1.

1 INTRODUCTION OF THE STUDY

Compensation is an important matter, which needs to be considered because it

directly or indirectly affects effectiveness and competitiveness of a business as well as
the well-being of employees. It is a significant instrument for employers in affecting
employee attitudes such as perceptions of fairness and employee behaviour including
whether an employee is attracted to and remains with the employer and how employees
effectively utilise their time at work. It has a major effort on employees ‘values of living
and communicates to them the degree to which the employer values their contribution.
The compensation and benefits processes introduce the transparency into Human
Resources and rewarding for the achieved performance.
The compensation and benefits provides the managers with the compensation tools to
build a difference among employees as the high performance corporate culture can be
built in the organisation. The compensation and benefits department monitors the
external job market and optimizes the personnel expenses budget of the organisation.
The compensation and benefits defines the compensation strategy, sets the
extraordinary payments, bonus schemes applied in the organisation and introduces
general other compensation policies like the Relocation Policy, Short-Term
Assignment Policies, Benefits Car Policies and other.

DEFINITION OF COMPENSATION:
According to (Chhabra, 2001) Compensation is the combination of monetary and non-
monetary rewards provided to employees for offering the services to the organization.
It is given in the shape of wages, salaries and employee benefits like paid vacations,
insurance, maternity leave, free traveling facility, retirement benefits, etc. He says that
the terminology 'wage' is used to represent payment to workers doing manual or
physical work. So, wages are provided to facilitate the unskilled workers for their
services to the organization. Wages can be given on hourly, daily, weekly or on monthly
bases. On the other side, According to (Chhabra, 2001) the term 'salary' is normally
used to mean compensation to employee of the office, foremen, managers,
professionals and technical staff. Salary is basically provided on weekly, monthly or
yearly basis. The duration for which salaries are given is basically higher than wage
payments. He furthermore added that salary is always based on the time spent on the

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job, whiles wages are either based on the number of units produced or the time spent
on the job.
According to Byars and Rue, “Compensation refers to all the extrinsic rewards that
employee receive in exchange for their work. It is composed of the base wage or salary,
any incentives or bonuses, and any benefits”.
According to Milkovich, “Compensation refers to all forms of financial returns,
tangible service, and benefits employees receive as part of an employment
relationship”.

COMPONENT OF COMPENSATION
1. Base Salary: The base salary represents the fixed and regular compensation that
forms the cornerstone of an employee's income. It is a stable foundation reflecting the
organization's acknowledgement of an employee's skills, experience, and overall
contribution. The base salary provides financial security and stability to employees and
is a crucial factor in attracting and retaining talent.
2. Variable Pay: Variable pay includes performance bonuses, incentives, and profit-
sharing creating a link between individual or team achievements and financial rewards.
This component serves as a powerful motivator, encourages employees to strive for
excellence and contributes to establishing a performance-driven culture within the
organization. Variable pay aligns individual efforts with organizational goals.
3. Benefits: Beyond monetary compensation, benefits encompass health insurance,
retirement plans, and other perks that enhance employees' overall job satisfaction and
well-being. These non-monetary compensations play a crucial role in attracting and
retaining talent. Offering comprehensive benefits contributes to a holistic compensation
package, showcasing the organization's commitment to the welfare of its workforce.
4. Recognition and Rewards: Recognition and rewards are mechanisms for
acknowledging exceptional performance, long-term service, or special achievements
by employees. This component goes beyond financial considerations and fosters a
positive environment. Regular recognition boosts employee morale, motivation, and a
sense of belonging within the organization. It reinforces the values placed on individual
contributions.
5. Career Development Opportunities: Providing opportunities for skill development
and career advancement is a critical component of compensation. This goes beyond
immediate financial gains, demonstrating the organization's commitment to investing

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in its workforce for long-term success. Career development opportunities contribute to
employee growth, job satisfaction, and the cultivation of a skilled and motivated
workforce. It aligns individual aspirations with organizational objectives, creating a
mutually beneficial relationship Compensation refers to the payment and benefits
employees receive in exchange for their work.

TYPES OF COMPENSATION

TYPES OF COMPENSATION

DIRECT COMPENSATION INDIRECT COMPENSATION

Basic Salary Flexible Time

Rental Allowance Overtime Policy

Medical Allowance Hospitalization

Special Allowance Insurance

Bonus Retirement

Leave Travel Allowance Holiday Homes

Leave Policy

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Direct Compensation

Direct compensations are referred to as financial benefits, which are directly

related to salary and wages. Plus it is in line with the industry standards and facilitates
employees with the assurance that they are getting paid fairly. This helps the employer
not to worry about the costly loss of trained staff to a competitor. Here are the different
types of direct compensation which are provided by an employer:
Basic Salary
Basic salary is the basic or primary component of compensation mgmt. It refers to the
primary salary which an employee receives before adding any incentives, or allowance.
Also, this is the basic salary which employee gets to take home. Motley, it is 40-60%
of CTC(Cost to company).
Rental Allowance
Rental allowance in addition to the basic salary which the employer provides for
providing a safety assurance to the employees. It is given to employees who live in
rental accommodation to lower their tax rates. On the other hand, if the employee
accommodation is not rental this allowance is fully taxable.
Medical Allowance
A medical allowance is a fixed allowance that is provided to an employee regardless of
any hospital bills or anything. As the medical comes in the very basic things which
people require. So, providing these basic security increases employee retention in an
organization.
Travel Allowance
Compensation has to look for different components to develop the ideal compensation
structure for every job type. As some job includes fieldwork, organizations have to pay
bills for employees’ travel for work. However, organizations have to provide the
employee’s allowance to travel to the office and from the office.
Special Allowance
The special allowance will be different in each company, some companies grant these
allowances over the completion of some task or duty. Also, this allowance is provided
to the employee efficiency. However, in pay slips given to employees by some
companies, any number by the name of ‘special allowance’ is usually the leftover
component of the salary.

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Bonus
Bonus is an allowance which is provided to employees once a year. It is additional
money that is provided by an employer on the most auspicious event of the year. To
show support organization provides a bonus to make their employees the festival more
enjoyable and an annual addition to their salary
Note: A day of bonus is different in different countries in America bonus is given on
the new year, and in India, it is on the Hindu festival Diwali. Similarly, it is different in
Australia, the Netherlands, Greece etc.
Leave Travel Allowance
As the name itself suggests, it is an exemption for allowance/assistance received by the
employee from his employer for travelling on leave. Though it sounds simple, many
factors need to be kept in mind before planning the travel to claim an LTA exemption.
Indirect Compensation
Indirect compensations are the non-financial benefits that are given to employees for
their services. Mostly these types of compensation in compensation mgmt are used to
increase the employee’s motivation. So here are the different types of indirect
compensation in compensation management:
Overtime Policy
Overtime policy states the policy the number of overtime in a particular time, a period
which constitutes overtime policy and the overtime compensation. Since in most cases,
it includes some additional allowance in salary. But in some cases, it also states some
additional benefits like promotions, holidays, increments etc.
Hospitalization
The organization provides different benefits related to hospitals like- medical
insurance, medical bill payments, concessions in selected hospitals etc. For example,
the Indian government policy of CGHS provides free medical services for certain
problems in specific hospitals.
Insurance
Some other non-financial benefits are insurance benefits, an organization provides
different insurances like- life insurance, and medical insurance. Plus some companies
provide these facilities for employees’ families as well.

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Retirement
Another key factor in human life is planning and saving for retirement. So, to increase
employees, security organization focuses on providing retirement benefits which help
the employees to feel more secure and motivated.
Holiday Homes
Holiday homes provide benefits of accommodation while travelling. In such cases, the
organization owns some different holiday homes in different locations and provides
them to employees at a lower cost for vacation.
Flexible Times
Another non-financial benefit of compensation management is providing flexible times
to employees. Giving flexible time off to leave and coming to the office provides them
time to complete other work. As a result, they can focus on their work.
Leave Policy
In last the non-financial benefit of compensation, management is the policy of an
organization regarding taking leave from the office. As it shows how much the
organization cares about employees’ wellness.

BENEFITS OF EFFECTIVE COMPENSATION:

Attract and Retain Top Talent:
Competitive compensation packages are essential for attracting skilled candidates and
retaining existing employees, especially in a competitive job market.
Motivation and Productivity:
When employees feel fairly compensated, they are more likely to be motivated and
productive, leading to improved performance and outcomes for the organization.
Employee Satisfaction and Engagement:
Feeling valued and fairly compensated contributes to higher employee satisfaction and
engagement, fostering a more positive and collaborative work environment.
Improved Organizational Performance:
By attracting, retaining, and motivating talent, effective compensation contributes to
overall organizational performance and the achievement of business goals.

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Cost Efficiency:
While compensation is a significant expense, a well-structured system can help
optimize costs by reducing turnover and improving employee productivity, leading to
cost savings in the long run.

