ACKNOWLEDGEMENT

It was a great opportunity for me to work with Superfine Knitters Ltd. I am extremely grateful

to those who have shared their expertise and knowledge with me and without whom the

completion of this project would have been virtually impossible.

Firstly, I would like to thank my project guide MR. AMIT KUMAR who has been a constant

source of inspiration for me during the completion of this project. He has given me invaluable

inputs during my endeavor to complete this project.

I express my gratitude to college principal Dr. (Mrs.) Charanjjt Mahal (Principal of Guru

Nanak Girls College, Ludhiana) for providing the entire infrastructure.

I extend my gratitude to Mrs. Kanwalpreet (Assistant Professor) and all other staff members

(commerce Department) and library staff for valuable guidance and support for completion of

this project.

In the end all goes to my parents who were always my true sense of inspiration.

I would also like to thank each and every member of the Superfine Knitters, friends and family

who have directly or indirectly helped me to complete this project.

SHWETA CHOUDHARY
 TABLE OF CONTENTS

SR. NO.
CHAPTERS PAGE NO.
1 Company Profile 1-8
2 Wage and salary administration 9-23
3 Methodology 24-26
4 Analysis and interpretation 27-43
5 Findings 44-45
6 Suggestions 46-47
7 Limitations 48-49
8 Conclusion 50-51
Bibliography
Annexure
CHAPTER NUMBER-1

COMPANY PROFILE
 ORGANIZATION PROFILE

SUPERFINE KNITTERS LIMITED

Name - SUPERFINE KNITTERS LIMITED

Incorporation - September 18, 1998

Commencement of business - September 24, 1998

Registered - Under the Companies Act, 1956

Legal Status - Public Limited Company

Nature of Business - Manufacturer

Additional Business - (a) Exporter

(b) Trader

(c) Supplier

Authorized capital - 13, 00, 00,000 Rs.

Paid up capital - 1, 23, 93, 070 equity shares

Factories - (i) Industrial area A (Ludhiana)

(ii) Focal point (Ludhiana)

CEO - Ajit Lakra

Directors - (i) Amit Gupta

(ii) Vipin Sehgal

(iii) Baljeet kumar Trikha

Managing Director - Ajit Kumar Lakra

Whole Time Directors - (i) Gita Lakra

(ii) Vivek Lakra

Total No. of Employees - 501 to 1000 people

Annual Turnover - Rs. 50-100 Crore

INTRODUCTION:

SUPERFINE KNITTERS LTD is a multidivisional textile unit engaged in the business of

knitted apparels for itself as well as for national and international brands and is a well-known
supplier of knitted fabrics for large companies in INDIA involved in manufacturing and
exporting knitted apparels.

This company was started in the year 1998 as a fabric knitting unit and is now well-known
supplier of knitted fabrics and apparels to national and international brands. The manufacturing
facilities are located at (a) 269 Industrial Area A, Ludhiana – 141010, Punjab, India.

TOTAL WORKFORCE:

As on September 30, 2016 the company had a total workforce of 545 including

 3 Whole time directors

 44 highly skilled
 399 skilled
 56 semi-skilled
 43 unskilled workers.

RANGE OF APPARELS:

The range of apparels that the company manufactures for national and international brands
covers all the age groups and segments such as for;
 Men’s wear- Jackets, T-shirts, Shirts, Trousers
 Women’s wear- Jackets, Kurti’s
 Kids wear- Baby Cloths, T-shirts, Pants
 Boys and Girls wear.
The company manufactures for all sizes. The company supplies the manufactured clothes to
different countries. Products are manufactured to be sold in home country also. A wide range of
clothes is manufactured by Superfine Knitters Ltd.
FABRIC USED
The company use variety of knitted fabrics such as:-

 100% cotton
 Cotton lycra
 100% polyester
 Blended(cotton and polyester)
 Mercerized to plain
 Washed to over dyed
 Other blended fabrics in the manufacturing.
Under own brand ‘SUPER STAR’ the company manufacture knitted Garments for
aforesaid age groups and segments.

TOTAL INCOME
Total income for the fiscal year ended March 31,2014,2015,2016 and for 31st march 2017 was
as shown in the figure :

Period Total Income

March 31 2014 - Rs. 7115.03 lakhs
March 31 2015 - Rs. 7626.95 lakhs
March 31 2016 - Rs. 8490.92 lakhs
March 31 2017 - Rs. 8596.00 lakhs

Table no-1
PROFIT AFTER TAX
Profit after tax for the fiscal year ended march 31,2014,2015,2016 and for march 31st 2017 is as
follows;

Profit for the Period Profit after tax

March 31 2014 - Rs. 48.78 lakhs
March 31 2015 - Rs. 53.55 lakhs
March 31 2016 - Rs. 64.35 lakhs
March 31 2017 - Rs. 65.33 lakhs

Table no-2

COMPETITIVE STRENGTHS:
 Capable to manage large sized and multiple orders.
 Diversified product portfolio
 Quality assurance and standards
 Existing customer and supplier relationships
 Experienced management and key managerial personal
 Strong in-house design capabilities and techniques
 Use of information technology

BUSINESS STRATEGIES:
 Enhancing existing processes and improving operational efficiencies
 Optimal utilization of resources
 Continue to lay emphasis on attaching and retaining the quality talent in the industry
 Enhancing the brand value
 Focusing on inorganic growth
 Strengthening the presence through e-commerce platform
 Maintain focus on long term relationships
 Welfare of the workers
 The above mentioned points indicate the strategies which the company adopts to compete in
the competitive environment. Today the level of competition is also increasing with the
introduction of MNC’s culture. Therefore SUPERFINE
KNITTERS LTD. follows the above mentioned strategies.

