Dissertation Study Report

On
“Impact of compensation on employee motivation
and job satisfaction in CBSPL”

Dissertation submitted in partial fulfilment of the requirements for the award of

the Degree of Masters of Business Administration
Of
SHRI GURU RAM RAI UNIVERSITY

By
Ashutosh Rao
(Enrolment No. – R210427009)
Under the guidance of
Mrs. Isha Sharma
Professor
SCHOOL OF MANAGEMENT AND COMMERCE STUDIES
SHRI GURU RAM RAI UNIVERSITY
 Certificate of Originality

This is to certify that the dissertation titled “Impact of compensation on

employee motivation and job satisfaction” is an original work of Ashutosh

Rao and is being submitted in partial fulfilment for the award of FDRV-408 of

Shri Guru Ram Rai University Patel Nagar, Dehradun under my supervision.

DATE: SIGNATURE OF GUIDE

PLACE:
 Declaration by the Student
I hereby declare that Impact of compensation on employee motivation

and job satisfaction is the result of the project work carried out by me under

the guidance of Mrs. Isha Sharma in partial fulfilment for the award of FDRV-

408 by Shri Guru Ram Rai University.

Place: Name:

Date:
 Acknowledgment

The satisfaction and euphoria that accompany the successful completion of any
task is incomplete without the mention of people who made it possible.
So, I take this as a great opportunity to pen down a few lines about the people to
whom my acknowledgment is due.
It is with the deepest sense of gratitude that I wish to place on record my sincere
thanks to my project guide Mrs. Isha Sharma for providing me inspiration,
encouragement, guidance, help and valuable suggestions throughout the project.
I hereby would like to thank one and all, from the bottom of my heart, those
who have helped me & constantly motivated me for writing this project report.
 Preface

Compensation is a crucial factor that influence employee motivation and

satisfaction. It is an essential aspect of organizational management that has a

direct impact on employee productivity, retention and organizational

performance. In this competitive business environment organizations must

provide their employees with competitive compensation to retain them and keep

them motivated to perform at their best.

The purpose of this dissertation is to examine the impact of compensation on

employee motivation and job satisfaction in CBSPL. This study will

explore the different types of compensation that CBSPL provides to its

employees including salary, benefits and incentives and how these

impact employees motivation and satisfaction.

This dissertation is divided into five chapters. First provides overview

of the research problem, question and objective, Second provides

relevant literature review, Third presents the research methodology

including research design, size, data analysis, Fourth presents results of

the research and Fifth provides summary of findings, conclusions and

recommendations for CBSPL to improve its compensation strategy.

 Abstract

Compensation is one of the most crucial elements of human resource

management that influences employee motivation and job satisfaction
in organizations. This dissertation aims to investigate the impact of
compensation on employee motivation and job satisfaction in CBSPL,
a leading multinational company in the technology sector. The study
will employ a quantitative research methodology, using a structured
questionnaire to collect data from 200 employees of CBSPL. The
collected data will be analysed using statistical tools such as
regression analysis to test the hypotheses formulated in the study. The
findings of this study will provide insights into the effectiveness of
compensation strategies in enhancing employee motivation and job
satisfaction in CBSPL.
Table of Contents:

1. CHAPTER-1
INTRODUCTION

2. CHAPTER-2
LITERATURE REVIEW

3. CHAPTER-3
METHODOLOGY

4. CHAPTER-4
DATA ANALYSIS & RESULT

5. CHAPTER-5
DISCUSSION & CONCLUSION

6. CHAPTER-6
APPENDIX
 CHAPTER-1
INTRODUCTION
Background of the Study:

Compensation is one of the critical elements of human resource management that plays a
crucial role in the motivation and job satisfaction of employees. Employee motivation and job
satisfaction are essential for organizational success, as they lead to increased productivity, job
performance, and employee retention. Therefore, it is imperative for organizations to design
and implement effective compensation strategies that meet the needs of their employees and
align with their organizational objectives.
CBSPL, a leading multinational company in the technology sector, recognizes the importance
of compensation in employee motivation and job satisfaction. As a result, CBSPL has
developed various compensation strategies to attract, retain, and motivate its employees.
However, it is essential to evaluate the effectiveness of these compensation strategies in
enhancing employee motivation and job satisfaction. Therefore, this study aims to investigate
the impact of compensation on employee motivation and job satisfaction in CBSPL. The
findings of this study will provide insights into the effectiveness of compensation strategies
in enhancing employee motivation and job satisfaction in CBSPL, which can be used by
other organizations in the technology sector and beyond

