A STUDY ON COMPENSATION MANAGEMENT IN VALUELABS

Submitted in partial fulfillment of the requirement of the

MASTER OF BUSINESS ADMINISTRATION

Submitted By
KANDUKURI KIRANMAI
H.T No. 227817672089

Under the guidence of

Dr. NIDHI PANDEY

VISHWA VISHWANI SCHOOL OF BUSINESS

(Affiliated to Osmania University)
THUMKUNTA (VIL), SHAMIRPET ROAD
Hyderabad (INDIA)

2017-19
 DECLARATION

I KANDUKURI KIRANMAI, H.T No: 227817672089 hereby declare

that, this project titled “A STUDY ON COMPENSATION
MANAGEMENT IN VALUELABS” is an original work carried out by
me, under the guidance of Dr. NIDHI PANDEY The report submit by me
is a bonafide work carried by me of my own effort and it has not to
submitted to any other university or published any time before.

Date: KANDUKURI KIRANMAI

Place: H.T. No.227817672089
 CERTIFICATE BY THE GUIDE

This is to certify that the Project Report title “A STUDY ON COMPENSATION

MANAGEMENT IN VALUELABS” submitted in partial fulfillment of Masters
Business Administration, at VISHWA VISHWANI SCHOOL OF MANAGEMENT,
OSMANIA UNIVERSITY, Hyderabad was carried out by “KANDUKURI
KIRANMAI ” bearing HT.NO: 227817672089 under the guidance of DR. NIDHI
PANDEY. This has not been submitted to the university or institution for the award of
Any Degree/Diploma/Course.

Signature of the Internal Guide Signature of External

s
 ACKNOWLEDGEMENT

I have taken efforts in this project. However, it would not have been possible
without the kind support and help of many individuals and organizations. I would like
to extend my sincere thanks to all of them.
I am highly indebted to the Principal Dr. MOHAN.S.RAO Sir for extending all
the institutional help.
I would like to thank Project guide Dr. NIDHI PANDEY for her guidance and
constant supervision as well as for providing necessary information regarding the
project & also for their support in completing the project.
I would like to acknowledge the helpful effort provided by our college librarian
& Lab technicians Sirs.
I would like to express my gratitude towards all my faculties and friends for their
kind cooperation and constant encouragement which helped me in completion of this
project.
 INDEX
Chapter Content Page
No. No.
Abstract/Executive summary
List of tables and Figures
I INTRODUCTION 1-11
1.1 introduction to the study 1-5
1.2 Need for the study 6
1.3 Scope of the study 7
1.4 Objectives of the study 7
1.5 Research Methodology 8
1.5.1 Type of Research 8
1.5.2 Area of Research 8
1.5.3 Data Collection Methods 8
1.5.4 Research Instrument 9
1.5.5 Questionnaire Design 9
1.5.6 Sampling Procedure 9
1.5.7 Sample Size 10
1.5.8 Statistical Tools 10
1.5.9 Period of study 10
1.5.10 Limitations of the study 11
II 2.1 REVIEW OF LITERATURE 12-13
III 3.1 Company Profile 14-19
3.2 Industry Profile 20-32
IV DATA ANALYSIS AND INTERPRETATION 33-53
4.1 Data Analysis 33-53
4.2 Statistical Analysis 33-53
V SUMMARY OF FINDINGS & CONCLUSION 54-58
5.1 Findings 54
5.2 Suggestion and Recommendations 55
5.3 Conclusion 55
APPENDIX (Annual Reports/Questionnaire/Brochure) 56-58
BIBLIOGRAPHY/Reference/Website 59
 ABSTRACT/ EXECUTIVE SUMMARY:

This report will show what compensation and benefits are offered to the employees of
ValueLabs. Including benefits management have been concerned with ensuring that
people were equitably paid, that wage rates were competitively set and that benefit
plans were approximately administered.

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.

This research states that an ideal compensation management system will

help you significantly boost the performance of the employees and create more
engaged workforce that’s willing to go the extra mile for the organization. Such a
system should be well-defined and uniform and should apply to all levels of the
organization as a general system. With effective compensation management you’ll
also enjoy clearer visibility into individual employee performance when it comes
time to make critical compensation planning decisions.

These performance appraisals in ValueLabs assist in determining

compensation and benefits, but they are also instrumental in identifying ways to
help individuals improve their current positions and prepare for future opportunities.
Human Resource is the most vital resource for any organization. It is responsible for
each and every decision taken, each and every work done and each and every result.
Employees should be managed properly and motivated by providing best
remuneration and compensation as per the industry standards. The lucrative
compensation will also serve the need for attracting and retaining the best employees.
 LIST OF TABLES AND FIGURES
Chapter No. CONENTS Page No.

4 Table 1 & Chart 1 34

4 Table 2 & Chart 2 35
4 Table 3 & Chart 3 36
4 Table 4 & Chart 4 37
4 Table 5 & Chart 5 38
4 Table 6 & Chart 6 39
4 Table 7 & Chart 7 40
4 Table 8 & Chart 8 41
4 Table 9 & Chart 9 42
4 Table 10 & Chart 10 43
4 Table 11 & Chart 11 44
4 Table 12 & Chart 12 45
4 Table 13 & Chart 13 46
4 Table 14 & Chart 14 47
4 Table 15 & Chart 15 48
4 Table 16 & Chart 16 49
4 Table 17 & Chart 17 50
4 Table 18 & Chart 18 51
4 Table 19 & Chart 19 52
4 Table 20 & Chart 20 53
 CHAPTER-I
INTRODUCTION
 CHAPTER-1

INTRODUCTION

1.1 INTRODUCTION TO THE STUDY:

This project research is based on compensation management policies and practices

in an organization. Where compensation is a strategic tool developed by the organization to
attract new employees, to retain and motivate the existing employees. Employee
compensation is one of the major determinants of employee satisfaction in an organization.
The compensation system represents the Intrinsic and Extrinsic rewards, the employees
receive for performing their jobs. The compensation policy and the reward system of an
organization are viewed by the employees as indicator of the management’s attitude and
concern for them. Companies use compensation management in order to find, keep and
motivate employees to do quality work.

This constitutes measuring job values, designing and maintaining pay structures,
paying for performance, competence and skill, and providing employee benefits.
However, compensation management is not just about money. It is also concerned with that
non-financial compensation which provides intrinsic or extrinsic motivation.

A compensation system is developed so as to obtain a competitive advantage and

bring gains to the organization. Traditionally pay scale in compensation reflected the
importance of the work and the responsibility level. Today, organizations try to assess more
on the worth of an individual, his performance and his contribution to the organization. The
importance of a strategic perspective on compensation rests on the fundamental tenets.
That is compensation policies and practices differ widely across organizations and across
employee groups within organizations.
COMPENSATION MANAGEMENT IN VALUELABS:

The compensation policy for internal employees must be competitive for

retaining and attracting the manpower. The main purpose of compensation is to retain and
uphold as well as attract the potential employees to set a standard of compensation; the
employee will also have a number of objectives that need to be achieved from the
organisation’s compensation policy.

The study is titled “Compensation management in ValueLabs solutions”. This

report is the product of three months long practical working knowledge in ValueLabs. This
includes the information of the compensation management system of ValueLabs, the
overview of the organization; how they perform and maintain compensation management
and also facilities they offer to satisfy their employees. The basic wage, incentives, the
rewards and benefits, together form the compensation package of an employee.
Compensation is what employees receive in exchange for their contribution to the
organization. Compensation management helps the organization to obtain, maintain and
retain a productive workforce.

Based on the foundation of their core values, ValueLabs have built a culture
that provides an entrepreneurial environment and fosters a sense of fulfilment within each
employee. They have always believed that they are a collection of human capital. As long as
they continue to harness, inspire and empower this human capital, they will thrive as a
business. Their ability to provide holistic, long-term careers based on continuous learning &
development, and encourage innovative thinking to create business impact for our clients, is
unmatchable. This is the reason why they have succeeded in building numerous long-
standing client relationships, while making the work challenging, enjoyable and rewarding
for their employees. They think of ValueLabs as more of a platform than a company – they
are all about creating opportunities and fulfilling them, by bringing together the right team
members from across the organization, of their own free will, in a dynamic and fluid manner.

