a project report on employee remuneration satisfaction

Employee remuneration satisfaction in SDKSSKN Chikodi

EXECUTIVE SUMMARY:- INDUSTRIAL PROFILE:-

The Indian sugar industry is a key driver of rural development, supporting India’s

economic growth. And sugar industries are rapidly growing in the year of 1950 139 industries

are their but now the number of industries are increased as per 2008 574. The industry is

inherently inclusive supporting over 50 million farmers and their families, along with

workers and entrepreneurs of almost 574 mills, apart from a host of wholesalers and

distributors spread across the country. The advent of modern sugar processing industry in

India began in 1930 with grant of tariff protection to the Indian sugar industry. Total sugar

industries in India are 574 out of which 67 are public sector companies, 157 are private sector

companies and 282 are co-operative societies. Total sugar industries in Karnataka are 40 out

of which 2 are public sector companies, 18 are private sector companies, 19 are co-operative

societies and 1 is joint venture. Karnataka sugar industries raking 3rd in India.

COMPANY PROFILE :-

SHREE DOODHAGANGA KRISHNA SAHAKARI SAKKARE KARKHANE

NIYAMIT, CHIKODI is a co-operative society registered under Karnataka co-operative

society’s Act in 1969. The industrial license number of the factory is L-25/N-250/-LC dated

16/10/1970. The factory started on 5/3/1969 with initial Crushing capacity to the extent of

1250 TCD per day began during the year 1974 with total expenditure of Rs.337 lakhs.

Company mainly producing sugar (white crystal sugar) and also producing by products like

Rectified Spirit, Power generation, Organic fertilizers produced by the company. Now

present Capacity 6500 tones sugar cane crashing / day, 20.7 M. W. Power Generation.,30

K.L.P.D. Rectified Spirit. Turnover 450 to 500 Crores / Anum. Total staff of the company is

775. Area of operation working field of the factory has been registered under the provisions

of co-operative society’s law’s! The field of the factory comprises of 111 villages including

102 villages from Chikodi. Tq: 5 village from Raibag Tq: and 4 villages from Athani Tq: for

the supply of sugar cane for a longer period the field was extended to Yadrav, Bhiradi of

Raibag Tq: and to Tamadaddi village of Jamakhandi Tq: so the field of the factory extends to

area larger than a district even more sugar cane supply was required with the extension of the

factory

Need of the study:-

Babasabpatilfreepptmba.com Page 0


To know the organization department function.

To know the functioning of various department.

To know the HUMAN RESOURCE MANAGEMENT SYSTEM.

To know the present condition of organization.

To knows the employee remuneration and satisfaction system in the SDKSSKN.

Objective of the study:-

To understand the working of organization.

To understand the functioning of various departments.

To study on the Employee remuneration satisfaction in

SDKSSKN Chikodi.

RESEARCH METHODOLOGY:-

Data collection method:-

Data collected by primary and secondary methods.

Primary data:-

Discussion with staff members of SDKSSKN.

Through questionnaires.

Secondary data:-

Reference books

Company manual

Through internet.

Company annual book.

Sampling Techniques:-

1) Population : SDKSSKN employee.

2) Sampling frame: It is the list of all employees.

3) Sampling unit: department wise employees.

4) Sample size: 100 employees.

5) Sampling method: Random sampling method.

6) Sample Plan : Personal Interview

Findings:-



The above table and chart shows that 27% of employees are feeling insecure

always. 47% of employees are feeling insecure some time. And remaining 26% of

employees are never feeling insecure regarding job.

The above table and chart shows that 62% of employees are satisfying with salary

being paid by company. And remaining 38 % of employees are dissatisfied with

salary being paid by company.

The above table and chart showing that 39 % of employees agree to canteen

facility. 7% of employees are strongly agreed with canteen facility. 30% of employees

are disagreeing with canteen facility. And 24 % employees are strongly disagreeing

with canteen facility. Most of the employees are the disagree and strongly disagree

with canteen facility.

The above table and chart showing that 26 % of employees are got transportation

facility and remaining 74% of employees are not got transportation facility.

Recommendation:-

More attention should be given to increase the employee participation in the

management of the company. To give securing the job.

On survey base 38 % of employees are dissatisfied with salary being paid by

company. Salary should be given on the basis of performance and qualification base.

From the employee part of view 30% of employees are disagreeing with canteen

facility. And 24 % employees are strongly disagreeing with canteen facility. Most of

the employees are disagreeing and strongly disagree with canteen facility. Company

should provide basic need of good quality food in the canteen to increase efficiency of

workers.

Should make separate human resource development department.

Company should provide training for workers in their work field.

The factory must install new technology and fast machine in the production

process to move towards the quality policy “total customer satisfaction ”

INTRODUCTION OF THE STUDY:-



Shree Doodhaganga Krishna Sahakari Sakkare Karkhane Niyamit, Chikodi is a co-

operative society registered under Karnataka co-operative society’s Act in 1969. The

industrial license number of the factory is L25/N-250/70-IC dated 16/10/1970.Shree

D.K.S.S.K.N. Chikodi is a co-operative unit. It is a situated near Nanadi village, at a distance

of about 13Km from Chikodi town and the factory at present has an attractive campus with

magnificent buildings over it.

The founder of the organization was Late Sri. Chidanand B Kore, an agriculturist

and a co-operator, to establish this factory during 1972-73 with the financial support from

cane growers of this area and the State Government. With an initial crushing capacity 1250

TCD and as a stand alone sugar industry, lour factory had faced a lot of problems all these

years in coming out as a viable unit. Though this factory had emerged in this area with a

meager beginning, it had not only provided a source of income for forming community but

also created a sustainable employment opportunity in this rural area.

By conducting the organizational study it was found that all the departments were

actively working towards the achievement of the goals and objectives of the company. The

management is also efficient in the work, so the company is achieving great progress year by

year. This project gave me an insight as to how the industry work and how important this

sector is to the economy. This project gave me a thorough experience of the sugar industry.

By organization study on the bases survey related to employee remuneration and

satisfaction to know the remuneration system in the S.D.K.S.S.K.N.

By studying this project report which related to the human resource management in

DKSSKN, to know the functional departments and departmental activities towards the

organizational aims and objective.



\

INDUSTRIAL PROFILE

INTRODUTION TO SUGAR INDUSTRY:-

The Indian sugar industry is a key driver of rural development, supporting India’s

economic growth. The industry is inherently inclusive supporting over 50 million farmers and

their families, along with workers and entrepreneurs of almost 574 mills, apart from a host of

wholesalers and distributors spread across the country. The industry is at a cross roads today,

where it can leverage opportunities created by

Global shifts in sugar trade as well as the emergence of sugar cane as a source of

renewable energy, through ethanol and co generation. While some of these opportunities have

been well researched in the past, there was a need to assess the potential for India and to

develop a comprehensive and actionable roadmap that could enable the Indian industry t o

take its rightful place as a food and energy producer for one of the world’s leading

economies.

India is the second largest producer of sugarcane next to Brazil. Presently, about 4

million hectares of land is under sugarcane with an average yield of 70 tons per hectare. India

is the largest single producer of sugar including traditional cane sugar sweeteners, khandsari,

and Gur equivalent to 26 million tones. Even in respect of white crystal Sugar, India has

ranked No. 1 position in 7 out of last 10 years.

Traditional sweeteners Gur & Khandsari are consumed mostly by the rural population

in India. In the early 1930’s nearly 2/3 rd of sugarcane production was utilized for production

of alternate sweeteners. Gur & khandsari. With better standard of living and higher incomes,

the sweetener demand has shifted to white sugar. Currently, about 1/3rd sugarcane production

is utilized by the Gur & khandsari sectors. Being in the small scale sector, these two sectors

are completely free from controls and taxes which are applicable to the sugar sector.



The advent of modern sugar processing industry in India began in 1930 with grant of

tariff protection to the Indian sugar industry. The number of sugar mills increased from 30 in

the year 1930 -31 to 135 in the year 1935-36 and the production during the same period

increased from 1.20 lakhs tones to 9.34 lakhs tones under the dynamic leadership of the

private sector.

SUGAR INDUSTRIES IN INDIA:

Mostly sugar industries are located in UtharPradesh.Bihar Maharashtra,

AandraPradesh. Karnataka and Tmilnadu

Total sugar industries in India are 574 out of which 67 are public sector companies,

157 are private sector companies and 282 are co-operative societies. Total sugar industries in

Karnataka are 40 out of which 2 are public sector companies, 18 are private sector

companies, 19 are co-operative societies and 1 is joint venture.

THE FOLLOWING TABLE SHOWS THE INDIAN SUGAR INDUSTRY AT

GLANCE: - 2007-08

No of sugar factories established 574

Total capital employed Rs 50,000 crores

Total annual turnover Rs 25,000 crores

Total payment to cane growers Rs 18,000 crores

Contribution to central & state

exchequers

Rs 2500 crores

Direct payment : rural educated Rs 5.00 lakhs

Farmers/ families involved in sugar cane Rs 45 million

Sugar industries in Karnataka

Karnataka Sugar Industry ranks 3rd in terms of its contribution of sugar in the total

sugar production in the country. The Sugar Industry in Karnataka is able to manufacture



sugar in such huge quantities due to the fact that sugarcane is abundantly available in the

state. In fact, Karnataka stands 4th in the country in the cultivation of sugarcane.

