A REPORT ON

COMPENSATION MANAGEMENT

BY
SAROJ MUNI MURMU
(20BSP2131)
 REPORT
ON

COMPENSATION MANAGEMENT

BY
Saroj Muni Murmu
(20BSP2131)
ROLLICK

A Report submitted in partial fulfillment of requirements of IBS

GURGAON.

COMPANY GUIDE –
MRS. SABITA SINHA
AUTHORISATION
This is to authorize that the project report titled –
“COMPENSATION MANAGEMENT ”. This is a bona fide
record and an original work done by SAROJ MUNI
MURMU Enrolment Id – 20BSP2131, PGPM 2020-2022,
IBS Gurgaon, during her Summer Internship Program at
ROLLICK . This internship program has lasted from 20th
Feb 2021- 22nd May, 2021. This work is submitted in the
partial fulfillment of the requirement of PGPM program of
IBS Gurgaon .

A copy of this report has been sent to my company guide for

approval. This work has not been submitted to any other
university or Organization for assessment or award.
 ACKNOWLEDGEMENTS
A project work is a mixture of knowledge, creativity and
experience. Firstly, I would like to thank IBS Gurgaon for
giving me an opportunity to be engrossed in such an
experience I would like to thank, ROLLICK for thinking me
capable enough for this summer internship program. They
have also provided me an exposure to the corporate world,
which has been a great experience for me. It has also
enabled me to enhance my skills and learn things
practically.

I would full heartedly like to thank my company guide,

MRS. SABITA SINHA , HR at ROLLICK . Because of her,
this experience has been full of learning. I would also like to
thank her for constant support and motivation in completing
my assigned projects. She has helped me expand my
knowledge in HR and specially in the field of compensation
management . I have tried to reflect her valuable
contribution and guidance through my project.

Last but not the least, I would like to thank my family and friends who
have been a support throughout.
TABLE OF CONTENTS

s.no. Topic Page no.

1. Executive summary 1-3

2. An overview of the company 4-5

3. SWOT analysis 6

4. Introduction of compensation 7-8

management
5. Objectives of compensation management 9-10

6. compensation management in rollick 11-12

7. Compensation act in rollick 13-15

8. Data analysis 16-19

9. Graphical presentation of data analysis 20- 30

10. Findings 31

11. Recommendation 32
12. conclusion 33

13. Refrences 34
EXECUTIVE SUMMARY
Name – Saroj Muni Murmu

Enrollment ID– 20BSP2131

Email ID – [email protected]

Organization Description –

Company took the form 30 years ago , Rollick was formed with the range of frozen
desserts .

Today the company strive to make it better by providing state of the art quality
controlled laboratory ,pure ingredients and carefully selected flavours .The
endeavour is further strengthen with ISO 22000 certified automated production
units in Ranchi & Kolkata and a network of over 800 distributors making it largest
manufacturer in eastern India.

 Name – Saroj Muni Murmu

 Nature of Business – distributor /channel partner

Objectives of SIP
 Getting information regarding the compensation management strategy
existing in the company
 Seeing whether a particular compensation is applicable in the industry
 Finding out the attitude of employee after receiving the fair
compensation .

Background:

Training has been provided for different compensation strategy that has been
practiced in the factory for long. Fair and transparent compensation is practiced in
the factory so that employee feel motivated to perform better in the organization.
Research Methodology:

 As I was associated with the association for most recent three months and
work there. I had the option to gather information from the essential
sources .I have additionally utilized auxiliary sources .occasionally I have
looked to changed authorities to discover applicable realities even in
informal habits like in mid-day break and once in a while on a call .

