INTRODUCTION

Human resource management is the part of the management process that is concerned with
the management of human resources in an organization.
Human resource management is a multidisciplinary activity, utilizing knowledge and
inputs drawn from psychology, Sociology, Anthropology and Economics etc.
The scope of human resource management is very large. Wage and salary
administration plays a prominent role in each and every organization. Wage and salary
administration is essentially the application of a systematic approach to the problem ensuring
that employees are paid in a logical, equitable and fair manner.
The basic purpose of wage and salary administration is to establish and maintain an
equitable wage and salary structure and maintenance of an equitable labor cost structure. So
that satisfaction of employees and employers is maximized and conflicts minimized.
The wage and salary administration concerned with the financial aspects of needs.
The needs of employees so that reward can be individually designed to satisfy some need.
Before they do anything, they look for a reward (or) pay-off may be money (or) promotion,
but more likely it will be some pay-off a smile acceptance by a peer, receipt of information,
as kind word of recognition etc.
The management of Jeypore Sugar Company has designed a well structured wage and
salary system. In the organization the salaries are paid at three levels namely salaries to non
managers including permanent and seasonal employees, salaries to executive and salaries to
management staff.

NEED FOR THE STUDY

The wage and salary administration plays a vital role in Human Resource
Management. The Human Resource Management is also plays a vital role in any
organization. One of the biggest factors affecting industrial relations is the salary or wage of
an employee receives for a fair days work.
It is necessary to understand clearly the implications of various concepts and
`principles that are related to the area of wage and salary administration.
The wage and salary structure is the most important element in the Management of
the employees. It includes areas as job evaluation, maintenance of wage structure, incentives,
profit sharing, supplementary payments and control of compensation and other related pay
items. The attention has been devoted to the study of internal structure and Human Resource
Management Policies.

OBJECTIVES OF THE STUDY

To know about the Wage and Salary administration of the Jeypore Sugar Co Ltd.,
Chagallu.

To know about the different types of allowances in the Jeypore Sugar Co Ltd.,
Chagallu.

To study about the employees Pay structure in the company.

To assess the employees perception about the Wage and Salary structure of the
company.

To identify problems, if any, in the Wage and Salary administration of the company
and to make suggestions.

METHODOLOGY OF THE STUDY

The information for the study has been gathered from two sources namely

Primary data

Secondary data

Primary data:
Primary data have been collected through personal observations, discussions and
interviews with various officials and management and from the Human Resource
Department.
To evaluate the effectiveness of Wage and Salary administrations of the company a
survey was conducted on a sample of 110 employees. For this purpose, a structured
Questionnaire with close-ended questions was prepared.
The results were tabulated, interpreted and the findings were drawn.
Secondary data:
Secondary data have been collected from the books, company records, manuals and
the reports provided by Human Resource Department, websites and magazines.

LIMITATIONS OF THE STUDY

Time had been a constraint for completion of present study and making out a detailed
analysis.

The present study is limited only to the JEYPORE SUGAR COMPANY LTD.,
Chagallu.

The employees are scared to quote their name and suggestions.

The employees were not willing to give the detailed information, because of their
busy work schedule.

The study of project work was only 6 weeks. This period is not sufficient to cover
entire area.

PROFILE OF THE SUGAR INDUSTRY

Sugar Industry is very important to the Indian National economy, because of its
multiple contributions in the shape of employment and provision of raw materials to other
industries.
Sugar is made by some plants to store energy that they don't need straight away, rather
like animals make fat. People like sugar for its sweetness and its energy so some of these
plants are grown commercially to extract the sugar.
Sugar is produced in 121 Countries and global production now exceeds 120 Million
tons a year. Approximately 70% is produced from sugar cane a very tall grass with big stems
which is largely grown in the tropical countries. The remaining 30% is produced from sugar
beet a root crop resembling a large parsnip grown mostly in the temperate zones of the north.
It had been rightly pointed out by the Late Sri. Fakhrudin Ali Ahmed when he was
Minster for food and agriculture, at the eleventh annual general meeting of the national
federation of co-operative factories limited. The co-operative factories in some parts of the
country have become symbol of industrializations in the development of ancillary industries
providing opportunities of employment to the village folk. The industry provides
employment to about 35 million cultivations and 3.6 lakhs skilled and unskilled workers.
Further, it accounts for providing employment to crores of thousands in the sugar trade, in the
transport of sugarcane and sugar etc. Its by - products are used as raw materials in industries
such as alcohol, plastics, synthetics, rubber, and fiberboard Pharmaceuticals, paper, etc. The
sugar industry in recent years has begun to export sugar, thus earning valuable foreign
exchange .Besides it provides Rs. 300 crores in the form of taxes to the exchange consisting
these many facts of important of the industry ,it ranks second among the major consumer
industries of this country, next only to cotton, Textile industry .
The sugar industry is mostly oriented to a single material, namely sugarcane that
forms 60% of the total cost of production. Therefore, the availability of sugar cane and
facilities of transporting raw material of the sugar mill naturally condition the industry of
sugar proximity to. The raw material is essential because the sucrose content of the sugar
cane begins to decrease soon after the cane is cut obtained as the factories for generating
power use a byproduct during the producing. Therefore, power is not at all a dominating
6

factor determining the location of sugar industry in recent times, techniques feasibility and
economics visibility of the sugar projects have been given importance in the location of sugar
industry. In the words of Dr.M.Mehta, The location pattern of the sugar industry is greatly
influenced by the character local distribution depends entirely of physical and Geographical
factors, nature plays a dominant role in the location industry.
In India, major sugarcane growing states are Uttar Pradesh, Maharashtra, Karnataka,
Gujarat, Tamil Nadu, and Andhra Pradesh. These six states contribute more than 85% of total
sugar production in the country; Uttar Pradesh and Maharashtra together contribute more than
57% of total production.

HISTORY OF SUGAR INDUSTRY

The discovery of sugarcane, from which sugar as it is known today, is derived dates
back unknown thousands of years. It is thought to have originated in New Guinea, and was
spread along routes to Southeast Asia and India. The process known for creating sugar, by
pressing out the juice and then boiling it into crystals, was developed in India around 500 BC.
Its cultivation was not introduced into Europe until the middle-ages, when it was brought to
Spain by Arabs. Columbus took the plant, nearly held, to the West Indies, where it began to
thrive in a most favorable climate.

It was not until the eighteenth century that sugarcane

cultivation was began in the United States, where it was planted in the southern climate of
New Orleans. The very first refinery was built in New York City around 1690; the industry
was established by the 1830s. Earlier attempts to create a successful industry in the U.S. did
not fare well; from the late 1830s, when the first factory was built. Until 1872, sugar factories
closed down almost as quickly as they had opened. It was 1872 before a factory, built in
California, was finally able to successfully produce sugar in a profitable manner. At the end
of that century, more than thirty factories were in operation in the U.S. India has been known
as the original home of sugar and sugarcane. Indian mythology supports the above fact as it
contains legends showing the origin of sugarcane. India is the second largest producer of
sugarcane next to Brazil. Presently, about 4 million hectares of land is under sugarcane with
an average yield of 70 tons per hectare.

India is the largest single producer of sugar including traditional cane sugar sweetness.
Khandsari and Gur equivalent to 26 million tons raw value followed by Brazil in the second
place at 18.5 million tones. Even in respect of white crystal sugar, India has ranked No.1
position in 7 out of last 10 years.

It is thought that cane sugar was first used by man in Polynesia from where it spread
to India. In 510 BC the Emperor Darius of what was then Persia invaded India where he
found "the reed which gives honey without bees". The secret of cane sugar, as with many
other of man's discoveries, was kept a closely guarded secret while the finished product was
exported for a rich profit.

Sugar was only discovered by western Europeans as a result of the Crusades in the
11th Century AD. Crusaders returning home talked of this "new spice" and how pleasant it
was. The first sugar was recorded in England in 1099. The subsequent centuries saw a major
expansion of western European trade with the East, including the importation of sugar. It is
recorded, for instance, that sugar was available in London at "two shillings a pound" in 1319
AD. This equates to about US$100 per kilo at today's prices. So it was very much a luxury.

In the 15th century AD, European sugar was refined in Venice, confirmation that even
then when quantities were small, and it was difficult to transport sugar as a food grade
product. In the same century, Columbus sailed to the Americas, the "New World". It is
recorded that in 1493 he took sugar cane plants to grow in the Caribbean. The climate there
was so advantageous for the growth of the cane that an industry was quickly established. By
1750 there were 120 sugar refineries operating in Britain. Their combined output was only
30,000 tons per annum. At this stage sugar was still a luxury and vast profits were made to
the extent. That sugar was called "white gold". Governments recognized the vast profits to be
made from sugar and taxed it highly. In Britain for instance, sugar tax in 1781 totaled
326,000, a figure that had grown by 1815 to 3,000,000. This situation was to stay until
1874 when the British government, under Prime Minister Gladstone, abolished the tax and
brought sugar prices within the means of the ordinary citizen.

Sugar beet was first identified as a source of sugar in 1747. No doubt the vested
interests in the cane sugar plantations made sure that it stayed as no more than a curiosity, a
situation that prevailed until the Napoleonic wars at the start of the 19 th century when Britain
blockaded sugar imports to continental Europe. By 1880 sugar beet had replaced sugar cane
as the main source of sugar on continental Europe. Those same vested interests probably
delayed the introduction of beet sugar to England until the First World War when Britain's
sugar imports were threatened.
Today's modern sugar industry is still beset with government interference at many
levels and throughout the world. The overall pattern can be seen by investigating the mid
1990. Annual consumption is now running at about 120 million tones and is expanding at a
rate of about 2 million tons per annum. The European Union, Brazil and India are the top
three producers and together account for some 40% of the annual production. However most
sugar is consumed within the country of production and only approximately 25% is traded
internationally. India is the second largest producer of sugarcane, next to Brazil the latter
produces primarily raw sugar while India produces almost exclusively white crystal sugar. In
India apart from sugar, other traditional sugarcane sweetness Khanda Sari and gur are
also produced for the rural markets. Taking all sweetness sugar khandasari and gur, India is
worlds largest producer of sugar followed by the Brazil in the second place. There are 582
sugar milks operating in India with an aggregate installed capacity of 16.2 million tones. Of
these 205 are in the private sectors 316 in the co-operative sector and 61 in the public sector.
The Sugar Industry has been totally regulated and controlled for the past 50 years.
Sugar is declared as an essential commodity under the essential commodity act 1955 and a
plethora of legislations and control orders regulate almost every aspect of the industry, with
the objective of increasing production and also making available sugar at affordable prices to
the consumer controls included licensing, administrated price for sugarcane, reservation of
cane areas, control over the price of sugar and restriction on sale/movement of the byproduct molasses were controlled for a long time.
Under the sugar cane control order 1966 the Government fixes the statutory minimum
price for cane every year based on the recommendations of the commission on Agricultures
costs and price. Sugar is a seasonal industry. The crushing season ranges between 180 and
240 days in a year depending on the location.

