PROJECT REPORT SYNOPSIS

Name :- Sudipta Bhattacharyya

Registration Number :- 520919221

Name of the Programme :- Post Graduate Diploma in Management

Address of the correspondence: -

Title of the Project :- Compensation Package of

. Farinni Leather Pvt.Ltd ( Export House)

Name of the Project Guide :-

Designation and Address :-

 WORKING TITLE

Compensation Package of Farinni Leather Pvt. Ltd

( Export House)

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 COMPANY PROFILE

Farinni Leather Pvt.Ltd India, with its three decades of vast experience has gained recognition
as an Outstanding Leather Manufacturing Export House. Farinni Leather has come a long
way and is today recognized by the Government of India as one of the leading manufacturers
and exporters of leather goods. markets in Europe, USA, Canada, Australia and Our products
are available in Cow, Calf, Sheep, Goat and Buffalo skin in a variety of specification ranging
from drum dyed, vegetable tanned and aniline and fine soft nappa. Our products are also
available in leather imported from South America, Italy and France. We cater to New Zealand
and having worked with many reputed brands over the years, we understand the attention to
detail and care required to make a quality product with personal touch. Our core value
consists of providing honest, reliable solutions to our clients.

Formed in 1988, by Shri Kashi Prasad Kheria and his son Shri Suresh Kumar Kheria, the
company today is a leading manufacturers and exporters in eastern India.

The Company is regularly exporting to Germany, Switzerland, Austria, U.K., Australia,

U.S.A and Canada. Most of the departmental stores in Germany are our clients and in U.K
also you will find our products in most of the departmental stores supplied through our
contacts.

Products / Services :

Manufacturers and Designer and exporter of leather goods like Ladies hand bags, mens bags,

Port folio, Travel Bag, Back pack, Wallets and others small leather accessories.

PURPOSE OF THE RESEARCH

Compensation is a key factor in attracting and keeping the best employees and ensuring that
our organization has the competitive edge in an increasingly competitive world.

The Compensation Management component enables us to differentiate between our

remuneration strategies and those of our competitors while still allowing flexibility, control
and cost effectiveness.

It provides a toolset for strategic remuneration planning that reflects our organization culture
and pay strategies, and it empowers line managers within a framework of flexible budget
control.

Compensation Management allows us to control bottom-line expenditures and offer

competitive and motivating remuneration, be it fixed pay, variable pay, stock options, merit
increases, or promotion – in other words, total compensation

In brief, we can use the Compensation Management component to:

• Create centralized and decentralized budgets

• Plan and administer compensation awards at the manager level
• Plan and administer compensation awards within budget
• Perform job pricing
• Define pay grades and salary structures to identify the internal value of jobs and
positions in our organization

This project report covers the definition and meaning of Compensation Management.
It elucidates the benefits and drawbacks of the traditional methods as well as recent
advances in the field of compensation Management.

AIM
To analyze the present situation followed in the organization regarding compensation
package, Employees in exchange of their work , generally expect some appreciation.
Money is considered the most important motivation for employees, though non-
financial incentives work efficiently. The goals of compensation management are to
design the lowest cost pay structure that will attract, motivate and retain competent
employees.

Compensation is what employees receive in exchange for their contribution to the

organization. Compensation management helps the organization obtain, maintain and
retain a productive workforce.

OBJECTIVES
1. Types of staff/workmen employed, their skill sets and their
expectations as against salaries/wages offered in our neighboring
units at Farinni.

2. To look on the Size of the organization, its organization structure

and volume of transactions the compensation package of Farinni
must more attractive.

3. The customer base, customer’s expectations and the seasonal

influx due to factors like vacations, monsoon, festivals, holidays,
changing habits of tourists etc.

4. Employee turnover in the organization.

5. To measure the efficiency of the current policies and procedures

in the organization.

6. The Compensation review periods have become annual generally

and sometimes oftener, in the fast changing market situation
for the organization.

7. To identify whether there is any problem present within the

current system.

