1

INTRODUCTION

Human Resource Management (HRM) is a relatively new approach to managing people in
any organization. People are considered the key resource in this approach. It is concerned with
the people dimension in management of an organization. Since an organization is a body of
people, their acquisition, development of skills, motivation for higher levels of attainments, as
well as ensuring maintenance of their level of commitment are all significant activities. These
activities fall in the domain of HRM.
Human Resource Management is a process, which consists of four main activities,
namely acquisition, development, motivation, as well as maintenance of human resources.
Scott, Clothier and Spriegel have defined Human Resource Management as that branch of
management which is responsible on a staff basis for concentrating on those aspects of
operations which are primarily concerned with the relationship of management to employees and
employers to employees and with the development of the individual and the group.
Human Resource Management is responsible for maintaining good human relations in the
organization. It is also concerned with development of individuals and achieving integration of
goals of the organization and those of the individuals.
Northcott considers human resource management as an extension of general
management, that of prompting and stimulating every employee to make his fullest contribution
to the purpose of a business. Human resource management is not something that could be
separated from the basic managerial function. It is a major component of the broader managerial
function.
Human resource management is the recruitment, selection, development, utilization,
compensation and motivation of human resources by the organization
---French Wendell
Human resource management is the planning, organizing, directing and controlling of the
procurement, development, resources to the end that individual and societal objectives are
accomplished
---Edwin B. Flippo


2

COMPENSATION
Compensation refers to all forms of financial returns, service and benefits that employees
receive as part of an employment relationship.
COMPENSATION MANAGEMENT
Compensation Management aims at designing a cost- effective pay structure that will attract,
motivate and retain competent employees
---D.Robbins
Reward management is about development, implementation, maintenance, communication and
evaluation of reward process
---M. Armstrong and Helen Murlis
Compensation is a broad term and may be interpreted according to organizational and
individual perspectives. Compensation is viewed as a segment of human capital management
that emphasizes planning, organizing, and controlling the various types of payment systems (e.g.
monetary versus nonmonetary rewards or direct versus indirect payments) for rewarding
employees who perform their work or service.
Compensation as reward entitlements and obligations are determined based on the
employment contract, the value of the job, the level of employee contributions, and/or the level
of performance.
Employee who perceived the procedure of distributing pay and the allocations of pay that
they receive fair, will be motivated to meet ultimate goals of the organizational pay system
efficiency (i.e. improving performance, quality, customers, and labor costs), equity (i.e. fair pay
treatment for employees through recognition of employee contributions and employee needs)
and compliance with laws and regulations. Thus, it may attract, retain and motivate competent
employees to support organizational and human resource management goals and Objectives.
Compensation strategy is to be implemented properly it may increase employees
appreciation of the pay systems and may lead to positive attitudinal and behavioral outcomes
particularly that of satisfaction, commitment and performance. The need to regularly carry out
3

detailed compensation reviews both within or without, and with full support and commitment
from the top is essential. Openness and transparency are important to the managers in the very
sensitive and personal issue of management remuneration. The remuneration and the system
have to be, and seen to be, fair and just, non bureaucratic and dynamic, and which dealt with
human feelings and necessary speed, still remain competitively attractive. An organization is
formed to accomplish a specific mission. To attract and retain employees the organization
provides rewards. Compensation is defined as pay, remuneration or reward management where
financial and non-financial payments are designed and administered by employers to reward
their employees.

TYPES OF COMPENSATION
Compensation provide to employees can direct in the form of monetary benefits and
indirect in the form of non-monetary benefits. Compensation does not include only salary but it
is the sum total of all rewards and allowances provided to the employees in return for their
services. The compensation types are as follows
Direct Compensation
Indirect Compensation
Direct Compensation
Direct Compensation refers to monetary benefits offered and provided to employees in the
organization. Those are basic salary, house rent allowance, medical reimbursement, bonus,
special allowance, travel allowance.

4

Indirect Compensation
It refers to non- monetary benefits offered and provided to employees in the organization.
Those are overtime policy, hospitalization, insurance, retirement benefits, travel vouchers.
Approaches of compensation management
There are 3P approach of developing a compensation policy centered on the
fundamentals of paying for Position, Person and Performance. Drawing from external market
information and internal policies, this program helps establish guidelines for an equitable grading
structure, determine capability requirements and creation of short and long-term incentive plans.
The 3P approach to compensation management supports a company's objectives,vision
and mission. It is highly proactive and fully integrated into a company's management practices
and business strategy. The 3P system ensures that human resources management plays a central
role in management decision making and the achievement of business goals.
* Paying for position
* Paying for person
* Paying for performance
Some of the wage policies are introduced by the government of India. Those are
Payment of wage act,1936
Industrial dispute act,1947
Minimum wage act,1948
Equal remuneration act,1976
Payment of bonus act,1965

5

Need of the Study:
Human resources are regarded as one of the most valuable assets in the organization. So
they need to be effectively and efficiently managed to have organizational effectiveness. Many
of the tools organization use to attract and to retain and motivate the employees is compensation
management. The study is taken up to know various compensation benefits provided to the
employees.

Objectives of the Study:
To know the process of compensation system in ICICI PRUDENTIAL.
To study the compensation methods followed by the company.
To assess the employee satisfaction towards benefits and allowances given by the
company.
To study different compensation pay packages in the company.
To study the effectiveness of compensation given to the employees working in the
organization.

Scope of the study:
The scope of the study is confined to the compensation management followed at ICICI
PRUDENTIAL and its analysis relates to that particular organization only. To observe the
compensation methods adopted by the company.

6

Research METHODOLOGY:
The data for the study was collected through primary and secondary sources.
Primary Data:
Primary data is that provide first hand information. It is collected through the
questionnaire.
Secondary data:
Secondary data collected through different journals and articles published by the
organization, company web sites and internal search engines.
SAMPLE DESIGN:
Simple random sampling method is used.
Sample size: 100

Limitations of the study:
The study is considered for a time period of 45 days.
As the employees are busy in their works, limited opinions are collected.
Errors may also cause due to the bias of the respondents. But efforts were made to
minimize such errors.