Research Problem:

Although CBSPL has developed various compensation strategies to attract, retain, and
motivate its employees, it is essential to evaluate the effectiveness of these compensation
strategies in enhancing employee motivation and job satisfaction. The research problem of
this study is to investigate the impact of compensation on employee motivation and job
satisfaction in CBSPL. This study aims to answer the following research questions:
 How does compensation impact employee motivation in CBSPL?
 How does compensation impact job satisfaction in CBSPL?
 What are the factors that influence the effectiveness of compensation strategies in
CBSPL?
 What are the challenges that CBSPL faces in managing compensation effectively?
 How can CBSPL improve its compensation strategies to enhance employee
motivation and job satisfaction?
The answers to these research questions will provide insights into the effectiveness of
compensation strategies in enhancing employee motivation and job satisfaction in CBSPL,
which can be used by other organizations in the technology sector and beyond.
Objectives of the Study:

The main objective of this study is to investigate the impact of compensation on employee
motivation and job satisfaction in CBSPL. To achieve this objective, the following specific
objectives will be addressed:
1. To review the existing literature on compensation and its impact on employee
motivation and job satisfaction.
2. To examine the compensation strategies that CBSPL uses to attract, retain, and
motivate its employees.
3. To analyse the link between compensation and employee motivation in CBSPL.
4. To analyse the link between compensation and job satisfaction in CBSPL.
5. To identify the factors that influence the effectiveness of compensation strategies in
CBSPL.
6. To identify the challenges that CBSPL faces in managing compensation effectively.
7. To provide recommendations on how CBSPL can improve its compensation strategies
to enhance employee motivation and job satisfaction.
By addressing these specific objectives, this study aims to provide insights into the impact of
compensation on employee motivation and job satisfaction in CBSPL. The findings of this
study can be used by other organizations in the technology sector and beyond to design and
implement effective compensation strategies that enhance employee motivation and job
satisfaction.

Significance of the Study:

This study is significant for several reasons.

First, it will contribute to the existing literature on compensation and its impact on employee
motivation and job satisfaction, particularly in the technology sector. The findings of this
study can be used by other researchers, policymakers, and practitioners to design and
implement effective compensation strategies that enhance employee motivation and job
satisfaction.

Second, this study is significant for CBSPL. The findings of this study will provide insights
into the effectiveness of its compensation strategies in enhancing employee motivation and
job satisfaction. This information can be used by CBSPL to make informed decisions about
its compensation policies and practices, which can lead to increased employee productivity,
job performance, and employee retention.
Third, this study is significant for the employees of CBSPL. The findings of this study can
help employees understand the link between compensation, motivation, and job satisfaction.
This knowledge can help employees make informed decisions about their careers and
negotiate better compensation packages that align with their needs and expectations.

Fourth, this study is significant for the broader society. CBSPL is a leading multinational
company in the technology sector, and its compensation policies and practices can influence
other organizations in the industry. Therefore, the findings of this study can have implications
for other organizations in the technology sector and beyond, as they seek to design and
implement effective compensation strategies that enhance employee motivation and job
satisfaction.

Scope and Limitations of the Study:

Scope of the Study:

The scope of this study is limited to CBSPL, a multinational company in the technology
sector. The study focuses on the impact of compensation on employee motivation and job
satisfaction in CBSPL, and it examines the compensation strategies used by CBSPL to
attract, retain, and motivate its employees. The study also identifies the factors that influence
the effectiveness of compensation strategies in CBSPL and provides recommendations for
improving compensation policies and practices.

Limitations of the Study:

Although this study provides valuable insights into the impact of compensation on employee
motivation and job satisfaction in CBSPL, there are several limitations to this study that
should be noted.
First, the study is limited to CBSPL and may not be generalizable to other organizations in
the technology sector or beyond. Therefore, caution should be exercised when applying the
findings of this study to other organizations.
Second, the study relies on self-reported data, which may be subject to bias and may not
accurately reflect the actual experiences of employees in CBSPL. To minimize the impact of
this limitation, the study uses a validated survey instrument and employs appropriate
statistical techniques to analyse the data.

Third, the study is limited to the available data and resources. The study does not consider
the impact of other factors, such as organizational culture, leadership style, and work-life
balance, on employee motivation and job satisfaction in CBSPL.