‘Feel connected at your first attempt in knowing us’

 It was all about developing a positive employment relationship and psychological
contract that adopts a total compensation approach which recognizes that there are a
number of ways in which people can be compensated.

The level of compensation differs based on some criteria’s for which employees of
same level consumes different types of compensation in ValueLabs. First of all, due to
education, experience and performance the salary and other compensation benefits differ
person to person. It is the skills that have a huge effect on the compensation.

The more skilled staffs enjoy a better compensation package comparing to others
of similar job recognition. Lastly in accordance with time the employees get additional
benefits that other personnel may not have.

One of the finest things I observe in ValueLabs has always tried their outmost to
keep their best person else by ensuring the best pay scale comparing to the competitors.
Therefore it is seen that the turnout ratio of employees in ValueLabs is so low.

Executive compensation packages in Value labs typically comprise the

following components.

1. Gross salary:

To compare with all the local organisations ValueLabs pays relatively so high to their
lower level employees. It is done to grab the potential employees from the market. The
most important thing about the payment of salary of ValueLabs is that it clears all the
salary payments within time which is quite absent in other companies. The salary of the
employee review based on the performance which is key motivating factor to perform
well. Another thing that is to mention that ValueLabs conducts performance evolution
twice in a year according to that they are to review the salary.

2. Annual incentives: There is a provision of annual incentives of ValueLabs which is

based on the performance of an employee. It works as a motivating factor for the
employees to perform well. Therefore each employee tries their best to make it happen so
that their salary having well shaped structure.
3. Bonus: It refers to rewards for successful performance and maybe related to the results by
individual, team or the organization. It can be simply be said as profit sharing. Bonus is
an extra payment payable to workmen at a minimum of 8.33 percent as minimum.
Maximum @ 20% of Basic and dearness allowance.

4. Travel Allowance: The organisation also provides travel allowance to their employees. If
any employee travels any place regarding company’s prospect, they will get the money or
remuneration that is cost by them but the cost that is spent is verified by the HR personnel
and after that they got the requisition of the money.

5. Disability Leave: If any employee faces unusual accident or physical challenge, then
they are provided leave granted by the company which is called disability leave but for
this leave the salary of them will not be deduced which means these are paid leave.

6. Maternity Leave: Maternity leave may be granted by the competent authority to an

employee for a maximum three months period at a time. This flexibility is provided
considering the labour law made by the government. This is also a paid leave.

Allowances: Elements of pay in the form of a separate sum of money for such aspects of
employment as overtime.

The allowances like HRA- 40%,

Conveyance allowance -40%

Educational allowance- 200

Medical allowance- basic/12(50% basic is calculated from gross.)

1. Employee benefits: These benefits are also known as indirect pay. These include
pensions, sick pay, insurance cover and company cars.

E.S.I – 4.75% ValueLabs is providing 4.75% of Employees’ State Insurance. It is a self

financing social security and health insurance scheme for workers.

P.F – 12% will be paid for the sake of employee benefits.

The employees are also entitled with provident fund in ValueLabs. Actually 12% of the basic
are deducted from each employee for the provident fund along with this 12% another 12%
provided by the company total 24% is installed as the payment of provident fund. This fund
is given to their employees at the end of their service. If any employees leave the
organization before completing three years of employment he will get the provident fund
induce from the 12% of the basic.

2. Non-financial reward: It includes any reward that focuses on the need people have in
varying degrees for achievement, recognition, responsibility and personal growth.
Employment Security, overtime pay, leave pay, pays for holidays, etc.

3. Medical and healthcare: Life insurance, Medical care, Sick leaves etc will be provided.
ValueLabs look after their employees in case of any medical assistance. Therefore employees of
ValueLabs do have the opportunity to enjoy life insurance

The pay sheet contains:

EARNINGS:

Basic, HRA, CA, medical, education, special allowances, ADHOC, arrears and gross.

DEDUCTIONS:

P.F, E.S.I, PT, TDS, LIC, Med claim and other deductions.

The CTC (Cost to Company) of contains:

Gross

P.F

E.S.I

BONUS

L.T.A: Based on designation

1.2 NEED FOR THE STUDY:

1. It can be used for the Fixation of compensation as it is the most important part of
compensation management.

2. The study helps the organization to obtain, maintain and retain a productive
workforce.

3. It concludes that a good compensation package is important to motivate the

employees to increase the organizational productivity.

4. This study makes the ValueLabs aware of the compensation policies and process.

5. Helps the organisation to maintain the existing compensation management practices

and policies.

6. To explain the value of different types of employee levels in valueLabs.

7. To increase the morale of employees for higher employee commitment towards goals
and objectives of the organisation.

8. This research attempts to understand the need of compensation management to

balance the work-employee relation by providing monetary and non-monetary
benefits to employees.

9. It helps in running an organization effectively and accomplishing its goals.

10. Implementation of programs to encourage and reward performance. In fact, a recent

study revealed that this is one of the most critical compensation issues facing large
companies today
1.3 SCOPE OF THE STUDY:
The study will focus on the compensation management of ValueLabs; how they perform and
maintain compensation management. Also it will be discussed the current compensation
practices and policies of ValueLabs.

 To identify the compensation management practices and policies in ValueLabs.

 To measure employee satisfaction on compensation and benefits.
 To ensure that employees are satisfied with existing compensation policies.
 To find out the expectations of employees from management.
 To compare the desired satisfaction with the actual one.
 To suggest appropriate measures for improving compensation management in
ValueLabs.
 To attract highly capable employees so that their efforts produces higher
organisational performances.
 To compare the satisfaction in different levels i.e. female and male employees, juniors
and seniors.

 To find out the various compensation management policies used by the ValueLabs.

 To identify best compensation management practices.

 And to use these practices in formulating guidelines for improving workers
compensation management.

1.4 OBJECTIVES OF THE STUDY:

The primary objectives of the study are to determine the relative worth of different
jobs in the Organization and provide the basis for the compensation management system in
ValueLabs.

 Helps the organisation to reward and encourage employees to do well in their jobs.
 To ensure employee satisfaction with respect to the compensation.
 To understand in detail how to establish pay rates to different level of employee.
 To understand the impact of compensation management on performance level.
 For managing the internal and external consistency in the compensation.

1.5 RESEARCH METHDOLOGY:

As I was involved with the organization for the last three months and work there, I was able
to collect the data from my primary sources. Therefore, data are collected from both primary
and secondary sources. Every now and then I tried to talk to different managers and officials

The research presents several findings of compensation policies plus offer several
recommendations on both workers compensation management practices and other measures
for evaluating employee satisfaction.

For this research I prepared one well structured questionnaire and the questionnaire
has been given in the appendix. I reached the respondents through sites and personally to
administer the questionnaire.

1.5.1 TYPE OF RESEARCH:

DESCRIPTIVE RESEARCH:
This is one that simply describes something such as demographic characteristics of
individuals, groups or events. In this study, the opinion regarding causes of job satisfaction
and its effects are received from the respondents.

1.5.2 AREA OF RESEARCH:

Research has been done in the area of HR tag at ValueLabs.

1.5.3 DATA COLLECTION: Data will be calculated from two measures

PRIMARY DATA: The primary data are which are collected for the first time and thus to be
original in character.

The primary data was collected through questionnaire. This method has been chosen
keeping in view its simplicity and in case of few questions the respondents are free to present
their own views, opinions and suggestions. It was collected through survey method by
distributing questionnaires to HR manager and other Employees. The questionnaires were
carefully designed by taking into account the parameters of my study.

SECONDARY DATA: The secondary data are these which have been collected by someone
else and which have already been passed through statistical price.

In case the secondary data will be collected from the reports like H.R manuals of the
company reports of the company name, books of various authors and from web sites of the
company and others.

1.5.4 RESEARCH INSTRUMENT: Structured questionnaire

1.5.5 QUESTIONNAIRE DESIGN:

The questionnaire consists of 20 questions to collect all the relevant information regarding
compensation management in ValueLabs.
The questionnaire included questions relating to human resource, Job-satisfaction,
demographic details.
 15 questions based on compensation management.
 5 questions based on demographic details.
Total 25 questions are prepared to make this study

1.5.6 SAMPLING PROCEDURE: Convenience sampling

The sampling method used was simple random sampling. The method was used because of
lack of time. The sample size was 50.
1.5.7 SAMPLE SIZE: A sample size of 50 respondents has been chosen out of 200
employees of Employees, HR operations at ValueLabs

Sampling unit - Value Labs

Sampling elements - Employees of Value labs

1.5.8 STATISTICAL TOOLS – Pie chart & percentage analysis

PIE CHART:

A pie chart (or a circle chart) is a circular statistical graph, which is divided into slices to
illustrate numerical proportion. In a pie chart, the arc length of each slice (and consequently
its central angle and area), is proportional to the quantity it represents. While it is named for
its resemblance to a pie which has been sliced, there are variations on the way it can be
presented. The earliest known pie chart is generally credited to William playfiars Statistical
Breviary of 1801.