7

INDUSTRY PROFILE
INSURANCE IN INDIA:
The insurance sector in India has come with a full circle from being an open competitive
market to nationalization and back to a liberalized market again. Tracing the developments in the
Indian insurance sector reveals the 360 degree turn witnessed over a period of almost two
centuries.
A Brief history of the Insurance Sector
The business of life insurance in India in its existing form started in India in the year
1818 with the establishment of the Oriental Life Insurance Company in Calcutta. Some of the
important milestones in the life insurance business in India are:
1912: The Indian Life Assurance Companies Act enacted as the first statute to regulate the life
insurance business.
1928: The Indian Insurance Companies Act enacted to enable the government to collect
statistical information about both life and non-life insurance businesses.
1938: Earlier legislation consolidated and amended to by the Insurance Act with the objective of
protecting the interests of the insuring public.
1956: Central Government taken over and nationalized 245 Indian and foreign insurers. LIC
formed by an Act of Parliament, viz. LIC Act,1956, with a capital contribution of Rs. 5 core
from the Government of India.
The General insurance business in India, on the other hand, can trace its roots to the Triton
Insurance Company Ltd., the first general insurance company established in the year 1850 in
Calcutta by the British. Some of the important milestones in the general insurance business in
India are:
1957: General Insurance Council, a wing of the Insurance Association of India, frames a code of
conduct for ensuring fair conduct and sound business practices.
8

1968: The Insurance Act amended to regulate investments and set minimum solvency margins
and the Tariff Advisory Committee set up.
1972: The General Insurance Business (Nationalization) Act, 1972 nationalized the general
insurance business in India with effect from 1st January 1973. 107 insurers amalgamated and
grouped into four companies viz. the National Insurance Company Ltd., the New India
Assurance Company Ltd., the Oriental Insurance Company Ltd. and the United India Insurance
Company Ltd. GIC incorporated as a company.
Insurance sector reforms:
In 1993, Malhotra Committee, headed by former Finance Secretary and RBI Governor
R.N. Malhotra, was formed to evaluate the Indian insurance industry and recommend its future
direction.
The Malhotra committee was set up with the objective of complementing the reforms
initiated in the financial sector. The reforms were aimed at creating a more efficient and
competitive financial system suitable for the requirements of the economy keeping in mind the
structural changes currently underway and recognizing that insurance is an important part of the
overall financial system where it was necessary to address the need for similar reformsIn
1994, the committee submitted the report and some of the key recommendations included:
1) Structure:
Government stake in the insurance Companies to be brought down to 50% Government
should take over the holdings of GIC and its subsidiaries so that these subsidiaries can act as
independent corporations.
2) Competition:
Private Companies with a minimum paid up capital of Rs.1billion should be allowed to
enter the industry. No Company should deal in both Life and General Insurance through a single
Entity Foreign companies may be allowed to enter the industry in collaboration with the
domestic companies. Postal Life Insurance should be allowed to operate in the rural market.
Only one State Level Life Insurance Company should be allowed to operate in each state.
9

3) Regulatory Body:
The Insurance Act should be changed An Insurance Regulatory body should be set up
Controller of Insurance (Currently a part from the Finance Ministry) should be made
independent.
4) Investments:
Mandatory Investments of LIC (Life Insurance Of Corporation) Life Fund in government
securities to be reduced from 75% to 50%GIC (General Insurance of Corporation) and its
subsidiaries are not to hold more than 5% in any company (There current holdings to be brought
down to this level over a period of time).
5) Customer Service:
LIC should pay interest on delays in payments beyond 30 days. Insurance companies must be
encouraged to set up unit linked pension plans. Computerization of operations and updating of
technology to be carried out in the insurance industry
The committee emphasized that in order to improve the customer services and increase the
coverage of the insurance industry should be opened up to competition. But at the same time, the
committee felt the need to exercise caution as any failure on the part of new players could
decrease the public confidence in the industry. Hence, it was decided to allow competition in a
limited way by stipulating the minimum capital requirement of Rs.100 crores. The committee
felt the need to provide greater autonomy to insurance companies in order to improve their
performance and enable them to act as independent companies with economic motives. For this
purpose, it had proposed setting up an independent regulatory body.

10

Foreign Direct Investment (FDI) Policy in Insurance Sector:
As per the current (Mar 06) FDI norms, foreign participation in an Indian insurance
company is restricted to 26.0% of its equity / ordinary share capital. The Union Budget for fiscal
2005 had recommended that the ceiling on foreign holding be increased to 49.0%. All life
insurance companies have to comply with the strict regulations laid out by IRDA. Therefore
there is risk in going in for private insurance players. Even if Life Insurance Corporation of India
(LIC), the state owned the largest player in the market, the private companies are coming out
with better products which are more beneficial to the customer. Among such products are the
ULIPs or the Unit Linked Investment Plans which offer both life cover as well as scope for
savings or investment options as the customer desires. Further, these types of plans are subject to
a minimum lock-in period of three years to prevent misuse of the significant tax benefits offered
to such plans under the Income Tax Act. Hence, comparison of such products with mutual funds
would be erroneous.
Commission / Intermediation fees:
The maximum commission limits as per statutory provisions are:
Agency commission for retail life insurance business:
35 - 40% for 1st year premium if the premium paying term is more than 20 years
25 - 30% for 1st year premium if the premium paying term is more than 15 years
10 - 15% for 1st year premium if the premium paying term is less than 10 years
7.5% - yr 2 and 3rd year and 5% - thereafter for all premium paying terms.
Agency commission for retail pension policies:
7.5% for 1st year premium and 2.5% thereafter Maximum broker commission - 30%
Referral fees to banks Max 55% for regular premium and 10% for single premium. However in
any case this fee cannot be more than the agency commission as filed under the product.
However, the above commission may be further subject to the product wise limits specified by
IRDA while approving the product.
11


Insurance Regulatory and Development Authority

Reforms in the Insurance sector were initiated with the passage of the IRDA Bill in
Parliament in December 1999. The IRDA since its incorporation as a statutory body in April
2000 has fastidiously stuck to its schedule of framing regulations and registering the private
sector insurance companies. The other decisions taken simultaneously to provide the supporting
systems to the insurance sector and in particular the life insurance companies were the launch of
the IrDAs online service for issue and renewal of licenses to agents. The approval of institutions
for imparting training to agents has also ensured that the insurance companies would have a
trained workforce of insurance agents in place to sell their products, which are expected to be
introduced by early next year.
Since being set up as an independent statutory body the IRDA has put in a framework of
globally compatible regulations. In the private sector 19 life insurance and 6 general insurance
companies have been registered.
ICICI Prudential Asset Management Company Ltd. is a joint venture between ICICI
Bank, Indias second largest commercial bank & a well-known and trusted name in the financial
services in India, & Prudential Policy, one of the United Kingdoms largest players in the
financial services sectors.
In a span of just over 12 years, the company has forged a position of preeminence as one
of the largest Asset Management Companys in the country, contributing significantly towards
the growth of the Indian mutual fund industry. Our Average Assets under Management (AAUM)
as on Mar 2011 Month-end in Mutual Fund Schemes stood at Rs. 73551.95 Crores.

As an Asset Management Company, we have over 15 years of experience and are
currently managing a comprehensive range of schemes of more than 46 Mutual funds and a wide
range of PMS Products for our investors, spread across the country. We service this investor base
with our own branch network of over 160 branches and a distribution reach of over 42,000
channel partners.
12

COMPANY PROFILE

ICICI Bank

The World Bank, the Government of India and the Indian Industry, to promote industrial
development of India by providing project and corporate finance to Indian industry, established
ICICI LTD., in 1955.
ICICI Bank is India's second-largest bank with total assets of Rs. 3,634.00 billion (US$
81 billion) at 31st March, 2010 and profit after tax Rs. 40.25 billion (US$ 896 million) for the
year ended 31st March, 2010. The Bank has a network of 2016 branches and about 5219 ATMs
in India and presence in 18 countries. ICICI Bank offers a wide range of banking products and
financial services to corporate and retail customers through a variety of delivery channels and
through its specialized subsidiaries and affiliates in the areas of investment banking, life and
non-life insurance, venture capital and asset management. The Bank currently has subsidiaries in
the United Kingdom, Russia and Canada, branches in United States, Singapore, Bahrain, Hong
Kong, Sri Lanka, Qatar and Dubai International Finance Centre and representative offices in
United Arab Emirates, China, South Africa, Bangladesh, Thailand, Malaysia and Indonesia. Our
UK subsidiary has established branches in Belgium and Germany. ICICI Bank's equity shares
are listed in India on Bombay Stock Exchange and the National Stock Exchange of India Limited
and its American Depositary Receipts (ADRs) are listed on the New York Stock Exchange
(NYSE).