The Sugar Industry in Karnataka contributes around Rs. 36 crore per year to the state

exchequer in central excise duty. It also contributes more than Rs. 900 crore in the form of

turnover tax and sales tax to the state exchequer. The state government in an attempt to boost

Karnataka Sugar Industry has set up the Karnataka Sugar Institute (KSI) which has emerged

as a center for education and training for sugar technology.

The Karnataka Sugar Institute also provides important support to the Sugar Industry

in Karnataka by doing R&D in the various aspects of sugarcane processing and production.

Karnataka Sugar Industry has contributed a great deal to India's total level of sugar

production and thus has helped the country to meet its demand for sugar. The Karnataka state

government must make more efforts in order to boost the sugar industry in Karnataka

POLICY:-

The present policy of partial decontrol 10% of production by each unit is supplied for

public distribution system i.e. as levy sugar at Govt. notified prices admittedly below 20% of

the actual cost of production. The levy sugar is I to the public irrespective of their economic

status. The balance 90% is sold in the free market against monthly\issued by the Government.

This policy has been continuing since 1967-68 except for brief periods of de-control me

during the years of surplus production and accumulated sugar stocks.

Government announces the Statutory Minimum Price (SMP) for sugarcane every year

based on recommendations of the Commission for Agricultural Costs and Prices (CACP). In

the year 3-04, Government announced Rs. 73.00 per quintal linked to a basic recovery of

8.5%. For every 1% increase in recovery, the grower gets a premium of Rs.0.85./qtl. In actual

practice, the sugar pays much higher prices than SMP



COMPANY PROFILE:

SHREE DOODHAGANGA KRISHNA SAHAKARI SAKKARE

KARKHANE NIYAMIT, CHIKODI.

Name of the Organization : Shree D.K.S.S.K.N.-Chikodi.

Location : Nanadi Village.

Tal.-Chikodi, Dist: - Belgau

Karnataka.

Redg. Office : Chikodi.

Ph. No. – 08338-276931 To 35

Fax: 08338 – 276105

E-Mail – [email protected]

Construction : Building Layout, Garden & Light Facilities.

Capacity : 5500 tones sugar cane crashing / day.

20.7 M. W. Power Generation.

30 K.L.P.D. Ratified Spirit.

Turnover : 450 to 500 Crores / Anum.

Employees : 778.

Work Shifts : 3 Shifts / 8 hours per shift (no Holiday)


mailto:[email protected]


BOARD OF DIRECTORS

The following composition of directors on the board of Shree Doodhaganga

Krishna Sahakari Sakkare Karkhane Niyamit, Chikodi

Name Designation

1. Sri Mahantesh .M. Kavatagimath Chairman

2. Sri .Ajit S. Desai Vice Chairman

3. Sri S. B. Umarane The Managing Director

4. Sri Annasaheb. S. Jolle Director

5. Sri Ashok .A. Patil Director

6. Sri Prakash. J. Patil Director

7. Sri Tatyasaheb .D .Kate Director

8. Sri Mallikarjun .G. Kore Director

9. Sri Amit .P. Kore Director

10. Sri Satappa. N. Saptasagar Director

11. Sri Parasagouda. I. Patil Director



SHREE DOODHAGANGA KRISHNA SAHAKARI SAKKARE KARKHANE

NIYAMIT, CHIKODI is a co-operative society registered under Karnataka co-operative

society’s Act in 1969. The industrial license number of the factory is L-25/N-250/-LC dated

16/10/1970.

Shree D.K.S.S.K.N. Chikodi is a co-operative unit. It is a situated near Nanadi village,

at a distance of about 13Km from Chikodi town .and the factory at present has an attractive

campus with magnificent buildings over it.

Agriculture was continues to; be an extremely important sector in our country and

cooperative system, as one of its main pillars providing vital support services, is crucial for

the transformation of agriculture. It is how inspired our founder Late Sri. Chidanand B

Kore, an agriculturist and a co-operator, to establish this factory during 1972-73 with the

financial support from cane growers of this area and the State Government. With an initial

crushing capacity 1250 TCD and as a stand alone sugar industry, lour factory had faced a lot

of problems all these years in coming out as a viable unit. Though this factory had emerged

in this area with a meager beginning, it had not only provided a source of income for forming

community but also created a sustainable employment opportunity in this rural area.

After a lot of dispute on location of plant, near Nanadi village, the construction work started

in year 1971 and comp elected in the year 1974. The factory was inaugurated by Vice-

president Shri B.D Jatti on 6th November 1974. The regular production has been started from

December 1974.

The factory started on 5/3/1969 with initial Crushing capacity to the extent of 1250

TCD per day began during the year 1974 with total expenditure of Rs.337 lakhs.

The area of operation covered 111 villages of which 102 villages are from Chikodi taluka, 5

villages are from Chikodi taluka, 5 villages are from Raibag taluka and 4 villages are from

Athani taluka.

At present total sugar cane supplied to this sugar industry is from 20,000 acres with

average yield per acre of 25 MT.



The entire plant and Machinery has been supplied by m/s National Heavy Engineering

Co-operative Ltd. Pune, A co-operative institution (for Rs. 1990 lakhs and 3500 TCD plant)

has also been installed to meet the present requirement of the Crushing capacity. The

DKSSK, at present is equipped with modern machines and skilled personals. Rs. 325 lakhs

long term loan was borrowed from IFC, LIC, IDBI for original plant and First phase

expansion and has been repaid as per their

The crushing capacity was enhanced from 1250 TDC to 2000 in 1984-85 and from

2000 TCD to 3000 IN 1993-94. The factory house hold expenses of factory from 3500 to

5500 TCD. Every expansion was not easy and had created financial setbacks due to the lack

of professionalism both in technical and financial managements. Thus over the period of two

and half decades, the factory had grown only in sizes but not adopted the range of different

bi-product activities and had suffered due to a weak governance on efficiency, effectiveness,

adaptability and internal and external accountability in the management. These things have

brought the factory almost to the brink of sickness. Besides resulting a huge negative net

worth and ever-high accumulated losses, however this cooperative and rural based industry

must succeed if the poor farmers and the rural unemployed youths have to be prosperous.

AREA OF OPERATION

Working field of the factory has been registered under the provisions of co-operative

society’s law’s! The field of the factory comprises of 111 villages including 102 villages

from Chikodi. Tq: 5 village from Raibag Tq: and 4 villages from Athani Tq: for the supply of

sugar cane for a longer period the field was extended to Yadrav, Bhiradi of Raibag Tq: and to

Tamadaddi village of Jamakhandi Tq: so the field of the factory extends to area larger than a

district even more sugar cane supply was required with the extension of the factory. Being the

higher competitive rules offered by our factory the villagers in the border area of Maharashtra

Danwad, Dattwad, Rajapur, khidrapur, Shiradwad, Abdullat, Akkivat and sulkud and many

more villages have expressed their desire to become members of our factory seeing their

demand the managing committee to extend the field of the factory to the above mentioned

villages has applied to the registrar,

Nature of Business:



Sugar sector is one of the large scale industries in manufacturing sector. Now a day

the competition in sugar sector is very high. SHREE DOODHAGANGA KRISHNA

SAHAKARI SAKKARE KARKHANE NIYAMIT, CHIKODI is a co-operative society

registered under Karnataka co-operative society’s Act in 1969. The object of business is to

encourage proper devolvement of agricultural industrial amongst members on co-operative

lives by promotions of co-operative and joint forming methods so as to secure best merits of

modern large scale agriculture production to the owners of the lands. The nature of business

is to encourage self help, thrift and co-operate amongst members.

OWNERSHIP PATTERN:

The authorized share capital of the Society shall be RS.15.20 crores divided in to total

38,000 shares of RS.4, 000/-each as under.

A. Rs.14, 51,000 /-dividends in to 36,275 shares of the face value of Rs.4, 000/-each

reserved for the grower members called as “A” Class.

B. Rs.9, 00,000 /-dividends in to 225 shares of the face value of Rs.4000/-each reserved

for Co-operative Institutions. Called as “C”Class.

C. Rs.20, 00,000 /-dividends in to 500 shares of Redeemable preference share of Rs.4,

000/-each to be issued to Government of Karnataka/Maharashtra called as “C”Class.

D. Rs.40,00,000/- dividend in to 1,000 shares of face value of Rs.4,000/-each reserved

for non grower members called as “D” Class.

AIMS & OBJECTIVE OF THE COMPANY:-



The object of the society is to encourage proper development of Agricultural

Industrial amongst members on Co-operative lives by promotions of principal and methods of

Co-operative and joint forming methods so as to secure best merits of modern large scale

agriculture production to the owners of lands and for this propose.

To encourage self-help, thrift and co-operate amongst members.

To acquire lands either by way of purchase or otherwise for cultivation of sugar cane

and other cost and for erection of building. Go downs staff quarters etc and for

installations of machinery’s.

To manufacture sugar jogger and their byproducts out of sugar-cane grown and

supplied by members of the society and other and to sell the same to the best

advantage

To undertake such other activities as are identical and conductive to the development

of the society etc

To acquire and install machinery for the utilization of the product and buy raw

material and sell finished product is the course of utilizing and marketing the

byproducts.

INFRASTRUCTURAL FACILITIES:

Nearer to raw materials.

Good transportation facilities.

Nearer to rivers place. (Krishna River)

Good networking.

Proper accommodation for its employees.

VISION AND MISSION:-



VISION-

“ADAPT AND EXCEL”

MISSION-

Encourage agro-based co-operative industry.

To develop co-operative movement in rural sector.

