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    CHAPTER-1

    INTRODUCTION

    1.1 INTRODUCTION

    Payroll management system encompasses all the tasks involved in paying an

    organizations employees. It typically involves keeping track of hours worked and

    ensuring that employees receive the appropriate amount of pay. It also includes calculatingtaxes and social security, as well as ensuring that they are properly withheld and

    processed. Depending on the company in question, a full range of other deductions may be

    calculated, withheld, and processed as part of payroll administration. Additionally, the

    processing of contractor payments may fall under the umbrella of payroll administration.

    The specific tasks involved in payroll administration tend to vary according to the needs

    of each unique company or organization. For example, some companies have workers that

    receive commissions in addition to salaries. In these companies, including commissions in

    employee salaries is a part of payroll administration. For some companies, it also involves

    assigning exempt or non-exempt status to workers, adding bonuses into paychecks,

    calculating overtime payments, and adhering to applicable employment laws.

    Handling payroll-related problems are part of payroll administration as well. If an

    employee is paid an incorrect amount or a direct deposit fails to go through, both things

    are payroll administration issues. Likewise tax filing and deduction errors are payroll

    administration matters as well.

    Payroll administration can be very simple, involving the payment of just a handful of

    employees, or very complicated, involving payroll for thousands of employees and

    contractors. In some, very small companies, payroll may be handled by the owner of the

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    company or an employee. However, other companies may have many employees to pay

    and keep track of necessitating a well planned, efficient payroll administration system.

    Some companies choose to handle payroll administration in-house, often creating a

    separate department just for the handling of payroll. Often, such organizations purchase

    software to streamline payroll-related tasks. Some companies even have special software

    designed for them, creating a payroll system that is tailored to their unique requirements.

    Many companies decide to outsource payroll administration to other companies. Payroll

    administration companies handle most, if not all, payroll-related tasks for the companies

    they serve. Some payroll administration companies also provide management and human

    resource assistance as well. Many payroll administration companies tailortheir services to

    meet the needs of organizations of all sizes and types. Some even offer on-site help and

    payroll consultations as well.

    Payroll is defined as a method of administrating employees salaries in the organizations.

    The process consists of calculation of salaries and tax deductions of the employees,

    administrating the retirement benefits and disbursements of salaries to employees. It can

    also be called as an accounts activity which undertakes the salary administration of

    employees in t h e o r g a n i za t i o n . Administrating the employees salaries is not an easy

    task, the HR and accounts 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 accounting and payroll administration. Payroll refers to the

    administration of employees' salaries, wages, bonuses, net pay, and deductions. It consist of

    the employee ID, employee name, date of joining, 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.

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    PAYROLL IS ADMINISTERED ON MONTHLY BASIS AND ANNUAL

    BASIS.

    While administrating the monthly payroll basic salary, HRA, conveyance, and other special

    allowances such mobile, etc are considered. There are some deductions.

    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.

    PAYROLL MANAGEMENT PROCESSES

    Calculation of gross salaries and deductible amounts is a tedious task which involves risk.

    Some of the organizations use the traditional manual method of payroll processing and

    some go for the advanced payroll processing software. An organization opts for any of the

    following payroll processing methods available:

    a) Manual System:- Manual payroll system is the traditional payroll system which

    involvespen and ink, adding machine, spreadsheet, etc instead of computers, software

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    and other computerized aids. The process was very popular when there were no

    computerized means for payroll processing.

    b) Accountant: Accountant is a professional having a degree or diploma in finance or

    accountancy. He /she is responsible for all activities related to payroll accounting.

    He/she has sound knowledge of accounting principle and globally accepted standards.

    The process add cost and value to the organization.

    c) Pay roll: - Pay roll outsourcing involves a third party in the calculation of salaries and

    deduction. It save time and cost for the organization. If there is more number of

    employees, say more than 900-1000, in the organization, payroll outsourcing must be

    very beneficial.