ENVIRONMENT POLICY:

The environment policy of Superfine Knitters ltd. is as follows:

 Workplace should be neat and clean.
 Chemicals should be placed carefully and there should not be any dirty thing that will affect
the environment.
 It is compulsory to place one medical kit in every department.
 Extra cloth left after fabric cutting should be regularly sold to the scrap buyer.
 There should be fire extinguisher placed in every department.
 Proper ventilation facility is provided to the workers.
 Facilities for clean drinking water should be provided so that the health of workers not gets
affected.
 Machines should be cleaned regularly with dry cloth.

AMANITIES FOR EMPLOYEES:

The company with its progressive ideas has very much alive to its special obligations to the
community and its employees as well, such as:

 WELFARE
 HEALTH AND FAMILY PLANING
 CANTEEN
 RECREATIONAL ACTIVITIES
 EDUCATIONAL FACILITIES
 PLACES OF WORKSHIP
 WOMEN WELFARE ACTIVITIES
 SOCIAL ACTIVITIES
 ESI DEDUCTION
  PROVIDENT FUND
 FAIR WORKING ENVIRONMENT

For the well-being of the society and improving the socio economic

conditions social works are also undertaken by the company.

HR practices of Superfine Knitters Ltd.

Effective and Efficient HR practices are very much important for every organization. So,
Superfine has also its HR Practices, which helps it a lot to achieve the targets.

Human Resource Management initiatives in any Organization endeavour to change, redefine,

revisit, renew, reinvent, revitalize & restructure the Organization architecture. This is
effectively done with the help of alignment & integration of HR policies & strategies with
business goal & objective.
DIFFERENT BRANDS WHOSE PRODUCTS ARE MANUFACTURED
UNDER SUPERFINE KNITTERS LTD.
 CHAPTER NUMBER-2

WAGE AND SALARY ADMINISTRATION

ANALYSIS OF WAGE AND SALARY ADMINISTRATION:

Wage and salary Administration is essential application of a systematic approach to

the problem of ensuring that employees are paid in a logical, fair and equitable manner.
The payment of wages and salary is an inbuilt system with human force for their activity
performed. To what extent the payment of wages & salary is reasonable and adequate in
consonance to the nature of the work performed.

The payment of wages and salaries is an inbuilt system within human force for their activity
performed. The supply of labour is more than the demand and with the result there is
exploitation of cheap labor policy. Until second word war, the government adopted “LAISSEZ
FAIRE” policy in this regard. It was as late as in 1947, which the industrial unrest becomes so
uncontrollable that a tripartite conference was convinced of

(1) Central and state govt.

(2) Employers

(3) Employees which resulted in Industrial trade resolution.

The basic purpose of wage & salary administration is to establish and maintain an
equitable Wage & salary structure.

The secondary objective is to establish and maintenance of equitable labour cost i.e. an
optimal balancing of conflicting personnel interests so that satisfaction of employer and
employee is maximized.

It is concerned with the financial aspects of needs, motivation and rewards. Managers,
therefore, analyze and interpret the needs of their employees so that rewards can be
individually designed to satisfy these needs.

The first and the most important problem in wage and salary administration is the establishment
of base compensation for the job. This problem is enormously complicated by such factors as
Supply and Demand, Labor organization, the firm’s ability to pay, Variations in productivity
and Cost of living, Government legislation, Including CIVICS RIGHTS ACT.
 In order to attract and retain needed personal for the organization, employees must
perceive that compensation offered is equitable in relation to their inputs and relative
contributions. The most likely used method to solve this problem at present would be job
evaluation, a systematic and orderly process for establishing the worth of job.

The importance of a pay system is an event of major importance to employees and its
effects upon them cannot be ignored. It is a valid system if it results in a structure acceptable to
both employees and employer. In general structures that are internally and externally consistent
have the greatest chances of affecting overall satisfaction. Under reward, over reward and
inconsistency of reward not only tend to lower satisfaction but encourage behavior that often
proves dysfunctional to organizational objectives.

A sound, systematic, consistent system of compensation determination will do much to

promote equity and satisfaction, provided that such a system is understood and accepted by
most employees.

NEED FOR WAGE AND SALARY ADMINISTRATION:

Wage and salary administration is very much needed in an organization to:

 Reward compensation according to efficiency and merit.

 Attract and retain the services of desirable employees.
 Get improved employees morale and productivity.
 Keep labor cost within reasonable limits so as to safeguard the interest of shareholders.
 Helps the employees to compare the pay of different employees with their skill,
knowledge, performance etc.

SALARY:
Fixed periodical payment to a person doing other than manual or mechanical work. It refers
to monthly rate of pay irrespective of the number of hours put by an employee.
WAGES:
Payment paid for manual and mechanical work is wages. Wages means all remuneration ,
capable of being expressed in terms of money which would if the term of the contract
 employment express or implied were fulfilled, be payable to a person employed in respect of
his employment or of work done in such employment. Wages can be paid on hourly basis, or
on the basis of production per unit.
PRINCIPLES OF WAGE AND SALARY ADMINISTRATION
There are several principles of wage and salary plan, policies and practices. The
important among them are:
 Wage and salary plans and policies should be sufficiently flexible.
 Job evaluation should be done scientifically.
 Wage and salary administration plans must always be consistent with overall organizational
plans and programs
 Wage and salary administration plans and programs should be in conformity with the social
and economic objectives of the country for attainment of equity in income distribution and
controlling inflationary trends.
 Wage and salary administration plans and programs should be responsive to the changing
local and national conditions. These plans should simplify and expedite other administrative
process.

