CHAPTER-1

INTRODUCTION

1.1 INTRODUCTION

Payroll management system encompasses all the tasks involved in paying an

organization’s employees. It typically involves keeping track of hours worked and
ensuring that employees receive the appropriate amount of pay. It also includes calculating
taxes and social security, as well as ensuring that they are properly withheld and
processed. Depending on the company in question, a full range of other deductions may be
calculated, withheld, and processed as part of payroll administration. Additionally, the
processing of contractor payments may fall under the umbrella of payroll administration.

The specific tasks involved in payroll administration tend to vary according to the needs
of each unique company or organization. For example, some companies have workers that
receive commissions in addition to salaries. In these companies, including commissions in
employee salaries is a part of payroll administration. For some companies, it also involves
assigning exempt or non-exempt status to workers, adding bonuses into paychecks,
calculating overtime payments, and adhering to applicable employment laws.

Handling payroll-related problems are part of payroll administration as well. If an

employee is paid an incorrect amount or a direct deposit fails to go through, both things
are payroll administration issues. Likewise tax filing and deduction errors are payroll
administration matters as well.

Payroll administration can be very simple, involving the payment of just a handful of
employees, or very complicated, involving payroll for thousands of employees and
contractors. In some, very small companies, payroll may be handled by the owner of the

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 company or an employee. However, other companies may have many employees to pay
and keep track of necessitating a well planned, efficient payroll administration system.

Some companies choose to handle payroll administration in-house, often creating a

separate department just for the handling of payroll. Often, such organizations purchase
software to streamline payroll-related tasks. Some companies even have special software
designed for them, creating a payroll system that is tailored to their unique requirements.

Many companies decide to outsource payroll administration to other companies. Payroll

administration companies handle most, if not all, payroll-related tasks for the companies
they serve. Some payroll administration companies also provide management and human
resource assistance as well. Many payroll administration companies tailor their services to
meet the needs of organizations of all sizes and types. Some even offer on-site help and
payroll consultations as well.

Payroll is defined as a method of administrating employees’ salaries in the organizations.

The process consists of calculation of salaries and tax deductions of the employees,
administrating the retirement benefits and disbursements of salaries to employees. It can
also be called as an accounts activity which undertakes the salary administration of
employees in t h e o r g a n i z a t i o n . Administrating the employees’ salaries is not an easy
task, the HR and accounts department work together to calculate and disburse the salary to
the employees. Thus, payroll management can be further subdivided into two sub
processes, i.e. Payroll accounting and payroll administration. Payroll refers to the
administration of employees' salaries, wages, bonuses, net pay, and deductions. It consist of
the employee ID, employee name, date of joining, daily attendance record, basic salary,
allowances, overtime pay, bonus, commissions, incentives, pay for holidays, vacations and
sickness, value of meals and lodging etc. There are some deductions such as PF, taxes, loan
installments or advances taken by employee.

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PAYROLL IS ADMINISTERED ON MONTHLY BASIS AND ANNUAL
BASIS.

While administrating the monthly payroll basic salary, HRA, conveyance, and other special
allowances such mobile, etc are considered. There are some deductions.

Allowances, incentives, bonuses and reimbursements are based on organizational policies.

Some organizations provided the allowances on a fixed rate say 10% or 12% of the basic
salary. Some organizations go for performance based incentives.

PAYROLL MANAGEMENT PROCESSES

Calculation of gross salaries and deductible amounts is a tedious task which involves risk.
Some of the organizations use the traditional manual method of payroll processing and
some go for the advanced payroll processing software. An organization opts for any of the
following payroll processing methods available:

a) Manual System:- Manual payroll system is the traditional payroll system which
involves pen and ink, adding machine, spreadsheet, etc instead of computers, software

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 and other computerized aids. The process was very popular when there were no
computerized means for payroll processing.

b) Accountant: Accountant is a professional having a degree or diploma in finance or

accountancy. He /she is responsible for all activities related to payroll accounting.
He/she has sound knowledge of accounting principle and globally accepted standards.
The process add cost and value to the organization.

c) Pay roll: - Pay roll outsourcing involves a third party in the calculation of salaries and
deduction. It save time and cost for the organization. If there is more number of
employees, say more than 900-1000, in the organization, payroll outsourcing must be
very beneficial.

The data is provided to the consultants/outsourcing firms. The various payroll functions
undertaken by the outsourcing organizations are as follows:

• Analysis of Payroll records, payroll taxes

• Medical claim processing

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 • Employee Insurance & Provident fund processing

• Quality Audit procedures & planning

PAYROLL SOFTWARE SYSTEM:-

Effective software systems contain two basic systems operating in conjunction: an

evaluation system and a feedback system. The main aim of the evaluation system is to (if
any). This gap is the shortfall that occurs when performance does not meet the standard
set by the organization as acceptable. The main aim of the feedback system is to inform
the employee about the quality of the software provided by the organization. (However,
the information flow is not exclusively one way. The Technology team also receives
feedback from the employee about software problems, etc.)One of the best ways to
appreciate the purposes of performance appraisal is to look at it from the different
viewpoints of the main stakeholders: the employee and the organization.

a) Employee Viewpoint:- From the employee viewpoint, the purpose of software

used to calculate payroll process as it help to improve software skill and
reward the employees according to their performances.

b) Organizational Viewpoint:- From the organization's viewpoint, one of the most

important reasons for having a software is to establish and uphold the principle of
accountability.
.

For decades it has been known to researchers that one of the chief causes of
organizational failure is "non-alignment of responsibility and accountability." Non-
alignment occurs where employees are given responsibilities and duties, but are not held
accountable for the way in which those responsibilities and duties are performed. What

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 typically happens is that several individuals or work units appear to have overlapping
role.

The overlap allows - indeed actively encourages - each individual or business unit to
"pass the buck" to the others. Ultimately, in the severely non-aligned system, no one is
accountable for anything. In this event, the principle of accountability breaks down
completely. Organizational failure is the only possible outcome

In cases where the non-alignment is not so severe, the organization may continue to
function, albeit inefficiently. Like a poorly made or badly tuned engine, the non-aligned
organization may run, but it will be sluggish, costly and unreliable. One of the principal
aims of performance appraisal is to make people accountable. The objective is to align
responsibility and accountability at every organizational level.

ROLE OF HR IN PAY ROLL MANAGEMENT SYSTEM:-

Earlier payroll was considered to be a part of account department and there was no direct
interface between Account and H.R. department related to pay roll management system.
Performance appraisal of an employee was more ritual and done irregularly in an
organization and that performance not related to pay.

In countries like US, even before 15 years Payroll was treated as part of the
Compensation & Benefits Management, which is basically HR function. Payroll, as you
can see, is only an event, which is happening at a frequency as may be stipulated by the
country/company rules, and is guided by the policy on Compensation & Benefits
Management program of any company. Other countries gradually adopted the concept.

Payroll is also a sensitive matter as employees may have queries when they receive their
payslips. Not to generalise, Accounts personnel are not very much the right persons to
have the kind of human relations skills to answer such queries with empathy and

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patience. So, Payroll also became a matter of human relations over years when
employees mattered.

Another reason is the salaries have become more and more linked with employee
performance and retention with a substantial part of salary paid as performance-linked
incentive. Performance Management being the HR function, payroll management in a
performance-oriented reward system has become HR function.

Accounts department mainly performs a control function and is therefore made as

bottleneck. A bottleneck approach is not the right approach when you need to reward
people's performance in a dynamic business environment. So, the payroll function has
been transferred to HR to make it stay nearer to the people of the organization so as to
respond quickly to the employees' queries and performance. Of course, Accounts will
ultimately monitor the expenses and give their advice regarding any lapse in controls
through audit and other tools.
Beside this H.R. have certain responsibilities as an Pay roll administration. such as:-

a) HR administration - setup customer employees' profile, verification of data and

ensure up-dated information on employees records

b) Attendance verification and seeking approval

c) Leave management

d) Payroll processing, verification, management and reporting

e) Perform statutory administration, contribution, reporting and others

f) Perform customer liaison, project implementation and setup

g) Handling customer inquiry, customer employees' registration and others and

take immediate action to rectify the complaints.