Locational Factors
In recent years, the location factors have influenced the dispersal of sugar cane
cultivated in subtropical regions and the development of cane in the south is mainly
responsible for bringing about location changes in the industry. Further the sugar industry has
received greater inputs from the completion of numerous irrigation projects like the Irwin
canal in Mysore (Karnataka), Nizamsagar and Tungabhadra projects in Madras (Tamilanadu).
Added to this, the discriminatory policies in pursued by the government are also responsible
for the faster rate of the growth of the industry in the south.
Given transport facilities and access is necessarily dependent up on the availability of
cane in the region .This concentration is substantiated from observation of the trend of sizes
established in different regions of this country in relation to availability of cane.
Comparatively the size of the sugar mills in Uttar Pradesh, Bihar and Maharastra where
continuous availability of cane is assured is observed to be large. Grant of production to the
Industry in 1931 also helped the units to increase their size. The average per day crushing
capacity of the sugar factories working in our country varies from 220 tons to 3200 tons per
day. In Uttar Pradesh and Bihar majority of the sugar mills have a cane crushing capacity of
2500 tons of sugar cane per day is considered to be an economical unit, under the present day
working conditions.
Since 1950, the industrys growth reveals that not with standing the controls and
regulations, in the industry did grow substantially. While, the number of factories rise from
139 in 1950 51 to 423 in 2000 - 2001 the installed capacity increased tenfold from 69.2
million tons to 300 million tons in 1999 2000; Sugar production swelled from 1.1 million
tons to 18.6 million tons during the same period. The government laid down targets for sugar
production; consumptions installed capacity during each of the five year plans and ensured
the growth of industry the growth of industry to meet the steady rise in consumption.

SCENERIO OF SUGAR INDUSTRY

India is the largest consumer and second largest producer of sugar in the world
(Source: USDA Foreign Agricultural Service). The Indian sugar industry is the second largest
agro-industry located in the rural India. The Indian sugar industry has a turnover of Rs. 500
10

billion per annum and it contributes almost Rs. 22.5 billion to the central and state exchange
as tax, and excise duty every year (Source: Ministry of Food, Government of India). It is the
second largest agro-processing industry in the country after cotton textiles. With 453
operating sugar mills in different parts of the country, Indian sugar industry has been a local
point for socio-economic development in the rural areas. About 50 million sugarcane farmers
and a large number of agricultural laborers are involved in sugarcane cultivation and ancillary
activities, constituting 7.5% of the rural population. Besides, the industry provides
employment to about 2 million skilled/semi skilled workers and others mostly from the rural
areas. (Source: ISMA Website accessed on May 16, 2005.) The industry not only generates
power for its own requirement but surplus power for export to the grid based on by-product
bagasse. It also produces ethanol, an ecology friendly and renewable energy for blending with
petrol.
Indian sugar industry has grown horizontally with large number of small sized sugar
plants set up throughout the country as opposed to the consolidation of capacity in the rest of
the important sugar producing countries, where greater emphasis has been laid on larger
capacity of sugar plants. Gone are those days when industries and its participants were highly
protected with control and protectionism policies. In the process of liberalization of economic
system, decontrolling policies like decontrol of sugar, steel, fertilizers etc.,
Sugar industry is highly subsidized so far it also effects with new economic power.
The demand for sugar has been increasing due to increase in its consumption out of changing
habits of the people including common man and the need of the sugar also demands the sugar
industry to meet the internal profit of its production and is to be exported to earn foreign
currency within the changing market.
Sugar cane growers are facing inventory problems. Transportation problem,
marketing problems, many of the growers are illiterates who are not competent to grow.
Sugar cane crop is on scientific lines. The financial problem is also other important one with
which they cannot take decisions in the time to improve quality and productivity, high
transportation. Costs prices are not increasing in proportion to the increase in cost of
production due to inflationary tendencies.
The sugar producing unit purchase sugar cane from the sugar cane growers. Therefore
management of these units have to adopt marketing concept that is customer orientation.
11

(Growers orientation) Various incentives are available from the government for developing
sugar industry .But the industry in India is facing several problems.

Economy role:
India is one of the largest sugar producing and consuming country in the world. The
sugar industry plays a vital role in rural areas and provides direct and indirect employment in
the country. India emerged as the largest producer of white sugar in the world.
The central government has already de-licensed. The sugar productions they purpose
to decontrol the release mechanism by introduction of reduce on sugar price. At present India
enjoys second place in the world sugar production. Central as well as State government has
been getting 140 crores in the form of excess taxes from sugar industry. The industry has
been providing substance to 5.5 lakhs workers and sustaining about 4.5 crores agricultures.
Its total capital investment is amount to Rs.1560 crores.
The sugar industry has a unique place in Indian economy and rural development
because of its multiple contributions in terms of employment and provisions of raw materials
to other industries. The sugar industry is the second largest agro based processing industry.
Thus occupies a vital role among the 4 major sugar producing countries in the world. The
other 3 are being USA, Brazil and Cuba.

Imports & Exports of Sugar:

In view of cost of cane and Sugar production in India, it could not complete with
other favorable countries and to honor commitments and maintain international standard
quality. The sugar exports began in the year 1958 under the Sugar export promotions act up
to middle of 1961. Government did not subsidize losses on exports and sugar factories got
prorate payment.

However in view of substantial quantity of Sugar in later years

government stopped subsidizing these losses. The export policy has been largely influenced
by the need for earning foreign exchange.

12

GROWTH OF SUGAR INDUSTRY

There were only twenty nine factories in India during the year 1931. Protection
granted to the industry in 1931 brought tremendous growth in the number of locations. The
number of factories in operation had grown from 29 to 140 in 1950 1951. Out of which 110
factories were in northern parts of India. During the next decade the number of factories
increased to 174. Out of which 116 factories are in the sub tropical region of northern India.
Finally, the number of factories has grown from 200 in 1965 to 1966 to 417 in 1994 to 1995
of which 75% of the factories are located in the northern India. The industry is predominantly
localized in the Uttar Pradesh, particularly in the districts of Meerut, Saharnpur, Bijmour,
Barely, Muzaffar Nagar Moradabad and Rampur, next Uttar Pradesh. The industry is mainly
concentrated in Maharashtra, Bihar and in the eastern costal districts of Andhra Pradesh. If
we refer to the historical event in the sphere of sugar industry, Uttar Pradesh and Bihar
occupied the predominant position as far as the location pattern of the industry is concerned,
and still these states are enjoying the same position. The reason of such heavy concentration
in the states of Uttar Pradesh enjoys in respect of cane cultivation is due to the advantages
confirmed by the rich and fertile alluvial soil of the genetic plain, the bulk of which contains
adequate quantities of lime and potash, the pressure of thin varieties of cane admirable suited
in the climate cheap and extensive of cheap and extensive irrigation facilities. The
concentration of sugar cane crop incompact blocks enables the sugar factories to get fresh
suppliers of sugar cane direct from the fields. Moreover, the cost of the cane cultivation is
less and the cultivators are not accustomed to raise alternative crops like ground nuts, chilies,
plantains etc.

13

STATE WISE SUGAR PRODUCTION

(000tonnes)
Table:2.1
2006STATE

2007-08

2008-09

2009-10 2010- 11

2011-12

07
A.P

1210

982

1236

1680

1335

593

Gujarat

1252

797

1168

1425

1326

1012

Karnataka

1868

1040

1943

2662

2900

1654

Maharastra

6219

2217

5197

9100

9075

4578

U.P

5651

5037

5784

8475

7319

4064

Tamilanadu

1644

1108

2142

2539

2141

1598

Punjab

586

315

338

486

534

242

Bihar

408

253

422

451

336

214

All India

20145

12691

19267

28364

23657

13955

14

Sugar Cane production

Table:2.2

Year
1997-98
1998-99
1999-2000
2000-01
2001-02
2002-03
2003-04
2004-05
2005-06
2006-07
2007-08
2008-09
2009-10
2010-11
2011-12

No. of factories
29
148
138
174
215
315
385
436
434
453
422
400
455
504
516

15

Cane production
(million tons)
36.35
51.97
57.05
110
126.37
154.25
241.05
295.96
297.21
287.38
233.86
237.06
281.17
355.52
348.78

Number of Factories 2011-2012

Table:2.3

STATES
Punjab

Public
-

Private
7

Co-Operative
16

Total
23

Haryana

12

15

Rajasthan

U.P

33

70

28

131

Uttaranchal

10

M.P

11

Chandigarh

Gujarat

22

22

Maharastra

23

165

188

Bihar

15

14

29

Assam

Orissa

West Bengal

A.P

26

15

42

Karnataka

25

23

51

Tamilanadu

19

16

38

Pondicherry

Kerala

Goa
Total

61

205

1
316

1
582

Problems of sugar industry in India:

16

1. Excessive control:
The industry is suffering from changing of Government policies. The Government has
no fixed policy regarding the price and distribution of sugar.
The production of sugar is influenced by the purchasing price of sugar cane depending
upon the cost of cultivation, the inefficiency and uneconomic nature of production in sugar
mills to yield and short crushing season. The high pressure sugar cane and the heavy excise
duties by the government are responsible for the high cost of production of sugar in India.

2. Under Utilization of by-products:

In sugar production we get two by-products, molasses and bio-gas, while molasses can
be used in alcoholic preparation. These factories are not well developed in India. And bio-gas
can be used in paper industry. But this is not being utilized properly by our paper industry. In
India the yield of sugar cane per acre and percentage recovery of sugar from cane juice is
very low.

3. Short Crushing Season:

Although the land is utilized throughout the years, crushing season is limited to 3-4
months in a year. Hence factories have to be closed for the remaining period. This is making
uneconomic too.

4. Obsolescence:
Most of the factories in the private sector were set up five to six decades ago. Their
machinery has by now duplicated. The cost of production of such units is unduly owing to
less mechanical efficiency and more down time. It will require more money for
modernization/ renovation of such factories.
The worst handicapped, cropping, the industry is the low level of productivity due to
inadequate irrigation facilities and ultimately supply of quality seed, material.

5. Technology:

17

The level of technology in the Indian sugar industry is quite high and a number of
developing countries have borrowed Indian Sugar technologies. Unfortunately however many
of Indian factories had been set up in early 30s and have become absolute. For these the need
of the hour is modernization, rehabilitation and expanding also. Attention needs to be paid to
cane development.

