105692419 Project Report On Compensation Management 372w3r

PROJECT REPORT ON COMPENSATION MANAGEMENT

TABLE OF CONTENTS 1. COMPENSATION MANAGEMENT 2. EXECUTIVE SUMMARY 3. INTRODUCTION TO THE COMPANY 4. HISTORY OF THE COMPANY 5. OBJECTIVES OF THE PROPOSED STUDY 6. RESEARCH METHODOLOGY 7. SCOPE/ RELEVANCE OF PROPOSED STUDY 8. GLOBAL SCENARIO 9. DATA INTERPRETATION AND ANALYSIS 10.COMPANY NAME 11.FINDINGS OF THE SURVEY: a. CONCLUSION b. RECOMMENDATIONS & SUGGESTIONS c. REFERENCE d. APPENDIX e. QUESTIONNAIRE

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EXECUTIVE SUMMARY

In the current scenario of competitive business environment, it has become important for a management student to equip themselves with the practical exposure of the corporate world. It was great privilege for me to understand the practical HUMAN RESOURCE aspects in our college classroom on the topic Compensation Management. In this regards I was asked to analyze the compensation package in employee compensation management policies in hitavada and its distributors. It was analyzed that the employees were fully satisfied in respect to their increment in their salary package. An online and telephonic interview was being conducted and questionnaire was being distributed accordingly. The of the respondents was up to the mark and a positive conclusion could be made. The company where I completed my Internship was “THE HITAVADA” started in 1911. My topic for the project is “impact of newspaper in reputation of any organization”.

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WHAT IS COMPENSATION MANAGEMENT?

Compensation management is payment in the form of hourly wages or annual salaries combined with benefits such as insurance, vacation, etc. that can positively or negatively affect an employee’s work performance. It can be said that compensation is the “glue” that binds the employee and the employer together and in the organized sector, this is further codified in the form of a contract or a mutually binding legal document that spells out exactly how much should be paid to the employee and the components of the compensation package. The art and science of arriving at the right compensation makes all the difference between a satisfied employee and a disgruntled employee. Though Maslow’s Need Hierarchy Theory talks about compensation being at the middle to lower rung of the pyramid and the other factors like job satisfaction and fulfillment being at the top, for a majority of employees, getting the right compensation is by itself a motivating factor. Hence, employers need to quantify the employee’s contribution in a proper manner if they are to get the best out of the employee. The provision of monetary value in exchange for work performed forms the basis of compensation and how this is managed using processes, procedures and systems form the basis of compensation management. The aspect of how skewed compensation management leads to higher attrition is discussed as well. This aspect is important as studies have shown that a majority of the employees who quit companies give inadequate or skewed compensation as the reason for their exit. Hence, compensation management is something that companies must take seriously if they are to achieve a competitive advantage in the market for talent.

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“If you pick the right people and give them the opportunity to spread their wings and put compensation and rewards as a carrier behind it - you almost don’t have to manage them.” — Jack Welch

DEFINITION OF COMPENSATION MANAGEMENT: It is a systematic approach to providing monetary value to employees in exchange for work performed. Compensation may achieve purposes assisting in recruitment, job performance, and job satisfaction. PREFACE Human resource is the most vital resource for any organization . It is responsible for each and every decision taken, each and every work done. Employees should be managed and motivated by providing best remuneration and compensation as per the industry standards. The lucrative compensation will also serve the need for attracting and retaining the best employees. Compensation is the remuneration received by an employee in return for his/her contribution to the organization. It is an organized practice that involves balancing the work-employee relation by providing monetary and non-monetary benefits to the employees.

