Page 1 of 7

Journal for Studies in Management and Planning

Available at

http://edupediapublications.org/journals/index.php/JSMaP/

ISSN: 2395-0463

Volume 03 Issue 11

October 2017

Available online: http://edupediapublications.org/journals/index.php/JSMaP/ P a g e | 323

A Study on Analysis of Wage and Salary Administration

Mallela Jangaiah,MBA

Department of management (finance)-JNTUH

Abstract: One of the most important and difficult problem of management is that of determining the rate of

monetary compensation i.e., the control of wage and salary levels is of paramount importance. The main objectives

of wage and salary administration are to control the cost, to establish a fair and equitable remuneration to all, to

utilize the wages and salary device as an incentive to greater employee productivity and to maintain a satisfactory

public relations image. In order to achieve objectives the top management or the chief executive officer is

responsible for developing the policies and procedures to administer the wages and salaries. The personal

managers, being a staff officer, place an important role in developing wage and salary policies and procedures. In

some organizations, the work is assigned to a wages and salary committee composed of line and staff executives

which makes the wage and salary surveys, approves the systems of job description and job evolution, recommends

the wage policies and the wage and salaries scheme department wise.

===============================================================

Key words: Human Resource Management Functions, Duties, Activities, and wages and Salary administration

Etc...

Introduction:

Wage & Salary Administration is essentially the

application of a systematic approach to the problem

of ensuring that employees are paid in a logical,

equitable & fair manner.

WAGE:

I.L.O defined the term “wage “as “The remuneration

paid by the employer for the services of hourly, daily,

weekly and fortnightly employees.” It also means

that remuneration paid to production and

maintenance or blue-collar employees. (Blue-collar

workers)

SALARY:

The term “SALARY” is defined as “The

remuneration paid to the clerical and managerial

personnel employed on monthly or annual basis”.

Wage/ Salary can be defined “As the direct

remuneration paid to an employee compensating his

services to an organization”. (White-collar workers).

OBJECTIVES OF THE STUDY

To study and analyze the effectiveness of Wage and

Salary Administration in ZUARI CEMENTS

LIMITED.

To know about the Wage Board Award and Wage

Settlements of Cement Factory.

To study the implementation of Wage and Salary

Act.

To review the policies and agreements of wages and

salary administration in ZUARI CEMENTS

LIMITED.

To identify which factors affecting on Wage and

Salary Administration while giving salaries to

employees.

NEED OF THE STUDY

The major cause of industrial disputes in India is the

determination of fair wage or the increase in existing

wage level.

One of the most important and difficult problem of

management is that of determining the rate of

monetary compensation i.e., the control of wage and

salary levels is of paramount importance.

The main objectives of wage and salary

administration are to control the cost, to establish a

fair and equitable remuneration to all, to utilize the

wages and salary device as an incentive to greater

employee productivity and to maintain a satisfactory

public relations image.

Wage & Salary Administration is essentially the

application of a systematic approach to the problem

of ensuring that employees are paid in a logical,

equitable & fair manner.

The need of the study is to know what are the fair

wages that bring congruence between employees and

employer. It is a study to understand the application

of wages act in organization.

The project will help me to understand the

implementation of labour laws in organization , what

are the procedures adopted by the organization used

Page 2 of 7

Journal for Studies in Management and Planning

Available at

http://edupediapublications.org/journals/index.php/JSMaP/

ISSN: 2395-0463

Volume 03 Issue 11

October 2017

Available online: http://edupediapublications.org/journals/index.php/JSMaP/ P a g e | 324

to implement the acts and in turn help the

organization to identify the loopholes of

implementing these acts.

SCOPE OF THE STUDY

The study enables me to understand the working of a

personnel department in manufacturing units and

especially implementation of wage and salary

administration.

Wage and salary administration is taken up as we can

see the industry are becoming very competitive and

the organizations are trying to gain an edge by

possessing quality people. One of the technique that

is used is by paying attractive salaries.

Zuari Cements is one of the organization which is

established in the protected period. Now it has to

compete with the new organizations who attract the

experience talent by giving them ransom salaries.

