Report on

“An overview on Recruitment

&Compensation Management
System in MIRC Electronics
Ltd, Bhabaneswar”

Submitted by:
DEBASISH KANUNGO
Registration No. - 0906205027

Under the Guidance of

Faculty Guide:
Mrs. Archana Mohanty
B.I.E.T., BHADRAK

1
 CERTIFICATE

This is to certify that Mr. Saumya Ranjan Satapathy,

Registration No: 0906205057 a student of M.B.A. from
Bhadrak Institute of Engineering & Technology, Bhadrak
has done his Dissertation Report on the topic ”An
overview on Recruitment & Compensation
Management System in MIRC Electronics Ltd” at
MIRC Electronics Ltd, Mancheswar , Bhubaneswar from
20th May’ 2011 to 2nd June 2011.

Regional Manager
MIRC Electronics Ltd, Bhubaneswar

2
 Guide Certificate

This is to certify that Mr. SAUMYA RANJAN

SATAPATHY, Regd. No:0906205057, a student of MBA
( Master of Business Administration) from Bhadrak Institute
of Engineering & Technology, Bhadrak has done his
Dissertation Report on the topic “An overview on Recruitment
& Compensation management System in MIRC Electronics
Ltd” at MIRC Electronics Ltd, Bhubaneswar, Odisha from
20th May’2011 to 2nd June 2011.

Mr. Asish Mohanty

Faculty Guide
MBA, BIET

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 Acknowledgement

I sincerely thank my Regional Manager Mr.

Neelamadhab Dash, MIRC Electronics Ltd,
Bhubaneswar for giving me this opportunity to work in
their esteemed organization and helping me for completing
the project in a successful manner.

My regards to my faculty guide Mr. Asish Mohanty

for guiding me and clarifying the doubts in the area of my
project study.
Last but not the least, I’m very thankful to B.I.E.T.
(staff) for helping me in resolving every issue.

Saumya Ranjan Satapathy

Regd. No-0906205057
B.I.E.T
Bhadrak

4
 Declaration

I do hereby declare that this Project Report “An

overview on Recruitment & Compensation
Management System in MIRC Electronics Ltd” is of my
own work. It has been submitted fully or partly to the
B.I.E.T, Bhadrak, Odisha for awarding project marks or any
other.

Place: Bhadrak Signature

Date:

5
Contents:
Page no.
1. Introduction 1
2. Company profile 1
3. Onida today 2
4. HR Spectrum 7
5. Recruitment 9
(i) Requirement requisition 9
(ii) Internal recruitment 11
(iii) External recruitment 12
(iv) Determination of compensation 14
(v) Making an offer 15
(vi) E-recruitment 17
(vii) Campus recruitment 17
(viii) Induction 21
6. Compensation policy 24
7. Compensation structure 25
8. Determination of compensation 29
9. Compensation revision 31
10. Annual compensation revision 32
11. Gratuity/severance pay 33
12. Provident Fund 35
13. Limitation of the study 38
14. Conclusion & recommendation 39
15. Personal learning 41

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16. Bibliography 42

Project Details:

Name: Debasish Kanungo

Project Title: An overview on Recruitment
& Compensation Management
System In MIRC Electronics Ltd,
Bhubaneswar.
Company: MIRC Electronics Ltd(Onida)
Corporate Guide: Mr. Neelamadhab Dash
Duration: 2 weeks
Period: 20th May’ 2011 to 2nd June’ 2011

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 Objective of the study

 To study the main processes of any organization i.e. Recruitment

and Compensation Management system in MIRC Electronics Ltd.

 To study the importance of Human resource in the organization.

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Introduction:

One of the market leaders of the country MIRC Electronics Ltd.

always respect the society and the environment to which it belongs.
It stands for truth, fairness and justice in all their business and
individual dealing. The firm believes on ‘individual dignity’ without
discrimination of hierarchy. They value good people. It’s their
responsibility to create actively and constantly and environment that
supports human resource to grow and flourish. They always repay
the kindness of their internal as well as external people, associates,
community, nation and friends with gratitude.

Company Profile:

ONIDA was started by Mr. G.L Mirchandani and Mr. Vijay

Mansukhani in 1918 in Mumbai. In 1982, ONIDA started assembling
TV sets at their factory in Anheri, Mumbai. With the passage of time,
superior products and the combination of a distinctive voice, a
cutting-edge advertising strategy, and purposeful marketing ensured
that ONIDA became a household name. Over the years ONIDA has
strengthened its reputation for the intelligent and pioneering
application of technologies.

This company was set up sister concern of Monica Electronics Ltd,

New Delhi (set up in 1975), that was manufacturing electronics
watches and push button. Capitalizing on the Asian games in New
Delhi (1982), MIRC started assembling of TV sets. The in house
production of TV sets took of in 1983, with an initial capacity of 20

9
sets per day. By 1985-86, a full fledged plant was running at Kalian
(Mumbai). A new plant was set up at Vasi(Thane) in 1988 for
manufacturing Circuit Knock Down(CKD) sets, and semi Knocked
down (SKD) sets were manufactured at Onida house(Andheri,
Mumbai). The installed capacity of this plant was about 1000 sets per
day till 1992. The period 1992-95 was a high growth period for TV
industry due to liberalization of the manufacturing 600 sets per day.
In 1992 both the plants were merged. By 1995 the two plants at
Onida house at Vasi were shifted to the new plant located on the
outskirt of Mumbai at Wada (Mumbai). With two shift operations,
they started manufacturing 2500 sets per day by 1998. The plant in
Delhi caters to the production requirements for the northern region.
The network of 33 branch offices, 208 customer relation center’s and
41 depots across India ensuring that Onida products are available on
retail shelves.