ELEMENTS OF WAGE AND SALARY ADMINISTRATION:

 Wage and salary system should have relationship with the performance, satisfaction and
attainment of goals of an individual. Henderson identified the following elements of wage and
salary administration.
 Identifying the available salary opportunities, their costs, estimating the worth of its
members of these salary opportunities and communicating them to employees.
 Relating salary to needs and goals.
 Developing quality, quantity and time standards relating to work and goals.
 Determining the effort necessary to achieve standards.
 Measuring the actual performance.
 Comparing the performance with the salary received.
 Measuring the job satisfaction gained by the employees.
 Evaluating the unsatisfied wants and unreached goals of the employees.
 Finding out the dissatisfaction arising from unfulfilled needs and unattained goals
adjusting the salary levels accordingly with the view to enabling the employees to reach
unreached goals and fulfill the unfulfilled needs.
WAGE INCENTIVES:
Wage incentives are extra financial motivator. They are designed to stimulate human efforts
by rewarding the persons, over and above the time rate remuneration for improvements in the
present or targeted results.
TYPES OF INCENTIVE PLANS:

HALSAY SYSTEMS

GRANT TASK SYSTEM ROWAN SYSTEM

MERRICK DIFFERENTIAL TAYLOR DIFFERENTIAL

PIECE RETE SYSTEM PIECE RATE SYSTEM

Chart no- 2 (Types of incentives plans)

1) HALSAY SYSTEM:
Under this system a standard time is fixed for the completion of job.
If the worker completes the job in less than the standard time, the time actually spent on the job
is paid at hourly rate plus a bonus for the time saved.
2) ROWAN SYSTEM:
Under this system a standard time is allowed for job and a bonus is paid for time saved.
The bonus is percentage of the workers part at hourly basis. The percentage being equal to the
proportion of time saved.
3) TAYLOR DIFFERENTIAL PIECE RATE SYSTEM:
This has a piece rate for output below standard and a piece rate for over above standard with
bonus of 50% of the hourly rate of wages when standard is attained.
4) MERRICK DIFFERENTIAL PIECE RATE SYSTEM:
Straight piece rates are fixed up to 83% of standard time at which a bonus of 10% on reaching
standards or beyond standards.
5) GRANT TASK SYSTEM:
Under this system for open below standard, the worker gets a guaranteed minimum hourly
rate. On reaching the standard he/she gets 20% bonus, for outputs exceeding the standards high
piece rates are paid.

THE MECHANISM OF WAGE AND SALARY ADMINISTRATION:

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

1) FACTORS EFFECTING SALARY LEVELS:

REMUNERATION:
Prevailing rates of remuneration in comparable industries constituted an important factor in
determining the salary levels. The organization in the long run must pay at least equal to the
going rate for the similar jobs in the similar organization. Same amount of remuneration for
same task.
FIRM’S ABILITY TO PAY:
One of the principle considerations is the firm’s ability to pay. The firms should be able to pay
the same even at the tough situation (loss).
COST OF LIVING:
The cost of living is another important factor that influences the quantum of salary
the employees expect that their purchasing power be maintained at least at the same level, if not
increased by adjusting wages to changes in cost of living.
PRODUCTIVITY:
An interesting development in wage determination has been productively standard
this is based on the fact that productivity increase is also result of employees.
 UNION PRESURE AND STRATEGIES:
The wages are also influenced by the strength of various unions and their
bargaining capacity and their strategies.
GOVERNMENT LEGISLATION: Government legislations influence wage determination.

2) WAGE THEORIES:

JUST WAGE THEORY

SUBSISTENCE THEORY

STANDERD OF LIVING THEORY

WAGE FUND THEORY

RESIDUAL CLIMANT THEORY

MARGINAL PRODUCTIVITY THEORY

DIAGRAM NO-2(WAGE THEORIES)

1) JUST WAGE THEORY:

This was the first theory on wages advocated during medieval period. The essence of this
theory is that the worker should be paid on the level of maintain himself and his family.
2) SUBSISTENCE THEORY:
According to Ricardo “the laborers are paid to enable them to subsist and perpetuate the race
without increase or diminution.
3) STANDARD OF LIVING THEORY:
Karl Marx pointed out that “wage of labor is determined by a traditional standard of living,
which, in turn, is determined by the mode of production of the country concerned.
4) THE WAGE FUND THEORY:
According to J.S.Mill, the wages are determined on the basis of the relationship between the amount
of fund allocated for the purpose of wage payment and number of workers in the country.
Wages = Number of workers/Amount of fund allocated for wage payment
5) RESIDUAL CLIMANT THEORY:
According to walker, the wages are determined on the basis of amount left after the payment of
profits and interest to land, entrepreneur and capital respectively out of the production level.
Amount of wages = production value – (rent + profits = interest)
6) MARGINAL PRODUCTIVITY THEORY:
According to J.B. Clark, the wages are determined on the basis of marginal contributions of the
workers to production. The employer stops employing further workers where the contributions of
most recently employed worker are equal to his wages.

BONUS:
The following are the bonus given to the employees and workers as well.
1. ANNUAL BONUS:
Annual bonus to all the employees is paid on accordance with the provision of payment of
bonus act 1965 and its amendments from time to time. The financial year of the company is
from 1st April to 31st March.
2. ATTENDANCE BONUS:
Attendance bonus is payable on the basic of attendance on quarterly basis
to workmen only. Quarterly means Jan-March, April-June, July-September, October-December
of each calendar year. The payment details of attendance bonus are as follows:
1. Rs.330/- per quarter to workman who has put in full attendance in the quarter without taking
any casual leave of sickness leave.
2. Rs.240/- per quarter to a workmen who has availed maximum one day casual leave on one
day sickness leave and has full of attendance.
3. Rs.190/- per quarter to workmen who has availed maximum, two day casual leave or
sickness leave and has balance full attendance. Attendance includes attendance leave, earned
leave, weekly days off, paid holidays and special leaves. With effect of 01-06-2008
 management has decided on union’s request that special leave and leave for company
planning operation are to be considered attendance.
Attendance includes attendance leave, earned leave, weekly days off, paid holidays, and special
leaves.