13

Prudential Policy (formerly known as Prudential Corporation policy)

Prudential policy is an international financial services group with significant operations in Asia,
the US and the UK. They serve approximately, 25 million customers and have 290 billion in
assets under management.
They are among the leading capitalized insurers in the world with an Insurance Groups Directive
(IGD) capital surplus estimated at 3.4 billion (as at 31 December 2009).

The Group is structured around four main business units:
Prudential Corporation Asia (PCA)
PCA is a leading life insurer in Asia with presence in 12 markets and a top three position
in seven key locations: Hong Kong, India, Indonesia, Malaysia, Philippines, Singapore, and
Vietnam. PCA provides a comprehensive range of savings, protection and investment products
that are specifically designed to meet the needs of customers in each of its local markets. PCAs
asset management business in Asia has retail operations in 10 markets and it independently
manages assets on behalf of a wide range of retail and institutional investors across the region.
Jackson National Life Insurance Company
Jackson is one of the largest life insurance companies in the US, providing retirement
savings and income solutions to more than 2.8 million customers. It is also one of the top five
providers of variable and fixed index annuities in the US. Founded nearly 50 years ago, Jackson
has a long and successful record of providing effective retirement solutions for their clients

14

Prudential UK & Europe
(PUE is a leading life and pensions provider to approximately 7 million customers in the
UK. It has a number of major competitive advantages including significant longevity experience,
multi-asset investment capabilities, a strong investment track record, a highly respected brand
and financial strength. PUE continues to focus on its core strengths including its annuities,
pensions and investment products where it can maximize the advantage it has in offering with-
profits and other multi-asset investment funds.

THE JOINT VENTURE

ICICI Prudential Life Insurance Company Limited was incorporated on July 20, 2000.
The authorized capital of the company is Rs.2300 Million. The paid up capital is Rs. 1900
Million. The Company is a joint venture of ICICI (74%) and prudential plc UK (26%).
History:
ICICI Bank was originally promoted in 1994 by ICICI Limited, an Indian financial
institution, and was its wholly owned subsidiary. ICICIs shareholding in ICICI Bank was
reduced to 46% through a public offering of shares in India in fiscal 1998, an equity offering in
the form of ADRs listed on the NYSE in fiscal 2000, ICICI Banks acquisition of Bank of
Madura Limited in an all stock amalgamation in fiscal 2001. And secondary market sale by
ICICI to institutional investors in fiscal 2001 and fiscal 2002. ICICI was formed in 1955 at the
initiative of the World Bank, the Government of India and representatives of Indian industry.
Our vision:
To make ICICI Prudential the dominant Life and Pensions player built on trust by world-class
people and service. This we hope to achieve by:
Understanding the needs of customers and offering them superior products and service.
Leveraging technology to service customers quickly, efficiently and conveniently.
Developing and implementing superior risk management and investment strategies to
offer sustainable and stable returns to our policyholders.
Providing an enabling environment to foster growth and learning for our employees .
15


MISSION:
Understanding the needs of customers and offering them superior products and service.
Building long lasting relationships with their partners.
Providing an enabling environment to foster growth and learning for their employees
Objective:
The principal objective was to create a development financial institution for providing
medium-term and ling term project financing to Indian businesses. In the 1990s, ICICI
transformed its business from a development financial institution offering only project finance to
a diversified financial services group offering a wide variety of products and services, both
directly and through a number of subsidiaries and affiliates like ICICI Bank.
In the 1990s, ICICI transformed its business from a development financial institution
offering only project finance to a diversified financial services group offering a wide variety of
products and services, both directly and through a number of subsidiaries and affiliates like
ICICI Bank. In 1999, ICICI become the first Indian company and the first bank or financial
institution from non Japan Asia to be listed o the NYSE.
Structure:
After consideration of various corporate structuring alternatives in the context go the
emerging competitive scenario in the Indian banking industry, and the move towards universal
banking, the managements of ICICI and ICICI formed the view that the merger of ICICI Bank
would be the optimal strategic alternative for the both entities, and would create the optimal legal
structure for the ICICI Groups universal banking strategy. The merger would enhance value for
ICICI shareholders through the merged entity access to low-cost deposits, greater opportunities
for earning fee-based income and the ability to participate in the payments systems and provide
transaction banking service. The merger would enhance value for ICICI Bank shareholders
through a large capital base and scale of operations , scam less access to ICICI s strong
corporate relationship built up over five decades, entry into view business segments, higher
market share in various business segments, particularly fee-based service, and access to the vast
talent pool of ICICI and its subsidiaries.
16

Awards and Recognition:
ICICI Prudential AMC has constantly been on the forefront of innovation and has introduced
products aligned to meet customer needs leading to a well-diversified product portfolio. As
acknowledgment of our efforts, we have received valued recognition from various organizations
of international repute. Some of the prominent awards and recognition are:
Bloomberg UTV Financial Leadership Awards 2011:
ICICI Prudential AMC received the coveted UTV Bloomberg Financial Leadership
Award 2011 for Best Contribution in Investor Education & Category Enhancement of
the Year in the mutual fund category. Mr. Nimesh Shah, Managing Director, ICICI
Prudential AMC received this prestigious accolade from Honorable Ex. Finance Minister,
Sri Pranab Mukherjee.
Morning Star Mutual Fund Awards 2011:
India Debt Fund House Award 2011
Business World Mutual Fund Awards 2010:
ICICI Prudential Discovery Fund adjudged Emerging Leader (Based on past 3-year SIP
performance)
ICICI Prudential Discovery Fund - Insti.1 adjudged Best Equity Fund Mid and Small
Cap for the year 2010
Mr Sankaran Naren adjudged Smartest Fund Manager (ICICI Prudential Discovery Fund)
for the year 2010
Mr Sankaran Naren adjudged Best Equity Fund Manager (ICICI Prudential Discovery
Fund ) for the year 2010
NDTV Profit Mutual Fund Awards 2010:
ICICI Prudential Discovery Fund - Category Emerging Leader (Based on past 3-year
SIP performance)
Lipper Fund Awards 2010 India:
ICICI Prudential Dynamic Plan-Growth - Best Fund over 3 Years (Mixed Asset INR
flexible)
17