6. Output trends:
Over production is due to cyclical nature and seasonal conditions and cultivations of
average sugar cane. The fluctuation in the production of sugar cane is a major problem of the
day.

Sugar industry in A.P:

AP occupies 4th place in respect of sugar growing in the country. Sugar cane is
cultivated in the districts of Srikakulam, Vizag, East Godavari, West Godavari, Krishna,
Nizamabad, Cuddapah, Chittor and Guntur. The mill at Bodhan in Nizamabad district of AP
is the highest sugar producing unit in Asia.
Three more units were set up under the same management. In our country total cane
under sugar cane 1/4th belongs to AP and this occupies 9th place in the industry.

18

PROFILE OF THE JEYPORE SUGAR COMPANY

LIMITED
The Jeypore Sugar Company Limited was incorporate as a public limited company on
29th July 1936 under the Indian Companies Act, 1913 and was the first Company to be
registered in the newly formed province of Orissa.
The company started a Sugar Unit at Rayagada, Koraput District, and Orissa with an
initial capacity of 150 TCD. And subsequently expanded to 450 TCD. The company
diversified into various other activities like manufacturing of industrial Alcohol, Indian made
foreign Liquor and Ferro manganese.
In the course of expansion of the company, a separate Sugar Unit was established at
Nagaram in Guntur district, Andhra Pradesh in 1958. Due to non availability of sugar cane,
The Unit was shifted to Chagallu, West Godavari District, in Andhra Pradesh in 1961, with an
installed capacity of 850 TCD and having licensed capacity of 1250 TCD. At present, the
companys installed capacity and crushed capacity is at about 8500 TCD. The founder of the
organization is late Sri. Velgapudi Rama Krishna. He was born on March 4 th, 1896 in the
village of Bellamvaripalem in Guntur Dist.
Now the Chairman & Managing Director of this organization is Smt. Rajeswari
Rama Krishnan. She was born in 1928. She is the eldest child of the great late Sri. Velgapudi
Rama Krishna. She graduates from Queen Marys college in 1945. The Jeypore Sugar Ltd
(VVS sugar) has taken big studies under her stewardship and today the company has became
the biggest sugar unit in AP. This manufactures sugar, ferromanganese, alcohol, and starch.
She is closely associated with KCP madras aluminum co ltd, EIMCO-KCP fuller KCP
(Krishna Industrial Corporation), Rama Krishna industries pvt ltd, VR Textile ltd and
Coimbatore institute of technology and sandwich polytechnic.
The Jeypore Co. Limited possesses 4 branches in India. One branch is in Rayagada
and the remaining three branches are in A.P.

Promoters and their background

The company was promoted by a group of friends of late Sri. V. Rama Krishna, ICS.
Under his advice in the year 1936, it was the first company to be registered in the newly
formed province of Orissa which was formed after the Govt. of India Act of 1935. Sri
V.Rama Krishna was not a signatory to the memorandum and articles of association of the
19

company as he was then in the government service. After his retirement in 1947 from the
service he actively participated in the Management of the company and became director of a
company called R.S. Industrial corporation Pvt. Ltd., which then managing agents of the
company. He was a Director of the company unit until he passed away in 1968.

Mrs. Rajeswari Ramakrishna aged 77, is a graduate, in Arts. She was appointed as a
managing director of R.S. Industrials Corporation Pvt. Ltd. in April 1963 and was involved in
the management of the company under the guidance of Late Sri. V. Ramakrishna founder of
the company. She became the managing Mrs. Rajeswari Ramakrishna aged 77, is a graduate,
in Arts. She was appointed as a managing director of R.S. Industrials Corporation Pvt. Ltd. in
April 1963 and was involved in the management of the company under the guidance of Late
Sri. V. Ramakrishna founder of the company. She became the managing Director of the
company in September 1967. In anticipation of abolition of the managing agency system and
since then has been actively associated in the management of the entire operation of the
company.

Main objectives of the company:

The objectives of the company set out in the memorandum of association as under:

To establish factories for manufacturing of sugar/ other sugar production

material to refine and produce jaggery sugar and for manufacturing of any other sugar
production including confectionary bi- products of the sugar.

To establish the sugar cane units properly and to increase the production of the
sugar cane.

To supply least variety of cane seeds.

To give maximum price to suppliers of sugar cane.

To export sugar and other products to the farmers.

To introduce the agriculture development schemes and other subsidiary

schemes for the farmers.

Other objectives like facilities for employees and development of area.

20

DETAILS OF VARIOUS UNITS OF THE COMPANY

Table:2.4

Licensed

Installed

Year of

capacity

capacity

inception

450TCD

150 TCD

1936

Old and

9,00,000 BL

9,00,000BL

Indian Made

Per Annum

Per Annum

Units

Product

GSR
Sugar

Sugar

Rayagada
Industrial A/c
JSCO
Distillers

1948

Rayagada
foreign liquor
Ferro
Manganese

Ferro

24000 T per

18000 T Per

Plant,

Manganese

annum

annum

Sugar

1250TCD

850TCD

1961

50 Mt Per Day

1976

1958
Rayagada
V.V.S. Sugars
Chagallu
Rama Krishna
Starch 50 Mt
Maize Products

Starch
per day

Coimbatore
Distilleries

Rectified

Chagallu

Spirit

2001

TCD Tons crushing per day

MT Million Tons

1.

Sugar Unit at Rayagada:

This was the first units started by the company. Due to limited irrigation potential at
Rayagada, the company decided to discontinue the production and dispose the unit. However,
21

the unit could not be disposed as a whole, since the sugar machinery was scrapped and sold
for a value of approximately Rs. 38.00 lakhs during the year 1994-95.

2. Distillery at Rayagada:
The Company started this unit in 1948. At present, the unit gets its raw material Viz.,
Molasses form the company sugar unit at Chagallu. The company terminates the molasses
and district and some to make rectified spirit and extra and neutral alcohol after second
distillation. The company is contemplating to manufacture IMPL in this unit.

3. Electro Metallurgical Division:

The production in this unit was very meager due to heavy cost of inputs and low
demand for Ferro manganese internally and for exports. The production of the unit was
adopted effective from January 1995. No production took place in this unit during the year in
view of unfavorable market conditions.

4. Sugar Unit at Chagallu:

The unit commenced it operations in 1961. In view of the availability of sugarcane at
Chagallu, as scheme of expansion was undertaken in 1964 to increase the installed capacity
was further increased to 3000 TCD in 1968. A letter of intent was obtained for substantial
expansion to 500 TCD in 1975, but due to uncertainty of the availability of sugar cane, the
expansion could not be taken up and the letter of interest was surrendered subsequently. In
1990 the
Expansion programme was undertaken with a total capacity expenditure of Rs. 41.57
crores to increase the capacity of the unit from 3800 TCD to 5000 TCD. This was completed
in 1993. The company started its commercial production at the increased capacity from
December 1993 onwards. The expansion project was financed by term loans availed from
ICICI and sugar development fund from internal accuracy of the company. The Company
expected to crush about 13 lakhs tones of cane during 2002-2003 season, anticipating the
increase in crushing, the capacity increased from 7500 TCD to 8500 TCD but due to serve
drought conditions and scanty rainfall, the yields went down and the company crushed only
9,86,500 tons up to 31st March 2003, the recovery is also dropped drastically. The company
crushed 12,83,994 tons of cane in the year 2007-08.

5. Rama Krishna Maize Products:

22

The company started this unit in 1976 at Tidialur in Coimbatore, where the company
owns 43.29 acres of land for the manufacture of starch from maize. However, due to scarcity
of water for the manufacturing process, the company had to suspend the activity in 1986. The
production in this unit continuous to be suspend during this year also due to scarcity of raw
materials and unfavorable conditions in the fertile industry.

6. Chagallu Distillery:
The company started working this unit in November 2001 and it is working
continuously although it is still carrying on modifications. The company is going at 100%
rated capacity to produce ethanol during 2003-2004. The Government of India has notified
that nine states in the country (one of which is Andhra Pradesh) have to start supplying GasEthanol and the company received permission for expansion of the distillery to 35,000 liters
per day from the present 20,000 liters per day. After submitting the report there will be
public hearing after which the pollution control board will give the necessary clearances.

PRESENT PROJECT OF THE COMPANY:

The company is presently manufacturing sugar at its factory located at Chagallu, west
Godavari in AP. The present expansion plan is being taken to increase its exports from
5000TCD to 8500TCD. After implementation of the present project the annual production per
season of sugar increased from 8, 00,000 QTS to 13, 00,000 QTS. As part of project the
company proposes to set up a co-generation plant for generating power 13 MW. They already
received the consent of AP state electricity board (APSEB).
The expansion of the company from its present capacity of 8000 TCD to 8500TCD to
manufacture white crystal sugar shall be carried out at its existing location at Chagallu.

LAND AND BUILDING:

The company presently owns 147.55 acres of land at Chagallu. There the existing
sugar units located had the extent of area covered by buildings in 71.56 acres. The company
at present has 13 sugar godowns for storing 10, 00, 00 bags of sugar.

23

Growth of Chagallu unit (V.V.S. sugars):

The sugar unit at Chagallu commenced crushing on 2 nd December, 1961 with an
installed capacity of 850 TCD. In view of the availability of the cane, during 1964, a scheme
of expansion was taken up for the achievement of licensed crushing was raised to 1,250 TCD.
It was expanded in 1968 to 3000 TCD D. Letter of intent was obtained for substantial
expansion to 5000 TCD. In the 1975, during the decode of 70s sugar industry was ploughed
with various reasons including Government policies especially in the vicinity of Chagall good
number of khandasari sugar mills were working in those days and there used to be large scale
division . At present the company is crushing with an installed capacity of 8500 TCD.

BOARD OF THE ORGANIZATION

Chairman & M.D

: Smt.Rajeswary Rama Krishna, B.A.,

Finance Manager &

Company Secretary

: Sri.P.S.Krishnamurthy, B.sc, MA, A.C.A, ACS

Executive Director

: Smt. Anita Prabhu, B.Com.

Board of Directors

: Sri. R. Prabhu, B.E. (Hons) S.M. (MIT), M.P

: Smt. M.A. Vedavalli
: Sri.Boppana Ramlingeswara Rao, M.A., L.L.B
: Sri. K. Muneswara Rao
: Dr.S.R.K.Prasad, Dsc, (USA)
: Sri.R.Kannan., B.Tech,
: Sri.K.Subramanian, M.A, B.L.

The main departments of the company:

The Jeypore Sugar Company has the following departments.
1. Finance Department.
2. Personnel Department.
24

3. Production Department.
4. Marketing Department.
5. Agricultural Department.
6. Electrical Department.

1.

