty (30) years from the date of
issuance of such licenses on Build, Own, and Operate and Transfer (BOOT) basis.
The power generated from the project would be evacuated by construction of 400
KV Double Circuit line from Arun – 3 Power House to Muzzaffarpur (India) via
Dhelkebar (Nepal).
Arun-3 Hydropower Project (900 MW) is a run of the river scheme and Merchant
Power Project located on Arun River in Sankhuwasabha District of Eastern Nepal.
34
The project is located on Arun River, a principal tributary of Sapt Koshi, near Num
village of Sankhuwashabha District in Nepal. Access to the project site lies from
left bank through Jogbani-Biratnagar- Mude route.

 Buxar Thermal Power Project (1320 MW)

SJVN is now also venturing into Thermal Power generation. Government of Bihar
has allotted 1320 MW Buxar Thermal Power Project in Chausa to SJVN. A MoU
in this regard was signed on 17th January 2013.
• The 1320 MW Buxar Thermal Project at Chausa in Bihar will generate
9828 million units of electricity at 75% PLF.
• The cost of construction at current price level will be
• 8218 crores resulting into levellised tariff of ` 2.80 per unit.

ALTERNATIVE ENERGY

 Khirvire Wind Power Project (47.6 MW)

After achieving great success in hydro power development SJVN is now venturing
in the field of Power Generation through Wind. Bhoomi Poojan for the Company's
upcoming 47.6 MW Wind Power project was performed at village Khirvire, Distt.
Ahmednagar in Maharashtra on 7th Dec. 2012.

 Solar Power Development in Gujarat

DPR has been prepared by M/s Gujarat Power Corporation Ltd. For 5 MW Solar
PV plant for plot no. 89 as allocated to SJVN at Charnka Solar Park, Gujarat.
The land of 25.95 acres has been blocked in favor of SJVN at the above mentioned
plot by M/s Gujarat Power Corporation Ltd.
This 5 MW Solar Power Project is expected to generate approximately 8.02 MU
per year. The project is to be registered under Renewable Energy Certificate (REC)
mode.

 6.3 AWARDS AND ACHIVEMENT

• Vishwakarma Awards to SJVN for CSR, Health, Safety &

Environment.
35
 • SJVN Bags SCOPE Commendation Certificate
• SJVN Awarded Gold Shield
• SJVN Ltd. is conferred with the Greentech Environment
Excellence Award 2010
• SJVN Limited conferred with Scope Gold Medal Award
• SJVN’s CMD Honored with India Power Award 2010
• SJVN Bags Scope Excellence Award
• SJVNL is Awarded Scope MoU Excellence Certificate
• SJVNL bags Enterprise Excellence Award for Financial and
operations
• SJVNL bags Excellence Award
• SJVNL CMD Honoured with National Achievement Award for
Corporate Leadership
Revenue
Revenue Earned

( in Crore)

Year 2010-11 2009-10 2008-09 2007-08 2006-07

Sales 1812.67 1769.74 1759.59 1250.34 1618.23
Other Income 143.15 138.99 269.65 331.87 47.53
Total 1955.82 1908.73 2029.24 1582.21 1665.76

36
 CHAPTER-7 REVIEW OF LITERATURE

Compensation management

“The best compensation policy is not based upon the organizational affiliation
among the stake holders and the administration, but also taking into consideration
the difference of opinion which give birth to conflicts in other constricting
relationships which exist in the organization. In the article the finest compensation
plan is revised taking into the consideration the two most important factors which
are (1) equity and risky debt, and (2) equity and convertible debt. Future, the
benefits of making parallel administration compensation with the stake holders
welfare are discussed, that this action will reduce the cost of debt”. (John., John
1993)“The study shows that the control and the ownership of the firm play a vital
role in determining the compensation plan for the executives of the organization.
The study displays that when a firm is externally controlled by the shareholders
than the company is more efficient in compensating its CEOs and the top-
management rather than the firm which are internally controlled by the
administration. One major reason for this cause is that the segregation of
compensation plans and the performance of the firm, on the other hand externally
controlled companies have learned the art of inclusion of the compensation of the
top management and the performance of the firm in terms of the profit.” “This
paper discusses the compensation structure of skilled workers in a hierarchical
firm. Promotion depending upon the compensating the employee is a systematic
process. The appraisal process takes a long period of time and do not serve its
purpose as the workers use their shrewdness techniques showing that they are
among the skilled workers. On the other hand, the manager can also show
unacceptable behavior, sometimes by not providing the incentives that the
employee really deserves. Usually the managers appraise the the educated workers
despite of the fact that two workers are working on the some level and even though
the uneducated worker is more skilful the promotion is given to the educated and
less skilful person. The report discusses the action plan of providing promotion
plan that are efficient and effective at the same time.”
“There are many studies conducted in the field of compensating the employees of
the business but a little is known by the strategic compensation system and that is
aligned with the company’s strategy. Previously all research conducted on this
topic are limited to only the big companies and there are still many things that are
37
unclear about the topic. It was found out that the pay structures are connected with
the divisional strategic orientation, and there are missing gaps in the previous
studies conducted. Moreover, it was found out that the position that the employees
hold in the company hierarchy is one of the most important variables affecting the
compensation system. The position of employee in the company affects the reward
structure, and the consequences of the performance on the strategically formed
goals.”

38
 CHAPTR-8 COMPENSATION MANAGEMENT IN
SJVN
Compensation is one of many human resource (HR) tools that organizations use to
manage their employees. For SJVN to receive its money’s worth and motivate and
retain skilled employees, it needs to ensure that its compensation system is not an
island by itself. Not only is it important for SJVN to link compensation to its
overall goals and strategies, it is important that its compensation system aligns with
its HR strategy.