 Secondary information is gathered by from site of organization , critical

Achievements :
 I have come to about different compensation strategy like
employee compensation Act, factories act under the ministry of
labour and employment .
 I have also learned about how fair and transparent compensation
strategy change the attitude of employee .
An overview of Rollick
It was established in 1898, it is one of the largest manufacturers of frozen desserts
in Eastern India, with state of the art manufacturing units in Kolkata and Ranchi .It
has a fast growing network of over 500 distributors across the region. Rollick’s
product range includes a variety of ready to eat cups, cones, take home tubs and
bull packs. These products are available in more than 20,000 retail outlets and 600
pushcarts.

Rollick has unique range of products catering to all tastes and preferences. Selling
within a price range of Rs 5- 50 for a single consumption pack ,the aim is to be
affordable by all.

Products offered

Cones

 Nimbu takatak
 Rabdi kulfi
 Asli aam
 Mango duet
 Nutty roll
 Double chocolate
 Fruit and nut chocobar
 Butter scoth chocobar
 Chocobar
 Chocbar mini
 Rollicop cola
 Rollipop litchi
 Rollipop mango
 Rollipop orange
Cups
 Butterscotch crunch
 Nolen Gur
  Mango tango
 Creamy vanilla
 Mango magic
 Strawberry
 Two in one

sundaes

 black forest
 tutti fruity
 chocohip
 mango
 butterscotch
 shahi rabdi

cones
 belgian chocolate
 choco brownie
 fruit n nut
 American nuts
 Butterscotch crunch
 Choco fudge
 Mango magic
 Two in one
 Crunchy chocolate mini
 Butter delight mini
SWOT analysis
Introduction
Compensation refers to the monetary or non-monetary rewards received
by employees in exchange for their services.
Compensation management, also known as pay and salary
administration, pay management, or reward management, is the process
of creating and administering a whole compensation package.
“Direct cash payments, indirect payments in the form of employee
benefits, and other forms of compensation are all included in
compensation.
Cash and kind are the two important form in which compensation can be
received. Compensation is also called as money received in exchange for
work done or services rendered, including other benefits.

Types of compensation
There are three types of compensation –

 Non monetary compensation

 Direct compensation
 Indirect compensation

 Non monetary compensation

It includes all the intangible benefits that an employee receive in exchange
for their work done. For example –career development, recognization, good
working conditions in the organization.

 Direct compensation
Direct compensation includes the salary that is being paid to the employees along
with other health benefits.

Direct compensation consists of pay acquired in the form of wages, salaries,

bonuses, and commissions.

These include the basic salary, house rent allowances, medical benefits, city
allowances, conveyance, provident funds, etc. It also includes bonuses, payments
for holidays, etc.

 Indirect compensation

It is a kind of non-monetary benefits an employee receive from the organization.

It includes everything from legally required public protection programs such as

Social Security to health insurance, retirement programs, paid leave, childcare, or
moving expenses.

Rewards and recognitions, promotions, responsibility, etc., are the factors give
confidence to the employees and motivate them .it also assures employee that their
efforts are being recognized.
 OBJECTIVES OF COMPENSATION
MANGEMENT

Objectives of compensation management is as follows –

 Acquired qualified personnel

Compensation must be high enough to attract the applicants. It is one of

the main objectives of compensation management to attract the right
employee for right position.

 Retain current employees

Whenever there is fall in salary of the employee, the case of employee

turnover increases.

Employee perform their duty so as to get paid. If pay levels are not up to
the mark, some employees may leave the firm. To retain these
employees, pay level must be competent enough to retain the talented
customer.

 Reward desired behavior

Pay should be such that it reinforce employee to repeat the desired

behavior in the future. Compensation management pay for better
performance, loyalty, experience, responsibility, and other
behaviors and it is only achieved through effective compensation
management.

 Control costs
 Rational compensation system should be adopted in the
organization so that it is able to retain and obtain worker at a
reasonable costs. Without systematic compensation plan worker
can be underpaid or overpaid

 Comply with legal regulations

Compensation management abide by the rules laid down the

government and ensures employers comply with it.