Finance and Accounts Department :

The main function of financial development is to arrange the funds for salaries, wages
for the employees and daily wages, to arrange payment to the sugar cane growers for the
purchase of other considering goods, oils, chemicals, spare parts of the machinery and they
have to receive sale proceeds by way of selling products.

Finance Department Chart

Accounting Department
Manager
Finance & Accounts
Asst Manager Finance & Accountants
Asst Accountant Officer
Clerks

2. Personnel Department:
The function of personnel department is divided into 3 parts.

25

Action:
The main function of personnel department is to look after with manpower planning,
recruitment, selection, placement, induction, promotion, and transfer, demotion, separation,
lay-off, retrenchment, training, wage & salary administration. The personnel functions also
include the welfare aspects of labor are concerned with the conditions of work and elements
such as the provision of canteens, housing, transport, medical, education and health and
safety provisions.

Industrial Relations:
One of the key functions of the organizations is industrial relation. If the relation
between management & employee are cordial, the production is good. Otherwise the
production decreases. It may lead to indiscipline and other misconducts.

Disciplinary:
To keep up discipline in the organization is another function of personnel department. If
any worker commits a mistake, the management must take action according to the sending.
Charge Sheet

Enquiry

Suspension

Dismissal

Employment:

Recruitment:

26

It is concerned with quantity and quality of man power. Technical staff is

recruited from employment exchange. Take apprentices from employment exchange for a
period of 1 year. They give stipend for that year. After 1 year they are revealed from
service. It is for lower cadre like filters, technical staff etc. They recruit these employees
based on experiences.

Selection:
Selection process typically follows standard pattern beginning with an initial

screening interviews and including the final employment decision.

Written exam

Interview

Medical exam

Induction:
There is no induction programme for workers. But in the case of executives

they send circular department of the organization.

Placement and Probation:

A proper placement of a worker reduces employee turnover, absenteeism and

accident rates and improves more probation period, is 1 year. It extended to them on for
with permanent employees.

Promotions and Transfers:

Promotions are based on the seniority and ability. But most of them are based

on seniority. Promotions are given for every 6 years. Transfers are due to convenience of
the company employee. Temporary transfer due to ill health. Permanent transfers arising
out of ill health.

Time, Office Management:1.

Procedure of Taking attendance:

27

The attendance procedure followed in this organization in the case of workers

they had given the token numbers in this come to the organization they inform their
token numbers in the time office. In the case of staff they are given token numbers
they directly sign in the register.

2.

Shift Timings:
As the manufacturing process of the company is continuous in the nature, the
working hours for the employees and workers are as follows during the season. For
the staff includes executives, supervisors, clerks, office boys etc. who are not
connected with manufacturing process. i.e., General Shifts from 7.30 to 11.30 am and
1.00 to 5.00 pm For the Sr.Engineers, A.ES.,J.ES, Supervisors, manufacturing
chemicals, lab chemists and workers who are connected with manufacturing process

A Shift from 4.00 am to 12.00 Noon

B Shift from 12.00 Noon to 8.00 pm
C Shift from 8.00 pm to 4.00 am

MANPOWER:

28

At present the company employed 1064 employees. Besides this, the company is
responsible for creating indirect employment to above 40,000 persons continuously in the
firm of cane cultivation in its zone area.
Table:2.5

Grade

Grade

Level
1

Name
Officers

Permanent

Seasonal

Grand

65

Total
65

Super A

23

23

Super B

15

15

Super C

20

24

Clerk II

41

41

Clerk III

29

12

41

Clerk IV

18

27

45

High Skilled

15

15

Skilled A

80

85

10

Skilled B

86

28

114

11

Semiskilled

65

108

173

12

Un Skilled

12

75

87

13

PRW

139

146

Total

476

398

874

Apprentices

190

190

3.Production Department:
Particulars of cane crushed:
29

Duration
No of Days
Cane Crushed(Tons)
Sugar Produced(Qts)
Recovery (%)
Turnover (Rs in Lakhs)

2009-10
175
11,96,365
13,95,11s0
11.14
22,319

2010-11
189
12,83,994
13,93,770
10.85
16,792

JEYPORE SUGAR COMPANY LIMITED TOTAL PRODUCTION

Table:2.6

Production
Year
(in quintals)
8,38,460

1999-2000
2000-2001

7,80,300

2001-2002

9,45,520

2002-2003

10,30,300

2003-2004

11,45,800

2004-2005

11,26,400

2005-2006

13,09,340

2006-2007

9,23,650

2007-2008

10,75,620

2008-2009

12,24,740

2009-2010

13,95,110

2010-2011

13,93,770

2011-2012

6,38,680

Milling Tandem:
A) G.H.H.

24 * 48 in West Germany

B) K.C.P.

30 * 60 K.C.P.Ltd. Chennai in India.

30

2011-12
94
5,83,127.641
6,38,680
10.98
12,773

C) K.C.P. Self setting mills 36 * 72 K.C.P.Ltd., Chennai in India.

Boilers:
a) Rilly stocker 1 No.

20 tons/hour.

b) K.C.P. 4 No.

20 tons/hour.

c) W.I.L. 1 No.

28 tons/hour.

d) K.C.P. 1 No.

64 tons/hour.
(42 kg/cm) high pressure.

Turbo Alternates:
I) K.K.K West Germany 750 K.W.
II) E.K.I.M. Australia

3000 K.W.

III) Triveni Killoscar India 3000 K.W.

IV) Skoda D.G. Set

600 K.W.

Two Sets of Knives:

I Mill 20 rollers 920 x 1830
II Mill 18 rollers 835 x 1500 shredder each mill.

31

SUGAR MANUFACTURING PROCESS

Sugar Cane

Weigh Bridges

Cane carriers

Cane cutter

Maceration water- Shredder Mills-Bagasse to boiler as fuel (through

water weighing scale)

Raw/Juice (Mixed)

Juice Hearts

Timing juice treatment tanks- sulphation So2 gas

Clarifies-Filter cake through rotary vacuum filter

Evaporators

32

Syrup-Sulphited
Vacuum pans

A-1, B-1, B-2, C Massecuites Crystallizers

Centrifugal Machines (AH, AC, BH, CL, FM, AB, Heavy & Light
Molasses)

Sugar Grader

Sugar bagging (Grade Wise)

Sugar Godowns (For storage)

3. Marketing:
For sugar there is no special effort. It is an essential commodity. Most of the product
i.e., (80%) sold in calculation market and 20% is civil supplies department in district. There
are 2types of sales.

33

a.

Levy Sale:
It is 20% of the total production. State government allotted this sugar for public
distribution. The hierarchy of sugar suppliers.

Director Civil Suppliers

Civil Suppliers Corporation

District wise Managers

b. Free Sale:
Under this 80% of product was sold. Sales executive in madras consult managing
directors. According to the market he fix the rates of free sale sold to sugar dealer licensed to
deal in sugar under the order relating to licensing of sugar dealer for time being in force in
state, union territory of nominee of the government of Bhutan.

Small
29

Medium
30

Large
31(Grain Size)

Pure White

Dull White

White (Color)

Director of sugar, New Delhi fixed time for sale of sugar also they fixed the quantity of
sugar which should be sold.

c. Sale Duties:

Packing of godown

Delivery

Payment Collection

34

4. Agricultural Department:
This department gives information to the farmer about how much sugarcane is to be
produced. The cane manager sees these functions. He is the head of the agricultural
Department. His main duty is to supply the sugarcane. He is supervising the plantation of
sugarcane in entire jurisdiction of the good factory.
The main aim is to get good sugarcane to develop the sugar. They offer subsidiaries to
the cane growers by way of offering Fertilizers. They paid cane price as perorates of the
central & State Government as time. Sugar cane manager is responsible for the continuous
Supply of good cane for the production of sugar. They start crushing of cane in the month of
November and it was being completed in the month of April.

5. Electrical Department:
He is head, not only for electrical but also instrumentation department. He is looking
after the electrical machines & generation of power. He is also looking for the running of
machinery with the electrical aid & running of the turbans for the process of production
setting up of Co-generation plant.
The first phase of the plant was TT Mega watts. The due course of the plant was 2.6
Mega watts. In this organization various departments are looked after by the managers of the
organization. They are;

Deputy plant Manager is looking after 3 sections.

Civil

Purchasing

35

Sugar Sale

Civil :
He is looking of the constructions of building & godowns and formations of drains etc
in and around the colony, factory premises.

B) Purchase :
The purchasing office looking for the purchasing of considering goods like oils, gas,
chemicals, spare parts of the plant & machinery and fabrication of the machinery. These are
the works, which are carried out by the purchase department.

C) Sugar Sale :
It is divided into two types.
Free Sale
80%

Levy Sale
20%

Factory Manager:
He is the technical head for mechanical engineering in the process of production.
Their main duty is to keep up machines in good conditions and to give the necessary advice
& guidelines to the workers and he is also responsible to ensure smooth running of the
factory.

Resources:
The success of any sugar factory depends upon the availability of raw material that is
sugar cane which is agro based. The fare availability of sugarcane supply is primary
requisites.

Raw materials:
The factory zone consists of the village having the total area under come 9000 Hectare.
The management has taken on its hand developing cultivation of cane among most of the
villages in the zone providing
necessary incentives by way of price, sub-sidized

supplies of fertilizer, pesticides and

disseminating improved and modern agricultural practices and technology apart from
introducing new krietises, propagating and supply seed at free of cost at subsided rates.

36

RESEARCH AND DEVELOPMENT

Force feeders of ulna make being introduced to improve the extraction in old K.C.P
Mills. This will reduce Moisture in baggase and thereby more baggase can be saved. By
addition of ulna rollers and recovery as well crushing rate will improve.
The company has been selected for carrying out research in the care improvement in
Co- Ordination with Lanky research station for both early and Medicate varieties. On trail,
two varieties le 85a261 (89015) and 86v96 have been identified as sugar rich varieties
suitable for the area. Similarly variety 7805 has been selected by such trails, which helps to
fetch, first place in recovery in Andhra Pradesh state to the factory during this year. Dare to
the tight financial condition no R&D programmes in the current year.

TECHNOLOGY
Introducing economizers has raised bailer efficiency and air preheats. Ulna rollers
have been introduced. To improve extraction and there by recovery, Godavari water has been
brought down over a distance of 12kms to provide soft water of coiling as well as process..