Management
Mr.Nimesh Shah- Managing Director & Chief Executive Officer


Nimesh Shah joined ICICI Prudential AMC as its Managing Director in July 2007.
Nimesh has completed his Chartered Accountancy. Prior to joining ICICI Prudential AMC,
Nimesh was Senior General Manager at ICICI Bank and has over 18 years experience in banking
and financial services. At ICICI Group, he has handled many responsibilities including project
finance, corporate banking and international banking.
He was associated with one of the first batches of senior managers selected to lead the foray of
ICICI Bank into the international arena. He led ICICI Banks foray into the Middle-Eastern
region and Africa.
Mr. B Ramakrishna - Executive Vice President
Mr. Raghav Iyengar - National Head Sales and distribution
Mr. Kalyan Prasath - Head - Information Technology
Mr. Hemant Agarwal - Head - Operations
Mr. Ashish Kakkar - Head - Human Resources
Mr. Aashish Somaiyaa - Head Retail Business
18

Fund Management
Mr. S. Naren - Chief Investment Officer - Equity
Mr. Chaitanya Pande - Head Fixed Income
Board of Directors: Asset Management Company
Ms. Chanda Kochhar - Chairperson
Mr. Barry Stowe
Mr. Suresh Kumar
Mr. Vijay Thacker
Mr. Dileep C. Choksi
Mr. N.S. Kannan
Mr. Nimesh Shah
Mr. C. R. Muralidharan
Directors of the Trustee Company
Mr. M. S. Parthasarthy
Mr. M. N. Gopinath
Mr. Keki Bomi Dadiseth
Mr. Vinod Dhall
The International Advisory Business Division of ICICI Prudential Asset Management
Company Ltd. advises offshore funds in jurisdictions spanning Japan, Middle East, Taiwan &
Singapore.
As on 30th June, 2010, we are advising a cumulative asset size of close to $2 Billion spanning
Equity, Debt & Real Estate. Through the onshore presence and legacy of our parent company in
India, we present the following benefits to offshore investors:
19

Excellent Onshore Investment Insights and Information.
Extensive on the ground research capabilities.
Deep knowledge of the reputation, vision and execution capabilities of promoter-run
companies.
An innate understanding of governance structures of corporate entities.
As one of the largest Asset Management Companies in India, we have had a successful
track record in serving domestic clients across the Institutional and Retail Investor space. We are
very confident in our ability to enable International Investors to participate in the long-standing
India growth story and generate alpha over a medium to long term horizon.
Their presence all over India is with 2100 branches including 1,116 micro-offices, over
290,000 advisors and 18 banc assurance partners. They were also the first life insurance
company to receive the National Insurer Financial Strength rating from Fitch ratings. It does not
stop here they were also rated thrice in a row by The Economic Times AC Nielson ORG
survey of Most Trusted Brand' as the Most Trusted Private Life Insurer.

ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank, one of
the foremost financial services companies of India and Prudential policy, one of the leading
international financial services group headquartered in the United Kingdom. ICICI Prudential
was amongst the first private sector life insurance companies to begin operations in December
2000 after receiving approval from Insurance Regulatory Development Authority (IRDA).
ICICI Prudential Life's capital stands at Rs. 4,780 crores (as of September 30, 2010) with
ICICI Bank and Prudential policy holding 74% and 26% stake respectively. For the period April
1, 2010 to September 30, 2010, the company garnered Rs 7,267 crores of total premiums and has
underwritten over 10 million policies since inception. The company has a network of over 1,500
offices and over 1, 60,000 advisors, as on September 30, 2010. The company has assets held
over Rs. 65,000 crores as on September 30, 2010.
For the past nine years, ICICI Prudential Life has maintained a wide range of Life
Insurance products that meet the needs of the Indian customer at every step in life.
ICICI Prudential Life recently completed 10 years on the Indian Insurance scope on 12th
December 2010.
20

ICICI Bank is Indias second largest bank with total assets of about ram esRs.1, 676.59
billion (US$ 38.5 billion) at March 31, 2005 and profit after tax of Rs. 20.05 billion (US$ 461
million) for the year ended March 31, 2005 (Rs. 16.37 billion (US $376 million)in fiscal 2004).
ICICI Bank has a network of about 573 branches and extension counters and over 2,000
ATMs. ICICI Bank offers a wide range of banking products and financial services to corporate
and retail customers through a variety of delivery channels and through its specialized
subsidiaries and affiliates in the asset management.
ICICI bank set up its international banking group in fiscal 2002 to cater to the cross border
needs of clients and leverage on its domestic banking strengths to offer products internationally.
ICICI bank currently has subsidiaries in the United Kingdom, Canada and Russia, branches in
Singapore and Bahrain and representative offices in the United States, China, United Arab
Emirates, Bangladesh and South Africa.
ICICI Banks equity shares are listed in India on the Bombay Stock Exchange and the
National Stock Exchange of India Limited and it American Depositary Receipts (ADRs) are
listed on the New York Stock Exchange (NYSE).
ICICI Bank at the present scenario:
India has never had it good before booming economy reflects in the rise of SENSEX past the
10,000 mark, projections of an 8-plus percent GDP growth, the revival of manufacturing and
rising foreign investments have delivered growth in the banking sector.
During the recent survey conducted by the KPMG with respect to the Indias top banks, ICICI
bank holds its slot in the list of top banks.






21

growth
22

introduction

COMPENSATION
Compensation refers to all forms of financial returns, service and benefits that employees receive
as part of an employment relationship.
COMPENSATION MANAGEMENT
Compensation Management aims at designing a cost- effective pay structure that will attract,
motivate and retain competent employees
---D.Robbins
Reward management is about development, implementation, maintenance,
communication and evaluation of reward process
---M. Armstrong and Helen Murlis

Human Resource is the most vital resource for any organization. It is responsible for each
and every decision taken, each and every work done and each and every result. Employees
should be managed properly and motivated by providing best remuneration and compensation as
per the industry standards. The lucrative compensation will also serve the need for attracting and
retaining the best employees. Compensation is the remuneration received by an employee in
return for his/her contribution to the organization. It is an organized practice that involves
balancing the work-employee relation by providing monetary and non-monetary benefits to
employees.
Compensation and Reward system plays vital role in a business organization. Since, among
four Ms, i.e. Men, Material, Machine and Money, Men has been most important factor, it is
impossible to imagine a business process without Men. Every factor contributes to the process of
production/business. It expects return from the business process such as rent is the return
23

expected by the landlord, capitalist expects interest and organizer i.e. entrepreneur expects
profits. Similarly the labour expects wages from the process.
Labour plays vital role in bringing about the process of production/business in motion.
The other factors being human, has expectations, emotions, ambitions and egos.
Labour therefore expects to have fair share in the business/production process. Therefore a fair
compensation system is a must for every business organization. The fair compensation system
will help in the following
An ideal compensation system will have positive impact on the efficiency and results
produced by employees. It will encourage the employees to perform better and achieve the
standards fixed. It will enhance the process of job evaluation. It will also help in setting up an
ideal job evaluation and the set standards would be more realistic and achievable. Such a system
should be well defined and uniform. It will be apply to all the levels of the organization as a
general system. The system should be simple and flexible so that every employee would be able
to compute his own compensation receivable. It should be easy to implement, should not result
in exploitation of workers.
It will raise the morale, efficiency and cooperation among the workers. It, being just and
fair would provide satisfaction to the workers. Such system should also solve disputes between
the employee union and management. The system should follow the management principle of
equal pay. It should motivate and encouragement those who perform better and should provide
opportunities for those who wish to excel. Sound Compensation/Reward System brings peace in
the relationship of employer and employees. It aims at creating a healthy competition among
them and encourages employees to work hard and efficiently. The system provides growth and
advancement opportunities to the deserving employees.
The perfect compensation system provides platform for happy and satisfied workforce.
This minimizes the labour turnover. The organization is able to retain the best talent by providing
them adequate compensation thereby stopping them from switching over to another job. The
business organization can think of expansion and growth if it has the support of skillful, talented
and happy workforce.