IMPORTANCE OF COMPENSATION

1. Attracting and Retaining Top Talent:

Competitive compensation packages are essential for attracting skilled individuals,
especially in a competitive job market.
Offering attractive benefits, such as health insurance, paid time off, and retirement
plans, can make an employer more appealing to potential employees.
Proper compensation helps retain existing employees, reducing turnover and the
associated costs of recruiting and training new hires.
2. Increasing Employee Motivation and Engagement:
Employees who feel valued and fairly compensated are more likely to be motivated to
perform well and contribute to the company's success.
Compensation can be a powerful motivator, especially when tied to performance, such
as through bonuses or commissions.
Fair compensation can also improve morale and create a more positive and engaged
workforce.
3. Boosting Productivity and Profitability:
Motivated and engaged employees are more likely to be productive, leading to
increased output and improved profitability.
A well-designed compensation system can align employee incentives with the
company's goals, fostering a culture of performance.
Effective compensation can reduce absenteeism and tardiness, further contributing to
productivity.
4. Improving Employee Satisfaction and Retention:
A fair and competitive compensation package is a key factor in employee satisfaction,
leading to a more positive work environment.
Employees who feel they are being treated fairly are more likely to be loyal to the
company and less likely to seek employment elsewhere.

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This improved satisfaction and retention contribute to a more stable and productive
workforce.
5. Staying Compliant with Regulations:
Organizations must comply with various federal and state laws regarding wages,
benefits, and other compensation practices.
Proper compensation management ensures compliance with these regulations, avoiding
legal issues and penalties.

REWARD SYSTEM
Reward is an objective way to describe the positive value an individual ascribes
to an object, behavioural act or an internal physical state. Primary rewards include those
that are necessary for the survival of species, such as food and successful aggression.
Secondary rewards can be derived from primary rewards. Money is a common type of
reward. Most of the times, organization rewards its staffs by pay increment or higher
bonus. Money is the most direct and easiest way to reward the staff and create a sense
of satisfaction.
Nowadays, companies are making many modifications on their rewards system to adopt
internal and external changes. Reward system is used as a critical tool for driving
business growth and boosting staff morale. It is important to align the right measures
and reward systems with firm’s structure and culture.
However, the reward system is not emphasized when the operational system is
designed. Finical and HR systems are prioritized in the organization. The firm needs to
be aware of the importance of the reward system and spend enough manpower and
resources to design a decent reward system.

OBJECTIVE OF REWARD SYSTEM

To design an efficient reward system, the organization needs to fully understand the
definition and meaning of reward system. It also needs to setup a clear objectives for
its reward system.
These are five key objectives that can be achieved by applying reward system.
1. Attraction and Retention:
Research shows that reward system can directly affects the job choice, career choice
and turnover rate of the organization. Organization’s that give the highest rewards tend
to attract and retain more people. This indicates that the better reward system can give

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a higher satisfaction level to employee. The higher satisfaction level will lead to a
longer length of service and reduce organizational turnover rate.
In retail industry, employees are the most important resources. The organization needs
to retain high performance employees and remove inefficient employees.
To maintain the top performers, current reward system need to be compared with other
organization’s. The firm need to ensure that its reward system is superior than its
competitors.
However, it is very costly to maintain a higher reward system. This will increase the
labour cost of the organization. In certain organization, the labour cost covers 50% of
overall operational cost. In addition, if all employees are awarded in the same level, it
can cause feelings of inequity because the better performers are likely to feel
inequitably treated when they are rewarded at the same level as poor performers in the
same organization.
2. Motivation of Performance:
When certain conditions exist, reward systems have been demonstrated to motivate
performance.
The reward system must be directly link to the effective performance. Staffs should be
rewarded according to their needs. Once the staff is rewarded for their outstanding
performance, they will further improve their work process. The effect of this reward
system depends on the situation and the needs of people. There are three factors that
can affect the motivation effect by using reward system.
Performance-Outcome Expectancy:
Individuals expect that if they behave in a certain way, they will get certain outcomes
due to their behaviours. For example, if a person sells ten units of product within one
month, they will receive their based salary without any additional bonus. In the other
hand, they can receive 15% of commission if they can sell 15 units per month. In this
case, the staff will be motivated to achieve a higher sells level in order to receive 15%
of commission.
Attractiveness:
Based on the perception of the staff, the outcome of the reward system will lead to
different attractiveness to employees. For example, some staffs want to be promoted as
they have higher desire to gain more control power. Other staffs might prefer increment
of their salary rather than promotion. The firm needs to understand the employee’s need
and select the most attractive way to retain and attract motivated staffs. In retail

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industry, the firm should select the most appropriate approach to reward its employees.
For staffs who want to lead a team and manage people, the firm can promote them to
be a leader of a sells team. For staffs who enjoy the interaction with customer, the
organization can increase their commission and keep them at ground level.
Effort-Performance Expectancy:
The expectancy represents the individual’s perception of how hard it will be to
achieve certain behaviour. For example, if the employee has very negative thought, they
feel that they can never achieve the sells target. The employees will be further
discouraged if they really fail to achieve the target. However, if the firm creates a
positive working environment, the staff will feel that the quota is achievable and they
will be motivated to hit the target and receive the reward. Therefore, most of the retail
firms want to encourage their staff to think positively and believe that the sells target is
achievable. This could help the staff to performance better.

3. Create Positive Organizational Culture:

Reward system can help the firm to create a positive culture. Depend on the way that
reward systems are developed, administered, and managed, the organizational culture
will be affected according to these factors. For example, the reward system can
influence the human resources oriented culture, entrepreneurial culture, innovative
culture, competence based culture, fair culture and participative culture. It can also
affect the communication, motivation and satisfaction of the employees. For example,
the employees will work hard to achieve their personal value if their efforts are
recognized organization. However if the organization rewards all staffs equally without
appreciation of the individual’s effort, most of the staff will tend to slack.

The established culture should be able to meet following standards:

 The individual believes that the better behaviour will lead to better outcomes.
 The individual feels that the reward is attractive enough for them to improve
their work. Organization needs to understand the needs of the staff
 The individual believes that it is possible to achieve certain level of target. The
firm should encourage the staff to think positively and set an achievable target
for them. For example, the monthly sells quota need to be reasonable.

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4. Improve on Skills and Knowledge:
The reward system can encourages employees continuously improve their skill sets.
The firm can pay employees based on their skill levels. Staffs will be motivated to
attend extra courses and improve their skill sets in order to receive more benefit.
For example, the firm can reward staff with outstanding explanation and presentation
skills. Staffs will take more initiatives to improve their presentation skill and attend
related courses.
Both organization and staffs can be benefited from this. The firm can adjust the setup
of the reward system based on the requirement of the organization. For example,
effective communication skill and customer service skill are more important in retail
industry. The firm can provide benefits to staffs who attend relevant courses and have
outstanding customer service skills.
5. Reinforce and Define Organizational Structure:
The reward system can reinforce and define the organizational structure. The firm might
not foresee the impact of reward system on firm’s structure changes.

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1.2 COMPANY PROFILE
Established in 2002, Techindia delivers world-class, enterprise healthcare management
solutions that bridges the Intersection of Healthcare & Information technology to work
more efficiently and collaboratively to deliver better health.

Why Techindia?
We believe the best results come from working together in respectful
partnership with colleagues and customers. We show our accountability with fact-based
insights and prompt delivery of services. This sense of integrity is extended to the
community we work with and ourselves.
Business compliance
We are fully compliant to the following global privacy, security and certifications
standards. Everyday, we analyse 4 billion heartbeats, streaming through 75 different
FDA approved bio-sensors and wearables that capture near real-time health data,
helping 4500+ physician touch points across North America, Canada, Australia, UK,
Europe, Japan and Australasia. Talk to us today. The Academy
Accuracy is of paramount importance in healthcare monitoring. We ensure it through
Techindia’s in-house training and education of medical professionals at The Academy.
An institute that shapes and produces our world-class service providers.

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Cardiac Event Monitoring, Cardiac Arrhythmia & Remote Patient Monitoring Services

Services Offered by Techindia Infoway Pvt Ltd

Techindia Infoway Pvt Ltd offers a comprehensive range of IT services that are
designed to meet the diverse needs of its clients. These services include:
1. Software Development: Techindia Infoway Pvt Ltd specializes in developing custom
software solutions that are tailored to the specific requirements of businesses. Whether
it’s enterprise resource planning (ERP) systems, customer relationship management
(CRM) tools, or mobile applications, the company excels in delivering robust and
scalable software products.
2. Web Development: The web development services provided by Techindia Infoway
Pvt Ltd are focused on creating dynamic and responsive websites that enhance the
online presence of businesses. From e-commerce platforms to corporate websites, the
company ensures that every project is executed with precision.
3. Digital Marketing: Techindia Infoway Pvt Ltd offers a full suite of digital marketing
services, including search engine optimization (SEO), social media marketing, and

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content marketing. These services are aimed at helping businesses increase their online
visibility and reach their target audience effectively.
4. IT Consulting: As a leader in IT consulting, Techindia Infoway Pvt Ltd provides
expert guidance to businesses looking to leverage technology for growth. The
company’s consulting services cover areas such as IT strategy, infrastructure
management, and cybersecurity.
5. Cloud Services: Techindia Infoway Pvt Ltd helps businesses migrate to the cloud with
ease. The company’s cloud services include cloud computing, storage, and disaster
recovery solutions, all designed to improve business efficiency and reduce costs.
Market Position of Techindia Infoway Pvt Ltd
Techindia Infoway Pvt Ltd has established itself as a market leader in the IT industry.
The company’s commitment to quality, innovation, and customer satisfaction has
earned it a loyal client base and numerous accolades. Techindia Infoway Pvt Ltd’s
ability to adapt to changing market trends and embrace new technologies has been key
to its success.
The company’s market position is further strengthened by its global presence. With
offices in multiple countries and a diverse team of professionals, Techindia Infoway
Pvt Ltd is well-equipped to serve clients from different industries and regions.

