PROJECT REPORT

ON

A STUDY ON COMPENSATION MANAGEMENT

Submitted in partial fulfillment of the requirements for the award of the degree of

MASTER OF BUSINESS ADMINISTRATION

to

Integral University, Lucknow

Under the Guidance of : Submitted By

Prof. Shuzuauddin Rishi Mishra
(Assistant Professor) MBA-IVth Sem.
Enroll No. 192DDE1269

Session-2020-21
Department of Business Management
Faculty of Management

INTEGRAL UNIVERSITY,
LUCKNOW

1
 Department of Business Management
Faculty of Management & Research
Integral University
Lucknow

CERTIFICATE OF ORIGINALITY

TO WHOM IT MAY CONCERN

I Rishi Mishra, Enrolment No. 192DDE1269 from MBA IV sem of the

Department of Business Management, Integral University Lucknow hereby
declare that the Dissertation Report entiled" A STUDY ON COMPENSATION
MANAGEMENT " at SNAPDEAL is an original work and the same has not
been submitted to any other institution for the award of any other degree.
A presentation of the Dissertation Report was made on A STUDY ON
COMPENSATION MANAGEMENT and the suggestion as approved by the
faculty were duly incorporated.

Date: Signature of Student

1
 DECLARATION

I do hereby declare that the Dissertation report titled “A STUDY ON

COMPENSATION MANAGEMENT " at” submitted by me in partial fulfillment of

the requirement of Master of Business Administration, exclusively prepared

and conceptualized by me and is not submitted to any other Institution or

University or published anywhere before for the reward of any

Degree/Diploma/Certificate. It is the Original work of mine and has not been

obtained from any other part.

Rishi Mishra
Enroll No. 192DDE1269

1
 ACKNOWLEDGEMENT

We are very much obliged to Prof. (Dr.) Aftab Alam, Assistant Professor, Department of

MBA, Integral University, Lucknow for suggesting this topic and also for guiding us

throughout the course of this dissertation. We also have the good fortune to be able to draw

upon the devotion, deep knowledge and mature experience of his for the completion of this

study.

We are grateful to all our classmates for their co-operation and suggestion. Moreover we are

greatly indebted to our parents for their encouragement and support.

Above all we are deeply indebted to “The God Almighty” who always remains as the

helping hand behind us in all crises.

Rishi Mishra
Enroll No. 192DDE1269

1
 TABLE OF CONTENT

 Introduction
 Review of Literature
 Objectives of the study
 Research Methodology
o Method of data collection.
o Data Source
o Sample design
o Universe
o Sample type
o Sample size
o Sample Unit
o Statistical tools to be used
 Problems and limitations
 Findings, Analysis & Interpretations
 Suggestions/Recommendations
 Conclusion
 Appendix
 Bibliography

1
 INTRODUCTION OF COMPENSATION MANAGEMENT

Compensation Management is an integral part of the management of the organization.

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. To be effective, the managers must

appreciate the value of competitive pay, their human resources, and have an investment

view of payroll costs. It is of prime importance for an organization to maintain pay levels

that attract and retain quality employees while recognizing the need to manage payroll

costs.

The literal meaning of compensation is to counter-balance. In the case of human resource

management, compensation is referred to as money and other

Benefits received by an employee for providing services to his employer. Money and

benefits received may be in different forms-base compensation in money and various

benefits, which may be associated with employee's service to the employer like provident

fund, gratuity, insurance scheme and any other payment which the employee receives or

benefits he enjoys in lieu of such payment.

"Compensation includes direct cash payments, indirect payments in the form of employee

benefits and incentives to motivate employees to strive for higher levels of productivity”

1
Compensation is a tool used by management for a variety of purposes to further the existence

and growth of the company.

1
Objectives of Compensation management are:

1.Attracting and Retaining Personnel: From organization’s point of view, the

compensation management aims at attracting and retaining right personnel in the

Organization Not only they require persons who are well qualified but they are also retained

in the organization. There is no dirt of personnel at operative levels but the problems come at

the managerial and technical levels

Particularly for growing companies. Not only have they required persons who are well

qualified but they are also retained in the organization. In the present day context, managerial

turnover is a big problem particularly in high knowledgebase Organizations.

2. Motivating Personnel: Compensation management aims at motivating personnel for

higher productivity. Monetary compensation has its own limitations in motivating people for

superior performance.

3. Optimizing Cost of Compensation: Compensation management aims at optimizing cost

of compensation by establishing some kind of linkage with performance and compensation.

1
4. Consistency in Compensation: Compensation management tries to achieve consistency-

both internal and external-in compensating employees. Internal consistency involves payment

on the basis of criticality of jobs and employees' performance on jobs.

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 a compensation system are as follows:

                      

1
SCOPE OF COMPENSATION MANAGEMENT

Compensation management helps to determine the relative worth of a job in an organization

in a systematic, consistent and accurate manner. It also helps in estimating the basic pay for

each job in accordance with the importance of the job in the organizational hierarchy .once a

basic pay is determined , the rewards , incentives and benefits attached worth the pay,

positions and performance are also determined . The basic wage, incentives and rewards and

benefits, together form the compensation package of an employee.

1
1
 Direct Compensation

Direct compensation refers to monetary benefits offered and provided to employees in return

of the services they provide to the organization.

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. 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.