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1.2 OBJECTIVE OF THE STUDY:-

The project aims at the study of the Pay Roll Management System and it effectiveness in the
organization. Pay Roll System is the most indispensable tool for the management of an
organization as it credibility, accountability and proper functioning influence the working of
Employee as well as the productivity of an organization. There has been tremendous growth in
the number and size of multinational companies today, leading to significant challenges in the
areas of human resources and payroll system

Thus the broad objective of the study is:-

a) Identify the HR role in Payroll system and thereby to analyze the interface level
between account and H.R. department in the organization.

b) Effectiveness of the software used in payroll system in an organization.

c) To establish the internal control for the pay roll cycle by the H.R. department which
ensure an adequate segregation of duties, proper authorization of transaction, an
accurate and timely recording of expenditure.

d) To critically analyze the satisfactory level of employees using this software in

organization.

e) To analysis whether these software’s are user friendly and to analyze the accuracy
and accountability of the pay roll management system in Indigo Airline.

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Reason for the study: - Payroll incorporates components of both human resources and
finance. From data-gathering to compiling, the payroll process includes calculations and
reporting as well as integrating the data back into the organization The following are the needs
to do the research at “Indigo” Interglobe Aviation Pvt. Ltd.

1. To understand the interface level between Account and H.R.department in an

Organization in the pay roll management system in Indigo Airline.

2. The management was in the position to know whether the existing software
system used is effective or not.

3. To measure the satisfaction level of the employees using the software.

4. To obtain the feedback from the employees which enable further improvement in
existing software system.

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1.3 RESEARCH METHODOLGOY

a) RESEARCH DESIGN:

A research design is the arrangement of conditions for collection and analysis of data in a
manner that aims to combine relevance to the research purpose with economy in procedure.
The most significant decision is the choice of research approach, because it determines how the
information will be obtained. The choice of the research approach depends on the nature of the
research that one wants to do.

The research design adopted for this study is Exploratory Research. Exploratory research
focuses on collecting data using an unstructured format or informal procedures to capture data
and to interpret them. It is often used to classify the problems or opportunities and it is not
intended to provide conclusive information from which a particular course of action can be
determined.

b) SAMPLING TECHNIQUE:

The next step in research study after collecting data is the sampling process. When a decision is
made to use the sample, a number of factors must be taken into consideration. The various
steps involved in the sampling process are:

• Identifying target population

• Determining sample frame

• Selecting sampling procedure

• Determining sampling size

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 • Execute sampling

• Obtaining information from respondent

• Generate information for decision making

The target population in this study was the ground staff of Indigo Airline belonging to different
department. The sampling technique had to be selected. There are two types of sampling
techniques:-

• Probability sampling

• Non-probability sampling

For the purpose of our study among the probability sampling, the sampling used in this study
was stratified sampling.

c) STRATIFIED SAMPLING

If the population from which a sample is to be drawn does not constitute a homogeneous
group, then stratified technique is applied so as to obtain a reprehensive sample. In this
technique, the population is stratified into number of non-overlapping sub populations or strata
and sample items are selected from each stratum. If the items selected from each stratum is
based on simple random sampling, the entire procedure, first stratification and then simple
random sampling is known as stratified sampling. The stratified sampling results in a more
reliable and detailed information. The researcher uses simple random sampling for selection of
items from each stratum.

d) SAMPLE SIZE
The population covered for the present study consisted of employee belonging to supervisory
and the level above. For the purpose of this study, survey covered the employee of INDIGO
LTD. falling under supervisor and the level above. The study covered a sample of 50
employees.

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 e) DATA COLLECTION APPROACH

There are several ways of colleting the appropriate data. While deciding about the method of
data collection to be used for the study, the researcher should keep in mind, that there are 2
types of data.

1. Primary data

2. Secondary data
Primary data are those which are collected a fresh and for the first time and thus happen to be
original in character. Primary data can be collected either through experiment or through
survey.

Secondary data are those which are collected from the published article, books, journaletc.
Primary data can be collected either through experiment or through survey.
The secondary data on the other hand are those which have already been collected by someone
else and which have already been passed through the statistical process. In this study, the data
was collected from the primary source through interview schedule.

f) STATISTICAL TECHNIQUE

This phase consists of the data analysis of the data collected based on the stratified simple
random probabilistic sampling technique. The data collected were analyzed using the
percentage analysis which involve the number of responses of each category is summarized to
percentage format and bar chart used to critically analyze the data and further data
interpretation was done.

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 CHAPTER-2
COMPANY PROFILE

2.1 INTRODUCTION

‘Indigo’ InterGlobe Enterprises is an integrated travel corporation spanning various

domains: aviation management, domestic low cost airline, travel technology, travel
distribution services, hotel development and management services and general aviation.

Established in 1989 and headquartered in Gurgaon, India, InterGlobe Enterprises has been
adjudged as one of the “Best Companies to Work for” in India, for 2008 and 2009 by the
Great Place to Work® Institute, in partnership with The Economic Times.

InterGlobe has a network of 52 offices across 23 cities in India and strategic overseas
locations in SriLanka, USA, UK, Malaysia, Singapore, Philippines and Australia. The
enterprise employs close to 6000 professionals across its businesses, which include IndiGo –
India’s fastest growing low-cost airline; Airline Management for 14 international airlines;
Distribution of GDS; Travel Technology; Development of Hotels in partnership with Accor
of France - owner of brands such as ibis, Sofitel, Novotel, Mercure and Pullman; and
InterGlobe General Aviation, which represents and services the entire line of
HawkerBeechcraft and Sikorsky products.

The enterprise is committed to delivering outstanding value to its stakeholders through its
passion for quality and innovation.

According to Rahul Bhatia, Group Managing director Interglobe Enterprises Limited, the
travel industry in India is buoyant with an ever changing and dynamic environment. At
Interglobe Enterprises, we have 360 degree approach to providing end to end solution to the
travel industry.

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2.2 HISTORICAL BACKGROUND
With a clear vision, conviction and complete faith in its people, Interglobe Enterprises
continues to constantly change the landscape of travel, technology, aviation and hospitality,
with a dynamism that seems to grow only with passing time.

In 1989 Interglobe Enterprises ( IGE) set up Interglobe Air transport (IGAT). Later it
becomes the National Distribution Company for Galileo International & Global Distribution
System distribution. Later it expand its business activities in the field of aviation,
technology and hospitality sector. Established in 1989, InterGlobe Enterprises is a travel
corporation with a vision to deliver value to its stakeholders, clients and customers through
dedicated business units that perform specialist roles. The organization has been serving the
travel industry for the past four decades and has become a diversified international
corporation in the areas of Aviation Management (InterGlobe Air Transport), Domestic
Airline (IndiGo), Travel Technology (InterGlobe Technologies), Travel Distribution
Services (InterGlobe Technology Quotient), Hotel Development & Management Services
(InterGlobe Hotels) and InterGlobe General Aviation. Headquartered in Gurgaon, India,
InterGlobe Enterprises comprises of around 7500 professionals.

2.3 INTERGLOBE AVIATION PRIVATE LIMITED

InterGlobe operates ‘IndiGo’, India’s leading domestic low cost airline. IndiGo is the
youngest fleet of aircraft in the country. It offers a uniquely smooth, seamless, precise and
gimmick-free customer experience at fares that are extremely affordable.

Indigo is built for the people with things to do, place to be people to see-who don’t want to
waste time, money or energy in the process. By minimizing time/cost/tension of air travel,
Indigo opens up a country full of opportunities.