    The data is provided to the consultants/outsourcing firms. The various payroll functions

    undertaken by the outsourcing organizations are as follows:

    Analysis of Payroll records, payroll taxes

    Medical claim processing

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    typically happens is that several individuals or work units appear to have overlapping

    role.

    The overlap allows - indeed actively encourages - each individual or business unit to

    "pass the buck" to the others. Ultimately, in the severely non-aligned system, no one is

    accountable for anything. In this event, the principle of accountability breaks down

    completely. Organizational failure is the only possible outcome

    In cases where the non-alignment is not so severe, the organization may continue to

    function, albeit inefficiently. Like a poorly made or badly tuned engine, the non-aligned

    organization may run, but it will be sluggish, costly and unreliable. One of the principal

    aims of performance appraisal is to make people accountable. The objective is to align

    responsibility and accountability at every organizational level.

    ROLE OF HR IN PAY ROLL MANAGEMENT SYSTEM:-

    Earlier payroll was considered to be a part of account department and there was no direct

    interface between Account and H.R. department related to pay roll management system.

    Performance appraisal of an employee was more ritual and done irregularly in an

    organization and that performance not related to pay.

    In countries like US, even before 15 years Payroll was treated as part of the

    Compensation & Benefits Management, which is basically HR function. Payroll, as you

    can see, is only an event, which is happening at a frequency as may be stipulated by the

    country/company rules, and is guided by the policy on Compensation & Benefits

    Management program of any company. Other countries gradually adopted the concept.

    Payroll is also a sensitive matter as employees may have queries when they receive their

    payslips. Not to generalise, Accounts personnel are not very much the right persons to

    have the kind of human relations skills to answer such queries with empathy and

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    patience. So, Payroll also became a matter of human relations over years when

    employees mattered.

    Another reason is the salaries have become more and more linked with employee

    performance and retention with a substantial part of salary paid as performance-linked

    incentive. Performance Management being the HR function, payroll management in a

    performance-oriented reward system has become HR function.

    Accounts department mainly performs a control function and is therefore made as

    bottleneck. A bottleneck approach is not the right approach when you need to reward

    people's performance in a dynamic business environment. So, the payroll function has

    been transferred to HR to make it stay nearer to the people of the organization so as torespond quickly to the employees' queries and performance. Of course, Accounts will

    ultimately monitor the expenses and give their advice regarding any lapse in controls

    through audit and other tools.

    Beside this H.R. have certain responsibilities as an Pay roll administration. such as:-

    a) HR administration - setup customer employees' profile, verification of data and

    ensure up-dated information on employees records

    b) Attendance verification and seeking approval

    c) Leave management

    d) Payroll processing, verification, management and reporting

    e) Perform statutory administration, contribution, reporting and others

    f) Perform customer liaison, project implementation and setup

    g) Handling customer inquiry, customer employees' registration and others and

    take immediate action to rectify the complaints.

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    1.2 OBJECTIVE OF THE STUDY:-

    The project aims at the study of the Pay Roll Management System and it effectiveness in the

    organization. Pay Roll System is the most indispensable tool for the management of an

    organization as it credibility, accountability and proper functioning influence the working of

    Employee as well as the productivity of an organization. There has been tremendous growth in

    the number and size of multinational companies today, leading to significant challenges in the

    areas of human resources and payroll system

    Thus the broad objective of the study is:-

    a) Identify the HR role in Payroll system and thereby to analyze the interface level

    between account and H.R. department in the organization.

    b) Effectiveness of the software used in payroll system in an organization.

    c) To establish the internal control for the pay roll cycle by the H.R. department which

    ensure an adequate segregation of duties, proper authorization of transaction, anaccurate and timely recording of expenditure.

    d) To critically analyze the satisfactory level of employees using this software in

    organization.

    e) To analysis whether these softwares are user friendly and to analyze the accuracy

    and accountability of the pay roll management system in Indigo Airline.