To encourage the farmers to grow sugar cane for production of sugar and its by-

products

SHARED VALUES

Shared values are refers to company policies. In D.K.S.S.K Sugar Company limited the

following policies are maintained.

Quality policies

Environment policies

T.P.M. policies (Total productivity management)

QUALITY POLICY

Quality leading to customer satisfaction shall be the top priority, this shall be

achieved by complying with the requirements of the quality management system and

continuously improve its effectiveness.

ENVIRONMENT POLICY

The DKSSK is committed to comply with the requirement of relevant

environment regulation and standers by implementing environment management system and

the continually improve its effectiveness.

TOTAL PRODUCTIVITY MANAGEMENT



The DKSSK is committed in maximizing limited is committed in maximizing

overall plants effectiveness to make My sore sugar company a world class company through

total productive manufactured by

Promoting automates maintenance culture.

Involving all employees and building culture.

Minimizing the losses and reduced the cost.

ACHIVEMENTS/AWARDS

Achievements

STAI, SISSTA & DSTA in their recent 8th annual convention at Hyderabad held on 13-

08-2005 have honored with the most prestigious award as the “THE BEST EFFICIENCY &

PERFORMANCE SUGAR FACTORY” in the country for the year 2004-05. The award was

given by Hon’ble Union Minister for agricultural, food & Civil Supplies, in presence of

Hon’ble Chief Minister of Andhra Pradesh.

The Karnataka State Co-op Federation Ltd. had adjudged as “The Best Co-operative

Sugar Factory in the State” and AWARD had been given to us through Hon’ble Chief

Minister of Karnataka, on 14/11/2004.

Energy Department of Government of Karnataka and KREDL have awarded us he

“excellence Award” THROUGH Deputy Chief Minister of Karnataka for having developed

efficiently 20.7 MW Co-gen Power Project on the occasion of RAJIV GANDHI AKSAYA

URJA DIWAS ON 20/8/2004 .

The companies have the Honor of achieving the Highest Sugar Recovery @ 11.80% in

Southern part of India for the year 2001-02. And 11.90% for 2002-03 also.

Awards

The Karnataka State Cooperative Sugar Factories Federation Ltd., Bangalore had

honored the company with the following awards for the:-



a) Highest sugar recovery in South India during 2001-02.

b) The “Best Administration Award” to the Managing Director with a cash prize of

Rs.10.000/- and a certificate.

c) The Best chief Chemist Award” with Rs.5000/- Cash prize and a Certificate.

d) Best chief engineer with award worth of Rs.5, 000/- cash prize and certificate.

COMPETITORS:

UGAR SUGARS

HIRA SUGARS

RENUKA SUGARS

HALSIDHNATH SUGARS

DATT SUGARS (MAHARASHTRA shirol)

PANCHAGANGA SUGARS(MAHARASHTRA inchalkranji)

JAWAHAR SUGARS (MAHARASHTRA)

FARMERS SUGARS FACTORY



Staff

Good hard working citizen play essential role in the development of nation. The

employees are responsible for the success or failure of company.

The company has totally 778 workers are working is the company. They are divided as

follows

No. of Workers

1) Permanent workers 363

2) Seasonal workers 241

3) Consolidated worker 74

4) Daily wage worker 100

TOTAL workers = 778

Company is paying salary of to Rs. 55, 00, 000 per month its workers

PRODUCT PROFLE:-



The main and direct production of sugarcane is sugar. The factory has byproducts like

distillery, co-generation, press mud and ethanol.

FLOW CHART OF SUGAR MANAFACTURING

Sugar process flow chart

BY- PRODUCTION PROCESS:-



1. PROCESS OF POWER GENERATION

Bagasse

Co- generation boiler

Steam generation

Turbine

Power Generation

2. PROSSESS OF DISLATION (RECTIFIED SPRIET)



Molasses

Distillery

Treated with yeast

Rectified spirit Press mud

Treated with water Treated with nature

Arrack Compost

SUGAR:-



The factory crushing at the rate of 6500 Tonnes crushing per day (TCD).It is needless

to emphasis here that this factory has its own credibility and enjoys its own sanctity in the

industry.

The DKSSKN Chikodi produces the sugar which can be classified as shown in the

table below. The sugar is divided in to three types based on the crystal size; they are large,

medium, and small. The production of these is dependent on the crushing capacity of the

factory. To produce large sized crystals it takes more time, which in turn affects the crushing.

As the size increases the impurity increases and colour of the crystals decreases.

Type of sugar produced in DKSSKN Chikodi

TYPE OFSUGAR SIZE (IN MICRONS) PRODUCTION IN 08-09(QTLS

LARGE (L30) 1400

NIL

L

MEDIUM (M30) 1120 4870

SMALL(1S30) 600 38675

SMALL(S30) 400 244855

THE FOLLOWING STATEMENT SHOWING LAST 10 YEARS SUGAR-CANE

CRUSHED, PRODUCTION, AND AVERAGE.



Crushed sugar cane chart

0

200000

400000

600000

800000

1000000

In tones

1998– 99

1999– 00

2000– 01

2001– 02

2002– 03

2003– 04

2004– 05

2005– 06

2006– 07

2007- 08

Years

Crushed sugar cane in tones

Production chart


Years Crushed sugar

cane in tones

Production (in

Quintal)

Average

1998 – 99 833457 738170 11.28

1999 – 00 890709 740086 12.01

2000 – 01 720041 614749 11.7

2001 – 02 734954 604005 11.8

2002 – 03 805047 660312 11.9

2003 – 04 421461 395310 10.2

2004 – 05 494488 534334 10.81

2005 – 06 680884 806859 11.85

2006 – 07 934230 1085700 11.5

2007 - 08 785050 921400 11.6


Average of production chart

DISTILLATION: -

The unit uses molasses, which is waste, is the production of sugar, as raw material for

distillation.



This molasses has about 40% to 45% of sugar in it. The yeast strain used in

fermentation process is sacchromyces uvarum.

BY PRODUCTS OF SUGAR MANUFACTURER:

The chief byproducts of sugar manufacturing are-

1. Bagasse:

Bagasse is the by-product of sugar left behind after cursing of sugar cane. It is used as

a fuel in the sugar factory boiler. Excess Bagasse finds use as raw materials in paper

manufacturing industry.

2. Molasses:

Molasses is a byproduct of sugar refining chiefly used for alcohol production. The

entire molasses output is routed to the distillers unit, which is maintained by the organization.

3. Press mud:

Press mud is the by-product generated by cane juice filtration during sugar

manufacture, currently. Press mud is used as a fertilizer in sugar cane cultivation.

4. Co -Generation:

Co-generation is the by-product of sugar cane by using of Bagasses to producing

power.

PROCUREMENT

The factory obtains the sugarcane, which is required from more than 1000 farmers

and by the company farms and others raw materials which are required for the operation is

taken from the vendor there vendors will be evaluated on basis of price and quality and then

the required raw materials will be taken for the efficient vendors.



The transport of sugar cane from framers to the factory will be engaged throng

Lorries, which will be taken through bidding at time of harvesting, and also farmers

themselves supply by their own bullock carts or by tractors.

CANE WEIGHMENT

There are 12 outlaying weighbridges situated round about Chikodi for delivering the

sugarcane from the farmers. Double check has been provided over the weigh of cane

transported from out stations.

OPERATIONS

The sugarcane, which is carried by Lorries or other, will be directly fed to the

machine where the initial process starts. At the starting point these are knives which cuts

sugar cane bunches into individual sugar care.

This in the next step there are sharp cutter, which cuts the sugarcane, bunches into

very small pieces. Then it will go to trade marbs (a series of rollers used for crushing

purpose) for crushing. Then the juice produced will go for further processing and the Bagasse

will be lifting out their it self. Then they add flocculent (used for mud setting) milk sanitation

etc and then after it will go through pans and massecuite for this massecuite they will add

sodium Hydro Sulphite ( to bleach the massecuite ) and it will be separated out and the

molasses will be send to distillery and they white sugar will be bagged.

ORGANISATION STUDY:-

ORGANIZATION CHART


Go down Sectio

n

Computer

Sales

GM (Dis

t)

Engineerin

g

Store (Keeper

)

Medical Office SPDT

Chief A/C

Office

HRO/P

Production

Chief Chemi

s

Dist Chemis

Co- Gen Salary Cane

A/cSales Wage

Safety

Welfare

Legal Section

Board of Management

Board of Director

Secretary

EST sectio

n

Meeting Section

Inward & Out Ward Section

Share

Section


.

FINANCE AND ACCOUNTS DEPARTMENT:

Finance plays a vital role in the functioning of all industrial units. Finance is the life

blood of the organization. In sugar Industry Finance and accounts Department has very vital

roles. The financial plan basically deals with raising and proper utilization of funds. The

funds can be raised by issue of shares as well as by raising loans various sources. The finance



manager supported with accountant manager and an accountant assistant looks finance

department

FUNCTIONS:-

They look after the overall financial requirements of the company.

They see that a proper inflow and outflow of income and expenditure is maintained.

Costing and accounting is framed and maintained.

Yearly budget is framed so that each department can meet their cash requirements.

Budget prepared is based on sales forecasting, expenses forecasting, cost forecasting,

purchase forecasting etc. which submitted by respective departments.

Finance Department consists of following sub branches:

1. General Accounts Section

2. Cane Accounts Section

3. Sales Section

4. Cash Section

AS FUNCTIONING OF EACH SECTION IS SUMMARIZED FOLLOWS:

1. GENERAL ACCOUNTS SECTION:

General Accounts are looking after the passing of bills and payments. Management is also

done by General account section and preparation of financial statements i.e., Balance sheet,

profit and loss account is attended by general accounts section.