One of the prominent offerings of our aviation portfolio is IndiGo airlines. A low-cost
domestic carrier, IndiGo has a fleet of brand new Airbus-A320 aircrafts and currently

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 operates daily flights connecting all major destinations in India. IndiGo stands for three
things: Affordable Fares, On-Time performance and a Hassle-Free flying experience.

2.4 MANAGEMENT BIOS OF INDIGO

a) Mr. Aditya Ghosh, President

Mr. Ghosh sits on the Board of IndiGo and was key to its launch. As the President of IndiGo,
Mr. Ghosh has the overall managerial and operational responsibility of IndiGo.

Mr. Ghosh is also a key member of the Leadership Team of the InterGlobe Enterprises which
is the body that is responsible for the management of the Enterprise’s various businesses which
span a wide range of activities while staying true to the core competency of the travel domain.
Mr. Ghosh plays an instrumental role in the management of the Group’s affairs and advising
on and formulating growth strategies of the InterGlobe Group. Prior to assuming his role as the
President of IndiGo, Mr. Ghosh served as the General Counsel for the entire InterGlobe
Enterprise.Mr. Ghosh is a member of the Executive Council of the Federation of Indian
Airlines.

b) Mr. Riyaz Peer Mohammed, Chief Financial Officer

Mr. Peer Mohammed joined IndiGo in March 2006 and is responsible for finance.
Prior to joining IndiGo Mr. Peer Mohammed was Senior Vice President – Corporate Treasury
for Emirates Airlines and was responsible for treasury, corporate finance, management
accounts, budgeting, cost control and business finance.

Previously Mr. Peermohammed held the position of Corporate Treasurer of the Emirates Group
and was the Aircraft Financing Manager responsible for aircraft acquisition and lease
arranging.Mr. Peer Mohammed holds a Bachelor of Science from Bombay University, is a
Chartered Accountant and a Chartered Financial Analyst.

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c) Mr. Sanjeev Ramdas, Vice President: Customer Services & Airport Operations

Mr. Ramdas joined IndiGo in October 2005 and is responsible for customer services and
airport to perations.Prior to joining IndiGo Mr. Ramdas was Director of Airport Services at
InterGlobe and managed the airport operations of InterGlobe’s airline partners. Mr. Ramdas
has been responsible for airport operations, aircraft handling, customer services, emergency
response procedures, safety, contract negotiations, GSE purchasing, service level agreements
and cargo.

Previously Mr. Ramdas worked for Cambata Aviation Pvt. Ltd., Scandinavian Airlines, Tarom,
Turkish and Delta Airlines .Mr. Ramdas holds a Bachelor of Commerce degree (with Honors)
from Delhi University and a Post Graduate diploma in Personnel Management and Industrial
Relations.

d) Mr. K.S. Bakshi, Vice President: Human Resources

Mr. Bakshi joined IndiGo in December 2006 and is responsible for human resources.
Prior to joining IndiGo, Mr. Bakshi was the General Manager – HR for Bharti Airtel Ltd.,
Broad Band & Telephone Services – NCR in Delhi. He has over 14 years experience in
human resources management, with a special emphasis on building and improving HR
processes and systems and on the acquisition, management, development and retention of
talented employees.

He worked on various projects in the areas of leadership competency, employee engagement

and managing performance. Mr Bakshi holds a Post Graduate Diploma in PM & IR from
XLRI, Jamshedpur.

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e) Mr. Vineet Mittal, Vice President: Financial Planning & Analysis

Mr. Mittal joined IndiGo in October 2005 and is responsible for financial planning, taxation,
accounting and purchasing. Prior to joining IndiGo Mr. Mittal was a project manager at
InterGlobe responsible for the IndiGo project. Previously Mr. Mittal worked for Royal
Airways as Revenue and MIS manager and was responsible for revenue auditing and analysis.
Prior to joining Royal Airways Mr. Mittal worked with DLF Universal as Deputy Manager –
Accounts and was responsible for accounting procedures, taxation compliance and capital
management.

Mr. Mittal began his career as a statutory and general auditor with Ernst and Young.Mr. Mittal
holds a Bachelor of Commerce from Hansraj College, Delhi University and is a Chartered
Accountant from the Institute of chartered accountants of India. Mr. Mittal is also a graduate of
cost accountancy from the Institute of cost and work accountants of India.

f) Mr. Amit Khandelwal, Vice President: Planning and Revenue Management

Mr. Amit Khandelwal joined IndiGo in February 2007.In an airline career spanning almost 15
years, Mr. Amit Khandelwal has worked on various assignments in the areas of Business
Development, revenue strategy, and program management in the aviation industry, consulting
& IT-enabled services. Prior to joining IndiGo, he worked with Go Air, United Airlines, PROS
Revenue Management. and NIIT. He holds a B.E. from BITS, Pilani and an M.S. (Operations
Research & Management) from the University of Texas.

g) Namrata Singh, Associate General Counsel

Namrata is the Associate General Counsel of IndiGo and heads its legal and corporate affairs.
She started her legal career with a reputed law firm in New Delhi, where she was involved with
the whole gamut of corporate and business laws.

17
She joined InterGlobe Enterprises Limited as Legal Counsel in 2005. During her association
with InterGlobe, she played an integral role in the management of the Group’s legal affairs and
advised several of the Group companies and was assigned to advice on the new venture of the
Inter Globe Group‘IndiGo’. She holds a Bachelor’s degree in Law from Symbiosis Society’s
Law College, Pune.

2.5 INDIGO FACTS

• A brand new fleet of 24 Airbus-A320s with single class seating with 161 daily flights,
IndiGo flies to as many as 20 destinations all over India
• The largest low-fare domestic airline with 13.9% market share (as of Aug 09)
• The highest technical dispatch reliability in India: 99.91% since launch
• Industry leading on- time performance in the domestic market
• First domestic low cost airline to have CAT III compliant pilots
• Several industry first initiatives like web check-in, mobile bookings, queue busters, step
less boarding ramps, air-conditioned tarmac coaches.
• High asset utilization, fast turn-around and optimum resource utilization
• Awarded the ‘Best Domestic Low-Cost Carrier’ 2008 by Galileo Express Travel World
• Awarded the‘ Best Low Cost Carrier’ 2009 by CNBC AWAAZ Travel Awards

2.6 INTERGLOBE ENTERPRISES’ THIRD CONSECUTIVE WIN A

INDIA’S BEST PLACE TO WORK

New Delhi, June 24, 2010: InterGlobe Enterprises‚ a leading aviation, travel technology
and hospitality company‚ has been awarded the "Best Place to Work For" award by ‘Great
Place to Work’ institute in Mumbai for the third consecutive year. In addition, this year
InterGlobe has also been awarded the top spot as “The Best Company in the
Transportation industry”.

With a worldwide presence for over 20 years, Great Place to Work Institute has been known
for its excellence in studying and recognizing best workplaces globally. This year, they had

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 more than 400 companies participating in the study and only 50 organizations were short
listed for the ‘Best Companies to Work For’ list.

Speaking on this, Mr. Michael Whitaker, Group CEO, InterGlobe Enterprises, said,
“We are humbled by the recognition. We at InterGlobe Enterprises strongly value our
employees and believe in communicating at all levels and through a variety of modes. This
award brings with it an immense responsibility to further dedicate ourselves in making
InterGlobe a world class organization with best‐in class business and people practices. But
most importantly, this is the time to celebrate this proud moment and the quintessential
spirit of ‘One Team – One Dream’.

2.7 INDIGO STANDS FOR THREE THINGS:-

a) Affordable rates
b) Timeliness
c) Hassle free

2.8 OPERATIONAL STATISTICS OF INDIGO AIRLINES

• Indigo Airlines have outperformed the industry with sound operations , they have
transported ~16 m passengers since inception.