1
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 medi-claims for them and their family members. These medi-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

1
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.

Indirect Compensation

Benefits contributions may include: Medical Insurance Prescription Drug Insurance Dental

Insurance Group Life Insurance Long-Term Disability Insurance Accidental Death Benefits

Tax contributions may include: Disability (Medicare) Worker Compensation Insurance,

Unemployment Insurance

Retirement contributions may include: Severance Award, Voluntary or Involuntary

Retirements Benefits such as VRS etc.

Fringe Benefits or Perks

Employee benefits and (especially in British English) benefits in kind (also called fringe

benefits, perquisites, perks) are various non-wage compensations provided to employees in

addition to their normal wages or salaries. Where an employee exchanges (cash) wages for

some other form of benefit, this is generally referred to as a 'salary sacrifice' arrangement. In

1
most countries, most kinds of employee benefits are taxable to at least some degree.

Fringe benefits can also include but are not limited to: (employer-provided or employer-paid)

housing, group insurance (health, dental, life etc.), income protection, retirement benefits,

daycare, tuition reimbursement, sick leave, vacation (paid and non-paid), social security,

profit sharing, funding of education, and other specialized benefits

The purpose of the benefits is to increase the economic security of employees.

The term perks is often used colloquially to refer to those benefits of a more discretionary

nature. Often, perks are given to employees who are doing notably well and/or have seniority.

Common perks are company cars, hotel stays, free refreshments, leisure activities on work

time (golf, etc.), stationery, allowances for lunch, and—when multiple choices exist—first

choice of such things as job assignments and vacation scheduling They may also be given

first chance at job promotions when vacancies exist.

Employee benefits in the United States might include relocation assistance; medical,

prescription, vision and dental plans; health and dependent care flexible spending accounts;

retirement benefit plans (pension, 401(k), 403(b)); group-term life and long term care

insurance plans; legal assistance plans; adoption assistance; child care benefits; and possibly

other miscellaneous employee discounts (e.g., movies and theme park tickets, wellness

programs, discounted shopping, hotels and resorts, and so on).

1
 NON FINANCIAL COMPENSATION

Non-financial compensation is different incentives given to employees that are not in the

form of direct pay.

Alternative Work Schedules - There are many alternatives to a traditional 5 day, 8-hour

work schedule.

On-the-Job Training- Showing workers how to perform tasks by observing others.

Work/Life Balance - When an employer understands the needs employees have to juggle in

their lives.

Developmental Opportunities - Training and other opportunities for employees to expand

their knowledge and improve their skills.

Casual Dress - Allowing employees to relax their dress code at work.

1
 COMPANY PROFILE

Chairman Ratan Tata speaks as Ravi Kant , company's Managing Director and P.M. Telang,

Executive Director of commercial vehicles,

Tata Motors Limited is India's largest automobile company, with consolidated

revenues of Rs.70,938.85 crores (US $ 14 billion) in 2008-09. It is the leader in

commercial vehicles in each segment, and among the top three in passenger vehicles with

winning products in the compact, midsize car and utility vehicle segments. The company

is the world's fourth largest truck manufacturer, and the world's second largest bus

manufacturer.

The company's 23,000 employees are guided by the vision to be "best in the manner

in which we operate best in the products we deliver and best in our value system and

ethics."

Established in 1945, Tata Motors' presence indeed cuts across the length and breadth

of India. Over 4 million Tata vehicles ply on Indian roads, since the first rolled out in

1954. The company's manufacturing base in India is spread across Jamshedpur

(Jharkhand), Pune (Maharashtra), Lucknow (Uttar Pradesh), Pantnagar (Uttarakhand) and

Dharwad (Karnataka). Following a strategic alliance with Fiat in 2005, it has set up an

industrial joint venture with Fiat Group Automobiles at Ranjangaon (Maharashtra) to

produce both Fiat and Tata cars and Fiat power trains. The company is establishing a new

plant at Sanand (Gujarat). The company’s dealership, sales, services and spare parts

network comprises over 3500 touch points; Tata Motors also distributes and markets Fiat

branded cars in India.

1
 Tata Motors, the first company from India's engineering sector to be listed in the New

York Stock Exchange (September 2004), has also emerged as an international automobile

company. Through subsidiaries and associate companies, Tata Motors has operations in

the UK, South Korea, Thailand and Spain. Among them is Jaguar Land Rover, a business

comprising the two iconic British brands that was acquired in 2008. In 2004, it acquired

the Daewoo Commercial Vehicles Company, South Korea's second largest truck maker.

The rechristened Tata Daewoo Commercial Vehicles Company has launched several

new products in the Korean market, while also exporting these products to several

international markets. Today two-thirds of heavy commercial vehicle exports out of South

Korea are from Tata Daewoo. In 2005, Tata Motors acquired a 21% stake in Hispano

Carrocera, a reputed Spanish bus and coach manufacturer, with an option to acquire the

remaining stake as well. Hispano's presence is being expanded in other markets. In 2006, it

formed a joint venture with the Brazil-based Marco polo, a global leader in body-building

for buses and coaches to manufacture fully-built buses and coaches for India and select

international markets. In 2006, Tata Motors entered into joint venture with Thonburi

Automotive Assembly Plant Company of Thailand to manufacture and market the

company's pickup vehicles in Thailand. The new plant of Tata Motors (Thailand) has

begun production of the Xenon pickup truck, with the Xenon having been launched in

Thailand in 2008.