SAFETY AND POLLUTION CONTROL

All the safety measures are implemented as per factories Act. Adequate steps are
taken for treatment of polluted water by installation of aerators to reduce the BOD to the
required level.

a. Air Pollution:For the entire running boilers wet scrubber has been installed. For the Stand-by
boilers only the wet scrubber is yet to be installed. As air pollution is fully controlled.

b. Water Pollution:Water pollution treatment has been upgraded. The entire effluent Generated is
being utilized for fret-irrigation. A zero discharge system is installed.

c. Bi-Products:Nazism sugar factory and the Jeypore sugar company are jointly experimenting
generation of bio-each by treating fitter cake and NSFS distillery spent wash for making
experiment of generating bio-earth.

37

WELFARE FACILITIES PROVIDED BY THE COMPANY

Statutory safety facilities
a. Staff shoes
b. Uniforms
c. Other safety equipment.

Statutory Welfare facilities

a. Washing facilities
b. Canteen facilities
c. Restrooms and lunchrooms
d. Welfare officer
e. Ambulance room

f. Facilities for sitting

Non Statutory Welfare facilities
a. Co-Operative Stores
b. Co- Operative Credit Society
c. Sri Velgapudi Ramakrishna public school
d. School bus
e. Sri Velgapudi Ramakrishna Recreation club of staff and workers
f. T.V users association
g. Conducting Sport and games

Non-Statutory Benefits
a.

Stitching Charges

b.

Night shift allowances

c.

Exgratia
38

d.

Medical Reimbursement

Other benefits and allowances

a. Bonus
b. Gratuity
c. Workmen Compensation
d. Labor Welfare fund Contribution
e. Medical expenses for insured persons
f. Retaining allowances
g. Provident fund

Trade Unions:

1.

Chagallu Sugar factory workers union INTUC

2.

V.V.S. Sugars employees union CINTUC. In the year 1985, the workers went on
illegal Strike and as a result 25 workers are suspended. Later the representatives of the
workers entered into agreement with the Management. All the 25 suspended workers
are taken back into fold by the management in 1995. At present there is only one
union in the company and as such co-ordinates relationship between management and
workers.

3.

The company is managed by board of directors and the dynamic leadership of Sri.
P.R. Ramakrishna as chairman and Smt Rajeswari Ramakrishna as managing director.
The Board is constituted with 8 directors and the management is running with 10
executives.

39

LIST OF AWARDS AND HONORS:

The following are the plethora of awards honors and recognition received for its pre
eminent of performance of JSCO

1.

Recipient of national energy conservation award from ministry of power,

Government of India for the financial year 1995-96.

2. Award by SISTA South India sugar Technology Association, as state first in

recovery for 1997-98.
3. Award by SISTA - South India sugar Technology Association, as best cane manager
for 1999-2000.
4. Award by SISTA - South India sugar Technology Association, as best cane manager
for 1998-99 and 2007-2008.
5. Award by SISTA- South India sugar Technology Association, as Best Performance in
A.P for the year 2011-2012.

40

Wage & Salary Structure for different categories in JSC

Table - 2.7

Managerial staff supervising

Consolidate

candidates
Workers & electrical staff

Wage board

Trainees

Consolidate

Apprentices

Government

PRW for below 175 bags

Each bag 70 paisa

Next 25 bags

Each bag 90 paisa

Next each bag

Each bag 1.05 paisa

PRW-Piece Rate Workers

In seasonal 25% retaining allowance will be given for Piece rate workers. The above
table 2.7 shows the information about how Jeypore Sugar Company Limited pays the wage
and salary for workers and managerial staff, supervising candidates and trainees and
apprentices and Piece rate workers.

List of grades & attached pay scale

41

Table 2.8
S.No
Grade
1
Super A

Pay scale
5000-800-9000-1000-14000

Super B

4500-500-7000-700-10500

Super C

4000-400-6000-600-9000

Clerk I

4100-635-4750-75-5500-85-6350

Clerk II

4000-60-4600-70-5300-80-6100

Clerk III

3900-55-4450-65-5100-75-5850

Clerk IV

3750-50-4250-60-4850-70-5550

High Skilled

4000-60-4600-70-5300-80-6100

Skilled A

3900-55-4450-65-5100-75-5850

10

Skilled B

3750-50-4250-60-4850-70-5550

11

Semi-skilled

3600-40-4000-50-4500-60-5200

12

Un Skilled

3500-35-3850-45-4300-55-4850

The above table 2.8 shows what grades are in the Jeypore Sugar Company Limited
and what is the pay scale in the Jeypore Sugar Company Limited that is paid for workers.
The table shows the pay scale non managers in the company. There are basically three
types of non managing employees. One is Supervisory cadre and the second one is clerical
cadre and the third one is the skill based category.
In the supervisory cadre there are three grades grade-As pay scale starts with 5000/basic in this yearly increment is 800/- once the scale cross the 9000/- the increment will grow
up to 1000/- the scale ends at 14000/- basic.
Grade-Bs pay scale starts with 4500/- basic in this yearly increment is 500/- once the
scale cross the 7000/- the increment will grow up to 700/- the scale ends at 10500/- basic.
Grade-Cs pay scale starts with 4000/- basic in this yearly increment is 400/- once the
scale cross the 6000/- the increment will grow up to 600/- the scale ends at 9000/- basic.
42

In the clerical cadre there are four scales of pay , Clerk-I pay scale starts with 4100/basic in this yearly increments is 65/- once the scale cross the 4750/- the increment will grow
up to 75/- once the scale cross the 5500/- the increment will grow up to 85/- the scale ends at
6350/- basic.
Clerk-II pay scale starts with 4000/- basic in this yearly increments is 60/- once the
scale cross the 4600/- the increment will grow up to 70/- once the scale cross the 5300/- the
increment will grow up to 80/- the scale ends at 6100/- basic.
Clerk-III pay scale starts with 3900/- basic in this yearly increments is 55/- once the
scale cross the 4450/- the increment will grow up to 65/- once the scale cross the 5100/- the
increment will grow up to 75/- the scale ends at 5850/- basic.
Clerk-IV pay scale starts with 3750/- basic in this yearly increments is 50/- once the
scale cross the 4250/- the increment will grow up to 60/- once the scale cross the 4850/- the
increment will grow up to 70/- the scale ends at 5550/- basic.
In the skill based category there are five scales of pay, High skilled scale starts with 4000/basic in this yearly increments is 60/- once the scale cross the 4600/- the increment will grow
up to 70/- once the scale cross the 5300/- the increment will grow up to 80/- the scale ends at
6100/- basic.
Skilled-A scale starts with 3900/- basic in this yearly increments is 55/- once the scale
cross the 4450/- the increment will grow up to 65/- once the scale cross the 5100/- the
increment will grow up to 75/- the scale ends at 5859/- basic.
Skilled-B scale starts with 3750/- basic in this yearly increments is 50/- once the scale
cross the 4250/- the increment will grow up to 60/- once the scale cross the 4850/- the
increment will grow up to 70/- the scale ends at 5550/- basic.
Semi Skilled scale starts with 3600/- basic in this yearly increments is 40/- once the
scale cross the 4000/- the increment will grow up to 50/- once the scale cross the 4500/- the
increment will grow up to 60/- the scale ends at 5100/- basic.
Unskilled scale starts with 3500/- basic in this yearly increments is 35/- once the scale
cross the 3850/- the increment will grow up to 45/- once the scale cross the 4300/- the
increment will grow up to 55/- the scale ends at 4850/- basic.

EXCUTIVE PAY SCALE

Table 2.9

GM

49000

43

Deputy GM

42000

Manager engineering

30208

Chief engineer

30208

Deputy Chief engineer

29800

Asst manager

19700

Sr. manger chemistry

16100

Lab superintendent

14700

Sr. engineer electrical

14200

Sr. engineer instruments

16200

Asst cane manager

21400

Sr. Agriculture officer

19000

Asst cane supply officer

14200

Deputy GM(admin)

46800

Deputy GM(finance)

42400

Welfare officer

20000

Personnel officer

15000

The above table 2.9 shows the details about the pay scale that is paid to the
executives in the Jeypore sugar company limited. Executive pay scale depends up on job
complexity, education, experience, performance, capacity to pay and legislation.

Details of Remuneration, Commission and Sitting fees paid to all the

Directors for the year ended 31st March, 2012
Table 2.10

44

Directors

Smt.Rajeswariramakrishna

Commission

Salary&
Allowance,
Perquisites
Including
P.F
Rs

Total
Rs

47,04,000

Sri.P.R.Ramakrishna

2,80,000

2,80,000

Sri.B.Ramalingerswara rao

2,00,000

2,00,000

Dr.S.R.K.Prasad

60,000

60,000

Sri.k.Muneswara Rao

1,20,000

1,20,000

Smt.M.A.Vedavalli

1,00,000

1,00,000

Smt.Anita Prabhu

47,04,000

Sitting
Fee
Rs

26,88,000

26,88,000

Sri.R.Prabhu

80,000

80,000

Sri.R.Kannan

2,40,000

2,40,000

Sri.K.Subramanyam

1,60,000

1,60,000

12,40,00
0

86,32,000

Total

73,92,000

The above table revels that the details about remuneration, commission and Sitting
fees paid to all the Directors for the year ended. It gives a clear form of pay structure in the
company.

Different allowances are listed shown in the given below table.

Table 2.11

Grades

FA

HRA

ED. ALL
45

CA

WA

V.D.A

Super A

1800

500

205

100

2615.60

Super B

1800

500

205

100

2615.60

Super C

1800

500

205

100

2615.60

Clerk - I

466

500

205

100

2615.60

Clerk II

491

500

205

100

2615.60

Clerk III

546

500

205

100

2615.60

Clerk IV

647

500

205

100

2615.60

High Skilled

508

500

205

100

90

2615.60

Skilled A

546

500

205

100

90

2615.60

Skilled B

649

500

205

100

90

2615.60

Semi-skilled

720

420

205

100

90

2615.60

Un Skilled

770

340

205

100

90

2615.60

The above table shows the information about the different types of allowances that are
paid to the Non- Managers in the company.
FA-fixed allowance
HRA-house rented allowance
CA-cycle allowance
WA-washing allowance
All grades for Education allowance is Rs.205/All grades for VDA is Rs.2615.60/-

Bonus:Continuously the company is paying bonus as the rate of 20% as per the provisions
of bonus as the rate of 20% on their total salary with out having any salary limit as prescribed
under the bonus act.

46

Wage deductions:The company deducts the wages of the employee in such cases when
the employees takes loan from LIC and staff advances in loans from the credit society.