Pie charts are very widely used in the business world and the mass media. However,
they have been criticized, and many experts recommend avoiding them, pointing out that
research has shown it is difficult to compare different sections of a given pie chart, or to
compare data across different pie charts. Pie charts can be replaced in most cases by other
plots such as the bar chart, box plot or dot plots.

PERCENTAGE ANALYSIS: In this research, various percentages are identified in the

analysis and they are presented pictorially by way of pie charts in order to have a better
quality .

1.5.9 PERIOD OF THE STUDY: It took 90 days to make this study. I have done my
internship at ValueLabs for the period of 90 days from October 29, 2018 till January 28, 2019
as an HR recruiter in Talent Acquisition Team for the project named HR TAG.
1.5.10 LIMITATIONS OF THE STUDY:

 I only worked at the HR department and that was not possible to understand about the
compensation policies and the extent to which the employees were satisfied in other
division.
 There are some information’s that are thought to be confidential to be disclosed to
others.
 Project duration is limited to 90 days.
 As a method adopted is convenience sampling, results may not accurate.
 Most of the employees not responded for our questionnaire during office hours.
 Some of the respondents could not spare much time to answer the questionnaire
because of lack of their valuable time.
 The details given about their performance by the employees might be based in some
cases.
 Complete information has not revealed by the company for administrative responses.
 CHAPTER-II
REVIEW OF LITERATURE

CHAPTER – 2
 REVIEW OF LITERATURE

2.1 REVIEW OF LITERATURE:

Compensation is payment in the form of hourly wages or annual salary combined with
benefits such as insurance, vacation, stock options, etc. that can positively or negatively
affect an employee's work performance. It is the remuneration received by an employee in
return for his/her contribution to the organization. It is an organized practice that involves
balancing the work-employee relation by providing monetary and non-monetary benefits to
employees.

Compensation is an integral part of human resource management which helps in

motivating the employees and improving organizational effectiveness.
Review of Articles:

The collected research articles relating to compensation management are reviewed as under:

According to Gehart and Milkovich (1992),Instead organizations vary the amount

paid according to differences in performance of the individual, group, or whole organization
as well as differences in employee qualities such as seniority, educational levels and skills.

According to Robert and Angelo (2001) opined that the success or failure of
organizations hinges on the ability to attract, develop, retain, empower and reward a diverse
array of appropriately skilled people and is the key to improved performance hence the
enthronement of democratic governance in 1999 brought some civil service reforms
and Anambra State Civil Service Commission got vested with horizontal powers by law
to manage the workforce of the civil service for greater efficiency.

According to Anyebe (2003) states compensation management as being based on a well

Articulated philosophy- a set of beliefs and guiding principles that are consistent with the
values of the organization which recognizes the fact that if HRM is about investing in human
capital from which a reasonable return is required, then it is proper to the skills and
competencies of employees in order to increase the resource-based capability of the
organisation.
According to Armstrong (2005) Compensation management is one of the central pillars of
human resources management (HRM). It is concerned with the formulation and
implementation of strategies and policies that aim to compensate people fairly, equitably and
consistently in accordance with their value to the organization.

According to Harrison and Liska (2008) in their study posit that reward is the centre piece
of the employment contract after all it is the main reason why people work. This includes all
types of rewards, both intrinsic and extrinsic, that are received as a result of employment by
the organisation.

According to Hewitt (2009) Compensation Management as the name suggests, implies

having a compensation structure in which the employees who perform better are paid more
than the average performing employees. This encourages top performers to work harder and
helps to build a competitive atmosphere in the organization.

According to Pearce (2010) Compensation implies having a compensation structure in which

the employees who perform better are paid more than the average performing employees.

According to Bob (2011) Compensation processes are based on Compensation Philosophies

and strategies and contain arrangement in the shape of Policies and strategies, guiding
principles, structures and procedures which are devised and managed to provide and maintain
appropriate types and levels of pay, benefits and other forms of compensation.
This constitutes measuring job values, designing and maintaining pay structures,
paying for performance, competence and skill, and providing employee benefits.
However, compensation management is not just about money. It is also concerned with that
non-financial compensation which provides intrinsic or extrinsic motivation.
 CHAPTER-III
COMPANY PROFILE

CHAPTER-3
3.1 COMPANY PROFILE:

ValueLabs:
Value Labs are a leading global technology company specializing in Digital Enablement and
Product Development. Through our unique One Company model of engagement, we help
companies unleash the potential of digital technology to achieve real business outcomes,
make processes frictionless and lead in disruptive times. Our innovative solutions and a
flexible engagement model help our clients stay ahead of the curve, drive revenues, and
enhance market position. Over nearly two decades since inception, thriving on the principles
of Perfection, Love, Unselfishness and (character) Strength (PLUS), we are ‘inspired by
potential’ and firmly believe in the Company as a Platform (CAAP) concept.

The genesis of ValueLabs can be traced back to a single, spontaneous selfless

act. Way back in 1996, many students in a small school were unable to pay for a computer-
based education Program that we had custom-built for them. We immediately made it free for
everybody. Anything else would have denied the Program to the students that needed it the
most. This act, in turn, triggered a series of steps that finally led to the incorporation of
ValueLabs in 1997! More importantly, the ‘unselfish gene’ had found a firm footing in our
DNA.

Today, value labs have built a business that is driven and guided by the core values
of Perfection, Love, Unselfishness and (character) Strength. Our ability to do the right thing
for our clients, irrespective of the revenue impact on us, is unmatched and something we are
very proud of.

We can go from identifying client pain points to creating a solution roadmap, then to building
out the solution, and finally to managing end-to-end operations. Oftentimes, we end up
bootstrapping the initial effort till our client realizes value. We are powered by innovation
and backed by the One-Company approach.

Companies worldwide are struggling to engage in the traditional ‘vendor’

relationship because the journey is becoming more collaborative and iterative, requiring skin-
in-the-game from both parties. The sheer magnitude of change in the technology landscape
makes it difficult for companies to respond meaningfully and quickly. The only way to stay
relevant is to rapidly innovate, using a wide variety of technologies in areas previously
unexplored. All of this within an agile environment. We believe that this is a unique category
for us to play in. With the One Company model of execution, we are able to deliver
outstanding value to our clients through a selfless mindset and a frictionless workplace. One
Company implies that we are “one” with our clients, taking up their business problems as
ours and solving them by investing in understanding their business and by leveraging 20
years of software delivery expertise. On top of this, our investments in people, partnerships,
accelerators and R&D labs over the last few years are helping our client realize the promise
of Digital.

Companies need a trusted partner that can own the problem, experiment, invest and
deliver technology solutions. And deliver them faster than ever. This is where we exist.

We are inspired by potential. Compensation will be perceived by employees as fair if based

on systematic components. Various compensation systems have developed to determine the
value of positions. These systems utilize many similar components including job
descriptions, salary ranges/structures, and written procedures.

Compensation systems are designed keeping in minds the strategic goals and business
objectives. Compensation system is designed on the basis of certain factors after analyzing
the job work and responsibilities.

SERVICES PROVIDED BY ValueLabs:

1. Banking and Financial Insurance

2. Insurance
 3. Health care and Life Sciences

4. Telecom

5. Retail and Consumer Goods.

6. Media and Entertainment

LEADERSHIP:

Arjun Rao (Founder & CEO)

Arjun Rao is a first-generation entrepreneur who has built

a unique company with an entirely different
approach to business.

ValueLabs was founded in 1997 with the aim of building

trust-based, long-standing partnerships with both clients and employees. Since then, the
focus has been on building and sustaining relationships, growing with purpose, having a
long-term outlook, and fulfilling its social responsibilities.