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ORGANISATION HIERACHY OF TECHINDIA INFOWAY PRIVATE
LIMITED:

CHAIRMAN

Advisory Board Board of Director Company Secretory

CEO General Manager CTO R&D

Operations
HR Manger Accounts Manger Manager PR Manager

Clinical Manger Production Manager Process Manager

Team Leader Team Leader Team Leader Team Leader

Department Staff Department Staff Department Staff Department Staff

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COMPENSATION:
 Salary transfer will happen between 5th to7th every month. If the salary day is public
holiday or Sunday, the transfer will happen on the following working day.
 Salary account will be opened in the respective bank in which the company is banking
with.
 Company does not have policy to transfer the staff salary in other bank where he/she
holds an account.
 New joiners or employees on probation salary/stipend shall be paid only by way of
cheque or cash and shall be provided on or before 9th of every month.
 Only account payee cheques will be provided.
 Bearer cheques shall be made only on request form employee.
 Request has to be made by the staff to the payroll department and to be intimated on
or before the end of the salary month.
 Salary cheque should be collected only by the employee in person and will not be
handed over to any colleagues or caretakers/represent actives.

LEAVE POLICY:
 Techindia Infoway pvt ltd, Recognizes the legal and moral obligation of employees
who may require absence from normal or usual work hours/days.
 Leaves should be earned and availed.
 The employees are eligible for the below mentioned leaves.
 Casual leave
 Sick leave

CASUAL LEAVE
All employees will be entitled from 12 days of casual leave in a year.

SICK LEAVE
1. All employees will be entitled from 12 days of sick leave in a year.
2. Just like casual leave policy, sick leave also called for approved.
3. Sick leaves can be availed in units of half and one day.

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Achievements and Recognition
Over the years, Techindia Infoway Pvt Ltd has received several awards and
recognitions for its outstanding contributions to the IT industry. The company’s
innovative solutions and customer-centric approach have been widely acknowledged
by industry experts and clients alike.
Some of the notable achievements of Techindia Infoway Pvt Ltd include:
 Award for Excellence in IT Services: Techindia Infoway Pvt Ltd was honored with this
award for its exceptional service delivery and customer satisfaction.
 Innovation in Software Development: The company’s innovative approach to software
development has been recognized with multiple awards and certifications.
 Best Digital Marketing Agency: Techindia Infoway Pvt Ltd received this recognition
for its effective and result-oriented digital marketing strategies.
Corporate Social Responsibility (CSR)
 Techindia Infoway Pvt Ltd is committed to giving back to society through its various
CSR initiatives. The company actively participates in community development
programs, supports education for underprivileged children, and promotes
environmental sustainability. Techindia Infoway Pvt Ltd believes in making a positive
impact on society and contributes to various causes that align with its values.

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Future Prospects and Growth

The future looks bright for Techindia Infoway Pvt Ltd as it continues to expand its
service offerings and enter new markets. The company is focused on leveraging
emerging technologies such as artificial intelligence (AI), machine learning (ML), and
blockchain to develop innovative solutions for its clients.
Techindia Infoway Pvt Ltd is also investing in research and development (R&D) to stay
at the forefront of technological advancements. The company’s growth strategy
includes exploring new business opportunities, forming strategic partnerships, and
expanding its global footprint.

Techindia Infoway Pvt Ltd’s Approach to Quality

Quality is at the core of everything Techindia Infoway Pvt Ltd does. The company
follows a rigorous quality assurance process to ensure that every project meets the
highest standards of excellence. From the initial planning stages to the final delivery,
Techindia Infoway Pvt Ltd’s team of experts works diligently to ensure that the end
product is flawless.

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The company’s commitment to quality is evident in its ISO certifications and adherence
to industry best practices. Techindia Infoway Pvt Ltd continuously invests in training
and development to keep its team updated with the latest trends and technologies.
Techindia Infoway Pvt Ltd’s Leadership and Team
The success of Techindia Infoway Pvt Ltd can be attributed to its strong leadership and
talented team. The company’s leadership team comprises experienced professionals
with a deep understanding of the IT industry. Their vision and guidance have been
instrumental in shaping the company’s growth and success.
Techindia Infoway Pvt Ltd’s team is made up of skilled professionals who are
passionate about technology and innovation. The company’s collaborative work
environment fosters creativity and encourages employees to think outside the box.
Conclusion:
The Future of Techindia Infoway Pvt Ltd
Techindia Infoway Pvt Ltd is poised for continued success in the IT industry. With a
strong foundation, a commitment to quality, and a focus on innovation, the company is
well-positioned to meet the challenges of the future. Whether it’s developing cutting-
edge software solutions, providing expert IT consulting, or delivering impactful digital
marketing campaigns, Techindia Infoway Pvt Ltd is dedicated to helping its clients
achieve their business goals.
As Techindia Infoway Pvt Ltd continues to grow and evolve, it remains committed to
its core values of excellence, integrity, and customer satisfaction. The company’s future
prospects are bright, and it is set to play a leading role in shaping the future of the IT
industry.

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1.3 NEED OF THE STUDY
 To give fair compensation benefits to employees.
 Retaining of qualified employees in working environment.
 To provide compensation to meet their expectation and satisfactions.
 To reduce employee turnover to give the fair compensation benefits.
 To communication the compensation policies to improve the organisation performance.

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1.4 SCOPE OF THE STUDY
 To learn the effectiveness of compensation benefits provided by the organisation.
 This study helps to improve the employee motivation and employee performance.
 To analyse the major factors that is influences the employee compensation benefits.
 To get an idea to keep employee feel appreciated to work.
 To analyses the way to improve employee compensation benefits.
 To explore that compensation has directly effect on job compensation.

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1.5 OBJECTIVE OF THE STUDY:
Primary objective
 To analysis the effectiveness of reward and compensation benefits at Techindia
Infoway Private Limited
Secondary objective
 To identify the employee perception about reward system in Techindia Infoway Pvt
Ltd.
 To find out the employee awareness about compensation plan in the company.
 To study the employee opinion about compensation plan available in the company.

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1.6 PROBLEM OF THE STUDY
Employee reward and compensation play a crucial role in job satisfaction, motivation,
and overall productivity. However, organizations often struggle to design and
implement effective compensation structures that align with employee expectations and
business goals. In TechIndia Infoway Private Limited, there may be concerns about
whether the current reward and compensation system is effectively meeting employee
needs, improving performance, and reducing turnover.
The study aims to investigate the effectiveness of the reward and compensation benefits
provided by TechIndia Infoway Pvt. Ltd. It will explore whether employees perceive
these benefits as fair and motivating, their impact on job satisfaction and retention, and
whether the company’s compensation policies align with industry standards.
Additionally, the study will identify gaps and suggest improvements for enhancing
employee welfare and organizational performance.

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REVIEW OF LITERATURE
 Bob (2020) Compensation processes are based on Compensation Philosophies and
strategies and contain arrangement in the shape of Policies and strategies, guiding
principles, structures and procedures which are devised and managed to provide and
maintain appropriate types and levels of pay, benefits and other forms of compensation
 Bob (2019) This constitutes measuring job values, designing and maintaining pay
structures, paying for performance, competence and skill, and providing employee
benefits. However, compensation management is not just about money. It is also
concerned with that nonfinancial compensation which provides intrinsic or extrinsic
motivation.
 Anyebe (2018) This work however is limited to financial compensation in Anambra
State Civil Service as a recent study has shown that pay is the driving force for seeking
employment in the Civil Service.
 Armstrong (2017) stated that compensation management is an integral part of human
resources management approach to productivity improvement in the organization. It
deals with the design, implementation and maintenance of compensation system that
are geared to the improvement of organizational, team and individual performance.
 Pearce (2017) Compensation implies having a compensation structure in which the
employees who perform better are paid more than the average performing employees.
 Armstrong (2016) Compensation Management is concerned with the formulation and
implementation of strategies and Policies that aim to compensate people fairly,
equitably and consistently in accordance with their value to the organization.
 Anyebe (2015) The task in compensation administration is to develop policies and the
terms of attracting, satisfying, retaining and perhaps motivating employees.
 Anambra State Civil Service (2014) which the researchers examined originated from
the Eastern Nigeria Government and the old Anambra State. The creation of this state
led to the setup of the Anambra State Civil Service. Employing the tenets of traditional
public administration, the state civil service was an instrument of the government
authorities as well as an impartial interpreter and implementer of the policies and
programs of the State Government.
 Robert and Angelo (2013) opined that the success or failure of organizations hinges
on the ability to attract, develop, retain, empower and reward a diverse array of
appropriately skilled people and is the key to improved performance hence the