24

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

Objectives of compensation management:
To know more about the market rate i.e. compensation offered by the competitors
To design a fair compensation system
To design and implement most competitive reward strategies
To benchmark the compensation strategies

Todays compensation systems have come from a long way. With the changing
organizational structures workers need and compensation systems have also been changing.
From the bureaucratic organizations to the participative organizations, employees have started
asking for their rights and appropriate compensations. The higher education standards and higher
skills required for the jobs have made the organizations provide competitive compensations to
their employees.
Traditional Compensation Systems
In the traditional organizational structures, employees were expected to work hard and
obey the bosses orders. In return they were provided with job security, salary increments and
promotions annually. The salary was determined on the basis of the job work and the years of
experience the employee is holding. Some of the organizations provided for retirement benefits
such as, pension plans, for the employees. It was assumed that humans work for money, there
was no space for other psychological and social needs of workers.

25

Change in Compensation Systems
With the behavioral science theories and evolution of labour and trade unions, employees
started asking for their rights. Maslow brought in the need hierarchy for the rights of the
employees. He stated that employees do not work only for money but there are other needs too
which they want to satisfy from their job, i.e. social needs, psychological needs, safety needs,
self-actualization.

Approaches of compensation management
There are 3P approach of developing a compensation policy centered on the fundamentals of
paying for Position, Person and Performance. Drawing from external market information and
internal policies, this program helps establish guidelines for an equitable grading structure,
determine capability requirements and creation of short and long-term incentive plans.
The 3P approach to compensation management supports a company's strategy, mission and
objectives. It is highly proactive and fully integrated into a company's management practices and
business strategy. The 3P system ensures that human resources management plays a central role
in management decision making and the achievement of business goals.
Paying for position
Paying for person
Paying for performance
Because it is so important to employees, the issue of pay deserves to be clearly addressed. In
spite of their hesitance, managers are capable of dealing with this sometimes difficult issue in a
professional and effective manner. By keeping the following basic points about pay in mind, they
can address virtually any pay-related topic with their employees in a professional and productive
manner.

26

Components of compensation
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:


Compensation system

Compensation provided to employees can be direct in the form of monetary benefits
and/or indirect in the form of non-monetary benefits known as perks, time off, etc.
Compensation does not include only salary but it is the sum total of all rewards and allowances
provided to the employees in return for their services. If the compensation offered is effectively
managed, it contributes to high organizational productivity.
Job analysis
Job analysis is a systematic approach to defining the job role, description, requirements,
responsibilities, evaluation, etc. It helps in finding out required level of education, skills,
knowledge, training, etc for the job position. It also depicts the job worth i.e. measurable
effectiveness of the job and contribution of job to the organization. Thus, it effectively
contributes to setting up the compensation package for the job position.
27


Importance of Job Analysis
Job analysis helps in analyzing the resources and establishing the strategies to accomplish
the business goals and strategic objectives. It forms the basis for demand-supply analysis,
recruitments, compensation management, and training need assessment and performance
appraisal.

Components Job Analysis
Job analysis is a systematic procedure to analyze the requirements for the job role and job
profile. Job analysis can be further categorized into following sub components.


Components of job analysis
Job Position
Job position refers to the designation of the job and employee in the organization. Job
position forms an important part of the compensation strategy as it determines the level of the job
in the organization. For example management level employees receive greater pay scale than
non-managerial employees. The non-monetary benefits offered to two different levels in the
organization also vary.
28

Job Description
Job description refers the requirements an organization looks for a particular job position.
It states the key skill requirements, the level of experience needed, level of education required,
etc. It also describes the roles and responsibilities attached with the job position. The roles and
responsibilities are key determinant factor in estimating the level of experience, education, skill,
etc required for the job. It also helps in benchmarking the performance standards.

Job worth
Job Worth refers to estimating the job worthiness i.e. how much the job contributes to the
organization. It is also known as job evaluation. Job description is used to analyze the job
worthiness. It is also known as job evaluation. Roles and responsibilities helps in determining the
outcome from the job profile. Once it is determined that how much the job is worth, it becomes
easy to define the compensation strategy for the position. Therefore, job analysis forms an
integral part in the formulation of compensation strategy of an organization. Organizations
should conduct the job analysis in a systematic at regular intervals. Job analysis can be used for
setting up the compensation packages, for reviewing employees performance with the standard
level of performance, determining the training needs for employees who are lacking certain
skills.
Pay structures
Once job analysis has been done organizations need to decide upon the pay structures. Pay
structure refers to the process of setting up the pay for a job in an organization. The process deals
with internal and external analysis to estimate the compensation package for a job profile.
Internal equity, External equity and Individual equity are the most popular pay structures. Job
description provides the in depth knowledge about the job profile and its worth.
Pay structures are the strong determinant of employees value in the organization. It helps in
analyzing the employees role and status in the organization. It provides for fair treatment to all
employees. Pay structures also include the estimation of incentives.
The level of incentives also depends on the level of job position in the organizational hierarchy.
29

Internal equity
The internal equity method undertakes the job position in the organizational hierarchy. The
process aims at balancing the compensation provided to a job profile in comparison to the
compensation provided to its senior and junior level in the hierarchy. The fairness is ensured
using job ranking, job classification, level of management, level of status and factor comparison.
Organizations have to bridge the gap between the industry standards and their salary packages.
They cannot provide compensation packages that are either less than the industry standards
or are very higher than the market rates. For the purpose they undertake the salary survey. The
Salary survey is the research done to analyze the industry standards to set up the compensation
strategy for the organization. Organizations can either conduct the survey themselves or they can
purchase the survey reports from a reputed research organization. These reports constitute the
last 2-5 years or more compensation figures for the various positions held by the organizations.
The analysis is done on the basis of certain factors defined in the objectives of the research.
Eternal equity
Here the market pricing analysis is done. Organizations formulate their compensation
strategies by assessing the competitors or industry standards. Organizations set the
compensation packages of their employees aligned with the prevailing compensation packages in
the market. This entails for fair treatment to the employees. At times organizations offer higher
compensation packages to attract and retain the best talent in their organizations.
Salary survey
Organizations have to bridge the gap between the industry standards and their salary
packages. They cannot provide compensation packages that are either less than the industry
standards or are very higher than the market rates. For the purpose they undertake the salary
survey. The Salary survey is the research done to analyze the industry standards to set up the
compensation strategy for the organization. Organizations can either conduct the survey
themselves or they can purchase the survey reports from a reputed research organization. These
reports constitute the last 2-5 years or more compensation figures for the various positions held
by the organizations. The analysis is done on the basis of certain factors defined in the objectives
of the research.
30