NATIONAL AND PAID HOLIDAYS:

1. Management declares to paid holidays including 10 national holidays in a year as per unions.
2. In addition of these ten days holidays two optional holidays given to employees.
3. Names of workmen decided to work on paid holidays are to be intimated to department
section to time office one day before.
4. Workman who is called upon paid holidays is not forced to work as it is continuous
manufacturing process.
5. Such of workmen who are asked to work on paid holidays to be given extra wages.
6. Extra wages for working on non-paid holidays for supervisory staff with be given up to Sr.
Asst. Manager can avail compensatory off holidays for such numbers in which worked.
7. 4 Sundays are included in paid holidays.

ALLOWANCES:

The following are the allowances which are given to the employees by the company:

1) TRANSPORTATION ALLOWANCE:

Transportation allowance of Rs.1600/-Per Month is given to the employees.

2) EDUCATION ALLOWANCE:
Education allowance of Rs.200/- for one child is paid by the company.
3) HOUSE RENT ALLOWANCE:
House rent allowance is provided on basic salary. It is paid at 40% on the basic salary.
H.R.A= 40% of the Basic Salary
4) CYCLE ALLOWANCE:
All permanent workmen and supervisory personnel are eligible for cycle allowance of
Rs.65/- per month unskilled workmen Rs.30/- pm.
 5) SPECIAL VEHICLE ALLOWANCE:
Some employees whose duties also involves duties outside the plant premises are given special
vehicle allowance of Rs.100/-pm in the addition to the vehicle allowance if they use their
scooter, motor cycle for such duties, the department head concerned should maintain a long
book in such cases.
6) NIGHT SHIFT ALOWANCE:
Night shift allowance will be paid by the company at the rate of Rs.12/- per shift
attended fully by the workmen.
The eligible workmen are:
1. Regular workmen
In case the workmen works partially in the third shift then he shall not be eligible for night
shift allowance.
7) UNIFORM ALLOWANCE:

Uniform allowance of Rs.450/-pm is paid to certain category of employees and above.

8) MEDICAL ALLOWANCE:
Medical allowance of Rs.1250/- is provided by the company to the employees.
9) HOSTEL ALLOWANCE:
Hostel allowance is also provided in the company.

EXTRA WAGES:
 These are granted on the recommendation of the departmental heads in case of
employees works on one day off.
 In case of employees works on extra hours beyond their duty.
 In case of employees asked to work n paid holidays or optional holidays, one extra
wage is given in the paid holiday.
 In case of employees claiming extra wage of the extra work after the normal working
hours, extra work of minimum three hours and above will be considered.
 In case of deputy managers and Sr. Deputy Manager’s works on Sunday as paid
holiday, they are given compulsory d-off for that days.
 4 Sundays are paid to the employees. In the monthly payment 4 Sundays are included.
  Managers and above are not given extra recommendations for working d-off paid day.

CLASSIFICATION OF OVERTIME:

The overtime is classified as detailed below:

 For emergency breakdowns due to which production activities etc. get hampered.
 To fill up sanctioned complement due to leave vacancy, absence where usual workmen
could not be arranged.
 For completion of normal work which could not be completed in regular time. For
completion of annual targets of such works which are not being regular in nature but
have asked to carry in regular time.

CLASSIFICATION OF WORKERS:

Workers are classified in four categories:

 Skilled workers
 Semi-skilled workers
 Unskilled workers
 Highly skilled workers

Wages and salaries are paid to the workers on the basis of their qualification and
experience in the past.

BASIS OF WORKING:

The workers are working on two bases

 Permanent basis
 On contract basis

The workers who are permanent workers and permanent employees are paid several
benefits by the company. Proper records of the employees working in the company are
maintained. They got the benefit of ESI and EPF.
DEDUCTIONS:

Fixed amount is deducted from the salary of employees as per the rules of the
government. The deductions are made to provide them the benefits. Some of the deductions
are mentioned as below:

 ESI DEDUCTION:

Under Employee State Insurance scheme certain amount of funds are deducted from the
salary of the employee p.m. The rate of ESI deduction for employer and employee is
different. The rates are mentioned below:

Sr. No. Particulars Rate

1 Employee contribution 1.75%

2 Employer contribution 4.75%
Table no.-3(ESI Deductions)

Employee state insurance is a self-financing social security and health insurance scheme for
Indian workers. This fund is managed by the employees’ state rules and regulations
stipulated there in ESI act 1948. ESIC is an autonomous corporation by a statutory creation
under Ministry of Labour and Employment, Government of India.

BENEFITS OF ESI:

The employees registered under the scheme are entitled to medical treatment for themselves
and their dependents, unemployment cash benefit in certain contingencies and maternity
benefits in case of women employees. In case of employment related disablement or death,
there is provision for a disablement benefit and a family pension respectively. Cash benefits
can be availed in any of 830 ESI centers throught India.
  PROVIDENT FUND:
Provident fund is another name of pension fund. Its purpose is to provide employees with
lump sum payments at the time of exit from their place of employment. In superfine knitters
ltd. the rate of Provident Fund deduction is as follows:
Sr. No. Particulars Rate
1 Employee contribution 12%
2 Employer contribution 3.67%+8.33%=12%
Table no- 4(Provident fund rate)

Both employer and employee contribute towards provident fund. The details are as below:

 Employee contribution to PF: as shown in the table the amount of contribution is

12%. The amount is charged on;

12% of (Basic Salary+ DA)

Note: In case of private companies, there is no DA; hence it is 12% of basic.