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    Reason for the study: - Payroll incorporates components of both human resources and

    finance. From data-gathering to compiling, the payroll process includes calculations and

    reporting as well as integrating the data back into the organizationThe following are the needs

    to do the research at Indigo Interglobe Aviation Pvt. Ltd.

    1. To understand the interface level between Account and H.R.department in anOrganization in the pay roll management system in Indigo Airline.

    2. The management was in the position to know whether the existing softwaresystem used is effective or not.

    3. To measure the satisfaction level of the employees using the software.

    4. To obtain the feedback from the employees which enable further improvement in

    existing software system.

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    1.3 RESEARCH METHODOLGOY

    a) RESEARCH DESIGN:

    A research design is the arrangement of conditions for collection and analysis of data in a

    manner that aims to combine relevance to the research purpose with economy in procedure.

    The most significant decision is the choice of research approach, because it determines how the

    information will be obtained. The choice of the research approach depends on the nature of the

    research that one wants to do.

    The research design adopted for this study is Exploratory Research. Exploratory research

    focuses on collecting data using an unstructured format or informal procedures to capture data

    and to interpret them. It is often used to classify the problems or opportunities and it is not

    intended to provide conclusive information from which a particular course of action can be

    determined.

    b) SAMPLING TECHNIQUE:

    The next step in research study after collecting data is the sampling process. When a decision is

    made to use the sample, a number of factors must be taken into consideration. The various

    steps involved in the sampling process are:

    Identifying target population

    Determining sample frame

    Selecting sampling procedure

    Determining sampling size

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    Execute sampling

    Obtaining information from respondent

    Generate information for decision making

    The target population in this study was the ground staff of Indigo Airline belonging to differentdepartment. The sampling technique had to be selected. There are two types of samplingtechniques:-

    Probability sampling

    Non-probability sampling

    For the purpose of our study among the probability sampling, the sampling used in this study

    was stratified sampling.

    c) STRATIFIED SAMPLING

    If the population from which a sample is to be drawn does not constitute a homogeneous

    group, then stratified technique is applied so as to obtain a reprehensive sample. In this

    technique, the population is stratified into number of non-overlapping sub populations or strata

    and sample items are selected from each stratum. If the items selected from each stratum is

    based on simple random sampling, the entire procedure, first stratification and then simple

    random sampling is known as stratified sampling. The stratified sampling results in a more

    reliable and detailed information. The researcher uses simple random sampling for selection of

    items from each stratum.

    d) SAMPLE SIZE

    The population covered for the present study consisted of employee belonging to supervisory

    and the level above. For the purpose of this study, survey covered the employee of INDIGO

    LTD. falling under supervisor and the level above. The study covered a sample of 50

    employees.

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    e) DATA COLLECTION APPROACH

    There are several ways of colleting the appropriate data. While deciding about the method of

    data collection to be used for the study, the researcher should keep in mind, that there are 2

    types of data.

    1. Primary data

    2. Secondary data

    Primary data are those which are collected a fresh and for the first time and thus happen to be

    original in character. Primary data can be collected either through experiment or through

    survey.

    Secondary data are those which are collected from the published article, books, journaletc.

    Primary data can be collected either through experiment or through survey.

    The secondary data on the other hand are those which have already been collected by someone

    else and which have already been passed through the statistical process. In this study, the data

    was collected from the primary source through interview schedule.

    f) STATISTICAL TECHNIQUE

    This phase consists of the data analysis of the data collected based on the stratified simple

    random probabilistic sampling technique. The data collected were analyzed using the

    percentage analysis which involve the number of responses of each category is summarized to

    percentage format and bar chart used to critically analyze the data and further data

    interpretation was done.

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    CHAPTER-2CHAPTER-2

    COMPANY PROFILECOMPANY PROFILE

    2.1 INTRODUCTION2.1 INTRODUCTION

    Indigo InterGlobe Enterprises is an integrated travel corporation spanning various

    domains: aviation management, domestic low cost airline, travel technology, travel

    distribution services, hotel development and management services and general aviation.