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2.9 RISK MANAGEMENT

IndiGo is the first and the only airline in India to cover the Threat and Error Management
(TEM) syllabus during initial as well as recurrent Crew Resource Management (CRM)
training Introduced flight data monitoring under Safety Management System (SMS). Flight
data exceedance grading system implemented based on severity of Occurrence, based on
exceedance grading report risk analysis carried out Special non punitive reports being
generated for monitoring SOP adherence by flight crew (introduced from 01-Jan-09).
At least one station audited each month by flight safety department Grading system for the
type of risk and mitigation strategies via continuous monitoring through training or

20
 redesigning of programs. Retrained all stations in ramp procedures via safety presentations.
Regular safety updates from President to staff.

2.10 PROACTIVE SAFTEY INITIATIVE

• Hazard Identification
• Risk Analysis
• Risk Mitigation
• Residual Risk Analysis
• Risk Acceptability
• Inspections
• Ramp Safety Inspections
• Pre Launch Station inspections
• Internal Safety Audits
• 100% Flight data monitoring
• Random CVR monitoring
• Cabin Surveillance Inspection
• Spot Checks
• FDTL adherence monitoring
• Weather Minima violation monitoring
• Load and Trim checks
• Awareness Promotion
• Flight safety E-manual
• Ramp safety awareness presentations.
• Safety Information Advisories
• Safety Information Bulletins
• Pilot -Engineer coordination meetings.

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2.11 CREW RECRUITMENT AND TRAINING
Fully staffed for current fleet of aircraft:-

Expected pilot shortages eased on account of recent capacity reductions

• Minimum ICAO level 4 proficiency in English
• Simulator assessment check for IndiGo pilots in Bangalore (not required by the DGCA)
• IndiGo pilot composition
a) Indian nationals: 280 (114 Capt/ 166 FO)
b)Expats: 28 Capt

• IndiGo expat captains selection well above industry standards

• IndiGo Indian national captains selection is also well above industry standards.

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2.12 STRONG EMPHASIS ON TRAINING

a) PILOT TRAINING

• Captain’s training – Qualified and Experienced Senior Co-pilots are taken through a
rigorous selection
• Process for command upgrade. Thereafter they undergo 8 SIM sessions + 2 Skill test
for evaluation +
• AWO training followed by 50 sectors of IOE, 10 line checks and after DGCA
endorsement one final
• Release check.
• Co-pilot’s training - Endorsement + 02 route checks + 10 sectors of IOE with TRE + .
40 sectors of IOE
• Followed by 2 sectors release check with TRE. IndiGo simulator and line training is
done by the Airbus
• Instructors for standardization along with a SLF of 50 sectors
• Expat pilots - At IndiGo expats undergo 4 familiarization flights + a minimum of 05
sectors of IOE
• Covering critical and short fields + one line checks with TRI/TRE.

b) ENGINEERING

• AACT training - employed by IndiGo. First time carried outside of Europe

• IndiGo training department imparts recurring training (required under CAR145)

c) CABIN CREW

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 • Ab Initio Training: 45 Days
• Greater training duration than regulatory mandate
• Pass Score % mandated by DGCA is 80% vs. IndiGo standard of 90%
• 3 strike policy (3 failures resulting in termination)

2.13 THE INDIGO STORY

• Highly profitable and fastest growing airline in India
• Strong Cash flows
• Comprehensive power by hour (PBH) and maintenance agreements
• Strong Management
• Superb Product quality recognized by the market place

• Largest low cost airline in India

• Industry leading on-time performance

• 99.91% technical reliability.

2.14 HR VISION

"To attain organizational excellence by developing and inspiring the true potential of
company’s human capital and providing opportunities for growth, well being and enrichment".

2.15 HR MISSION

“To create a value and knowledge based organization by inculcating a culture of learning,
innovation & team working and aligning business priorities with aspiration of employees
leading to development of an empowered, responsive and competent human capital”

2.16 HR OBJECTIVES

a) To develop and sustain core values.

b) To develop business leaders for tomorrow.

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c) To provide job contentment through empowerment, accountability and responsibility.

d) To build and upgrade competencies through virtual learning, opportunities for growth
and providing challenges in the job.

d) To foster a climate of creativity, innovation and enthusiasm.

f) To enhance the quality of life of employees and their family.

g) To inculcate high understanding of 'Service' to a greater cause.

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 CHAPTER-3
PAY ROLL SYSTEM IN INDIGO AIRLINES

The Payroll function of an organization not only ensures that employees are paid accurately
and on-time but also thrives to achieve optimum efficiency. Organizations are also striving to
reduce the operating costs of the payroll unction through automation and also be compliant
with all legal requirements. Payroll processing is the backbone of an organization’s employee
operational and satisfaction focus.
Indigo pay roll solution g e a r e d to leverage global sourcing at each stage of the
transformation journey from process definition, process standardization, consolidation to re-
engineering. The solutions are designed to provide a robust, scalable and flexible delivery
engine that influences global skill and economies of scale and hat allows organizations to
focus on centers of expertise and business partnering.

Performance of this critical PS component is of vital concern considering the importance of

the output of the program and dependencies other systems may have to the timely completion
of the processing of the engine. Most important, it is a reputation concern for an organization
to be able to compensate its employees on time

Indigo uses its capabilities across consulting technology and with employees in the :-

a) Creation of the process delivery backbone

b) Development of underlying technology support

c) Comprehensive payroll service delivery from global delivery centre

Indigo provides organizations with a platform to move away from legacy systems to a

26
 State-of-the-art payroll system. Indigo provides the complete hardware and software
environment hosted within a secure data centre. Indigo also provides ongoing maintenance,
hardware and software helpdesk support and back-up activities.

INDIGO PAY ROLL STRUCTURE

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Indigo Payroll services include:

• Hosting and Migrating

o Hosting SAP on TCS' hardware and owning SAP Payroll licenses
o Migrating customers' payroll to TCS' platform
o Maintaining the SAP payroll application
o Implementing and maintaining the interfaces between payroll and customers'
HRMS, Finance, and other applications
• Payroll Administration
o Build-to-Gross: Computing gross pay/earnings
o Gross-to-Net: Computing taxes, benefits, and other deductions
o Post-Payroll Activities: Generating Payroll/Finance files,
Operational/MIS/Statutory and tax reports, tax deposits/returns

Advantages of Indigo payroll system:-

1. Multi-process HRO practice built on sustainable model for delivering HR services in an
offshore centric model
2. Flexible and scalable delivery platform to partner with clients in their organic and
inorganic growth
3. Capability to deliver comprehensive seamless solutions through excellent cross service
collaboration across our HR Technology, Consulting and outsourcing practices
4. Leverage the deep domain understanding acquired and strengthened through Infosys
HR transformation
5. Focus on building HR professionals through training certification programs in
collaboration with external organizations.

28
Many companies decide to outsource payroll administration to other companies. Payroll
administration companies handle most, if not all, payroll-related tasks for the companies
they serve. Some payroll administration companies also provide management and human
resource assistance as well. Many payroll administration companies tailor their services to
meet the needs of organizations of all sizes and types. Some even offer on-site help and
payroll consultations as well.

Payroll is defined as a method of administrating employees’ salaries in the organizations.

The process consists of calculation of salaries and tax deductions of the employees,
administrating the retirement benefits and disbursements of salaries to employees. It can
also be called as an accounts activity which undertakes the salary administration of
employees in the organization.

Payroll management system encompasses all the tasks involved in paying an

organization’s employees. It typically involves keeping track of hours worked and
ensuring that employees receive the appropriate amount of pay. It also includes calculating
taxes and social security, as well as ensuring that they are properly withheld and
processed. Depending on the company in question, a full range of other deductions may be
calculated, withheld, and processed as part of payroll administration. Additionally, the
processing of contractor payments may fall under the umbrella of payroll administration.

The specific tasks involved in payroll administration tend to vary according to the needs
of each unique company or organization. For example, some companies have workers that
receive commissions in addition to salaries. In these companies, including commissions in
employee salaries is a part of payroll administration. For some companies, it also involves
assigning exempt or non-exempt status to workers, adding bonuses into paychecks,
calculating overtime payments, and adhering to applicable employment laws.