As the Founder and CEO of ValueLabs, Arjun provides key strategic direction to the
company and ensures - by example - that the organization never loses sight of its culture and
values. He is a dynamic leader who is self-reliant, while being flexible in his thoughts. Those
who work closely with Arjun experience the full import of his belief that one can learn and
achieve anything, when driven by ‘character energy’ and a ‘sense of perfection'.

Arjun holds an MS Degree from Cornell University, US, where he held the A.D. White
Fellowship. He has a Bachelor’s Degree from the Indian Institute of Technology (IIT),
Madras, where he graduated at the top of his class.

Ask him how ‘Doing the right thing’ sits at the centre of everything else at ValueLabs.

SOCIAL RESPONSIBILITIES:

Making a difference in the world

At the heart of our organization lies the realization of our responsibility towards the society
that has given us our identity. We believe that it is our duty to contribute to the betterment of
our society. This belief has lead to the establishment of the ValueLabs Foundation (VLF). All
our employees are encouraged to participate in various community service initiatives to make
a difference that matters.

AWARDS AND RECOGNITION:

Asia’s Best Employer Brand

Our top two goals for this year are to meet and hopefully surpass the expectations of our two
key stakeholder- Employees and Clients – and to this end we have been tracking customer
and employee satisfaction and have made significant improvements through organization
structure transformations and HR policies. We are very aware about the need of diversity,
inclusivity and employee empowerment to build a great work place and are proud to have
received prestigious external validation in the form of acknowledgement at Asia’s Best
Employer Brand Awards organized by World HRD Congress. We received many awards
validating our initiatives and putting us in the company of organizations like Dell, Workday,
IBM, and SAP among others.

Executive compensation packages in Value labs typically comprise the following

components.

1. Gross salary: To compare with all the local organisations ValueLabs pays relatively so
high to their lower level employees. It is done to grab the potential employees from the
market. The most important thing about the payment of salary of ValueLabs is that it
clears all the salary payments within time which is quite absent in other companies. The
salary of the employee review based on the performance which is key motivating factor
 to perform well. Another thing that is to mention that ValueLabs conducts performance
evolution twice in a year according to that they are to review the salary.
2. Annual incentives: There is a provision of annual incentives of ValueLabs which is
based on the performance of an employee. It works as a motivating factor for the
employees to perform well. Therefore each employee tries their best to make it happen
so that their salary having well shaped structure.
3. Bonus: It refers to rewards for successful performance and maybe related to the results
by individual, team or the organization. It can be simply be said as profit sharing. Bonus
is an extra payment payable to workmen at a minimum of 8.33 percent as minimum.
Maximum @ 20% of Basic and dearness allowance.
4. Travel Allowance: The organisation also provides travel allowance to their employees.
If any employee travels any place regarding company’s prospect, they will get the
money or remuneration that is cost by them but the cost that is spent is verified by the
HR personnel and after that they got the requisition of the money.

5. Disability Leave: If any employee faces unusual accident or physical challenge, then
they are provided leave granted by the company which is called disability leave but for
this leave the salary of them will not be deduced which means these are paid leave.

6. Maternity Leave: Maternity leave may be granted by the competent authority to an

employee for a maximum three months period at a time. This flexibility is provided
considering the labour law made by the government. This is also a paid leave.

7. Allowances: Elements of pay in the form of a separate sum of money for such aspects of
employment as overtime.

The allowances like--

HRA- 40%,

Conveyance allowance -40%

Educational allowance- 200

Medical allowance- basic/12(50% basic is calculated from gross.)

Employee benefits: These benefits are also known as indirect pay. These include pensions,
sick pay, insurance cover and company cars. E.S.I – 4.75%, P.F – 12% will be paid for the
sake of employee benefits.

Non-financial reward: It includes any reward that focuses on the need people have in
varying degrees for achievement, recognition, responsibility and personal growth.
Employment Security, overtime pay, leave pay, pays for holidays, etc.

Medical and healthcare: Life insurance, Medical care, Sick leaves etc will be provided.

The pay sheet contains:

EARNINGS:

Basic, HRA, CA, medical, education, special allowances, ADHOC, arrears and gross.

DEDUCTIONS;

P.F, E.S.I, PT, TDS, LIC, Med claim and other deductions.

The CTC (Cost to Company) of contains

 Gross

 P.F

 E.S.I

 BONUS

 L.T.A: Based on designation

3.2 INDUSTRY PROFILE:

The software industry includes businesses for development, maintenance and publication of
software that are using different business models, mainly either "license/maintenance based"
(on-premises) or "Cloud based" (such as SAAS, PAAS, IAAS, MAAS, AAAS, etc.). The
industry also includes software services, such as training, documentation, and consulting and
data recovery.

The word "software" was coined as a prank as early as 1953, but did not appear in print until
the 1960s. Before this time, computers were programmed either by customers, or the few
commercial computer vendors of the time, such as UNIVAC and IBM. The first company
founded to provide software products and services was Computer Usage Company in 1955.

History:

The software industry expanded in the early 1960s, almost immediately after computers were
first sold in mass-produced quantities. Universities, government, and business customers
created a demand for software. Many of these programs were written in-house by full-time
staff programmers. Some were distributed freely between users of a particular machine for no
charge. Others were done on a commercial basis, and other firms such as Computer Sciences
Corporation (founded in 1959) started to grow. Other influential or typical software
companies begun in the early 1960s included Advanced Computer Techniques, Automatic
Data Processing, Applied Data Research, and Informatics General. The computer/hardware
makers started bundling operating systems, systems software and programming
environments with their machines.

When Digital Equipment Corporation (DEC) brought a relatively low-priced microcomputer

to market, it brought computing within the reach of many more companies and universities
worldwide, and it spawned great innovation in terms of new, powerful programming
languages and methodologies. New software was built for microcomputers, so other
manufacturers including IBM, followed DEC's example quickly, resulting in the IBM AS/400
amongst others.

The industry expanded greatly with the rise of the personal computer ("PC") in the mid-
1970s, which brought desktop computing to the office worker for the first time. In the
following years, it also created a growing market for games, applications, and utilities. DOS,
Microsoft's first operating system product, was the dominant operating system at the time.

In the early years of the 21st century, another successful business model has arisen for hosted
software, called software-as-a-service, or SAAS; this was at least the third time [citation
needed] this model had been attempted. From the point of view of producers of some
proprietary software, SAAS reduces the concerns about unauthorized copying, since it can
only be accessed through the Web, and by definition no client software is loaded onto the end
user's PC.

SIZE OF INDUSTRY:

According to industry analyst Gartner, the size of the worldwide software industry in 2013
was US$407.3 billion, an increase of 4.8% over 2012. As in past years, the largest four
software vendors were Microsoft, Oracle Corporation, IBM, and SAP respectively.

INDIAN SOFTWARE INDUSTRY:

Indian software industry has been witnessing a phenomenal growth for the last three decades.
The software industry is expected to play a vital role in the growth of Indian Economy.
However the ability of the software industry to sustain its growth will depend upon its ability
to integrate needs of its international customers and aspirations of Indian software
professionals. Software professionals from India aspire for and are capable of being global
citizens. Based on in-depth analysis, this Research explores the human issues being
experienced by Indian software organizations. It also suggests to overcome some of the
human challenges to make this field the safest field. But at the same time, this field is having
much more problems which make the IT as an unstable one. This is because of lack of
planning and not able to fulfill the expectations and requirements of Human Resource
Management.

INDIA’S INFORMATION TECHNOLOGY SCENARIO

Gangopadhyay (2000), in his study of Indian IT industry, observed: “1975, India is yet to
wake up from the realms of red- tapism in the information technology sector, saw computers
with uncanny suspicion and very few were aware of its capabilities. Yet, an electrical
engineer by training foresees the tremendous potential of IT in India and the man F.C. Kohli
declares, “Many years ago, there was an industrial revolution. We missed it due to factors
over which we had no control. Today, there is a new revolution – a revolution in information
technology, which requires neither mechanical bias nor mechanical temperament. Primarily,
it requires the capability to think clearly. This we had in abundance. We have an opportunity
even to assume leadership. If we miss this opportunity, those who will follow us will not
forgive us for our tardiness and negligence.