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enthronement of democratic governance in brought some civil service reforms and
Anambra State Civil Service Commission got vested with horizontal powers by law to
manage the workforce of the civil service for greater efficiency.
 Nweke (2013) Successive constitutional reviews and Civil Service reforms have
catalysed the evolution of the civil service as an institution for spearheading the rapid
transformation of the state and ensuring continuity of administration
 Armstrong (2012). Compensation management is one of the central pillars of human
resources management (HRM). It is concerned with the formulation and
implementation of strategies and policies that aim to compensate people fairly,
equitably and consistently in accordance with their value to the organization.
 Hewitt (2012). Compensation Management as the name suggests, implies having a
compensation structure in which the employees who perform better are paid more than
the average performing employees. This encourages top-performers to work harder and
helps to build a competitive atmosphere in the organization.
 Armstrong and Brown (2012) postulate that compensation management is an integral
part of HRM approach to managing people and as such it supports the achievement of
business objectives and it is strategic in the sense that it addresses longer term issues
relating to how people should be valued for what they want to achieve; It is therefore
integrated with other HRM functions.
 Armstrong (2011) in his own analysis says compensation management is all about
developing a positive employment relationship and psychological contract that adopts
a total compensation approach which recognizes that there are a number of ways in
which people can be compensated
 Harrison and Liska (2011) in their study posit that reward is the center piece of the
employment contract-after all it is the main reason why people work. This includes all
types of rewards, both intrinsic and extrinsic, that are received as a result of
employment by the organization.
 Brown (2011) sees compensation as a return in exchange between their employees and
themselves as an entitlement for being an employee of the organization, or as a reward
for a job well done. Employees’ pay does not depend solely on the jobs they hold.
 Gehart and Milkovich (2010) Instead organizations vary the amount paid according
to differences in performance of the individual, group, or whole organization as well
as differences in employee qualities such as seniority, educational levels and skills

25
 Dyer (2010) The notion that compensation policies are strategic, thereby affecting the
missions of the organization, has considerable currency. This is part of the current
popularity of all things strategic. While some may write it off as another fad, a less
cynical view is that a strategic perspective on compensation is part of a growing
recognition that macro-organizational issues are an important part of the study of
human resource management.
 Salter (2010) and Lawler (2009) also considered a series of process decisions to be
strategic. These included congruency (consistency with other organization systems),
standardization of pay systems across subunits, communications (the type of data to
disclose, the channels to use, etc.), participation in decision making (levels of
employees involved and nature of involvement), and organization change strategy (the
role of compensation in organization change).
 Schwab (2009) Being strategic about compensation implies support of the business
strategy and sensitivity to anticipated environmental pressures. But such a general
characterization does not provide much leverage for research or theory building. Nor
does it offer much guidance for managing compensation. And the folly of undertaking
research based on poorly defined constructs is well recognized
 Lawler (2009) , while not the longest, is perhaps the most inclusive. It includes the
market position (level of pay relative to competitors), internal versus external
orientation, hierarchy (the steepness of the pay structure and the basis--job versus
skills--for the pay structure reward mix, and the basis of rewards (performance versus
seniority, groups versus individual, criteria used, etc.).
 Carroll (2009) (performance measures, size of bonus, timing, etc.) seem consistent
with Lawler's more broadly defined issues (e.g. basis for increases). The original issues
proposed for executive compensation have also become more broadly defined and
applied to all employees.
 Kerr (2008), focusing on the compensation of general managers, offered a somewhat
different list (35 items in all), including the subjectivity versus objectivity of
performance criteria, the time orientation (short versus long-term), the values
orientation (performance versus membership), clarity of the performance-reward
relationship, and the proportion of total compensation devoted to incentives.
 Heneman (2008)The expanding list of decisions claimed to be strategically relevant
raises doubts about the efficacy of a strategic perspective. It brings to mind the multiple

26
facets of job satisfaction and pay satisfaction that made the constructs more complex
than originally conceived
 Belcher (2007) Milkovich & Newman, (2008) and Carroll (2007) The first policy, the
degree of competitiveness, can vary among organizations and among occupations
within organizations. From a strategic perspective, competitiveness refers to
positioning a firm's compensation relative to its competitors.
 Anne c. gielen (2006) PRP- schemes can be either individual performance pay
schemes, such as piece rate wages, or collective performance pay schemes, such as
profit sharing. In case of teamwork, individual performance is difficult to measure;
hence, there is an incentive to free ride. In such a case, group-based incentive schemes
may have little eject on individual productivity. Additionally, perverse incentives may
arise in case of multitasking.
.

27
RESEARCH METHODOLOGY
DEFINITION
Research is process in which a research wishes to find out the result for a give
problem and thus solution de helps in future course of action. The research has been
defined as “A carefully investigation or enquire especially through search for a new in
any branch of knowledge.
RESEARCH METHODOLOGY
The procedure using, which research go about their work describing, explaining and
predicting phenomena, is called methodology, Methods compromise the procedure
used for generating collecting and evaluating data. Methods are the ways of obtaining
information useful for assessing explanation.
3.1 RESEARCH DESIGN
A research design is the arrangement of condition for collecting and analysis of data
in a manner that aims to combine relevance to the research purpose with economy in
procedure.
TYPE OF RESEARCH
The type of research used in this project is descriptive in nature. Descriptive
research is an essentially a fact-finding related largely to the present, abstracting by
cross sectional study of the current situation.
The descriptive methods are extensively used in the physical and natural science, for
instance when physical, biology classified zoology dissects and zoology studies rocks.
DESCRPTIVE RESEARCH AIMS
 To portray the characteristics of a particular individual situation, or group (with or
without specific initial hypothesis about the nature of these characteristics)
 To determine the frequency with which something occurs or with which it is associated
with something else (usually, but not always, with a specific initial hypothesis)

The descriptive methods have certain limitation one is that the research may make
description an end itself. Research is essentially creative and demands the discovery of
facts on order to lead a solution of a problem. A second limitation is associated whether
the statistical technique dominates.
The desire to over emphasis central tendencies and to fact in terms of AVERAGE,
correlation, mean of dispersion may not always be either welcome this limitation arises

28
because statistics, which is party a descriptive tool of analysis, can aid but always
explain relations.
DESIGN OF DESCRIPTIVE STUDIES
Descriptive studies aim at portraying accurately the characteristic of particular group
or solution. One may undertake a descriptive study about the work in the factory, health
and welfare. A descriptive study may be concerned with the right to strike, capital,
punishment, prohibition etc; A descriptive study involves the following steps,
1. Formulating the objective of the study.
2. Defining the population and selecting the sample.
3. Designing the method of data collection.
4. Analysis of the data.
5. Conclusion and recommendation for further improvement in the practices.

3.2 SAMPLE DESIGN

Systematically sampling methods is being used for the survey. Systematic sample is
selected at random sample when a complete list of population is available.
SAMPLE SIZE
Sample size refers to the number of people under survey. The sample size selected
for the study was 100 respondents at random from the market.
CONVENINENCE SAMPLE
The samples are collect from the respondents by using convenience sample method.
Convenience sampling is a non- probability sampling technique where subjects are
selected just because of either convenient accessibility or proximity to the researcher.
The subjects are selected just because they are easiest to recruit for the study and the
research does not consider selecting subject that is representative of the entire
population.
In all from of research, it would be ideal to test the entire population but in most
cases, the population is just too large that it is impossible to include every individual.
This is the reason why most researchers really on sampling technique like convenience
sampling technique because it is fast, inexpensive, easy and the subjects are readily
available.

29
3.3 METHODS OF DATA COLLECTION
The task of data collection beings after research problems have been defined and
research design chalked out. Data is the foundation for all marketing research. The
researchers can obtain data from primary data and secondary data.
PRIMARY DATA:
The primary data are those which are collected afresh and for the first time, and thus
happen to be original in character. Primary data are measurements observed and
recorded as part a study to collect original data. i.e. to conduct first hand investigation.
SECONDARY DATA:
The secondary data means the data which is collected that can be already available.
The secondary data may be published or unpublished data. The data can be getting
through publication given by central or state government, report of various association
public records and technical trade journals.
3.4 TOOLS USED FOR DATA ANALYSIS
 Percentage Analysis
 Chi- Square
 ANOVA
PERCENTAGE ANALYSIS
The percentage procedure provides statistics and graphical displays that are
useful for describing many types of variables. The percentage procedure is a good place
to start looking at your data.
For a percentage report and pie chart, you can arrange the distinct values in
ascending or descending order, or you can order the categories by their percentage. The
percentage report can be suppressed when a variable has many distinct values. You can
label charts with percentage.

FORMULA

Percentage of Respondents = No of Respondents X 100

Total of Respondents

30
CHI-SQUARE TEST

Tabulates a variable into categories and computes a chi-square statistic based on the
difference between observed and expected frequencies. The chi-square test procedure
tabulates a variable into categories and computes a chi-square statistic.
This goodness-of-fit test compares he observed and expected frequencies in each
category to test that all categories contain the same proportion of values or test that each
category contains a user-specified proportion of values.

FORMULA

(O-E) 2

Chi-square = -----------

O = Observed frequency

E = Expected frequency

ANALYSIS OF VARIANCE (ANOVA)

Analysis of variance is an extremely useful technique concerning research. This
is used when multi sample are involved.
ANOVA is extremely a procedure for testing the difference among different
groups of data for homogeneity. The essence of ANOVA is that the total amount of
variation in a set of data is broken down into two types such as
• ONE-WAY ANOVA
• TWO-WAY ANOVA

31
ONE-WAY ANOVA

FORMULA

T = ∑ X1+ ∑ X2 + .................. + ∑ Xn

Correlation factor

C.F = T2/N

Sum of squares

(SS) =∑ X12+ ∑ X22 + .................. + ∑ Xn2

Sum of squares between samples

SSC = (∑ X1)2/n+ (∑ X2)2/n + .................. + (∑ Xn) 2/n- T2/N

Squares with in the samples

SSW = SS-SSC

WHERE
T2 = square of sum of all items
N = Number of all items
N = No of samples
To calculate the expected frequencies, E = RT x CT
N
Where , RTv = The row total for the row containing the cell
CT = The column total for the column
N = The total number of observations.
Table value = At specified degree of freedom for 5% level of
significance.
Degree of freedom = (No. of Rows-1) (No. of columns-1)
The chi-square (I) test is used to determine whether there is a significant
difference between the expected frequencies and the observed frequencies in one or
more categories.