Handling payroll-related problems are part of payroll administration as well. If an

employee is paid an incorrect amount or a direct deposit fails to go through, both things

29
are payroll administration issues. Likewise tax filing and deduction errors are payroll
administration matters as well.

Payroll administration can be very simple, involving the payment of just a handful of
employees, or very complicated, involving payroll for thousands of employees and
contractors. In some, very small companies, payroll may be handled by the owner of the
company or an employee. However, other companies may have many employees to pay
and keep track of necessitating a well planned, efficient payroll administration system.

Some companies choose to handle payroll administration in-house, often creating a

separate department just for the handling of payroll. Often, such organizations purchase
software to streamline payroll-related tasks. Some companies even have special software
designed for them, creating a payroll system that is tailored to their unique requirements.

Administrating the employees’ salaries is not an easy task, the HR and accounts
department work together to calculate and disburse the salary to the employees. Thus,
payroll management can be further subdivided into two sub processes, i.e. Payroll
accounting and payroll administration. Payroll refers to the administration of employees'
salaries, wages, bonuses, net pay, and deductions. It consist of the employee ID, employee
name, date of joining, daily attendance record, basic salary, allowances, overtime pay,
bonus, commissions, incentives, pay for holidays, vacations and sickness, value of meals
and lodging etc. There are some deductions such as PF, taxes, loan installments or
advances taken by employee.

30
 CHAPTER -4
LITERATURE REVIEW

4.1 Introduction

Payroll management system encompasses all the tasks involved in paying an

organization’s employees. It typically involves keeping track of hours worked and
ensuring that employees receive the appropriate amount of pay. It also includes calculating
taxes and social security, as well as ensuring that they are properly withheld and
processed. Depending on the company in question, a full range of other deductions may be
calculated, withheld, and processed as part of payroll administration. Additionally, the
processing of contractor payments may fall under the umbrella of payroll administration.

The specific tasks involved in payroll administration tend to vary according to the needs
of each unique company or organization. For example, some companies have workers that
receive commissions in addition to salaries. In these companies, including commissions in
employee salaries is a part of payroll administration. For some companies, it also involves
assigning exempt or non-exempt status to workers, adding bonuses into paychecks,
calculating overtime payments, and adhering to applicable employment laws.

Handling payroll-related problems are part of payroll administration as well. If an

employee is paid an incorrect amount or a direct deposit fails to go through, both things
are payroll administration issues. Likewise tax filing and deduction errors are payroll
administration matters as well.

Payroll administration can be very simple, involving the payment of just a handful of
employees, or very complicated, involving payroll for thousands of employees and
contractors. In some, very small companies, payroll may be handled by the owner of the

31
 company or an employee. However, other companies may have many employees to pay
and keep track of necessitating a well planned, efficient payroll administration system.

Some companies choose to handle payroll administration in-house, often creating a

separate department just for the handling of payroll. Often, such organizations purchase
software to streamline payroll-related tasks. Some companies even have special software
designed for them, creating a payroll system that is tailored to their unique requirements.

Many companies decide to outsource payroll administration to other companies. Payroll

administration companies handle most, if not all, payroll-related tasks for the companies
they serve. Some payroll administration companies also provide management and human
resource assistance as well. Many payroll administration companies tailor their services to
meet the needs of organizations of all sizes and types. Some even offer on-site help and
payroll consultations as well.

Payroll is defined as a method of administrating employees’ salaries in the organizations.

The process consists of calculation of salaries and tax deductions of the employees,
administrating the retirement benefits and disbursements of salaries to employees. It can
also be called as an accounts activity which undertakes the salary administration of
employees in t h e o r g a n i z a t i o n .

Administrating the employees’ salaries is not an easy task, the HR and accounts department
work together to calculate and disburse the salary to the employees. Thus, payroll
management can be further subdivided into two sub processes, i.e. Payroll accounting and
payroll administration. Payroll refers to the administration of employees' salaries, wages,
bonuses, net pay, and deductions. It consist of the employee ID, employee name, date of
joining, daily attendance record, basic salary, allowances, overtime pay, bonus,
commissions, incentives, pay for holidays, vacations and sickness, value of meals and

32
 lodging etc. There are some deductions such as PF, taxes, loan installments or advances
taken by employee.

4.2 Major duties of HR in Pay Roll System

a) Ensures timely and accurate preparation of all Institution payroll operations and works
closely with the Human Resources Office to ensure that payroll actions are in
conformance with employment and benefits practices and accounting procedures
b) Oversees preparation of all federal and state payroll tax reports, including quarterly and
year-end returns; determines taxability of non-wage payments and serves as in- house
contact for technical tax compliance issues, including tax liabilities of foreign nationals.

c) Interprets Institution employment policies and government regulations in connection

with payroll activities and makes recommendations on modifications to senior
management as appropriate

d) Handles federal and state agency audits and maintains close contact with ITI and
other regulatory agencies to ensure that the Institution has accurate information and is
in compliance.
e) Maintains all payroll records, reports, computations and audits, including periodic
internal audit tests of labor utilization; works closely with internal and external
auditors to ensure compliance with relevant tax laws and government regulations.

f) Interfaces routinely with Human Resources on employee benefits issues

( deductions, retirement payments, etc.) to ensure timely and accurate processing

g) Works closely with Management Information Systems on developing payroll

applications that ensure internal controls and facilitate the implementation and
maintenance of payroll and HR master files.

33
 h) Provides periodic analysis of payroll and disbursement records to ensure that
adjustments are in accord with management's criteria.

i) Supervises Payroll Office staff and operations; provides on-going assistance to

adjustments are in accord with management's criteria.

j) Supervises Payroll Office staff and operations; provides on-going assistance

to Institution employees in tax-related payroll matters.

j) Participates in business re-engineering activities to support the establishment and

Payroll Methodology .

4.3 Pay Roll System

SAP-source is software-that is used in Indigo Airline which can take best of the available
software to suite client need.

To build methodical & service oriented approach in execution of Payroll as it is a

Sensitive activity and needs to be executed as:-

• Timely & consistently

• Correctly to the last detail

• To Fulfill statutory obligations/compliance

• To give complete picture every month to management and employee

• Supportively & predictably

34
 Software used in Indigo Airline allows organization to generate pay slips and salary

register, based on the attendance of the employees taking care of leaves, overtime,

allowances, loans, advance, bonus, encashment and other standard deductions like PF,

E.S.IC, Professional Tax, Income Tax, CPF, NHIF, NSSF, PAYE, LST ( for international

Payroll) etc.

"The Indigo Airline is on the move to e-enable all HR functions and the employee
interface. We are in the process of adopting state-of-the art ERP software - SAP, across all
locations and businesses. While Payroll for over 10,000 employees has already been
streamlined through SAP into uniform set of standardised fucntionalities, the Group HR is
reorganising its world class procedures on the concept of "Shared Services," based on the
capabilities and the best practices embedded in SAP. set of standardised fucntionalities, the
Group HR is reorganising its world class procedures on the concept of "Shared Services,"
based on the capabilities and the best practices embedded in SAP.

4.4 Major Modules in Pay Roll System Software:-

a) Employee Profile
• Employee Joining Information.
• Employee Profile.
• Family background details.
• Awards given to Employee and their Children.
• Employee Club Membership Profile.
• Employees extra Circular Activities etc.