NEEDS OF COMPENSATION MANAGEMENT AT SJVN LMT

 A good compensation package is important to motivate the employees to

increase the organizational productivity.
 Unless compensation is provided no one will come and work for the
organization. Thus, compensation helps in running an organization effectively
and accomplishing its goals.
 Salary is just a part of the compensation system, the employees have other
psychological and self-actualization needs to fulfill. Thus, compensation serves
the purpose.
 The most competitive compensation will help the organization to attract and
sustain the best talent. The compensation package should be as per industry
standards

8.1COMPENSATION PACKAGE

Compensation package consist three things

• Motivation
• Employee Retention
• Need Satisfaction

39
There are several policies adopted by SJVN to motivate their employees, to retain
their talent and to satisfy their employees …

8.2NEED SATISFACTION

NEED
FACTOR

Pay & Allowances

Cafeteria of Perks
and Allowances
House Rent Allowance
Medical Allowance
Nightshift Allowance
40 Cash Handling Allowance
 Pay & Allowances

Pay is a fixed amount of money or compensation paid to an employee by an

employer in return for work performed. Pay is commonly paid in stages at
fixed intervals, for example, monthly payments of one-twelfth of the annual
salary. Give (someone) money that is due for work done, goods received, or
a debt incurred.

SJVN truly understand the importance of pay which serve a major role in
recruiting, retaining, and motivating staff. While pay is not the "most"
important aspect of your jobs, but it definitely contribute to recruiting,
retaining, and motivating superior employees.

Pay Scale is divided into 3 levels

 Executives
 Supervisors
 Workmen

For Executives
levels Pay Scales
w.e.f. 1.1.2007
E2 20600-3%-46500
E2A 24900-3%-50500
E3 29100-3%-54500
E4 32900-3%-58000
E5 36600-3%-62000
E6 43200-3%-66000
E7 51300-3%-73000
E7A 51300-3%-73000
E8 51300-3%-73000
E9 51300-3%-73000
plus Rs. 3500 as PP
which will be treated
as basic pay for all
purposes
62000-3%-80000*

41
 For Supervisor
Grade Pay Scales (w.e.f.
01.01.2007)
S-1 16000-35500
S-2 17000-37000
S-3 18500-40000
S-4 20000-42500

For Workmen
Grade Pay Scales (w.e.f.
01.01.2007)
W1 10500-23000
W2 11000-24500
W3 11500-26000
W4 12500-27500
W5 13500-29500
W6 14500-32000
W7 15500-34500
W8 16000-35500
W9 17000-37000
W10 18500-40000

RATE OF ANNUAL INCREMENT

Grade Rate of Increment

Workmen/Supervisors 3%

DEARNESS ALLOWENCE (DA) PATTERN

a) The Industrial DA at AICPI-126.33 as on 01.01.2007 admissible in the pay scale

Would be ‘nil’ as the amount of IDA as on 01.01.2007 has been merged in the pay
Scale. The first installment of DA would become due on 01.04.2007 over and
above of AICPI-126.33.

b) DA installments would be released 4 times a year w.e.f. 1st January, 1st April,
1st July and 1st October.
42
 c) The percentage increase in the quarterly average of the AICPI for
the period ending February, May, August and November over index
126.33 would be taken up to one decimal point.

d) The rate of compensation over the basic pay at index average of

126.33 is also inwhole numbers with fractions carried forward.

e) The percentage neutralization in different pay ranges would be

100%.

• “CAFETERIA” OF PERKS & ALLOWANCES

Introduction:
As per DPE guidelines “Cafeteria approach” shall be adopted for other perquisites
& allowances allowing employees to choose from a given set or cafeteria of
perquisites and allowances.

Ceiling for Cafeteria

Based on the expenditure incurred on maintaining and running of infrastructure
facilities such as schools, hospitals, clubs etc. and amount protected on account of
Location Based Allowance, the value of monetization will be reviewed every year
and accordingly the ceiling of cafeteria will be determined.

For the period from 26.11.08 to 31.03.2011 the applicable ceiling for
“Cafeteria”will be 47% of revised basic pay

Option for Cafeteria:

Employees will be required to exercise their option under “Cafeteria” once at the
beginning of every financial year. Payment shall be made as per option exercised
subject to the prescribed ceiling. On transfer, employee will have discretion to
change the option.

Details of Cafeteria applicable to Executives is enclosed at Annexure-I whereas

Cafeteria applicable to Non-Executive is detailed below

43
Formats for exercising option by Executives & Non-Executives are placed at
Below

OPTION BY EXECUTIVES UNDER "CAFETERIA"

A. Name of the employee :
B. Designation/Deptt. :
C. Employee No. :
D. Period :
Sr. No. Perks & Allowances % of revised
Basic Pay
1. Canteen Allowance/Meal Vouchers viz. sodexho etc. 7.5%
2 Children Education Reimbursement 10%
3 Hostel Subsidy 10%
4 Professional Updating Allowance 10%
5 Conveyance/Transport Allowance 5%
6 Washing Allowance 5%
7 Reimbursement of expenditure on vehicle repair 5%
& maintenance.
8 Domestic Help Allowance 10%
9 Newspaper/Professional Literature 5%
Reimbursement
10 Driver Allowance 10%
11 House Upkeep Allowance 5%
12 Self Development Allowance 15%
13 Club Membership 10%
14 Gardener Allowance 10%
15 LTC 15%
16 Other Allowances 10%

• LOCATION BASED ALLOWANCES

Difficult Area Allowance (DAA) at the rates given below will be paid

Area Part ‘A’ Part ‘B’ Part ‘C’ Part ‘D’

Rs. per month (% of Basic pay)
DAA 10% 8% 6% 4%

44
Classification of areas shall be as per the notification of GOI for Special
Compensatory(Remote Locality) Allowance. Accordingly the different locations
of SJVN fall as under

PART A PART B PART C PART D

Khab, Nathpa and - Shimla, Jhakri, Sunni,
entire Jeori, Kotla, Luhri, Parwanoo,
Chamoli, Bayal Dhaulasidh
Pithoragarh &
Uttarkashi Distrits

OTHER LOCATION BASED ALLOWANCES

The following Location Based Allowances shall be paid:

a) Balance of Green Field Allowance, Project Allowance/SCA drawn as on

26.11.2008, in the pre-revised pay-structure, if any, after adjusting DAA
drawn.

b) Special (Duty) Allowance at Non-family Station shall be continued as

per extant rules operative as on 26.11.2008.