32
DATA ANALYASIS AND INTERPRETATION
4.1 FREQUENCY ANALYSIS
CLASSIFICATION BASED ON THE RESPPONDENT OF THE GENDER
TABLE 4.1.1

PARICULARS FREQUENCY PERCENTAGE

Male 35 35
Female 65 65
TOTAL 100 100

CHART 4.1.1

Gender of the respondents

70

60

50
frequency

40

30

20

10

0
male female
gender of the respondent

INTERPRETATION:
From the above table, it is known that 35% of the respondents are male and the
remaining 65% are female.

33
CLASSIFICATION BASED ON THE RESPPONDENT OF THE AGE
TABLE 4.1.2
PARICULARS FREQUENCY PERCENTAGE
21 – 30 25 25
31 – 40 33 33
41 – 50 24 24
51 – 60 18 18
TOTAL 100 100

CHART 4.1.2

Age of the respondent

35

30

25
frequency

20

15

10

0
21 - 30 31 - 40 41- 50 51 - 60
age of the respondent

INTERPRETATION:
From the above table it is inferred that 25% of the respondents are in the age group of
21 to 30 years and 33% of respondents are in the age group of 31 to 40 years and 24%
of respondents are in the age group of 41 to 50 years and 18% of respondents are in the
age group of 51 to 60.

34
CLASSIFICATION BASED ON THE RESPPONDENT OF THE
EDUCATIONAL QUALIFICATION
TABLE 4.1.3
PARTICULARS FREQUENCY PERCENTAGE
School level 29 29
ITI/Diploma 9 9
UG 26 26
PG 14 14
Others 22 22
TOTAL 100 100

CHART 4.1.3

Qualification of the respondents

35
30
25
frequency

20
15
10
5
0
School level ITI/ Diploma UG PG Others
Qualification of the srespondent

INTERPRETATION:
The above table shows that 29% of the respondents are educational qualification is
School level and 9% of the respondents are educational qualification is ITI/Diploma
and 26% of the respondents are educational qualification is UG and 14% of the
respondents are educational qualification is PG and 22% of the respondents are
educational qualification is others.

35
CLASSIFICATION BASED ON THE RESPPONDENT OF THE MARITAL
STATUS
TABLE 4.1.4
PARTICULARS FREQUENCY PERCENTAGE
Married 46 46
Unmarried 54 54
TOTAL 100 100

CHART 4.1.4

Marital status of the respondent

56

54

52
frequncy

50

48

46

44

42
married unmarried
marital status of the respondent

INTERPRETATION:
From the above table shows that 46% of respondent are married and the remaining 54%
of the respondent are unmarried.

36
CLASSIFICATION BASED ON THE RESPPONDENT OF THE WORKING
EXPERIENCE
TABLE 4.1.5
PARTICULARS FREQUENCY PERCENTAGE
Below 5 years 38 38
6 to 10 years 45 45
11 to 15 years 17 17
TOTAL 100 100

CHART 4.1.5

Working experience of the respondent

50
45
40
35
30
frequncy

25
20
15
10
5
0
below 5 years 6 to 10 years 11 to 15 years
working experience of the respondent

INTERPRETATION:
From the above table shows that 38% of the respondents are having working
experience of below 5 years and 45% of the respondents are having working experience
of 6 to 10 years and 17% of the respondent are having working experience of 11 to 15
years.

37
CLASSIFICATION BASED ON THE RESPPONDENT OF THE I AM
SATISFIED WITH THE COMPENSATION BENEFITS PROVIDED BY THE
ORGANISATION
TABLE 4.1.6
PARTICULARS FREQUENCY PERCENTAGE
Excellent 33 33
Very Good 19 19
Good 33 33
Satisfactory 10 10
Poor 5 5
TOTAL 100 100

CHART 4.1.6

I am satisfied with the compensation benefits provided by

the organisation
35
30
25
frequency

20
15
10
5
0
Excellent Very good Good Satisfactory Poor
I am satisfied with the compensation benfits provided by the organisation

INTERPRETATION:
From the above table shows that 33% of the respondents “Excellent” and 19% of
the respondents “Very good” and 33% of the respondents “Good” and10 % of the
respondents “Satisfactory” and 5% of the respondents “Poor” to the statement of
satisfied with the compensation benefits provided by the organisation.

38
CLASSIFICATION BASED ON THE RESPPONDENT OF THE
COMPENSATION BENEFITS WILL AFFECT THE ORGANISATIONAL
PERFORMANCE
TABLE 4.1.7
PARTICULARS FREQUENCY PERCENTAGE
Excellent 30 30
Very Good 22 22
Good 33 33
Satisfactory 10 10
Poor 5 5
TOTAL 100 100

CHART 4.1.7

Compensation benefits will affect the organisation

performance
35
30
25
frequency

20
15
10
5
0
Excellent Very good Good Satisfactory poor
compensation benefits will affect the organisation performance

INTERPRETATION:
From the above table shows that 30% of the respondents “Excellent” and 22% of
the respondents “Very good” and 33% of the respondents “Good” and 10% of the
respondents “Satisfactory” and 5% of the respondents “ Poor” to the statement of
compensation benefits will affect the organisation performance.

39
CLASSIFICATION BASED ON THE RESPPONDENT OF THE EMPLOYEE
FEEL APPERCITED FOR THEIR WORK PERFORMANCE TO IMPROVE
THE ORGANISATION PERFORMANCE
TABLE 4.1.8

PARTICULARS FREQUENCY PERCENTAGE

Excellent 35 35
Very good 23 23
Good 22 22
Satisfactory 14 14
Poor 6 6
TOTAL 100 100

CHART 4.1.8

Employee feel appreciated for their work performance to

improve the organisational performance
40
35
30
frequency

25
20
15
10
5
0
Excellent Very good Good Satisfactory Poor
Employee feel appreciated for their work performance to improve the
organisational performance

INTERPRETATION:
From the above table shows that 35% of the respondents “Excellent” and 23% of
the respondents “Very good” and 22% of the respondents “Good” and 14% of the
respondents “Satisfactory” and 6% of the respondents "Poor” to the statement of
employee feel appreciated for their work performance to improve the organization
performance.

40
CLASSIFICATION BASED ON THE RESPPONDENT OF THE
ORGANIZATION COMMUNICATE THE COMPENSATION POLICIES TO
EMPLOYEES
TABLE 4.1.9
PARTICULARS FREQUENCY PERCENTAGE
Excellent 43 43
Very good 16 16
Good 22 22
Satisfactory 14 14
Poor 5 5
TOTAL 100 100

CHART 4.1.9

The organisation communicate the compensation policies

to employees
50

40
freqency

30

20

10

0
Excellent Very good Good Satisfactory Poor
The organisation communicate the compensation policies to empolyees

INTERPRETATION:
From the above table shows that 43% of the respondents “Excellent” and 16% of
the respondents “Very good” and 22% of the respondents "Good” and 14% of the
respondents "Satisfactory” and 5% of the respondents “Poor” to the statement of the
organization communicate the compensation policies to employees.

41
CLASSIFICATION BASED ON THE RESPPONDENT OF THE
ORGANIZATION PROVIDED EQUAL COMPENSATION BENEFITS IN
ALL EMPLOYEES
TABLE 4.1.10
PARTICULARS FREQUENCY PERCENTAGE
Excellent 55 55
Very good 20 20
Good 15 15
Satisfactory 10 10
Poor 0 0
TOTAL 100 100

CHART 4.1.10

Organisation provied equal compensation policies to

employees
60

50

40
frequency

30

20

10

0
Excellent Very good Good Satisfactory Poor
Organisation provied equal compensatiion policies to empolyees

INTERPRETATION:
From the above table shows that 55% of the respondents “Excellent” and 20% of
the respondents “Very good” and 15% of the respondents “Good” and 10% of the
respondents “Satisfactory” and 0% of the of the respondents “Poor” to the statement of
the organisation provide equal compensation policies to employees.

42
CLASSIFICATION BASED ON THE RESPONDENT OF THE
ORGANISATION IS MAINTAINING PROPER RECORDS FOR EMPLOYEE
COMPENSATION
TABLE 4.1.11
PARTICULARS FREQUENCY PERCENTAGE
Excellent 32 32
Very good 20 20
Good 22 22
Satisfactory 24 24
Poor 2 2

TOTAL 100 100

CHART 4.1.11

Organisation is maintaining proper records for employee

compensation
35
30
25
frequency

20
15
10
5
0
Excellent Very good Good Satisfactory Poor
Organisation is maintaining proper records for employee compensation

INTERPRETATION:
From the above table shows that 32% of the respondents “Excellent” and 20% of
the respondents “Very good” and 22% of the respondents “Good” and 24% of the
respondents "Satisfactory” and 2% of the respondents "Poor” to the statement of the
organisation is maintaining proper records for employee compensation.