 Employer Contribution to PF:

Employer also contributes 12%, but it goes in 2 heads
 Employee pension scheme (EPS) 8.33%
 Provident Fund- 3.67%

A total of 24% is transferred to PF every month. The amount is deposited at the Employee
Provident Fund Organization. Any company having more than 20 employees is required by
law to register with EPFO. This contribution creates good corpus and aims to make an
individual financially secure after his or her retirement.

RULES RELATED TO ESI AND PF DEDUCTION

Certain rules related to ESI deduction and Provident Fund is required to be followed.
Eligibility for ESI Deduction:
  ESI scheme applies to all establishments like corporate organizations, factories,
restaurants, cinema theatres, and offices, medical and other institutions which are
located in the scheme-implemented areas.

 Where 10 or more people are employeed ESI deduction is mandatory.

 ESI deduction is calculated on an employee’s gross pay. Gross salary is described as the
total income earned while working in a job, before any deductions made for health
insurance, social security and state or federal taxes.

 All employees of a covered unit, whose monthly salary (excluding bonus, leave
encashment) does not exceed Rs. 21000 per month, are eligible to avail benefits under
ESI Act.
Eligibility for PF Deduction:
 Both the employer and the employee contribute equal amount, which is 12% of the
salary of the employee.

 Employees’ contribution may differ. Employees can contribute more than 12% of their
salary voluntarily. However, in such case, the employer is not bound to match the extra
contribution of employee.

 For contribution, the salary comprises of components such as: Basic Wages, DA,
conveyance allowance and special allowance

 For PF deduction, the maximum limit of salary of the employee is Rs. 15000/-pm.
Salary limit for deduction
Sr. Deductions available Limit of salary
No
1 Under ESI Up to 21000/- pm
2 Under Provident Fund Up to 15000/- pm
Table no-5
 WORKMEN PAY SCALE:

GRADE AND SCALE RATE CHART W.E.F. 01-03-2018

MINIMUM WAGE
SR. CATEGORIES
RATE W.I.F.(01-03-
NO
18)
UN-SKILLED(GENERAL)
1 7855
Helper, G.Worker, chowkidar, Gateman, Security Guard, Field
boy, Thread Cutter, Sweeper, Boiler Helper

2 SEMI-SKILLED
Packer, Tailor, Checker, Asstt. Electrician, Asstt. MC 8635
Operator, Assistant store keeper, Button holder, Garment
Checker, Production Checker, Turner, Weaver, Winderwala,
Spotting Opt., Stain Operator.

3 SKILLED

Tailor, Overlock Operator, Folding Operator, M/C Operator,

m. Opt, Tool Tape Opt., Pressman, Kaj Button Operator,
9530
Maintenance Man, Collor master, Purchase Man, Marketing
Man, Sr. Merchandiser, Packing Supervisor, Accounts officer,
Quality Controller, Store Keeper, Assistant Accountant,
Computer Operator, line Quality Controller, Merchandiser,
Dispatcher.

4 HIGHLY SKILLED 10565

Supervisor, Designer, Quality Controller, Incharge.

Chart no-5.1
 CHAPTER NO-3

RESEARCH METHODOLOGY
RESEARCH METHODOLOGY

Research methodology in a way is a written game plan for conducting research. Research
methodology has many dimensions. It includes not only the research methods but also
considers the logic behind the methods used in the context of the study and complains why only
a particular method of technique has been used. The basic task of research is to generate
accurate information for u in decision making. Research can be defined as the systematic and
objective process of gathering, recording and analyzing data for aid in making business
decisions.

1) OBJECTIVE OF THIS STUDY:

 The objectives of this study are explained as below. The study was conducted;
 To know whether the workers/employees are contented with their salary or not.
 The research was conducted to know whether the wages and salaries are paid as per
law or not.
 To know wage and salary structure is implemented according to qualification &
experience or not.
 To know that the wages and salaries are paid on time.
 To study the wage and salary policies of the company.

2) SOURCES OF DATA: Project is based on certain data, which is collected from data
source. The sources of data are:-

(a)PRIMARY DATA
(b) SECONDARY DATA
a) PRIMARY DATA
The questionnaire method and personal interaction was used for collecting the data relating to
the study. The objectives of the research were explained to the respondent, before getting
questionnaire filled. In certain cases, the questionnaire was handed over to the respondent to fill
it up.
 b) SECONDARY DATA:
Secondary data was collected through
i. Internet
ii. Books
iii. Company site
iv. News Papers
3) SAMPLE SIZE:
Sample of 30 respondents is taken.
4) SAMPLING TECHNIQE:
The selection of respondents was done on the basis of convenience sampling (non-
Probability).
5) STATISTICAL METHODS TO PRESENT DATA
Data analysis and interpretation- classification and tabulation transforms the raw data collected
through questionnaire into useful information by organizing and compiling the bits of data
contained in each questionnaire i.e., observations and responses are converted in to
understandable and orderly statistics are used to organize and analyze the data:
 Simple tabulation of data in MS-WORD.
 Calculating the percentage of the responses.
 Charts, Bar Diagrams and Pie-Charts.
6) TECHNIQUES OF ANALYSIS:
Percentages
Diagrams
Pie-charts and bar diagrams
CHAPTER NO-4
DATA ANALYSIS AND
INTERPRETATION
ANALYSIS OF DATA
Evaluation of the study:
A detailed analysis of the study is necessary and is to be considered in order to compare the
actual theory with that practical the variants of which may form the basis for improvements.
Keeping this point in view and to fulfill the evaluation variants of which may form the basis for
objectives of the studies an attempt has been made to segment the various respondents on the
basis of some aspects collected from them through questionnaire. These are depicted through
tables and graphs.
The copy of questionnaire administered is enclosed and the sample size was 30
respondents are enclosed at the end of this project. All the calculations and numerical
interpretations are for 100%.
Q1:- Are you happy with your job
(a) YES (b) NO
TABLE NO: 1
SR. NO OPTIONS NO. OF PERCENTAGE
RESPONDENTS (%)
1 YES 25 90
2 NO 5 10
TOTAL 30