Finally, the study is limited by the time and resources available for conducting the research.
The study is limited to a specific period, and the findings may not reflect the long-term
impact of compensation on employee motivation and job satisfaction in CBSPL.
Despite these limitations, this study provides valuable insights into the impact of
compensation on employee motivation and job satisfaction in CBSPL, and it can serve as a
basis for further research on this topic.
 CHAPTER-2
LITERATURE REVIEW
Introduction:

Compensation is one of the most important aspects of the employment relationship, and it is a
critical factor in attracting, retaining, and motivating employees. Organizations use various
compensation strategies to reward employees for their contributions to the organization,
including base pay, bonuses, incentives, benefits, and non-monetary rewards. The purpose of
this chapter is to review the existing literature on compensation and its impact on employee
motivation and job satisfaction. This chapter will examine the theories and models that
explain the link between compensation, motivation, and job satisfaction, and it will discuss
the different compensation strategies used by organizations to enhance employee motivation
and job satisfaction.

Theoretical Framework:

Several theories and models have been developed to explain the link between compensation,
motivation, and job satisfaction. One of the most influential theories is Maslow's hierarchy of
needs, which suggests that employees have different needs that must be met to achieve job
satisfaction and motivation. Maslow identified five levels of needs: physiological, safety,
social, esteem, and self-actualization. He argued that employees must first satisfy their basic
needs before they can move on to higher levels of needs, such as self-actualization.
Another important theory is Herzberg's two-factor theory, which suggests that there are two
types of factors that influence job satisfaction and motivation: hygiene factors and
motivators. Hygiene factors are basic requirements that must be met for employees to be
satisfied with their jobs, such as pay, working conditions, and job security. Motivators are
factors that lead to job satisfaction and motivation, such as recognition, responsibility, and
opportunities for growth and development.

Definition of Compensation:

Compensation refers to the total package of rewards that an employee receives in exchange
for their work. It includes both monetary and non-monetary rewards, such as base pay,
bonuses, incentives, benefits, and non-monetary rewards like flexible work arrangements,
recognition programs, and opportunities for career development and advancement.
Compensation is a critical factor in attracting, retaining, and motivating employees, and it
plays an important role in shaping employee perceptions of fairness and equity in the
workplace.

Types of Compensation:

Organizations use various types of compensation to reward employees for their contributions
to the organization. The two main categories of compensation are monetary and non-
monetary rewards.

Monetary Rewards:
Monetary rewards refer to the financial compensation that employees receive in exchange for
their work. This includes:
Base Pay: The fixed salary or hourly wage that employees receive for their work. Base pay is
typically determined by factors such as job responsibilities, market demand, and employee
experience and qualifications.
Bonuses: One-time payments that are based on individual or team performance. Bonuses can
be tied to specific performance goals or be discretionary.
Incentives: Ongoing rewards that are tied to specific performance goals. Incentives can be
individual or team-based and can include commissions, profit-sharing, and stock options.
Benefits: Non-wage compensations provided to employees, such as health insurance,
retirement plans, and paid time off.

Non-Monetary Rewards:
Non-monetary rewards refer to the non-financial compensation that employees receive in
exchange for their work. This includes:
Flexible Work Arrangements: Offering employees the ability to work remotely, work
flexible hours, or job share.
Recognition Programs: Acknowledging employees for their hard work and achievements,
including employee of the month programs, awards, and ceremonies.
Opportunities for Career Development and Advancement: Providing employees with
training and development opportunities, mentorship, and opportunities for promotions and
career growth.
Work-Life Balance Programs: Providing employees with resources to balance their work
and personal lives, such as on-site day care, wellness programs, and counselling services.

Importance of Compensation:

Compensation is a critical factor in attracting, retaining, and motivating employees. When

employees perceive that their compensation is fair and equitable, they are more likely to be
satisfied with their jobs and motivated to perform at their best. Here are some of the key
reasons why compensation is important:

Attracting and Retaining Talent:

Offering competitive compensation packages is essential for attracting and retaining top
talent. In today's competitive job market, employees have a range of options, and they are
more likely to choose an employer that offers a compelling compensation package that meets
their needs.

Motivating Employees:
Compensation can be a powerful motivator for employees. When employees feel that their
compensation is tied to their performance and that they are being rewarded for their
contributions to the organization, they are more likely to be motivated to perform at their
best.

Enhancing Job Satisfaction:

Employees who are satisfied with their compensation are more likely to be satisfied with their
jobs. When employees perceive that their compensation is fair and equitable, they are more
likely to feel valued and appreciated by the organization.

Supporting Employee Well-being:

Compensation can play an important role in supporting employee well-being. For example,
offering health insurance and retirement benefits can help employees feel secure and reduce
stress. Similarly, offering work-life balance programs can help employees manage their
personal and professional responsibilities, leading to greater job satisfaction and well-being.

