A study of Compensation Management System

Objectives :-
The main objective of the proposed study was to find out how far the employee has been satisfied and how far their
performance has been improved after the commencement of 9
th
pay revision in Indian Oil Corporation Ltd, Mumbai
Refinery. It was necessary to analyze this scenario in Mumbai Refinery as because prior to the commencement of 9
th
pay
commission in the Indian Oil Sector the employees were not fully satisfied with their working condition along with the
matching of their payroll. Hindrances and disputes were arising out between the employers and employees working in this
organization.
So it was necessary for a rise in the compensation package in this sector so that the employees would be satisfied with their
performance along with their compensation package in this organization. So the commencement of 9
th
pay commission was
implemented in this organization to attain the satisfaction of the employees in this organization.

Problem Statement
If anyone of you used compensation management in SAP HR version 4.7 extension one or earlier, you will know
in the old version, the compensation statement is called Total Compensation Statement. In the new Enterprise
Compensation Management, it is now called Compensation Review Statement.
To configure the SAP Enterprise Compensation Review Statement, you would need to access it in the
configuration IMG @ SPRO -> Personnel Management -> Enterprise Compensation Management ->
Compensation Statement.
You first have to define what to include in the Compensation Review Statement for calculation. You will do this at
the Determine Structure for Total Compensation Statement. The next piece is to determine what wage types
contain the values you tell it to include in the Select Wage Type for Pay Category.
At the Create Form For Total Compensation Statement, you will be working with Smartform to design the
layout of the form used when printing the statement. Enterprise Compensation Statement uses the form
HR_ECM_CRS, no to be confused with HR_CMP_TCS used by the old Compensation Management.
After you completed the first 3 steps outlined above, the 4
th
step is where the confusion begins. In the old
Compensation Management, you could determine what form to used by the Total Compensation Statement
report through an entry in T77S0. If you are access it via the IMG, it is called Determine Standard Form For
Total Compensation Statement. The problem is, this exact structure is available in both the Enterprise
Compensation Management and the old Compensation Management. It is pointing to the exact same entry.
In the Compensation Review Statement (Program: RHECM_PRINT_CRS, Transaction: PECM_PRINT_CRS),
used by Enterprise Compensation Management, SAP hardcode in what form to use, which is HR_ECM_CRS in
their code. So you CAN NOT select what form to use if you happen to design your own form.
Due to this, you are stuck between a rock and a hard place. If you are implementing SAP, you will hear numerous
times not to change standard SAP code and always make a Z copy of what you want to change and use the Z
version. In this case, you would have to modify one of the two standard codes. You have to either modify the
include statement in the RHECM_PRINT_CRS code to remove NO-DISPLAY in the selection parameter to
allow the selection screen to show what form it is defaulting and have the user select the right form. Another
option is to change the default form from HR_ECM_CRS to whatever Z form you created.
The second method is to not change the standard program code, but go ahead and modify the HR_ECM_CRS
form. Make a copy of it to Z to be used as backup, but use the main HR_ECM_CRS as being the main form
youve modified.

Research Methodology
In order to know the satisfaction of the employees working in this organization after the commencement of 9
th
pay
commission one set of Questionnaire was administered to the employees ( both officers and non officers) working in this
organization on the online basis.

I.RESEARCH DESIGN: In order to understand the satisfaction of the Employees after the commencement of 9
th
pay
commission a brief conversation was done with the employers through online and a survey was done through online basis.

II. Data Collection through Questionnaire:- Primary data have been collected personally from the respondents through
questionnaire through online survey . The respondent includes both the officers as well as the non officers of every
department working in this organization and analysis on the basis of their working period that is more than 20 years and less
than 20 years. The respondents have been asked to fill up the questionnaire and more over data collection process also
includes oral interview through online.

III. Sampling Design & Sampling Size: - The elements of research of population or universe of interest are the peoples
both the officers and non officers of every department working in this organization. The sample size of the study consists of
samples, which include a study of 70 respondents out of which 5% are officers and 15% are non officers from every
department working in this organization. In this regards out of 70 samples 40 of the respondants were taken telephonic
interview, 20 were given online questionnaire for the survey and for the rest were conducted an oral interview.