COMPONENTS OF COMPENSATION MANAGEMENT: Compensation oval:

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Components of compensation:Basic wages/Salaries:This refers to the cash component of the wage structure based on which other elements of compensation may be structured. It is normally a fixed amount which is subject to changes based on annual increments or subject to periodical pay hikes. It is structured based on the position of an individual in the organization and differs from grades to grades. Dearness allowance:The payment of dearness allowance facilitates employees and workers to face the price increase or inflation of prices of goods and services consumed by him. The onslaught of price increase has a major bearing on the living conditions of the labor. The increasing prices reduce the compensation to nothing and the money's worth is coming down based on the level of inflation. The payment of dearness allowance, which may be a fixed percentage on the basic wage, enables the employees to face the increasing prices. Bonus:5 | Page

The bonus can be paid in different ways. It can be fixed percentage on the basic wage paid annually or in proportion to the profitability. The Government also prescribes a minimum statutory bonus for all employees and workers. There is also a bonus plan which compensates the Managers and employees based on the sales revenue or Profit margin achieved. Bonus plans can also be based on piece wages but depends upon the productivity of labor. Commissions:Commission to Managers and employees may be based on the sales revenue or profits of the company. It is always a fixed percentage on the target achieved. For taxation purposes, commission is again a taxable component of compensation. The payment of commission as a component of commission is practiced heavily on target based sales. Depending upon the targets achieved, companies may pay a commission on a monthly or periodical basis. Mixed plans:Companies may also pay employees and others a combination of pay as well as commissions. This plan is called combination or mixed plan. Apart from the salaries paid, the employees may be eligible for a fixed percentage of commission upon achievement of fixed target of sales or profits or Performance objectives. Nowadays, most of the corporate sector is following this practice. This is also termed as variable component of compensation.

Piece rate wages:Piece rate wages are prevalent in the manufacturing wages. The laborers are paid wages for each of the Quantity produced by them. The gross earnings of the labour 6 | Page

would be equivalent to number of goods produced by them. Piece rate wages improves productivity and is an absolute measurement of productivity to wage structure. The fairness of compensation is totally based on the productivity and not by other qualitative factors. The GANTT productivity planning and Taylor's plan of wages are examples of piece rate wages and the related consequences. Sign on Bonuses:The latest trend in the compensation planning is the lump sum bonus for the incoming employee. A person, who accepts the offer, is paid a lump sum as a bonus. Even though this practice is not prevalent in most of the industries, Equity research and investment banking companies are paying this to attract the scarce talent. Profit sharing payments:Profit sharing is again a novel concept nowadays. This can be paid through payment of cash or through ESOPS. The structuring of wages may be done in such a way that, it attracts competitiveness and improved productivity. Profit sharing can also be in the form of deferred compensation at the time of retirement. At the time of retirement the employees may be paid a lump sum or retiral benefits. Fringe benefits:The provision of fringe benefits does not attract any explanation. These includes., a) Company cars b) Paid vacations c) hip of social/cultural clubs 7 | Page

d) Entertainment tickets/allowances. e) Discounted travel tickets. f) Family vacation packages.

Reimbursements:Employees, depending upon their gradations in the organization may get reimbursements based on the Expenses incurred and substantiated. Certain expenses are also paid based on expenses incurred during the course of business. In many cases, employers provides advances to the employees for incurring certain expenses that are incurred during the course of the business. Some examples are: a) Travel expenses. b) Entertainment expenses c) Out of pocket expenses d) Refreshments expenses during office routine outside office premises. Sickness benefits/pregnancy:The increasing social consciousness of corporates had resulted in the payment of sickness benefit to the Employees of companies. This also includes payments during pregnancy of women employees. The expenses incurred due to injury or illness are compensated or reimbursed to the employees. In certain companies, the death of an employee is compensated financially. Companies are also providing ing financial benefits to the family of the bereaved employees. However, companies covering these cost through appropriate insurance policies like, Medical and life insurance. 8 | Page

The whole idea of compensation management can be better understood through the following Pyramid structure.