2. CANE ACCOUNTS SECTION:



The Bills and payment concerned to procurement of sugar cane, is attended by cane accounts

section. Payments like cane bills, transport and harvesting bills etc., are prepared and passed

in cane accounts section.

3. SALES SECTION:

It is looking after sales of sugar and by products molasses, Rectified spirit and other scrap

materials. It is keeping records of the concerned to all sales section.

4. CASH SECTION:

It is looking after the payments of all general bills and salary bills apart from cane payment

and it is also looking after receipt of cash and check payment. All accounts are maintained in

usual manner. Various records and books kept are:

A. General ledge

B. Sub ledger

C. Subsidiary

D. Cash book

E. Bank book

F. Vouchers.

Each branch prepares trading profits and loss account and Balance as on 31 st March every

year. And the government Auditors audits the accounts.

PURCHASE DEPARTMENT:

PURCHASE DEPARTMENT HIERARCHY


PURCHASE MANAGER

GODOWN SUPERVISORS

STORE KEEPERS ASSISTANTS


Purchasing procedure very concededly according to the needs of the organization and

authority delegated to porches manager the successes of organization is based on effective

inventory management system and interrupted production schedule this is achieved with

adequate purchasing function.

PROCEDURE OF PURCHASING

1. DETERMINATION OF PURCHASE BUDGET:

In the beginning of the year the purchase manager, with the help of production planning

department, prepare a purchase budget. This budget quads him in knowing what when he has

to buy and also quality. Size and quantity product are purchase.

2. DETERMINATION OF QUANTITY:

The stock availability in each location is determined and compared with the actual

requirements. After receiving the sales order raw materials needed are scheduled according

to these order level. The stock availability in each location is determined and compared with

actual requirements these quantities to be purchased are determined.

3. PURCHASE ORDER:



After satisfy with the quantity of materials and reputation of the supplier, purchase

order is send to the supplier. Purchase order contain includes the date of order, description of

materials to be supplied made of supply. The companies of this send to the Head office,

another to accounts departments and one copy send to the storekeeper.

4. RECEIVING AND ISSUING RAW MATERIALS:-

The department heads and the storekeeper check the quality and quantity of raw

materials received respectively. The storekeeper enters the details of purchased materials in

the store receipt book store receipt after the details are entered in the stared receipt book, the

materials from the part of inventory. Then the general manager passes the amount for

payment.

OBJECTIVES

1) To receive purchase requisition from the stores department production centers or any

other authorized sources.

2) To invite quotations from a number of suppliers.

3) To make arrangements for the purchase of appropriate quantities at any given times.

4) To ensure the purchase of the correct quality under trade or brand name by sample,

description.

5) To follow up the orders placed.

6) To receive incoming suppliers, verity quantity test and inspect them.

7) To arrange for the stores and issue of materials.

MARKETING AND SALES DEPARTMENT:

“Marketing” is a social process by which individuals and groups obtain what they

need and want through creating, offering and freely exchanging products and services of

value with others.

American marketing association defines, “Marketing Management” as the process of

planning and executing the conception, pricing, promotion and distribution of ideas, goods

and services to create exchanges that satisfy individual and organizational goals.



ROLE OF MARKETING MANAGER:

1) To collect information for sales forecasting.

2) Pricing the products as per the demand.

3) To appoint new dealers and distributors.

4) To have full and perfect knowledge of marketing conditions and Policies.

FUNCTIONS OF SALES DEPARTMENT:

1) Sales officer is responsible for selling the products.

2) To look after dispatch of the ordered products.

3) Secondary sales are taken properly.

4) Suggestion, ideas, complaints, feedback from the market to the company.

5) Stocking planning in advance, Godowan maintenance in advance S & R.

SALES PROCEDURE

Procedure adopted for sale of sugar rectified spirit and export of power

A) SALE OF SUGAR

DOMESTIC SALE OF SUGAR:

The sugar is sold in the domestic market through tender system sugar tenders will be

called periodically from the various sugar traders. The leaders are intimated will in advance

about the grade and quality being offered in tender. The sugar tender will be conducted at



Karnataka Sugar Institute, Belgaum. The representative of KSI will be present at the time of

tenders. The rates will be collected from the various parties along with grade and quantity of

sugar required by them. The parties who have offered higher price will be allotted the sugar

and they will be interacted to take the sugar delivery within the stipulated period. The sugar

will be sold against 100% payment. The rate of domestic price of sugar in the state and the

rate of neighboring sugar factories will be selling the sugar tenders.

EXPORT OF SUGAR:

When the international price of sugar is encouragive compared to domestic price of

sugar, we export some of the stock of sugar. The sugar export is mainly undertaken through

the mercantile exports or through EXIM Corporation New Delhi. The price and the price

being offered by various sugar factories for export of sugar once the rates are finalized, we

will enter into agreement with the party. Then the party will obtain a release orders from

chief Director of sugar, New Delhi and necessary excise bond from the concerned authority.

After completing all the necessary formalities sugar will be delivered to the party for export

against full payment of the consignment. After the export shipment is completed necessary

documents in programmed of export of consignment will be collected from the parties the

same will be submitted to the excise department.

B) SALE OF RECTIFIED SPIRIT:-

The Rectified spirit is sold to various parties through the Karnataka State Braveries

Corporation Limited Bangalore. The price of the rectified spirit will be declared to the

KSBCL every fortnight. The prices of Rectified spirit of various Distilleries in the state will

be compared while finalizing the rates of spirit. Once the rate and quantity is finalized party

has to obtain necessary allotment order from commissioner of state excise for issue of

Rectified spirit and we will enter into forward agreement with the party as per the procedure

laid down by the KSBCL. Before taking delivery of Rectified spirit, the party has to make

payment to the KSBCL, in turn KSBCL will advice us to give delivery of Rectified spirit by



issuing “orders for suppliers’ then the spirit will be delivered to the party KSBCL will

transfer us the entire payment once in a week for the transactions occurred during the

previous week.

C) EXPORT OF POWER TO THE KPTCL GRID:-

In addition to the above company is also receiving its revenue from its power plant.

Company is having a power plant of 20.7 MW capacity. It is using about 5MW for its

own/captive consumption; the excess power of about 15MW is being exported to the KPTCL.

ADMINISTRATION DEPARTMENT

The most of work of the department is future planning as a standardization of time

and work and dealing with other companies. The work of administration department is

conceptual decision taking with the permission of Chairman, Director, M.D and senior

manager.

RECRUITMENT

The recruitment is the process of searching for and obtaining applicants for jobs, from

among whom the right people can be selected. The process begins when new recruits are

sought and ends when their applications from which new employees are selected. Selection



is the process of packing individuals (out of the pool job applicants with requisites

qualification and competence to fill jobs in the organization.

RECRUITMENT AND SELECTION

Recruitment of workers, the factory does not have a good procedure for recruitment.

All the rights of recruitment are invested with the Board of Directors. The factory has good

system of up grading. A promotion is given on the basis of experience, qualification. For

upgrading the workforce a committee of Board of Directors is appointed. The up grading of

workers is considered only when a vacancy exists in the higher grades, the factory instead of

Recruiting people from outside gives preference to their own personnel on the basis of

qualifications, experiences and performance. The possibility of promotion serves as

incentives.

Promotion is given to the workers of they are well experienced and also of good qualification.

INTERNAL SOURCES:

In DKSSKN Internal search is made to identify surplus manpower. So that manpower can be

utilized elsewhere. This can be done through transfer and promotion to employees in their

positions.

EXTERNAL SOURCES:

Some time it may not be possible to find out right manpower within the company, especially

in technical skill required jobs. Then they go for external sources. The major external

sources used by DKSSKN are giving advertisements in news papers and other Medias

through personal contracts etc., after identifying the sources, the requirement process and

selection process starts.

REMUNERATION SYSTEM:

Remuneration to workers includes both monetary and non-monetary benefits.

MONETARY BENEFITS:-



Salary.

Home rent allowances.

Dearness allowances.

Traveling allowances

Provident funds

Employee monstrance.

Festival advances

Welfare facility:

A. Statutory facility:-

Canteen

Washing facility

Facilities for storing and drying cloth

Facilities for sitting

First aid application

Shelter

Leave facilities

Bonus, incentive

B. Non -Statutory facility:-

Co-operative societies

Recreation and festival committee

Nursery, primary and high school

Community hall

Banks

Hospital

LABOUR WELFARE DEPARTMENT:

This department is headed by labor welfare officer. To look into the welfare activities

of the worker and solve the Labour problems. The factory provides all the necessary

facilities. The purpose of providing welfare amenities is to facilitate the development of total



personality of working class for physical, mental, psychological, cultural, social, moral and

intellectual development the factory provides well planned residential accommodation,

medical facilities, educational facilities, drinking and washing water, canteen, cycle stand,

library etc. In addition, the factory has following non-statutory schemes for workers welfare.

Consumers society, uniforms to watchman production and engineering workers etc.

TIME OFFICE DEPARTMENT:

Department is headed by head time keeper. To maintain the register of attendance of

the factory staff to prepare the pay sheets and leave records and personal services register of

the staff.

Function:-

To recording the employees attendance.

To maintaining the salary register book (S.R A/C).