35
 • Probation Confirmation details.
• Employee Current position and job profile
• Employee Local address and References details.
• Employee Qualification and experience details.
• Documents submitted by employee
• Assets given to employee
• Employee Training details.
• Holidays Info (Fixed / Non-fixed)

b) Leave Management System

• User Defined Leave types

• Leave Application
• Leave rules
• Leave Balance Details
• Leave Approvals
• Monthly / Yearly Leave Carry Forward
• MIS Reports

c) Time Management System

• Overtime Details
• Manual Attendance done By Employee details
• Week of Adjustment (employee wise)
• Late Coming, Early going, travel on Duty etc
• Employee Shift Manage

36
 • Overtime on Overtime
• Monthly / Yearly Leave Carry Forward
d) Employee Transfer, Promotions & Increment

• Transfer Details (Shift / Department)

• Promotion Details (Post / Salary

e) Payroll Management System

• User defined Salary Heads

• Professional Tax Slab
• Pay slip Generation
• Salary formula
• Create your own Salary Structure

f) HRD Procedures
• Final Settlement
• Superannuation
• PF Challan
• Gratuity
• Tax Calculation

g) Reimbursement Management

37
4.5 The payroll module offers following functionality to users:-

• Definition of a multi-location setup for employees with facility of location-wise

selective payroll processing and reporting. System allows definition of specific
‘periods of salary’ for processing and other time-office related information as shifts,
holidays,’ Off’, and leave structure of employees.

• Definition of employee departments, categories, grades, designations, salary structure,

and method of calculation. Salary structure covers for heads of earning, deduction,
and cost to company (CTC). Also definition of ‘Employee Master’ holding personnel
and payroll related information of all employees.

• Specification of perks, benefits, and reimbursements that are paid against voucher with
facility to impose ‘Limits’ and reporting of ‘Balance’.

• Time office – in and out entry that also can have swap card interface. In case of swap
card, data can be directly picked up to Oracle database.

• Generation of shift schedule considering weekly rotational duties and variable weekly
off.

• Facility for on line application for leave, leave accounting, recording of outstation
duties and temporary duties on ‘Gate Pass’. There can be adjustments and corrections
in the date related to leave, time, and overtime.

• Calculation of salary and wages. The calculation can be made for a specific category or
a specific location and facility of salary transfer to bank of employee. System
facilitates storing of salary history and reporting on that.

38
 • Accounting of loans and advances and deductions against them. The loans may be by
company it self or availed from financial institutions. There is a seamless integration
with finance module for loan and advance deduction.

• Calculation of arrears, bonus, gratuity, annual payments, retirement, termination etc.

The arrears are also calculated for leaves sanctioned at a later date. Calculation and
reporting related to provident fund, insurance, and taxes. The process covers for PF,
FPF, ESIC, PT, IT and also generates all the standard formats as prescribed by
respective departments for easy submission. The income-tax related procedure covers
calculation of provisional and final income-tax liability, recording of investments,
deduction of TDS, ‘Scheduling’ of 'Deduction’, and generations of reports for filing
of IT returns – also including printing of FORM 16 for employees.

• Generation of monthly salary JV, bank vouchers, and loan payment vouchers.
Calculation of cost to company (CTC), and estimation of payroll budgets Generation
and printing of standard letters to employees. This covers letters like appointment,
joining, confirmation and soon.

4.6 NEED FOR PAY ROLL SOFTWARE SYSTEM

The study specifically seeks to answer the following problems in manual payroll process:

1. Speed in processing payroll tends to be slow.

2. Prone to mathematical errors that could consume much time than it should and could
cause financial or legal trouble.
3. Tallying of time cards is done manually.
4. Time consuming in double checking the consistency of all the reports.

39
 5. Difficult and time consuming in keeping up-to-date in taxes and other deductions.
6. Storage of files is susceptible to be damaged as well as lost of data.

4.7 Significance of study .

1. Speed in processing payroll will have a faster performance by means of decreasing

the manual input areas.

2. Mathematical errors will be prevented by automatic computations that the proposed

system will provide and you may not have to worry about having financial or legal
trouble.

3. Tallying of time cards will be done automatically by including a computerized

employee log-in system in the proposed system which will be responsible in
computing the time the employee worked.

4. The proposed system will record all data in all reports at the same time so you can
make sure they are consistent and it also saves time.

5. Employers will never have to spend much time in keeping up to date with taxes
and deductions because the system will be designed updated to such deductions.

7. Storage of files will be safe and secured with “username and passwords” and can
easily be accessed.

40
4.8 HR/Payroll Solution: “Integrated” vs. “Interfaced”

When looking for an HR system, some organizations consider a combined HR/Payroll

solution.This may come from one vendor (integrated or interfaced), or it may come from
two vendors (interfaced). What's the difference between an "interfaced" and an "integrated"
solution? The following is a discussion on the two options, and why the interfaced option
may be the solution that's best for HR.

In an “integrated” database, HR and payroll share all current employee information,

working from one and the same database. The figure below shows this situation.

Figure 1. Integrated Database: HR and Payroll share the same database

41
 The other option is separate databases for HR and Payroll. An interface is then needed to
add or update data from one database to the other. In the diagram below, some data can
move from HR to payroll while other data moves from payroll to HR. The interface can be
automatic and set to update the databases every night or manual where HR clicks a button
to update when needed.

Figure 2. Interfaced Solution: Payroll and HR exchange data

While an integrated system has the benefit of having current data for both HR and Payroll,
an interfaced HR/Payroll system has its own advantages.

4.9 Advantages of an interfaced solution between HR and Payroll:

1. An interfaced solution meets the specific needs of the HR department.

42
 Payroll and HR are separate functions that have different needs, and those needs,
especially on the HR side, can evolve quickly. An integrated HR/payroll system may not
be easily adjusted to meet the evolving needs because changes on the HR side may
adversely affect the payroll side. Should this situation arise with an interfaced solution,
the HR database can be adjusted easily without affecting the Payroll database.

This would not be easy to do if both HR and Payroll are on one integrated database. It is
likely that HR’s needs will be unmet thereby relegating HR staff back to using
spreadsheets for their data analysis needs.

An example of this is HR’s usual practice of tracking employee benefit plan enrollment,
coverage level and benefit plan costs, while Payroll is interested in tracking deduction
codes and employee deduction amounts. Payroll may want to roll multiple benefit plans
into a single deduction code, which may conflict with the detailed benefits enrollment
data that HR needs.

Another example is organizational analysis. Payroll and Finance may want to create an
organizational and departmental structure that optimizes financial reporting. HR, on the
other hand, may want a database supporting an organizational structure that can analyze
and generate reports based on position type, training needs, or
health/safety/environmental issues.

2. An interfaced solution enables HR projects to move forward independently.

HR projects and Payroll projects may compete for the same resources. For example, if
HR is introducing a new performance review process and Payroll is changing the
quarterly accruals, the same staff may be needed to support both projects. And Payroll

43
 will almost always prevail because of urgency of their issues. With an interfaced solution,
different personnel support HR and Payroll systems, so there is no competition for
resources.

3. An interfaced solution provides the “best of breed” for HR and Payroll

If a payroll company is offering an integrated HR solution, the HR piece may have

limited features. Does it have recruiting, applicant tracking, and hiring/onboarding
functions? Does it track training, licensing and certifications? Does it alert you to when
these dates are about to expire? It is important that the HR staff conduct a detailed
analysis of the integrated solution’s HR features to make sure HR’s needs are sufficiently
met.

4. An interfaced solution ensures a support staff that knows their areas of expertise.

If a payroll company is offering an integrated HR solution, the Payroll support staff may
be less familiar with HR-related issues and the HR features of its software. When you
call to describe your HR-related question, you may not get knowledgeable HR support
staff to help you resolve your HR issue. Furthermore, the Payroll support staff may not be
current on HR regulatory changes.

5. An interfaced solution reduces your dependency on your payroll vendor or payroll service
provider.

If for some reason you are unhappy with your payroll vendor or the service that is
provided, you have the option to change your payroll company without disrupting your
HRIS system and vice versa.

44
 Note that some systems offered by a single vendor claim to be “integrated”, but in reality
they are two systems that require data updates from one system to the other.