Twenty five years passed since Faquir Chand Kohli predicted the emergence of India as an IT
major. He is still at helm, shaping the future, laying foundations and directing new IT
practitioners towards a better future. Kohli is the deputy chairman of the Country’s biggest
and most profitable software services company, Tata Consultancy Services (TCS)”.Business
Today (2002), in its “Those who made in Nation Turn Around”, quoted Kohli as “father of
Indian software industry” and wrote: “As an electrical engineer, F.C.Kohli was an unlikely
candidate to be India’s software revolutionary. But, as it turned out, J.R.D. Tata couldn’t have
picked a better man to lead the Tata group’s foray into the then exotic software business.
When Kohli took over the reins at Tata Consultancy Services in 1969, the electrical engineer
from the Massachusetts Institute of Technology only had experience in managing power
plants. Worse, computer technology was not really a priority for the government. Kohli
battled in, managing to get a modest share of the software boom that had begun in the US in
the early 60s. The arrival of Rajiv Gandhi and his technology-friendly team opened up
opportunities for TCS, and a horde of other software wannabes.

Source: NASSCOM (National Association of Software and Service Companies) Gandhi, ‘the
father of the nation’ liberated millions of Indians from the Britishers way back in 1947 and
Kohli, ‘ the father of Indian software industry’ liberated millions of Indians’ minds and their
intellectual capabilities in the recent decades and brought India to the fore front of
development at the world stage. Kohli also earned high respect for them and was
instrumental in establishing India as a brand and choicest destination for the software
technology. The seeds which Kohli sown on the intellectually fertile Indian soils thirty five
years back , have been continuously giving rich crops year after year in the form of high
quality and large volumes of software, and supplying to the entire world.
The software industry in India has witnessed tremendous growth in the past decade and is
poised to become the industry of the new millennium for the country. Although the
performance of the major software companies in India has been excellent, there are
significant initiatives to be taken by these companies if they are to exploit the full potential of
this boom. With manpower or intellectual capital being the main driver of this industry, it is
imperative that the companies take proactive measures to harness, retain, train and deploy
these human resources in the most productive manner possible. Currently, the important of
human resource utilization has been sidelined because of the high revenue/margins involved.
With margins running high, the hidden costs of wasted manpower capacity are not apparent
on the bottom lines of the companies.

But as the industry structure changes, completion from other low cost third-world nations
intensifies and growth stabilizes, it will be essential for Indian companies to treat the
manpower utilization problem with top priority streamline their existing manpower planning
procedures to remain competitive and maintain their profitability.

Source: Business Today (2002), in its article “6 Those Who Made a Nation Turnaround”

GROWTH OF INDIA'S IT INDUSTRY:

India's IT industry has recorded phenomenal growth over the last decade. During the period
from 1992-2001, the compounded annual growth rate of the Indian IT services industry has
been over 50%. The software sector in India has grown at almost double the rate of the US
software sector. The statistics of the India's IT industry substantiates the huge momentum
acquired by the IT sector in the recent past. During the financial year 2000-2001, the
software industry in India accounted for $8.26 billion. The corresponding figure was $100
million 10 years back. The year 2008 was marked by unprecedented global economic crisis.
The Global economy slipped into severe recession in 2008 inflicted by a massive financial
crisis and acute loss of confidence. This has cast its shadow on the Indian economy, which is
estimated to grow at 6.7 per cent in 2008-09 as compared to 9.0 per cent in the fiscal year
2007-08.
In spite of this uncertain global outlook, the Indian Information Technology Business Process
Outsourcing (IT-BPO) industry was able to achieve sustainable growth in the fiscal year
2008-09. The revenue aggregate of IT-BPO industry is expected to grow by over 12 per cent
and reach US $ 71.7 billion in 2008-09 as compared to US $ 64 billion in 2007-08. Industry
performance was marked by sustained double-digit revenue growth, steady expansion into
newer service lines and increased geographic penetration. The Indian software and services
exports including ITES-BPO exports is estimated at US $ 47 billion in 2008- 09, as
compared to US $ 40.4 billion in 2007-08, an increase of 16.3 per cent. The IT services
exports is estimated to be US $ 26.9 billion in 2008- 09 as compared to US $ 23.1 billion in
2007-08, showing a growth of 16.5 per cent in 2008-09. ITES-BPO exports is estimated to
grow from US $ 10.9 billion in 2007-08 to

US $ 12.8 billion in 2008-09, a year-on-year (Y-o-Y) growth of over 17.4 per cent. It has
created immense opportunities for employment and has contributed to the growth of National
Income.

It has also spawned the mushrooming of several ancillary industries such as transportation,
real estate, catering and has created a rising class of young consumers with high disposable
incomes, triggered a rise in direct-tax collections and propelled an increase in consumer
spending. The total IT Software and Services employment is expected to reach 2.23 million
in 2008-09 (excluding employment in Hardware sector), as against 2.01 million in 2007-08, a
growth of 10.9 per cent Y-o-Y. This represents a net addition of 226,000 professionals to the
industry employee base in 2008-09. The indirect employment attributed to the sector is
estimated to be about 8.0 million.

The industry has also set a precedent for talent practices in India.

It has created career opportunities for the youth, provided global exposure and offered
extensive training and development. Further more, the industry has been a frontrunner in
diversity at the workplace (over 30 per cent of employees are women; over 60 per cent of
industry players employ differently abled people).

The IT- industry’s contribution to the national GDP is estimated to increase from 5.5 per cent
in 2007-08 to 5.8 per cent in 2008-09.
The growth of India's IT sector has brought about many other positive changes in the Indian
economy.

The purchasing power of a large section of Indian population has increased dramatically.
This has resulted in an increase in the average standard of living of the majority of population
of the country. The increase in purchasing power of the common people has propelled the
growth rate of the other sectors of the economy as well.

HUMAN RESOURCES IN THE SOFTWARE INDUSTRY:

The following statements characterize the Human Resources in the Software Industry:

The Human Resource function plays a key and very important role, as it is a ‘People Centred’
organization.

Employees are’ knowledge workers’. Majority of them are qualified professionals and then
were toppers in colleges and are very ambitious and so, they seek a fast track career.

They expect challenges from the start, highly creative, highly sensitive, motivation is the key
for performance.

Prefer informal environment, openness /trust.

About 25 to 30% proceed to United States at the earliest; hence all actions aimed towards
this move. All this is driven by peer pressure, life style, savings and improvement in their
profile.

Basically performance driven organization.

65% software’s used in India are Pirated worth $2 billion:

India is in the forefront when it comes to piracy – According to the report released by
Business Software Alliance along with IDC, Indians used 65% pirated software in 2009
( Piracy % = Unlicensed Software Units divided by Total Software Units Installed ).
However, this rate is 3% lower than what it was as compared to previous year. The annual
commercial value of unlicensed software in India stands at a whopping$2.03 billion.
Comparatively, China has piracy rate of whooping 79%, which accounts for a dollar value of
more than 7.5 billion.

Some of the Key findings of the reports are:

Global PC software piracy dropped in 54 of the 111 countries studied; however the
worldwide piracy rate rose from 41 percent in 2008 to 43 percent in 2009, due to exponential
growth in PC software deployments in emerging economies.

The United States, Japan, and Luxembourg continue to hold the lowest piracy rates of
economies surveyed (20, 21, and 21 percent, respectively).

In Asia Pacific, economies with the highest piracy rates include Sri Lanka, Indonesia,
Vietnam and Pakistan.

China’s piracy rate dropped 12 percentage points during the six years from 2003 to 2008, but
slowed last year. This was, to some degree, a result of growth of activity in the consumer
sector, but there was also less focus on anti-piracy enforcement by the government and by
some vendors during the recession.

Factors driving piracy rates up included rapid growth of the consumer PC market (India,
China and Brazil), and greater activity in the installed base of older computers where
unlicensed software is more prevalent, and the increasing sophistication of software pirates
and cyber criminals.