OPTION BY NON-EXECUTIVE UNDER "CAFETERIA"

A. Name of the employee :
B. Designation/Deptt. :
C. Employee No. :
D. Period :
Sr. No. Perks & Allowances 7.5%
1 Canteen Allowance/Meal Vouchers
2 Children Education Reimbursement
Child 1 5%
Child 2 5%
Hostel Subsidy
Child 1 5%
Child 2 5%
3 Conveyance/Transport Allowance 5%
4 Washing Allowance 5%
5 Reimbursement of expenditure on vehicle repair & 5%
Maintenance.
6 Energy Conservation Allowance 10%
7 Electricity Reimbursement 10%
45
8 Newspaper/Professional Literature Reimbursement 5%
9 Internet Allowance 5%
10 House Upkeep Allowance 5%
11 Self Development Allowance/Personality 15%
Encashment
12 Furnishing Allowance 10%
13 Gas/Fuel Allowance 10%
14 LTC 15%
15 Computer Allowance 10%
16 Patient Care Allowance 10%
17 Other Allowances 10%

• HOUSE RENT ALLOWANCE

Organizations either provide accommodations to its employees who are from

different state or country or they provide house rent allowances to its employees.
This is done to provide them social security and motivate them to work
Employees generally receive a house rent allowance (HRA) from their employers.
This is a part of the salary package, in accordance with the terms and conditions of
employment. HRA is given to meet the cost of a rented house taken by the
employee for his stay.

Eligibility:
The House Rent Allowance (HRA) will be admissible to:

a) An employee who has not been allotted accommodation (including lease

accommodation) by the Company

b) Both husband & wife, who are employed by the Company/Government/

Government Agencies and living in hired/owned accommodation.

c) Employee living in a house owned/rented by him or his family.

d) Employees posted at project and who have not been allotted family
accommodation and in lieu is living in shared/bachelor accommodation,
for retaining family, subject to approval by Head of Project. The rate of
HRA in such cases will be the rate applicable to the place where he is
allowed to retain family. In case employee is not claiming HRA for
retaining his family in such cases HRA will be paid at the rate as applicable
46
to the place of posting.

e) Employee posted at non-family station has discretion to retain his family

at a place of his choice. The rate of HRA in such cases will be the rate
applicable to the place where he is allowed to retain his spouse and
dependant children.

Conditions:
The employees posted at places where the Company accommodation is available
and who are eligible for Company’s accommodation, the HRA will be admissible
only if he/she has applied for such accommodation but same has not been
provided.

While the Company shall always endeavor to provide entitled accommodation to

the employees, however, in case of non-availability of entitled accommodation,
employees will have to accept accommodation one category below his entitlement
and in case the accommodation so offered is not accepted for any reason, the HRA
shall not be admissible.

HRA to Deputationist:
The House Rent Allowance in case of employees who are in continued occupation
of accommodation allotted to them by lending organisations before their
deputation
to the Company will be regulated as follows:
House rent allowance will be paid as actual, limited to the rates and subject to the
conditions contained in rule 3 subject to further production of proof of payment of
rent.

HRA on Transfer:
Employees who are not in occupation of Company leased accommodation and are
drawing HRA at admissible rates will, in the event of their transfer from one place
to another, be entitled to house rent allowance as under, provided they retain the
accommodation at the previous place of posting.

HRA on Death:
If an employee in receipt of house rent allowance expires, the allowance
may be paid up to a period of four months to the family members who
were residing with the deceased employee, provided they continue to
reside in the same residential accommodation.
47
 The amount of HRA shall not exceed that last drawn by the employee
immediately before his death.

HRA would not be admissible if the family resides in a house owned by

the deceased employee or any member of his family.

• MEDICAL ALLOWNCES

Definitions: Organizations also look after the health conditions of their employees.
Theemployees are provided with medi-claims for them and their family
members.These medi-claims include health-insurances and treatment bills
reimbursements.
“Authorised Medical Attendant” (AMA) means the Doctor appointed by the
Company, who is a Company’s employee or one who is authorized under these
rules to attend on the employees of the Company or the GM/Project In charge
“Government Hospital” includes a Military Hospital, a Hospital maintained by a
local authority and any other hospital with which Central / State Government /
SJVN’s Management have arrangements for treatment of its employees.

Treatment at the Dispensary / Hospital of the Company :

All employees and their families are entitled to free medical attendance and
treatment in SJVN dispensary / hospital. Patients will not ordinarily be treated at
their residence except when the A.M.A. considers movement of the patient
injurious to his recovery. Patients requiring hospitalisation will be admitted to the
Company’s hospital and will be entitled to the following facilities at Company’s
expenses.
a) Use of all medical and surgical facilities available at the hospitals;
b) The employment of such pathological, bacteriological, radiological or
other methods as are considered necessary by the A.M.A.
c) Supply of such medicines, vaccines, sera or other therapeutic substances
as are ordinarily available in the hospital. Cost of medicines etc.
prescribed by the A.M.A. but not available at the hospital will be
reimbursed.
d) Such consultations with a Specialist as the A.M.A. may consider
necessary.
e) Such accommodation and nursing as are ordinarily provided at the hospital
to the patients

48
 • NIGHTSHIFT ALLOWANCE Definition:
“Night Shift” means 8 hours shift beginning in the evening and continuing beyond
Mid-night, or 8 hours shift beginning at Mid-night.
Applicability:
Night Shift Allowance will be applicable to all regular employees in Executive,
Supervisor and Workmen category including employees on deputation.
Eligibility:
Employee (including trainees) roistered for duty in three shifts throughout the
month and working in the night shift will be eligible for night shift allowance
The Rates of Night Shift Allowance
Night Shift Allowance shall be paid at the rate as given below:

Category of employees Rate Rs./P.M. Amount payable

Rs. (per Night
Shift.)
1 2 3
Executives 900/- 115/-
i) E2 & E2A 1200/- 150/-
ii) E3 & E4 1500/- 190/-
iii) E5 & E6
Supervisors/Supervisor 1170/- 167/-
Trainee
S1-S4 / W8 & above
Workmen /Workmen 720/- 103/-
Trainee
W1-W7