43
CLASSIFICATION BASED ON THE RESPONDENT OF THE
ORGANISATION HAS A SEPRATE PERSONNAL DEPARTMENT WHICH
MANITAIN THE COMPENSATION RECORD OF EMPLOYEES
TABLE 4.1.12
PARTICULARS FREQUENCY PERCENTAGE
Yes 76 76
No 24 24
TOTAL 100 100

CHART 4.1.12

Organisation has a spate personnal department whcih

manitain the compensation record of employees
80
70
60
frequency

50
40
30
20
10
0
Yes No
Organisation has a spate personnal department whcih manitain the compensation
record of employees

INTERPRETATION:
From the above table shows that 76% of the respondents “Yes” and 24% of the
respondents “No” to the statement of the organisation has a separate personal
department which maintain the compensation record of employees.

44
CLASSIFICATION BASED ON THE RESPONDENT OF THE CREATING A
GOOD RELATIONSHIP BETWEEN THE EMPLOYEE AND MIDDLE
MANAGEMENT WILL IMPROVE THE EMPLOYEES PERFORMANCE
TABLE 4.1.13
PARTICULARS FREQUENCY PERCENTAGE
Excellent 42 42
Very good 24 24
Good 22 22
Satisfactory 10 10
Poor 2 2
TOTAL 100 100

CHART 4.1.13

Creating a good relationship between the

employee and middle management will improve
the employees performance
60
frequency

40
20
0
Excellent Very good Good Satisfactory Poor
Creating a good relationship between the employee and middle
management will improve the employees performance

INTERPRETATION:
From the above table shows that 42% of the respondents “Excellent” and 24% of
the respondents “Very good” and 22% of the respondents "Good” and 10% of the
respondents "Satisfactory” and 2% of the respondents "Poor” to the statement creating
a good relationship between the employee and middle management will improve the
employees performance.

45
CLASSIFICATION BASED ON THE RESPONDENT OF THE EXTENDING
THE COMPENSATION BENEFITS TO EMPLOYEES WILL IMPROVE
THEIR MORALITY
TABLE 4.1.14

PARTICULARS FREQUENCY PERCENTAGE

Excellent 36 36
Very good 13 13
Good 19 19
Satisfactory 22 22
Poor 10 10
TOTAL 100 100

CHART 4.1.14

Extending the compensation benefits to employees will

improve their morality
40
35
30
frequency

25
20
15
10
5
0
Excellent Very good Good Satisfactry Poor
Extending the compensation benefits to empolyees will improve their morality

INTERPRETATION:
From the above table shows that 36% of the respondents “Excellent” and 10% of
the respondents “Very good” and 19% of the respondents “Good” and 22% of the
respondents “Satisfactory” and 10% of the respondents “Poor” to the statement of the
extending the compensation benefits to employees will improve their morality.

46
CLASSIFICATION BASED ON THE RESPONDENT OF THE
ORGANISATION ATTRACTS, MOTIVATE AND RETAION THE
QUALIFIED THE EMPOLYEES
TABLE 4.1.15

PARTICULARS FREQUENCY PERCENTAGE

Excellent 42 42
Very good 22 22
Good 16 16
Satisfactory 12 12
Poor 8 8
TOTAL 100 100

CHART 4.1.15

Organisation attracts, motivate and retain the qualified the

employees
50

40
frequency

30

20

10

0
Excellent Very good Good Satisfactory Poor
Organisation attracts, motivate and retain the qualified the employees

INTERPRETATION:
Frome the above table shows that 42% of the respondents “Excellent” and 22% of
the respondents “Very good” and 16% of the respondents “Good” and 12% of the
respondents “Satisfactory” and 8% of the respondents “Poor” to the statement of
organisation attracts, motivate and retain the qualified the employees.

47
CLASSIFICATION BASED ON THE RESPONDENT OF THE
ORGANISATION HAVE SPECIFIC DESIGNED INCENTIVE PLAN
TABLE 4.1.16

PARTICULARS FREQUENCY PERCENTAGE

Excellent 34 34
Very good 22 22
Good 24 24
Satisfactory 14 14
Poor 6 6
TOTAL 100 100

CHART 4.1.16

Organisation have specific designed incentive plan

40

35

30

25
frequency

20

15

10

0
Excellent Very good Good Satisfactory Poor
Organisation have specific desined incentive plan

INTERPRETATION:
From the above table shows that 34% of the respondents “Excellent” and 22% of
the respondents “Very good” and 24% of the respondents "Good” and 14% of the
respondents "Satisfactory” and 6% of the respondents "Poor” to the statement
organisation have specific designed incentive plan.

48
CLASSIFICATION BASED ON THE RESPONDENT OF THE
ORGANISATION FULFIL THE BASIC NEED TO RETAIN THEIR
EMPLOYEES
TABLE 4.1.17

PARTICULARS FREQUENCY PERCENTAGE

Excellent 38 38
Very good 24 24
Good 12 12
Satisfactory 16 16
Poor 10 10
TOTAL 100 100

CHART 4.1.17

Organisdation fulfil the basic need to retain their

employees
40
35
30
25
frequency

20
15
10
5
0
Excellent Very good Good Satisfactory Poor
Organisdation fulfil the basic need to retain their employees

INTERPRETATION:
From the above table shows that 38% of the respondents “Excellent” and 24% of
the respondents “Very good” and 12% of the respondents "Good” and 16% of the
respondents "Satisfactory” and 10% of the respondents "Poor” to the statement
organisation fulfil the basic need to retain their employees.

49
CLASSIFICATION BASED ON THE RESPONDENT OF THE
ORGANISATION RECOGNIZING EMPLOYEES FOR THEIR HARD
WORK
TABLE 4.1.18

PARTICULARS FREQUENCY PERCENTAGE

Excellent 35 35
Very good 20 20
Good 25 25
Satisfactory 18 18
Poor 2 2
TOTAL 100 100

CHART 4.1.18

Organisation recognizing employees for their hard work

40

35

30

25
frequency

20

15

10

0
Excellent Very good Good Satisfactory Poor
Organisation recognizing employees for their hard work

INTERPRETATION:
From the above table shows that 35% of the respondents “Excellent” and 20%
of the respondents “Very good” and 25% of the respondents "Good” and 18% of the
respondents "Satisfactory” and 2% of the respondents "Poor” to the statement
organisation recognizing employees for their hard work.

50
CLASSIFICATION BASED ON THE RESPONDENT OF THE REWARD
SYSTEM IS VERY MUCH SATISFACTORY
TABLE 4.1.19

PARTICULARS FREQUENCY PERCENTAGE

Excellent 27 27
Very good 22 22
Good 37 37
Satisfactory 10 10
Poor 4 4
TOTAL 100 100

CHART 4.1.19

The reward system is very much satisfactory

40

35

30

25
frequency

20

15

10

0
Excellent Very good Good Satisfactory Poor
The reward system is very nuch satisfactory

INTERPRETATION:
From the above table shows that 27% of the respondents “Excellent” and 22%
of the respondents “Very good” and 37% of the respondents “Good” and 10% of the
respondents “Satisfactory” and 4% of the respondents “Poor” to the statement reward
system is very much satisfactory.

51
CLASSIFICATION BASED ON THE RESPONDENT OF THE
ORGANISATION PROVIDE INCENTIVE TO THE EMPLOYEES TO
RECOGNIZE THEIR WORK
TABLE 4.1.20

PARTICULARS FREQUENCY PERCENTAGE

Excellent 35 35
Very good 26 26
Good 20 20
Satisfactory 11 11
Poor 8 8
TOTAL 100 100

CHART 4.1.20

Organisation provide incentive to the employees to

recognize their work
40

35

30

25
frequency

20

15

10

0
Excellent Very good Good Satisfactry Poor

Organisation provide incentive to the employees to recognize their work

INTERPRETATION:
From the above table shows that 35% of the respondents “Excellent” and 26%
of the respondents “Very good” and 20% of the respondents “Good” and 11% of the
respondents “Satisfactory” and 8% of the respondents “Poor” to the statement
organisation provide incentive to the employees to recognize their work.

52
CLASSIFICATION BASED ON THE RESPONDENT OF THE
ORGANISATION HAS A PRESCRIBED SYSTEM FOR MONITORING THE
CASUAL LEAVE, SICK LEAVE BENEFITS
TABLE 4.1.21

PARTICULARS FREQUENCY PERCENTAGE

Excellent 35 35
Very good 27 27
Good 18 18
Satisfactory 14 14
Poor 6 6
TOTAL 100 100

CHART 4.1.21

Organisation has a prescribed system for monitoring the

casual leave, sick leave benefits
40
35
30
25
frequency

20
15
10
5
0
Excellent Very good Good Satisfactory Poor
Organisation has a prescribed system for monitoring the casual leave, sick leave
benefits

INTERPRETATION:
From the above table shows that 35% of the respondents “Excellent” and 27%
of the respondents “Very good” and 18% of the respondents “Good” and 14% of the
respondents “Satisfactory” and 6% of the respondents “Poor” to the statement
organisation has a prescribed system for monitoring the casual leave, sick leave
benefits.

