A

MINI PROJECT REPORT

On
"STUDY OF COMPENSATION MANAGEMENT
TATA MOTORS"
Submitted to Dr. A.P.J. Abdul Kalam Technical University,
Lucknow in the partial fulfilment of the requirement for the
award of the degree of

MASTER OF BUSINESS ADMINISTRATION

Session-2021-2023

Under the guidance of: Submitted By:

Mrs. Ritu Mittal Shruti Jain
(Faculty of MBA Department) MBA 2nd Semester
Roll no: 2100850700045

S.D. COLLEGE OF MANAGEMENT STUDIES, MUZAFFARNAGAR

(Affiliated to Dr. A.P.J. Abdul Kalam Technical University, Lucknow)
 CONTENT

Page No.
1) Acknowledgement

2) Declaration

3) Introduction of Topic

4) Objective of Study

5) Company Profile

6) Research Methodology

7) Scope of Study

8) Theoretical Framework

9) Data Analysis

10) Findings

11) Recommendations and Suggestions

12) Conclusion

13) Limitations

14) Bibliography
 ACKNOWLEDGEMENT

I take this as an opportunity to thank with bottom of my heart all those without whom the
journey of doing my project would not have been as pleasant as it has been to me. Working on
my project was a constant learning experience with all sweat and tear which was its due but
not without being richly stimulating experience of life time. I am very thankful to for giving
me their valuable advice and guidance towards fulfilment of the project.

For any project to be a success, it is very important to get the right guidance and support which I
got from my Mrs. Ritu Mittal, ASSISTANT PROFESSOR of MBA Department
S.D. College of Management Studies, Muzaffarnagar. I express my gratitude to my faculty guide
for inspiring me throughout the project.

I want to express my deep gratitude to our institution, for giving me the opportunity to
undertake this project and enhance my knowledge. Finally, I would like to convey my heartiest
thanks to all my well-wisher for their blessing and co-operation throughout my study. They
boosted me up every day to work with a new and high spirit.

SHRUTI JAIN
 DECLARATION

I am SHRUTI JAIN student of MBA, S.D. College of Management Studies here by declares that
the project report titled “STUDY OF COMPENSATIONMANAGEMENT TATA Motors.”
is completed and submitted under the guidance of “Mrs. Ritu Mittal, ASSISTANT
PROFESSOR of MBA Department” is my original work.
The imperial finding in this report is based on the data collected by me. This project has been
submitted to AKTU, LUCKNOW or not any other university for the purpose of compliance
of any requirement of any examination or degree.

SHRUTI JAIN
Roll No.2100850700045
MBA
 INTRODUCTION OF COMPENSATION MANAGEMENT

Compensation Management is an integral part of the management of the organization.

Compensation is a systematic approach to providing monetary value to employees in exchange
for work performed. Compensation may achieve several purposes assisting in recruitment, job
performance, and job satisfaction. To be effective, the managers must appreciate the value of
competitive pay, their human resources, and have an investment view of payroll costs. It is of
prime importance for an organization to maintain pay levels that attract and retain quality
employees while recognizing the need to manage payroll costs.
The literal meaning of compensation is to counter-balance. In the case of human resource
management, compensation is referred to as money and other Benefits received by an employee for
providing services to his employer. Money and benefits received may be in different forms base
compensation in money and various benefits, which may be associated with employee's service to
the employer like provident fund, gratuity, insurance scheme and any other payment which the
employee receives or benefits he enjoys in lieu of such payment.
"Compensation includes direct cash payments, indirect payments in the form of employee
benefits and incentives to motivate employees to strive for higher levels of productivity”
Compensation is a tool used by management for a variety of purposes to further the existence
and growth of the company.
 OBJECTIVE OF THE STUDY

This project attempts to understand the objectives :-

 To understand in details how to establish pay rates to different level of employee.

 To understand the impact of compensation management on performance level.

 A comparative study of the compensation management strategies followed in
different TATA Motors.
 COMPANY PROFILE

Profile

Established in 1945, TATA MOTORS is India's largest and only fully integrated
automobile company. TATA MOTORS began manufacturing commercial vehicles in
1954 with a 15-year collaboration agreement with Daimler Benz of Germany. Since 1969,
the company's products have come out of its own design and development efforts.
Today TATA MOTORS is India's largest commercial vehicle manufacturer with a 59-per
cent market share and ranks among the top six manufacturers of medium and heavy
commercial vehicles in the world. TATA MOTORS is one of the largest companies in the
TATA Group with total income of US$ 2.35 billion*. More than 3cTATA vehicles ply on
Indian roads making TATA a dominant force in the Indian automobile industry.
TATA MOTORS is India's only fully integrated automobile manufacturer with a portfolio
that covers trucks, buses, utility vehicles and passenger cars. It would be no exaggeration
to say that TATA MOTORS provides the wheels for India's growth. TATA MOTORS has
the unique distinction of giving India its first and only indigenously built passenger car -
The TATA Indica and the premium feature sedan - The TATA Indigo. The Indica,
launched in 1998, reached the 2s, 50,000 sales mark within 52 months of launch. *2015-
16