At Onida, they recognize that they can strengthen their competitive

edge if they produce as much as possible from a given capacity at the
lowest possible cost. They reduce the time it takes for a single color
TV to be produced from 20 second to 12 seconds and increased the
capacity from 0.5 million to 1.2 million sets during the year under
review. MIRC Electronics Ltd was of functional merger between
Monica Electronics Ltd and MIRC Electronics Ltd that happened in
1997. Onida with its sales and marketing office in Dubai reported a
215% expert growth in two years, setting the base an increased
robust international presence. The shipment to the Gulf contribute
almost 65% of Onida’s export revenue, while shipment to the fast
growing east African market (Uganda, Tanzania, Kenya and
Ethiopia) and the SAARC countries accounted for 16% of export
revenue.

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 ONIDA Today

Onida today enjoys a strong equity among consumers marketing it

one of the leading brands in India, their constant endeavor to
introduce products of substance that offer the very best in technology
and the finest design have made ONIDA a leading player in the
electronics and entertainment business today. ONIDA has recently
made a foray in other household appliances including air-conditioner,
washing machine, DVDs plasma and LCD, microwave oven with
stylish design.

Superior quality is the cornerstone of every Onida product, their

rigorous practices and procedures aim at maintaining the highest
quality standards at all times. They believe that a satisfied Onida
consumer is one who takes pride in ownership of their products and
always recommend Onida.

The company is committed to quality and strives for a continuous

improvement through innovation and human development to give the
customer better value for money always. All quality norms followed
are continuously upgraded taking in account changing customer
needs. The TQM movement being practiced has enabled process
innovation. Due emphasis is given to prevention driven activities
through feedback obtained from all over. Product reliability tests are
performed with total compliance to international quality problems
and helped improve customer satisfaction.

Onida recognizes that a vigorously intelligent research initiative

works at two ends: cost reduction through effective process
improvement and value-addition through a sustained ability to put
innovative and customized products in line with customer needs.

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There are 1867 number of employees working in the company. A
team of 75 engineers are at work at the Onida R&D centers in
Mumbai and Delhi developing products at the forefront of
technology meeting customer expectations.

MIRC electronics commands strong brand equity largely owing to

the success of its Onida brand among consumers. The company aims
at technology leadership. The finest design have made the company a
leading player in the electronics and entertainment business today.
For financial year ended March 2007, the company recorded change
in the profit by 3% to US $7.49 million. The net sale of the company
in the financial year ended 2007 recorded an increase of 24% to
US$540.03 million in the financial year ending March 2008 and
March 2009, respectively. The operating profit of the company
during fiscal year 2007 increased by 1% as compared to financial
year 2006 due to increase in net sales by 24%. The company is
planning to set up a manufacturing plant in Uttaranchal for
manufacturing various consumer electronics products. This plant
aims to take advantage of direct and excise tax benefits. Although,
nothing has been finalized yet, it is likely that the expenditure for the
project will be financed through internal accrual.

Some of the innovations that surprised the world:

After having established a reputation for being an intelligent and

pioneering innovator in the application of technologies: we were the
first to launch the Webcruiser TV, the world’s first built-in Internet
TV which offers the benefits of a personal computer and a TV, and
that too, equipped with a a modem, printer port and a cordless
keyboard with it; the first to launch the ultimate in Flat TV
technology with Onida Black with a high picture clarity with DVMC
which ensures uniform scanning at the centre and corners of the TV
screen.

Again, the Onida Twister was the first TV that turned to face the
viewer; we were the first to introduce SRS technology for surround

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sound in Audioport. In 1999, we were the first to introduce the pure
flat TV in the country. The Candy was the first instance of any brand
providing a multi-coloured cabinet option to its customers.

It still wasn’t enough:

The common perception was that we were a focused TV

manufacturer. But then with a knack for spotting a gap in the market,
we realised that there were undiscovered needs and wants in other
categories of consumer durables as well. So we recognized latent
synergies which enabled us to provide customers with a wider range
of products under the ONIDA brand.

Washing Machines:

In 2003-04 we launched the washing machine with Hydrofall

technology which addressed the need of having a more powerful
cleaning system.
Then we realised that people still used their hands for cleaning so we
launched the Triomatic technology which gives the perfect hand
wash. Then we realised that people still keep bending to wash clothes
so we launched a washing machine with a higher and wider vent so
you don’t have to bend.

Air conditioners:

With the soaring summer heat, we saw a need for an AC with

powerful cooling. And in addition due to the raising electricity
consumption, the need for energy efficiency as well. Hence, the
thought of an ultra slim powerful AC with unique APM cooling
technology that cools even at 48oc and is the most energy efficient in
the country which constantly keeps your electricity bills in check.

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DVDs:

With today’s technology boom, there’s a need for a single

multimedia interface as most people now download movies, music
and click pictures through mobiles. Hence the need for USB and card
reader. We also saw that most DVDs are rented hence are scratched.
Which is why, we developed a DVD player with USB and Card
Reader which also play scratched discs effortlessly.

Microwave Ovens:

We saw that people used Microwave primarily to heat food and not
to cook. We also noticed that it’s difficult to cook food in a
microwave. Especially Indian food. So to make cooking simpler we
introduced 123 Indian autocook menus. So all you need to make
Indian dishes is a finger. We later gave it a sleek, black look with a
mirror finish so that it looks stunning too.

LCDs:

With the advent of television’s increasing popularity, there were

many players with a wide foray of our models. To make matters
interesting, there were several foreign players with technology that
seemed futuristic and with a sleek look. However we mainly focused
on picture clarity. So instead of just aping what the offering was, we
asked ourselves, ‘Why not give a complete audio / video experience
at home as well?’ And the result was obvious: Our CTV had up to
3500 Watts of sound. This was our first milestone which others
followed. However, this held true twenty years later as well. LCD
technology came in, in a bigger way. Onida once again took the onus
to remind everyone, that sound is equally important to complete the
viewing experience. So we made our Xaria with more than twice the
sound output of other LCDs in the market.