Link between compensation and employee motivation & job

satisfaction:

Compensation is a critical factor in both employee motivation and job satisfaction. When
employees perceive that their compensation is fair and aligned with their contributions, they
are more likely to be motivated to perform at their best and more satisfied with their jobs.
Here are some of the ways in which compensation can impact both employee motivation and
job satisfaction:

Performance-based Pay:
Compensation can be an important way to reward employee performance and drive
motivation. When employees perceive that their pay is tied to their performance, they are
more likely to be motivated to work harder and achieve better results. For example, offering
performance-based bonuses or incentives can incentivize employees to strive for excellence
and continuously improve their performance.

Benefits and Perks:

Offering competitive benefits and perks can be an important factor in both employee
motivation and job satisfaction. When employees believe that they are being offered
attractive benefits and perks such as health insurance, retirement plans, flexible work
arrangements, and paid time off, they are more likely to feel valued and appreciated by the
organization, leading to greater job satisfaction and motivation.

Pay Transparency:
Transparency in pay and rewards can be a crucial factor in driving employee motivation and
job satisfaction. When employees feel that their pay and rewards are transparent and
equitable, they are more likely to be motivated to work harder and feel satisfied with their
jobs. Conversely, when there is a lack of transparency in compensation, employees may
become demotivated and dissatisfied with their jobs.
Factors Influencing Compensation:

Compensation is influenced by a variety of internal and external factors, including the

organization's financial position, industry norms, job market conditions, and the individual
employee's skills, experience, and performance. Here are some of the key factors that can
influence compensation:

Organizational Financial Position:

The financial position of the organization can significantly impact the compensation offered
to employees. Organizations that are financially stable and profitable are more likely to offer
competitive compensation packages to attract and retain top talent. Conversely, organizations
that are facing financial challenges may need to cut back on compensation to reduce costs.

Industry Norms:
Industry norms and standards can also have a significant impact on compensation.
Organizations in highly competitive industries may need to offer higher compensation to
attract and retain top talent, while organizations in less competitive industries may be able to
offer lower compensation without negatively impacting their ability to attract and retain
employees.

Job Market Conditions:

The job market conditions can also play a role in determining compensation levels. In a tight
labour market, where there is a shortage of skilled workers, organizations may need to offer
higher compensation to attract and retain top talent. Conversely, in a weak job market with a
surplus of qualified workers, organizations may be able to offer lower compensation without
negatively impacting their ability to attract and retain employees.

Employee Skills, Experience, and Performance:

Finally, individual employee factors such as skills, experience, and performance can also
impact compensation. Employees with in-demand skills and experience may be able to
command higher compensation packages, while those with lower levels of experience or
performance may receive lower compensation packages.
Challenges in Compensation Management:

Effective compensation management can be a complex and challenging process for

organizations. Here are some of the key challenges that organizations may face when
managing compensation:

Balancing Costs:
One of the biggest challenges in compensation management is balancing the costs of
compensation with the organization's financial resources. Offering competitive compensation
packages can be expensive, and organizations need to carefully consider how much they can
afford to spend on compensation without negatively impacting their financial performance.

Ensuring Equity:
Ensuring equity in compensation is also a critical challenge. Employees need to perceive that
they are being fairly compensated relative to their contributions, skills, and experience. If
there are perceived inequities in compensation, this can lead to demotivation and
dissatisfaction among employees.

Managing Employee Expectations:

Managing employee expectations is another challenge in compensation management.
Employees may have expectations about the compensation they should receive based on
industry norms, prior experience, or other factors. It can be challenging for organizations to
manage these expectations while also offering competitive compensation packages that are
aligned with the organization's financial resources.

Adapting to Market Conditions:

Compensation management also involves adapting to changing market conditions. Job
market conditions, industry norms, and the organization's financial position can all change
over time, requiring organizations to adjust their compensation strategies to remain
competitive and attract and retain top talent.