Areas of business
TATA MOTORS' product range covers passenger cars, multi-utility vehicles and light,
medium and heavy commercial vehicles for goods and passenger transport. Seven out of
10 medium and heavy commercial vehicles in India bear the trusted TATA mark.

Commercial vehicle business unit

The company has over 130 models of light, medium and heavy commercial vehicles
ranging from two tonnes to 40 tonnes, buses ranging from 12- sectors to 60 sectors,
tippers, special purpose vehicles, off-road vehicles and defence vehicles.
 Company profile and its Products

As part of the TATA Group, TATA Engineering's philosophy on Corporate Governance is

founded upon a rich legacy of fair and transparent governance practices, many of which were in
place before they were mandated. The Corporate Governance philosophy has been further
strengthened with the adoption, a few years ago, by the Company of the TATA Business
Excellence Model and the TATA Code of Conduct, and the adoption, last year of the
requirements under Clause 49 of the Listing Agreement with the stock exchanges.

Manufacturing-
TATA MOTORS owes its leading position in the Indian automobile industry to its strong focus on
indigenization. This focus has driven the Company to set up world-class manufacturing units with
state-of-the-art technology. Every stage of product evolution - design, development,
manufacturing, assembly and quality control, is carried out meticulously. Its manufacturing plants
are situated at Jamshedpur in the East, Pune in the West and Lucknow in the North.
Jamshedpur:
This was the first unit of the Company established in 1945 and is spread over an area of 822 acres.
It consists of 3 divisions - Truck, Engine (including the Gear Box division) and Axle.
Pune:
The Pune unit is spread over 2 geographical regions- Pimpri and Chinchwad and has a combined area
of around 510 acres. It was established in 1966 and has a Production Engineering Division.
Lucknow:
Established in 1991 and covering an area of 600 acres, the Lucknow Plant was established to
assemble Medium Commercial Vehicles (MCVs) to meet the demand in the Northern Indian market.
 RESEARCH METHODOLOGY

RESEARCH DESIGN

INTRODUCTION

A Research Design is the framework or plan for a study which is used as a guide in collecting and
analysing the data collected. It specifies the methods and procedures for acquiring the information
needed to conduct the research effectively.

RESEARCH METHODOLOGY

TYPES OF DATA COLLECTED

There are two types of data used. They are primary and secondary data. Primary data is
defined as data that is collected from original sources for a specific purpose. Secondary data
is data collected from indirect sources.

PRIMARY SOURCES
Questionnaire consists of a set of questions presented to respondents. Because of its
flexibility, it is by far the most common instrument used to collect primary data.

SECONDARY SOURCES
These include books, the internet, the company website etc
 SCOPE OF COMPENSATION MANAGEMENT

Compensation management helps to determine the relative worth of a job in an organization

in a systematic, consistent and accurate manner. It also helps in estimating the basic pay for
each job in accordance with the importance of the job in the organizational hierarchy once a
basic pay is determined, the reward, incentives and benefits attached worth the pay, positions
and performance are also determined. The basic wage, incentives and rewards and benefits,
together form the compensation package of an employee.
 SWOT ANALYSIS

Strength-
o Superior customer service vs. competitors.
o Great Brand Image
o Products have required accreditations.
o High degree of customer satisfaction.
o Good place to work
o Lower response time with efficient and effective service.
Weakness-
o Some gaps in range for certain sectors.
o Customer service staff needs training.
o Processes and systems, etc.
o Management cover insufficient.