WAGE AGREEMENT:
As the recommendations of third wage board expired by 30-09-1993 after expiring the
third wage board that two bipartite agreements (09-01-96 to 31-03-98 and 01-10-02 to 31-1205) were occurred between the management of the Jeypore Sugar Co Ltd. and their workmen.
Interim relief of Rs.300/- per month paid to all permanent and seasonal employees
from 01-04-98 to 30-09-02.
A new bipartite agreement was entered between the management of the Jeypore Sugar
Co Ltd. And their workmen.
(a). An increase of basic for all categories of employees given as follows
Un-skilled - Rs. 450/- p.m (Rs. 325/- p.m for previous agreement)
Semi-skilled - Rs. 500/- p.m ( Rs. 375/- p.m for previous agreement)
Skilled & above - Rs. 550/- p.m (Rs. 425/- p.m for previous agreement)

(b). HRA for all categories of employees is given as follows

Un-skilled- Rs. 240/- p.m (Rs. 160/- p.m for previous agreement)
Semi-skilled - Rs. 270/- p.m (Rs. 180/- p.m for previous agreement)
Skilled & above - Rs. 300/- p.m ( Rs. 200/- p.m for previous agreement)
(c). CA for all categories of employees is given by - Rs. 50/- p.m (Rs.
25/- p.m for previous agreement).
(d). WA for all categories of employees is given by - Rs. 40/- p.m(Rs.
20/- p.m for previous agreement).
(e). VDA for all categories of employees is given by - Rs. 2452/- p.m (Rs. 2071/- p.m for
previous agreement).
(f). Services weightage increments for all senior employees who have
required service period is given as follows.
One increment for on completion of 10 years service.
Two increments for on completion of 20 years service.
Three increments for on completion of 30 years service.

47

completed the

WAGE FITMENT:
Specimen copy of the fitment of workmen in his respective pay scale profile:
Employee code:
Employee name:
Designation:
Grade:
Date of joining:
Existing pay scale:
Revised pay scale:
Fitment:
Pre-revised basic as on date Increase basic
Annual increment
Weightage increment if any
FA
VDA
HRA
CA
WA
EA
Total gross salary

THEORETICAL PERSPECTIVE OF WAGE AND

SALARY ADMINISTRATION
48

One of the most important areas of Human Resources Management is Compensation

Management. The soundness of Compensation Management depends upon the amount of
Wage and Salary paid to an Employee for a fair days work. Despite the conclusions of morale
studies wage or salary is significant to most of the employees as it constitutes a major share
of their income pay in one form or another is certainly one of the main springs of physical
needs. It provides recognition a sense of accomplishment and determines social status. Hence
formulation and administration of sound remuneration policy to attract and retain right
personnel in right position is the prime responsibility of any organization.
Wage And salary Administration is essentially the application of a systematic
approach to the problem of ensuring that employees are paid in a logical, equitable and fair
manner.

Wage:
Wage and Salary are often discussed in loose sense, as they are used interchangeably.
But ILO defined the term wage as the remuneration paid by, the employer for the services of
hourly, daily, weekly and fortnightly employees. It also means that remuneration paid to
production and maintenance or blue collar employees.

Salary:
The term salary is defined as the remuneration paid to all clerical and managerial
personnel employed on monthly or annual basis. The direct compensation paid to an
employee compensating his services to an organization. Salary is also known as basic pay.

Earnings:
Earnings are the total amount of remuneration received by an employee during a
given period. These include salary (pay), dearness allowance; house rent allowance, city
compensatory allowance, other allowances, overtime payments etc.

Nominal wage:
It is the wage paid or received in monetary terms. It is also known as money wage.
49

Real Wage:
Real wage is the amount of wage arrived after discounting Nominal Wage by the
living cost. It represents the Purchasing Power of Money Wage.

Take Home Salary:

It is the amount of salary left to the employee after making authorized deductions like
contribution to the provident fund, life insurance premium, income tax charges, and other
charges.

Minimum Wage:
It is the amount of remuneration, which could meet the normal needs of the average
employee regarding as a human being living in a civilized society.
It is defined as the amount of remuneration, which may be sufficient to enable a
worker to live in reasonable comfort, having regard to all obligations to which an average
worker would ordinarily be subjected to.

Statutory Minimum Wages:

It is the amount of remuneration fixed according to the provisions of the Minimum
Wages Act, 1948.

The Need-Based Minimum Wage:

It is the amount of remuneration fixed on the basis of norms accepted at the

15 th

session of the Indian Labor Conference held at New Delhi in July 1957. The Conference
recommended that minimum wages should ensure the minimum human needs of industrial
workers. The norms laid down by it are:

In calculating the minimum wage, the standard working class family should be taken
to comprise 3 consumption units for 1 earner, the earnings of women, children and
adolescents being disregarded.

Minimum food requirements should be calculated on the basis of a set in takes of

calories as recommended by Dr. Aykroyd for an average Indian adult of moderate
activity.

50

Clothing requirements should be estimated on the basis of per capita consumption of

18 yards per annum, which would give for the average workers family of four a total
of 72 yards.

In respect of housing, the rent corresponding to the minimum area provided for under
Government Industrial Housing Scheme should be taken into consideration in fixing
the minimum wage.

Fuel, lighting and other miscellaneous items of expenditure should constitute 20

percent of total minimum wage.

The Living Wage:

According to the committee on fair wages, the living wage is the highest amount of
remuneration and naturally it would include the amenities which a citizen living in a modern
civilized society is entitled to expect, when the economy of the country is sufficiently
advanced and the employer is able to meet the expanding aspirations of his workers.

The Fair Wage:

Fair wages are equal to that received by workers performing work of equal skill,
difficulty or unpleasantness.

Incentive Wage:
This is the amount of remuneration paid to a worker over and above the normal wage
as an incentive for employees contribution to the increased production or saving in time or
material.

Wage Rate:
It is the amount of remuneration for a unit of time excluding incentives, overtime
pay, etc.

Standard Wage Rate:

51

It is the amount of wage fixed for a unit of time fixed on the basis of job evaluation
standards.

Rewards:
An incentive or a reward can be anything that attracts the workers attention and
stimulates him to work. Rewards are of two types:

Intrinsic
Satisfaction that the employees get from the job itself such as pride in ones work,
having a feel of job accomplishment, job enrichment, being a member of a team.

Extrinsic
External to the job and comes from the management namely wage / salary, fringe
benefits, welfare measures, promotions, incentives etc.

Financial Vs. Non-Financial Rewards:

Rewards are two types viz., financial rewards and non-financial rewards.

Financial
Wages/Salaries, allowances, incentive payments, bonuses, profit sharing etc.

Non-Financial
Canteen facilities, Conveyance facilities, Medical care, paid vacations, paid sick leave
etc.

Performance based Vs. Membership based Rewards:

The rewards that the organization allocates are based on either performance criteria or
membership criteria.

Performance based
52

Performance based rewards are exemplified by the use of Commissions, incentive

pay, piece work; pay plans, Group bonuses etc.

Membership based
Membership rewards are allocated to all employees as they are the employees of the
organization. These include basic salary or pay, dearness allowance based on the cost of
living index; house rent allowance, city compensatory allowance etc.

Fringe Benefits:
Fringe benefits refer to various extra benefits provided to the employees, in addition
to the compensation paid in the form of wage / salary. These include employee benefits like

Provident fund

Gratuity

Medical care

Hospitalization

Accident relief

Health and Group insurance

Canteen

Perquisites:
These are allowed to the executives and to retain competent executives.

Company car

Club membership

Paid holidays

Furnished house

Stock option schemes.

53

Objectives of Wage and Salary Management:

To establish a fair and equitable remuneration: There should be internal
and external equity in remuneration paid to employees. Internal equity means similar
pay for similar work. External equity implies pay for a job should be equal to pay for
a similar job in other organizations.

To attract competent personnel: A sound wage and salary administration helps

to attract qualified and hardworking people by ensuring an adequate payment for all
jobs.

To retain present employees: By paying at competitive levels, the company can

retain its personnel; it can minimize the incidence of quitting and increase employee
loyalty.

To improve productivity: Sound wage and salary administration helps to

improve the motivation and morale of employees which in turn lead to higher
productivity.

To

control costs: Through sound wage and salary administration labour and

administrative costs can be kept in line with the ability of the company to pay. It
facilitates administration and control of pay roll.

To improve Union management relations: Wages and salaries based on

systematic analysis of jobs and prevailing levels are more acceptable to trade unions.
Therefore, Sound wage and salary administration simplifies collective bargaining and
negotiations over pay. It reduces grievances arising out of wage inequities.

To improve public image of the company : Wage, Salary administration

program also seeks to project the image of a progressive employer and to company
with legal requirements relating to wage and salary administration.

54

Principles of Wage and Salary Administration:

There are several principles of wage and salary plans, policies and practices. The
important among them are:

Wage and salary plans and policies should be sufficiently flexible or responsive to
changes in internal and external conditions of the organization.

Wage and salary administration plans must always be consistent with overall
organizational plans and programs.

Wage and salary administration plans and programs should be in conformity with the
social and economic objectives of the country like attainment of equality in income
distribution and controlling inflationary trends.

Management should ensure that employees know and understand the wage policy of
the company. Workers should be associated in formulation and implementation of
wage policy.

All wage and salary decisions should be checked against the standards set in advance
in the wage policy.

Wage and salary plans should simplify and expedite other administrative processes.

Factors affecting wages:

1. Demand for and supply of labor: Wage or salary is the price for the services
rendered by a worker. Forces of demand and supply of labor determine the going
wage rate. When there is no dearth of labor (as in India) wages tend to be low. On the
other hand, executive salaries have increased in India after liberalization due to rise in
demand for professionally trained managers.

2. Ability to pay: An organizational ability to pay its employees is an important

determinant of wage level. Ability to pay depends upon the profit earning capacity of
55

the enterprise. Multinational corporations pay relatively higher salaries due to their
higher paying capacity.

3. Labor unions: well-organized trade unions exert pressure for higher wages and
allowances. This pressure is exercised through collective bargaining, strikes and other
methods. Salary levels in commercial banks are high due to higher bargaining power
of bank unions.

4. Cost of Living: Due to inflation, the real wages decline affecting the purchasing
power of workers. Therefore a dearness allowance is given according to the consumer
price index. Labor arrangements generally have a clause providing for automatic
increase in pay as cost of living rises.

5. Prevailing wage rates: While fixing wages, prevailing wages in the particular
industry / region are taken into account. This is necessary to retain and attract
qualified workers.

6. Job requirements: Basic wage largely depends upon the difficulty level and
physical and mental effort required in a particular job.

7. Productivity: There is an increasing trend towards linking wage increases to gains

in productivity or performance of workers. In some concerns annual increment in
wages is based on merit. While in other companies pay increase every year without
any relation to the performance of a worker.

8. State regulation: wage policy and law of the Govt. exercise a significant influence
on Wage levels. Government has enacted laws to protect the interests of the working
class. No organization can violate laws relating to minimum wages, payment of
bonus, dearness allowances and other allowances, equal pay for equal work.