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Then later on, we got onto its drawing board a pseudo home theatre
with a 5.1 amplifier system and 1000-watt PMPO speakers, thereby
putting a theatre’s soul inside a TVs body.
We took the future by its horns and went on to make India’s first
fully developed indigenised Xaria LCD with more than twice the
sound output of other LCDs in the market.

Mobiles:

With the cellphone market already heavily penetrated, there was a

need for a mobile that could stand apart. So what we sought to do
was make every single Onida Mobile do so much more than what an
ordinary cellphone does. So the moment you turn it on, you would
realise that it’s fully-loaded. But all these features are there in it for a
reason. All of them to help you do better, enjoy better, listen better,
work better or simply talk better.

HR Spectrum:

All of the company, whether individually or collectively as an

organization dream about the future. Some succeed in fulfilling their
dreams, while most keep trying. What characterizes the achievers is a
set of concrete targets/ milestones, backed by a strong will power and
commitment. The following pages speak about the dream at Onida,
along with a blueprint for achieving it. It is their strong belief that all
ONIDIANS will collectively perform to realize this dream and
catapult the organization to the elite league of companies which
grace the hall of fame of the corporate world.

They believe that returns on investment on intellectual capital will

only multiply over time. So we nourish a knowledge & people
centric organization to strengthen profits.

Also we endow with:-

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  A highly conducive and enabling work atmosphere. A well-
designed safe campus.
 The company nurture careers by empowering our people to
innovate in an open, informed and challenging work place. We
encourage the richness of ideas, approaches and points of view
within a work environment conducive to both superior
performance and personal fulfillment.
 They are actively involved in conducting and facilitating need-
based training. This is achieved internally through custom-
based technical and personality development programmes
created in house and through outsourced training. Their
employees are motivated and empowered by structured career
plans that optimize their individual potential. They particularly
emphasize innovative work methods, social interaction and
team spirit across the organization.
 Training is also used as an important skill-enhancer for career
development of the staff members.
 Stress upon lateral thinking across all levels.
 Online induction programme for new joinees.
 A unique variable pay plan linked to company's profitability.

The following project is all about the Company’s process in

Recruitment and compensation system. This project is based on “An
overview on Recruitment & Compe nt System in MIRC Electronics
Ltd”.

Recruitment:

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Recruitment is the process of searching for prospective employees
and stimulating them to apply for the job in the organization.
People are the key differentiators of a successful business strategy
and therefore the organization is committed to attracting, motivating
and retaining candidates of the higher caliber and potential. The
policy on Resourcing is intended to provide the basis for a systematic
and consistent approach to recruitment and selection in order to
attract, select and retain capable and motivated staff, and to ensure
that appointments are made on meet through open competition and a
fair and equitable selection process.
The policy also seeks to integrate the profile of the employees
being recruited with the business objectives as well as seeks to
synchronize their fitment of the culture of the organization.
Given the company’s trust on capability building and
competency development. The Resourcing framework would largely
concentrate on sourcing “competencies” rather than people.
Progressively therefore, all Resourcing efforts shall be Competency
driven strategy (Competency Based Recruitment Model).

(A)Recruitment Modes:
The organization will use any one or combination of the
following modes to attract candidates:

 Internal Recruitment
 DataBank maintained by the HR Department
 Recruitment Advertisements in local and/or overseas
newspapers
 Recruitment Agencies- local and/or overseas
 Executive searching(Headhunting)
 Employee Referrals
 Campus Recruitment
 Re- Employment
 E-Recruitment

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(B)Recruitment Process:

This section describes the steps to be followed while recruiting from

any of the modes described above.

All Recruitment will be initiated ONLY after the Manpower

Requisition Form has been filled and approved by the Divisional
Head in case of Management Staff. HRD seeks approval on the basis
of approved Budgets.

For unbudgeted positions, the Division Head substantiates and

justifies the requirement. Thereafter VP HRD seeks approval of the
CEO.

(i) Recruitment Requisition:

Divisional Head sends the Manpower Requisition Form to the

Human Resource Dept. For each position, a separate MRF needs to
be filled clearly mentioning the number(s) required against each
position, along with due justification on the need for resources.
Basic Requirement:

 For Management position(M1 and above), the minimum

qualification in Post
Graduation(MBA, MCA,CA etc)

 For Staff and Others (A1 and above), the minimum

qualification is Graduation(BA, BCom, BSc etc)

 The date of employee joining the new position will be

informed by HR to payroll for debuting cost to the new
Division.

(ii)Internal Recruitment:

18
The Company views internal resourcing as a mechanism to provide
opportunities to its employees to grow internally and vertically
within the organization.
As such, before filling vacant positions, attempt is made to
ascertain if qualified and viably experienced people are available in
the system through an internal job posting process.

Internal Advertising and Application Procedure:

The HR division through Internal Advertisements displayed on
all the notice board in the Company and also in the “Times of India-
Onida”. The Advertisement will mention the position, Division and
detailed Job Description. The Advertisement will also mention the
contact person in HR for position(s) for receipt of Application.

Employee can apply for the job to the HR division on the specified
format. The application from an employee will be accepted, only if
all the following criteria are met:

 The employee has completed at least one year of service with

the company.
 The employee has completed at least one year in his current
position.
 The employee has been rated at least ‘standard’ in his last
performance appraisal.
 The employee meets the minimum specifications mentioned in
the job description.

A copy of Application will send to the employee’s manager, for

his/her information. The entire employee who meets the minimum
specified criteria can apply directly to HR.

HR will screen the Applications and short-listed applicants will be

intimated.

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Internal Selection Process:
An interview panel will interview all short-listed applicants.
The panel will record all Assessment of all applicants in the
interview Assessment form.
The selection process may also involve psychometric tests for
management positions.
The panel will approve an applicant where after HR will
inform the concerned employee about his/her selection. The
employee’s Division Head will be instantaneously informed.

Other short-listed applicants will be informed accordingly.

The salary of the selected employee will be fixed keeping in mind

the Threshold salary for that grade, the employee’s current salary, the
salary range for the position and the range for other employees in the
same Division with similar job profile.

