Human Resource Management – HRM204

Continuous Assignment 1

BACHELOR OF TECHNOLOGY
(Aerospace Engineering)

By
Himani
(Registration No. 11904480)

TO:

Dr. Ayesha Khatun

SCHOOL OF MECHANICAL ENGINEERING

S. Roll Objectives of Topic Details Evaluation Expected

1 Indivi To test the The students need to As per Rubric: Students will be
dual understanding identify two different job able to develop
and positions from two Write Up-(30 knowledge about
Marks) relating duties and
applicability of different industries and
responsibilities
the concepts by prepare salary 1) Describing the with various
the students structure/compensation concept of components of
plan in the context of compensation compensation and
industry norms. structure and manage employee
its various performance
OR components-10
Marks,
The students are required 2) Explaining the
to complete the MOOC job positions
Certification Course. The identified by
student needs to submit the student in
the certificate and score terms of nature
generated after the of duties and
completion of the course responsibilities
to the course instructor. and
requirements
Course details- of various
Name of the course- CERTIFIED
COMPENSATION AND BENEFITS
skills – 10
MANAGER. Marks,
Offered by Organization- VSKILLS 3) Developing the
URL for
registration-https://www.vskills.in/cer compensation
tification/human-resources/certified- structure for
compensation-and-benefits-manager the identified
positions – 10
Marks.
Solution:
Compensation is a systematic approach to providing monetary value to employees in exchange for work
performed. It is a tool used by management for a variety of purposes to further the existence of the
company. It may be adjusted according to the business needs, goals and available resources.

Concept of compensation structure :

Compensation structure also known as a “wage structure” or “salary structure,” a compensation structure
is the strategy you use to determine how each employee in your company is paid. It considers
information like the length of employment, industry minimums and maximums, and merit.

Developing a clear plan and communicating it to job candidates is vital to getting the right workers on
board. It’s also a significant aspect of your company culture; having everyone know how they will be
compensated can clear up confusion and potentially limit legal issues. When people know their
compensation structure, they feel empowered to work harder for pay increases as well.

There are three basic types of pay structures:

 Traditional, or graded pay

 Market-based, or benchmarked pricing

 Broadband

Here are the key elements or components that make compensation:

1. Wages and Salary:

Wages mark hourly rates of pay, and salary marks the monthly rate of pay of an employee. It is
irrelevant of the number of hours put in by an employee working in the firm. These are subject to annual
increase.
2. Allowances:
Allowances can be defined as the amount of something that is allowed, especially within a set of rules
and regulations or for a specified purpose. Various allowances are paid in addition to basic pay.
Some of these allowances are as follows –
 Dearness Allowance – This allowance is given to protect real income of an employee against
price rise. Dearness allowance (DA) is paid as a percentage of basic pay.
 House Rent Allowance – Companies who do not provide living accommodation to their
employees pay house rent allowance (HRA) to employees. This allowance is calculated as a
percentage of salary.
 City Compensatory Allowance – This allowance is paid basically to employees in metros and
other big cities where cost of living is comparatively more. City compensatory allowance (CCA)
is normally a fixed amount per month, like 30 per cent of basic pay in case of government
employees.
  Transport Allowance/Conveyance Allowance – Some companies pay transport allowance (TA)
that accommodates travel from the employee’s house to the office. A fixed amount is paid every
month to cover a part of traveling expenses.
3. Incentives and Performance Based Pay:
Incentive compensation is performance-related remuneration paid with a view to encourage employees
to work hard and do better.
Both individual incentives and group incentives are applicable in most cases. Bonus, gain-sharing,
commissions on sales are some examples of incentive compensation.
4. Fringe Benefits/Perquisites:

Fringe benefits include a variety of non-cash payments that are used to attract and retain talented
employees and may include educational t assistance, flexible medical benefits, child-care benefits, and
non-production bonuses (bonuses not tied to performance).
These may include:
a) Company cars
b) Paid vacations
c) Membership of social/cultural clubs
d) Entertainment tickets/allowances.
e) Discounted travel tickets.
f) Family vacation packages.
g) Reimbursements
In recent years, a great deal of attention has been directed to the development of compensation systems
that go beyond just money. We can say that all the components of compensation management play a
very important role in the life of an employee.
In particular, there has been a marked increase in the use of pay-for-performance for management and
professional employees, especially for executive management and senior managers. Compensation is a
primary motivation for most employees.
5. Non-Monetary Benefits:

Non-monetary benefits include such benefits which are given in kind and not in terms of money. They
include such benefits as recognition of merit, issue of merit certificates, job responsibilities, growth
prospects, competent supervision, comfortable working conditions, job-sharing, flexi-time etc.
 Compensation Structure

Industry name: Krishna Steel Industry

Position: General Manager and Logistics Coordinator

1.) Logistics Coordinator:

A logistics coordinator is responsible for managing all aspects of shipping routes and delivery,
specifically with regard to customer satisfaction. As a logistic coordinator, customer satisfaction is a
priority as this is how business remains successful. Additionally, a logistic coordinator is well-versed in
supply management principles and practices. Responding immediately to customer questions and
complaints and notifying them of any delays in the delivery schedule is essential to this position.
Logistics coordinators usually work in a variety of industries within the logistics department.