 Motivating personnel

Compensation management objectives is to motivate employees for

higher productivity. It ensures that each employee perform better in a
most efficient and effective manner.
Compensation management in Rollick
There are many compensation policies that an organization follow. It is
one of most important policy without which an employee is unable to
participate in work effectively. Rollick undertakes different type of
compensation policies so that they can persuade the employee to have a
better productivity /outcome.
Compensation given by rollick are as follows –

 Salary
Rollick pay the employee on the basis of their performance and in
turns it motivate the employee to perform better. It has been
observed that employee working in the company are highly
satisfied due to convenient salary structure .its salary are review
once in a year and it is one the key motivating factor to perform
better .HR of the company started to make salary by 15 th of the
each month and by 25th each and every employee are paid on their
account which they have open while joining the company.
 Bonus
Rollick offer bonus on the basis of employee performance and it
also depends on the annual turnover of the company.
 Travel allowance
Rollick provides travel allowance to their employees. If any
employee travel any place in different state or country regarding
company prospects, employee will get remuneration that cost is
verified by HR personnel.
 Maternity leave
It is a paid leave it is granted by the company authority to an
employee for a maximum three months period at a time.
 Disability leave
 If any employee faces accident, then they are provide leave by the
company which is called accidental leave .it is paid leave.

 House rent allowance

The company provides house rent allowance to permanent
employee who are working at managerial position in the
organization and it also depends on the different location of the
country .i.e, 50 percent of basic salary in metro city and 40 percent
of basic salary in non – metro city. As Rollick is located in Ranchi
it provides HRA which is 40% of basic salary.
 Medical allowance
If any accident occur to employee during discharge of their duty in
the organization they are liable to get compensated for it. Company
covers expenses for impatient hospitalization treatment upto sum
insured ,it also covers pre hospitalization and post hospitalization
expenses upto 30 days & 60 days respectively .
Compensation Act in Rollick
 Employee compensation act
Employee compensation act 1923 says it provide payment in the
form of compensation by the employers to the employee for any
injuries they have suffered during an accident.
In case of death of the person – an amount equal to fifty percent of
the monthly wages of the deceased employees multiplied by
relevant factor or an amount of one lakh and twenty thousand
rupees whichever is more .
In case of total disablement result from the injury – an amount
equal to sixty percent of the monthly wages of the injured
employees multiplied by the relevant factor or an amount of one
lakh and twenty thousand rupees, whichever is more.

I would like to explain this Act with the help of an case study that
was occurred in 2017.
There was boy named Mohan in the factory. He used to operate a
machine he was good at it. Once he was using the machine and he
somehow got distracted he had cut his little fingers it was bleeding
He was compensated by the company .company had taken full
responsibility for his medical facilities and charges.

 payment of wages act

As the factory is ice cream company the demand for the product is
more in summer season hence ,the company ask for additional
employee as a daily wage worker either directly or through sub
contractor , they employee 20 to 15 worker from outside during
summer season.
 Payment of Wages Act says that worker are to be paid before the
expiry of the seventh day .This Act was implied to the factory in
which less than 1000 person are employed.
It was also said that any person who are terminated on behalf of
the employer, the wages earned by him shall be paid before the
expiry of the 2n day from the day on which his employment is so
terminated .

 The employee provident fund act

The employee provident fund Act
This Act is applicable in factory in which there are 20 or more than
20 people are employed.
This Act is to provide for the institution of provident fund, pension
fund and deposited link insurance fund for employee in factories
and other establishment provided that the central government may,
after giving not less than two months notice of its intention so to
do by notification in the official Gazette, apply the provision of
this Act to that establishment on and from the date of such
agreement or from any subsequent date specified in such
agreement.
 In accordance with factories act ,normal working hour is equal to 9
hours per day which is 48 hours per week ,working hours
mentioned for young workers are 4.5 hours per day .if the worker
worked beyond this hour ,rollick compensate for overtime work i.e
, twice the regular rate of his ordinary pay.
 Under the factories act ,employee get compensation under
extraordinary circumstances where worker may perform work on
weekly rest days and public holidays under extraordinary
circumstances .if the employee lose the chance to weekly rest days
due to exemption granted to an establishment under section 52 of
 the factories Act, these workers are liable to be provided with
compensatory rest days within the following two months.