The selected employees will be given in the offer letter, and if

accepted, the vacancy will be closed.
(iii)External Recruitment :
External Recruitment takes place through any or combination of
following modes.
 Recruitment Advertisement in local and/or Overseas
newspapers.
 Recruitment Agencies – local and/or Overseas.
 Executive Search(For any senior positions only)
 Employee Referrals
 E-recruitment(Posting of vacancies on Onida website and/or
other job sites (viz: www.naukri.com,
www.timesjobindia.com)

The process to be followed in each of the above cases would be

similar with any procedure in the use of Executive Search &
Employee Referrals.

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The Recruitment Processes are as follows :

The Recruiting Manager is consultation with the Division decides in

the amount(s), mode, timeframe etc for each position due for hiring.

Details of the vacant positions will be communicated through the

identified modes & CV’s will be received by HR.

HR in consultation with the Division Head concerned with shortlist

the CV’s on the basis of the Job Description & Person Specifications.

After final screening the shortlisted candidates are contacted directly

by the HR. In case of agency Candidates, the agency is informed of
the shortlist and requires sending invitation for interview to the
shortlisted candidates.
Points to Note:

 Except the HR, no employee of the organization is allowed to

deal with the Manpower Consultants directly. The HR reserves
the right to reject candidates referred by managers if the
candidate belongs to any consultancy.

 This holds true if the controller belongs to the list of

consultants the HR deals with on a regular basis.

(iv)External Selection Process:

All shortlisted Applicants are interviewed by an interview Panel

consisting of a Manager from HR and a Management representative
from the hiring Division. Wherever possible, panel constituted for
hiring positions for Manager and above levels will include a
Management representative from another / user Division. The panel
records its Assessment of the applicants in the Interview Assessment
Form.

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The selection process may also involve an aptitude/skill based test
(generally for certain non-management positions) and psychometric
tests for Management positions. For batch recruitment, Assessment
Centers are designed and used for hiring.

The panel recommends selection to the approving authority and on

obtaining approval, HR sends the offer letter.

Other interviewed applicants are sent Regret letters. Candidates

found suitable for general positions but not for the current position
may be informed of their applications being kept in the Databank.

Normally for each position, a selection list of at least 2 candidates is

interviewed and the second candidate on the list is made the offer if
the first candidate does not accept the offer.

(V)Determination of Compensation:

HR keeping in views the following components:

 Grade in which the position falls.

 Threshold Salary for the grade

 Salary range of the grade with the organization.

 Salaries of comparative position holders in the same division

with similar job profile and experience.

 Criticality and viability and competition.

 Market potential

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(vi)Making an Offer:

 Selected Candidate verbally informed for their selection. Offer

letter are sent along with the relevant pre-joining guidelines.
 The Offer letter indicates the terms and conditions of the
position being offered.
 The Offer is kept open for a period of 1 week and selected
candidates are asked to confirm acceptance within the time
period.

(vii)Reimbursement of Travelling Expenses to

outstation candidates:

In India:

Staff and Officers 3rd AC train/bus fare

Management Staff 3rd AC train/ bus fare

Management Staff (DGM Upper) Air fare – Economy

(C) Reference Check:

Reference are sought from 2 previous employers (wherever

applicable) of the selected candidates using structure format.

In case of Management Staff, reference from 2 employers is sought

and in case of staff and officers from 1 past employer is sought.

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(D)Recruitment Ethics:

 Like all other professional organizations MIRC Electronics Ltd

also believes that Candidate should be recruited in an open, fair
and systematic manner.

 To thin end the persons recruitment whether from HR or any

other Division should ensure that merit of the Candidate should
be the prime criteria for selection.

 As long, respected organization we will, at times, get

recommendation from our business contacts. It is necessary
that all recommended cases are treated at par with other
candidates and final selection is done on the caliber and merit
of the individual.

 So also, any form of bias should be avoided. The selecting

panel should ensure that they are not unduly pressurized by
anyone from within the panel or outside and if so, should
immediately bring it to the notice of their immediate supreme.
The panel should not favor any candidate for personal gain,
monetary or others.

(E)E- Recruitment:

The Company continues to use e-recruitment as a preferred mode of

resourcing.

Vacancies are selectively advertised whether on the Onida website or

on dedicated Recruitment sites (www.naukri.com,
www.timesjobs.com etc).

24
Application received against each vacancy advertised through the e-
recruitment mode are processed in the manner as mentioned for
“External Recruitment”.

(F) Campus Recruitment(Management Trainee):

As a recognized corporate entity in the Indian market, it has been the

company’s endeavour and image to attract talent from reputed
Institutes.

Onida, therefore visits Business Schools and other institutions of

higher learning as it required from time to time in order to attract,
recruit and train bright young management trainee to make them as
future leaders of Company.

General Guidelines:

 The number and profile of such Trainees required is finalized

in the beginning of the year as per the Management Budget.

 The list of campuses to visit is decided by HR in consultation

with the Business Divisions. To build a long-term relationship,
HR raises on a regular basis with identified campuses.

 The minimum qualification for a Management Trainee is Post

Graduate Business Management Degrees or any other
equivalent qualification.

 HR coordinates and is responsible for the entire Requirement

and Training Process of the Trainees. During the 1 st six months
of training, the responsibility for project assignment, mentor
guide allocation rests with HR.

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  Post requirement, the MT’s are on training for a period of six
months. During the period MT’s are assigned to specific
business Divisions. The division assigns specific projects to
them.

 Each MT is appraised periodically after completion of each

project assigned to him/her.

 The MT’s are confirmed six months from the date of joining,
after formal process of confirmation appraisal. The training
period ends on confirmation. All confirmed trainees are
assigned territories as per the needs of the business and the
inclination of the trainees.

Accommodation:

MT’s are provided with a shared accommodation for the period of

induction.

Induction Plan:

All selected Management trainees undergo a common induction

program that is developed and coordinated by HR.