53
CLASSIFICATION BASED ON THE RESPONDENT OF THE
ORGANISATION PROVIED THE DISABILITY PAY TO THE EMPLOYEES
TABLE 4.1.22
PARTICULARS FREQUENCY PERCENTAGE
Yes 67 67
No 33 33
TOTAL 100 100

CHART 4.1.22

Organisation provied the disability pay to the employees

80

70

60

50
frequency

40

30

20

10

0
Yes No
Organisation provied the disability pay to the employees

INTERPRETATION:
From the above table shows that 67% of the respondents “Yes” and 33% of
the respondents “No” to the statement organisation provide the disability pay to the
employees.

54
CLASSIFICATION BASED ON THE RESPONDENT OF THE QUALITY OF
WORK IS IMPROVED WHILE THE ORGANISATION PROVIDED
COMPENSATION BENEFITS
TABLE 4.1.23

PARTICULARS FREQUENCY PERCENTAGE

Excellent 36 36
Very good 21 21
Good 31 31
Satisfactory 9 9
Poor 3 3
TOTAL 100 100

CHART 4.1.23

Quality of work is improve while the organisation provied

compensation benefits
40

35

30

25
frequency

20

15

10

0
Excllent Very good Good Satisfactory Poor
Quality of work is improved while the organisation provied compensation benefits

INTERPRETATION:
From the above table shows that 36% of the respondents “Excellent” and 21% of
the respondents “Very good” and 31% of the respondents “Good” and 9% of the
respondents “Satisfactory” and 3% of the respondents “ Poor” to the statement quality
of work is improve while the organisation provided compensation benefits.

55
CLASSIFICATION BASED ON THE RESPONDENT OF THE JOB
SECURITY AND LEVEL OF SATISFACTION ARE GOOD
TABLE 4.1.24

PARTICULARS FREQUENCY PERCENTAGE

Excellent 28 28
Very good 25 25
Good 33 33
Satisfactory 10 10
Poor 4 4
TOTAL 100 100

CHART 4.1.24

Job security and level of satisfaction are good

35

30

25
frequency

20

15

10

0
Excellent Very good Good Satisfactory Poor
Job security and level of satisfaction are good

INTERPRETATION:
From the above table shows that 28% of the respondents “Excellent” and 25% of
the respondents “Very good” and 33% of the respondents “Good” and 10% of the
respondents “Satisfactory” and 4% of the respondents “Poor” to the statement job
security and level of satisfaction are good.

56
CLASSIFICATION BASED ON THE RESPONDENT OF THE WORKING
HOURS ABD LEVEL OF SATISFACTION ARE CONVENIENT
TABLE 4.1.25

PARTICULARS FREQUENCY PERCENTAGE

Excellent 36 36
Very good 26 26
Good 31 31
Satisfactory 3 3
Poor 4 4
TOTAL 100 100

CHART 4.1.25

Working hours and level of satisfaction are convenient

40

35

30

25
frequency

20

15

10

0
Excellent Very good Good Satisfactory Poor
Working hours and level of satisfacton are convenient

INTERPRETATION:
From the above table shows that 36% of the respondents “Excellent” and 26% of
the respondents “Very good” and 31% of the respondents “Good” and 3% of the
respondents “Satisfactory” and 4% of the respondents “Poor” to the statement working
hours and level of satisfaction are convenient.

57
CLASSIFICATION BASED ON THE RESPONDENT OF THE
ORGANISATIONAL SUPPORT FOR ITS EMPLOYEE’S WELFARE IS
SATISFACTORY
TABLE 4.1.26

PARTICULARS FREQUENCY PERCENTAGE

Excellent 44 44
Very good 31 31
Good 18 18
Satisfactory 4 4
Poor 3 3
TOTAL 100 100

CHART 4.1.26

The organisation support for its employee's welfare is

satisfactory
50
45
40
35
frequency

30
25
20
15
10
5
0
Excellent Very good Good Satisfactory Poor
The organisation support for its employee's welfare is satisfactory

INTERPRETATION:
From the above table shows that 44% of the respondents “Excellent” and 31% of
the respondents “Very good” and 18% of the respondents “Good” and 4% of the
respondents “Satisfactory” and 3% of the of the respondents “Poor” to the statement
organisation support for its employee’s welfare satisfactory.

58
CHI SQUARE TEST
TABLE 4.1.27
EMPLOYEE FEEL APPRECIATED FOR THEIR WORK PERFORMANCE
TO IMPROVE THE ORGANISATIONAL PERFORMANCE AND THE
REWARD SYSTEM IS VERY MUCH SATISFACTORY
H0: There is no significant relationship between the reward systems is very much
satisfactory and Employee feel appreciated for their work performance to improve the
organisational performance.
H1: There is a significant relationship between the reward systems is very much
satisfactory and Employee feel appreciated for their work performance to improve the
organisational performance.
Work Excellent Very Good Satisfactory Poor Total
performance/Reward good
system
Excellent 7 9 4 5 2 27
Very good 8 7 4 2 1 22
Good 13 7 12 3 2 37
Satisfactory 5 0 2 3 0 10
Poor 2 0 0 1 1 4
Total 35 23 22 14 6 100

Value Df Asymp. Sig.(2-sided)

Person Chi-Square 17.600 a 16 .034
Likelihood Ratio 20.487 16 .199
Linear-by-Linear .004 1 .951
Association
N od Valid Cases 100

INTERPRETATION:
From the above it is inferred that the calculated P value (0.034) is lesser than (0.05),
hence which null hypothesis (H0) is Rejected and the alternative hypothesis (H1) is
Accepted. There is a significance association between the systems is very much
satisfactory and Employee feel appreciated for their work performance to improve the
organisation performance.

59
ANOVA
TABLE 4.1.28
EDUCATIONAL QUALIFICATION AND I AM SATISFIED WITH THE
COMPENSATION BENEFITS PROVIDED BY THE ORGANISATION
H0: There is no significant difference between Educational Qualification and I am
satisfied with the compensation benefits provided by the organisation.
H1: There a significant difference between age and Educational Qualification and I am
satisfied with the compensation benefits provided by the organisation.
Std. 95% Mi Ma
Deviation Confidence n x
Mean Interval for
N Mean
Lower Bound Upper Bound

Excellent 35 3.66 .998 .16 3.31 4.00 2 5

Very good 23 4.09 .949 .19 3.68 4.50 2 5
Good 22 3.91 1.30 .27 3.33 4.49 1 5
Satisfactory 14 2.64 1.39 .37 1.84 3.45 1 5
Poor 6 3.33 816 .33 2.48 4.19 3 5

Sum of Squares Df Mean Square F Sig.

Between Groups 20.672 5 5.168 4.158 .004
Within Groups 118.078 95 1.243
Total 138.750 100

INTERPRETATION:
From the above it is table inferred that the calculated P value (0.004) is less than
(0.05), hence which null hypothesis (H0) is rejected and the alternative hypothesis (H1)
is accepted. There is a significance difference between Educational Qualification and I
am satisfied with the compensation benefits provided by the organisation.

60
FINDINGS, SUGGESATIONS AND CONCLUSION
5.1 FINDINGS FROM THE STUDY
 The researcher identifies that most of the respondents 65% are female.
 The researcher founded 33% of the respondents fall under the age group of 31 – 40
years.
 29% of the respondents come school level educational qualification.
 54% of the respondents are Unmarried.
 45% of the respondents are having working experience of 6 – 10 years.
 33% of the respondents Excellent and again 33% of the respondents Good are I am
satisfied with the compensation benefits provided by the organisation.
 The researcher identifies 33% of the respondents Excellent compensation benefits will
affect the organisational performance.
 35% of the respondents Excellent are employee feel appreciated for their work
performance to improve the organisational performance.
 The researcher find out the 43% of the respondents Excellent are organisation
communicate the compensation policies to employees.
 55% of the respondents Excellent are organisation provided equal compensation
benefits to all employees.
 The researcher identifies 32% of the respondents Excellent are organisation is
maintaining proper records for employee compensation of respondents.
 76% of the respondents are Yes in the organisation has a separate personnel department
which maintain the compensation record of employees.
 42% of the respondents Excellent are creating a good relationship between the
employee and middle management will improve the employee performance.
 The researcher find out the 36% of the respondents Excellent are extending the
compensation benefits to employees will improve their morality.
 42% of the respondents Excellent are organisation attracts, motivate and retain the
qualified employees.
 34% of the respondents Excellent are organisation have specific designed incentive
plan.
 38% of the respondent Excellent are organisation fulfil the basic need to retain their
employees.

61
 Majority of the respondents are organisation recognizing employees for their hard
work.
 37% of the respondents Good are the reward systems is very much satisfactory.
 35% of the respondents are organisation provide incentive to the employees recognize
their work.
 35% of the respondents are organisation has a prescribed systems for monitoring the
casual leave, sick leave benefits.
 67% of the respondents Yes are organisation provide the disability pay to the employee.
 36% of the respondents Excellent are quality of work is improve while the organisation
provided compensation benefits.
 33% of the respondents Good are job security and level of satisfaction are good.
 36% of the respondents Excellent are working hours and level of satisfaction are
convenient.
 44% of the respondents Excellent are the organisational support for its employee’s
welfare is satisfactory.
 From the Chi- Square test, there is a significant association between employee feel
appreciated for their work performance to improve the organisational performance and
the reward system is very much satisfactory.
 Using ANOVA, it is found that there is significant difference between the educational
qualification and I am satisfied with the compensation benefits provided by the
organisation.