56

Wage Theories:
There are a number of theories on wages. Important among them are discussed here
under:

The Just Wage Theory: This was the first theory on wages advocated during
medieval period. The essence of this theory is that the worker should be paid on the
level of maintaining himself and his family.

Subsistence Theory: According to Ricardo the laborers are paid to enable them
to subsist and perpetuate the race without increase or diminution.

Standard Of Living Theory: Karl Marx pointed out that the Wage of labor is
determined by a traditional standard of living, which, in turn, is determined by the
mode of production of the country concerned.

The Wage Fund Theory: According to J.S Mill, the wages are determined on
the basis of the relationship between the amount of fund allocated for the purpose of
usage payment and number of workers in a country.
Amount of fund allocated for wage payment
WAGE =
Number of workers

Residual Claimant Theory: According to Walker, the wages are determined on

the basis of the amount left after the payment of rent, profits and interest to land,
entrepreneur and capital respectively out of the production value.
The Amount of Wages = Production (Rent + Profits + Interest).

Marginal Productivity Theory: According to J.B. Clark, the wages are

determined on the basis of marginal contributions of the worker to the production.
The employer stops employing further workers where the contributions of the most
recently employed worker are equal to his wages.

57

The Bargaining Theory of Wages: According to this theory the wages and
other terms of employment are determined on the basis of the relative bargaining

strength of the 2 parties, viz., the employer and the employees. Webbs stated that,
the haggling of the market which under a system of free competition and individual
bargaining determines the conditions of employment.

Contribution of Behavioral Scientists to the Wage Theories: According

to behavioral scientists, wages are determined on the basis of several factors like the
size, nature, prestige of the organization, and strength of the union, social norms,
Traditions, customs, prestige of certain jobs in terms of authority, responsibility and
status, level of job satisfaction, morale, desired lines of employee behavioral and level
of performance.
Thus, the first five wage theories influenced the wage determination until 19 th century.
But the influence of these theories had been reduced to a greater extent during the 20 th
century. The bargaining theory of wages and the behavioral theory of wages influence
much the determination during the present century. The modern and important system
of salary administration is job evaluation.

WAGE FIXATION INSTITUTES IN INDIA

Collective bargaining and Adjudication
Collective bargaining is procedure in which Compromise is reached through
balancing of opposed strengths. It is a means through which employee prol-leiw, relating to
various issues including wages are settled, if these problems are settled through CB they may
be settled through voluntary arbitration or adjudication.

Wage Board:
Government of India sets up tripartite wage board on industry wise basis to fix and
revise pay. The boards are set up on ad-hoc basis on the demand of trade unions and
employees as there is no low providing for their establishments.

58

A wage board consists of an impartial Chairman, two independent members and 2 or

3 representatives of workers each. The recommendation of wage boards is first submitted to
the government. Government may accept, modify or reject the recommendation.
While determining wages, wage boards take in to accounts the following factors:
a)

Need based minimum wages.

b)

Industries capacity to pay.

c)

Productivity of labor.

d)

Prevailing rates of wages.

e)

Various wage legislation.

f)

Level of income and its distribution.

g)

Place of the industry in the economy.

h)

Needs of industry in a developing economy.

i)

Requirements of social justice.

j)

Need to provide incentive for improving productivity.

Pay Commission
This

is

another

institution

which

fixes

and

revises

the

wages

and

allowances to the employees working in the government and government departments. Pay
Commissions are separately constituted by Central, and State Governments. Central
Government so far has appointed five pay commissions.

The process of wage determination:

The wage determination process consists of the following steps
1. Job Analysis: First of all, the contest and requirements of a job are analyzed. The
data collected through job analysis is used to prepare job description and job
specification. On the basis of these statements standards of job performance are laid
down.

59

2. Job Evaluation: The relative value for every job is determined through job
evaluation. The relative job value is then converted into money value so as to fix basic
wage for the job.
3. Wage Survey: wage or salary surveys are conducted to find out wage /salary levels
prevailing in the region or industry for similar jobs. Other organizational problems
such as recruitment, policy, fringe benefits, etc., are also considered.
4. Developed wage system: On the basis of foregoing steps an equitable wage
structure is prepared. While determining such a structure several points need to be
considered:

Legislation relating to wages.

Payments equal to more or less then prevailing wage rates.

Number and width of pay grades.

Jobs to be placed in each pay grade.

Provision for merit increases.

Differentials between pay plans.

5. Wage Administration rules: Rules are required to determine the degree to which
advance will be based on length of service rather than merit. The frequency with
which pay increments will be awarded, the rules that will govern promotions from one
pay grade to another and the way control over wage /salary costs can be maintained.
Once the rules, are framed these should be communicated to employees.

6. Employee Appraisal:In order to reward men: performance is necessary to evaluate

the performance of the individual employees. Some differentials in pay are
maintained on the basis of employees performance. This is necessary to provide
incentive for hard work and superior performance is evaluated against predetermined
standards of performance.

60

Need for Sound Salary Administration:

Management has to formulate and administer the salary policies on sound lines as:

Most of the employees satisfaction and work performance are based on pay.

Internal inequalities in pay are more serious to certain employees.

Employees compare their pay with that of others.

Employees act only to gross external inequalities.

Employee comparisons of pay are uninfluenced by levels of aspirations and pay

history.

Employees compare the pay of different employees with their skill, knowledge,
performance, etc.

Evaluating the unsatisfied wants and unreached goals of the employees.

Finding out the dissatisfaction arising from unfulfilled needs and unattained goals.

Adjusting the salary levels accordingly with a view to enabling the employees to
reach unreached goals and fulfill the unfulfilled needs.

61

1. What is your opinion on employees response on their Salary?

Table:4. 1

S.No
1
2
3
4

Item of Scale
More satisfied
Satisfied
Less satisfied
Unsatisfied
Total

No of

Percentage

Respondents
46
34
25
5
110

42
31
23
4
100

Source: Primary data-Questionnaire

Graph: 1

Employees Response on their Salary

42%
More Satisfied

Satisfied

Un Satisfied

23%
31%

4%

INTERPRETATION:

62

less satisfied

The table reveals that the employees are more satisfied with their
salaries provided by the organization.

2.What is employees opinion on In Time Salary?

Table: 4.2

S.No
1
2
3
4

Item of Scale
More satisfied
Satisfied
less Unsatisfied
Un satisfied
Total

No of Respondents
58
30
16
6
110

Percentage
53
27
15
5
100

Source: Primary data-Questionnaire

Graph:2

Employees opinion on In Time Salary

5%

27%
More Satisfied

15%

Satisfied

Un Satisfied

53%

INTERPRETATION:
63

less satisfied

The above table shows that the employees are more satisfied with
in time salary.

3. What is the employees response about Over Time Salary?

Table:4. 3

S.No
1
2
3
4

Item of Scale
Excellent
Good
Average
Poor
Total

No of Respondents
35
46
18
11
110

Percentage
32
42
16
10
100

Source: Primary data-Questionnaire

Graph:3

Employees Response about Overtime salary

10%
32%
Excellent

16%

Good

Average

Poor

41%

INTERPRETATION:
From the above table most of the employees feel good about their
over time salary.
64

4.What is the employees opinion on taking their Production Bonus?

Table: 4.4

S.No
1
2
3
4

Item of Scale
No of Respondents
More satisfied
55
Satisfied
35
Less satisfied
11
Unsatisfied
9
Total
110
Source: Primary data-Questionnaire

Percentage
50
32
10
8
100

Graph:4

Employees opinion on taking their Production Bonus

50%
More Satisfied

10%
Satisfied

Un Satisfied

less satisfied

8%

32%

INTERPRETATION:
The above table reveals that the employees opinion on Bonus.
Most of the employees are more satisfied about the production bonus.
5. What is employees opinion on taking their Annual Bonus?
Table:4.5

65

S.No
1
2
3
4

Item of Scale
More satisfied
Satisfied
Unsatisfied
Less satisfied
Total

No of Respondents
52
35
8
15
110

Percentage
47
32
7
14
100

Source: Primary data-Questionnaire

Graph:5

Employees opinion on taking their Annual Bonus

47%
More Satisfied

14%Satisfied

Un Satisfied

less satisfied

7%
32%

INTERPRETATION:
From the above table most of the employees in the organization are
most satisfied with their annual bonus.
6. What is the employees response on Incentives?
Table:4.6

S.No
1
2

Item of Scale
More satisfied
Satisfied

No of Respondents
53
35
66

Percentage
48
32

3
4

Unsatisfied
Less satisfied
Total

10
12
110

9
11
100

Source: Primary data-Questionnaire

Graph: 6

Employees response on Incentives

11%
More Satisfied

9%Satisfied

48%
Un Satisfied

less satisfied

32%

INTERPRETATION:
From the above table majority of the employees are satisfied with
their incentives.
7. What is the respondents response on Rewards?
67

Table:4.7

S.No
1
2
3
4

Item of Scale
Excellent
Good
Average
Poor
Total

No of Respondents
27
59
16
8
110

Percentage
25
54
14
7
100

Source: Primary data-Questionnaire

Graph: 7

Respondents response on Rewards

7%
Excellent

25%

14%Good

Average

Poor

54%

INTERPRETATION:

From the above table 54% of the employees feel good with rewards
provided by the organization.

8. What is the employees opinion on Increments?

Table:4.8

S.No
1

Item of Scale
Excellent

No of Respondents
51
68

Percentage
46

2
3
4

Good
Average
Poor
Total

38
11
10
110

35
10
9
100

Source: Primary data-Questionnaire

Graph:8

Employees opinion on Increments

35%
excellent

10%

good

average

poor

9%

46%

INTERPRETATION:
Employees feel their excellence in increments provided by the
organization.
9. What was the employees opinion on House Hent Allowances?
Table: 4.9

S.No
1
2

Item of Scale
Excellent
Good

No of Respondents
27
59
69

Percentage
25
54

3
4

Average
Poor
Total
Source: Primary data-Questionnaire

17
7
110

15
6
100

Graph:9

Employees opinion on House Rent Allowances(HRA)

6%
Excellent

25%

15%

Good

Average

Poor

54%

INTERPRETATION:
Employees are satisfied with house rent allowances provided by
the organization.

10. What is the employees opinion on Dearness Allowances?

Table:4.10

S.No
1
2
3
4

Item of Scale
Excellent
Good
Average
Poor
Total

No of Respondents
51
37
22
110
70

Percentage
46
34
20
100

Source: Primary data-Questionnaire

Graph: 10

Employees opinion on Dearness Allowances

34%
Excellent

20%

Good

Average

Poor

46%

INTERPRETATION:
Employees feel excellent about dearness allowances provided by
the organization.
11.What is the employees opinion about Fringe Benefits?
Table:4. 11

S.No
1
2
3
4

Item of Scale
Very Good
good
Bad
No comment
Total

No of Respondents
45
32
21
21
110

Source: Primary data-Questionnaire

71

Percentage
41
29
19
11
100

Graph: 11

Employees opinion about Fringe Benefits

41%
Good

Bad

No comment

very good

11%
29%
19%

INTERPRETATION:
The employees are very much satisfied with the fringe benefits in the
organization.