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Leave Travel Allowance These allowances are provided to retain the best talent in the organization. The employees are given allowances to visit any place they wish with their families. The allowances are scaled as per the position of employee in the organization. Medical Reimbursement Organizations also look after the health conditions of their employees. The employees are provided with medi-claims for them and their family . These medi-claims include health-insurances and treatment bills reimbursements. Bonus Bonus is paid to the employees during festive seasons to motivate them and provide them the social security. The bonus amount usually amounts to one month’s salary of the employee. Special Allowance Special allowance such as overtime, mobile allowances, meals, commissions, travel expenses, reduced interest loans; insurance, club hips, etc are provided to employees to provide them social security and motivate them which improve the organizational productivity. INDIRECT COMPENSATION Indirect compensation refers to non-monetary benefits offered and provided to employees in lieu of the services provided by them to the organization. They include Leave Policy, Overtime Policy, Car policy, Hospitalization, Insurance, Leave travel Assistance Limits, Retirement Benefits, Holiday Homes. Leave Policy It is the right of employee to get adequate number of leave while working with the organization. The organizations provide for paid leaves such as, casual leaves, medical leaves (sick leave), and maternity leaves, statutory pay, etc. Overtime Policy Employees should be provided with the adequate allowances and facilities during their overtime, if they happened to do so, such as transport facilities, overtime pay, etc. Hospitalization The employees should be provided allowances to get their regular check-ups, say at an interval of one year. Even their dependents should be eligible for the mediclaims that provide them emotional and social security. Insurance 10 | P a g e

Organizations also provide for accidental insurance and life insurance for employees. This gives them the emotional security and they feel themselves valued in the organization. Leave Travel The employees are provided with leaves and travel allowances to go for holiday with their families. Some organizations arrange for a tour for the employees of the organization. This is usually done to make the employees stress free. Retirement Benefits Organizations provide for pension plans and other benefits for their employees which benefits them after they retire from the organization at the prescribed age. Holiday Homes Organizations provide for holiday homes and guest house for their employees at different locations. These holiday homes are usually located in hill station and other most wanted holiday spots. The organizations make sure that the employees do not face any kind of difficulties during their stay in the guest house. Flexible Timings Organizations provide for flexible timings to the employees who cannot come to work during normal shifts due to their personal problems and valid reasons.

IMPORTANCE OFCOMPENSATION Compensation and Reward system plays vital role in a business organization. Since, among four Ms, i.e. Men, Material, Machine and Money, Men has been most important factor, it is impossible to imagine a business process without Men. Every factor contributes to the process of production/business. It expects return from the business process such as rent is there turn expected by the landlord, capitalist expects interest and organizer i.e. entrepreneur expects profits. Similarly the labour expects wages from the process. Labor plays vital role in bringing about the process of production/business in motion. The other factors being human, has expectations, emotions, ambitions and egos. Labor therefore expects to have fair share in the business/production process. Labor plays vital role in bringing about the process of production/business in motion. The other factors being human, has expectations, emotions, ambitions and egos. 11 | P a g e

Labor therefore expects to have fair share in the business/production process. Therefore a fair compensation system is a must for every business organization. The fair compensation system will help in the following: o An ideal compensation system will have positive impact on the efficiency and results produced by employees. It will encourage the employees to perform better and achieve the standards fixed. o It will enhance the process of job evaluation. It will also help in setting up an ideal job evaluation and the set standards would be more realistic and achievable. o Such a system should be well defined and uniform. It will be apply to all the levels of the organization as a general system.

The system should be simple and flexible so that every employee would be able to compute his own compensation receivable.

o It should be easy to implement, should not result in exploitation of workers.

o It will raise the morale, efficiency and cooperation among the workers. It, being just and fair would provide satisfaction to the workers.

o Such system would help management in complying with the various labor acts.

o Such system should also solve disputes between the employee union and management.

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o The system should follow the management principle of equal pay.

o It should motivate and encouragement those who perform better and should provide opportunities for those who wish to excel.

o Sound Compensation/Reward System brings peace in the relationship of employer and employees.

o It aims at creating a healthy competition among them and encourages employees to work hard and efficiently.

o The system provides growth and advancement opportunities to the deserving employees.

o The perfect compensation system provides platform for happy and satisfied workforce. This minimizes the labour turnover. The organization enjoys the stability.

o The organization is able to retain the best talent by providing them adequate compensation thereby stopping them from switching over to another job.

o The business organization can think of expansion and growth if it has the of skillful, talented and happy workforce.