• CASH HANDLING ALLOWANCE

We want to ensure that SJVN continues to attract, retain and motivate high-
performing people. As such, we offer a cash compensation structure that will
recognize your specific skills and business expertise. After all, they allow us to
deliver best-of-class solutions for our clients. Our compensation structure takes
different forms to reflect individual performance levels. It includes Base Pay,
Fixed Bonuses, Allowances, or Other Payments relevant to the local market.
49
Performance Bonus and Sales Incentives may also be included in your total cash
compensation, and are used to ensure you are paid competitively within the
market.
Cash Handling Allowance is payable to the employees in the workmen &
Supervisory
category who are on the regular rolls of the Company, discharging the duties of
Cashier at the rates indicated below:
Amount of average monthly cash handled (Rs.) Rate of Allowance(Rs. Per month)
Up to 75000 50
75001 to 200000 75
200001 to 500000 100
500001 & Above 125

The rate of Cash Handling Allowance to be granted to the employee concerned

shall depend upon the average amount of monthly cash disbursed but excluding
payments made by cheques. The amount of monthly cash disbursed shall be
certified by the Head of Finance & Accounts Department of Corporate
Centre/Project, on
the basis of the previous Financial years average.

SOME OTHER ALLOWECES

• DRESS CODE ALLOWANCE

All the regular employees of the Corporation including Board Level,

Deputationists & Trainee appointed against regular post will get dress code
allowance
Amount:
Employees will be entitled for Rs. 7,500/- per annum for purchasing and stitching
Of liveries.
Dress Code:
All employees are required to observe the Dress Code, while on official duty, as
detailed below:-
GENTS
50
Grey Pant (Cotton/Woolen) as per sample
Shirt –Off white (Full Sleeves/half sleeves) as per sample
Socks
Leather Shoes (Black)
Tie/Cravat in winter (optional)
LADIES
Salwar Kameez with Chunni/Sari with Blouse (Pista Green) as per sample
Sandles/Shoes

• 8.3RETAINING FACTOR
Retaining productive employees is critical to running a successful business.
Retaining employees saves companies money in training costs and helps maintain
an efficient and knowledgeable workforce. Health insurance and retirement
packages are benefits that many employees desire from their employers.
Companies that offer these benefits have a much better chance of retaining workers
than businesses that fail to offer benefit packages. Other ways to retain employees
is through regular promotions, which not only provide an employee with a higher
base salary, but also the ability to take on more responsibility in the workplace
So to retain SJVN’s talent organization is offering following programmers’

51
 RETENTION
FACTOR

Superannuation Scheme
Financial Relief in the event

of Death/Permanent Disablement

Insurance Scheme
Voluntary Retirement Scheme
Free Electricity

• SUPERANNUATION SCHEME
Organizations provide for pension plans and other benefits for their employees
which benefits them after they retire from the organization at the prescribed age
In order to take care of post retirement needs and contingencies of death while in
service of SJVN a self contributory superannuation scheme has been introduced.
ANNUAL CONTRIBUTION:
The member shall contribute to the pension fund. The minimum contribution shall be Rs. 500/-
per month. If a member is willing to contribute more, he may contribute any
amount in multiples of Rs. 100/- which shall be fixed at the time of
commencement of the scheme. The contribution can be changed at any future
Annual Renewal Date.
BENEFITS
A member of the scheme will be eligible to draw the pension in the following
events:-
• On Normal Retirement
• On Retirement before Normal Retirement Date.
• On Retirement after Normal Retirement Date.
52
• On Death.
• On Leaving Service.
The amount of pension will depend on the amount of contribution and period of
contribution
BENEFITS ON NORMAL RETIREMENT DATE:
(i) Normal life pension with guaranteed payment for 15 years:
The member will get the pension during his lifetime. In the event of the member’s
death within 15 years after retirement, the pension will continue to be paid to the
beneficiary until the balance of the guaranteed pension of 15 years from the date of
retirement is paid. Thereafter the pension will cease to be paid to the beneficiary.
(ii) Life pension with guaranteed payments for 10 years:
The member will get the pension during his lifetime. In the event of the member’s
death within 10 years after retirement, the pension will continue to be paid to the
beneficiary until the balance of the guaranteed pension of 10 years from the date of
retirement is paid. Thereafter the pension will cease to be paid to the beneficiary.
(iii) Life pension with guaranteed payments for the 5 years:
The member will get the pension during his lifetime. In the event of the member’s
death within 5 years after retirement, the pension will continue to be paid to the
beneficiary until the balance of the guaranteed pension of 5 years from the date of
retirement is paid. Thereafter the pension will cease to be paid to the beneficiary
(iv) Pension ceasing at death (without any guaranteed payments):
A member will get the pension up to his death only. Under this option there will be
no guaranteed payments/return of capital, though the pension amount is higher as
compared to the other options.

3. BENEFIT ON RETIREMENT BEFORE NORMAL RETIREMENT

DATE
Upon the retirement of a Member anytime during service owing to ill-health or In
capacitation or if he retires from service within a period of 10 years preceding his
Normal Retirement Date, the pension as may be opted by him will become payable
immediately. Alternatively, the Member may, opt a pension which will commence
from the Normal Retirement Date.
53
4. BENEFITS ON RETIREMENT AFTER NORMAL RETIREMENT
DATE:
In case the member continues in the service of the company beyond normal date of
retirement, the member can opt to continue in the scheme up to the date of actual
retirement.

5. BENEFITS ON DEATH:
(a) In the event of the death of a Member while in the service of the Company, a
pension will become payable to the Beneficiary appointed by the Member
(i) either for the remaining period of his/her lifetime or
(ii) for 5, 10 or 15 years and there after for the remaining period of his/her life time
or
(iii)for optional Life Pension ceasing at Death with return of Member’s
accumulation cash option/purchase price appropriated for purchase of pension
along with any Group pension Terminal Bonus or (iv) any other type of pension
option introduced by the Corporation, as may be opted by
the beneficiary. If the Member has not appointed a Beneficiary or if such
Beneficiary has predeceased the Member and no fresh appointment of Beneficiary
has been made, the pension will become payable to the
Member’s spouse. In the event the member has no spouse, the pension will be
payable to surviving child/children in equal amount. Falling which to his parents,
unmarried sisters and brothers in the order of preference.