    Established in 1989 and headquartered in Gurgaon, India, InterGlobe Enterprises has been

    adjudged as one of the Best Companies to Work for in India, for 2008 and 2009 by the

    Great Place to Work Institute, in partnership with The Economic Times.

    InterGlobe has a network of 52 offices across 23 cities in India and strategic overseas

    locations in SriLanka, USA, UK, Malaysia, Singapore, Philippines and Australia. The

    enterprise employs close to 6000 professionals across its businesses, which include IndiGo

    Indias fastest growing low-cost airline; Airline Management for 14 international airlines;

    Distribution of GDS; Travel Technology; Development of Hotels in partnership with Accor

    of France - owner of brands such as ibis, Sofitel, Novotel, Mercure and Pullman; and

    InterGlobe General Aviation, which represents and services the entire line of

    HawkerBeechcraft and Sikorsky products.

    The enterprise is committed to delivering outstanding value to its stakeholders through its

    passion for quality and innovation.

    According to Rahul Bhatia, Group Managing directorInterglobe Enterprises Limited, the

    travel industry in India is buoyant with an ever changing and dynamic environment. At

    Interglobe Enterprises, we have 360 degree approach to providing end to end solution to the

    travel industry.

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    2.2 HISTORICAL BACKGROUND

    With a clear vision, conviction and complete faith in its people, Interglobe Enterprises

    continues to constantly change the landscape of travel, technology, aviation and hospitality,

    with a dynamism that seems to grow only with passing time.

    In 1989 Interglobe Enterprises ( IGE) set up Interglobe Air transport (IGAT). Later it

    becomes the National Distribution Company for Galileo International & Global Distribution

    System distribution. Later it expand its business activities in the field of aviation,

    technology and hospitality sector. Established in 1989, InterGlobe Enterprises is a travel

    corporation with a vision to deliver value to its stakeholders, clients and customers through

    dedicated business units that perform specialist roles. The organization has been serving the

    travel industry for the past four decades and has become a diversified international

    corporation in the areas of Aviation Management (InterGlobe Air Transport), Domestic

    Airline (IndiGo), Travel Technology (InterGlobe Technologies), Travel Distribution

    Services (InterGlobe Technology Quotient), Hotel Development & Management Services

    (InterGlobe Hotels) and InterGlobe General Aviation. Headquartered in Gurgaon, India,

    InterGlobe Enterprises comprises of around 7500 professionals.

    2.3 INTERGLOBE AVIATION PRIVATE LIMITED

    InterGlobe operates IndiGo, Indias leading domestic low cost airline. IndiGo is the

    youngest fleet of aircraft in the country. It offers a uniquely smooth, seamless, precise and

    gimmick-free customer experience at fares that are extremely affordable.

    Indigo is built for the people with things to do, place to be people to see-who dont want to

    waste time, money or energy in the process. By minimizing time/cost/tension of air travel,

    Indigo opens up a country full of opportunities.

    One of the prominent offerings of our aviation portfolio is IndiGo airlines. A low-cost

    domestic carrier, IndiGo has a fleet of brand new Airbus-A320 aircrafts and currently

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    operates daily flights connecting all major destinations in India. IndiGo stands for three

    things: Affordable Fares, On-Time performance and a Hassle-Free flying experience.

    2.4 MANAGEMENT BIOS OF INDIGO

    a) Mr. Aditya Ghosh, President

    Mr. Ghosh sits on the Board of IndiGo and was key to its launch. As the President of IndiGo,

    Mr. Ghosh has the overall managerial and operational responsibility of IndiGo.

    Mr. Ghosh is also a key member of the Leadership Team of the InterGlobe Enterprises which

    is the body that is responsible for the management of the Enterprises various businesses which

    span a wide range of activities while staying true to the core competency of the travel domain.