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o 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.

SUCCESS FACTORS FOR COMPENSATION MANAGEMENT: Success Factors Compensation delivers and ensures:  Simplified, more accurate compensation plan management. Intuitive, highly configurable base salary and variable pay (bonus, stock, and equity) processes with defined, streamlined workflows.  Calibration with Performance to ensure fairness and employee retention. Integrated with the suite, performance data is calibrated across the company and seamlessly used with SuccessFactors Compensation.  Insight for total compensation analysis. Pre-built reports and dashboards for budget rollups, exceptions, legal compliance, employee details and perform-and-reward analysis. Plus, compensation data can be combined with other business data for more comprehensive insight.  Assurance that budgets are used wisely. Automated monitoring of compliance with variable pay guidelines, keeps payouts in line with budgets. Plus, save time as bonus and merit recommendations are automated from employee performance data. Run "what-if" scenarios to instantly see how increasing merit pay to top performers will impact budgets.  Significantly reduced risk with improved audit compliance. Data for audits is automatically stored, greatly reducing this burden for compensation s. By rewarding great execution, you will retain more of your top talent and drive organizational performance that exceeds all expectations. Plus, benefit from improved budgeting accuracy and reduced risk.

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COMPENSATION OF PAYROLL: Payroll refers to the istration of employees' salaries, wages, bonuses, net pay, and deductions. It consist of the employee ID, employee name, date of ing, daily attendance record, basic salary, allowances, overtime pay, bonus, commissions, incentives, pay for holidays, vacations and sickness, value of meals and lodging etc. There are some deductions such as PF, taxes, loan installments or advances taken by employee. Payroll is istered on monthly basis and annual basis. While istrating the monthly payroll basic salary, HRA, conveyance, and other special allowances such mobile, etc are considered. There are some deductions Which are provident fund (12%) of the salary, taxes and other deductions.

Deductions such as tax and loan/advances taken by the employee from 15 | P a g e

organizations are deducted only where applicable. Dearness Allowance and House rent allowance is provided at a fixed rate stated by the employment law. Provident fund is deducted from the gross salary of employee on the monthly basis as per the employment law, which is provided later to the employee. Organizations also contribute the same amount to the provident fund of the employee. Annual payroll consists of leave travel allowances, incentives, annual bonuses, meal vouchers/reimbursements, and medical reimbursements.

Figure: Components of Annual Payroll Allowances, incentives, bonuses and reimbursements are based on organizational policies. Some organizations provided the allowances on a fixed rate say 10% or 12% of the basic salary. Some organizations go for performance based incentives.

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PAYROLL MANAGEMENT: Payroll is defined as a method of istrating employees’ salaries in the organizations. The process consists of calculation of salaries and tax deductions of the employees, istrating the retirement benefits and disbursements of salaries to employees. It can also be called as an s activity which undertakes the salary istration of employees in the organization. istrating the employees’ salaries is not an easy task, the HR and s department work together to calculate and disburse the salary to the employees. Thus, payroll management can be further subdivided into two sub processes, i.e. Payroll ing and payroll istration. Payroll ing Payroll ing involves calculations of employees’ salaries and tax deductions. It also undertakes the activities such as preparation of tax returns, maintaining the payroll records, etc. Payroll istration Payroll istration involves managerial activities such as maintaining employees’ records, referring employment laws. Here, the HR comes into picture which maintains the daily record if employees attendance.

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Figure: Payroll Process Database of employees is maintained. Employee’s details such as name, employee ID, basic salary, daily attendance, etc are recorded. Gross Salary is calculated after adding the allowances and incentives to the basic salary of the employee. Net salary is calculated by deducting the tax and other calculated deductions (loan installments, etc). SALARY NEGOTIATIONS: Salary negotiations is the process whereby the employer and the potential employee reach agreement on the and conditions of employment. Salary negotiations generally start with an offer from the employer. The potential