When evaluating interfaced HR/Payroll, here are some questions to ask:

1. How often can the interface be run?

2. Which fields can be included in the interface?

3. How many steps are needed to run the interface?

4.10 The problem and review of related literature

As computer technology changes at such fast phase, many businesses sectors try to cope up
by upgrading computer system constantly in order to stay competitive. The multifunction
ability of technology for its advance system is also an important factor for a company to
use software. It makes efficient use of the advance technology and has ambition to discover
more.

The program also allows the monthly payroll schedule to be calculated

accurately. Just by having all employees’ info like name, working hours, wages etc to enter
in the database. Therefore, payroll can be done with the guide of the program. The system
is good in for its specialty in the fields of accounting. It is easy to use, effective and
efficient in organizing and calculating the payroll. There are several suggestion form the

45
Employee of an organization regarding pay roll system implemented in an organization
such as

a) The program should accepts employee hours worked.

b) The program should prepare pay cheques
c) The program should maintain data on a sequential payroll file
d) Non-statutory deductions such as union dues and pension plans to be made.

46
 CHAPTER- 5
DATA ANALYSIS AND INTERPRETATION

a) Satisfaction and dissatisfaction level towards, whether the software user friendly or not.

LEVEL OF OPTION NO. OF RESPONENTS % OF RESPONDENT

YES 42 84

NO 8 16

47
INTREPRETATION:- From the above bar graph it can be seen that among 50 employees,
84% of employees are satisfied with the software system used in organization 16% of
employees are not satisfied software system whereas we need to give more focus on
dissatisfied employees.

b) Satisfaction and dissatisfaction level toward the measurement of the complaint

regarding loading of pay sheet in software system.

LEVEL OF OPTION NO. OF RESPONENTS % OF RESPONDENT

SATISFIED 45 90

DISSATISFIED 0 0

NEUTRAL 5 10

48
INTERPRETATION:- From the above bar graph we can conclude that among 50
employees 90% of the employee are satisfied by the software measurement of the
complaint regarding loading of pay sheet in software system whereas we need to focus
more on 10% yet not responded and find out the reason for the same

c) Reason for satisfaction/dissatisfaction level towards towards the usage of new software
for pay roll process.

LEVEL OF OPTION NO. OF RESPONENTS % OF RESPONDENT

SATISFIED 38 76

DISSATISFIED 12 24

NEUTRAL 0 0

49
INTERPRETATION:- From the above bar graph it can be concluded that among 50
employees, 76% of the employees are satisfied with towards the usage of new software
for pay roll process and calculation whereas we need to give more focus on 24%
employees dissatisfied.

d) Reason for satisfaction/dissatisfaction level towards the measurement of complaint

rectification.

LEVEL OF OPTION NO. OF RESPONENTS % OF RESPONDENT

SATISFIED 26 40

DISSATISFIED 5 10

NEUTRAL 25 50

e) INTERPRETATION:- From the above bar graph it can be seen that among 50
employees, 40% of the employees are satisfied the measurement of complaint

50
 rectification by the software version whereas we need to focus more on the 10 %
dissatisfied and find out reason for 50% yet not responded.

f) Reason for satisfaction/dissatisfaction level towards the team coordination with

software technology team.

LEVEL OF OPTION NO. OF RESPONDENT % OF RESPONDENT

YES 48 96

NO 2 4

g) INTERPRETATION:- From the above bar graph it can be concluded that among 50
employees ,96% of the employees are satisfied towards the team coordination with
software technology team whereas we need to focus more on 4% dissatisfied.

51
 h) Is the organization maintains the record as per government norms.

LEVEL OF OPTION NO. OF RESPONDENT % OF RESPONDENT

YES 56 100

NO 0 0

INTERPRETATION:- From the above bar graph it can be seen that among 50 employees,
100% of the employees are satisfied by the maintenance of all reports by the organization
according to the government norms and no case is reported against the organization till date of
violation of government rule and policy from the respondents.

52
 i) Confidentiality in maintaining the employee’s personal details in an organization by the
concerned department.

LEVEL OF OPTION NO. OF RESPONDENT % OF RESPONDENT

YES 46 92

NO 4 8

INTERPRETATION:- From the above bar graph it can be concluded that among 50
employees 92% of the employees are satisfied by the confidentiality of maintaining the
employees personal details by the concerned department whereas we need to give more focus
on 8% dissatisfied employees.

53
 j) The way in which the employees interface with H.R. department for the pay roll
process.

LEVEL OF OPTION NO. OF RESPONDENT % OF RESPONDENT

YES 32 64

NO 18 36

INTERPRETATION:- From the above bar graph it can be seen that among 50 employees 64%
of the employee are satisfied by interface with H.R. department for the pay roll process H.R.
whereas we need to focus more on the 36% dissatisfied.

54
 k) Is the access to payroll and personnel records adequately controlled?

LEVEL OF OPTION NO. OF RESPONDENT % OF RESPONDENT

YES 47 94

NO 3 6

INTERPRETATION:- From the above bar graph it can be concluded among 50 employees
94% of the employee is satisfied with the access to payroll and personnel records is
adequately controlled where as we need to give more focus on the 3% employees dissatisfied.

55
 l) Does the procedure implemented for pay roll system in an organization ensure staff
leaving the company is cancelled form the pay roll system?

LEVEL OF OPTION NO. OF RESPONDENT % OF RESPONDENT

YES 43 91

NO 4 9

INTERPRETATION:- From the above bar graph among 50 employees 91% of the employee
are satisfied with the procedure implemented for pay roll system in an organization ensure staff
leaving the company is cancelled form the pay roll system whereas we need to give more
focus on the 9% dissatisfied employees.

56
 m)Do the term and condition comply with labour law?

LEVEL OF OPTION NO. OF RESPONENTS % OF RESPONDENT

SATISFIED 44 88

DISSATISFIED 2 4

NEUTRAL 4 8

INTERPRETATION: - From the above bar graph it can be concluded that among 50
employees 88% of the employees are satisfied with the term and condition of pay roll system
of Indigo Airline is comply with labour law whereas we need to give focus more on the 4 %
dissatisfied and find out the reason for the 8% yet not responded.

57
 n) Is the H.R. department complying with provision of the federal grants and other
agreement regarding pay roll budget, pay and fringe benefit?

LEVEL OF OPTION NO. OF RESPONDENT % OF RESPONDENT

YES 45 90

NO 5 10

INTERPRETATION:- From the above bar graph it can be seen that among 50 employees 90%
of the employee are satisfied with the H.R. department complying with provision of the
federal grants and other agreement regarding pay roll budget, pay and fringe benefit whereas
we need to give more focus on the 10% dissatisfied employees

58
o) Reason for satisfaction/dissatisfaction level towards the measurement of complaint
rectification

LEVEL OF OPTION NO. OF RESPONENTS % OF RESPONDENT

SATISFIED 20 40

DISSATISFIED 5 10

NEUTRAL 25 50

p) INTERPRETATION: - From the above bar graph it can be concluded that among 50
employees 40% of the employee is satisfied towards the measurement of complaint
rectification by the pay roll software version whereas we need to give more focus on
5% dissatisfied employees.

59
 q) Reason for satisfaction/dissatisfaction level toward the delivery of the pay roll report to
the Employee.

LEVEL OF OPTION NO. OF RESPONENTS % OF RESPONDENT

SATISFIED 30 60

DISSATISFIED 5 10

NEUTRAL 15 30

INTERPRETATION:- From the above bar graph it can be concluded that among 50
employees 60% of the e employees are satisfied by the delivery provided by pay roll software
system in Indigo Airline and we need to give more focus on 10% employees dissatisfied and
find out the reason for 30% employees who not yet responded.