 Roles and Responsibilities:

 Manage orders and arrange stocking of materials and equipment to ensure they meet needs

 Plan and track shipment of final products according to customer requirements

 Communicate with suppliers, retailers and customers to achieve profitable deals and mutual
satisfaction

 Maintain logs and records of warehouse stock and executed orders

 Recruit and coordinate logistics staff according to availabilities and requirements

 Prepare accurate reports for upper management

 Arrange same-day deliveries whenever possible

 Prepare accurate invoices

 Required Skills:

 Bachelor's degree in Logistics or Business Analytics (preferred)

 5+ years' experience in customer service or logistics management

 Ability to work with little supervision and track multiple processes

 Knowledge of laws, regulations and ISO requirements

 Computer-savvy with a working knowledge of logistics software (ERP)

 Previous customer service experience

 Excellent communication and interpersonal skills

 Keen on working in a fast-paced environment

2.) General Manager:

Roles and Responsibilities:

 To formulate short-term and long-range objectives, plans and programs for the business area at
plant and to ensure that corporate plans are materialized. To operate and run the existing Steel
manufacturing plant.

 Working on vision to work on making the facility world class, incorporating best layout and
manufacturing practices

 Head end to end operations: from Product Development, to delivery to customers. with defined
business outcomes, with culture of continual improvement.

 Production Planning in line with sales plan

 Regular interactions with sales/customer to develop product of required specifications and cost.
Ensuring deliveries and quality meeting customer expectations.

 Production with desired level of productivity, Quality, cost, etc.

Required skills:

 Manufacturing process.

 Experience in Melting (Multiple furnaces)

 Knowledge of steel manufacturing: TMT, nails, mesh

 Mind set of setting right processes

 Understanding of end to end cost.

 Use of IT tools to run operations efficiently.

Below is the compensation structure of these two positions:

Compensation Structure :
Table 1. Compensation details (all components in INR):

Component Category / Post Logistic Coordinator General Manager

1.) Fixed Compensation

Basic Salary 24,500 40,000

2.) Performance Pay

Monthly Performance Pay 2,900 5,500

Quarterly Variable Allowances 3,100 3,000

3.) Annual Components

Health Insurance NA NA

Provident Fund 2,940 4,500

Gratuity 3,060 6,000

Total of annual components 6,000 10,500

TOTAL GROSS Rs.36,500 Rs.59,000

*Amount depicted will be paid-out on a quarterly basis.

Table 2. Defined structure of additional allowances (all components in INR):

Component Category / Post Logistic Coordinator General Manager

House Rent Allowance 2,640 4,000

Conveyance Allowance 1,400 2,500

Sundry Medical Reimbursement 1,500 3,500

Food Coupons 3,000 5,000

Personal Allowance 1,640 2,500

Leave Travel Assistance 1,320 3,000

TOTAL GROSS Rs.11,500 Rs.20,500

Industry Name: Infosys private limited

1.) Technical Support Executive:

As a Technical Support Executive, your responsibility is to manage the deployment of new technologies
to the executive office without any disruption and refresh new infrastructure. You would also have to
schedule preventive maintenance for LAN networks and devices and may also need to train end-users on
network connectivity issues.

 Role and responsibilities:

 Project manage deployment of new technologies and refresh of existing infrastructure with
minimal/no disruption to the executive office.

 Train end-users in internet connectivity, email and Wi-Fi connectivity issues.

 Assist with setting up VPN and connecting to network printers.

 Plan & schedule preventive maintenance of LAN network services and devices.

 Diagnose LAN drop issues concerning routers and switches errors and connectivity issues.

 Handle live, sensitive data of customers using SQL, PL/SQL base on UNIX/AIX.

 Respond to customer inquiries about SaaS products through live chat, email, and phone.

 Work with a team of 15 desktop individuals who give support to three different building on
campus.

 Form complex SQL queries joining multiple tables to pull reports for business users base on
their requirement.

 Perform daily system monitoring, verifying the integrity and availability of all hardware and
systems.

 Required Skills:

 Customer service

 Technical Support

 Hardware and Troubleshoot

 Customer Relationship Management

 Setup and Desktop

 Executive Support
2.) General Manager:

A general manager (GM) is responsible for all or part of a department's operation or the company's
operations, including generating revenue and controlling costs. In small companies, the general manager
may be one of the top executives.

 Roles and Responsibilities:

 Overseeing daily business operations.

 Developing and implementing growth strategies.

 Training low-level managers and staff.

 Creating and managing budgets.

 Improving revenue.

 Hiring employees.

 Evaluating performance and productivity.

 Analyzing accounting and financial data.

 Researching and identifying growth opportunities.

 Generating reports and giving presentations.

 Required Skills:

 Degree in business management or a masters in business administration.

 Good knowledge of different business functions.

 Strong leadership qualities.

 Excellent communication skills.

 Highly organized.

 Strong work ethic.

 Good interpersonal skills.

 Meticulous attention to detail.

 Computer literate.

 Proactive nature.

Below is compensation structure of these positions:

Component Category / Position Technical Support Executive General Manager

Component of Salary
(Per annum)

Basic Salary 1,21,200 2,00,000

Dearness Allowances 13,200 23,000

House Rent Allowances 87,816 1,50,000

Transport Allowance 21,960 35,600

Leave Travel Allowance 54,888 85,000

Medical Reimbursements 12,000 20,000

Entertainment Allowances 12,000 20,000

GROSS SALARY Rs. 3,23,064 Rs. 5,33,600

Benefits Technical Support Executive General Manager

Provident Fund 14,544 23,500

Laptop 60,000 80,000

Medical Insurance 10,000 18,000

TOTAL BENEFITS Rs. 84,544 Rs. 1,21,500

GROSS SALARY + TOTAL 4,07,608 6,55,100