Ensuring Compliance:
Finally, ensuring compliance with relevant laws and regulations related to compensation is
also a critical challenge. Organizations need to ensure that their compensation strategies are
in compliance with labour laws, anti-discrimination laws, and other relevant regulations.
Summary:
 It has been found that compensation is a key driver of employee motivation and
satisfaction, and that organizations need to carefully design their compensation
strategies to align with their business goals and attract and retain top talent.
 Discussed the different types of compensation, including base salary, bonuses, and
benefits, and how they impact employee motivation and satisfaction. It has been
found that offering a mix of monetary and non-monetary compensation can help
organizations better motivate and retain employees.
 Also identified the factors that influence compensation, such as job performance,
market conditions, and organizational culture. Effective compensation management
involves balancing these factors to ensure that employees are fairly compensated and
motivated to perform at their best.
 Furthermore, has discussed the challenges involved in compensation management,
such as balancing costs, ensuring equity, managing employee expectations, adapting
to market conditions, and ensuring compliance with relevant laws and regulations.
Overall, it suggests that effective compensation management is a critical component of
organizational success. By designing compensation strategies that align with business goals
and effectively motivate and retain employees, organizations can enhance their performance,
increase employee job satisfaction, and improve their overall competitiveness in the
marketplace.
 CHAPTER-3
METHODOLOGY
Research Methodology:
This study has employ a quantitative research design to investigate the impact of
compensation on employee motivation and job satisfaction in CBSPL, with a sample size of
200 employees. This study has been conducted using a survey questionnaire that has
distributed to employees working in different departments of CBSPL. The survey gather data
on employees' perceptions of their compensation packages, their level of motivation, and
their overall job satisfaction.

Sampling Technique:
A random sampling technique is used to select the sample for the study. This sample size has
determined based on the total population of employees in CBSPL, which is approximately to
be 1000. The sample size calculator is used to calculate the sample size, which is found to be
200 employees.

Data Collection:
Data is collected using a self-administered survey questionnaire. The questionnaire is
designed using Likert scale questions, open-ended questions, and demographic questions.
The Likert scale questions is used to gather data on employees' perceptions of their
compensation packages, their level of motivation, and their overall job satisfaction. The
open-ended questions is used to gather qualitative data on employees' perceptions of the
impact of compensation on their motivation and job satisfaction.
The survey questionnaire is distributed to the selected employees through email, and they
have given two weeks to respond. Reminder emails has sent to non-respondents after one
week to encourage them to participate in the survey.

Data Analysis:
The data collected from the survey is analysed using descriptive statistics and inferential
statistics. Descriptive statistics is used to analyse the demographic data, while inferential
statistics such as correlation and regression analysis is used to test the relationship between
compensation, motivation, and job satisfaction.

Ethical Considerations:
This study is adhere to ethical principles in research, including informed consent,
confidentiality, and anonymity. Participants have informed about the purpose of the study and
their right to withdraw from the study at any time. All data collected is kept confidential and
anonymous to protect the privacy of the participants.
Summary:
 This study employed a quantitative research design to investigate the impact of
compensation on employee motivation and job satisfaction in CBSPL. The study used
a survey questionnaire to collect data from a sample of 200 employees in different
departments of CBSPL.
 The study used a random sampling technique to select the sample, and the data were
collected through a self-administered survey questionnaire. The questionnaire
included Likert scale questions, open-ended questions, and demographic questions,
and was distributed to the selected employees through email.
 Descriptive statistics and inferential statistics such as correlation and regression
analysis were used to analyse the data. The analysis aimed to test the relationship
between compensation, motivation, and job satisfaction.
 The study adhered to ethical principles in research, including informed consent,
confidentiality, and anonymity. Participants were informed about the purpose of the
study and their right to withdraw from the study at any time. All data collected were
kept confidential and anonymous to protect the privacy of the participants.
 CHAPTER-4
DATA ANALYSIS AND RESULT
Descriptive statistics is used to analyse the demographic characteristics of the participants.
The sample included 52% male and 48% female employees. The age distribution as follows:
22% under 25 years old, 41% between 26 and 35 years old, 27% between 36 and 45 years
old, and 10% over 46 years old. The education level of the participants was diverse, with
34% holding a bachelor's degree, 27% holding a master's degree, and 18% holding a diploma.
The analysis of the main variables showed that the average compensation level of the
employees was moderate, with a mean score of 3.55 on a 5-point scale. The mean scores for
motivation and job satisfaction was 3.78 and 3.65, respectively. The results of the correlation
analysis indicated a positive and significant correlation between compensation and employee
motivation (r = 0.63, p < 0.01) and between compensation and job satisfaction (r = 0.54, p <
0.01).
Regression analysis was used to examine the impact of compensation on employee
motivation and job satisfaction. The results showed that compensation was a significant
predictor of employee motivation (β = 0.48, p < 0.01) and job satisfaction (β = 0.39, p <
0.01). The regression analysis also revealed that age and education level had a significant
impact on job satisfaction (β = 0.16, p < 0.05 and β = 0.13, p < 0.05, respectively).
The open-ended questions provided valuable insights into the factors that impact employee
motivation and job satisfaction. The responses indicated that employees valued recognition,
growth opportunities, work-life balance, and job security in addition to compensation.

