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COMPENSATION OF DIFFERENT COMPENSATION OF DIFFERENT COMPANIESCOMPANIES

BY: GROUP 10 {OLS}FIONA

SHAMBHAVI

PRAPOORNA

SHREY

SWARNIKA

VISHNU

 

Group-10

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•NTPC- VINDHYACHAL PROJECT (3260MW) which is presently India’s largest capacity power plant. NTPC- VSTPP is nation’s largest Thermal Power Station

•NTPC VINDHYACHAL has been rated as one of the best place for work in entire NTPC PLANTS.

•According to the survey NTPC is rated as “Great places to work for” , “ Best company to work for”.

1975 1997 2004 2005

NATIONAL THERMAL POWER CORPORATION WAS BORN

GRANTED“NAVRATNA” Status

NTPC BECOMES A LISTED COMPANY

THE COMPANY BECOMES NTPC LIMITED

Evolution of NTPC

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Pay Scales of Executives

Scale Code Pay Scale (Rs.)Representative

DesignationE2

24900-50500Executive Trainee/Sr. Astt. Engineer

E2A 24900-50500 Engineer/OfficerE3

29100-54500 Senior Engineer/Sr. Officer

E4 32900-58000 Deputy Manager

E536600-62000 Manager/DCDE /Supdt.

E6 43200-66000 Senior Manager

E751300-73000 Deputy General Manager

E7A51300-73000 Addl. General Manager

E8 51300-73000 General ManagerE9 62000-80000 Executive Director

COMPENSATION STRATEGY OF NTPC

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PAY SCALES FOR NON- EXECUTIVES(WORKMEN)

SOURCE PAW10Y SCALE

DESINATION

W3 11500-26000 Jr.Operator/Jr.Technician/ Artisan/Jr. Draughtsman/ Jr. Assistant/Cook.Operator

W4 12500-27500 Gr.IV/Technician Gr.IV/Draughtsman Gr.IV/ Assistant Gr.IV/Steno-Typist

W5 135800-29500 . Gr.III/Technician Gr. Ill/Draughtsman Gr.III/ Assistant Gr. Ill/Stenographer

W6 14500-32000 Operator Gr.II/Technician Gr.II/Draughtsman Gr.II/ Assistant Gr.II/Sr. Stenographer.

W7 15500-34500 Operator Gr.I/Technician Gr.I/ Draughtman Gr.I/Asstt. Gr.I

W8 16000-35500 Sr. Technician/Sr .Draughtsman Sr.Assistant.

W9 17000-37000 Master Technician Gr.II

W10 18500-40000 Master Technician Gr.I

W11 20000-42500 SUB- Engineer

Allowances / Reimbursement / Benefits

DA allowance: increases in quarterly basis on basic salary , JAN, APRIL , JULY, OCT. Other PRE & ALLOWANCES : Approach followed is CAFÉ – CEIATIA. It is 47% of the basic.

INCREMENT: 6% of the basic pay of employee. Data of increment : employees appointed and promoted b/w 1 JAN - 31 MARCH STANDARD DATE IS 1 JANUARY If employees appointed and promoted b/w 1 April – 30 June Date of increment is 1 APRIL . If employees appointed and promoted b/w 1 July – 30 Sep Date of increment is 1 JULY . If employees appointed and promoted b/w 1 Oct – 30 Dec Date of increment is 1 OCTOBER .

Non performing allowances : (started from 26 Nov 2008) provided to Doctors working in the organization , 25% of their basic salary.

Field compensation : employees working in project/ station they get compensation of 10% of their basic salary.

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Paid Leave : CL-12, HPL – 20 EL- 30, along with leave Encashment facility.Closed Holidays – 8, Restricted Holidays – 06

Education facility :Study leave up to a period of 3 years after 3 years of service .

Medical facility : Very liberal medical facilities without any contributions. Reimbursement of OPD & hospitalization charges. Number of good hospitals, including super specialty hospitals on the Company’s panel.

OPD

MBBS 80 4 VISITS

MD 200 4 VISITS

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GRADE

W8 – E2 520/-

E2A – E4 840/-

E5 – E7 1000/-

E8 - E9 1250/-

HOSPITALIZATION CHARGES

Well equipped hospitals at projects with state of the art facilities and equipments.

NORTH EAST ALLOWANCE : 12.5% of their basic salary

COAL MINE SITE ALLOWANCE :15% of their basic salary

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HRA COMPONENT : • is given to only those people who is not provided house by the company .Range is

A1 METRO 30% BS

B1 PRIME CITIES 20% BS

C1 LOCAL CITIES 10% BS

• ACCOMODATION given to employees

A TYPE QUARTERS W3-W7

B TYPE QUARTERS W8-W11

C TYPE QUARTERS E1-E4

D TYPE QUARTERS E5-E7

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TRAVELLING ALLOWANCES GRADE RAILS/ AIR ROADS LOCAL

E5 AND ABOVE

AC-1/2 TIERAIR-BUSINESS CLASS

ACTUAL TAXI FARE

ACTUAL TAXI FARE

E3- E4 AC-1/2 TIERAIR-ECONOMY CLASS

ACTUAL TAXI FARE BUT THE RATE Rs 6.10 /km

ACTUAL TAXI FARE BUT THE RATE Rs 6.10 /km

E2 A GRADE

AC-1/2 TIERAIR-ECONOMY CLASS

TAXI 2.30/KM OR ACTUAL BUS FARE

ACTUAL AUTO FARE OR A SHARING TAXI FOR Rs 2.30 /KM

E2 –W8 SECOND AC SHARING TAXI FOR Rs 1.20

SHARING TAXI FOR Rs 1.20

TRAVELLING ALLOWANCE

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DAILY ALLOWANCES

CATEGORY METRO CITY

PRINCIPLE CITY

ORDINARY CITY

E9 14000 11000 8800

E7-E8 9800 7700 6160

E5-E6 5600 4400 3500

E3-E4 4200 3300 2600

E1-E2A 3100 2500 2000

W8- ABOVE 1700 1350 1000

Advances[At low rates of Simple Interest-reducing balance method)