(b) The Company shall intimate to the Corporation in writing the pension opted by
the Beneficiary within 90 days after the date of death of the Member. The pension
will be payable monthly or otherwise as desired by the Beneficiary reckoning from
the date of death.

6. BENEFITS ON LEAVING THE SERVICE:

In the event of the member leaving the services of the Company, pension becomes
payable to him either immediately or commences from the Normal Retirement
Date as may be opted by him. If a member who has opted for deferred pension dies
before receiving the pension his beneficiary shall receive immediate pension .

• SCHEME FOR FINANCIAL RELIEF IN THE EVENT OF

DEATH/PERMANENT DISABLEMENT

54
OBJECTIVE:
This Scheme has been framed with a view to provide financial assistance in the
event of death or permanent total disablement ,which are not covered under
GPAIS, while in the employment of the Company.

EXTENT OF PAYMENT/BENEFITS
In the event of death of any member while in service of the company, nominee(s)
will be paid Rs. 15 lacs.

Member will be paid Rs.15 lacs. in the event of separation from service due to
permanent total disablement.

Contribution of Members and the Company will be as under:

Contribution of each Member per eventuality will be as under:
(i) Workmen Rs.350/-
(ii) Supervisor/ Executives Rs. 500/

Per eventuality Company will pay sum equivalent to the difference between
contribution of all members determined as above

The contribution of member shall be recovered from the salary of the following
month in which the eventuality occurs as the case may be

In addition in the event of the death of a member, an amount of Rs. 30,000/- will
be paid towards funeral expenses. (Ref. CPC No. 135/2009 dated 19.02.09).

In respect of apprentices/daily wage/muster roll/casual/badli/ substitute employees

an amount of Rs.10,000/- shall be paid towards funeral expenses to the family
(Ref. CPC No. 135/2009 dated 19.02.09).Though such categories of employees
are not covered under the “SCHEME OF FINANCIAL RELIEF IN THE EVENT
OF DEATH/PERMANENT DISABLEMENT”.

PROCEDURE FOR PAYMENT

Concerned P&A Department will intimate to In-charge regarding death/separation
on account of permanent disablement. On receipt of intimation, In-charge will
55
forward an advice to Corporate F&A for release of payment. Finance
Departmentwill make payment within one month on the basis of pay drawn in the
preceding month.

• Insurance Scheme

Organizations also provide for accidental insurance and life insurance

foremployees. This gives them the emotional security and they feel themselves
valuedin the organization.
The Group Insurance Scheme is applicable to employees borne on the regular
establishment of the Corporation.

The insurance cover provided under the Group Insurance Scheme through the
LIC of India is as under:
Sl. Categories of the employees Insurance Cover (Rs.)
No.
1 Sr. Manager & above 1,98,000/-
2 Engineer/Officer to Manager 1,68,000/-
3 Asstt. Engineer / Asstt. Officer/ 1,38,000/-
Executive Trainees/ Jr. Engineer /Jr.
Officer (SII, SIII, & SIV) and equivalent
workmen categories
4 Jr. Engineer/Jr. Officer (SI) and 1,13,000/-
Workmen categories including Trainees
other than those at Sl.No. 3 above.

The insurance cover, as above, shall be payable in the event of the death of an
employee during the tenure of his service in SJVN to the nominee(s) of the
employee concerned.

The above insurance cover is inclusive of the coverage to be provided by SJVN

under the Employees Deposit Linked Insurance Scheme, 1976, prescribed under
the Employees Provident Fund and Miscellaneous Provisions Act, 1952, as
amended from time to time.

The entire premium for providing the aforesaid insurance cover shall be borne by
SJVN.

• VOLUNTARY RETIREMENT SCHEME

56
OBJECTIVE
The scheme is introduced with an overall view to rationalize surplus manpower
and to mitigate hardship of employees to be rendered surplus‘on
completion/commissioning of Project and to provide certain monetary and other
benefits to such employees.

BENEFITS UNDER THE SCHEME

 An employee whose request for voluntary retirement is accepted by the

Corporation shall be entitled to the following benefits:
 One month/three months notice pay as per terms of appointment of the
employee concerned. Pay, in this case, shall mean emoluments as deemed
 Ex-gratia payment equivalent to salary of 35 days for every completed year
of service and 25 days for the balance of service left until superannuation.
The compensation will be subject to a minimum of Rs.25000/- or 250 days
salary whichever is higher. However, this compensation shall not exceed the
sum of the salary that the employee would draw at the prevailing level for
the balance of the period left before superannuation.
 Contributory provident fund accumulation as due and payable under the
Corporation Rules.
 Gratuity, as due and payable under Gratuity Act/Scheme.
 Cash equivalent to un-availed earned leave which are due to the employee at
the time of release on voluntary retirement, subject to permissible
accumulation limit.
 Cash equivalent for Casual Leave on pro-rata basis up to the date of release
of employee.
 Payment of Bonus shall conform to provisions in the Bonus Act.
 Rail/bus fare of the entitled class for self & family for settlement after
Voluntary Retirement shall be paid for place where the employee intends to
settle down after VRS.

• FREE ELECTRICITY

Employees posted at Project will avail free electricity units as under:

57
Accommodation Occupied by the Employees Free Units per Month
0 – Type first 60 units
A- Type first 80 units
B- Type first 100 units
C- Type first 120 units
D- Type first 140 units

Units consumed, over and above the first free units, as indicated at clause 1, will be
charged on the basis of slab wise tariff declared by HPSEB/Government from
time to time for domestic consumption. If accommodation is shared by employees,
the electricity charges will be recovered on pro-rata basis

• 8.4MOTIVATION FACTOR

Compensation often impacts an employee’s motivation and job satisfaction,

although it is not the only factor. According to an article written by Mae Lon Ding
of Personnel Systems Associates, compensation systems positively impact a large
percentage of workers' performances. Many employees feel motivated to help their
companies succeed if the employer shares its profits with employees, such as with
bonuses or profit-sharing plans. The greatest impact of money on productivity and
performance is in jobs where performance is directly related to compensation. For
example, the knowledge of receiving a bonus after achieving a certain sales quota
will likely motivate a salesperson to increase productivity.