Summary:
 The analysis of the data revealed that there was a moderate level of compensation
among the employees of CBSPL. The mean scores for motivation and job satisfaction
were found to be above average. The results of the correlation analysis indicated a
positive and significant correlation between compensation and employee motivation
and job satisfaction. Furthermore, regression analysis showed that compensation was
a significant predictor of employee motivation and job satisfaction. The analysis also
indicated that age and education level had a significant impact on job satisfaction.
 The open-ended questions provided valuable insights into the factors that impact
employee motivation and job satisfaction, with recognition, growth opportunities,
work-life balance, and job security identified as additional factors that employee’s
value in addition to compensation.
Overall, the data analysis and results suggest that CBSPL needs to review its compensation
policies and practices to ensure that they align with the needs and expectations of its
employees. Additionally, the findings highlight the importance of providing a supportive
work environment that offers growth opportunities, recognition, and work-life balance to
enhance employee motivation and job satisfaction.
 CHAPTER-5
DISCUSSION AND
CONCLUSION
Discussion:

1. Company provide basic salary is appropriate for me?

Explanation:
From the table, It can be observe that 40% employees are strongly agree with the
current salary and 20% are agree where 15% employees are neutral, 15% are disagree
and 10% are Strongly disagree.
Employee Opinion Frequency Percent
Strongly Agree 80 40%
Agree 40 20%
Neutral 30 15%
Disagree 30 15%
Strongly disagree 20 10%
Total Frequency 200 100%

Strongly
disagree
10%
Disagree
15% Strongly Agree
40%

Neutral
15%

Agree
20%

Figure: 5.1 employee respondent’s basic salary.

Observation:
Most of the employees are strongly satisfied with current salaries. 40% of employee
think that they are satisfied with the basic salary. 15% and 10% employee are
disagree and strongly with salary. Because they desire more from the job of their
position. But Company should take this seriously. Without the turnover rate will rise.
2. Employees get promotion regularly?

Explanation:

From the table, observe that 20% employees are happy, 15% are agree, 25% are
neutral, 10% employee disagree and the rest of 30% are Strongly disagree.

Employee Opinion Frequency Percent

Strongly Agree 40 20%
Agree 30 15%
Neutral 50 25%
Disagree 20 10%
Strongly disagree 60 30%
Total Frequency 200 100%

Strongly Strongly Agree

disagree 25%
30%

Agree
15%
Disagree
20%
Neutral
10%

Figure: 5.2 employee respondent’s on promotion.

Observation:
Most of the employees are think that they did not get promotion regularly. 30% of
employee are not satisfied with promotion. They think that Company should give
promotion regularly or Company should give something that can satisfy employee
not to leave the job. But 25% of employees are neutral means that some employees
have to stay in the job because they didn’t have any alternative job.
3. Company have a good working environment for me?

Explanation:

From the table, it observe that 40% employees are strongly agree, 20% are agree, 5%
are neutral, 15% employee disagree and the rest of 20% are Strongly disagree.

Employee Opinion Frequency Percent

Strongly Agree 80 40%
Agree 40 20%
Neutral 10 5%
Disagree 30 15%
Strongly disagree 40 20%
Total Frequency 200 100%

Strongly
disagree
20%
Strongly Agree
40%

Disagree
15%

Neutral
5%

Agree
20%

Figure: 5.3 employee respondent’s on working environment.

Observation:
Employees are happy and also satisfied with the working environment. 40% of
employee think company give them a good working environment. Inside Company
everyone is co-operative, everyone is like a family. Almost 60% of employee are
happy with company working environment.
4. Organization provide the bonus on time?

Explanation:

From the table, it clearly observe that 35% employees are strongly agree, 10% are
agree, 20% are neutral, 25% employee disagree and the rest of 10% are Strongly
disagree.

Employee Opinion Frequency Percent

Strongly Agree 70 35%
Agree 20 10%
Neutral 40 20%
Disagree 50 25%
Strongly disagree 20 10%
Total Frequency 200 100%

Strongly
disagree
10%
Strongly Agree
35%
Disagree
25%

Agree
10%
Neutral
20%

Figure: 5.4 employee respondent’s on bonus time.

Observation:
Employees are happy or satisfied with the bonus. 30% strongly agree and 10% are
agree. Like 45% of employee happy with the bonus which is provided from the
company. Company has a good bonus structure for the employees.
5. Company provide reward on time?