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

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

House Rent Allowance
Organizations either provide accommodations to its employees who are from different state
or country or they provide house rent allowances to its employees. 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.
31





Direct compensation
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 months salary of the employee.
32



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

Indirect Compensation
Indirect compensation refers to non-monetary benefits offered and provided to employees in
lieu of the services provided by them to the organization. They include Leave Policy, Overtime
Policy, Car policy, Hospitalization, Insurance, Leave travel Assistance Limits, Retirement
Benefits, Holiday Homes
Leave Policy
It is the right of employee to get adequate number of leave while working with the
organization. The organizations provide for paid leaves such as, casual leaves, medical leaves
(sick leave), and maternity leaves, statutory pay, etc.
Overtime Policy
Employees should be provided with the adequate allowances and facilities during their overtime,
if they happened to do so, such as transport facilities, overtime pay,etc.
Hospitalization
The employees should be provided allowances to get their regular check-ups, say at an interval
of one year. Even their dependents should be eligible for the medi-claims that provide them
emotional and social security.


33



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

Leave Travel
The employees are provided with leaves and travel allowances to go for holiday with their
families. Some organizations arrange for a tour for the employees of the organization. This is
usually done to make the employees stress free.
Retirement Benefits
Organizations provide for pension plans and other benefits for their employees which benefits
them after they retire from the organization at the prescribed age.
Holiday Homes: Organizations provide for holiday homes and guest house for their
employees at different locations. These holiday homes are usually located in hill station and
other most wanted holiday spots. The organizations make sure that the employees do not face
any kind of difficulties during their stay in the guest house.
34

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


Compensation package



Their performance was being measured and appraised based on the organizational and
individual performance. Competition among employees existed. Employees were expected to
work hard to have the job security. The compensation system was designed on the basis of job
work and related proficiency of the employee.
.







35


Todays Modern Compensation System
Today the compensation systems are designed aligned to the business goals and strategies. The
employees are expected to work and take their own decisions. Authority is being delegated.
Employees feel secured and valued in the organization. Organizations offer monetary and non-
monetary benefits to attract and retain the best talents in the competitive environment. Some of
the benefits are special allowances like mobile, companys vehicle; House rent allowances;
statutory leaves, etc.
Legal frame work for payment of salary in India
The Employee State Insurance Act, 1948:
The employee state Insurance act is a very important social security measure, which came
into force form 1948. This act promotes general welfare to the worker.
Payment of wages Act, 1948
The Minimum Wages Act, 1948 is an important Act under Industrial Law
Constitutional validity of the Act: The Act was enacted so as to provide 'social justice'
and 'living wages' as pointed out in Article 43 of the Constitution (Directive Principles of
State Policy)
Living Wages and fair wages are possible after getting awareness and collective
bargaining by trade unionism.
Preamble says: To provide for fixing minimum rates of wages in certain employments.
Minimum Wages Act, 1948 is Act XI of 1948. It has 31 Sections and 1 Schedule. The
Sections are not arranged in Chapters.
The Minimum Wages (Central) Rules, 1950 and Minimum Wages (Central Advisory Board)
Rules, 1949 are enacted by following the Act. Individual states brought their own rules, such as
the Andhra Pradesh Minimum Wages Rules, 1960.
36

The payment of bonuses Act, 1965
Up to the year 2005-2006 the corporation was paying ex-gratia to its employees following
the principles laid on in bonus act. The government of AP has rejected the request of ICICI
PRUDENTIAL to pay ex-gratia from the year 2006-2007 onwards as the corporation was
incurring losses.
Payment of Gratuity Act, 1972:
The objective of the act is to provide gratuities to the workers, who dont do not have any
managerial or administrative capacity are employed under the government and do not draw
wages exceeding Rs. 100/ per month

37

Benefits of this act are as follows:
Gratuity is payable to the retired persons death, their disablement or termination of their
job, after five years of continuous service.
Gratuity is payable at the rest of 15 days wages for every completed year of service or
part thereof, subject to a maximum of 20 months wages or Rs 2,50,000/ whichever is
lower.
Equal remuneration Act, 1976
Equal Remuneration Act, 1976 is an Indian Industrial Law brought into force to provide
for the payment of equal remuneration to men and women workers and for prevention of
discrimination, on the ground of sex, against women in the matter of employment and for matters
connected therewith, or incidental to.
Its main objective is
To provide medical facilities to the workers and their families who are exposed to the
risk of sickness, employment injury, occupation diseases and maternity
To provide unemployment insurance to industrial workers during illness
To provide social insurance form workers
Benefits that employees get from this act are:
Sickness benefits
Maternity benefits
Disablement benefits
Dependent benefits
Medical benefits
Funeral benefits
The corporation has to obtain exemption from the provisions of the act as it has a well
establishment of 100 bedded hospital at Hyderabad and 36 dispensaries at district head quarters
and other places, and is providing better medical facilities to its employees
38

Employee pension scheme 1995:
This scheme was notified by the government of India under the employees provident fund
and family pension act. 8.33% of the employees basic pay is contributed to the pension fund.
There are two types of option in the scheme.
Higher pension scheme:
The actual basic pay of the employee is considered and 8.33% of it is diverted to the
pension fund. Thus the outcome is that he gets a higher pension and lower PF.
Lower pension scheme:
Here, the basic pay of the employee is considered as Rs 6500 regardless his actual basic
pay. Hence he gets a lower pension and higher PF.
AP factories, establishments (National, Festival & Other Holidays) Act 1975:
The act provides for allowing 8 national and festival holidays in a calendar year to the
employees the national holidays are Republic day (26
th
January), May day(1
st
May)
Independence day (15
th
August)) Gandhi Jayanthi (2
nd
October) and 4 festival holidays.

Depot Incentive Scheme:
Depot is a basic unit of operation of buses services, where majority of employees are
deployed. Hence, major focus is to be made for improvement of productivity at depots. At
Present Corporation is operating services through its 209 depots.
A comprehensive depot incentive scheme was designed and implemented at all depots of the
corporation in the year 1980.

Incentives Scheme for Drivers Operating Services with Ticket Issuing Machines (Tims)
Ticket issuing machines have been introduced to be operated by Drivers on long distances
services. This has resulted in savings of conductor posts in these services. To motivate the
drivers for operating ticket issuing machines. A separate incentive scheme has been designed and
39

implemented, with effect from May 2000. Revisions were made from time to time depending
upon the changes in the operating environment.

Incentive Schemes at Production Units
The corporation is meeting the needs of the depots & other unit for overhauled aggregates,
tires, new fabricated vehicles, tickets and other stationery through 16 production units viz., 7
Workshops and 7 Tire shops, 1 Bus Body Building Unit & Printing Press. In order to motivate
the workmen and achieve higher performance levels, the production incentive section designs
and monitors the incentive schemes in all the production units of the corporation.

Provident Fund
. The Employees provident Fund & Misc. Provision Act 1952 is a beneficial piece of
legislation and amply be described as a Social Statute, with an objective to ensure better future of
the employee concerned on his retirement and benefit of the dependents in case of his premature
death. The amount is payable in are lump sum and as a matter of fact it acts as a buffer on the
retirement or on the death of an employee.