1
 Tata Motors is also expanding its international footprint, established through exports

since 1961. The company's commercial and passenger vehicles are already being marketed

in several countries in Europe, Africa, the Middle East, South East Asia, South Asia and

South America. It has franchisee/joint venture assembly operations in Kenya, Bangladesh,

Ukraine, Russia and Senegal.

The foundation of the company's growth over the last 50 years is a deep

understanding of economic stimuli and customer needs, and the ability to translate them

into customer-desired offerings through leading edge R&D. With over 2,000 engineers and

scientists, the company's Engineering Research Centre, established in 1966, has enabled

pioneering technologies and products. The company today has R&D centers’ in Pune,

Jamshedpur, Lucknow, in India, and in South Korea, Spain, and the UK. It was Tata

Motors, which developed the first indigenously developed Light Commercial Vehicle,

India’s first Sports Utility Vehicle and, in 1998, the Tata Indica, India's first fully

indigenous passenger car. Within two years of launch, Tata Indica became India’s largest

selling car in its segment. In 2005, Tata Motors created a new segment by launching the

Tata Ace, India's first indigenously developed mini-truck.

In January 2008, Tata Motors unveiled its People's Car, the Tata Nano, which India

and the world have been looking forward to. The Tata Nano has been subsequently

launched, as planned, in India in March 2009. A development, which signifies a first for

the global automobile industry, the Nano brings the comfort and safety of a car within the

reach of thousands of families. The standard version has been priced at Rs.100,000

(excluding VAT and transportation cost).

1
 Designed with a family in mind, it has a roomy passenger compartment with generous

leg space and head room. It can comfortably seat four persons. Its mono-volume design

will set a new benchmark among small cars. Its safety performance exceeds regulatory

requirements in India. Its tailpipe emission performance too exceeds regulatory

requirements. In terms of overall pollutants, it has a lower pollution level than two-

wheelers being manufactured in India today. The lean design strategy has helped minimize

weight, which helps maximize performance per unit of energy consumed and delivers high

fuel efficiency. The high fuel efficiency also ensures that the car has low carbon dioxide

emissions, thereby providing the twin benefits of an affordable transportation solution with

a low carbon footprint.

In May 2009, Tata Motors introduced ushered in a new era in the Indian automobile

industry, in keeping with its pioneering tradition, by unveiling its new range of world

standard trucks. In their power, speed, carrying capacity, operating economy and trims,

they will introduce new benchmarks in India and match the best in the world in

performance at a lower life-cycle cost.

In June 2009, the exciting new range of premium luxury vehicles from Jaguar and

Land Rover were introduced for the Indian market. These include the Jaguar XF, XFR and

XKR and Land Rover Discovery 3, Range Rover Sport and Range Rover.

1
 The years to come will see the introduction of several other innovative vehicles, all

rooted in emerging customer needs. Besides product development, R&D is also focusing

on environment-friendly technologies in emissions and alternative fuels.

Through its subsidiaries, the company is engaged in engineering and automotive

solutions, construction equipment manufacturing, automotive vehicle components

manufacturing and supply chain activities, machine tools and factory automation solutions,

high-precision tooling and plastic and electronic components for automotive and computer

applications, and automotive retailing and service operations.

True to the tradition of the Tata Group, Tata Motors is committed in letter and spirit

to Corporate Social Responsibility. It is a signatory to the United Nations Global Compact,

and is engaged in community and social initiatives on labor and environment standards in

compliance with the principles of the Global Compact. In accordance with this, it plays an

active role in community development, serving rural communities adjacent to its

manufacturing locations. With the foundation of its rich heritage, Tata Motors today is

etching a refulgent future.

1
Present Time

In present times, Tata Motors continues to be a brand to reckon with. It's no mean task to be

the largest car manufacturing company in India.

In 2004, Tata Motors got itself listed on the NYSE.

In 2005, the company became one of the top 10 corporations in India.

In March 2008, Tata Motors acquired the British Jaguar Land Rover business from Ford

Motors.

Popular Tata Motors Brands

Some of the popular Tata Motors products have been listed below.

 Safari 2.2 vtt

 Tata Indigo eCS

 Tata Indigo Manza

 Tata Indica eV2

 Tata Indica Vista

 Tata Nano

 Tata Grande MK II

 Tata Motor's Nano Car

1
  Tata Aria

 Tata Venture

 Victa DI Turbo

Tata Motors is manufacturing a car, Nano that aims to be the world's most inexpensive

production car. The Nano car is priced around Rs. 1, 00,000. That has caused other

automobile companies like Bajaj Auto and Mahindra-Renault to announce plans to launch

cars within the same price range.

International operations

In recent years, Tata Motors has expanded globally and now has significant presence in

several, major countries of the world. Tata Motors carries out production and assembly

operations in the following countries.

 South Korea

 Thailand

 South Africa

 Argentina

1
 PLANTS OF TATA MOTORS

Tata Motors' plants are located at Jamshedpur (eastern India), Pune and

Sanand (west), and Lucknow and Pantnagar (north). Tata Motors and Fiat have set up a

common manufacturing facility at Ranjangaon, near Pune.