HBAMaximum of 7.5 lacs, after 5 years of service

Conveyance Advance Car advance – Max Rs.250000/- (as per today’s price) Motor Cycle – Max. Rs. 35000/- structure) PC Advance – Rs.40,000/-

Multipurpose Loan - Rs.11,225/- p.a., interest free.

Furniture Loan – Rs.15,000/-, interest free.

Education loan – Max 1000000/-

Social Security/Insurance Benefits 

Coverage under:•Group Personal Accident insurance•Group Insurance•Housing Building Advance Insurance (with very nominal contributions by self)•Pension Fund.

AccommodationFull fledged, excellently maintained township amidst lush green environment with all facilities like clubs, recreation centers, movie theatres, marketing complexes, parks etc. to ensure a superior quality of life.

Education Of Children Schools of repute like DPS, Kendriya Vidyalaya, DAV and other convent schools upto Class XII to ensure education standards for children- 50% fee provided by NTPC

HYPERLINKS

• C:\Users\swarnika\Downloads\Payslip-101163-082012.pdf

• C:\Users\swarnika\Downloads\paysip\w11.pdf

• C:\Users\swarnika\Downloads\paysip\W3.pdf

• C:\Users\swarnika\Downloads\paysip\e7.pdf

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RESPONSIBILY OF EXECUTIVES

FINANCE OFFICER E2A ASST. GEN MANAGER E7

Check and pays the store bills- equipment, oil, cement, steel that is required for construction and production

Maintains companies VSTPP’S balance-sheet, profit and loss accounts, quarterly audits

Coal payment.

Water charges

Monitors the work of the sub-ordinates

Co-ordinates inter/intra department

Facilitates the work flow

Concurrence of financial data

Jindal steel And Power

• Established in 1952• Based In New Delhi• Current Chairman Is Mr Naveen Jindal

Organisation Structure

• Two categories Of Employees, • White Collar Employees• Blue Collar Employees• Blue collar employees Are Outsourced• Their Salaries Are Paid By The Contractor Who

Employs Them• These Are Not Available For Disclosure

• White Collar Employees Are Graded Into several Grades• The Pay Structure Is Job Based• The Salaries Are Incremental In Serial Manner• The Basic Break Up Of The salaries Is Constant• Salary Calculator-salary calculation on excel.xlsx

• Job DescriptionKRA Format 2012-13 rev TO PRIYA.docx• The Following Are The subordinates who report to him- 2

junior managers, 1 assistant engineer, 2-3 foremen, 20 workers

• The seniors are 1 deputy manager, 1 assistant general manager, 1, senior Deputy General Manager, 1 senior general manager

• Total Number Of Levels In The hierarchy is 7

Adhunik Power Limited

• The Company Is Again Divided Into 2 categories, namelyWhite And Blue Collar Employees

• The Salary Of The White collar Employees Is Available• The Blue collar Employees Are Outsourced To A

Contractor- Salaries Are Kept Confidential And Not Available With The White Collar Employees

• The Pay Slip Of An Employee• 00302133'.pdf• neuer anfangen.xlsx• The Components Of The salary are constant for all white

collar employees, only the total compensation changes• The Job description of The Senior engineer is as

follows(Hyperlink)

Similarities in these two companies

• These two companies in the private sector- similar pay strategies

• Job rather than person based • Heirarchical rather than egalitarian(possibly due to

expanding nature of business)• Tailored rather than loosely coupled(less innovation)

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DIFFERENCE IN COMPENSATION STRATEGIES

PUBLIC SECTOR PRIVATE SECTORS

NTPC Adhunik Power Limited,Jindal steel And Power

•Long hierarchical structural • Hierarchal is small, delayer

•Basic pay for each level in fixed and other allances and bonus depends on % of basic pay

The components of salary structure is fixed.

Job evaluation method used is CLASSIFICATION and person-based structures

Job evaluation method used is RANKING (paired comparison)

More of prek, allowances and benefits • Less of allowance

•Most of the allowances are fixed under the policy of the organization

•Its based on annual tax budget

• It follows both MERIT and INCENTIVES base pay

•It mainly focus on INCENTIVE base pay.

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•More focus on WORK- LIFE BALANCE

KEY OBJECTIVE is PROFIT MAXIMIZATION

• PROMOTION is time bound. •It can happen at any point of time in financial year.

•Special pay on case of duty on government holiday i.e double the basic pay only for workmen : executives will get holiday only.

•No such provision.

•Facility of half pay leave and can be encash after it reaches to 300

•No such scheme

Restricted holidays for people of designated community- 6 days /year

•No such provision.

•Special allowances for motivating and encouraging worker to work in the given condition

• No such allowance.

•Monthly increments •Yearly increment

•Almost equal amount of fixed and variable pay.

•More on variable pay.

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Conclusion of analysis

Hence for healthy competition, high incentives and for high recognition, fast career growth the compensation structure of PRIVATE sector is more efficient.

For good working culture, job security, work-life balance , equal- opportunity of career success the compensation structure of PUBLIC sector is more efficient.

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