JOB STISFACTION
30

25 27
20

15
Series1
10

0 3
YES NO

CHART NO-4.1
Interpretation:

In table no.1 it is shown that 90% of the respondents are happy with theirjob.10% of
respondents are not happy with their job. The maximum numbers of respondents are of an
opinion that they are satisfied with their job. Minimum numbers of respondents are of the
opinion that they are not satisfied with their job.

Q2: Which factor is more important to have job satisfaction

(a)Salary (b) Management (c) Welfare benefits (d) Working Conditions

TABLE NO: 2

NO. OF
SR. NO OPTIONS RESPONDENTS PERCENTAGE
1 Salary 10 33%
2 Management 5 17%
3 Welfare Benefits 5 17%
4 Working Conditions 10 33%
Total 30 100%

Salary Management Welfare Benefits Working Conditions

33% 33%

17% 17%

CHART NO-4.2
Interpretation:

In table no.2 it is shown that 33% of employees are satisfied with salary, 17% say that their
management is important for job satisfaction, 17% say that their work benefits is important and
33% say that working conditions are important for job satisfaction.

Q3: The salary gives good feeling and personal accomplishment

(a)Strongly agree (b) Agree (c) Partly agree (d) Disagree

TABLE NO-3

NO OF
SR.NO OPTIONS RESPONDENTS PERCENTAGE
1 Strongly agree 20 67
2 Agree 5 16
3 Partly Agree 5 17
4 Disagree 0 0
30 100

0
5
Strongly agree
Agree
5
Partly Agree

20 Disagree

CHART NO-4.3

Interpretation: In table 6.3, 67% of respondents strongly feel that salary gives good feeling
and personal Accomplishment, 16% of them is agreed, 17% are partly agreed and no one is
disagreed. After survey it has been found that all the employees who are working in Superfine
Knitters Ltd. are satisfied with their salaries and it gives good feeling and personal
accomplishment to 67% of them Accomplishment, 16% of them is agreed, 17% are partly
agreed and no one is disagreed. After survey it has been found that all the employees who are
working in Superfine Knitters Ltd. are satisfied with their salaries and it gives good feeling and
personal accomplishment to 67% of them.

Q4: Salary should be given on the basis of performance of the employees

(a) Strongly agree (b) agree (c) partly agree (d) disagree
TABLE NO.4
SR. NO OPTIONS NO OF PERCENTAGE
RESPONDENTS (%)
1 Strongly agree 15 50
2 Agree 5 16
3 Partly agree 5 17
4 Disagree 5 17
30 100

Salary on the basis of performace

16
14
12
10
8
6
4
2
0
Strongly agree Agree Partly agree Disagree

Series1

CHART NO.4.4

Interpretation: Majority of respondents i.e.50% of them strongly agree that Salary Should be
given on the basis of performance, 16% of them agree, 17% respondents partly agree and 17%
of them disagreed. The maximum numbers of respondents are of the opinion that salaries
should be given on the basis of performance of the employees.

Q5: Compensation commensurate with responsibility to all levels of employees

(a) Strongly Agree (b) Agree (c) Partly Agree (d) disagree
TABLE NO.5
SR NO. OPTIONS NO OF PERCENTAGE
RESPONDENTS (%)
1 Strongly agree 5 17
2 Agree 15 50
3 Partly agree 3 10
4 Disagree 7 23
30 100

16

14

12

10

0
Strongly agree Agree Partly agree Disagree
Series1

CHART NO-4.5

Interpretation: Most of the respondents agreed that the compensation commensurate with
responsibility to all levels of employees i.e. 50%. But some of them strongly agreed at 17%,
partly agreed 10%, disagreed 23%.
Q6: Are you getting the salaries on time every month

(a) Yes (b) No

TABLE NO-6

SR. NO. OPTIONS NO. OF PERCENTAGE

RESPONDENTS (%)
1 Yes 30 100
2 No 0 0
30 100

Getting salaries on time

35

30
No. of respondents %

25

20

15

10

0
Yes No

CHART NO-4.6

Interpretation:

In the table no. 6.6, 100% respondents said that they are getting the salaries on time

every month. None of them responded negatively.100 percentage respondents stated that they
are getting the salaries on time every month.
 Q7: Whether wages, salaries and increments are followed every year

(a) Strongly agree (b) Agree (c) Partly agree (d) Disagree.

TABLE NO-7

SR. NO. OF
NO OPTIONS RESPONDENTS PERCENTAGE
1 Strongly Agree 20 67
2 Agree 5 16
3 Partly Agree 5 17
4 Disagree 0 0
30 100

25

20
No. of respondents

15

10

0
Strongly Agree Agree Partly Agree Disagree
options

CHART NO-4.7

Interpretation:

In the table no 5.7, 67% respondents strongly agree, 16% agree, 17% partly agree and none of
them disagreed that the wages, salaries and increments are followed every year in the company.
After the survey it has found that maximum number of respondents agrees that wages, salaries
and increments are followed every year.
Q8: The wage and salary system for all the employees in factory is satisfactory