Tata Motors is India's largest automobile company, with consolidated revenues of Rs 92,519

crore ($20 billion) in 2009-10. Through subsidiaries and associate companies, Tata Motors

has operations in the UK, South Korea, Thailand and Spain. Among them is Jaguar Land

Rover, the business comprising the two iconic British brands. It also has an industrial joint

venture with Fiat in India.

Tata Motors is the country's market leader in commercial vehicles and among the top

three in passenger vehicles. It is also the world's fourth largest manufacturer of medium /

heavy commercial vehicles, and the second largest bus manufacturer. Tata cars, buses and

trucks are being marketed in several countries in Europe, Africa, the Middle East, South

Asia, South East Asia and South America.

The company, formerly known as Tata Engineering and Locomotive Company, began

manufacturing commercial vehicles in 1954 with a 15-year collaboration agreement with

Daimler Benz of Germany. It has, since, developed Tata Ace, India's first indigenous light

commercial vehicle, Tata Safari, India's first sports utility vehicle, Tata Indica, India's first

indigenously manufactured passenger car, and the Nano, the world's cheapest car.

1
 Tata Motors has over 1,400 engineers and scientists in six R&D centres in India,

South Korea, Spain and the UK.

Areas Of Business

Tata Motors makes passenger cars, multi-utility vehicles and light, medium and heavy

commercial vehicles.

 Passenger cars: The company launched the compact Tata Indica in 1998, the sedan

Indigo in 2002 and the station wagon Indigo Marina in 2004. Tata Motors also distributes

Fiat’s cars in India.

 Utility vehicles: The Tata Sumo was launched in 1994 and the Tata Safari in 1998.

 Commercial vehicles: The commercial vehicle range extends from the light two-ton

truck to heavy dumpers and multi-axled vehicles in the above 40-tonne segment.

 Passenger buses: The company also manufactures and sells passenger buses, 12-

seaters to 60-seaters, in the light, medium and heavy segments.

Joint ventures, subsidiaries, associates

Tata Motors has joint ventures with Marcopolo, the Brazil-based maker of bus and coach

bodies, and with Fiat Auto (to build a commercial vehicle at Fiat's facilities in Córdoba,

Argentina).

Other associates include:

1
 Tata Daewoo Commercial Vehicle Company, a 100-per cent subsidiary of Tata

Motors in the business of heavy commercial vehicles.

 Tata Motors European Technical Centre is a UK-based, 100-per cent subsidiary

engaged in design engineering and development of products.

 Telco Construction Equipment Company makes construction equipment and allied

services. Tata Motors has a 60 per cent holding; the rest is held by Hitachi Construction

Machinery Company, Japan.

 Tata Technologies provide specialised engineering and design services, product

lifecycle management and product-centric information technology services.

 Tata Motors (Thailand) is a joint venture between Tata Motors (70 per cent) and

Thonburi Automotive Assembly Plant Co (30 per cent) to manufacture and market the

company’s pickup vehicles in Thailand.

 Tata Cummins manufactures high horsepower engines used in the company’s range of

commercial vehicles.

 HV Transmissions and HV Axles are 100-per cent subsidiaries that make gearboxes

and axles for heavy and medium commercial vehicles.

 TAL Manufacturing Solutions is a 100-per cent subsidiary that provides factory

automation solutions and designs and manufactures a wide range of machine tools

 Hispano Carrocera is a Spanish bus manufacturing company in which Tata Motors

has a 21-per cent stake

 Concorde Motors is a 100 per cent subsidiary retailing Tata Motors’ range of

passenger vehicles

1
  Tata Motors Finance is a 100 per cent subsidiary in the business of financing

customers and channel partners of Tata Motors.

TATA Indica-Technical specifications

Tata Indica eV2 is the most fuel efficient hatchback from Tata Motors in India. It was

launched on March 10th 2011. In the name Tata Indica eV2 ‘e’ stands for economical. It

is an upgraded version of Tata Indica V2. As per as the official reports of ARIA

(Automotive Research Association of India), the new vehicle has capacity to generate 25

Kmpl. The price tag of this car stands at low compare to similar hatchbacks.

Tata Indica eV2 Engine –Recently launched Tata Indica eV2 is loaded with new CR4

Common Rail Diesel engine that has a displacement of 1396 cc delivering 70 PS at 4000

RPM. The new CR4 engine has got massive power; compare to earlier model it has 32

percent of more power, 65 percent of increasing torque and 46 percent of better fuel

efficiency. It is available in both petrol and diesel versions in domestic market. New Tata

Indica eV2, a 5-speed Manual Gear Transmission hatchback holds an autonomous

Wishbone, Semi-trailing Arm suspension in it.

1
Tata Indica

1
 Tata Indica ev2 Interiors – Tata Indica eV2 comes with extraordinary interior

features. The wide dashboard with quality AC vents provides you soothe even in the long

journeys. It is a five-seater where you need not to agonize about space. Head and leg

room is excellent compare to other similar models in India. The features like Single DIN

music system with USB and AUX port, wooden finish for the centre console,

Tachometer, New graphic decals on the front and rear door, power steering, armrests,

gear Knob, body colored mirrors, elegant Dashing board, and Air condition adds much

more comfort with good fuel efficiency. The seats inside the car look tiny yet it can give

enough room to feel comfy.  It has Shadow beige interiors which give airy and spacious

feel. All the passengers will get adequate space and head rests to feel free.