 Payment of bonus act

The payment of bonus act, 1965 provides for the payment of bonus
to persons employed certain establishment, that employ 20 or more
persons, on the basis of profits or on the basis of production or
productivity and matters connected there with.
The minimum bonus of 8.33 % is payable by factory and
establishment under section 10 of the Act .the maximum bonus
including productivity linked bonus that can paid in any
accounting year shall shot exceed 20 % of the salary /wage of an
employee under section 31 A of the Act .
Data analysis
Dear participant, thank you for taking part in this study to help improve the
understanding of employee benefits at Rollick.

(Note: Information shared by individuals is confidential and will be only used

for the purpose of study)

DEPARTMENT:

JOB TITLE:

LEVEL:

1.My benefits meet my (and my family’s) needs well.

 1
 2
 3
 4
 5
2. I have a good understanding of compensation policies and practices that affect me.

 1
 2
 3
 4
 5

3. I know who to talk to if I do not understand my benefits.

 1
 2
 3
 4
 5
4. The wellness benefits offered by my company have improved my physical and/or mental
health.

 1
 2
 3
 4
 5

5. I would prefer my company provides (more/better) wellness programs.

 1
 2
 3
 4
 5

6. I am compensated fairly.

 1
 2
 3
 4
 5

7. I understand our benefits program.

 1
 2
 3
 4
 5

8. Our organization provides competitive compensation and benefits packages compared to

others
in our industry.

 1
 2
 3
 4
 5

9. My organization has expressed interest in my health and wellness.

 1
 2
 3
 4
 5

10. My manager encourages me to use our health and wellness programs.

 1
 2
 3
 4
 5

11. I would like to know more about the compensation and benefits packages available to me.

 1
 2
 3
 4
 5
Research Analysis

The following data analysis was a close ended, Likert scale questionnaire.

No. of respondents: 40

Figure 1: My benefits meet my (and my family’s) needs well.

Chart Title
5

4 22

3 10

2 8

0 5 10 15 20 25

Explanation – 55 % percent of employee strongly believed that their benefits meet their need
whereas 20 % employees disagree believed that their benefits are not met .
Figure 2:I have a good understanding of compensation policies and practices that affect me.

4 32

3 8

0 5 10 15 20 25 30 35

Explanation –

80 percent of employee agree that they have good understanding of compensation policies
practices that affects them whereas 20 percent are still unaware .
Figure 3:I know who to talk to if I do not understand my benefits.

4 33

3 7

0 5 10 15 20 25 30 35

Explanation – 82 % employees agree that they know who to talk to whenever there is confusing
regarding the benefits whereas 17 % are still unsures about it .
Figure 4:The wellness benefits offered by my company have improved my physical and/or
mental health.

5 10

4 27

3 0

2 3

0 5 10 15 20 25 30

Explanation – 67.5 % employees agrees that wellness benefit have improved its their physical
and mental heath whereas 7.5 % strongly disagree with the statements.
Figure 5:I would prefer my company provides (more/better) wellness programs.

0 5 10 15 20 25

Explanation – 57.5 % of employee are unable to decide whether the company should prefer more
better welleness program whereas,5% of employees strongly disagree with statement .27.5 % of
employees agree that company should offer better wellness programs .
Figure 6:I am compensated fairly.

4 30

3 8

2 2

0 5 10 15 20 25 30 35

Explanation – very few that is 5 % of employees are not satisfied with the salary whereas 75%
employees are satisfied with salary offered.
Figure 7:I understand our benefits program.