58
So to motivate SJVN’s employees. The organization is running following policies

MOTIVATION
FACTOR

Performance Related Pay

Amenities to Sr. Executive
PERKS AND BENEFITS
TO EXECUTIVE/ENGINEER TRAINEES

Providing Laptop to Executives

Perks & Benefits on Promotion

• Performance Related Pay

Introduction
DPE guidelines on pay revision interlaid envisage Performance Related Pay to
Executives and Non-unionized supervisors. Performance Related Pay has been
linked to the profits of CPSEs and Performance of the Executives. 60% of PRP is
to be paid from 3% of PBT and 40% of PRP from 10% of incremental profit. Also
for implementation of PRP a Robust and Transparent Performance Management
System (PMS) is to be developed.

Objectives
Through the above scheme SJVN aims at achieving the following objectives:
 Reward the employees for achieving the pre-determined targets within a
scheduled time frame.
 Motivate the employees to achieve desired level of performance.
 Integrate working of different departments and projects to achieve the pre-
determined results.
59
  Focus on non-core activities which positively influence sustainability of an
organization.
 Strengthen inter departmental relationships.

For Workmen & Supervisor Trainees the payment shall be governed as

under:
 For Supervisory Trainees PRP will be paid considering the minimum
basic of the revised scale of S1 grade

For Workmen Trainees PRP will be paid considering the minimum basic of
the revised scale of the level at which the Workmen Trainee shall be confirmed
after completion of the training period.

Parameters of PRP Payment

From the Financial Year 2009-10 & onwards the various parameters for payment
of PRP applicable to Board level/below Board level employees will be as under:
Parameter Weightage
Board Level
MOU 50%
Weighted Average of PRP of Performance 50%
Centers
Below Board Level
MOU Rating 40%
BSC Rating of Performance Centre 50%
AAR Rating 10%

The grade entitlements for PRP payout are as under:

Grade % of Revised Basic Pay
E2 to E2A/Non-Executives 40
E3 to E4 50
E5 to E6 60
E7 & above 70
Directors 150
CMD 200

• Amenities to Sr. Executive

Senior Executives at the level of AGM & above are entitled for following
amenities for Office at Residence.

60
FURNISHING OF OFFICE AT RESIDENCE

The ceiling for furnishing office at residence shall be as under for items listed at
Annexure I (along with Life span, Depreciation etc.) :
Level Ceiling
Chairman & Managing Director Rs 1,25,000/-
Directors Rs. 1,00,000/-
General Manager/ ED Rs. 75,000/-
AGM Rs. 50,000/-

ELECTRICITY AND MAINTENANCE OF GADGET CHARGES

The ceiling for Electricity and maintenance of gadget Charges at Residential Office shall be as
under:
Level
Rates
Chairman & Managing Director Rs. 36,000/-
per Year
Directors Rs. 30,000/-
per year
Executive Director & General
Manager Rs. 12000/-
per year

EXPENDITURE ON ENTERTAINMENT
Expenditure on account of entertainment at Residential Office shall be reimbursed as under:
Level
Rates
Chairman & Managing Director Rs. 2250/ -
per month
Directors Rs. 1900/-
per month
Executive Director Rs . 1500/-
per month
General Manager Rs. 1150/-
Per month
AGM Rs. 750/-
per month

• SCHEME FOR PROVIDING OF

LAPTOP TO EXECUTIVES
61
INTRODUCTION:
To make the venture successful in the fast changing economy, it is essential for the
organizations to have a computerized working environment. Computerization not
only makes the organization efficient but also assists in better utilization of
information technology. Computerization and Information Technology help in
easier transfer of data and access to updated/latest technology. It is therefore, need
of hour for the organizations to encourage computer based working and develop
computer savvy Human Resources.

Moreover, modern technology is a powerful and integral tool in all the areas of
business operations. IT has assumed one such status and important business
operations such as e-Banking, e-Procurement, e-Commerce etc. are IT enabled.

Modern business Organizations acquires necessary and vital modern technological

tools to conduct their operation optimally, effectively & efficiently.

Use of Laptops enables in eliminating the physical barriers in communications, and

ensures fast retrieval and transfer of data etc. Moreover, the computer savvy
Human Resources is an asset to the organization.
Keeping above in view, a Scheme for Providing Laptop to Executives is detailed
below:

OBJECTIVES:
Scheme is proposed to achieve following objectives:

a) To carryout day-to-day business functions optimally, effectively &efficiently.

b) To facilitate Swift and easier transfer/retrieval of data.
c) For continual qualitative improvement in the working environment.
d) To develop computer savvy Human ResourceS
e) To stay competitive & successful in the dynamic business environment.

• PERKS AND BENEFITS ON PROMOTION

On promotion Perks and Benefits will be effective from the date of promotion
subject to the condition that the same has been availed, and will be regulated as
under:

1. TA/DA, Medical bill and LTC cases already settled need not be re-opened.
However, pending cases will be regulated on the basis of revised entitlement.
62
2. Residential Telephone bills may be reimbursed as per revised entitlement from
retrospective effect, subject to documentary evidence to the effect that expenditure
has been incurred.
3. Hospitality expenditure will be reimbursed as per revised entitlement.
4. Reimbursement of Expenditure on Local Travel for Official Purpose for same
type of vehicle will be made as per revised entitlement from retrospective effect.
5. Cafeteria at the notified rate shall be paid as per revised basic from retrospective
effect.