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employee can accept the offer or choose to negotiate details of the offer, usually by a deadline stated by the employer. The employer states a deadline to ensure that salary negotiations take place in a short period of time so that the new employee can start work expeditiously. Or, the employer realizes that they will not reach an agreement with the candidate and can other qualified potential employees before they are unavailable in the job market. Salary negotiations are most effectively conducted by one person who responds to the candidate after consulting with other organization key players. Using a point person for salary negotiations eliminates the possibility of mixed messages and misunderstood or poorly communicated offers and responses. Using a point person in salary negotiations is another opportunity for the employer to continue to build the relationship with its selected candidate. Successful salary negotiations result in an employment contract that is acceptable to both the employer and the new employee. Salary Negotiations Subject Matter Anything and everything in the job offer is negotiable. The amount of compensation, the benefits package, and the working conditions including days and hours of employment, work flexibility options, title, and severance pay are all negotiable. Salary negotiations depend on the position. Leeway for salary negotiations generally increases with the level of the position within the organization. Executives and senior managers have the most leeway for a range of executive compensation negotiations around salary, benefits, and perquisites or perks. Approach salary negotiations from a win-win perspective. You don't want a new employee who s your organization already disgruntled from the salary negotiations. At the same time, you don't want an overpaid employee who doesn't earn his keep and is ineligible for increases in compensation within a reasonable time frame. Salary Negotiations Flexibility The employer's salary negotiations leeway depends on these factors: 19 | P a g e

        

the level of the job within your organization, how scarce the skills and experience needed for the job are in the employment market, the career advancement or stage and experience of the individual selected, the fair market value for the job you are filling, the salary range for the job within your organization, compensation paid to equivalent positions within your geographic region, the existing economic conditions within your job market, the existing economic conditions within your industry, and company-specific factors that might affect the given salary such as comparative jobs, your culture, your pay philosophy, and your promotion practices.

Bottom Line in Salary Negotiations Fundamentally, after you have considered these factors, the employer must decide how badly you want the candidate and the price you are willing to pay to attract him or her to your organization. Your long term satisfaction with your employee choice is often a factor of the rationality of your hiring decision and compensation package versus an emotional need to bring the employee onboard.

INTRODUCTION TO THE COMPANY: The company started way before independence of India in 1911. INTRODUCER

:

Mr. Gopal Krishna Gokhale.

INCEPTION

:

1911

HEAD OFFICE

:

NAGPUR

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CITY OFFICES

:

NAGPUR, VIDARBHA, BHOPAL (MP) RAIPUR (C.G.)

CHIEF EDITOR (CITY) :

Mr. E V Murli

BRANCH HEAD

:

Mr. Sakalkar

SUB- EDITOR

:

Mr. Mukesh S. Singh

OBJECTIVE OF PROJECT The project aims at understanding the role of compensation management in newspaper business and management of vast distribution of an English newspaper “HITAVADA” in cities and villages of Chhattisgarh where literacy level is merely 42.9% as per census 1991 data including 36.7% rural and 71.4% urban literacy.

METHODOLOGY In order to achieve the above mentioned objective and finish the study to perfection I have made a judicious and a balanced use of primary and secondary sources of data collection. The primary sources comprise of:  Personal visits to the several news paper agencies gather their regarding compensation management process.  Intense survey of rural and urban areas of CG and understanding the pattern how such massive scale recruitment and its policy making.  Direct communication with the person who were knowledgeable and in charge of operations in every field in THE HITAVADA. To facilitate my operations I had first chalked out a detailed questionnaire covering in length all questions that would serve the purpose in the most efficient and productive manner. The preparations and the formulation of the questionnaire was on the basis of many assumptions and considerations viz., the time the survey audience would require for giving me the required

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answers, the importance of that time and cost involved and copy of said questionnaire is included in this project a s annexure. Although the efforts were directed basically towards obtaining information required for the study from primary sources to the maximum possible extent, due to factors like:  Lack of cooperation anticipated from several news agencies.  Lack of time for answering the questionnaire by the news officials  Unavailability of person in charge. I had to resort to secondary sources like websites, magazines, newspapers etc. Bibliography of these sources forms a part of this project for ready reference of the reader.