Opportunities -
o Profit margins will be good.
o Could extend to overseas broadly.
o New specialist applications.
o Could seek better customer deals.
o Fast-track career development opportunities on an industry-wide basis.
o An applied research centre to create opportunities for developing techniques to provide added-
value services.
Threats-

o Legislation could impact.

o Great risk involved
o Very high competition prevailing in the industry.
o Vulnerable to reactive attack by major competitors.
o Lack of infrastructure in rural areas could constrain investment. High volume/low-cost market
is intensely competitive.

z
 Data Analysis and Interpretation

QUESTIONNAIRE FILLED BY EMPLOYEES

1. What types of compensation are available?

Analysis:
There are two type of compensation are available are direct or indirect compensation. Direct
includes Base Pay, Commissions, Overtime Pay, Bonuses, Travel/Meal/Housing Allowance and
indirect compensation includes vacation, leaves, retirement, taxes.
2. Who handle the compensation management department in your organization?
Analysis:
The manager handle the compensation management department in their organisations.
3. Are you satisfied with the compensation you receive
A) YES B) NO

Analysis-
From the chart given above we can clearly see that 80% of employees are satisfied with the
compensation they receives & only 20% of employees are dissatisfied with the compensation
they receive.
4. What do you think that TATA MOTORS is providing better compensation package to
the employees.
A) YES B) NO
If “NO” than which organization do you think?
Analysis:
Yes, TATA MOTORS is providing better compensation package to the employees out of 10
employee % of employees are satisfied with the compensation they get and % of employee
are dissatisfied with the compensation provided by the company.
5. Is there different type of compensation for different type of services
a) YES b) No

Analysis:
Yes, there are different types of compensation for different type of services like direct and
indirect compensation provided to the employee of the organization for increasing their
motivation and retention of employees.
6. Is cash still king in employee compensation.

a) Yes b) No
Analysis-
From the chart given above we can clearly see that the cash is still king there because
everyone is satisfied with the monetary motivation and not by non-monetary motivation.
Here we can see that 90% of employees are satisfied with monetary value rather than.

7. Is Compensation based more on group performance and less on individual contribution.

a) Yes b) No

Analysis-
In this organization compensation is based more on individual contribution because every
employee is single entity there and they are judge on the basis of self performance.
8. In your organization employees receive effective performance appraisal.

a) Yes b) No

Analysis-
Yes, in our organization employee receive effective performance appraisal because it give
pleasure to the employee by rewards and they also get motivated which leads to the effective
performance. It enhances effectiveness of employees and boosts the confidence level of
employees.

9. Are you getting training for improving the performance.

a) Yes b) No
Analysis-
Yes, training help in improving the performance of employee. It helps in developing skills
motivation level of employees. It also provides practical knowledge. It is necessary for the
organization to provide training to their employees for better performance and update
employee time to time. It helps in increase in the performance & motivation level of
employee and also enhance effectiveness of employees.

10. Are you free to give ideas to the higher management.

a) Yes b) No
Analysis-
Yes, the employees are free to give ideas and suggestions to the higher management. By this
new and different ideas are bring out of the box and this help in taking better decision which
may be beneficial for the organization. It also boosts the confidence level of employees and
their ideas are entertained so they get motivated also
 FINDINGS
o The compensation management policy is good in TATA Motors.
o The employee of the organization is satisfactory to the employees.
o The employees are motivated because of the environment of the organization.
o The products of TATA Motors have good credibility in the region.
 CONCLUSION

It is easy to analyse the short-comings of and organization and an accordance to that training
programmes can be designed. Moreover, these programmes must be designed as per the
requirement of the company. A review of training programmes timely surveys checks and
records must be maintained learning environment provided to the workers and managers
must be appropriate and adequately supplied with the necessities of the programmes for eg.
Chart, classrooms and study materials. The trainee should be interviewed and their response
and suggestion should be noted.
Feedback is an effective method by which efficiencies and deficiencies of the training
programmes can be viewed. Personnel Department must implement the good

suggestions.

Appropriate works standard can be achieved through proper training programmes either they
are on the hob or off the job. As training programmes are expensive so the organization must
reframe them in accordance to the policies and procedures.
 Limitation Of Compensation Management

o There is Limited time available for interviewing the respondents. As a result

of this it was not possible to gather full information about the respondents.
o If the employees answer does not fall between amongst the options given
then it will turn up to be a biased answer.
o Some employees do not tell their actual details.
 BIBLIOGRAPHY

1. Books

• Robbins P. Stephens, Organizational Behaviour, Prentice Hall, 7th Edition, Chapter 16,
pages 636-641.

• Koontz Harold & Weihrich Heinz, Essentials of Management, Mc Graw Hill, 5th Edition,
Chapter 11, pages 217-245.

• Decenzo A. David & Robbins P. Stephen, Personnel/HR Management, Prentice Hall, 3rd
Edition, Chapters 6,7 & 8, pages 117-209.

2. Magazines

• India Today

• Today's traveller

• Business today

3. News Paper

• Times of India
• Hindustan Times
• Economic Times

4. Web sites

• www.Tata Motorsindia.com www.indiatimes.com