The induction training is for a period of 1 week. It focuses on

familiarizing the trainees with the company history, values,
organizational policies, company businesses and future growth plans.

Training period:

Post induction, all trainees are assigned projects in different

Divisions, whether individually or in groups. These projects are
cross-functional in nature.

26
The projects are 3 months duration.

On completion of project the trainee is appraised as per the MT’s

Appraisal form.
All trainees are required to complete at least 2 and minimum of 4
projects within the training period. The Division, to which the
trainee(s) is/are assigned for the project period, is functionally
responsible for the trainee during the period.

During the six months of training period each Management trainee is

appraised by a Mentor, this mentoring relationship would formally
be period of one year.

Confirmation:

The trainee is absorbed against permanent vacancies.

After six months of training period the Management Trainee makes a

presentation to a panel of senior Executives.
Quality of work, key learning’s, value addition, cross-functional
exposure and Business perspective are some of the critical evaluation
parameters. Apart from these, the appraisal reports and feedback of
the Division Heads is also kept in view in making the confirmation
decision.

The outcome of Management Trainee’s confirmation process is as

follows:

 Confirmation at Sales Executive grade as per the terms and

conditions of the MT scheme in vogue and continue to be
entitled to the dispensations designed for growth of this
covenanted cadre.
 In case MT’s do not make it through the confirmation process,
HR works out options for their disengagements.

27
Joining:

For Administrative convenience and in order to facilitate and

streamline the induction process all employees join either on 1 st or 3rd
Monday of a month.
The selection covers the entitlement and procedures applicable to all
employees upon joining services.

 Selected Candidates have to undergo Medical Examination.

 The examination covers Blood Test, ECG, X-Ray etc.

 The medical report needs to be submitted to HR at the time of

joining.

 Joining Advice: The day candidate joins the Company, HR

sends joining Advice to Payroll/Finance informing them about
the salary details.

 Initial Accommodation: Management employees placed at

locations other than their places of residence are provided with
accommodation minimum 7 days of joining. The period would
be extended to a maximum of 15 days in case an employee is
unable to find an accommodation within the above mentioned
time. The extension will be done on special approvals keeping
in mind the urgency of the requirement. During this stay, the
employee is entitled for House Rent Allowance/Housing
Assistance or both if applicable.

 HRA Advice: Management trainees can take up to 3 months of

their HRA entitlement as advice to pay initial rental expenses.
28
 The advance amount is deducted from salary in equal
installments.

 Family Relocation: Managements employees are paid the

expenses incurred on the family member’s one way travel from
the place of residence to the place of posting.
(Family constitutes wife and one child till 18 years of age)

 Computer/E-mail ID: ISD is advised to activate the employee’s

E-mail ID and set up his computer, wherever applicable

Induction:

The induction policy aims to institutionalize a process by which all

new employees joining MIRC Electronics Ltd are able to view the
organization correctly and uniformly vis-a vis the company’s
products and services, its people, its values, systems and procedures
besides having a better understanding of their role and relationship
both within and outside the organization.

The induction policy also aims to make a new employee feel

welcome in MIRC and ensure his/her smooth transition into the
MIRC team for effective performance of duties.

29
 Levels for Designing Induction Schedule

Level Inductor(s) Remarks

1.The overall objective is to impart an

CEO & organization as cross functional
Level 1 overview

Deputy General Division 2. Visits to Warehouses, sales offices,

Heads Wada factory, cosmic etc
Manager & Above
The overall objective is to impart
Level 2 Department a functional overview
Manager to senior Managers
manager
The overall objective is to impart
Level 3 Department a departmental overview & focus
Executive to Asst. Managers will primarily be on function &
Manager responsibility

The overall objective is to impart

Level 4 Department a job related induction on
Supervisor & Managers departments and interlinkages
junior officer

Note:-In the absence of Divisional Heads, his/her nominee inducts

the new employee(s)
Division Head too indicate to HR convenient day & time to meet
new employee(s) within 72 hours of his/her return to office.

30
Process:

This process covers all the new employees. In order to facilitate and
streamline the process it is proposed that effective immediately, all
new hires will be on the 1st or 3rd Monday of a month.
Thus people will henceforth join in groups and induction will be
carried out in groups. The above will also ease processing of
payroll/leave calculation/administrative arrangements. For the
purpose of inducting of new employees 4 broad categories have been
made and depending upon the category of the new joinee, induction
will be conducted.

Pre-joining:

Once a candidate has accepted an offer along, HR sends his/her the

pre-joining Guidelines.

FORTNIGHT PRIOR:

HR informs ISD/Admin/Respective Division about the date and

number people joining to ensure requisite actions are performed by
each department will the new employees (Computers Organized, e-
mail created, Company Accommodation Arranged, seats allocated in
the division etc).

WEEK PRIOR:

HR sends a mail to the respective Inductor(s) outlining available

timeslot, inductor(s) fill in the time slot most convenient to them.

31
HR books a Conference Room (depending upon the category and
number of employees joining) and intimates the same to the
inductor(s) OR inductor(s) meet the new joinees in their offices.

HR prepares induction kits for all new employees, which will handed
over on the day of joining. All new employees get an induction kit
comprising:

 Welcome letter from VP-HR

 Corporate Brochure
 Employee Handbook
 Induction schedule
 Organization chart
 MIRC Templates list
 Stationery

Up-on Joining:

On the day of joining, new employee(s) assemble in a conference

room. HR welcomes them and gives an overview of company. This
is followed by joining formalities with the representative from the
HR.

The new employee(s) are then escorted to meet the Division Head or
the latter come to meeting room and make presentation about their
division.

As per schedule, new employee(s) then meet the various inductor(s),

visit Ware houses, Sales Offices, Wada Factories, cosmic etc.

Compensation policy:

As a multidivisional organization, our employee compensation

philosophy is market led, performance driven and business specific.

