Remuneration System in University Organisation of Madhya Pradesh:

An Overview

Dr. Usha Tiwari

Faculty, MBA (HRD), APS University, Rewa (M.P.) 486003

*Corresponding Author E-mail:skandbt@gmail.com

 

Abstract:

One of the most important factors in human resource management is compensation management. The soundness of compensation management depends upon the amount of wage or salary paid to an employee for a fair days work. Despite the conclusions of morale studies, wage or salary is significant to most of the employees as it constitutes a major share of their income. In this research paper, an attempt has been made to assess the policies concerned with the remuneration system and satisfaction status of non-teaching staff of APS University Rewa. The hypothesis of this research works the prevailing policies and practices of remuneration of the university are congenial and there is high degree of satisfaction in relation to salary. Result indicates that the satisfaction score in relation to remuneration appears average for group A, very good for group B, and extremely poor for group C. The overall score of the university are extremely poor/ unsatisfactory. Therefore, the hypothesis stands rejected.

 

Key words: University, Non-teaching, Remuneration, Satisfaction.

 

 


INTRODUCTION:

One of the most important factors in human resource management is compensation management. The soundness of compensation management depends upon the amount of wage or salary paid to an employee for a fair days work. Despite the conclusions of morale studies, wage or salary is significant to most of the employees as it constitutes a major share of their income (Pigros and Myers, 1977). "Pay in one form or another is certainly one of the main springs of motivation in our society" (Mason et. al. 1963). Salary provides more than a means of satisfying the physical needs it provides recognition, a sense of accomplishment and determines social status. Hence, formulation and administration of sound remuneration policy to attract and retain right personnel in right position is the prime responsibility of any Organization.

 

Management has to formulate and administer the salary policies on sound lines as (i) most of the employees' satisfaction and work performance are based on pay; (ii) internal inequalities in pay are more serious to certain employees; (iii) employees compare their pay with that of others; (iv) employees react only to gross external inequities;

 

(v) Employees comparisons of pay are uninfluenced by levels of aspirations and pay history; and (vi) employees compare the pay of different employee with their skill, knowledge, performance etc (Balcher, 1964).  In this research paper, an attempt has been made to assess the policies concerned with the remuneration system and satisfaction status of non-teaching staff of APS University Rewa (M.P.).

 

OBJECTIVES:

1To assess the policies concerned with the remuneration system of non-teaching staff of APS University Rewa.

2.To evaluate the employees satisfaction relation to remuneration.

 

REVIEW AND LITERATURE:

Kharbanda (1986), and Appa Rao (1988) confirm that money as an incentive can influence the job behaviour of employees and will motivate the workers. The money provides a symbolic value as a measure of recognition for accomplishment, status and place in the society, but the effect may be negative, when (i) The material needs are minor in his need hierarchy, (ii) The individual feels that he is unfairly rewarded for his efforts, and (iii) peripheral factors are not satisfied. The target organization reflects a poor image of reward and welfare system. Therefore, a reward system capable of identifying good performance for non performance must be designed. Budhwar (1996) in his study has specified that 70.1 % organsiations offer incentive schemes for their employees. In 48.1 % of the Organizations pay and benefits are attached to the performance, skills or competencies of the employees.

 

The primary economic reward is sometimes also known as compensation or remuneration and paid in the form of wages or salaries. The non-wage financial payments are known as fringe-benefits or supplemental pay (Kumar, 2000). Many times the wages are decided on cognitive factors stitch as education, seniority and length of service. Thus, the compensation is paid according to who a person is rather than what a person does. But it is difficult to measure work performance for equity based payment i.e. pay for performance.

 

Ghazanfar et.al. (2011) examined the relationship between satisfaction with compensation and work motivation. The main finding of study was: satisfaction and compensation can be factor of work motivation, flexible pay is not a motivation factor in the job with the employee holding; benefits do not have a significant impact on work motivation. Suresh Kumar and Aparna (2012) showed that IT professionals are very much dissatisfied with fringe benefits, nature of work and contingent reward, while  moderately satisfied with pay promotion and supervision factors.

 

Malik (2013) Showed those ad-hoc basic faculties are highly dissatisfied regarding salary/leave benefits, job security, research support and facilities, career advancement. Sharma (2013) reveled that a significant difference exists in the motivation level of the employee with regards to various compensation components. Basic salary, short and long term incentives , benefits and services.

 

METHODOLOGY:

This study is confined only to non-teaching staff of APS University Rewa (M.P.). The study is based on primary and secondary data. The source of Primary data is the responses of the employees obtained through questionnaire. The technique of interview and discussion has also been used as one of the diagnostic tool. Sources of secondary data are based on various Annual reports, Financial estimates, Audit Reports, University Calendar, University Regulations, Statutes, Ordinance, records, file and other published materials in the A.P.S. University Rewa. An analysis of employee’s satisfaction in relation to remuneration, questionnaires distributed various cadres of group A, B and C employees that are administration, supervisor and Assistant. The scoring has been obtained on a five point scale. In order to make the interpretation easier the mean score were converted into percentage score using the formula of Rao (1991) i.e.