(a) Strongly agree (b) Agree (c) Partly agree (d) Disagree

TABLE NO-8

SR. NO. OF
NO OPTIONS RESPONDENTS PERCENTAGE
1 Strongly agree 15 50
2 Agree 6 20
3 Partly agree 5 17
4 Disagree 4 13
30 100

wages and salaries are satisfactory

13%

Strongly agree
17% Agree
50%
Partly agree
Disagree

20%

CHART NO-4.8

Interpretation:

In the table no.-5.8, 50 percentages of the respondents strongly agree that they are satisfied
with wages and salary system, 20 percentages of them agree, 17% of them partly agree and 13
percentages of them disagreed. Maximum number of respondents opinion is that salary system
in factor is satisfactory
Q9: Wage and salary structure implemented according to qualification and experience
(a) Strongly agree (b) Agree (c) Partly agree (d) Disagree

TABLE NO-9

NO. OF
SR. NO OPTIONS RESPONDENTS PERCENTAGE
1 Strongly agree 10 33
2 Agree 12 40
3 Partly agree 6 20
4 Disagree 2 7
30 100

7%

20% 33%
Strongly agree
Agree
Partly agree
Disagree

40%

CHART NO-4.9

Interpretation:

In the table no-5.9, 33% of the respondents strongly agree that they wage and salary structure
implemented according to qualification and experience, 40% of them agree with the statement,
20%s partly agree, 7% disagree. Maximum number of respondents is satisfied with wage and
salary. Minimum number of respondents is not satisfied with this.
Q10: Bonus and Incentives are relative to the employee’s contribution

(a) Strongly agree (b) Agree (c) Partly agree (d) Disagree

TABLE NO-10

SR. NO. OF
NO OPTIONS RESPONDENTS PERCENTAGE
1 Strongly agree 5 17
2 Agree 16 53
3 Partly agree 4 13
4 Disagree 5 17
30 100

BONUS AND INCENTIVES ARE RELATIVE TO CONTRIBUTION

18
16
NO OF RESPONDENTS %

14
12
10
8
6
4
2
0
Strongly agree Agree Partly agree Disagree
OPTIONS

CHART NO-4.10

Interpretation:

In the table no- 5.10, 17% of the respondents strongly agree that bonus and incentives are
relative to employees contribution, 53% of them agree , 13% respondents partly agreed and
17% respondents disagreed that bonus and incentives are relative to the employees
contribution. It has found that maximum number of respondents agreed that bonus and
incentives are relative to their contribution. Minimum of them did not agree with that.
Q11: Are you getting your pay as per the laws

(a) Yes (b) No

TABLE NO-11

SR. NO. OF
NO OPTIONS RESPONDENTS PERCENTAGE
1 Yes 30 100
2 No 0 0
30 100

35

30
percentage of responces

25

20

15
Series1
10

0
Yes No
options

CHART NO-4.11

Interpretation:

In the table no-5.11, 100 percentage of the respondents said that they are getting their pay as
per the laws, none of them i.e. 0 percentage responded negatively. 100% respondents stated that
they are getting wages according to law. Permanent employees are getting more than the
minimum wages which includes their incentives and bonus on the basis of their experience.
Contract labour is getting wages according to minimum wages act.
 Q12: Are employees paid for overtime if they work over and above their contracted
hours

(a) Yes (b) No

TABLE NO-12

NO. OF
SR. NO OPTIONS RESPONDENTS PERCENTAGE
1 Yes 30 100
2 No 0 0
30 100

100%
90%
80%
No. of respondents %

70%
60%
50%
40%
30%
20%
10%
0% Series1, 0
Yes No
Options

CHART NO-4.12

Interpretation:

In the table no-5.12, it has found that 100% of the respondents agree that the employees are
paid for overtime. 0 % of them disagreed for that. The standard working hours in a week is 48
hours. As an organization factor avoids persistent working of extra hours. Employees are paid
overtime with the monthly wages for any extra hours worked. 100% responded favorably
which shows that employees do get monitory benefits as per law when they put in extra hours
at work due to business requirements.
 Q13: How frequently your wages and salary structure is modified

(a) Yearly (b) Half yearly (c) Quarterly (d) More than 1 year

TABLE NO-13

SR. NO. OF
NO OPTIONS RESPONDENTS PERCENTAGE
1 Yearly 26 86.67
2 More than 1 year 4 13.33
30 100

Yearly
More than 1 year

CHART NO-4.13

Interpretation:

In table no-5.13, 53.33 percentages of the respondents say that wage and salary structure is
modified every year, 23.33% of the respondents say that wages and salary structure is modified
half yearly. 15% of the respondents say that wages and salary structure is modified quarterly,
10% of the respondents say that wages and salary structure is modified after more than one
year.
 Q14: Does the company change DA as per the changes taking place in the
environment
(a) Yes (b) No

TABLE NO-14

NO. OF
SR. NO OPTIONS RESPONDENTS PERCENTAGE
1 Yes 25 83.33
2 No 5 16.77
30 100

Change in DA as per change in environment

17%

Yes
No
83%

CHART NO-4.14

Interpretation:

In table no-5.14, it is clear that 83.33 percentages answered favorably whereas 16.77
percentages of the respondents felt that they were paid less, when they are asked about DA
by the management. Maximum number of the respondents opinion is that they are getting
DA according to law. Minimum of them disagreed with this.
 Q15: What is your experience in comparing salary/wage with similar companies?
(a) Very Good (b) Good (c) Bad (d) Very Bad

Table no-15

NO. OF
SR. NO OPTIONS RESPONDENTS PERCENTAGE
1 Very Good 24 80
2 Good 3 10
3 Bad 3 10
4 Very Bad 0 0
30 100

Experience in comparison to other companies

10%
Very Good
Good
10% 10%
Bad
80%
Very Bad

0%

CHART NO-4.15

Interpretation:

In the table no-5.15, it is clear that only 80 percentages of employees are saying that they are
very happy with the wage/salary that was provided by the company when comparing with other
companies and 20% of employees are saying that it is good when comparing to other
companies.
Q16: SUGGESTIONS

(a) You want better salary

(b) More monitory benefits are expected

TABLE NO-16

NO. OF
SR. NO OPTIONS RESPONDENTS PERCENTAGE
1 Better salary 24 80
2 More monitory benefits 6 20
30 100

Suggestions

Better salary
80% 20% 20%
More monetary benefits

CHART NO-4.16

Interpretation:

In table no-5.16, it is clear that out of the sample of 30 respondents 80% of them want better
salary. And among them 20% wants more monitory benefits. Maximum numbers of
respondents are in favor of getting better wages/salaries and minimum numbers of respondents
demand more monitory benefits.
CHAPTER NO-5
FINDINGS
 FINDINGS

 Most of the respondents are satisfied with their job.

 67% respondents strongly agreed that their salary is providing good feeling and
accomplishment.
 50% of the respondents strongly agreed that rewards should be given on the basis of
performance and 17% disagreed on the point.
 Many respondents agreed with the compensation
 Most of the employees agreed with the organization policies.
 Mostly all the employees agreed that company is much concern about employees.
 Many of the respondents agreed recognition of employee’s contribution.
 67% respondents strongly agreed that wages, Salaries and increments are followed every
year, and no one disagreed.
 Most of the respondents strongly agreed about the Wages and Salary system in factor is
satisfactory and 13% disagreed.
 Many employees agreed that Wage and Salary structure implemented according to
qualification and experience.
 53% of the respondents agreed that Bonus and Incentives are relative to the employee
contribution.
 100% respondents responded positively that they are getting their pay as per the law.
 All the workers (100%) reacted positively that they are paid for overtime.
 Maximum of the respondents agreed that they are getting benefits on time and when
needed.
 33% of the respondents agreed that better working conditions will provide good feeling of
accomplishment.
 7% of the respondents disagreed on the point that salaries are paid as per their
qualification.
CHAPTER NO-6

SUGGESTIONS
SUGGESTIONS

On the basis of findings of research, I would like to suggest the following:

 The company should provide some extra monetary benefits to the employees because in

the study 20% of the respondents want extra monitory benefits to be provided.

 The management may announce efficiently based increments to attract efficient, skilled,

committed personal, So that the experienced and skilled employee do not go to other

industries and create a competition to this organization.

 Wages and salaries increments should be followed every year.

 Bonus and incentives should be relative to the employees’ contribution.

 Wage and salary structure should be modified regularly.

CHAPTER NO-7

LIMITATIONS
LIMITATIONS OF THE STUDY

The study made by me in SUPERFINE KNITTERS LTD. was confined to some limitations.

The limitations of the study are described as follows;

 The lack of availability of information.

 The sample size taken for research is small due to constraints of time.

 Some of the employees had not co-operated in filling of questions.

 Non- work load cooperation of some respondents due to the reasons of the work load.

 Finding and conclusion drawn out of the salary are based on response from the employees.

The possibility of respondents being biased cannot be ruled out.

CHAPTER NO-8
CONCLUSION
CONCLUSION

An organization has to balance fairly financial rewards, extrinsic awards. The objectives of
wage and salary administration are numerous and sometimes conflict with each other.
Candidates decide upon their career in a particular organization mostly on the basis of amount
of remuneration the organization offers. Qualified and competent people join the best paid
organization. The organization should aim at payment of wages and salaries at that level where
they can attract competent and qualified people. If the salary does not stand comparably
favorable with that of other similar organization, employees quit the present one and join the
other organization.
BIBLIOGRAPHY
 BIBLIOGRAPHY

Websites:
www.superfineknitters.com
www.teachoo.com
www.quora.com
www.scribd.com
www.yahoo.com
www.wikipedia.org

Primary Data:
Questionnaire
ANNEXURE
 QUESTIONNAIRE

A STUDY ON EVALUATION OF WAGES AND SALARY ADMINISTRATION

NAME:

DESIGNATION:

1) Are you happy with your job

(a)Yes (b) No
2) Which factor is here important to have job satisfaction?

(a)Salary (b) Management

(c) Welfare benefits (d) Working condition

3) The salary gives good feeling and personal Accomplishment

(a) Strongly agree (b) Agree

(c) Partly Agree (d) Disagree

4) Rewards should be given on the basis of better performance of the employees

(a) Strongly Agree (b) Agree

(c) Partly agree (d) Disagree

5) Compensation commensurate with responsibility to all levels of employees

(a) Strongly Agree (b) Agree

(c) Partly Agree (d) Disagree

6) Are you getting the salaries on time every month

(a) Yes (b) No

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

(a) Strongly Agree (b) Agree

(c) Partly agree (d) Disagree

8) The wages and salary system for all employees in factor is satisfactory

(a) Strongly Agree (b) Agree

(c) Partly Agree (d) Disagree

9) Wages & salary structure implemented according to qualification & experience

(a) Strongly Agree (b) Agree

(c) Partly agree (d) Disagree

10) Bonus & Incentives are relative to the employees’ contribution

(a) Strongly agree (b) Agree

(c) Partly Agree (d) Disagree

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

(a) Yes (b) No

12) Are employees paid for overtime if their work over and above their contracted hours

(a) Yes (b) No

13) How frequently your wages and salary structure is modified

(a) Yearly (d) More than 1 year

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

(a) Yes (b) No

15) What is your experience in comparing salary/wage with similar companies

(a) Very good (b) Good

(c) Bad (d) Very Bad

16) Suggestions

(a) You want better salary

(b) More monitory benefits are expected