This study is taken up to understand the

implementation of wage and salary administration

and suggest if any the techniques to retain the quality

employees.

RESEARCH METHODOLOGY

This chapter includes various tools and techniques

that are used by the investigation that the method

followed in processing the research survey

Methodology includes a systematic way of collecting

the data through sample design, analyzing it,

processing data, interpreting the data for

requirements.

SOURCES OF DATA:

Primary data

Secondary data

Analysis of data

Primary data is collected in order to avoid any

mistakes due to transcription which may arise when

collected through secondary sources. The data is

collected by questionnaire method.

Secondary data is collected from the companies’

reports, manuals and brochures. Through company

records, books, HR reports etc.

SAMPLING PROCEDURE:

The sampling method used was random sampling.

The sampling method was used because of lack of

time and lack of knowledge about the universe. The

sample size was fixed to 100 respondents; the

sampling procedure is response form.

STATISTICAL TOOLS USED: BAR

DIAGRAM, PIE CHART

PERCENTAGE ANALYSIS:

In this research, various percentages are identified in

the analysis and they are presented pictorially by way

of bar diagrams and pie charts in order to have a

better quality.

LIMITAITONS OF THE STUDY

Though adequate care has been taken while doing the

project. This Project still suffers from certain

limitations. They are

The Quality of work life involves a wider range. The

present study examines it from identified and selected

dimensions only.

Time factor is the main constraints for the study

Information is bias while collecting the data from

employees

With the constraint of the information, employees are

hesitating to give the required information and were

not responding well.

Some respondents did not properly respond to the

Questionnaire; thus to eliminate this aspect the

researcher has also conducted some personal

interviews.

The existence of modern civilization without cement

is difficult to imagine in cities and towns. Cement is

synonymous with progress by modern standards. The

progress and size of the cement industry in any

country is taken as the major indicators of the growth

of the economy when the total demand is satisfied by

home production. Cement is an indicator of economic

process, which would mean the development of the

cement industry in the country cement consumption,

ought to be taken as a reliable index of the economic

growth.

In INDIA the first attempt to manufacture cement

was made early in the country when the EUROPEAN

COMPANY in the year 1904 opened a factory in

MADRAS “ SOUTH INDIAN INDUSTRIES

LIMITED “ for the purpose of manufacturing the

cement.\The real beginning of the cement industry

was started by the formation of INDIA CEMENT

LIMITED in 1914 under TATA’S management. The

INDIA CEMENT COMPANY started manufacturing

cement at PORUBANDAR on a large scale.

The total world production of cement is to be around

1600 million tons. Asia is the largest consumer (59

%) followed by EUROPE & AMERICA. The

concentration of Lime Stone deposits in few states

has led to the formation of cement plant clusters at

eight locations in INDIA, BILASPUR, SANTA,

CHANDRAPUR, GULBARGA, NALGONDA,

CHANDERIA, and YERRAGUNTLA &

TADIPATRI.

Three states of INDIA such as M.P, A.P & Rajasthan

contribute 26.7 %, 13.3 %, 11.70 % of the capacity

74 % of the total lime stone reserves are in the states

of M.P, A.P, Karnataka, Rajasthan and Gujarat. The

largest producer in terms of installed capacity is

BIRLA GROUP (above 25 %) followed by

associated cement company (11 %). INDIA is the

world’s fourth largest cement producer after

CHINA,JAPAN, & U.S. in 1996-97 cement

Page 3 of 7

Journal for Studies in Management and Planning

Available at

http://edupediapublications.org/journals/index.php/JSMaP/

ISSN: 2395-0463

Volume 03 Issue 11

October 2017

Available online: http://edupediapublications.org/journals/index.php/JSMaP/ P a g e | 325

manufacture involve heating a mixture of lime stone

and clay, partial fusion occurs and lumps called

clinker are formed.

The clinker is mixed with a little Gypsum to give

Ordinary Portland Cement (OPC), mixing with blast

furnace slag of fly ash fields Portland blast furnace

slag cement (PBSFC), and Portland Pazzolona

Cement(PPC) respectively. The OPC,PPC,&PBSFC

are 70%,18% and 11% respectively, the

manufacturing process has also changed from the in

efficient bed process to the move efficient dry

process 87 % of the total capacity is dry process & 11

% is wet.