Tata Indica eV2 Exteriors – Tata

Indica exterior features. The broad 14

inch alloy wheels looks sporty; it has got a new tail and rear bumper which makes the car

even sportier. The aerodynamic design of the car allows air intake very freely. The

smartly designed grille looks great having Tata’s logo eV2 has awesome light cluster

right at the centre. It looks very similar to Tata Nano from the rear. The plastic wheel arcs

have been removed to give cleaner look.  

1
Tata Indica eV2 Safety Features – Tata Indica eV2 is loaded with advance safety features

like Seatbelts, ABS, child safety locks on rear doors, anti-submarine seats, collapsible

steering column, Clutch to start feature, headlamp leveler, provision for rear fog lamps

and side intrusion beam on all four doors. The electronic instrument cluster looks classy

with all new tachometer with two trip meters that are equipped with light intensity

controls etc make the car perfect.

Tata Indica eV2 Colors – Tata Indica eV2 is available in mind blowing colors like Mint

White, Apple Green, Arctic Silver and Neo Orange in India.

Tata Indica eV2 Models – Tata Indica eV2 is available in 4 models they are

 Tata Indica eV2 L

1
  Tata Indica eV2 LE

 Tata Indica eV2 LS

 Tata Indica eV2 LX

Tata Indica eV2 Mileage - Tata Indica eV2 is the most fuel efficient car in India, it gives

18 Kmpl in City and 25 Kmpl in Highways.  According to the official press release of the

Company, This mileage of 25 kmpl is hinged on three technological advancements.

1) SMART EMS (Engine Management System) CHIP that involves perfectly calibrating

every minute engine component to optimize functionality - Right from valve timing to

compression ratios to pressure volume ratios, it flawlessly synchronizes every engine

function to deliver this mileage.

2) MAXIMUM CHARGE COMBUSTION - An innovatively designed engine block and

piston assembly that ensures effective intake and circulation of charge (mixture of air and

fuel), thereby almost preventing friction between parts. The result is max combustion of

charge, increased efficiency and power.

3) DRAG REDUCTION - Redesigned wheel arches and subtle alterations on the exterior

combined with a lighter shell and engine have collectively contributed to making the car

more aerodynamic, reducing the drag coefficient.

1
Tata Indica eV2 Price – The diesel version of Tata Indica eV2 is in the range of Rs. 3.95

lakhs and Rs. 4.77 lakhs. Whereas the petrol version is price starts at Rs. 2.95 lakhs and

goes up to Rs. 3.58 lakhs in India.

Tata Indica eV2 Competitors - Tata Indica eV2 directly competes with the models like

ford figo, maruti wagonr, maruti swift, maruti santro and it also competes with the

upcoming models like maruti cervo, honda brio, and toyota etios liva in indian market.

Tata Indica eV2 Specifications – Tata Indica eV2 comes with a powerful CR4

Common Rail Diesel engine that has a displacement of 1396 cc delivering 70 PS at 4000

RPM. It has extraordinary safety features like anti-submarine seats, collapsible steering

column, Clutch to start feature, headlamp leveler, provision for rear fog lamps, Seatbelts,

ABS, child safety locks on rear doors, and side intrusion beam on all four doors etc. It is

capable to churn 25 Kmpl of mileage.

Tata Indica eV2 Maintenance Cost – Tata Indica eV2 maintenance cost is very low; you

will get 3 car services for free from Company. Tata has wide network around the country

so you need not to worry about the spare parts. You will get guanine accessories of this

1
 model around the country. You may need to spend less than 7 thousand for general

service like Oil change, Fuel Injector Cleaning, electrical work etc.

Tata Indica eV2 Ride and Handling – While driving Tata Indica eV2 you will feel like

touching the sky. The powerful engine generates excellent pulling power. Auto drive

assist feature guarantees that the engine does not booth even if the foot is completely

taken off the clutch pedal, allowing the driver to easily handle his foot to the accelerator

when driving on undulating roads.

Compare Tata Indica eV2 with other models

Tata Indica eV2 vs Toyota Etios Liva – The cost of both cars is very much similar. Toyota

Etios Liva looks better than Tata Indica eV2, when it comes to mileage Tata Indica eV2

will be the best. compare tata indica ev2 and toyota etios liva on the Technical basis,

features, Specifications, Price and Technical data. 

1
Tata Indica eV2 vs Ford Figo – Tata Indica eV2 is bit costlier than Ford Figo and it has

very good pulling power along with the excellent fuel efficiency. Ford Figo looks great

and it has won ‘Car of the year’ award. Compare Tata Indica eV2 and Ford Figo on the

Technical basis, features, Specifications, Price and Technical data.

Tata Indica eV2 vs Maruti Swift - Tata Indica eV2 churns better mileage than Maruti Swift

and cheaper than it. Whereas Maruti Swift has got huge response from the customers and

1
 has won many awards and it looks amazing. Compare Tata Indica eV2 and Maruti

Swift on the Technical basis, features, Specifications, Price and Technical data.

Tata Indica eV2 vs Maruti Ritz - Tata Indica eV2 is bit expensive than Maruti Ritz but it

generates better mileage. Whereas Maruti Ritz looks awesome, it provides good leg and

head space with advanced safety features. Compare Tata Indica eV2 and Maruti Ritz

on the Technical basis, features, Specifications, Price and Technical data. 