32
The goals of our compensation philosophy are:
1. To attract, motivate and retain top talent by adopting practices
which recognize and reward superior performance.
2. To maintain pay competitiveness with relation to the external
labor market.
3. To maintain internal equity and fairness based on an
employee‘s performance and contribution.

Compensation is structured such that all employees receive the

inherent worth of their jobs through the Basic Salary. Expenses
incurred towards housing and official conveyance are addressed
through the provision of suitable House Rent Allowance and
Conveyance Allowance. These allowances are fixed for each
grade in the organization.
The company recognizes the need of the large expatriate
workforce in the organization and also provides benefits in
addition to the monthly salary.
In order to foster a performance driven culture the company will
increasingly introduce “Variable Compensation” as part of the
total compensation of the employees.
The nature and needs of each of our business division are unique
and therefore customized incentive schemes will be developed
under the aegis of a broad policy guideline to motivate and reward
superior performance.
As our organization practices have to span several industries, in
which the company operates, our compensation practices too will
be aligned to industry specific norms of our various businesses.

Compensation structure

Whilst the basic approach towards compensation structuring is to

support the compensation philosophy of the company, the design
of the compensation structure been kept simpler and

33
 administratively convenient. It is designed to take care of the main
expenses of an individual.
In order to bring uniformity, internal equity and general parity
within jobs of similar responsibility levels, indicative pay ranges
and the concept of threshold salary has been introduced. However,
this is not restrictive and does not take away flexibility to devise
customized compensation packages.
The current compensation structure for executive and non-
executive staff is given below.
Executive Staff
Following are the components of the current executive
compensation structure.

1. Basic salary
2. House Rent Allowances
3. Conveyance Allowances
4. Special Allowance
5. Bonus/ Ex-gratis
6. Provident Fund
7. Medical Allowances
8. Leave Travel Allowances
9. Education Allowance
10. Employee Benevolent Fund

Basic Salary: represents the inherent worth of a job.

House Rent Allowance: is paid to defray rental expenses.

Conveyance Allowance: is paid to defray expenses incurred on

compensating to and fro office as well as for all official travel within
the region of posting.

34
Special Allowance: is a part of Base Pay and is paid Fixed to bring
the total compensation as a level which is higher than the indicative
range/Grade.

Bonus/Ex-gratis: is a statutory provisions paid from the profit

earned by the company.

Provident Fund: is a provision for employee’s future which

may be utilized after retirement.

Medical Allowances: is paid to provide social security to The

Employees and his/her family in the event of Hospitalization.

Leave Travel Allowances: is paid in order to enable the employees

to take necessary rest and recuperation of health.

Education Allowances: is paid to defray expenses incurred on the

education of the children of the employees.

Employee Benevolent Fund: is the amount invested to render

necessary assistance to employees covered by this fund in the event
of their undergoing any major surgical treatment.

Non -Executive Staff :

The following are the compensation of the non-Executive Staff.

1. Basic Salary
2. Special Allowance
3. House Rent Allowance
4. Medical Allowance

35
 5. Education Allowance
6. Conveyance Allowance
7. Local Travel Allowance
8. Provident Fund
9. Employee Benevolent Fund
10. Dearness Allowance

Basic Salary: represents the inherent worth of a job.

House Rent Allowance: is paid to defray rental expenses

Conveyance Allowance: is paid to defray expenses incurred on

compensating to and fro office as well as for all official travel within
the region of posting.

Special Allowance: is a part of Base Pay and is paid fixedly to bring

the total compensation as a level, which Is higher than the indicative
range for that Grade.

Provident Fund: is a provision for employee’s future which may be

utilized after retirement.

Medical Allowances: is paid to provide social security to the

Employees and his/her family in the event of hospitalization.

Leave Travel Allowance: is paid in order to enable the employees to

take necessary rest and recuperation of health.

Dearness Allowances: is a part of Basic Salary given for

neutralizing the inflation.

36
Education Allowances: is paid to defray expenses incurred on the
education of the children of the employees.

Employee Benevolent Fund: is the amount invested to render

necessary assistance to employees covered by this fund in the event
of their undergoing any major surgical treatment.

In addition to the following Benefits are also given:

1. Group Life and Accident Insurance

2. Medical coverage (through medical Insurance)

3. Statutory severance pay is also payable to the employee at the

time of joining the company, as per the Indian labor Law.

Determination of Compensation:

At the time of recruitment, the total compensation of a potential

employee is fixed taking into account the employee’s current
salary(if applicable), Qualification and experience profile vis-à-vis
current employees and the critically of the requirement.

The Total Salary is divided into various components. The following

process is adopted to determine following components.

The grade at which the person is hired determines the Allowances

payable, as Allowances are grade based.

The basic salary of the prospective candidate is fixed as per the

indicative salary range for the grad in which he/she has been hired.

37
In case the Total Salary offered to the candidate is more than the
Basic Salary + HRA + conveyance Allowance (for Executive Staff)
and Basic Salary only (in case of non-Executive Staff), the
differential amount is paid as Special Allowance.

In no case the Basic Salary + Special Allowance of any employee be

less than the Threshold Salary as determined by the grade.

Threshold Salary is the minimum Salary payable at the grade. It is

the sum of Basic Salary + Special Allowance (if any).

Following Table will give some detailed idea about the determination
of compensation.

38
 MIRC ELECTRONICS LIMITED
ANNUAL PERFORMANCE REVIEW & DEVELOPMENT PLAN

Name: __________________ Date of joining: _________________

Date: ____________ Dept: _____________ Location: ______________

Designation: _____________________ Emp. No: __________________

KEY OBJECTIVE & ACCOMPLISHMENT

Key Goals/Targets Result Achieved

Compensation Revision:

Compensation review is undertaken to reward performance of

employees as well as remunerate them for job enhancement.

39
Compensation is revised in either of the following modes:

Revision on Confirmation of Service:

In exceptional circumstances where it has been predetermined and

recorded so at the time of resourcing, an employee’s Compensation
may be revised on the confirmation subject to performance.