What is CEMENT?

Cement is mixture of LIME STONE, CLAY, and

SILICA & GYPSUM. It is fine powder which when

mixed with water sets to a hard mass as a result of

hydration of the constituent’s compounds. It is most

commonly used construction material.

Different Types of CEMENT

There are different verities of cement based on

different consumptions according to specific end

users namely

1. ORDINARY PORTLAND CEMENT ( OPC )

2. PORTLAND PAZZOLONA CEMENT (PPC)

3. PORTLAND BLAST FURNACE SLAG

CEMENT (PBSFC)

4. WHITE CEMENT

5. SPECIALIZED CEMENT

The basic difference lies in the percentage of clinker

used.

ORDINARY PORTLAND CEMENT (OPC)

OPC popularly known as gray cement has 95 %

clinker and 5 % of Gypsum and other materials. It

accounts for 70% of the total consumption. White

cement is a variation of OPC and is used for the

decorative purposes like rendering of walls, flooring

etc., it contains a very low portion of iron oxide.

PORTLAND PAZZOLONA CEMENT (PPC)

PPC has 80 % Clinker, 15 % of Pazzolona and 5% of

Gypsum and accounts for 18% of the total cement

consumption. Pozolona has siliceous and aluminous

materials that do not possess cementing properties

but develop these properties in the presence of water.

It is cheaply manufactured, because it uses fly ash/

burnt clay/coal waste as the main ingredient. It has a

lower heat of hydration, which helps in preventing

cracks where large volumes are being caste.

PORTLAND BLAST FUNACE SLAG CEMENT

(PBSFC)

PBSFC consists of 45 % of Clinker, 50% of blast

furnace slag and 5 % of Gypsum and account for 10

% of the total cement consumed it has a heat of

hydration even lower than PPC and is generally used

in construction of dams and similar massive

constructions.

1) WHITE CEMENTS: Basically it is OPC-clinker

using fuel oil (instead of coal) and with iron oxide

content below 0.4% to ensure whiteness. Special

cooling technique is used. It is used to enhance

aesthetic value, in tiles and for flooring. White

cement is much more expensive than gray cement.

2) SPECIALIZED CEMENT:

OIL WELL CEMENT

Is made from clinker with special additives to

prevent any porosity.

RAPID HARDENING PORTLAND CEMENT:

It is similar to OPC, except that it is ground much

finer, so that on

Casting, the compressible strength increases

rapidly

WATER-PROOF CEMENT:

OPC, with small portion of calcium sterate or non- specifiable oil to impart waterproofing properties.

DIFFERENT TYPES OF PROCESSES:

The wet, semi-dry or dry processes can be used to

produce cement. In the wet/semi-dry process, the raw

material is produced by mixing limestone and water

(called slurry) and blended with soft clay. The

vertical shaft technology employed by mini cement

units, use the wet process where as the rotary kiln

technology uses the modern dry process. The

INDIAN CEMENT INDUSTRY has been

progressively using the wet process with dry process,

which now accounts for 91 % of the installed

capacity.

The major cause of industrial disputes in India is the

determination of fair wage or the increase in existing

wage level. By fair wage, they mean

Adequate wages to meet their basic and somewhat

other needs. When this expectation is not full filled,

discontent is the result that results in fall in

production, productivity efficiency and overall

discipline. The main cause of evolution of trade

unionism in India was the wages. Most of the

collective bargaining agreements are centered on the

monetary compensation especially wages. While

collective bargaining is an essential component of

industrial relations, wage is the central theme of

collective bargaining. Thus, wages can be

considered the prime motivator of industrial relations.

From management point of view, wages

and salaries represent a substantial part of the total

cost which is ever increasing in view of the ability of

the trade union to win upward adjustment. Instances

of reduction in wages are rare and where it is

necessary to reduce the labor cost, it is more and

more through technological changes in resulting in

increasing the productivity of labor. It is not only the