 

Percentage score = (Mean Score-1)´ 25

The degree of dimension have been divided into very good, Good, Average, Poor, Extremely poor.

Remuneration System in A.P.S. University, Rewa (M.P.)

1. Pay Fixation:

The pay fixation of the post of Registrar, under non-teaching staff of M.P. State University services, is decided by U.G.C. while that of the other officers and employees of the university is decided as per M.P. Govt. Pay Commission. At present, the pay scale of both the categories of the staff is as per the table given below.

 

Table 1: The pay scales of employees of Groups A, B and C in A.P.S.  University, Rewa.

S.No

Designation

Scale of Pay Rs.

HRA Rs.

 

Registrar

 

Deputy Registrar/Finance Officer

 

Assistant Registrar / Secretary to V.C.

37400-67000+GP10000 (UGC)

15600-39100+GP7600

 

 

15600-39100 +GP 6600

5% of Basic

 


5% of Basic

 

5% of Basic

 

Section Officer / PA to V.C./ PA/CA to Registrar

Superintendent

Asstt. Superintendent / Stenographer

Senior Assistant

 

Cashier

 

Assistant / Typist

 

Assistant (Fix Pay Scale)

9300-34800 +GP 4200

 

 

 

7300-34000 +GP 3600

 

7300-34800 +GP 3200

 

5200- 20200+GP 2400

 

4000- 20200+GP 2400 

 

5200- 20200+ GP

 

2400 5200 (Fix Pay)

5% of Basic

 

 

5% of Basic

5% of Basic

5% of Basic

5% of Basic

5% of Basic

5% of Basic

 

2. Composition of Pay:

The composition of pay of all the officers and employees of the university is as under:

 

(a) Composition of total salary:

Basic pay (BP) + Dearness allowance (DA) +GP+ House Rent Allowance (HRA) + Medical Allowance (MA) + Conveyance allowance (CA) = Total salary.

 

(i) Basic pay: The basic pay is decided according to BP and increments.

 

(ii) Dearness Allowance : The DA is decided on the basis of orders issued by the State Govt. from time to time.

 

(iii) House Rent Allowance: The officers / employees of the University who do not reside in Govt./University accommodations are paid HRA as decided by the state Govt. to the post as shown in the table.

 

(iv) Medical allowance and (v) Conveyance allowance : All the employees of the university are paid MA @ Rs.350/- and CA @ Rs.200/- per month.

 

 

 

 


(b) Deductions:

The following deductions are made from the salary of the employees.

 

Provident Fund (PF) + Group Insurance Scheme (GIS) +

Professional Tax (PT) + Income Tax (LT.) = Total deduction

 

(i) Provident Fund (PF) : Provident fund is deducted @ 12% of the basic Pay + DA of all the employees. Equal amount is contributed by the University in individual's provident fund account.

 

(ii) Group Insurance Scheme: Under this scheme the prescribed amount is deducted from the salary of individual employee as fixed by the State Govt. and contributed towards GIS.

 

(iii) Income Tax and (iv) Professional Tax: The average income tax and professional tax is deducted from the salary of the employee as applicable in individual's case, each month. At the end of the year, a detailed account of the above and income tax return is filed to I.T. office.

Studies have shown that the salary of every employee is credited each month in the account of the individual at Allahabad Bank located in the university campus. Further, no unauthorized deduction is made. Likewise the amount of PF and GIS are accrued and recorded in individual's pass book. At the end of the year, the interest is added and entered in the pass book with the signature of the authorized competent attesting officer. The differences in the salary are due to individual's post and experience. Obviously, the employees earn their salary more on the basis of experience rather than any other criteria.

 

3. Increments:

(a) Annual Increment: All the regular employees of the university are paid annual increments from the due date, according to their pay scales, but those on fixed salary are not eligible for the benefit. The annual increment so granted is entered in the service book every year. These non-teaching employees who are under stagnation are sanctioned stagnation allowance at the end of every two year applicable for the individual. The employees under probation are sanctioned increments at the end of probation as the case may be.

 

(b) Special Pay Increments: All the employees of the university are granted special pay increments as under:

 

(i) For Ph.D.: Two additional increments are sanctioned to all employees of the university from the date of notification of the result of Ph.D. 

 

(ii) Family Planning Increments: All the employees of the Univ. who have under gone family planning operation are sanctioned two or one increments after one or two issues, respectively, as per state Govt. rules. Further, if the spouse is in service, the said increments are sanctioned to the employee with higher pay scale. The increments are sanctioned from the date of operation.

 

4. Time scale promotion:

This scale is sanctioned, according to their qualification and experiences who have not undergone any promotion in their career. The pay scales are like those applicable in State Govt. but the cadre of the employee remains unaffected. The scales are sanction at the end of 12 and 20 yrs. of the service in the same cadre if no promotion has been given.

 

5. Special Pay allowances:

The university employees are sanctioned special pay allowance as under:

(a) If the work of more responsibility than the cadre is assigned, 6¼% allowance is sanctioned to the employees of all cadres; and

 

(b) Additional allowance @ Rs.70/- to cashier, 150/- to photocopy machine operator, 125/- to stenotypist and Rs.I00/- to disabled employee as conveyance allowance per month is also sanctioned.