 PERKS AND BENEFITS TO EXECUTIVE/ENGINEER TRAINEES


Following perks and benefits shall be admissible for E2 level w.e.f. 26.11.08 in
respect of
Executive/Engineer (Trainees) appointed on or after 27.08.2003.
Perks and Benefits to ETs:
Subject to other terms and conditions of SJVN Rules the perks and benefits
will be paid as under:
Sl. PERKS & BENEFITS
No.
1 Cafeteria of Perks & @ 47% of the basic pay per month or / as per the notified
Allowances precentage.

2 Difficult Area Allowance As per As per extant rules.

extant rules.
3 Liveries As per extant rules.
4 DAA and Other Location
Based Allowances
As per extant rules
5 Night Shift Allowance
6 Reimbursement of
Expenditure on Local
Travel for official
purposes.
7 HRA/Company Leased
Accommodation
As per extant rules.
As per extant rules.
Rs. 900/- per month or as per the notified rate
Applicable to E2 level executives.
At par with E2 level Executives.
1. Free furnished bachelor accommodation will be
provided.
2. If same is not possible HRA/Lease will be extended for
the place of posting only.
3. Further if an Executive Trainee is married may be
considered for family accommodation as per the
entitlement of E2 level, if available
 4. The rate and criteria for HRA/Lease will be
similar to that applicable to other
employees.

5. On the basis of above principles the lease

entitlement of the Executive Trainees shall
be at par with E2 level Executives.
6. Recovery for House Rent including for
Leased Accommodation shall be equal to
E2 level.

Following Perks/Benefits will be regulated as per SJVN Rules:

i) Provident Fund
ii) TA/DA
ii) Group Personal Accident Insurance
iv) Group Insurance
v) Medical Reimbursement.
vi) Leave.

64
CHAPTER 9 ANALYSIS AND INTERPRETATION
DATA INTERPRETATION AND DATA ANALYSIS

1. Does the company have

Fixed pay system
Variable pay system
Both

INTERPRETATION:

Pay System Employees Percentage

Fixed 12 17%
Variable 27 39%
Both 31 44%

PAY SYSTEM
Fixed Variable Both

17%
44%

39%

ANALYSIS: It was analyzed that the SJVN have both type of pay system in which maximum
have mark both option.

65
 2. What are the components of your basic salary?

DA HRA PF

ESI Gratuity Medical Allowance

Conveyance Allowance LTA

INTERPRETATION:
Components No of Employees Percentage
DA 70 100%
HRA 48 68.5%
PF 46 66%
ESI 0 0%
Gratuity 28 40%
Medical Allowance 15 21%
Conveyance Allowance 34 48.5%
LTA 34 48.5%

COMPONENTS
100%
68.50%
66%
70 48 46 40%
0 21% 48.50%
0 48.50%
28
15 34
34

ANALYSIS: From the above question I analysed that the component of basic salary of every
employees is DA (dearness allowance) with 100% which was followed by HRA (House rent
allowance). It was also analyzed that no one employee hasESI for their basic salary

66
3.What is the ratio of fixed and variable pay in your company?

60 % -40 %
70 %-30%
80 %- 20 %
75 %-25 %

INTERPRETATION:
Fixed-Variable Pay No of Employees Percentage
60%-40% 36 51.42%
70%-30% 17 24.28%
75%-25% 0 0
80%-20% 17 24.28%

RATIO
40
35
30
Employees

25
20
15
10
5
0
60%-40% 70%-30% 75%-25% 80%-20%
Fixed-Variable pay

ANALYSIS: It was analyzed that the ratio of fixed and variable pay is different according to
their position. Maximum of the employee’s fixed-variable pay ratio is between 60%-40%and
there was no one have the ratio of pay between 75%-25%.

67
4. What is your monthly salary not including bonus?
Less than 10,000 10,000-20,000

20,000-30,000 30,000 & above

INTERPRETATION:

Salary No of Employees Percentage

Less than 20,000 0 0
20,000-40,000 23 33%
40,000-60,000 29 41.3%
More than 60,000 18 25.7%

SALARY
35
30
25
20
15
10
5
0
Less than More than
20,000-40,000 40,000-60,000
20,000 60,000
PERCAGEENT 0 33% 41.30% 25.70%
EMPLOYEES 0 23 29 18

ANALYSIS: In the above question it was analyzed that every employee monthly salary is more
than 20,000. Most of the respondent salary is between 40,000-60,000.

68
5. In addition to your basic salary do you receive cash bonuses?

YES NO

INTERPRETATION:

Cash Bonuses Employees

Yes 70
No 0

CASH BONUSES
0%

YES
NO
100%

ANALYSIS: It was analyzed that each employee receives cash bonuses in their basic salary.

6. If yes, what type of bonus?

Annual/Year End Bonus

Incentive Bonus

INTERPRETATION:
69
Bonus No of Employees
Annual Bonus 0
Incentive Bonus 70

BONUS
100%

80%

60%

40%

20%

0%
Annual Bonus Incentive Bonus

ANALYSIS: It analyzed that the type of bonus which employees receive is incentive bonus.
They don’t get any type of annual bonus or any other bonus.

7. What kind of non-cash benefits do you receive?

i. Housing ii. Mediclaim

iii. Retirement Benefits iv. Education reimbursement
v. Cell Phones vi. Laptops
vii. Loan viii. Uniform
ix. Festival Bonus x. Vacation Pay

INTERPRETATON:

70
Non-cash Employees Percentage Non-cash Employees Percentage
Housing 70 100% Mediclaim 35 50%
Retirement 55 78.5% Laptops 40 57%
Benefits
Education 70 100% Uniform 70 100%
Reimbursement
Cell Phones 40 57% Vacation pay 70 100%
Loan 70 100% Festival 70 100%
Bonus

NON-CASH BENEFITS
70
60
50
40
30
20
10
0

ANALYSIS:It was analyzed that every employeereceives most of the non-cash benefits. The
benefits which everyone receives are housing, education reimbursement, cell phones, festival
bonus, laptops, uniform, and vacation pay.