    Mr. Ghosh plays an instrumental role in the management of the Groups affairs and advising

    on and formulating growth strategies of the InterGlobe Group. Prior to assuming his role as the

    President of IndiGo, Mr. Ghosh served as the General Counsel for the entire InterGlobe

    Enterprise.Mr. Ghosh is a member of the Executive Council of the Federation of Indian

    Airlines.

    b) Mr. Riyaz Peer Mohammed, Chief Financial Officer

    Mr. Peer Mohammed joined IndiGo in March 2006 and is responsible for finance.

    Prior to joining IndiGo Mr. Peer Mohammed was Senior Vice President Corporate Treasury

    for Emirates Airlines and was responsible for treasury, corporate finance, management

    accounts, budgeting, cost control and business finance.

    Previously Mr. Peermohammed held the position of Corporate Treasurer of the Emirates Group

    and was the Aircraft Financing Manager responsible for aircraft acquisition and lease

    arranging.Mr. Peer Mohammed holds a Bachelor of Science from Bombay University, is a

    Chartered Accountant and a Chartered Financial Analyst.

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    c) Mr. Sanjeev Ramdas, Vice President: Customer Services & Airport Operations

    Mr. Ramdas joined IndiGo in October 2005 and is responsible for customer services and

    airport to perations.Prior to joining IndiGo Mr. Ramdas was Director of Airport Services at

    InterGlobe and managed the airport operations of InterGlobes airline partners. Mr. Ramdas

    has been responsible for airport operations, aircraft handling, customer services, emergency

    response procedures, safety, contract negotiations, GSE purchasing, service level agreements

    and cargo.

    Previously Mr. Ramdas worked for Cambata Aviation Pvt. Ltd., Scandinavian Airlines, Tarom,

    Turkish and Delta Airlines .Mr. Ramdas holds a Bachelor of Commerce degree (with Honors)

    from Delhi University and a Post Graduate diploma in Personnel Management and Industrial

    Relations.

    d) Mr. K.S. Bakshi, Vice President: Human Resources

    Mr. Bakshi joined IndiGo in December 2006 and is responsible for human resources.

    Prior to joining IndiGo, Mr. Bakshi was the General Manager HR for Bharti Airtel Ltd.,

    Broad Band & Telephone Services NCR in Delhi. He has over 14 years experience in

    human resources management, with a special emphasis on building and improving HR

    processes and systems and on the acquisition, management, development and retention of

    talented employees.

    He worked on various projects in the areas of leadership competency, employee engagement

    and managing performance. Mr Bakshi holds a Post Graduate Diploma in PM & IR from

    XLRI, Jamshedpur.

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    e) Mr. Vineet Mittal, Vice President: Financial Planning & Analysis

    Mr. Mittal joined IndiGo in October 2005 and is responsible for financial planning, taxation,

    accounting and purchasing. Prior to joining IndiGo Mr. Mittal was a project manager at

    InterGlobe responsible for the IndiGo project. Previously Mr. Mittal worked for Royal

    Airways as Revenue and MIS manager and was responsible for revenue auditing and analysis.

    Prior to joining Royal Airways Mr. Mittal worked with DLF Universal as Deputy Manager

    Accounts and was responsible for accounting procedures, taxation compliance and capital

    management.

    Mr. Mittal began his career as a statutory and general auditor with Ernst and Young.Mr. Mittal

    holds a Bachelor of Commerce from Hansraj College, Delhi University and is a Chartered

    Accountant from the Institute of chartered accountants of India. Mr. Mittal is also a graduate of

    cost accountancy from the Institute of cost and work accountants of India.

    f) Mr. Amit Khandelwal, Vice President: Planning and Revenue Management

    Mr. Amit Khandelwal joined IndiGo in February 2007.In an airline career spanning almost 15

    years, Mr. Amit Khandelwal has worked on various assignments in the areas of Business

    Development, revenue strategy, and program management in the aviation industry, consulting

    & IT-enabled services. Prior to joining IndiGo, he worked with Go Air, United Airlines, PROS

    Revenue Management. and NIIT. He holds a B.E. from BITS, Pilani and an M.S. (Operations

    Research & Management) from the University of Texas.

    g) Namrata Singh, Associate General Counsel

    Namrata is the Associate General Counsel of IndiGo and heads its legal and corporate affairs.