 

6. Additional remuneration:

The Vishwa Vidyalaya employees are paid additional remuneration for the under mentioned assignments:

 

Table .2: Additional remuneration against extra work:

S.No.

  Work

Eligible employee for the work

1

Tabulator

Checker

Mark Sheet Checking

Degree Checking

Degree Writing

Mark sheet writing

Up to Superintendent

Up to Asstt. Superintendent

 Up to Superintendent

 Up to Senior Superintendent

Any cadre according to writing

Assistant I and II

Note: At present due to the use of computer for preparation of mark sheet this is not applicable.

 

 

 

7. Over time:

The payment of overtime has been stopped in the university for the past 3 years.

 

8. Bonus:

No bonus is paid to the employees of the University.

 

Table – 3:Employees satisfaction in relation to salary.

S.N.

Statement/Groups

(A)

(B)

(C)

Overall

 

Highly satisfied

16.7

33.3

-

10

 

Satisfied

33.3

25.0

25.0

26

 

Just satisfied

16.7

41.7

12.5

20

 

Normally

33.3

-

12.5

12

 

Dissatisfied

-

-

50.0

32

 

Total satisfaction

50

58.3

25

36

 


 

 


Satisfaction status with regard to salary:

The salary satisfaction the employees of group A of the university is 50% as against 58.3% in group B and 25.0% in group C. The overall satisfaction level in the employees of the University is 36.0% (Table-3 and Fig.1and 2). The table clearly depicts that the employees of group 'C' are not satisfied because of meager chances of promotion to them. The work assistants included in this group are under fixed salary without increments and the regularization of their services requires 12-15 years.

 


 

 


CONCLUSION:

Result indicates that the satisfaction score in relation to remuneration appears average for group A, very good for group B, and extremely poor for group C. The overall score of the university are extremely poor/ unsatisfactory.

 

REFERENCE:

1.       Balcher D.W. (1964) : Omnibus trends in wage and salary administration. Personnel Sept.-Oct., PP. 45-66,

2.       Mason H., Edwin E and Iymen W. Porter (1963) : Psychological research on pay-an overview. Industrial Relations. Vol. 3 (1) p.3

3.       Pigros P. and Myers C.A. (1977): morale studied of concluded wages are fifth or sixty in scale of job satisfaction. Personnel administration. McGraw hill Koga Kusha Ltd. Tokyo. P. 333.

4.       Malik Manju (2003) : A comparative study on job satisfaction between ad-hoc basis teacher and regular teachers-with reference to degree colleges of Kurukshetra. Int. Nat. Jour. of Social Science and Interdisciplinary Research (IJSSIR) Vol. 2 (4) April 2013. pp. 52-60.

5.       Ghazanfar F., Chuanmins., Khan M.M., Basir M. (2011): A study of relation ship between satisfaction with compensation and work motivation. Inter Nat. Jour. of Business and Social Science .Vol. 2 (1) (Jan. 2011) pp. 120-131.

6.       Sharma Renu (2013) : The impact of various components of compensation on the motivation level of employees a comparative study of selectedIndian pubic and private Banks. Inter Nat. Jour. of Application or Innovation in Engineering of Management (IJAIEM) Vol. 2(7) (july 2013). pp. 511-516.

7.       Kwak J. and Lee E. (2009): An empirical study of fringe benefits and performance of the Korean firms. International Jour. of Business and Management Vol. 4(2) pp 3-9.

8.       Gutpa Shobhna J. and H . Pannu K (2013): A comparative study of job satisfaction in public and private sector.  Indian Jour. of Arts. Vol. 1(1) pp 1-6.

9.       Sarkar Jeeta (2014) : An overview of empirical research on CEO pay-firm performance, Inter.Nat Jour. of Economics and Business Studies. Vol. 3 (6)

10.     Suresh Kumar and K. Arpna (2012) : Job satisfaction for IT professional in Banglore city. Paripex Indian Jour. of Research . Vol. 1 (11) pp. 90-92.

11.     Tiwari Usha (2013) : A study on rewards and recognitions and its impact on employees motivation and job satisfaction at Union Bank of India (UBI). H.R. Journal (International Jour.) of Management Vol. 6 (1) April- Sept. PP. 105-112.

12.     Appa Rao, P.B. (1998): Personnel Problem in small state Industry, Deep and Deep Pub. , New Delhi.

13.     Budhwar, P.S. (1998): Human Resource Management in six manufacturing Industries: An empirical study. Indian Jour. of Training and Development, 26 (1) : 67-78.

14.     Kharbanda, O.P. (1986): Motivation, Nothing like pay packet. The Economic Times. Sept.  4, p. IV.

15.     Kumar, B. (2000): Human Resource Development, Mohit Publication New Delhi, pp. 155-171.

 

 

Received on 03.09.2014       Modified on 21.09.2014

Accepted on 26.09.2014      © A&V Publication all right reserved

Int. J. Ad. Social Sciences 2(3): July-Sept., 2014; Page 170-174