1
Tata Indica eV2 vs Maruti WagonR - Tata Indica eV2 is little costlier than Maruti WagonR

with good fuel efficiency. Tata Indica eV2 has better look sportier with its 14 inch Alloy

wheels whereas Maruti WagonR looks dump. Compare Tata Indica eV2 and Maruti

WagonR on the Technical basis, features, Specifications, Price and Technical data.

1
Tata Indica eV2 vs Honda Brio - Honda Brio will be costlier than Tata Indica eV2 but

looks impressive. The new Tata Indica eV2 has capacity to churn better mileage than

Honda Brio. Compare Tata Indica eV2 and Honda Brio on the Technical basis, features,

Specifications, Price and Technical data.

 The Tata advantage

 Easy maintenance

 Broader service center

 Enhanced service

 Smooth and comfortable operation

 Reliable and durable performance

 Powerful turbo engine

Showrooms and Workshops

Showrooms and Workshops are well equipped with latest technology and skilled

manpower, Customer satisfaction is the prime Moto of the Company and an efficient

team of highly experienced personnel do their best to understand the needs of a customer

1
 and then suggest the models best suited to his/her requirements. Special attention is given

to the models that are popular choices.

Organization has a QUALITY MANAGEMENT SYSTEM

“Customer satisfaction is the main Moto of the company which gives an edge in the

market and makes a brand image.”

Organizational structure

RAPL has got an edge with other competitors is just because of strong and efficient

team headed by C E O. Company has made several departments with department heads

for smooth functioning of business under a certain guidelines and certain set principles

for smooth flow of system .

Marketing Department:

The most important department is headed by the Sales Manager and local

administration is in the hand of General Manager. Whole sales team are guided and

motivated by the C E O of the Company who takes in principal decision of sales and

makes sales policy considering market situation and other factors which helps sales

manger to take decisions. Strong sales team with well coordination with the sales

executives, Car sales in the market is one step ahead than other competitors and

moreover customer satisfaction is also a key-note for market capture.

1
Delivery Department:

Delivery In charge of this department takes care of the delivery of four wheelers.

A delivery Executive is also appointed to perform the delivery ceremony and make all

efforts to make the delivery process quite social and memorable for the customer. Delivery

department has also got key role to play.

Customer Care Department:

Customer care Department is also important and sensitive department where customer

satisfaction is the prime Moto of the company. Company is very much sensitive towards

customer satisfaction. Customer care manager does timely PSF and keeps a track of all

the customers and passes on information about new advancements from time to time.

Customer care manager organizes regular customer meets and encourages more and

more customers’ participation for sharing their car buying experience, learn more about

safety tips and warranty clause etc.

Accessories Department:

There is an accessories incharge in Accessories Department. Accessories incharge

promote the accessories sale with special focus on MGA. Work of accessories Executive

is to maintain the stock of accessories purchased and keep a record of the parts that are

1
 old he potential while/after delivery in the car. To do the fitting work, there are fitters

under the Accessories Incharge.

Insurance Department:

Insurance department looks after the new insurance plans that provide benefits to the

customers. Insurance manager maintains record about new insurance schemes as well as

the old ones. Insurance executive, who works for the renewal of existing insurance plan,

assists him. This department also, has tele-callers to inform customers about the expiry

of the insurance of their four wheeler and also about the prevailing offers and schemes

for insurance renewal through insurance.

Finance and Accounts Department:

Accounts and finance department is the important department, headed by Accounts

Managers, controls all accounting, Tax and Banking matter of the Company. In this

department support staffs like Accounts assistant ,Computer operator, Cashier looks after

the day to day punching , Banking transactions and other financial transaction of the

Company. Accounts department is the controlling department for company’s income and

expenses.

Human Resource Department

Human Resource Department is headed by the Human Resource Manager (H R M). H

R Manager has a key role to play in the company which consists to Hire and retain

1
competent work force to achieve the goal of the Organization in an effective and efficient

manner. Human resource Manager‘s main duty is to look after the overall satisfaction of

the employees. The HR executive helps to develop the potential of employees fully and

motivate them to sharpen and improve their skills for better performance.

1
ORGANISATIONAL CHART

SRM MOTORS PVT LTD

Vikas Nagar Ring Road,

Lucknow

Designation

 Managing Director

 General Manager:

 Accounts Manager

 Sales Manager

 Human Resource Manager

 True Value Manager

 Insurance Manager

 Work Manager

 Accessories Manager

 Spare Parts Manager

1
Accounts Manager:

 Accounts assistants

 Computer Operators

Sales Manager:

 Team leaders:

 Dealer Sales Executives (DSE)

 Resident Dealer Sales executives (RDSE)

Human Resource Manager

 H R assistant

 True Value Manager

 True Value evaluators

 Customer Care executive.

Insurance Manager:

 Tele Callers

 Computer operators

 Insurance assistants.

1
  Works Manager :

Supervisors:

 Mechanics

 Electrician

 Asst. Mechanic

Accessories Manager:

 Accessories Assistant Staff.

 Spares Parts Manager:

 Assistant in spares parts.