8. Does your company give a general increase in compensation in a year?

YES NO

71
(b)If yes, by what percentage
3%-5%

6%-8%

9%-10%

11%-13%

INTERPRETATION:
A
Increase in compensation Employees Percentage
Yes 44 63%
No 26 37%

INTERPRETATION:

Increased compensation by No of Employees

percentage
3%-5% 70
6%-8% 0
9%-10% 0
11%-13% 0

INCREASE IN INCREASE BY
COMPENSATION PERCENTAGE
80
NO
37% 60

40
YES
63% 20

0
3%-5% 6%-8% 9%-10% 11%-13%
ANALYSIS: It was analyzed that 63% of the respondent get increase in the compensation by
3%-5% in a year.

9. Does your company have performance appraisal system?

NO
YES

INTERPRETATION:

Performance Appraisal System Employees

Yes 70
No 0

Performance Appraisal System

NO
0%

YES
100%

ANALYSIS: it was analyzed by the survey that SJVN has performance appraisal system and
100% of respondent said yes for the above question.

10.In your organization employees are considered for Reward and Recognition mostly for

Innovative and Creative

Increased productivity/results/outcome
73
 Customer Satisfaction

All of the above

INTERPRETATION:

Reward and Recognition No of Employees Percentage

Innovative and creativity 0 0
Increased productivity/result 19 27%
Customer Satisfaction 0 0
All Above 51 72.8%

REWARD AND RECOGNITION

Innovative and creativity Increased productivity/result
Customer satisfaction All of the Above

0%

27%

0%

73%

74
ANALYSIS: Through survey it was analyzed that for reward and recognition SJVN mostly
considered employees for innovation, customer satisfaction productivity and for good result.
These are the things which are looked in SJVN employees for reward.

11.Does your company link your salary with your productivity?

YES NO

INTERPRETATION:
Salary linked with Productivity Employees Percentage
Yes 46 65.6%
No 24 34.3%

Llinkage Of Salary With Productivity

NO
34%

YES
66%

ANALYSIS:it was analyzed that maximum respondent of SJVN stated that the salary is linked
with the productivity in SJVN but there are few who said no.

12.Does the compensation paid by your company attract and retain the employees?

Yes 75 NO
INTERPRETATION:

Compensation attract and retain Employees

Yes 70
No 0

COMPENSATION-ATTRACT AND NO
RETAIN 0%

YES
100%

ANALYSIS: From the above question it was analyzed that the compensation which is paid by
the SJVN to their employees is attract their employees and also help them in retaining. For SJVN
good compensation all respondent said yes.

13. Are you satisfied with the compensation policy of your organization?

YES NO

INTERPRETATION:
Satisfied No of Employees
Yes 62
No 8
76
 SATISFIED
YES NO

11%

89%

ANALYSIS: it was analyzed that compensation policy of SJVN satisfied maximum respondent
because according to them it is best comparable to the PSU in the country and it satisfied them
on both monetary and non-monetary parts but there are few who are not satisfied with the
variable pay because according to them variable is based on the performance appraisal and
until unless performance appraisal is objective and transparent, it will be arbitrary.

77
 CHAPTER-10 CONCLUSION AND RECOMMENDATIONS
10.1 CONCLUSION

I did the survey on the employees of SJVN to find out that the employees of SJVN
are satisfied with their organization compensation policy or not. After collecting
the data and by analyzing the data I come to know that maximum of employees are
satisfied with the compensation policy of SJVN although there are some who are
not fully satisfied but still they are satisfied to some extent.

By analyzing the data I can see that the compensation policy of SJVN is much
better than other organization and they are receiving very good benefits like on the
birthday of any employee SJVN give Rs 1000 to their employees whether he is
supervisor, workmen or executive. There are many other benefits also which are
given by SJVN to their employees which help in attracting, motivating and
retaining employees. A good compensation policy helps in the productivity and
outcome of SJVN.

78
 10.2RECOMMENDATIONS
Although it was found that the employees of SJVN were almost satisfied with their
compensation policy by which they receive monetary and non-monetary benefits.
There is no doubt that SJVN providing best compensation packages to their
employees as comparable to other organization in the country but there are some
employees also who are not satisfied with the compensation policy. According to
them fixed pay is satisfactory but they are not satisfied with the variable pay
system. They think that variable pay is not based on fair decision i.e. variable pay
is based on performance appraisal and until unless performance appraisal is
objective and transparent, the variable pay will be arbitrary.

So it is recommended that the performance appraisal should be transparent and

objective so that each employee will be satisfied of the variable pay system and
compensation policy of their organization. With this they will go to enjoy
compensation management of their organization.

79
 10.3FINDINGS
 How the compensation management work of SJVN and what are their
compensation policy.
 SJVN have fixed and variable both pay system. DA is the main component
of their basic salary.
 Every employee gets maximum cash and non-cash benefits and every year
there is an increase in compensation.
 Most of the employees of SJVN are satisfied with their compensation policy
which attract, motivate and retain them.
 Survey which has done on compensation policy of SJVN gives the positive
result.

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 10.3 LIMITATION
It is really very difficult to find out every single issue within the limited period of time. Like any
other study this study too is not free from limitations. Over all the limitations we have faced
over the time are:-

 The major limitation of this study shall be data availability as the data is proprietary and
not readily shared for dissemination.

 Time Frame

 Access to more internal information

 It was really difficult for me to accumulate confidential data.

 The Company does not have sufficient source of secondary data and collecting data was
not so smooth.

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 BIBLIOGRAPHY
SJVN JOURNAL FOR INTERNAL CIRCULATION ONLY
 HR manual
Volume1
Volume2
Volume3
 Satluj Samachar Edition 2013
 Satluj Vani Edition 2013
 SJVN OFFICIAL SITE http://sjvn.nic.in/index.asp
 http://en.wikipedia.org/wiki/List_of_power_stations_in_India
 http://en.wikipedia.org/wiki/Hydroelectric_power_in_India
 http://en.wikipedia.org/wiki/Compensation_and_benefits
 http://en.wikipedia.org/wiki/Compensation
 http://smallbusiness.chron.com/importance-compensation-workplace
 http://www.citehr.com/

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