DATA ANALYSIS: The data gathered for this project are of complete relevance to my topic of the project. These all survey and statistics reveals clearly that newspapers have a major role to play in the image building of any business and also its social image in the society, out of all sources news papers are considered to be the most reliable sources for getting authentic information regarding any business or company. A small loophole of company is revealed in seconds if conveyed to the media. Any kind of success if conveyed to the society with the help of print media does wonders for the company. It may attract many business opportunities after getting awareness about the company and its brand image. Taking an example of TATA STEEL it is having huge brand value and also goodwill. It can be seen if newspapers and other print media do not highlight their each and every action and performance to the society it shall have never reached to the masses that TATA STEEL HAS VALUES STRONGER THAN STEEL.

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On the other hand if we observe also the reputation of RELIANCE INDUSTRIES is comparatively less loyal in comparison to TATA just because their work ethics has been clearly revealed in newspapers every single day.

REPORT CONTENTS OF THE REPORT: PART I  BRIEF INTRODUCTION OF THE COMPANY  HISTORY OF COMPANY/ ORGANIZATION PROFILE. PART II  INTRODUCTION  OBJECTIVES AND SCOPE  CONCLUSIONS  LIMITATIONS  RECOMMENDATIONS AND OBSERVATION PART III  APPENDIX  BIBLIOGRAPHY  REFERENCES  GLOSSARY

BRIEF INTRODUCTION OF COMPANY 23 | P a g e

ORIGIN OF “THE HITAVADA” The purpose of every newspaper is to spread awareness and actual information in the society. The first major newspaper in India—The Bengal Gazette—was started in 1780 under the British Raj. Long after that during 1911 origin of THE HITAVADA took place where the real purpose behind starting this news daily was very unique. During 1911 INDIA was under major unrest due to continuous wars and struggle for independence which seemed to come true to all Indians with the help of freedom fighters. Amongst all those freedom fighter was Mr. Gopal Krishna Gokhale . the hitavada was a brainchild of Mr. Gopal.  HEAD OFFICE: NAGPUR  CURRENT AREAS SERVED: CG, MP, MAHARASHTRA,

PURPOSE BEHIND STARTING “THE HITAVADA”: During 1911 basic motto behind starting HITAVADA was to convey the feeling, oppositions, rage and protest to Britishers in a language intelligible by them. Due to language barrier of all newspapers Britishers found it hard to understand the rage of freedom fighters. After introducing an English newspaper it became far easier in Central India to convey one’s thoughts and opinions against British rule in India.

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CONTENTS OF HITAVADA NEWSPAPER:

FRONT PAGE MAIN

REALITY

MONEY

EDITORIAL

SPORTS

NATION

FUTURE

WORLD WOMEN'S WORLD

 Front page: It majorly consists of all burning issues related to country and globally which has an impact over Indian civilians. 25 | P a g e

 Past time: This page consists of all refreshing and health related news which energizes a reader with new and unique information regarding his/her health and daily routine. Also consist of interesting recipes which could stimulate the daily life charm. Eg cartoons, amazing facts and concepts.  Nation page: All social, political and economical news pertaining to have an impact on the Indian civilians is mentioned in this section of page. Any such government news which has to be conveyed to masses is conveyed by this page.

 Editorial page: This page consist of analytical and debatable news which is the result of thoughts and intense analysis of the eminent social workers, businessman, authors and several other people involved in continuous study of burning issues globally. They present a centralized idea of every issue relating to either social or political sectors within or outside the country.  World page: It relates to the issues of world which is current happening or follows up.  Business page: It consists of all business and its performance in the market. The Top level companies, new mergers and acquisitions, financial information, collapsing of any firm etc. This is the section of newspaper which has a great impact over the business firms. Also a small news also is projected to millions of online and offline readers.  Sports page

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It consist of news relating to all types of players and their performance may it be cricket, football, volleyball, table tennis, lawn tennis any group or community game organized country wide or even abroad.

All the above mentioned pages are published and designed to cater several layers of the society. As well as create awareness relating to all segments of the society.