4 28

3 12

0 5 10 15 20 25 30

Explanation – 70% of employees understand the benefits programs whereas 30% employees are
unable to understand the benefits programs
Figure 8:Our organization provides competitive compensation and benefits packages compared
to others in our industry.

4 20

3 10

2 10

0 5 10 15 20 25

Explanation – 50 % employees agree that company do provide competitive compensation and

benefits packages and 25% employees does not agree with the statement whereas remaining 25%
are undecided about the competitive and benefits packages.
Figure 9:My organization has expressed interest in my health and wellness.

5 10

4 15

3 5

2 10

0 2 4 6 8 10 12 14 16

Explanation – 37.5 of employees agrees that their employers had shown interest in their health
and wellness whereas 25% percent disagree with the statements .12.5 % are unsures about the
this statement .
Figure 10:My manager encourages me to use our health and wellness programs.

4 27

3 13

0 5 10 15 20 25 30

Explanation – 67.5% agrees that their managers encourages them to use health and wellness
programs and remaining 32.5% are unsures about the statements.
Figure 11:I would like to know more about the compensation and benefits packages available to
me.

Chart Title
5 12

4 23

3 3

2 2

0 5 10 15 20 25

Explanation –

30 % employees are interested to know about compensation and benefits packages available to
them &57.5 % strongly agrees with the statement .whereas 5% are employees are don’t wanna
know about the compensation and benefits packages available to them and 7.5 % are unaware of
this .

Strongly Disagree Undecided Agree Strongly agree

disagree
1 2 3 4 5

FINDINGS
  55.5 % employees believed that their benefits meet their needs
well whereas 20 % employees disagrees that their benefits meet
their needs
 Most of people in the organization are aware of compensation
policies and practices that effects them where only a small 20 %
people are still unaware.
 Small percentages of people i.e., 17 %are unsures about whom to
talk to when never there is confusion regarding the benefits
 Wellness benefits have improved the mental and physical health of
employee (67.5%) whereas 7.5 % disagree .
 More than half of people are unaware whether the company should
offer more wellness programs
 Most of the people working in the organization are satisfied with
the salary offered .
 Half of the believed that company provide compensation and
benefits packages whereas 25 % are unaware about it and the
remaining 25% disagree with the statement .
 Only 37.5 % percent of employers have shown interest in their
heath whereas 25% disagree with the statements.
 Most of employee are interested to know about compensation and
benefits packages available to there are very few employee who
are unaware or disagree with the statements.

Recommendations
  Employers should show interest in the employee health and
wellness program this will make them feel appreciated and
motivated and this lead to better performance in the organization.

 Company should provide such benefits to their employees so as it

meet their need, there are many employees whose benefits does not
meet their needs .
 Only half people agrees that they know about the fact that
company provide competitive compensation and benefits packages
whereas other half disagree or other are still unaware about it. To
fully this potential company must ensures each and every
employee must know about compensation benefits that an
organization is providing .

Conclusion
I am indeed grateful about the opportunity given to me to work in HR
devision of ROLLICK .I think it is significant policy of ICAFI
BUSINESS SCHOOL to make the internship program compulsory for
graduation . I have been involved with the rollick for three month in city
of Ranchi and during this period I have learned different hr practices and
policies in the company. For my report I have in depth studied the
compensation management in the organization .I came to know about
the different types of compensation policies and different types of
compensation act that is being provided in the company .Rollick ensures
that fair compensation policy is being implemented in the organization
so that employee feel motivated and satisfied to perform better. Finally, I
would like to mention I was able relate all my academic knowledge with
real environment which proves to be highly helpful for my future career
.

REFRENCES
 https://www.coursehero.com/file/p5bhjgj/Conclusion-
Compensation-incentives-benefits-and-safety-health-concern-is-
an/
 https://labour.gov.in/list-enactments-ministry
 https://www.economicsdiscussion.net/human-resource-
management/compensation-management/32258
 https://www.iedunote.com/compensation-management