Salary Revision will take place only if the Base pay(Basic Salary +
Special allowance)of the employee is less than Median Base pay of
his/her grade.

Following is the process:

 Division Head to send recommendation on the Probationer’s
evaluation Form along with due identification on the need for
such a change.
 HR will study the same and make a comparison with other
employees in the same grade/job profile across divisions and
make a recommendation for the same to the HOD in case of
Non-executive staff and chairperson in case of Executive staff.

 In NO CASE will a promotion be given at the time of

confirmation of service.

Annual Compensation Revision:

Will take place in the month of April and will take into account
performance of last year and market factors.

40
The overall budgeted amount to determine how compensation will be
revised.

The Revision can either be through Increase in basic salary, Increase

in allowances payment of lump-sum performance award or any
combination of these.

Gratuity/Severance Pay:

Gratuity is a statutory provision; its aim is to provide for payment

gratuity in the event of retirement, resignation and death or
disablement due to accident or diseases as per the provisions of The
Payment of Gratuity Act, 1972.

This provision covers all the employees of MIRC Electronics Ltd

who have put in 5 years of continuous service from the time of
joining the company.

Procedure:

Employee shall make a nomination as soon as he completes one year

of regular service in the company.

Eligible employee shall apply within 30 days from the date when
gratuity becomes payable.

An employee can nominate more than one person for distribution of

the amount of gratuity payable to him.

Nomination shall be made only in favor of one or more members of

his immediate family only.

41
If at the time of making a nomination, the employee has no family,
the nomination shall be made in the favor of any person/persons. If
however, the employee later acquires a family, he shall have to make
a fresh nomination in favor of one or more members of his family.

If the nominee decease the employee, the employee has to make a

fast nomination. Nominee of a deceased employee shall apply within
30 days.

Employee shall make every nomination in the prescribed form and

submit it.

Payment of Gratuity :

Gratuity shall be payable to an employee on

 Superannuation
 Retirement
 Resignation
 Death or disablement due to accident or diseases

Quantum of Gratuity:

At the rate of 15 days wages for every completed year of service.

(More than 6 months of service-round off to one year)

Calculation of 15 days wages:

15 days wages = Monthly rate of wages * 15 / 26

42
Provident Fund :

Maintenance of provident fund is statutory requirement. It allows the

company to make provisions for employee’s future which he / she
and his / her family / dependants may utilize after retirement or in
case of premature death.

Process:

 On joining, the employee shall fill up PF nominee form in

duplicate. New employee shall furnish his/her details in the
above mentioned form and shall make a nomination of
person(s) confirming the right to receive the amount in the case
of member’s death.
 HR Dept shall submit the form to PF office.
 After the employee is registered with the PF office, the HR
Dept shall allot a new pf account number to the new employee
within 1 month.

Transfer of Old account:

 Employee can also get their old PF account transferred from

the previous place.
 Employee shall fill up transfer form and submit it to HR Dept.
 The HR Dept shall submit the same in the PF office.
 The transfer of PF Account generally takes 6 months.

43
PF Register :

 The HR Dept shall maintain all the records related to PF of the

employees according to the statutory requirements as per the
act.
 HR Dept shall maintain a “PF Eligibility Register” mentioning
the name, father’s name, Date of birth, Date of joining, PF A/c
no, Date of Eligibility and total contribution of each employee.
 They shall also maintain PF Inspection book.
 All these registers shall be regularly updated.

Deposit of contribution:

 The time office shall ensure the contribution with respect to

each employee (both employee’s and employers) is deposited
in S.B.I on or before 15th of every month.
 Monthly details with respect to each employee shall be
submitted in PF office before 21st of every month.
 Individual statement of contribution and reconciliation
statement shall be submitted in PF office by 30th May.
 Thereafter the HR Dept shall receive back annual slips with
respect to each employee duly certified by the PF office and
deliver the same to the concerned employee.

Withdraw from PF :

44
 Employee shall be allowed to withdraw from his/her PF
accumulations.
 Employee shall give an application to the HR Department in
the prescribed form.
 The HR Department shall forward the application to the
concerned authorities.
 Employee shall be intimated regarding the payment of
the PF to him.
 HR Department shall make the necessary changes in
the PF register.

45
 Limitations of the Study

 Due to time, geographic and monetary

constraints. It couldn’t be able to deeper in to
search.
 This study was related to Bhubaneswar Branch
only.
 Unavailability of a well organized Human
Resource Department in the Branch.

46
 Conclusion and Recommendations

 Recruitment and selection is the vital function of HR

in the organization. Slightest mistake will lead to a
square peg in round hole. In the long run, these people
would be a liability to their organization, becoming
problem children. Instead following a blind
elimination process, focus should be on selecting
people based on the skills and competencies for the
job.

 Internal recruitment process sometimes seems to be

used in unethical manner, because for their
selfishness, people select their dear ones, who may be
not that much competent as compared to the
candidates from outside. And this may hamper the
future organizational growth. So internal recruitment
and selection should be used in controlled way.

 Bhubaneswar branch of MIRC Electronics Ltd

(Onida) have not any developed HR department,
which is making problem to deal with the sales people
as well as the employees working in it. So there
should be a well organized HR dept in the branch
office.
47
 Often it is good idea to look at outsiders when looking
for people at high designation. And also fresh Post
Graduates should be hired, by this fresh blood will
inject into the company.

 In today’s competitive environment, attracting and

retaining skilled personnel is largely dependent upon
how competitive is the compensation package of the
company. Employees, in exchange of their work,
generally expect some appreciation. The outcome of
poorly designed compensation system may distract
from the objective of enhancing organizational
productivity and suggest a decline in the quality of
work life.

 Compensation programmes can help to a greater

extent to align performance with strategy of any
company. So the branch should develop some other
options than present options like Health care plan,
Dental Insurance, Stock option plan, Short term
disability insurance and long term disability insurance
etc.