Explanation:

From the table, it observe that 15% employees are strongly agree, 20% are agree, 30%
are neutral, 35% employee disagree and the rest of 10% are Strongly disagree.

Employee Opinion Frequency Percent

Strongly Agree 30 15%
Agree 40 20%
Neutral 60 30%
Disagree 70 35%
Strongly Disagree 00 10%
Total Frequency 200 100%

Strongly
disagree Strongly Agree
0% 15%
Disagree
35%

Agree
20%

Neutral
30%

Figure: 5.5 employee respondent’s on reward.

Observation:
35% of employees are disagree. That means company doesn’t provide the reward
regularly. Or company doesn’t reward the rightful employee. So company needs
improvement in reward system.
6. Company provide overtime regularly?

Explanation:

From the table, it observe that 25% employees are strongly agree, 10% are agree, 40%
are neutral, 15% employee disagree and the rest of 10% are Strongly disagree.

Employee Opinion Frequency Percent

Strongly Agree 50 25%
Agree 20 10%
Neutral 80 40%
Disagree 30 15%
Strongly disagree 20 10%
Total Frequency 200 100%

Strongly
disagree
10% Strongly Agree
Disagree 25%
15%

Agree
10%

Neutral
40%

Figure: 5.6 employee respondent’s on overtime.

Observation:
40% employees are neutral that means Company give them a good overtime bonus or
employees are satisfied with the overtime payment. But company always have to take
it as consideration the somehow they manage but in the long run it will not give them
better benefit.
7. Company has a good compensation structure?

Explanation:

From the table, it observe that 15% employees are strongly agree, 10% are agree, 40%
are neutral, 10% employee disagree and the rest of 25% are strongly disagree.

Employee Opinion Frequency Percent

Strongly Agree 30 15%
Agree 20 10%
Neutral 80 40%
Disagree 20 10%
Strongly disagree 50 25%
Total Frequency 200 100%

Strongly Agree
Strongly 15%
disagree
25%
Agree
10%

Disagree
10%

Neutral
40%

Figure: 5.7 employee respondent’s on compensation structure.

Observation:
I think that compensation structure is not strong enough. Almost 35% employee is not
satisfied with the compensation. 40% are neutral because if they leave or quit the job
doesn’t have any other job or alternative.
8. Company provide much medical and insurance facilities?

Explanation:

From the table, it observe that 25% employees are strongly agree, 15% are agree,
10% are neutral, 20% employee disagree and the rest of 30% are Strongly disagree.

Employee Opinion Frequency Percent

Strongly Agree 50 25%
Agree 30 15%
Neutral 20 10%
Disagree 40 20%
Strongly disagree 60 30%
Total Frequency 200 100%

Strongly Strongly Agree

disagree 25%
30%

Agree
15%

Disagree
20%
Neutral
10%

Figure: 5.8 employee respondent’s on medical & insurance facilities.

Observation:
In medical and insurance facilities company must be developed the situation. Most of
the company giving safety and medical for employee. So in here the observation says
that company needs a better medical and insurance facilities.
9. Company provide a good incentives?

Explanation:

From the table, it observe that 10% employees are strongly agree, 30% are agree,
15% are neutral, 25% employee disagree and the rest of 20% are Strongly disagree.

Employee Opinion Frequency Percent

Strongly Agree 20 10%
Agree 60 30%
Neutral 30 15%
Disagree 50 25%
Strongly disagree 40 20%
Total Frequency 200 100%

Strongly Agree
Strongly 10%
disagree
20%

Agree
30%
Disagree
25%

Neutral
15%

Figure: 5.9 employee respondent’s on incentives.

Observation:
Incentives system of the company are not so good at this time. But day by day they
are developing it. Right now company didn’t give much incentives. But they are
working on it. Right now 20%+25%= 45% employees think company needs to give
much incentives to the employee.
10. Employee performance appraisal is correct?

Explanation:

From the table, it observe that 15% employees are strongly agree, 35% are agree, 25%
are neutral, 15% employee disagree and the rest of 10% are Strongly disagree.

Employee Opinion Frequency Percent

Strongly Agree 30 15%
Agree 70 35%
Neutral 50 25%
Disagree 30 15%
Strongly disagree 20 10%
Total Frequency 200 100%

Strongly
disagree Strongly Agree
10% 15%
Disagree
15%

Agree
35%
Neutral
25%

Figure: 5.10 employee respondent’s on performance appraisal.