ADMINISTRATIVE OFFICE

The office time is from 10.30 to 5.30pm

The lunch break is from 1.30 to 2.00 pm

FACTORY PREMISES

Inside: from 8:30am to 5:30pm

The lunch break is from 12:30 to 1:30 pm

PRODUCTION DEPARTMENT:

Production management refers to the application of management principles to the

production function in a factory. In other words production management involves application

of planning, organizing, directing and controlling the production process.

A well-organized production function can offer competitive advantage to a firm in the

following areas.

Higher quality

More inventory turns

Shorter new product lead time

Greater flexibility

Shorter manufacturing lead time



Better customer satisfaction

Reduced wastage

PRODUCTION PROCESS:

The main saw material in the production of sugar is.

Sugar cane.

The raw materials has to go through following stages before it become finished

product. The process in each stage is as under:

STAGE: 1 SUGAR CANE SUPPLY.

The harvested and transported sugar can received is weighed on the weigh Bridge. It

is unloaded and kept on the feeder tables. It is fed to the cane carrier as per the requirement.

STAGE:-2 MILLING OF CANE/ EXTRACTION OF JUICE.

This cane is passed through leveler and furzier by making the fine making the fine

chips. It is crushed through series of mills. Imbibitions hot water is added prior to the last

mill to extract more possible sugar. The bagasse from the last will is carried through bagasse

conveyor and required quantity of bagasse is fed to the boilers and excess quality is sent for

storage.

STAGE:-3 CLARIFICATION AND EVAPORATIONS.

The juice from all the mills is pumped to juice weighting scale. It is heated to about

70-77’o c in the juice heaters. It is taken to continuous juice sulphitor in which milk of lime

and sulphur dioxide gas are adjusted to maintain ph 7.0. It is again heated in juice heaters to

about 100 to 105’oc and sent to continuous clarifier. Clear juice is taken to multiple effect

evaporators to concentrate up to 60oc Brix.



The settled mud from the bottom of the clarifier is taken to mud mixer to mix with

beguile and taken to continuous vacuum filer. The filtrate is transferred to raw juice

receiving tank for treatment. The adhered mud on the screens is scraped and sent out as filter

cake, which will be used for composting the manure.

STAGE:-4 CRYSTALLIZATION PURGING AND SUGAR MANUFACTURE

The concentrated syrup from evaporator is taken to syrup sulpthitor to adjust Ph 4.8 to

5.2. This is stored in the supply tanks and fed to “A” masscult boiling by taking B-seed as a

footing. It is concentrated to 92o Brix and dropped to the crystallizes. This masscult is

purged in the centrifugal machines. The adhered crystals are scraped to hopper and treated

with hot air and cold air blower. It is sent to grader the size for gradation. This graded sugar

is stared in SILOS. Weighed and bagged sugar bags are transferred to respective go down’s

for stacking.

STAGE 5:- FURTHER PROCESS

While purging A- massecuite the A-light molasses received is sent to supply tanks

and fed to ‘A’- molasses is sent to supply tanks and fed to ‘B’- masscult boiling with b-grain

as footing. This is purged in the centrifugals. This sugar is used as B- seed and excess is

melted and fed to ‘A’- masscult’s. White purging low purity B- Heavy molasses obtained is

used for boiling C- masscult with C- grain as footing.

This C- massecuite is taken for purging in C.F.W. Centrifugal machines. The final molasses

is separated, weighed and sent to storage tanks. C.F.Magma is sent to melt supply tanks and

fed to ‘A’ massecuite boiling. C-light molasses obtained is tired in supply tanks and used for

C- massecuite boiling and C- graining also.

GODAWAN SECTION:



This section headed by Godowan keeper. To record the stock inward and outward

Godowan section main work is to maintaining stock register and report to organization in this

section using FIFO and LIFO methods.

MANUFACTURE DEPARTMENT:-

This department is headed by Chief Chemist. To manufacture the maximum quality

the sugar from the cane juice of superior ISI. grade minimize the sugar loses in bye-products

to maintain the register and calculations of sugar entering in the house and production submit

day to day report of production and recoverable sugar and excise matters in the season. In

the off season maintenance of the boiling house plant.

LABORATORY:

The factory is having well equipped lab. And the main activity of the lab is to check

the content of sugar cane and fixing the correct shape & size of sugar. The lab prepares

hourly reports which advice on the other chemicals in production.

CHEMICAL SECTION:

In the factory is having chemical section. Main activity of the chemical section

milling stage to crystallization stage check sugar status and using chemicals to produce white

crystallization of sugar,

MECHANICAL DEPARTMENT:

This department is headed by General Manager and Chief Engineer. Maintenance of

the sugar machinery and plant over having of the some in off season and to run all the sugar

machinery and their devices properly and smoothly in the season and to extract cane juice for

the cane in respect of less losses of sugar content in fazes that is more extraction.

Functions:

To maintain performance of machines.

Installation of the machines.

Repair of the machines.



Crystallizing drying and packaging the refined sugar.

STORES DEPARTMENT:

This department is headed by store keeper. To keep the sores and required materials

for the factory section wise in a proper way and to maintain their registers and big cards of

indents (order goods)

FUNCTIONS:

To make the material requisition for the purpose of knowing the quantity materials.

Receiving the materials

Unfolding the packing.

Takes entry in store receipt Book (SRB)

The main function of store department is to prepare a bin card.

Preparing bills after receiving quality memo back.

Stacking the materials.

Issue of materials to concerned sections as per their indents.

To maintain minimum level of materials.

Informing purchase department when materials require.

WATCH AND WARD:

This department is headed by security officer. It provides Security of factory and

control on gates and supervision day and night all over the factory area from security point of

view.

Functions:-

Gate passes checking.

Providing security to employee and organization.

Controlling the hazards.

AGRICULTURAL DEPARTMENT:

This department is headed by Cane development officer. Cane procurement,

harvesting (to reap) and development of cane. To make the provision of proper seed of cane

to the cultivators, soil testing and proper guideline for measuring.



This department helps the farmers for the production of good quality of sugarcane.

The total area of operation is covered 111 villages of which 102 villages are from Chikodi

taluka, 5 villages are from Chikodi taluka, 5 villages are from Raibag taluka and 4 villages

are from Athani taluka.

Varieties of sugar cane:

Sr.no Particulars Variety of cane covered %

1 Early 671,94012,434,435. 70-80

2 Midlate 86032,8021,7704,98071,95005. 10-15

3 Late 8011,740,7527. 5

FUNCTION:

Issue of slips to the cane supplier, harvesting gangs and transport parties.

Arrangement of the vehicles to supply the sugar cane.

Cane registration.

It makes the arrangement for harvesting gangs and transport parties.

It solves farmers’ problems.

Improve cane quality.

It supplies cane seeds to farmers.

It provides fertilizers to farmers.

Facilities provided to the formers:

Compost is provided to the farmers.

Pesticides are provided.

Agriculture development loans are provided.

Sugar is provided to the shareholders once in a year.



Recommendation letters to the banks to provide loans to farmers.

CANE YARD DEPARTMENT:

This is one of the important department main function is to weighting the sugarcane,

sugar, materials and other equipments are weighting in this department.

CIVIL DEPARTMENT:

This department is headed by civil engineer. Construction of the roads for proper

transport of cane in the area, civil works of the factory, maintenance of the factory building.

FUNCTION:-

Planning for new projects.

Looking cleanliness of the factory.

Maintenance of factory building.

Maintenance of roads.

CO – GENERATION:-

The SDKSSK has power generation plant with the capacity of producing 20.7 MW of

electricity. The main activity in this plant is generation of electricity.

Process: - The SDKSSK pump water from Krishna River to power generation. Then

purification and filtration of the water made be the help of Cooler machine and chemicals.

The pure water sends to Vacuum Tubes which are situated in boiler. In boiler by the help of

bagasse hit that water more than 500° DC. To burn bagasse a fan is used called Force Deuce

(FD) fan. Another fan used called Secondary Air (SA) to spread the hit at all corner in boiler

similarly. The third fan called Induced Deuce (ID) to send out carbon air from boiler. The

boiled water sends to turbine and thereby generates the electricity.

About boiler:-

Producer: Wakhanaghar Industry Ltd., Pune.

Capacity: 125 tone per hrs.

Presser: 65kg per sqr. Cm.

Temperature: 495°C.



Production: 20.7 MW / 4, 98,000 units per day.

About turbine:-

Producer: B.H.E.L., Hyderabad.

Variety: Double extraction com cadency.

Presser: 65kg per sqr. Cm.

Temperature: 495°C.

Production: 20.7 MW / 4, 98,000 units per day.

DESTILLERY DEPARTMENT:

The SDKSSK also has a distillery plant with the capacity of 30 TPCL in which

produces the Alcohol and ethanol. At current the company only produces Alcohol.

Process: - For the production of Alcohol the molasses (bye product) of sugar is used

as raw-material. The molasses got in sugar production process store in a tank for one month.

After one month the thick aspects in molasses are store at bottom and processeble molasses

can be take which is upper side of tank. The thick molasses by mixing water also make

processeble.

Using propagation process the company produce East cells which are used in

production of Alcohol. For this process only use East cells called ‘Pombo East’. In a separate

tank the molasses and East cells are sends. The East cell eats sucrose in molasses and leave

waste. The waste of East cell is nothing but raw-alcohol. The tank temperature should kept

32°C to 35°C for proper generation of East cells.



Then that mixture sent to filter in which the Est. cells and molasses waste separated

and again sent to that previous process tank and by this got raw-alcohol. The raw-alcohol

further process just like the process used in petroleum items production. It is 25 stages

process. The raw-alcohol boil and in 18th stage we got alcohol and 25th stage we got ethanol.