COMPANY PROFILE: THE HITAVADA comprises of below mentioned departments:

Desig

The Hitavada departments

Finance

Circulatio Translati Marketin Editorial n on s g

nations and officers: BRANCH HEAD

:

MR. SAKALKAR

CHIEF EDITOR

:

Mr. BANWARILAAL PUNDIT

RESIDENT EDITOR

:

Mr. E V MURLI

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SUB-EDITOR

:

Mr. MUKESH S SINGH

EDITORIAL INCHARGE

:

Mrs. SURBHI SINGH

TRANSLATION HEAD

:

Miss SANA TAMKEEN

PROJECT OVERVIEW: INTRODUCTION: The basic notion behind making project on the topic “impact of print media in Chhattisgarh business” was to identify the role of and very popular print media on the business of state having growth rate of 11.79% in second position after Gujarat. OBJECTIVE AND SCOPE OF THE PROJECT: OBJECTIVE:  Objective while making this project was to understand the role of print media in the society and companies.  To analyze the effectiveness of print media in increasing the business of state.  To understand the impact of print media in connection of suppliers-producers-customers.  To understand the business of print media and it’s functioning with the help of THE HITAVADA.  To understand the role of media for cosumer awareness and publicizing the basic needs and awareness through ments.  Another objective of my project is “to understand the distribution management of a newspaper company”.  As we can see in Chhattisgarh itself THE HITAVADA circulates its newspapers in several areas including:  Raipur  Bastar 28 | P a g e

      

Bhilai Rajanadgaon Bilaspur Konta Surajpur Raigarh Dantewada etc…….

DESCRIPTION ROLE OF NEWSPAPERS IN COMPANY’S PUBLICITY: Newspapers play a very major role in spreading the news good or bad to the masses. All kind of activities may it be in the public or private sector is highlighted by the newspapers. News papers play the below mentioned roles in the business:  Creates a brand image of the company  Generates business through providing them spaces for ments  Through newspapers public sector undertakings (PSU)do their many major functions of as : o Tender issuing o Contract request o Recruiting o Result declaration o Performance report

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o Introduction of new plan eg. MNREGA, SARVASHIKSHA ABHIYAAN etc. o Notifications o Communicate their updates and information to common public o Employment news  Even private companies are largely benefited by the newspapers like: o their products / services o Invite customers for investments o Publicize their brands. o Offer vacancies o Intimate about their meetings and programs. o Get daily updates of companies doing progress and match up themselves to their benchmarks.  Also the other impacts of the newspaper cannot be ignored as in following cases: o The common public gets authorized news and its details. o All students and businessman rely on newspapers to rectify and be sure about their authenticity of the news. o Can communicate their views to any sector and any level of the country in written by newspapers. o Social groups or communities can demand for their own wish which is in favor of the public eg. Lokpal bill by anaa hazare. o By reading such newspapers one can keep themselves updated with country and sectors existing in the country.

IMPACT OF NEWSPAPER ON BUSINESS “PUBLIC/PRIVATE”: There are several affects of being updated in newspapers although it has tremendous reach and penetration in several levels of the society but still it has few drawbacks. Diagram showing types of impact:

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impacts economic positive negative social political al POSITIVE IMPACT: Creates awareness Increases brand equity Stimulates sales s advertising Generates business Helps to communicate with other stakeholders and share holders connected with the company.

Eg : as per the information from JCB they told that after giving their ments in newspapers like THE HITAVADA huge response has been 31 | P a g e

received from the areas where we can never think of. As currently rural market is very fertile and untapped and if one allocates a small space in the newspaper then it is read and received by all the farmers who hardly have time to watch TV or listen to ads on radio.