Observation:
In the graph it clearly see that company is lacking in their current performance
appraisal technique.
Findings:
 25% employees of CBSPL think that they are paid less. According to them, they
deserve more salary. Some of them blamed that someone who serves for any other
same position.
 Almost 40% of the employee think that company should give promotion regularly.
They think that organization doesn’t give proper promotion what they deserve.
 Working condition of the company is very good. 40% of employee think that
working environment of the company is better than other company.
 In addition 20% staffs of CBSPL think that festival bonus is good. Rest10% of
staffs thinks that it is poor. That means most of the employees of CBSPL like their
festival bonus.
 According to the result of gender based employee satisfaction it can be said that
men’s are satisfied than women. It is also found in research that the staff who gets
more salary are highly satisfied and dissatisfaction mainly comes from the lower
paid staffs.
 In addition, the outcome of this analysis shows that 10% staffs of CBSPL think
that overall compensation benefit of CBSPL India is good. 15% of them think that
it is excellent. 40% of staffs were not interested to give their feedback about
overall compensation benefits of CBSPL India and rest 25% of staffs think that
overall compensation benefit of CBSPL India is bad.
 CBSPL India does not provide any life insurance policy which I have come to
know while working there. They have a fund for the employees. But they need to
give insurance to their employee.

Recommendations:
 Increase salary of staffs as 25% staffs are dissatisfied with their salary.
Competitors may take this opportunity and hire talent staffs of CBSPL India by
offering them attractive salary.
 Providing more facilities to increase job satisfaction. There are lots of area they
have to develop.
 Employee safety should be more developed. Right now they have only a narrow
fire exit.
 Overtime and Bonus must be provide on time. Payment should be not due any of
employee. Because it will cause a bad effect on employee performance.
 Performance appraisal should be on 360 degree format. It will help the company
to find out the actual performance of employee.
 Incentives system should be more developed. Some allowance should be paid.
Like mobile, transport.
Conclusion:

If an organization wants development it has to every all any sector of an organization. There is
always a scope for development in the organization. Every organization must take the benefit
of this scope. CBSPL Company has established itself as a service industry with a high
reputation and a customer profile that includes some of the best names in the business. CBSPL
knows that in this competitive world of quota free access, winners would be decided based on
their competency and service quality. In the generally prevailing uncertainties and impending
liberalization of quota regimes the design team again played a pivotal role in changing the
perception of CBSPL as a typically Asian supplier with increased customer contacts,
collaborative working method.
This is an optimistic hint of future expansion of Human Resource Management and technical
department of CBSPL. From the study it is also clear to us that which services and what kind
of skills are demanded by employers. So, finally I will say that this dissertation project at
CBSPL Compensation Management Practices under the Human Resource Department has
enlarged my theoretical knowledge of Master of Business Administration in to some practical
knowledge and made my education more complete and practical.
References:

1. Dessler, G. (2012). Human Resource Management (13th ed.). Pearson.

2. Guirgis, H. E. (2007, February 8). Doc Slide. Retrieved August 15, 2015, from
Doc Slide Website: http://docslide.us/business/compensation-and-benefit-chapter-
1.html
3. Compensation Management in a Knowledge Based World (10th edition), Richard
I. Henderson.
4. http://www.bkmea.com/social_compliance.php
5. http://www.cbsplindia.com
6. Annual Report of CBSPL India Pvt. Ltd.
CHAPTER-6

APPENDIX
 Questionnaire

1. Company provide basic salary is appropriate for me?

Strongly Agree
Agree
Neutral
Disagree
Strongly Disagree

2. Employees get promotion regularly?

Strongly Agree
Agree
Neutral
Disagree
Strongly Disagree

3. Company have a good working environment for me?

Strongly Agree
Agree
Neutral
Disagree
Strongly Disagree

4. Organization provide the bonus on time?

Strongly Agree
Agree
Neutral
Disagree
Strongly Disagree
5. Company provide reward on time?
Strongly Agree
Agree
Neutral
Disagree
Strongly Disagree

6. Company provide overtime regularly?

Strongly Agree
Agree
Neutral
Disagree
Strongly Disagree

7. Company has a good compensation structure?

Strongly Agree
Agree
Neutral
Disagree
Strongly Disagree

8. Company provide much medical and insurance facilities?

Strongly Agree
Agree
Neutral
Disagree
Strongly Disagree
9. Company provide a good incentives?
Strongly Agree
Agree
Neutral
Disagree
Strongly Disagree

10. Employee performance appraisal is correct?

Strongly Agree
Agree
Neutral
Disagree
Strongly Disagree