The whole process is called as Fragmentation Process

LETRATURE REIVEW : -

Need of the study:-

To know the organization department function.

To know the functioning of various department.

To know the HUMAN RESOURCE MANAGEMENT SYSTEM.

To know the present condition of organization.

To knows the employee remuneration and satisfaction system in the SDKSSKN.

To know the facility provided to lab ours.

Objective of the study:-

To understand the working of organization.

To understand the functioning of various departments.

To study on the Employee remuneration and satisfaction in

SDKSSKN Chikodi.



To maintain discipline in the SDKSSKN. So, as to achieve

excellence.

Scope of the study:

The study on the employee remuneration and satisfaction in SDKSSKN Chikodi.To

knows the employee remuneration and satisfaction in the SDKSSKN.

Limitation of the study:

Time was a constraint for the study.

The study is restricted to this organization only.

All the respondents were not available at the time of survey.

Survey is based on primary data so accuracy is subject to responses received.

RESEARCH METHODOLOGY:-

Data collection method:-

Data collected by primary and secondary methods.

Primary data:-

Discussion with staff members of SDKSSKN.

Through questionnaires.

By observation through get knowledge

Secondary data:-

Reference books

Company manual



Through internet

.

Company annual book.

Sampling Techniques:-

1) Population: SDKSSKN employee.

2) Sampling frame: It is the list of all employees.

3) Sampling unit: department wise employees.

4) Sample size: 100 employees.

5) Sampling method: Random sampling method.

6) Sample Plan : Personal Interview

THEORETICAL BACKGROUND

EMPLOYEE REMUNERATION:-

INTRODUCTION

Human resource management is the important management function which helps to

managers in several ways. HRM is the challenging job to all the managers in an organization.

HRM is the process of acquiring, training, appraising, and compensating employees,

Employee Remuneration, and obviously, Human resource management (HRM) is concerned

with the people dimension in organization in HRM ‘Employee Remuneration’ is one of the

important function performed by the HR Manger.

Employee Remuneration is significant because of its contribution the cost of

production beside: many battles (in the forms of strikes & lockout) are fought between the

employer and the employees on issue relating to wage or bonus.



The HR specialist has difficult task of fixing wages or salaries and wage differently

acceptable to employee and their leaders. Since Employee Remuneration is such an important

subject, so which is a challenging job.

Meaning of Employee Remuneration:-

Remuneration is the compensation an employee receives in return for his contribution

to the organization. Remuneration occupies an important place in the life of an employee. His

or her standard of living, status in the society, motivation, loyalty and productivity depend

upon the remuneration he or she receives.

Components of Employee Remuneration

Employee Remuneration comprises both direct as well as indirect elements. A typical

remuneration of an employee comprises the following components.

Wages and salaries

Incentives

Fringe benefits

Perquisites

Non- monitory benefits.

Wages and salaries:

Wages and salaries are the important monitory components of Employee Remuneration.

Wages: Wages are the remuneration paid by the employers for the service of hourly, weekly,

daily and fortnightly to the employee.

Salary: Salary is the remuneration paid to the clerical & managerial personal on monthly

basis or annual basis.

According to DKSSKN factor affection, the wages and salary administration are as follows.

Existing rate at comparable industries.

Firm’s ability to pay.

Productivity.

Government legislation.

Market for the product.



Incentives:

Incentives are monitory benefits paid to workmen in recognition of their outstanding

performance. They also called payments by results; incentives are paid in addition to wages

and salaries. They are defined as “variable rewards granted according to variations in the

achievements of specific results”.

Incentives generally vary from individual to individual, and from period to period for

the same individual.

The primary advantage of incentives is the inducement and motivation of workers for

higher efficiency and greater output. Positive response will surely come when incentives are

included as a part of the total remuneration.

Incentives defend upon productivity, sales, profit, or cost reduction efforts. They are-

i) Individual incentive schemes

ii) Group incentives programmers.

Individual incentives are applicable to specific employee performance. Where a given task

given task demands group effort for completion, incentives are paid o group as a whole. The

amount is later divided among the group members on an equitable basis.

Fringe benefits:

Fringe benefits are defined as a range of benefits and services that employees receive

as parrot of their total compensation package…pay or compensation…is based on critical job

and performance. Benefits and services, however, are indirect compensation because they are

usually extended as a condition of employment and not directly related to performance.

These include such employee benefits as a provident fund, gratuity, medical care,

hospitalization, accident relief, health and group insurance, canteen, uniform, recreation. And

employee benefits include any benefits that the employee receives in addition to direct

remuneration.

Perquisites:



These are allowed to executives and include company car, club membership, paid

holidays, furnished house, stock potion schemes, and the like. Perquisites are offered to retain

competent executives.

Non monetary benefits:

These includes challenging job responsibilities, reorganization of merit, growth,

prospects, compliant super vision, comparable working conditions and job sharing and flexi

time. Non – monitory benefits are subsided food and recreational facilities to employees.

THERIES OF EMPLOYEE REMUNERATION

In order to understand which components of remuneration are more effective, we

need to understand the conceptual framework or theories of employee remuneration. Three

theories are as follows.

1. Reinforcement and Expectancy theory

2. Inequity theory

3. Agency theory

1) Reinforcement and expectancy theory:

The enforcement theory postulates that a behavior which has a rewarding experience

is likely to be repeated. The implication for remuneration is that high employee performance

fallowed by a monetary reward will make future employee performance more likely. The

theory emphasizes the importance of a person actually experiencing the reward.

Like the reinforcement theory, vroom’s expectancy theory focuses on the link

between rewards and behavior. Motivation, according to theory is the product of valance,

instrumentality and expectancy. Remunerating system differ

According to these motivational components. Expectancy perceptions often have more to do

with job design and training than pay system.

2) Equity theory:

Adam’s equity theory posits that an employee who perceives inequity in his or her rewards

seeks to restore equity. The theory emphasis’s equity in pay structure of employee

remuneration.



Employee perception of how they are being treated by the firm is of prime importance to

them. The dictum ‘a fair day work for fair day pay’ denotes sense of equity felt by employee.

When employees perceive inequity, it can result in lower productivity, higher absenteeism or

increase in turnover.

3) Agency theory:

The agency theory focuses on the divergent interests and both of the organization’s

stakeholders and the way that employee remuneration can be used to align these interests and

goals. Employer and employees are the two stakeholders of business unit, the former

assuming the role of principals and the latter the role of agent. The remuneration payable to

employees is the agency cost. It is natural that the employees expect high agency costs. While

the employers seek to minimize it. The agency theory said that the principal must choose a

contracting scheme then helps align the interest of the agency with the principal’s own

interest. These contract can be classified as either behavior – oriented (eg.merit pay) or

outcome oriented (eg.stock option schemes, profit sharing commission).

Importance of an ideal remuneration system:

Remuneration is the only HR activity which has its impact on all other functions

regarding personnel.

An effective system of remuneration, it is useful to bring out the importance of an

ideal remuneration system.

Employees get motivated perform better when their past performance is rewarded

adequately. Employees set expectations about rewards and compensation to be

compensation to be received, if certain levels of performance are achieved.

Factors influencing Employee Remuneration

a) External factors

b) Internal factors

a) External factors:

1) Labour market.

2) Cost of living.

3) Labour unions



4) Government legislations

5) Society

6) Economy.

Factors external to an organization are labour market, cost of living, labour unions,

and government legislations. The society and the economy.

1) Labour market : Demand for and supply of labour influence wage and salary fixations. A

low wages and salary fixed when the supply of labour exceeds the demand for it. And vice

versa.

2) Cost of living : This criterion matters during periods of raising prices and is forgotten

when prices are stable and falling.

3) Labour unions : The presence or absence of labour organization open determines the

quantum of wages paid to employees.

4) Society : The remuneration paid to employees is reflecting in the prices by fixed by an

organization for its goods and services. For this reason, the consuming public is interested in

remuneration decision.

5) The economy : The last external factor that has its impact on wage and salary fixation is

the state of economy. For example, a depressed economy will probably increase in the labour

supply.

b) Internal factors:

1) Business strategy.

2) Job evaluation and performance appraisal.

2) Business strategy : The overall strategy which a company pursues should determination to

its employees. Where the strategy of the enterprises is to achieve rapid growth, remuneration

should be higher than what competitors pay.



3) Job evaluation and performance appraisal: Job evaluation helps establish satisfactory

wages differentials among jobs. Performance appraisal helps award pay increases to

employee who shows improved performance.

ANNALYSIS AND INTERPRETATION

1) Education of employees

TABLE NO: 1

INTERPRETATION:


Frequency Percent Valid Percent Cumulative Percent

Valid SSLC 21 21.0 21.0 21.0

PUC 25 25.0 25.0 46.0

DEGREE 30 30.0 30.0 76.0other courses 24 24.0 24.0 100.0

Total 100 100.0 100.0


The above table and chart shows that 21% of employee’s qualification is SSLC, 25%

of employee’s qualification is PUC, 30 % of employee’s qualification is DEGREE and

remaining 24 % of employee’s qualification is other courses. So most of them SSLC and

PUC qualified employees.

2) How good is SDKSSKN to work?

TABLE NO: 2

INTERPRETATION:

The above table shows that 16% of employee’s opinion that working conditions are

good, 39 % of the employee’s opinion that very good, 22% of employee’s opinion that good,

and 23% of the employee’s opinion that satisfactory with working condition.