ISSUES IN THE SOFTWARE INDUSTRY:

The Indian software industry is currently in a situation where most companies have more
projects than they can handle i.e. they do not have the necessary human resources to satisfy
the potential demand for their services. At the same time, in most companies it is observed
that the capacity utilization of the manpower is not satisfactory high i.e. there is significant
bench-time for a resource. This paradox has persisted because of lopsided manpower
planning, hiring and staffing practices. Seen in the frame work of the newsboy problem, the
cost of overstocking of human resources is not high enough compared to the cost of under
stocking, which leads to the phenomenon of companies recruiting people for a project much
before they have contracted that project. This is further compounded by the severe attrition
problem that piagues the Indian software industry – it is not possible to predict the attrition
levels and at the same time there is a shortage of high-skilled professionals in the competitive
labour market, so this causes a problem with the both the efficiency (high bench-time) as
well as the effectiveness (low acceptance to offer ratios) of recruiting and staffing activities.
Moreover if the software industry is to be successful in the longer term, it is imperative that
companies move up to IT value chain from activities such as maintenance, offshore
development and sub-contracting to systems integration, process improvement and strategic
IT consulting. In order to accomplish this, they need access to a manpower base, which is
skilled not only in technology but also has thorough knowledge of business and management
processes and practices. This manpower base is still underdeveloped in India and unless there
are initiatives taken by all the major players, including the Government, the industry will fail
to exploit the growth potential.

Within the HR planning function, there is the issue of classifying resources in order to enable
efficient project staffing.

Due to the explosion of technologies in the information space, it has become increasingly
difficult for companies to translate project requirements into manpower requirements and
consequently skill requirements and at the same time organize complementary skills into
sets, which can then be treated as resource competencies. For example, in one of the big
software companies, which was studied there were more than 100 skills that were listed as
the competencies of the resources – to group these skills in a manner that would enable
clustering of resources is a challenging task. On the other hand neither can all resources be
treated as homogenous, nor is it possible to have an efficient staffing policy with an
ungrouped list of skills.

Even if it possible to identify skill sets, it is even more difficult to identify costs of
transferring a resource with a certain skill competency – these costs would not only include
the obvious costs of training but also the ease the transition of the resource. For example,
although a resource experienced in COBOL and a resource experienced in C++ can both
these adequate training to learn a new skill viz. Java, the learning curve for both these
resources will be very different – it will be much easier for the C++ - skilled resource to
make the transition than the COBOL – resource.

HUMAN ISSUES AND CHALLENGES IN INDIAN SOFTWARE

INDUSTRY:

India, the world’s largest democracy and home to nearly one billion people, is quietly but
quickly emerging as a leader in the field of software engineering and development. The
Indian software industry is having a phenomenal compounded growth of about 60 percent
per annum. Indian Prime Minister’s National Task Force on Information Technology and
Software Development has set a target of US $50 billion of annual software exports by the
year 2008. During the year 2001-02, the software industry in India would be close to
Rs.60,000 crore or US $14 billion. Due to increased Government spending towards IT in the
domestic market, the domestic software market has fetched record revenue of almost
Rs.8,200 crore in 1999-2000 (NASSCOM, 1999). Government of India has directed that 1-3
percent of the budget of every government department would be towards IT hardware and
software.

In addition, the government has also withdrawn import duty on software. Both these policy
initiatives from the government has further brought encouraging signals to the domestic
software market.

Microsoft’s Chairman Bill Gates in his maiden visit to India stated that India would emerge
as a software super power in the coming years. Based on the health of Indian software
Industry, Bill Clinton, President of USA in his visit to India had predicted that India would
have tremendous growth in the next two decade.

Thus everybody is projecting and anticipating that Indian software industry will play a very
vital role in the growth of Indian Economy. However, the projected growth of Indian
software industry will largely depend upon the industry’s ability to manage human issues and
challenges being experienced by it. The cost of Indian software professionals has been
increasing by 25-30 percent per annum. As a consequence from China, Philippines, Russia
and Mexico are increasingly emerging as competitors to Indian software industry.

Presently, Indian software organizations have been working on the lower end of the value
chain such as providing business solution, programming and body shopping. For retaining its
competitive edge, Indian software industry has been striving to move up the value chain.
However, moving up the value chain implies working on technology and product
development. In turn, these initiatives require availability of experienced and more
competent software professionals for sufficiently long period of time. Software professionals
with 3 years or more experience are in short supply in USA, Europe and literally every part
of the world. Indian software professionals having proved their competence and capabilities
are increasingly in demand in USA and other developed countries. As a consequence, large
number of Indian software professionals has been moving to USA and Europe. US
Government is seriously contemplating to increase the visa-quota for Indian software
professionals.

Projects on the lower end of value chain require many time working on legacy systems and
technologies of the earlier era. Indian software professionals aspire to work on the latest
technology and platforms. It is leading to a situation whereby software organizations
exclusively working on lower levels of chain increasingly find it difficult to attract and retain
competent software professionals.

Thus the growth of Indian software organization in the next decade will substantially depend
upon the ability of the industry to resolve conflicts emerging from the requirements of the
market and the aspirations of software professionals who can make the growth a reality. It is
in this context that this study explores and strives to explain human issues and challenges
taken by Indian software organizations to resolve these challenges. Finally, this study also
suggests some measures to overcome some of the human problems being experienced by the
industry.

SOFTWARE PROFESSIONALS:
Based on the survey conducted with software professionals and the way they were described
by senior managers, project managers and HR professionals in software organizations, other
employees of the different I.T. workers and some common characteristics of Indian software
professions have emerged and these characteristics are:

Some Software professionals invest substantial time, efforts and resources to acquire relevant
and valid knowledge. Over time the knowledge acquired by them becomes their self-concept

 Software professionals look forward to use their knowledge and acquire new
knowledge on a continuous basis. This is significant for software professions to
experience a sense of growth and nurture their concept of growth.
 Software Professionals tend to be highly analytical and hence they expect rationale
for every activity. They expect that they should be involved in defining and planning
every organizational change affecting them.
 Software professionals tend to be high achievers and hence they expect periodical and
tangible feedback and recognition for performance. Since reward system is perceived,
as a part of the feedback system, linking performance with reward and experiencing
equity in reward becomes very important issues with them.
 Software professionals want to work on new technologies, new platforms and with
new organizations to improve their learning and curriculum vitae.
 Software professionals are more committed to their profession than the organization
they work for.
 Due to existing demand on supply situation, software professionals are able to move
from their existing organizations to new organizations in India or abroad rather fast.
 Software professionals value autonomy, professionalism and innovativeness.

MANAGING MULTIPLE EXPECTATIONS

Each one of us can have and do have multiple expectations from the job and career that we
choose. However, in case of software professionals, the expectations from the job seem to be
too many and many times expectations are in conflict with each other. Chief Executive of a
small software company employing about 200 employees and owned by NRI said that
software professionals when interviewed for job invariably say that they want to learn and be
technical leaders in their respective chosen fields.

However, after joining the organization, they tend to use yard sticks to measure their success
in their chosen field. These yardsticks tend to be tangible and invariably are derived from the
expectations by software professionals from their family members and their peers. In
addition, organizations have their own expectations from software professionals. These
multiple expectation creates pulls and pressures on software professionals.

Software professionals hold certain images about themselves as a professional. As a

consequence, they expect to nurture the image of themselves as Professionals by learning on
a continuous basis and becoming technical leaders in their chosen field.

Organisations create very different kind of pulls based on the requirements of markets and
customers. They want to deliver what customers require in the defined time and budget. The
customers from developed countries sub-contract many of the activities to Indian software
organizations because software professionals in those countries want to work only on
projects involving latest technologies and software. This means that in many projects, Indian
software professional have to work on technologies and languages of yesteryear such as
COBOL.

Due to Internet and e-mail facilities, Indian software professionals are in touch with their
peers in India and abroad on a continuous basis. They are aware of the kind of projects and
technologies their peers in India as well as abroad are working with.