1
1
 ORGANIZATIONAL STRUCTURE

Director/C.E.O

HR Department Accounts Department

Chief Of
Operations

Telecallers DSSM Receptionist Sales manager Sales Manager

or (Car) (UV)
Showroo

m Hostess

Asst. Sales
Manager
UP Country

Aria
CRO Delivery Officer

Safari

Grande
Nano Flat Indica Vista Indigo Manza

TL TL TL TL TL TL Venture

1
 Sales Sales Sales Sales Sales Sales
executive execu exec execu execu executive
utive tive tive
tive

1
 Service Hierarchy

Director/C.E.O

HR Department Chief of operations Accounts Depart ment

G.M Service

CRM WORKS MANAGER

Team Leader

Spare parts
Department

Job controller

Receptionist CRO Service Adviser Tele Caller

Technician

1
 KEY STAFF

Company Name: SRM Motors Pvt. Ltd.

Address: 11/CP-2 Ring Road, Vikas Nagar, Lucknow 226022

Email:srm@srm-motors.com

Type: Private

Founded : 4 july 2010-

Key People: Mr. Piyush Agarwal (Managing Director)

COO- Mr. Y.N Shukla

Managerial Hierarchy SRM Motors Pvt.Ltd

Managing Director - Mr. Piyush Agarwal

General Manager (COO) - Mr. Y.N Shukla

Human Resource Manager - Ms. Anupam tiwari

Sales Manager - Mr. Arindam Ghosh (UV)

Mr. Arya Vishwash Dwivedi (Car)

Dealership Sales Satisfaction Manager (D.S.S.M) - Ms. Swati Samrat

Workshop Manager - Mr. Pankaj Malviya

1
 Accounts Manager - Mr. Mukesh Sinha

WORKSHOP MANAGEMENT

Mr. Pankaj Malviya

Service Advisor/ Pre-delivery Accidental Unit Customer Back Office

Supervisor Inspection Manager

↓ ↓

Customer Care

Mecha Manager

nic

Mechanic

Jr.Mechanic

Electrician->

denter

painter

1
Duties and Responsibilities of the Staff

 To sale maximum vehicles.

 To maintain all the a/c with honesty.

 To create healthy environment in the organization.

 To co-operate with each other in the organization.

 To maintain good relation with the customers.

 To be in the office at right time.

 To provide all the facilities and services to the customers which are given by

Company to their customer?

 To complete the target of selling vehicles of dealers.

1
 OBJECTIVE OF THE STUDY

This project attempts to understand the objectives:-

 To understand in details how to establish pay rates to different level of employee.

 To understand the impact of compensation management on performance level.

 A comparative study of the compensation management strategies followed in

different TATA Motors.

SCOPE

The scope of this project is to study the compensation management strategies in TATA

MOTORS & to evaluate the behaviour & performance of employee on their work.

1
 RESEARCH METHODOLOGY

A Research Design is the framework or plan for a study which is used as a guide in collecting

and analyzing the data collected. It specifies the methods and procedures for acquiring the

information needed to conduct the research effectively.

TYPE OF DATA COLLECTED

There are two types of data used. They are primary and secondary data. Primary data is

defined as data that is collected from original sources for a specific purpose. Secondary

data is data collected from indirect sources.

PRIMARY SOURCES

Questionnaire consists of a set of questions presented to respondents. Because of its

flexibility, it is by far the most common instrument used to collect primary data.

SECONDARY SOURCES

These include books, the internet, the company website etc,

1
 LIMITATIONS OF THE STUDY

 There is Limited time available for interviewing the respondents. As a result of this it

was not possible to gather full information about the respondents.

 If the employees answer does not falls between amongst the options given then it

will turn up to be a biased answer.

Some employees do not tell their actual details. Everything has some pros and cons and so

certain limitations of this study that we could observe are as follows:

The data or result may be approximate as the conclusion is based on the survey method i.e.

primary & secondary source (filling of questionnaire from the employees) may be

hypothetical (imaginary) data.

 The organizations which have been studied and surveyed are not providing us with

full information which has hampered the result and conclusion.

 Exact data was not been provided.

1
DATA ANALYSIS AND ITS INTERPRETATION

1
QUESTIONNAIRE FILLED BY EMPLOYEES

1. When was your organization established?

2. What types of compensation are available?

Analysis and interpretation:

There are two type of compensation available and they are direct or indirect

compensation. Direct includes Base Pay, Commissions, Overtime Pay, Bonuses,

Travel/Meal/Housing Allowance and indirect compensation includes vacation, leaves,

retirement, taxes.

3. Who handle the compensation management department in your organization?

1
_______MANAGER__________________________________________

Analysis and interpretation:

The manager handles the compensation management department in their organization.

4. On what basis company provide compensation to their employees.

a) Base Pay b) Commissions

c) Travelling/meal/housing allowance d) Any other

Sales

0%
Base Pay
20%
0%
Commissions

80% Travelling/meal/housing
allowance

Any other

1
Analysis and interpretation:

This graph shows that company provide compensation to their employees on the basis of base

pay & Travelling/meal/housing allowance.80% of employee prefer

Travelling/meal/housing allowance & only 20% of employee prefer base pay.

5. What kind of compensation you prefer.

a) Monetary b) Rewarding

c) Motivation d) Holiday packages

1
Analysis and interpretation:

From the chart above we find that, 67% of employee prefers monetary benefits & only 33%

of employee are happy & satisfied with non monetary benefits like rewards. In this

company neither the employee are motivated nor are they satisfied with holiday package

as compensation.