8. To design and recommend some new concepts for procurement

for the organization.

KEY QUESTIONS/RESEARCH QUESTIONS

1. What are the cultural issues or beliefs related related to compensation in the
Company like Farinni Leather Pvt. Ltd.?

2. What is the eligibility requirement for vacation in the employees?

3. Is there a cap to limit the amount of vacation accrued by the employee?

4. How is unused accrued vacation treated in the organization ?

5. How is employee communication regarding compensation and benefits

delivered in the organization like Farinni?

6. What are the eligibility requirements for health insurance and other benefits of
the employees ?

7. Are dependents of employee covered , and if so, in part or in full ?

METHODOLOGY
To determine the compensation package of the organization , most of the firms
depend on wage and salary surveys and this basis we collect the data by the different
source . We collect the both primary and secondary data with a sample size of
approximately 24(both executives and workers) through cluster sampling is
conducted.
Stage 1: Secondary data :-
A comprehensive review of the old records of the company , department of labour,
Labour market etc. These surveys discovers what others employees in the same labour
market are paying for specific key jobs. We know the labour market is the area from
which the employer recruits. Generally, it is the area within commuting distance from
the employer .
Stage2: Primary Data :-
In this stage a face-to-face contact with the managers and executives has been
conducted. Questionnaires were supplied to some and some were filled up by direct
interview. In this way the information regarding Compensation policy and procedures
will be obtained. Sample of firms from the labour market are selected, and they are
connected by phone or mail to learn what they are paying for the key jobs.
Stage3: Evaluation of the organization’s present system of
Organization Development (Secondary Data)
This stage will bring together and review the information collected in the previous
stages in which the present procedure for Compensation policy and procedures has to
be studied.
Stage4: Analysis
The collected data has been analyzed using graphical and statistical tools like pie
charts and column charts.
Stage5: Findings and conclusions
Based on analysis of primary and secondary data recommendations and conclusions
were made.

PROPOSED CONTENTS
Chapter1. Introduction

Chapter 2. Company Profile

Chapter 3. Compensation Management procedure — Concepts

Chapter 4. Implementation at the Farinni Leather pvt.ltd.

Chapter 5. Analysis and Presentation of Data

Chapter 6. Conclusions

Chapter 7. Limitations

Chapter 8. Bibliography

Chapter 9. Appendices
 QUESTIONNAIRES
[FOR Employee]

Name:- How long you are at Farinni :-

Designation:- C.T.C.:-

1. What according to you are the top five HR challenges faced by your
organization?

2. What are the cultural issues or beliefs related to compensation package in your
organization ?

3. What is the package for various grades or levels?

4. What are the factors used to determine the pay?

• Competitors benchmarking
• Inflation
• WPI (wholesale price index)
• Salary survey
• Any other(please specify)

5. What is the likely increase for this year? If increment has been done how much is
the increase?

6. What is the eligibility requirement for vacation in your organization?

7. Is there a formal compensation program conducted in your organisation?

8. How are wages set ?

9.Are dependents covered to your company , if so, how ?

10. What holidays are paid and who is eligible for them?

11. Can employees contribute anything in the compensation package?

 QUESTIONNAIRES
[FOR DIRECTOR]

1. Who is your organization ( what position ) administers the compensation program?

CEO
Manager HRD/Functional heads
Advisory Board
Others [Please Mention]:-

2. Is there a bonus system , and if so how it structured ?

3. Are any salary surveys used ? If so , which ones ?

4. Please mention if you have outsourced any of the HR activities in your company?

Yes
No

5. How frequently are jobs re-evaluated or updated ?

6. Do you consider the competitors pay package while determining the package for
your employees?

7. Describe the health insurance program provided by your organization?

8. How do you determine the pay at the departmental level?

9. What are the criteria of the salary increase?

10. What is your employee reward and recognisition policy?

11. How often is the salary revised?

12. What is the likely increase for this year? If increment has been done how much is
the increase?

13. What are the other benefits given to your employees?

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