This awareness creates pressures on software professionals to aspire to work on similar

platforms and technologies. In the informal settings, peers tend to ask each other about pay,
perks and about their foreign visits. All this awareness creates expectations and pressures to
expect all these in one’s own organization. Software professionals further increase pressure
on themselves and their organization by selectively picking up what are best pay, perks and
other facilities in different software organizations. Interestingly, the bench marking
organizations do not remain same for long and software professionals keep suggesting new
organizations for benchmarking of their top management and HR professionals.
THE TOP TEN SOFTWARE COMPANIES IN INDIA:
Today the software industry has become the backbone of companies around the world. With
technology advancing in leaps and bounds, there are no stopping IT professionals from
around the world to bridge the gap between huge untapped markets and its customers, as well
as creating an opportunity for innovation. The companies that dominate the software industry
are those which look out for these opportunities and provide instant solutions. The Indian
software industry has arrived, and the companies that are dominating this industry, based on
their turnovers, are:

Period : 2004-2011 Rank Names Sales(in Rs mill)

1 TCS LIMITED 97,272

2 WIPRO LIMITED 82,330

3 INFOSYS TECHNOLOGIES LIMITED 71,297

4 SATYAM COMPUTER SERVICES LIMITED 35,209

5 I-FLEX SOLUTIONS LIMITED 11,386

6 TATA INFOTECH LIMITED 9,743

7 CMC LIMITED 8,074

8 MPHASIS BFL LIMITED 7,657

9 MASTEK LIMITED 5,670

10 NIIT LIMITED 3,984

Value Labs has been ranked 388 in 2011 with $26.11 million
 CHAPTER-IV
DATA ANALYSIS AND INTERPRETATION

CHAPTER-4

DATA ANALYSIS AND INTERPRETATION

4.1 DATA ANALYSIS:

The purpose of every research is to conduct a survey in order to validate the assumptions of
the study on the basis of the data collected. A respondent survey is conducted in the form of
structured questionnaire, which becomes the data for the study. This data is in raw form
unless it is analyzed and interpreted to present the main findings.

This chapter deals with statistical analysis and interpretation of the data collected through
research with the aid of structured questionnaire. Analysis refers to studying the data
collected in terms of statistical numbers and interpretation refers to understanding the
implication of the statistical finding.

I had collected data from the Employees of ValueLabs to study their compensation
management practices. The results are represented with Tables and chart.

1. GENDER?
TABLE: 1

CHOICES RESPONSES PERCENTAGE (%)

Female 34 68%
Male 16 32%

CHART: 1

32.00%

FEMALE
MALE

INTERPRETATION:

 68% of employees at ValueLabs are female.

 32% of employees at ValueLabs are Male.

2. AGE?

TABLE: 2
CHOICES RESPONSES PERCENTAGE (%)
Under 20 1 2%
20-29 47 94%
30-39 2 4%
Over 40 0 0%

CHART: 2

4.00% 2.00%
UNDER 20
20-29
30-39
OVER 40

94.00%

INTERPRETATION:

 94% of Employees in ValueLabs are between the age of 20-29.

 2% of Employees in ValueLabs are under 20.
 4% of Employees in ValueLabs are between the age of 30-39.

3. How are you employed?

TABLE: 3
CHOICES RESPONSES PERCENTAGE (%)
Part time 7 14%
Full time 25 50%
Contractor 18 36%

CHART: 3

14.00%

36.00% Part time

Full time
contractor

50.00%

INTERPRETATION:

 36% of employees at ValueLabs are hired as contractors.

 50% of employees at ValueLabs are employed for Full time.
 14% of employees at ValueLabs are employed for part time.

4. Which shift do you work?

TABLE: 4
 CHOICES RESPONSES PERCENTAGE (%)
Day shift 47 94%
Night shift 3 6%

CHART: 4

6.00%

CHOICES
Day shift
Night shift

94.00%

INTERPRETATION:

 94% of employees work at day shift.

 6% of employees work at night shift.

5. Since how many years have you been working with ValueLabs?
TABLE: 5

CHOICES RESPONSES PERCENTAGE (%)

0-5 Years 32 64%
5-10 Years 18 36%
10-15 Years 0 0%
More than 15 years 0 0%

CHART: 5

36.00% CHOICES
0-5 Years
5-10 Years
10-15 Years
64.00% More than 15 years

INTERPRETATION:

 64% of employees work at ValueLabs between 0-5 years.

 36% of employees work at ValueLabs between 5-10 years.

6. Do you feel that the compensation is being developed from the employees and
employers point of view?

TABLE: 6

CHOICES RESPONSES PERCENTAGE (%)

Strongly agree 31 61.5%

Agree 15 30.8%
Disagree 4 7.7%

CHART: 6

INTER
PRETATION:

 61.5% of employees agree that the compensation is being developed from the
employees and employers point of view.
 30.8% of employees strongly agree that the compensation is being developed from the
employees and employers point of view.
 7.7% of employees disagree that the compensation is being developed from the
employees and employers point of view.
 From the above statistics, most of the people feel that the compensation is being
developed from the employee’s point of view by 30.8 % and 61.5% respondents had
agree about it and 7.7% employees disagreed upon this matter.

7. In case of job rotation does the rotation employee get any hike in the Salary?

TABLE: 7
CHOICES RESPONSES PERCENTAGE(%)
Yes 26 53.8%
No 8 15.4%
May be 16 30.8%

CHART: 7

INTERPRETATION:

 30.8% of employee get hike in the Salary.

 53.8% of employees aren’t sure about getting hike in the salary in case of job rotation.
 15.4% of employees doesn’t get hike in the Salary.
 The above pie chart shows that 30.8 % of the employees get hike in the salary during
job rotation and 15.4% will not get any hike.

8. Does your organization reward the people who perform their job well?

TABLE: 8

CHOICES RESPONSES PERCENTAGE(%)

Yes 42 84.6 %
No 8 15.4%
Can’t say 0 0
CHART: 8

INTERPRETATION:

 84.6% of the employees responded that ValueLabs rewards them according to their
performance
 15.4% of the employees are not sure about it.
 84.6 % of the employees of ValueLabs responded that their organization rewards
them according to their performance and 15.4% employees are uncertain about it.

9. What basis increases salary?

TABLE: 9

CHOICES RESPONSES PERCENTAGE (%)

Experience 0 0
Performance 24 46.2%
Both 26 53.8%
CHART: 9

INTERPRETATION:

 46.2% of employees responded that there is a hike in salary based on performance.

 53.8% of employees responded that there is a hike in salary based on both
performance and experience.

10. Does your organization consider advances (like leaves) in case of

emergence?

TABLE: 10

CHOICES RESPONSES PERCENTAGE (%)

Yes 42 84.6%
No 0 0
May/may not be 8 15.4%

CHART: 10
INTERPRETATION:

 84.6% of employees responded that the organisation considers advances (like

leaves) in case of emergence.
 15.4% of respondents are uncertain upon this matter.
 According to above pie diagram, 84.6% of employees say yes the organisation
considers advances (like leaves) in case of emergence and 15.4% of respondents are
not sure about it.

11.Whether your organization is providing equal pay for work of equal value?

TABLE: 11

CHOICES RESPONSES PERCENTAGE(%)

Yes 39 76.9%
No 4 7.7%
May be 7 15.4%
CHART: 11

INTERPRETATION:

 76.9% of employees say that ValueLabs is providing equal pay for work of equal
value.
 15.4% of employees are not sure upon this matter and 7.7% of employees responded
that they are not provided with equal pay for work of equal value.

12. Whether your organization is providing any of the following benefits?

TABLE: 12

CHOICES RESPONSES PERCENTAGE (%)

Medical insurance 28 53.8 %
Vacation leaves 6 12.8 %
Rent free accommodation 2 5.2%
Others 14 28.2%

CHART: 12
INTERPRETATION:

 According to the above diagram 53.8% of employees had insured under Medical
Insurance.
 12.8% of employees on vacation leave, Rent Free Accommodation 5.1% of employees
and others 28.2%.

13. Do you agree that compensation may help to reduce the turnover?

TABLE: 13
CHOICES RESPONSES PERCENTAGE (%)
Yes 22 23.1%
No 28 53.8%
May be 0 0

CHART: 13
INTERPRETATION:

 According to above pie diagram, 53.8% of employees don’t agree with the statement that
compensation may reduce the organisation turnover.
 23.1% of employees agree with the statement
 23.1% of employees are not aware with that.

14. Does the organization provide any below Benefits?

TABLE: 14

CHOICES RESPONSES PERCENTAGE(%)

Flexible timings 42 84.6%
Medical reimbursements 4 7.7%
Overtime policy 4 7.7%
None 0 0
CHART: 14

INTERPRETATION:

 According to the above pie diagram, 84.6% of employees have flexible timings.
 7.7 % of employees have Medical Reimbursements.
 7.7% of employees have Over Time policy and no other are having no cash Benefits.
15. Are you satisfied with Annual benefits given by the organization?