NEGATIVE IMPACT: Rarely the case of negative impact occurs but if any wrong source has a good name and relation in print media can spoil the name of other competitors by spreading unwanted and fake news. E.g.: in case of TATA INDUSTRIES the NEERA RADIA tape case a created rumors that even TATA was also involved all the conversation were mentioned in the newspapers which created a very bad image for that company who has been a leader of business sector in of loyalty and integrity. SOCIAL:  All the companies should focus on having good relations with the print media. As many organization try and avoid their bad name in newspaper because it directly hampers their image in the society.  Companies are largely affected socially when few of news may be in favor or against are mentioned in print media. It is on papers then it may be referred and exposed to many layers of society and create an undesirable image.  On the other hand company has immense impact on goodwill when a good or appreciating news in printed in newspaper.

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 Each government organization is also having great impact because of the print media. Eg 2G SPECTRUM scam it shattered the image of government and faith of common masses.  CORPORATE SOCIAL RESPONSIBILITY : It is largely effected by media coverage once the event is successful it is not in the knowledge of massive public unless printed or conveyed to media. POLITICAL:  The political affect is that all the democracy is aware of the goods and bad of every political leader and keeps an eye while voting and make a fair judgment.  This image is build up by constant news mentioned in the newspapers about that particular political party of leader. It had immense impact on the reputation of that leader.  While doing charity or any good work also they are largely affected and benefitted.  Each and every political party has a clear image in the minds of the newsreader as they follow up each and every action of the party and leader as well.  Eg. Anna Hazare had been highlighted soo effectively by the media that he has been acclaimed nationwide and all the people belonging to several regions and states came to co-operate him for the anticorruption drive.

ECONOMICAL:     

Business is known internationally Creates awareness amongst all the economical sections Share markets and sensex have their daily fluctuations Promotes trade and commerce. Due to increase in business name globally it promotes trade and commerce of the industry.

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GLOBAL TRENDS AND IMPRESSION: The global trends and actions are conveyed across the country and even outside. Eg. Libyan crisis is known by each and every part of world. FLOW OF DESIGNATION IN THE HITAVADA (RAIPUR): The publishing office of Raipur was inaugurated by the CHIEF MINISTER Mr. Raman Singh and other political leaders in the year 2000. It has affected the circulation of Chhattisgarh.

Diagram:

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Allocation Of News correspondents

Scanning and storing of important news

Correction and and rectification rectification Correction of of errors errors

Flow of news in the editing and translation and translation department department

Compilating Compilating the the news news in in to to printable form

Mailing Mailing the the dak dak and and city city files files to nagpur to nagpur head head office office

After the final rectifications files are converted into newspaper formatt formatt and and newspaper mailed back to mailed back to raipur raipur office office These files files are are sent sent into These into printing machines and final copies are ready for distributions distributions

CIRCULATION PROCESS: The circulation process is managed dynamically in the Raipur branch of Hitavada. They have a systematic flow of news and its printing in the office. 35 | P a g e

 It’s a day night process people work in shifts for publishing the newspaper in the rolls and circulate them. There are two departments of :  City department  Dak department  Feature pages  Face 2 Face All the circulations start early morning at 5 AM. Diagram showing circulation of newspaper:

printing of news into paper formatt

bundling of newspaper as per the area and subscriptio n

hiring of agencies for circulation of newspaper

sending of newspaper to locations made in all cities and villages of CG

hawkers pick the bundles and throw them to the end subscriber s

recieve payments from the customers and send it to s deopartme nt

MARKETING OF NEWSPAPER: The marketing of newspaper is very crucial and done in a very different manner, in the newspaper.

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Diagram showing how marketing of newspaper is done:

sponsorship s charity work survey attractive plans

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• events of govt. or companies • schools and college program

• by organizing charity works • like in orphanage and ashrams or flood and dorught affected areas

• having a survey in the areas assigned and analysing where the subscription rates are less in numbers and subscribe them.

• by providing lucrative subscription plans of either quaterly or annually • as in THE HITAVADA 3 months subscription is given for Rs.250/- and a bucket woth Rs. 100 free

Employee satisfaction program  Bonus is allotted to every employee @10 % on every Diwali  Each special feature page article is having a cost of Rs. 200 per article.  Job is for six hours and no extra time working  Although newspaper has no holidays except 15th August and 26th January but still each employee is giving turn wise weekly off.  In complete year 30 days leave is allotted to every employee.

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