60
 CHAPTER- 6 FINDINGS & SUGGESTIONS

FINDINGS:-

1) The effectiveness of the existing software system in Indigo Airline .is

measured by using the following variables:-

 Software which is implemented in an organization

 Import of data in software

 Software calculation and complaint rectification

 Accept & implement change

 Flexibility

 Company policies

 Education &Computer Skills

61
 Following are the findings regarding the effectiveness of the existing software in an

Organization:-

a) 80% of the Employees are satisfied by the software and we need to more focus
on the 16% dissatisfied.

b) Among 50 employees 90 % of the employees are satisfied with the software

system helps for future growth that they had improved themselves after the
program. 10 % of the employees are not satisfied with software system helps for
future growth.

c) 76 % of the Employees are satisfied with the calculation and we need to more
focus on 24% of employees dissatisfied.

d) 40% of the Employees are satisfied with the complaint rectification process and
we need to focus on the 5% dissatisfied, whereas 50% did not responded.

e) 96% of the Employees are satisfied with the measurement of team coordination
with software technology team and we need to focus on 4% Employees
dissatisfied.

e) 94% of the Employees are satisfied with the adequacy of the access to the
payroll and personal record

 Following are the findings regarding the effectiveness of existing interface between
role of H.R. and pay roll system in Indigo Airline.

a) 100% of the Employees are satisfied with the keeping of record as per government
norms.

62
b) 92% of the Employees are satisfied the way with which confidentiality maintained
by organization regarding personal detail of Employees and we need to more
focus on the 8% Employees dissatisfied.

c) 64% of the Employees are satisfied with the interaction of H.R. in the pay roll
system and we need to more focus on 36% Employees dissatisfied

d) 91% of the Employees are satisfied with the pay roll system in a organization
which ensure staff leaving the company is cancelled from the pay roll system and
we need to more focus on the 9% Employees dissatisfied.

e) 88% of the Employees are satisfied with the term and condition in the pay roll
system comply with the labor law and we need to more focus on 4% Employees
dissatisfied where as 8% Employees did not responded yet.

f) 90% of the Employees are satisfied with the H.R. department complying with the
provision of the federal grants and other agreement regarding pay roll budget, pay
and fringes benefit and we need to more focus on the 10% of the Employees
dissatisfied.

g) 40% of the Employees are satisfied with the measurement of complaint

rectification and we need to more focus on 10% dissatisfied and 50% employees
did not responded yet.

63
SUGGESTIONS: - Following are the suggestion on the basis of findings

a) In order to improve the Software skills of employees the organization should create
more awareness and to provide feedback regularly to the employees about software
system.

b) Proper training should be given to the employees, in order to increase their

knowledge about the usefulness of the software system.

c) Top management shall continually review the software according to the employees’
requirements, which shall be seen as positive support to the system by the
employees.

d) After software testing, if there are any changes, the employees should be informed
by the software technology team.

e) Delivery of payment to the employee should be well on time by the department.

f) Technological assessment of pay roll software system should be done quarterly by

an expert in an organization

g) Employee’s complaint should be registered properly and immediate action should

be taken by the concerned authority.

h) The interface between the Human resource department and pay roll system should
be widen and more regulatory control should be given to H.R. department to ensure

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 that the organization is concerned toward the welfare of the Employees and thereby
productivity of an organization also enhanced.

i) Confidentiality in an organization regarding Employees personal detail and other

related information which is recorded in pay roll system software should be
maintained and H.R. should take the responsibility for the same.

j) Term and condition in the pay roll system should be amended regularly as per the
labour law by the H.R .the organization.

k) Policies and strategy made by the H.R. department related to the incentive for
performance etc. should be complying with the provision of federal grants and
other agreement regarding pay roll budget, pay and fringes benefit.

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LIMITATION:-

a) The respondents’ attitude did not allow me to get their true feelings.

b) Most of the respondents were hesitant to give their names and that create problem
while preparing database of the respondents.

c) Employees are very limited and duration for the project is also limited which
further add problem in collecting the relevant data related to the pay roll system of
an Indigo Airline

d) The confidentiality of the system created some problem in getting

information as there were some hidden pay roll systems which can only
be access by top management personnel in an organization.

e) Many employees replied guarded answers to some crucial question and

because of this clear opinion of the employees to the questionnaire
provided to them were difficult.

f) Response could not be collected from the total sample selected as some
of the employees did not respond to the particular question due to their
personal reason which act as a constrain while preparing the project on
pay roll management system.

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CONCLUSION
 The study had confirmed that the company is having a good interface level between
account and H.R. department in the organization

 From this study, it is found that majority of the workers were satisfied with Software
Used in an organization.

 To make the software system more efficient and excellent, the company should give
Importance to the employee’s suggestion related to improvement of software used in pay
roll system and thereby makes their software more effective and adequate.

 To create awareness among employees and it shall consider some of the ways and means
Suggested by the employees like addition of parameters such as short cut for calculation
PF, ESI, TAX etc.

 Dependability and conducting regular training program on the software usage for the
employees in an organization

 H.R. department should be given more regulatory power to analyze the proper
Functioning of the pay roll system and thereby widen up the interaction between finance
and H.R. department.

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 I hope that the suggestion given in the report may be implemented in future course for
the benefit of the employees and the company.

 The Company should conduct the similar type of research at regular interval to know
the changing softwares and to know about the latest technology like Baan software

ANNEXURE

a) Bibliography :-
1) DeCenzo, D. A. and Robbins, S. P. Fundamentals of Human
b
Resource Management. John Wiley

2) Dessler Gary (2004). Human Resource Management. Pearson

Education

3) Henderson, Richard,( 2004) Compensation Management:

rewarding performance Princeton Hall of India pvt. Ltd.

b) Website:-

1) www.goindigo.com

2) www.google.com

3) www.saphr.com

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 QUESTIONNAIRE

Q1) Are the policies and procedure relevant to payroll cycle current and in writing?

a) Yes

b) No

c) Comment, if any

Q2) Are these pay roll policies clearly stated and systematically communicated?

a) Yes

b) No

c) Comment, if any

Q3) Do the policies and procedure support internal control?

a) Yes

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 b) No

c) Comment, if any

Q4) Are changes to master pay roll file approved and documented?

a) Yes

b) No

c) Comment, if any

Q5) Are appropriate regulation being followed in regard to payroll withholdings, wages and hours and
other federal, state and local requirement concerning employments?

a) Yes

b) No

c) Comment, if any

Q5) Are the report that provide the details of the pay roll amount charged to the departments account
reviewed and compared to a copy of the approved standard time report by someone who didn’t
prepare the standard report?

a) Yes

b) No

c) Comment, if any

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Q6) Are the salaries and wages are paid by warrant?

a) Yes

b) No

c) Comment, if any

Q7) Are the written authorization from responsible person outside the payroll department required

for:-

a) Name added to and deleted from the payrolls?

a. Yes

b. No

c. Comment, if any

b) Individual wage or salary or rate changes?

a. Yes

b. No

c. Comment, if any

Q8) Are individual employee time and attendance record:

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a) Prepare and sign by each employee for each pay period?

a. Yes

b. No

c. Comment, if any

b) Sufficiently detailed to show time charges to assignment, leave and administration?

a. Yes

b. No

c. Comment, if any

c) Reviewed and signed by each employees supervisor?

a. Yes

b. No

c. Comment, if any

d) Reconciled and with centralized time and attendance record?

a. Yes

b. No

c. Comment, if any

Q9) Has prescribed system been developed in writing to accrue and use vacation, sick leave and
compensatory time

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a) Yes

b) No

c) Comment, if any

Q10) Are procedure adequate for controlling over time wages and supervisory control of overtime?

a) Yes

b) No

c) Comment, if any

Q11) Are the person who performed the following function independent of each other

• approve of hours worked

• preparation of pay roll

• distribution of pay

a) Yes

b) No

c) Comment, if any

Q12 Is the current payroll reconcile to the previous pay roll?

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a) Yes

b) No

c) Comment, if any

Q13) Are the calculation of prepared payrolls rechecked on a test basis?

a) Yes

b) No

c) Comment, if any

Q14) Have procedure been established for year end cut off to ensure that pay roll expenditure are
recorded in the appropriate fiscal year?

a) Yes

b) No

c) Comment, if any.

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