 The branch should also develop some system of

compensation like, apprising people not only on the
basis of their performance but also on efforts,
seniority, skills held, job difficulty and discretionary
time.

48
 Personal Learning

 Much idea about the company.

 Some of the practiced systems in compensation
management which I didn’t learn in my classes.
 Practical working scenario, selection process,
performance appraisal system in the company.

Bibliography

 www.truthindia.com
 www.mouthshut.com
 www.naaptol.com
 www.igindia.com
 Hackmann, J.R & G.R Oldham,(1980),Work
Redesign, Addison- Wesley Publishing Company,
MA.

49
 Bratton, J. & J. Gold, (1999), Human Resource
Management: Theory and Practice, London:
Macmillan
 2010 Compensation & Benefits Survey of
MIRC
 Electronics Ltd

 Carefully read each question and choose the response that best matches
your organization’s offerings or policies. Please select more than one
answer, if applicable, only where indicated.

 SALARY INCREASES

 1. Projected salary increases for April - May2010:

 Exempt Management, Supervisory or Professional _______%
 Non-exempt Office/Technical _______%
 Hourly Service/Installers _______%

 DEMOGRAPHICS

 2. Total number of employees: Full-time: __________ Part-time:
_________

 3. Total sales revenue for the most recent fiscal year: ______________

 RETIREMENT PLANS

 4. What type of pension/retirement plan do you provide?
 � Defined Benefit Plan (traditional Pension plan)
 � 401(k)
 � Simplified Employee Pension (SEP) Plan
 � Deferred Profit Sharing Plan
 � Money Purchase Benefit Plan
 � Other Defined Contribution Plan _________________
 � No plan provided

 Defined Benefit Plan

 5. Is your plan fully funded:
 􀂀 Yes

50
 􀂀 No

 6. What is the formula for calculating retirement payments for a Defined
Benefit Plan?
 􀂀 Final average pay
 􀂀 Career average pay



 Defined Contribution Plan

 7. What is the contribution based on:
 � Percent of base salary
 � Match, based on employee contribution
 � Discretionary contributions

 8. How soon may employees participate?
 � Immediately
 � After first quarter or 90 days
 � After six months
 � One year
 � More than one year

 LIFE INSURANCE

 9. When do your employees become eligible for life insurance coverage?
 � Immediately
 � After one month
 � After two months
 � After three months
 � After probationary period
 � Life Insurance not offered

 10. What percentage of the premium for life insurance is paid by the
company? _____%

 11. What coverages are included in the life insurance program?
 � Accidental Death/Dismemberment
 � Travel/Accident
 � Insurance continuance beyond retirement
 MEDICAL INSURANCE

 12. When do your employees become eligible for medical insurance
coverage?

51
 � Immediately
 � After one month
 � After two months
 � After three months
 � After probationary period
 � Medical Insurance not provided

 13. What percentage of the medical insurance premium is paid by the
employer?
 _______% For employee’s (single coverage)
 _______% For dependent’s (family coverage)

 14. Which type of accounts are included?
 � In-house health insurance premiums
 � Employee paid components of medical, dental, vision care
 � Dependent care (day care, pre-school, etc.)
 � Other health insurance premiums
 � Vacation buy/sell arrangements
 SICK/PERSONAL LEAVE

 15. How many paid sick/personal days per year do you provide to
employees? ________
 days

 16. Under what conditions do you permit employees to use accrued
sick/personal day pay?
 􀂈 Only used for employee illness/injury
 � Death in family
 � Doctor's appointment
 � Personal business
 � Additional vacation time
 � Dental appointment
 � Ill child
 � Ill spouse
 � Ill parent or in-law
 � Ill domestic partner

 17. Unused sick/personal leave time is:
 � Canceled at the end of the year
 � Paid for at the end of the year
 � Carried over to the following year

 MATERNITY/FAMILY LEAVE


52
 18. Number of weeks provided for paid maternity/disability leave:______
weeks

 19. Number of weeks provided for unpaid maternity/disability leave:
_______ weeks

 20. Do you have a family leave policy?
 􀂀 Yes
 􀂀 No
 If "yes", please indicate number of weeks provided for unpaid family
leave: ________weeks
 HOLIDAYS

 21. What is the total number of paid holidays your organization provides?
(excludes personal days and vacation days) _______days

 22. How many floating holidays do you provide? ______days

 PERSONNEL PRACTICES &POLICIES

 23. What is your organization's compensation policy?
 􀂀 Stay even with area labor market
 􀂀 Stay ahead of area labor market
 􀂀 Stay below area labor market
 􀂀 Stay even with industry pay practices
 􀂀 Stay ahead of industry pay practices
 􀂀 Stay below industry pay practices
 􀂀 No formal policy

 24. What types of salary increases are granted to employees?
 􀂈 Merit
 􀂈 Automatic Progression
 􀂈 General
 􀂈 Cost of Living
 􀂈 Length of Service

 25. What type of incentive systems do you currently have in place?
 � Individual incentives
 � Small group/team incentives
 � Organization specified goal bonus
 � Discretionary bonus
 � Profit sharing
 � Spot awards
 � Key contributor plan

53
 � None


 26. Do you link pay to performance appraisal?
 � Yes
 � No

 27. What type of performance appraisal plan do you use?
 � Management by Objectives (MBO)
 � Forced Choice Questionnaire
 � Narrative Analysis
 � Behaviorally Anchored Rating Scales (BARS)
 � No formal plan

 28. What is your benchmark date for conducting performance
appraisals/salary reviews?
 � Anniversary
 � Fiscal year end
 � Other fixed date

 BENEFITS OVERVIEW

 29. What is the average percent of salary that is allocated to benefits?
(Benefits above base
 salary – include all voluntary and mandated benefits)
 _____________%

 30. Total company payroll expense (wages and benefits) as a percent of
total revenue
 (most recent fiscal year) _____________%

54