TABLE: 15

CHOICES RESPONSES PERCENTAGE(%)

Yes 31 61.5 %
No 0 0
May be 15 30.8%
May not be 4 7.7%

CHART: 15
INTERPRETATION:

 According to the above pie diagram 61.5% of employees are satisfied with Annual
benefits given by the organization.
 30.8% of employees are not sure about it.
 7.7% of employees responded may not be so that they are uncertain upon this matter.

16. Whether your organization is providing any perk/fringe benefits to

employees?

TABLE: 16

CHOICES RESPONSES PERCENTAGE(%)

Yes 23 46.2 %
No 11 23.1%
Can’t say 16 30.8%

CHART: 16
INTERPRETATION:

 From the above pie diagram, 46.2% agreed as the organisation is providing fringe
benefits to the employees.
 23.1% responded as the organisation is not providing benefits and 30.8% of employees
remained silent.

17. To what extend do you prefer for the compensation management in

“VALUE LABS”?

TABLE: 17

CHOICES RESPONSES PERCENTAGE(%)

Satisfied 31 61.5 %
Average 0 0
Not satisfied 15 30.8%
Can’t say 4 7.7%

CHART: 17
INTERPRETATION:

 53.8% of employees are satisfied with the compensation management in ValueLabs.

 38.5% of employees are partially satisfied with the compensation management in
ValeLabs and 7.7% of people are uncertain upon this matter.

18. Are you satisfied with HRA, Bonus & other HR compensatory practices
implemented in your organization?

TABLE: 18

CHOICES RESPONSES PERCENTAGE(%)

Agree 44 88.2 %
Strongly disagree 0 0
Strongly agree 3 5.9 %
Disagree 3 5.9 %

CHART: 18
INTERPRETATION:

 88.2 % of employees agreed that they are satisfied with HRA, Bonus & other HR
compensatory practices implemented in ValueLabs.
 5.9% of employees strongly agreed that they are satisfied.
 5.9% of employees disagreed upon this.

19. How do you feel about the benefits provided by the organization?

TABLE: 19

CHOICES RESPONSES PERCENTAGE(%)

Highly satisfied 4 7.7 %
Satisfied 46 92.3%
Dissatisfied 0 0
Highly dissatisfied 0 0
CHART:19

INTERPRETATION:

 92.3% of employees feel satisfied about the benefits provided by ValueLabs.

 7.7% of employees feel highly satisfied about the benefits provided by ValueLabs.
 None of them feel dissatisfied about the benefits provided.

20. What would be the appraisal period date for conducting performance
appraisal or salary reviews?

TABLE: 20

CHOICES RESPONSES PERCENTAGE(%)

Annually 31 61.5%
Calendar year 8 15.4%
Half yearly 11 23.1%
Completion of one year 0 0
CHART:20

INTERPRETATION:

 From the above pie diagram, 61.5% employees responded as their performance appraisal
period is annual.
 Followed by half yearly by 23.1% of employees and then 15.4% responded as 18
months.
 This indicates performance appraisal period is mostly annual.

CHAPTER-V
 SUMMARY OF FINDINGS & CONCLUSION

CHAPTER: 5

SUMMARY OF FINDINGS AND CONCLUSION

5.1 FINDINGS:

 Most of the employees at ValueLabs are females.

 The employees working at ValueLabs are between the ages 20-29.

 Most of the employees working in the organization are between 0-5 years.

 94% of employees work at day shift, which says most of the employees prefer day shifts.

 Compensation is being developed from the employee’s point of view as 61.5%

respondents had agreed about it and only 7.7% disagreed upon this.
 The employees of ValueLabs get hike in the salary during the job rotation
 The organization rewards them according to their performance.
 There is a hike in the salary based on both performance and experience.
 The organisation considers advances in case of emergence.
 ValueLabs is providing equal pay for work of equal value.
 The study on compensation in ValueLabs after scrutinizing the employees of ValueLabs it
is found that majority of the employees opinion is that organization culture is the vital
element that provides with compensation.
 Employees had insured under Medical Insurance, vacation leave and others.
 The compensation doesn’t reduce the organisation turnover.
 The employees have flexible timings, Medical Reimbursements, over time policy and no
other are having no cash Benefits.

 Employees are highly satisfied with Annual benefits given by the organization.
 It is also found that the jobs they are doing are challenging with less stress at the work
place. They are highly satisfied with the level of income which they are earning.
 It is also found that working hours are feasible and the benefits and allowances that are
provided for them are satisfactory.
 Most of the employees are satisfied with the compensation management in ValueLabs.
 Mostly the performance appraisal period is annual.

5.2 SUGGESTIONS:
 Recreational events like conducting of games, cultural activities may be planned to
promote healthy relations among the workers of different departments this will bring
out the hidden talents in the workmen and it also adds up to the unity of the
employees.
 The company should examine the various credit policies. And the company has to
choose best among for the profitable results. .
 Encouragement of workers participation in management, the appraisal technique and
the leaves taking system, and salary administration are the key factors.
 When asked what contributes to compensation, majority of the respondents opined
that job security, the job benefits provided by the organization , good communication
network, better working hours, utilization of the knowledge of employees at all the
levels.
 The women safety is taken as organizations priority for the betterment of women.
  Educational benefits and support should be provided to the employees as well as their
children.

5.3 CONCLUSION:
The compensation program of ValueLabs includes the salary, incentive and the benefits
should contribute positively to both the employee and the employer.

Merit is the criteria for rewards and remaining are said that performance, behaviour &
kind work. perk\fringe benefits provided to senior level employees by ValueLabs.

Encouragement of workers participation in management, the appraisal technique followed by

the organization and the leaves taking system in the organization, recruitment process and
salary administration are the key factors.

It is also found that working hours are feasible and the benefits and allowances that are
provided for them are satisfactory. They are highly satisfied with the level of income which
they are earning. After scrutinizing the employees of ValueLabs it is found that majority of
the employee opinion that organization culture is the vital element that provides with
compensation.

APPENDIX:

QUESTIONNAIRE

1. Gender?

 Female

 Male

2. Age?

 Under 20

 20-29
  30-39

 Over 40

3. How are you employed?

 Part time

 Full time

4. Which shift do you work?

 Day shift

 Night shift

5. Since how many years have you been working with the ValueLabs?

 0-5 years

 5-10 years

 10-15 years

 More than 15 years

6. Do you feel that the compensation is being developed from the employees and
employers point of view?
 Strongly agree
 Agree
 Disagree

7. In case of job rotation does the rotation employee get any hike in the Salary?
 Yes
 No
 May be
8. Does your organization reward the people who perform their job well?
 Yes
 No
 Can’t say
9. What basis increases salary?
 Experience
 Performance
  Both
10. Does your organization consider advances (like leaves) in case of emergence?
 Yes
 No
 May / may not be
11. Whether your organization is providing equal pay for work of equal value?
 Yes
 No
 May be
12. Whether your organisation is providing any of the following benefits?
o Medical insurance
o Vacation leaves
o Rent Free Accommodation
o None
13. Do you agree that compensation may help to reduce the turnover?
 Agree
 Strongly disagree
 Strongly agree
 Disagree

14. Does the organization provide any below Benefits?

 Flexible timings
 Medical reimbursements
 Over time policy
 None
15. Whether your organization is providing any perk/fringe benefits to employees?
 Yes
 No
 Can’t say
16. Are you satisfied with Annual benefits given by the organization?
 Yes
 No
 May be
 May not be
17. To what extend do you prefer for the compensation management in “VALUE
LABS”?
 Satisfied
 Average
 Not satisfied
 Can’t say
18. Are you satisfied with HRA, Bonus & other HR compensatory practices
implemented in your organization?
 Agree
 Strongly disagree
 Strongly agree
 Disagree

19. How do you feel about the benefits provided by the organization?
 Highly satisfied
 Satisfied
 Dissatisfied
 Highly dissatisfied
20. What would be the appraisal period date for conducting performance appraisal or
salary reviews?
 Annually
 Calendar year
 Half yearly
 Completion of one year
 BIBLIOGRAPHY:

BOOKS:

1. P. Subba Rao -Personal Human Resource Management, Third Edition.

2. K. Aswathappa- Human resource management Fourth edition, 2006

3. Research Methodology – C.R. Kothari

4. V. Subbarao – Human Resource Management

5. Compensation Management

WEBSITES:

www.google.com

https://www.valuelabs.com

www.citehr.com

www.compensation management.com
www.hrm.com