12.What is the employees opinion about Perquisites?

Table: 4.12

S.No
1
2
3
4

Item of Scale
Very Good
Good
bad
No comment
Total

No of Respondents
11
18
46
43
110

Source: Primary data-Questionnaire

Graph:12

72

Percentage
10
16
42
40
100

Employees opinion about Perquisites

34%
Good

Bad

11%

No comment

very good

11%

45%

INTERPRETATION:
The employees are dissatisfied with the perquisites provided in the
organization.

13. What is the employees opinion on Promotion?

Table:4. 13

S.No
1
2
3
4

Item of Scale
Excellent
Good
Average
Poor
Total

No of Respondents
12
21
61
17
110

Source: Primary data-Questionnaire

Graph:13

73

Percentage
11
19
55
15
100

Employees opinion on Promotions

Good
11%

Excellent

15%

Average

19%

Poor

55%

INTERPRETATION:
There is a poor promotion activity in this organization.

14. What was the employees opinion about Provident Fund?

Table:4.14

S.No
1
2
3
4

Item of Scale
Excellent
Good
Average
Poor
Total

No of Respondents
59
25
18
8
110

Source: Primary data-Questionnaire

Graph: 14

74

Percentage
54
23
16
7
100

Employees opinion about Provident Fund

16%
Excellent

23%Good

7%
Bad

Poor

54%

INTERPRETATION:
From the above table it shows that 54% employees feel excellent t
about provident fund in their organization.

15.What is the employees opinion about ESI?

Table: 4.15

S.No
1
2
3
4

Item of Scale
Very Good
Bad
No comment
good
Total

No of Respondents
63
10
6
31
110

Source: Primary data-Questionnaire

Graph: 15

75

Percentage
58
9
5
28
100

Employees opinion about ESI

58%
Good

Bad

No comment

very good

28%
5%

9%

INTERPRETATION:
From the above table we can say 58% employees feel very good
about ESI.
16.What is the employee opinion satisfaction about Job?
Table:4. 16

S.No
1
2
3
4

Item of Scale
Excellent
Good
Average
Poor
Total

No of Respondents
23
68
19
110

Source: Primary data-Questionnaire

Graph:16

76

Percentage
21
62
17
100

Employee satisfaction about Job

21%

17%
Excellent

Good

Average

Poor

62%

INTERPRETATION:
As 62% employees get job satisfaction in their organization.
17.What is the employees opinion on relationship with
Management?
Table: 4.17

S.No
1
2
3
4

Item of Scale
Excellent
Good
Average
Poor
Total

No of Respondents
15
49
38
8
110

Source: Primary data-Questionnaire

Graph: 17

77

Percentage
14
45
34
7
100

Employees opinion on Relationship with Management

34%
Excellent

7%

Good

Average

14%

Poor

45%

INTERPRETATION:
The table shows that there is a good relation between management
and employees.

FINDINGS
The following are the findings:

The Jeypore Sugar Co Ltd. is paid wage and salary according to the wage board.

The Jeypore Sugar Co Ltd. Management must ensure that the employees know and
understand about the wage agreement.

Half of the respondents are satisfied with the receiving the bonus.

It is observed that majority (98%) of the employees are very much satisfied with the
salary that they are receiving.

Majority (83%) of the employees opined that their job is good, 17% however said that it
is average.
78

It is found that, majority (74%) of the employees are feeling good about the overtime
salary. While, 16% of employees felt that it is average, 10% however felt that it is poor.

Majority (79%) of the employees are feeling good about the house rent allowances that
are provided by the company.

Majority (87%) of the employees have the more satisfaction regarding the incentives that
are provided by the company.

It is observed that majority (81%) of the employees opined that the increments given are
good.

All the employees are very much satisfied with the payment of the salaries in time.

Majority (70%) of the employees stated that the promotion policy of the company is
average. Whereas, 30% of the employees opined that the promotion policy is good.

79

SUGGESTIONS

The Management of the Jeypore sugar co.ltd must inform to the workers that how much
percentage to cut their salary under the PF.

The management of the Jeypore sugar co.ltd should ask the opinion of the employees,
before the implementation of the wage agreement.

The management of the Jeypore Sugar Co Ltd. Should settle the wage settlement within
five days after the month.

The management of the Jeypore Sugar Co Ltd. should increase the payment for workers
who have taken their VRS.( Voluntary Retirement Scheme )

80

SUMMARY
The Human Resource Department of an organization is very much significant in
establishing itself as a brand. The past one year has seen an increasing number of companies
focus on creating a unique HR brand for their organization. The scope of Human Resource
management is very large and expanded the scope of HR function into the areas as personnel
aspect, welfare aspect and individual relations aspect.
Human Resource management is now regarded as a must for the successful running
of a business or industrial enterprise. HRM helps management at enterprise level, industrial
level and at societal level.
The basic purpose of wage and salary administration is to establish and maintain an
equitable wage and salary structure and maintenance of an equitable labor cost structure. So
that satisfaction of employees and employers is maximized and conflicts minimized.
The wage and salary administration concerned with the financial aspects of needs.
The needs of the employees so that reward can be individually designed to satisfy some need.
Before they do anything, they look for a reward (or) pay-off. The reward may be money (or)
promotion, but more likely it will be some pay-off a smile acceptance by a peer, receipt of
information, as kind word of recognition etc.
According to Beach, Wage and Salary Programmes have four major purposes

To recruit persons for a firm.

To Control Pay roll Costs.

To satisfy people, to reduce the incidence of quitting, grievances and fractions over
pay.

To motive people to perform better.

The study has been taken up with the following objectives: To know about the Wage

and Salary administration of the Jeypore Sugar Co Ltd., Chagallu. To know about the
different types of allowances in the Jeypore Sugar Co Ltd., Chagallu. To study about the
employees Pay structure in the company. To assess the employees perception about the Wage
81

and Salary structure of the company. To identify problems, if any, in the Wage and Salary
administration of the company and to make suggestions.
The data for the study have been collected from primary and secondary sources. As
part of primary data, a survey has been conducted on the employees of Jeypore Sugar
Company limited. A sample of 110 respondents has been selected on the basis of convenience
and a structured questionnaire has been administered to them. The responses have tabulated
and analyzed with the help of percentages. The secondary data are collected from text books,
magazines, company records and websites.
Sugar Industry is very important to the Indian National economy, because of its
multiple contributions in the shape of employment and provision of raw materials to other
industries.
Sugar is made by some plants to store energy that they don't need straight away, rather
like animals make fat. People like sugar for its sweetness and its energy so some of these
plants are grown commercially to extract the sugar.
The Jeypore Sugar Company Limited was incorporate as a public limited company on 29th
July 1936 under the Indian Companies
Act, 1913 and was the first Company to be registered in the newly formed province of
Orissa.
In the course of expansion of the company, a separate Sugar Unit was established at
Nagaram in Guntur district, Andhra Pradesh in 1958. Due to non availability of sugar cane,
The Unit was shifted to Chagallu, West Godavari District, in Andhra Pradesh in 1961, with an
installed capacity of 850 TCD and having licensed capacity of 1250 TCD. At present, the
companys installed capacity and crushed capacity is at about 8500 TCD.The founder of the
organization is late Sri. Velgapudi Rama Krishna. He was born on March 4 th, 1896 in the
village of Bellamvaripalem in Guntur Dist.
The Management of Jeypore Sugar Company has designed a well structured Wage
and Salary system. In the organization the salaries are paid at three levels namely salaries to
non managers including permanent and seasonal employees, salaries to executives and
salaries to management staff.

82

BIBLIOGRAPHY
S.NO

AUTHOR NAME BOOK NAME

PUBLISHER

C.B.Memoria

Personnel

Himalaya

management

publication

Research

K.K.Guptha

C.R.Kothari

methodology
3
4

K.Aswathappa

techniques
Human
resource Tata

P.C.Tripati

management
Personal
management

and

P.Subbarao

megraw

Hill companies
Ulthanchand
and and son

industrial relations.
Essentials of the Tata

megraw

Human Resssoource Hill companies

management

And

Industrial
Relations.
Library, journals and personnel department of Jeypore Sugar Co ltd.

WEBSITES: www.worldsugar.com,www.Indiasugar.com

QUESTIONNAIRE
83

TOPIC: WAGE & SALARY ADMINISTRATION

PATTERN: A STUDY WITH REFERENCE TO JEYPORE SUGAR CO LTD...
Employee Name:
Employee Code:
Designation:
Department:
Grade:
Date of joining:
1) What is your opinion on receiving Salary?
a) Satisfied
c) Less satisfied

b) more satisfied
d) unsatisfied

2) What is your opinion on In Time Salary?

a) Satisfied
c) Less satisfied

b) more satisfied
d) unsatisfied

3) What is your opinion about over Time Salary?

a) Excellent
c) Average

b) good
d) poor.

4) What is your opinion on taking Production Bonus?

a) Satisfied
c) Less satisfied

b) more satisfied
d) unsatisfied

5) What is your opinion on receiving Annual Bonus?

a) Satisfied

b) more satisfied
84

c) Less satisfied

d) unsatisfied

6) What is your opinion on Incentives?

a) Satisfied

b) more satisfied

c) Less satisfied

d) unsatisfied

7) What is your opinion on Rewards?

a) Excellent

b) good

c) Average

d) poor

8) What is your opinion on Increments?

a) Excellent

b) good

c) Average

d) poor

9) What is your opinion on HRA?

a) Excellent

b) good

c) Average

d) poor

10) What is your opinion on the Dearness Allowances?

a) Excellent

b) good

c) Average

d) poor

11) What is your opinion on Fringe Benefits?

a) Very good

b) good

c) Bad

d) no comment

12) What is your opinion on Perquisites?

a) Very good

b) good

c) Bad

d) no comment

13) What is opinion on promotions?

a) Excellent

b) good

85

c) Average

d) poor

14) What is your opinion Provident Fund?

a) Excellent

b) good

c) Average

d) poor

15) What is your opinion on ESI?

a) Very good

b) good

c) Bad

d) no comment

16) What is the employee opinion satisfaction about Job?

a) Excellent

b) good

c) Average

d) poor

17) What is your opinion on relationship with Management?

a) Excellent

b) good

c) Average

d) poor

86