Frequency Percent Valid Percent Cumulative Percent

Valid exceptionally good

16 16.0 16.0 16.0

very good 39 39.0 39.0 55.0good 22 22.0 22.0 77.0

satisfactory 23 23.0 23.0 100.0

Total 100 100.0 100.0


3) Are you

satisfied you’re Job?

TABLE NO: 3


Frequency Percent Valid Percent

Cumulative Percent

Valid yes 87 87.0 87.0 87.0

no 13 13.0 13.0 100.0Total 100 100.0 100.0


INTERPRETATION:

The above table and chart depicts that 87% of employees are satisfied with their

present job and 13% of employees are dissatisfied. So most of the employees are satisfied

with job.

4) Do you feel insecure regarding job and salary?

TABLE NO: 4

Frequency Percent Valid Percent Cumulative

Percent

Valid always 27 27.0 27.0 27.0

some time 47 47.0 47.0 74.0

never 26 26.0 26.0 100.0

Total 100 100.0 100.0

INTERPRETATION:



The above table and chart shows that 27% of employees are feeling insecure always.

47% of employees are feeling insecure some time. And remaining 26% of employees are

never feeling insecure regarding job.

5) Satisfaction with salary being paid to you

TABLE NO: 5


Frequency Percent Valid

Percent

Cumulative

Percent

Valid yes 62 62.0 62.0 62.0

no 38 38.0 38.0 100.0

Total 100 100.0 100.0


INTERPRETATION:


being paid by company. And remaining 38 % of employees are dissatisfied with salary being

paid by company.

6) Canteen facilities provided to you are good

TABLE NO: 6



INTERPRETATION:

The above table and chart showing that 39 % of employees agree to canteen facility.

7% of employees are strongly agreed with canteen facility. 30% of employees are disagreeing

with canteen facility. And 24 % employees are strongly disagreeing with canteen facility.

Most of the employees are the disagree and strongly disagree with canteen facility.



Percent

Valid agree 39 39.0 39.0 39.0

strongly agree 7 7.0 7.0 46.0

disagree 30 30.0 30.0 76.0

strongly disagree 24 24.0 24.0 100.0

Total 100 100.0 100.0


7) Satisfaction with other facilities

TABLE NO: 7


Percent

Valid yes 95 95.0 95.0 95.0

no 5 5.0 5.0 100.0

Total 100 100.0 100.0

INTERPRETATION:

The above table and chart showing that 95 % of employees are satisfying with other

facilities like safety measures given by the management and 5% of employees are

dissatisfying with other facilities.



8) Medical facilities provided to you are good

TABLE NO: 8


Percent

Cumulative

Percent

Valid agree 54 54.0 54.0 54.0

strongly

agree

46 46.0 46.0 100.0

Total 100 100.0 100.0

INTERPRETATION:

The above table and chart showing that 54 % of employees agree with medical facility

provided by company and 46% of employees are strongly agree with medical facility. Most

of the employees are the agreed with medical facility.

9) Fringe benefits given to you are good



TABLE NO: 9

INTERPRETATION:

The above table and chart showing that 58 % of employees agree with fringe benefits,

35% of employees strongly agree with fringe benefits, 4% of employees disagree with fringe

benefits and 3% of employees strongly disagree with fringe benefits.

10) Family welfare scheme provided to you


Frequency Percent Valid Percent

Cumulative Percent

Valid agree 58 58.0 58.0 58.0

strongly agree

35 35.0 35.0 93.0

disagree 4 4.0 4.0 97.0strongly disagree

3 3.0 3.0 100.0

Total 100 100.0 100.0


TABLE NO: 10


Percent

Cumulative

Percent

Valid yes 64 64.0 64.0 64.0

no 36 36.0 36.0 100.0

Total 100 100.0 100.0

INTERPRETATION:

The above table and chart showing that 64 % of employees good with family welfare

scheme provided by company and 36 % of employees are not good with family welfare

scheme.

11) Any transportation facility provided by your company



TABLE NO: 11


Percent

Valid yes 26 26.0 26.0 26.0

no 74 74.0 74.0 100.0

Total 100 100.0 100.0

INTERPRETATION:



12) Your company credits your salary within prescribed time

TABLE NO: 12




Percent

Cumulative

Percent

Valid yes 94 94.0 94.0 94.0

no 6 6.0 6.0 100.0

Total 100 100.0 100.0

NTERPRETATION:

The above table and chart showing that 94 % of employees are getting salary within

prescribed time and 6% of employees are not getting salary within prescribed time.

13) Your company paying bonus

TABLE NO: 13




Percent

Cumulative

Percent

Valid yes 100 100.0 100.0 100.0

INTERPRETATION:

The above table and chart showing that 100 % of employees are yes to all employees

get bonus from company.

14) Do you have Leave Facility?

TABLE NO: 14




Percent

Cumulative

Percent

Valid yes 100 100.0 100.0 100.0

INTERPRETATION:

The above table and chart showing that 100 % of employees are having leave facility.

15) Company encashing earn leave during last year

TABLE NO: 15




Percent

Cumulative

Percent

Valid yes 77 77.0 77.0 77.0

no 23 23.0 23.0 100.0

Total 100 100.0 100.0

INTERPRETATION:

The above table and chart showing that 77 % of employees to enchasing by company

earn leave. And 23 %of employees are not got earn leave during last year.

FINDINGS:-

The above table and chart shows that 21% of employee’s qualification is SSLC, 25%

of employee’s qualification is PUC, 30 % of employee’s qualification is DEGREE

and remaining 24 % of employee’s qualification is other courses. So most of them

SSLC and PUC qualified employees.



The above table shows that 16% of employee’s opinion that working conditions are

good, 39 % of the employee’s opinion that very good, 22% of employee’s opinion

that good, and 23% of the employee’s opinion that satisfactory with working

condition.

The above table and chart depicts that 87% of employees are satisfied with their

present job and 13% of employees are dissatisfied. So most of the employees are

satisfied with job.

The above table and chart shows that 27% of employees are feeling insecure always.

47% of employees are feeling insecure some time. And remaining 26% of employees

are never feeling insecure regarding job.


being paid by company. And remaining 38 % of employees are dissatisfied with

salary being paid by company.

The above table and chart showing that 39 % of employees agree to canteen facility.

7% of employees are strongly agreed with canteen facility. 30% of employees are

disagreeing with canteen facility. And 24 % employees are strongly disagreeing with

canteen facility. Most of the employees are the disagree and strongly disagree with

canteen facility.

The above table and chart showing that 95 % of employees are satisfying with other

facilities like safety measures given by the management and 5% of employees are

dissatisfying with other facilities.



The above table and chart showing that 54 % of employees agree with medical facility

provided by company and 46% of employees are strongly agree with medical facility.

Most of the employees are the agreed with medical facility.

The above table and chart showing that 58 % of employees agree with fringe benefits,

35% of employees strongly agree with fringe benefits, 4% of employees disagree with

fringe benefits and 3% of employees strongly disagree with fringe benefits.

The above table and chart showing that 64 % of employees good with family welfare

scheme provided by company and 36 % of employees are not good with family

welfare scheme.



The above table and chart showing that 94 % of employees are getting salary within

prescribed time and 6% of employees are not getting salary within prescribed time.

The above table and chart showing that 100 % of employees are get bonus in last year

from company.

The above table and chart showing that 100 % of employees are having leave facility.

The above table and chart showing that 77 % of employees to enchasing by company

earn leave. And 23 %of employees are not got earn leave during last year.

RECOMMONDATIONS:-



From this survey I have observed that some points discussed below, where there is

need of improvements in the employee remuneration and satisfaction so that will lead to good

performance of employees. And achieve the organization objective.

In this survey 21% of employee’s qualification is SSLC, 25% of employee’s qualification

is PUC, more preference should be given to qualified and experience persons.

More attention should be given to increase the employee participation in the management

of the company. To give securing the job.

On survey base 38 % of employees are dissatisfied with salary being paid by company.

Salary should be given on the basis of performance and qualification base.

From the employee part of view 30% of employees are disagreeing with canteen facility.

And 24 % employees are strongly disagreeing with canteen facility. Most of the

employees are disagreeing and strongly disagree with canteen facility. Company should

provide basic need of good quality food in the canteen to increase efficiency of workers.

By survey to recommend that 36 % of employees are not satisfied with family welfare

scheme. The company should give more stress to improve the family and employee

welfare scheme

Company should make arrangement for the cab facility to employees.

Motivate the employees by providing more bonuses and incentive schemes from the

company.

Rewards should be given for efficient work.



Should make separate human resource development department.

Company should provide training for workers in their work field.

The factory must install new technology and fast machine in the production process to

move towards the quality policy “total customer satisfaction ”

CONCLUSION:

The object of the project is to study various departments and section of the SHREE

DOODHAGANGA KRISHNA SAHAKARI SAKKARE KARKHANE NIYAMIT,



CHIKODI. The company has number of department, viz., General administration, finance

and accounts departments, Sale department, Store department, go-generation, distillation,

Mechanical, Godawon and purchase departments, Labour welfare office, Time office, Watch

and ward, Cane yard, Engineering department, Agriculture department. The focus is on

human resource department the title being “Employee remuneration and satisfaction system”.

By conducting the study can be concluded that these entire departments are actively

working towards the achievement of the goals and objectives of the factory. The management

Isalso efficient in the work, so the factory is achieving great progress in year by year.

In DKSSKN employees get salary on monthly. Dissatisfaction towards canteen

facility and family welfare scheme providing good canteen and family welfare scheme, cab

facility providing creating awareness towards company to achieve goals. And utilization of

the resources, because now they are being under utilized over the factory is doing well.