Employees Pension Scheme (EPS 1995):
This scheme has come into force 16-11-1995. All members of FPS 1971 have become members
of EPS 1995. 8.33% of employers contribution of every employee will be remitted to EPS 1995
towards employees share of contribution. The employee will get pension after superannuation,
death etc., this scheme provides comprehensive social securitys not only to employees but also
to its spouse, children, orphans and nominees.
EDLIF
This scheme came into force with effect from 01-10-1975 with the purpose providing life
insurance benefit to the employees died while in service and exemption to operate this scheme
40

with effect from 01-01-1995. There will not be any contribution from the employee for this fund.
ICICI PRUDENTIAL will contribute 0.05 % of (pay + DA to this scheme)
.
Medical Facilities
Free Medicare is provided to the employees, spouse/children and dependent parents of
employees.
Health Profile:
A massive health check-up program of all employees of the Corporation was conducted and
Electronic Health Card of all employees of the corporation and Electronic Health Data Bank
work is under process.
Benefits under Voluntary/Medical Retirement
Employees after putting a minimum of 20 years of service are eligible for Voluntary Retirement.
Employees who are declared medically unfit will be retired on medical grounds.
In case of voluntary/medical retirement, employees are eligible for the following benefits in
addition to normal retirement benefits
Payment of additional gratuity for a maximum period of 5 years notional service based on
the last pay drawn reminder period of service whichever is less.
Payment of Employers contribution of Provident Fund for a maximum period of 5 years
Notional service or reminder period of services whichever is less.
Payment of 15 days wages (Pay +DA) for every year of left over service if the left over
service (i.e. till the date of superannuation) is less than 5 years.
Payment of 20 days wages (Pay +DA) for every year of left over service, if the left over
service is above 5 years but below 10 years.
Payment of 25 days wages (Pay +DA) for every year of left over service. If the left over
service is above 10 years limited to a maximum period of 10 years.
Staff Benefit Fund
41

As per the strength of the employees as on 31
st
March of the year, Benefit Fund @ Rs.5.00
per employee will be allocated as budget for Staff Benefit Fund and Rs.7.50 per employee will
be allocated to ARTSCO towards Sports and Cultural activities. Out of the budget allotment
from SBF the following expenditure will be incurred from S.B.F Educational Assistance (i.e. for
purchase of Books) The eligibility criteria for sanction of educational assistance for purchase of
book to the employees children is that the basic pay of the employee should not exceed Rs.
10650/-

Staff Benevolent-cum-Thrift Fund (SBT)
Under this scheme, member employee has to contribute an amount of Rs.60/- per month.
In case of death of employee member the family member will be paid an amount of
Rs.1.00 Lakh as death Ex-gratia along with subscription paid by the employee together
with interest @8%.
In case of normal retirement, the amount recovered from employee will be
refunded along with an interest of 8% per annum. In addition to this, Retirement Ex.
gratiaof Rs.420/- for each year of SBT contribution period is paid.

Staff Retirement Benefit Scheme
Contribution of member employee is Rs.250/- per month. The Management Contribution to
SRBS has been revised from Rs.3.00 Crores per year to Rs.6.00 Crores per year w.e.f.
01.04.2009.
Retirement Benefit is revised from the existing range of Rs.560/- to Rs.2420/-(maximum)
01.06.2011 given ranging from Rs.720/- to Rs.3200/- per month depending upon the membership
period.
Facilities provided to the ICICI PRUDENTIAL Retired Offices/Employees
ICICI PRUDENTIAL Retired Employees Medical Facilities Scheme 2003, has been
introduced in the Corporation in the year 2005. All the retired Officers/Employees are eligible to
42

become members of the Scheme by paying the requisite membership contribution as one time
measure.
Officers ..........Rs.25,000/-
Class II Supervisors ..Rs.20, 000/-
Class III & IV Employees ..Rs.15, 000/-
Under the Scheme the Retired Officers/Employees and their spouses are provided medical
facilities on the same scale as provided to the in-service employees at ICICI PRUDENTIAL
Hospital/ Dispensaries and with a ceiling up to Rs.4.00 Lakhs between the retired employee and
spouse during the life time of the retired Officer/Employee when specialist treatment is provided
in other hospitals in the field of Heart, Kidney, Brain Surgery, Cancer etc.
Employees who have not opted for ICICI PRUDENTIAL Retired Employees Medical
Facilities Scheme 2003 are provided with free consultation with the Civil Surgeon, Civil Asst.
Surgeon and for other clinical examination like Urine, Blood etc. in ICICI PRUDENTIAL
Hospital at Tarnaka or in any of the RTC dispensaries.

Personal Health Care: (regular medical checkups) some of the companies provide the
facility for extensive health check up.
Flexible Time: The main objective of flexi time policy is to provide opportunity to
employees to work with the flexible working schedules or initiated by employees and
approve by management to meet business commitment while supporting employees
personal needs.
Employee Assistance Programmer: Various assistance programmers arranged like
external counseling service so that employees or members of their immediate family can
get counseling on various matters.
Maternity and Adoption Leave: Employee can avail maternity or adoption leaves.
Maternity leave policies have also been introduced by various companies.
43

Medi-claim Insurance Scheme: The insurance scheme provides adequate insurance
coverage of employees for expenses related to hospitalization due to illness, disease or
injury or pregnancy




44

1. How long have you been with the organization?

S.NO OPTIONS NO. OF RESPONDENTS PERCENTAGE (%)
1 Below 6 months 7 7
2 1 year 13 13
3 2-5 years 13 13
4 Above 5years 67 67
TOTAL 100 100



Interpretation:
From the above analysis, most of employees have more than 5 years of experience.
45

2. Which of the following attracted you to apply for the job at ICICI PRUDENTIAL?

S.NO OPTIONS NO.OF RESPONDENTS PERCENTAGE (%)
1 Salary 10 10
2 Opportunities for growth 23 23
3 Job security 43 43
4 All of the above 24 24
TOTAL 100 100



Interpretation:
From the above analysis, most of the employees attracted towards job security,
opportunities for growth.
46

3. Are you aware of compensation system follows in your organization?

S.NO OPTIONS NO OF RESPONDENTS PERCENTAGE (%)
1 Yes 70 70
2 No 10 10
3 To some extent 20 20
TOTAL 100 100


Interpretation:
It is observed that the most of the employees have aware of compensation system.
47

4. What is the need for provide benefits to employees?

S.NO OPTIONS NO OF RESPONDENTS PERCENTAGE (%)
1 Social welfare 19 19
2 Economic stability 20 20
3 Employment security 40 40
4 All of the above 21 21
TOTAL 100 100


Interpretation:
It is observed that the need to provide benefits for employment security.



48

5. Which type of compensation you prefer?

S.NO OPTIONS NO OF RESPONDENTS PERCENTAGE (%)
1 Direct 54 54
2 Indirect 16 16
3 Both 30 30
TOTAL 100 100



Interpretation:
It is observed that the most of the employees preferred direct compensation.