62
5.2 SUGGESTIONS OF THE STUDY:
 The company need to create and improve awareness of compensation benefits to their
employees.
 Employee performance is strongly related the compensation benefits, So it should be
appraised in a short periods and the company must provide fair compensation to the
employees.
 The company has good reward system and it need to be properly communicated to the
employees.
 The company need to restructure the incentive system in order to satisfy the maximum
employees.
 The company must follow transparency in reward and compensation. This will help the
employees to understand the company follows fair policy in the above terms.
 The present administration of Reward and Compensation in the company is good. It is
advised that the company should keep this practice up.
 In a nutshell the company is doing well in terms of reward and compensation, they
should to some modification to stratify more number of employees is the organisation.

63
5.3 CONCLUSION
The results of this study have mapped a link between Reward and Compensation
and its management and the performance of employees. Employees usually do not have
the whole picture of their entitlement when it comes to compensation and this could be
because of their employer’s not providing them with the relevant policy manuals to read
and educate themselves or their own lack of interest in reading those manuals when
they are provided for them. Whichever reason can be attributed to this lack of awareness
of the total compensation package of employees to get abreast with the policies and
compensation packages as they also did same themselves.

64
REFERANCES
6.1 REFERANCES
 Nirma Sadamali Jayawardena and Darshana Jayawardena, The impact of extrinsic and
intrinsic rewarding system on employee motivation in the context of Sri Lankan apparel
sector, International Journal of Business Excellence, Volume 20, Issue 1, 2020
 Walters T. Ngwa, Effect of Reward System on Employee Performance Among Selected
Manufacturing Firms in the Litoral Region Of Cameroon, Academy of Strategic
Management Journal, Volume 18, Issue 3, 2019
 Belachew Kassahun, Reward System and its Effect on Employees Work Motivation in
One and Two Star Rated Hotels in Amhara Region, Ethiopia, Journal of Tourism,
Hospitality and Sports, Vol.40, 2019
 Zhen Zhang, Lianying Zhang, Aibin Li, Investigating the Effects of Reward
Interdependence and Nonfinancial Incentives on NPD Collaboration in Diverse Project
Teams, Vol 50, Issue 6, 2019
 Yoko Kitakaji, Susumu Ohnuma, The Detrimental Effects of Punishment and Reward
on Cooperation in the Industrial Waste Illegal Dumping Game, Vol 50, Issue 5, 2018
 Said Juma Al Darmak, Driving Innovation: Reviewing the Role of Rewards, Journal of
Human Resource and Sustainability Studies, 2017, 7, 406-415
 Ofelia Robescu and Alina-Georgiana Iancu, The Effects of Motivation on Employees
Performance in Organizations, Valahian Journal of Economic Studies, Volume:7 Issue:
2 Date: 2016
 Abdifatah Abdilahi Ali, Analysis of Extrinsic Rewards and Employee Satisfaction:
Case of Somtel Company in Somaliland, International Journal of Business
Management and Economic Research(IJBMER), Vol 6(6),2015, 417-435
 Ayesha Binte Safiullah, Impact of Rewards on Employee Motivation of the
Telecommunication Industry of Bangladesh: An Empirical Study, Volume 16, Issue
[Link] (Dec. 2014)
 Dr. Baskar , Prakash Rajkumar. K. R, A Study on the Impact of Rewards and
Recognition on Employee Motivation, International Journal of Science and Research
(IJSR), Index Copernicus Value (2014): 6.14
 Kikoito, N.K (2014). Impact of Reward Systems on Organisatio Performance in
Tanzania Banking Industy. Unpublished [Link]. Thesis, Open University of Tanzania.

65
 Osibanjo, A. O., Pavithra, S. &Adeniji, A. A. (2014). Compensation Management and
Organizational Commitment in Developing Economies: Indian Perspective, Acme,
Intellects International Journal of Research in Management, Social Science &
Technology, Vol. 8, No. 8
 Baker, G. P., Jensen, M. C., Murphy, K. J. (1988). Compensation and incentives:
Practice vs. theory. The Journal of Finance, 43(3), 593–616.
 Schultz, W. A neural substrate of prediction and reward. Science 275, 1593–1599
(1997)
 Mulder, L. B. (2008). The difference between punishments and rewards in fostering
moral concerns in social decision making. Journal of Experimental Social Psychology,
44, 1436-1443. doi:10.1016/[Link].2008.06.004
 Compensation Management and Its Impacts on Organizational Commitment 2019
 Impact of compensation management on employees’ performance 2020
 A Study on Compensation Management In An Organization 2017
 Compensation management and employee performance: Manufacturing industry in
focus 2016
 A study on compensation management with reference to IDBI federal life insurance
company private limited 2015
 A Study on Compensation Management towards Employees Satisfaction at Spectrum
Dyes & Chemical PVT, LTD. 2014
 Executive compensation, management turnover, and firm performance: An empirical
investigation 1990
 Compensation Management and Employee Job Satisfaction: A Case of Nigeria 2017
 Compensation Management and Employees Performance in the Manufacturing Sector,
A Case Study of a Reputable Organization in the Food and Beverage Industry IBOJO
2014
 Employers are downgrading their hiring criteria in this tight labor market 2019
 Compensation Management and Motivation: Cooking utensils for Organizational
Performance 2014
 The Relationship between Total Compensation and Employee Performance in the
Insurance Industry, Case of Mayfair Insurance Company Limited 2016
 A Compensation Management (Case Study at District Government of Kutai
Kartanegara) 2018

66
WEBSITES:
1. [Link]
2. [Link]
3. [Link]
4. [Link]

67
6.2 QUESTIONNAIRE AND APPENDIX
A STUDY ON EFFECTIVENESS OF REWARD AND COMPENSATION
BENEFITS AT TECHINDIA INFOWAY PRIVATE LIMITED, CHENNAI
1. Name: (optional)
2. Gender
a.) Male b.) Female
3. Age
a.) 20 – 30 years c.) 41 – 50 years
b.) 31 – 40 years d.) 51 – 60 years
4. Qualification
a.) School level c.) UG
b.) ITI/Diploma d.) PG
5. Marital Status
a.) Married b.) Unmarried
6. Working Experience

a.) Below 5years b.) 6 to 10 years

c.) 11 to 15 years
7. I am satisfied with the compensation benefits provided by the organisation
a.) Excellent c.) Good
b.) Very good d.) Satisfactory
e.) Poor
8. Compensation benefits will affect the organisation performance
a.) Excellent c.) Good
b.) Very good d.) Satisfactory
e.) Poor
9. Employee feel appreciated for their work performance to improve the
organisation performance
a.) Excellent c.) Good
b.) Very Good d.) Satisfactory
e.) Poor

68
10. The organisation communicate the compensation policies to employees

a.) Excellent c.) Good

b.) Very good d.) Satisfactory
e.) Poor

11. Organisation provided equal compensation benefits in all employees

a.) Excellent c.) Good
b.) Very good d.) Satisfactory
e.) Poor
12. The organisation is maintaining proper records for employee compensation
a.) Excellent c.) Good
b.) Very good d.) Satisfactory
e.) Poor

13. The organisation has a spate personnel department which maintain the
compensation record of employees.
a.) Yes b.) No
14. Creating a good relationship between the employee and middle management will
improve the employees performance
a.) Excellent c.) Good
b.) Very good d.) Satisfactory
e.) Poor
15. Extending the compensation benefits to employees will improve their morality
a.) Excellent c.) Good
b.) Very good d.) Satisfactory
e.) Poor

16. Organisation attracts, motivate and retain the qualified the employees
a.) Excellent c.) Good
b.) Very good d.) Satisfactory
e.) Poor

69
18. Organisation have specific designed incentive plan
a.) Excellent c.) Good
b.) Very good d.) Satisfactory
e.) Poor

17. Organisation fulfil the basic need to retain their employees

a.) Excellent c.) Good
b.) Very good d.) Satisfactory
e.) Poor
18. Organisation recognizing employees for their hard work
a.) Excellent c.) Good
b.) Very good d.) Satisfactory
e.) Poor
19. The reward system is very much satisfactory
a.) Excellent c.) Good
b.) Very good d.) Satisfactory
e.) Poor

20. Organisation provide incentive to the employees to recognize their work

a.)Excellent c.) Good
b.) Very good d.) Satisfactory
e.) Poor

21. Organisation has a prescribed system for monitoring the casual leave, sick leave
benefits
a.) Excellent c.) Good
b.) Very good d.) Satisfactory
e.) Poor
22. Organisation provide the disability pay to the employees
a.) Yes b.) No
23. Quality of work is improved while the organisation provided compensation
benefits
a.) Excellent c.) Good
b.) Very good d.) Satisfactory
e.) Poor

70
24. Job security and level of satisfaction are good
a.) Excellent c.) Good
b.) Very good d.) Satisfactory
e.) Poor
25. Working hours and level of satisfaction are convenient
a.) Excellent c.) Good
b.) Very good d.) Satisfactory
e.) Poor
26. The 0rganizational support for its employee’s welfare is satisfactory
a.) Excellent c.) Good
b.) Very good d.) Satisfactory
e.) Poor

71