ANNEXURE:

QUESTIONNARE:-

Dear respondents,



Name:-____________________________________________________________

Year of experience: - _______________ Designation:-________________

1. Education of employees1) SSLC 2) PUC

3) DEGREE 4) other vocational courses

2. How good is SDKSSKN to work?

1) Exceptionally good 2) Very good 3) Good 4) Satisfactory

3. Are you satisfied with your job? 1) Yes

2) No

4. Do you feel insecure regarding job and salary?

1) Always 2) Some time 3) Never

5. Are you satisfied with salary being paid to you?

1) Yes 2) No

6. The canteen facility facilities provided to you are good?

1. Agree 2. Strongly agree 3. Disagree 4. Strongly disagree

7. Are you satisfied with other facilities like safety measures etc given by the management?

1) Yes



2) No

8. The medical facilities provided to you are good?


9. Fringe Benefits like hospitalization, accident relief and uniform given to you are good?


10. Is there any family welfare schemes provided by the company?

1) Yes 2) No

If yes, state what it is ? _________________________________

11. Is there any transportation facility provided by your company?

1) Yes 2) No

12. Does your company credits salary to your account within prescribed time?

1) Yes 2) No

13. Does your company paying bonus as per the bonus act 1963?

1) Yes 2) No

If yes, state what is the percentage:- ____________

14. Do you have leave facility?

1) Yes



2) No

15. Does your company encashing earn leave earned during last year?

1) Yes 2) No

DATA CODE SHEET

Sl.no Q1 Q2 Q3 Q4 Q5 Q6 Q7 Q8 Q9 Q10 Q11 Q12 Q13 Q14 Q151 3 2 1 3 1 3 1 1 1 2 2 1 1 1 12 4 2 1 1 1 3 1 2 1 1 1 1 1 1 23 3 2 2 1 1 3 1 2 1 1 2 1 1 1 24 3 3 2 3 1 3 2 1 1 2 2 1 1 1 25 3 4 1 2 1 1 1 1 1 1 1 1 1 1 16 2 2 1 3 1 1 1 1 1 1 1 1 1 1 17 2 2 1 3 1 1 1 1 1 1 2 1 1 1 18 2 3 2 3 1 1 1 1 1 1 2 1 1 1 19 4 2 1 3 1 1 1 1 1 1 2 1 1 1 110 3 4 1 3 1 1 1 1 3 1 2 1 1 1 111 3 4 1 3 1 1 1 1 1 1 1 2 1 1 112 3 2 1 2 1 1 1 2 2 1 2 1 1 1 113 1 2 1 2 1 1 1 2 2 1 2 1 1 1 114 1 2 2 1 2 2 1 2 2 1 2 1 1 1 115 1 2 1 2 1 3 1 2 2 1 2 1 1 1 116 4 3 1 2 1 1 1 2 2 1 2 1 1 1 117 3 2 1 3 1 1 1 2 2 1 2 1 1 1 118 3 2 1 3 1 1 1 2 2 1 2 1 1 1 119 1 4 1 2 1 1 1 2 1 1 2 1 1 1 220 4 4 1 2 2 3 1 2 1 1 2 1 1 1 121 1 3 1 2 2 1 1 2 2 2 1 2 1 1 122 2 2 1 2 1 1 1 1 2 1 2 1 1 1 123 1 2 1 2 1 1 1 1 2 1 2 1 1 1 124 1 2 1 2 1 1 1 1 2 1 2 1 1 1 125 1 4 1 3 1 1 1 1 2 1 2 1 1 1 126 2 4 1 3 1 1 1 2 1 1 1 2 1 1 127 2 4 1 2 1 1 1 1 2 1 2 1 1 1 128 3 3 1 1 1 2 1 1 1 1 1 1 1 1 129 3 2 1 3 1 1 1 2 2 1 1 1 1 1 130 3 2 1 1 1 1 1 1 1 1 1 1 1 1 1



31 2 4 2 1 2 1 2 1 1 1 1 1 1 1 132 3 4 1 1 2 1 1 1 1 1 1 2 1 1 133 3 4 1 3 1 1 1 1 1 1 2 2 1 1 134 3 2 1 2 1 1 1 1 3 1 2 1 1 1 135 1 3 1 1 1 1 1 1 1 1 1 1 1 1 136 3 4 1 3 1 1 1 1 1 1 2 1 1 1 237 4 2 1 2 1 4 1 1 1 2 1 1 1 1 138 2 1 1 3 1 3 1 1 1 2 2 1 1 1 139 3 4 1 2 1 4 1 2 1 2 2 1 1 1 140 2 2 1 3 1 3 1 1 1 2 2 1 1 1 141 3 3 1 2 2 4 1 1 1 2 1 1 1 1 142 3 3 1 2 2 4 1 1 1 2 1 1 1 1 143 2 3 1 2 2 4 1 1 1 2 1 1 1 1 144 2 3 1 2 2 4 1 1 4 2 1 1 1 1 145 4 1 2 3 2 4 1 1 2 2 2 1 1 1 146 3 3 1 2 2 4 1 1 1 2 2 1 1 1 147 3 2 1 1 1 1 1 1 1 2 2 1 1 1 248 3 3 1 2 2 4 2 1 1 2 2 1 1 1 249 4 2 1 2 1 4 1 2 1 2 1 1 1 1 150 4 4 1 1 2 4 1 2 1 2 1 1 1 1 151 2 1 1 2 1 3 1 2 1 2 2 1 1 1 252 3 2 1 3 1 3 1 2 1 2 2 1 1 1 153 4 2 1 2 1 4 1 2 1 2 1 1 1 1 154 4 3 1 1 2 3 1 1 1 2 2 1 1 1 155 4 2 1 2 1 4 1 1 2 2 2 1 1 1 156 4 2 1 2 1 3 1 2 2 2 2 1 1 1 157 4 2 1 2 1 4 1 2 1 2 1 1 1 1 158 4 4 1 1 2 4 1 1 1 2 2 1 1 1 159 4 2 2 1 2 4 1 2 2 2 2 1 1 1 160 4 4 1 1 2 4 1 2 1 1 2 1 1 1 161 4 1 1 2 2 3 1 2 2 2 1 1 1 1 162 2 1 1 2 1 2 1 1 1 2 2 1 1 1 163 4 1 1 1 2 3 1 2 3 1 2 1 1 1 164 3 2 1 3 1 3 1 2 1 1 1 1 1 1 165 3 2 1 2 1 2 1 2 2 1 2 1 1 1 166 4 1 1 1 2 4 1 1 1 2 2 1 1 1 167 2 2 2 1 2 4 1 1 1 1 2 1 1 1 268 2 2 1 3 1 1 1 1 2 1 2 1 1 1 169 2 1 1 2 1 3 1 1 1 1 2 1 1 1 270 3 2 1 3 1 3 1 2 2 1 2 1 1 1 171 2 1 1 2 2 1 1 1 1 1 2 1 1 1 172 2 2 1 3 1 2 1 2 2 1 2 1 1 1 173 3 1 1 2 1 2 1 2 2 1 2 1 1 1 174 2 1 1 1 1 1 1 2 2 1 2 1 1 1 175 3 2 1 2 1 1 1 2 1 1 2 1 1 1 276 1 3 1 2 1 3 1 2 1 1 2 1 1 1 177 1 2 1 1 1 3 1 1 1 1 2 1 1 1 178 1 4 1 2 2 4 1 1 1 1 2 1 1 1 279 4 3 2 2 2 3 1 1 2 1 2 1 1 1 180 1 1 1 2 2 4 1 1 1 1 2 1 1 1 281 3 3 1 1 2 3 1 2 4 1 2 1 1 1 182 2 3 1 2 1 2 1 2 1 1 2 1 1 1 183 1 4 1 2 1 4 1 2 2 1 2 1 1 1 284 1 3 1 2 1 3 1 2 1 1 2 1 1 1 185 2 4 1 2 1 1 1 2 2 1 2 1 1 1 186 2 2 1 2 1 4 1 1 1 1 2 1 1 1 187 1 3 1 1 2 3 1 2 2 1 2 1 1 1 188 2 3 1 1 2 3 1 2 2 1 2 1 1 1 2



89 4 4 1 1 2 3 1 1 1 1 2 1 1 1 290 4 2 2 1 2 1 2 1 2 1 1 2 1 1 291 1 4 1 3 2 3 1 2 2 2 1 1 1 1 292 1 1 2 1 2 1 1 1 4 2 2 1 1 1 293 1 4 1 2 2 3 1 1 1 1 2 1 1 1 294 4 1 1 1 2 3 1 1 1 2 2 1 1 1 195 2 1 1 2 2 3 1 2 3 2 2 1 1 1 196 1 3 1 1 2 1 1 2 1 1 2 1 1 1 297 1 1 2 3 1 1 2 2 2 2 2 1 1 1 298 2 4 2 2 2 1 1 1 2 2 2 1 1 1 299 3 2 1 3 2 4 1 1 2 2 2 1 1 1 1100 4 3 1 2 1 3 1 2 1 1 1 1 1 1 1

BIBILOGRAPHY

Essentials of Human Resource Management and Industrial Relations by P. Subba Rao

Marketing Research by Tull and Hawkins

Marketing research by A. Parasuraman 1st Indian adaptation, published by biztantra

Company annual book

Oxford Dictionary

WEBSITES

http://www.google.com/

E-mail: [email protected]


a project report on employee remuneration satisfaction

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