49

6. Do you agree that the organization provides equal pay for work of equal value?

S.NO OPTIONS NO OF RESPONDENTS PERCENTAGE (%)
1 Strongly agree 47 47
2 Agree 32 32
3 Disagree 21 21
4 Strongly disagree 0 0
TOTAL 100 100


Interpretation:
It is observed organization provides equal pay for work of equal value.


50

7. What is the criterion of allocating different benefits to different levels of
employees?

S.NO OPTIONS NO OF RESPONDENTS PERCENTAGE (%)
1 On the basis of grades 46 46
2 On the basis of salary 27 27
3 At the option of employees 26 26
4 Any other 0 0
TOTAL 100 100


Interpretation:
It is observed that the different benefits provided at different levels of
employees based on the grades.


51


8. Which type of financial rewards provided to you by the company?

S.NO OPTIONS
NO. OF
RESPONDENTS
PERCENTAGE (%)
1 Profit sharing 30 30
2 Gain sharing 22 22
3 Profit related pay 39 39
4 Share ownership 09 09
TOTAL 100 100



Interpretation:
It is observed that the most of the employees said profit related pay and profit
sharing.
52


53


9. Which type of non-financial benefits provided to you by the company?

S.NO OPTIONS NO OF RESPONDENTS PERCENTAGE (%)
1 Personal growth 30 30
2 Recognition 41 41
3 Responsibilities 20 20
4 All of the above 9 9
TOTAL 100 100


Interpretation:
It is observed that the recognition is a most efficient factor as a non-financial
reward provided by the company.
54


10. Are you satisfied with medical facilities provided to you by the company?

S.NO OPTIONS NO.OF RESPONDENTS PERCENTAGE (%)
1 Highly satisfied 13 13
2
Moderately
satisfied
44 44
3 satisfied 40 40
4 dissatisfied 3 3
TOTAL 100 100


Interpretation:
It is observed that most of the employees are satisfied with medical facilities
provided by the company.

55


11. Are you satisfied with the leave benefits with pay?

S.NO OPTIONS NO.OF RESPONDENTS PERCENTAGE (%)
1 Satisfied 79 79
2 Dissatisfied 21 21
TOTAL 100 100


Interpretation:
Hence, it is observed that the leaves are provided with pay by the company.




56

12. What kind of Fringe benefits provided by company?

S.NO OPTIONS NO.OF RESPONDENTS PERCENTAGE (%)
1 Gratuity 10 10
2 Insurance plans 30 30
3 Medical care 20 20
4 All of these 40 40
TOTAL 100 100


Interpretation:
Hence, it is observed that the all fringe benefits( gratuity,insurance plans, medical care)
provided by the company.
.


57


13. Do you think that compensation management helps in better staff attraction/retention?

S.NO OPTIONS NO.OF RESPONDENTS PERCENTAGE (%)
1 Yes 82 82
2 No 18 18
TOTAL 100 100



Interpretation:
Hence, it is observed that the compensation helps for better staff attraction.




58

14. Do you agree that a good compensation policy plays a key role to develop the
organization?

S.NO OPTIONS NO.OF RESPONDENTS PERCENTAGE (%)
1 Strongly agree 40 40
2 Agree 46 46
3 Disagree 10 10
4 Strongly disagree 4 4
TOTAL 100 100


Interpretation:
Hence, it is observed that the most of the employees agreed good compensation policy plays a
key role to develop the organization.

59


15. How do you rate total facilities provided in icici prudential?

S.NO OPTIONS NO.OF RESPONDENTS PERCENTAGE (%)
1 Excellent 13 13
2 Good 50 50
3 Average 36 36
4 Below average 1 1
TOTAL 100 100


Interpretation:
Hence, it is observed that the good facilities provided by the company.



60



Findings
The employees are aware about compensation system in ICICI Prudential.
Majority of the employees feel that good compensation policy helps to retain the
employees and to develop the organization.
Direct and indirect compensation methods are preferred by employees.
Majority of the employees attracted by job security and opportunities for growth.
Most of the employees feel that the management provides equal pay for work of equal
value.
Most of the employees feel that benefits attract and motivate the employees to work
efficiently.
Majority of the employees preferred both monitory and non-monitory benefits.
Most of the employees satisfied with leave benefits provided by the company.








61






Suggestions

Compensation should be provided based on performance.
Management should give more benefits to motivate employees to improve the efficiency.
Fringe benefits should be given to all employees equally.
Management should provide equal pay for work of equal value to all the employees.
Need to improve medical facilities for employees.
Management should concentrate on both monitory and non-monitory benefits for
employees to develop the organization.

62




Conclusion

Finally, it is concluded that the company is providing good compensation for
employees, which plays a vital role in improving the performance of employees at work
place. Most of the employees are satisfied with the benefits i.e. monitory and non-
monitory provided by the organization.













63






64

Bibliography
DeCenzo, D. A., & Robbins, S. P. (2008). Human Resource Management (Third
Editioned.).New Delhi: Prentice - Hall of India.
Agrawal, D. G. Dynamics of Human Resource Management in Nepal.
Kathmandu: M.K. Publishers.


www.managementparadise.com
www.google.co.in
www.iciciprulifel.com




65

Questionnaire
Name:-
Designation:-
Department:-
Salary:-
Mobile no.:-

1. How long have you been with the organization?
a. Below 6 months
b. 1 year
c. 2-5 years
d. Above 5years
2. Which of the following attracted you to apply for the job at ICICI PRUDENTIAL?
a. salary
b. Opportunities for growth
c. Job security
d. All of the above
3. Are you aware of compensation system follows in your organization?
a. Yes
b. No
c. To some extent
4. What is the need for provide benefits to employees?
a. Social welfare
b. Economic stability
c. Employment security
d. All of the above
5. Which type of compensation you prefer?
a. Direct (wages/salaries, Incentives)
b. Indirect (Fringe benefits, Perquisites)
c. Both

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6. Do you agree that the organization provides equal pay for work of equal value?
a. Strongly agree
b. Agree
c. Disagree
d. Strongly disagree

7. What is the criterion of allocating different benefits between different levels of
employees?
a. On the basis of grades
b. On the basis of basic salary
c. At the option of employees
d. Any other

8. Which type of financial rewards provided to you by the company?
a. Profit sharing
b. Gain sharing
c. Profit related pays
d. Share ownership

9. Which type of non-financial rewards provided to you by the company?
a. Personal growth
b. Recognition
c. Responsibility
d. All of the above

10. How do you rate medical facilities provided to you by company?
a. Excellent
b. Good
c. Average
d. Below average

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11. Are you satisfied with the leave benefits with pay?
a. Satisfied
b. Dissatisfied
12. What kind of Fringe benefits provided by company?
a. Gratuity
b. Insurance plans
c. Medical care
d. All of these

13. Do you think that compensation management helps in better staff attraction/retention?
a. Yes
b. No

14. Do you agree that a good compensation policy plays a key factor to develop the
organization?
a. Strongly agree
b. Agree
c. Disagree
d. Strongly disagree
15. How do you rate total facilities provided to you by company?
a. Excellent
b. Good
c. Average
d. Below average