6. Are you satisfied with the compensation you receive.

a) Yes b) No

1
Analysis and interpretation:

From the chart given above we can clearly see that 80% of employees are satisfied with the

compensation they receives & only 20% of employees are dissatisfied with the

compensation they receives.

1
7. Do you think that HINDUSTAN MOTORS is providing better compensation package to

the employees.

  a) Yes b) No

If “NO” then which organization do you think?

Analysis and interpretation:

Yes, Hindustan motors is providing better compensation package to the employees out of 10

employee 80% of employees are satisfied with the compensation they get and 20% of

employee are dissatisfied with the compensation provided by the company.

8. Is there different type of compensation for different type of services.

a) Yes b) No

1
 100% 0%

YES

NO

Analysis and interpretation:

Yes, there are different types of compensation for different type of services like direct and

indirect compensation provided to the employee of the organization for increasing their

motivation and retention of employees.

9. Is cash still king in employee compensation.

a) Yes b) No

1
Analysis and interpretation:

From the chart given above we can clearly see that the cash is still king there because

everyone is satisfied with the monetary motivation and not by non monetary

motivation. Here we can see that 90% of employees are satisfied with monetary value

rather than

10. Is Compensation based more on group performance and less on individual contribution.

1
 a) Yes b) No

Analysis and interpretation:

In this organization compensation is based more on individual contribution because every

employee is single entity there and they are judge on the basis of self performance.

1
11. Is there any procedure of receiving formal feedback by employees on Company policies,

compensation, benefits, and employee attitudes?

a) Yes b) No

Analysis and interpretation:

Yes, there are procedure of receiving formal feedback by employees on Company policies,

compensation, benefits, and employee attitudes. It helps in bringing out new ideas. It also

helps in improving employee and management relationship number of ideas helps in

choosing the better option from them which will be more effective and beneficial for the

organisation.

1
12. In your organization employees receive effective performance appraisal.

a) Yes b) No

Sales

YES NO

Analysis and interpretation:

Yes, in our organization employee receive effective performance appraisal because it give

pleasure to the employee by rewards and they also get motivated which leads to the

effective performance. It enhances effectiveness of employees and boosts the confidence

level of employees.

1
13. Are you getting training for improving the performance?

a) Yes b) No c) can’t say

Analysis and interpretation:

Yes, training helps in improving the performance of employee. It helps in developing skills &

motivation level of employees. It also provides practical knowledge. It is necessary for

the organization to provide training to their employees for better performance and update

employee time to time. It helps in increase in the performance & motivation level of

employee and also enhance the effectiveness of employees.

1
14. Are you free to give ideas to the higher management?

a) Yes b) No

Analysis and interpretation:

Yes, the employees are free to give ideas and suggestions to the higher management. By this

new and different ideas are bring out of the box and this help in taking better decision

which may be beneficial for the organization. It also boosts the confidence level of

employees and their ideas are entertained so they get motivated also.

1
FINDINGS

The compensation management policy is good in TATA Motors.

The employee of the organization is satisfactory to the employees.

The employees are motivated because of the environment of the organization.

The products of TATA Motors have good credibility in the region.

1
 CONCLUSION

TATA MOTORS is first automobile industry in India. It has businesses spread out across the

globe. The company faces a large amount of competition. The Compensation Committee

reviews the overall compensation structure and policies of the Automobile with a view to

attract, retain and motivate employees, consider grant of stock options to employees,

reviewing compensation levels of the company's employees.

The project was very satisfying experience for me, not only practically and academically. It

also helped me in enriched my knowledge also.

The automobile compensation policy is to provide a fair and consistent basis for motivating

and rewarding employees appropriately according to their job / role size, performance,

contribution, skill and competence.

1
 BIBLIOGRAPHY

BOOKS:

Personnel management “Dr. C.B. Mamoria”

Ex.professor and head of department.

WEBSITES:

www.tatamotors.com

www.google.com

www.wikipedia.com

1
 QUESTIONNAIRE

1. When was your organization established?

______________________________________________________________

2. What types of compensation are available?

3. Who handle the compensation management department in your organization?

________________________________________________________

4. On what basis company provide compensation to their employees?

a) Base Pay b) Commissions

c) Travel/Meal/Housing Allowance d)Any other

5. What kind of compensation you prefer?

a) Monetary b) Rewarding

c) Motivation d) Holiday packages

6. Are you satisfied with the compensation you receives?

a) Yes b) No

7. What do you think that HINDUSTAN MOTORS is providing better compensation

package to the employees?

  a) Yes b) No

If “NO” then which organization do you think.

8. .Is there different type of compensation for different type of services?

a) Yes b) No

1
9. Is cash still king in employee compensation?

a) Yes b) No

10. Is Compensation based more on group performance and less on individual contribution?

a) Yes b) No

11. Is there any procedure of receiving formal feedback by employees on Company policies,

compensation, benefits, employee attitudes?

a) Yes b) No

12. In your organization employee receive effective performance appraisal?

a) Yes b) No

13. Are you getting training for improving the performance?

a) Yes b) No c) can’t say

 14. Are you free to give ideas to the higher management?

a) Yes b) No