A Study on Compensation Management at Sri Steel Industries Limited, Coimbatore

Abstract

In Today's Dynamic Economy, with increased corporate competition and the job uncertainty that follows hand in hand with mergers and acquisitions, it is becoming ever more important to offer employees a benefits package that they perceive to be of great value. Not only can benefits packages help to retain employees, they can help to attract qualified candidates to add to the workforce.  The sound compensation system is hallmark of organization's success and prosperity.  The success and stability of organization is measured with pay-package it provides to its employees.  Compensation dissatisfaction can lead to absenteeism, turnover, job dissatisfaction, low performance, strikes and grievances. Majority of labor-management disputes relate to compensation.

The objectives of the study are to study the compensation management practices in the organization and also to identify the type of compensation and analyze the satisfaction of workers with regard to compensation. The study assumes the nature of descriptive research. The sample size considered for the study is 50. The respondents are the employees of Sri Steel Industries Limited, Coimbatore. The sampling technique used is Strata sampling. The data is collected from the sample through Questionnaire method. The statistical tools used for analysis are chi-Square and mean score. The mathematical tool used is percentage analysis.  Findings reveal that it is found that most of the employees are satisfied with the compensation policy followed at their organization and they are also satisfied with the non-monetary benefits provided, basic pay, house rent allowance, dearness allowance ,conveyance allowance, medical benefits provided, over time allowance, travelling allowance. The employees are dissatisfied with the leave rules laid. From the chi-square analysis it is observed that there is no relationship between the no of years service and giving equal part in decision making process and it is also observed that there is a significant relationship between the work performance of the employee and the kind of compensation. It is recommended that management can consider the pay revision at least once in every three years and as respondents are dissatisfied with the leave rules of the organization management can laid down the leave rules in consultation with the employees, if possible.