    She started her legal career with a reputed law firm in New Delhi, where she was involved with

    the whole gamut of corporate and business laws.

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    She joined InterGlobe Enterprises Limited as Legal Counsel in 2005. During her association

    with InterGlobe, she played an integral role in the management of the Groups legal affairs and

    advised several of the Group companies and was assigned to advice on the new venture of the

    Inter Globe GroupIndiGo. She holds a Bachelors degree in Law from Symbiosis Societys

    Law College, Pune.

    2.5 INDIGO FACTS

    A brand new fleet of 24 Airbus-A320s with single class seating with 161 daily flights,

    IndiGo flies to as many as 20 destinations all over India

    The largest low-fare domestic airline with 13.9% market share (as of Aug 09) The highest technical dispatch reliability in India: 99.91% since launch

    Industry leading on- time performance in the domestic market

    First domestic low cost airline to have CAT III compliant pilots

    Several industry first initiatives like web check-in, mobile bookings, queue busters, step

    less boarding ramps, air-conditioned tarmac coaches.

    High asset utilization, fast turn-around and optimum resource utilization

    Awarded the Best Domestic Low-Cost Carrier 2008 by Galileo Express Travel World

    Awarded the Best Low Cost Carrier 2009 by CNBC AWAAZ Travel Awards

    2.6 INTERGLOBE ENTERPRISES THIRD CONSECUTIVE WIN A

    INDIAS BEST PLACE TO WORK

    New Delhi, June 24, 2010: InterGlobe Enterprises a leading aviation, travel technology

    and hospitality company has been awarded the "Best Place to Work For" award by Great

    Place to Work institute in Mumbai for the third consecutive year. In addition, this year

    InterGlobe has also been awarded the top spot as The Best Company in the

    Transportation industry.

    With a worldwide presence for over 20 years, Great Place to Work Institute has been known

    for its excellence in studying and recognizing best workplaces globally. This year, they had

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    more than 400 companies participating in the study and only 50 organizations were short

    listed for the Best Companies to Work For list.

    Speaking on this, Mr. Michael Whitaker, Group CEO, InterGlobe Enterprises, said,

    We are humbled by the recognition. We at InterGlobe Enterprises strongly value our

    employees and believe in communicating at all levels and through a variety of modes. This

    award brings with it an immense responsibility to further dedicate ourselves in making

    InterGlobe a world class organization with bestin class business and people practices. But

    most importantly, this is the time to celebrate this proud moment and the quintessential

    spirit of One Team One Dream.

    2.7 INDIGO STANDS FOR THREE THINGS:-

    a) Affordable rates

    b) Timeliness

    c) Hassle free

    2.8 OPERATIONAL STATISTICS OF INDIGO AIRLINES

    Indigo Airlines have outperformed the industry with sound operations , they havetransported ~16 m passengers since inception.

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    2.9 RISK MANAGEMENT

    IndiGo is the first and the only airline in India to cover the Threat and Error Management

    (TEM) syllabus during initial as well as recurrent Crew Resource Management (CRM)

    training Introduced flight data monitoring under Safety Management System (SMS). Flight

    data exceedance grading system implemented based on severity of Occurrence, based on

    exceedance grading report risk analysis carried out Special non punitive reports being

    generated for monitoring SOP adherence by flight crew (introduced from 01-Jan-09).

    At least one station audited each month by flight safety department Grading system for the

    type of risk and mitigation strategies via continuous monitoring through training or

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    redesigning of programs. Retrained all stations in ramp procedures via safety presentations.

    Regular safety updates from President to staff.

    2.10 PROACTIVE SAFTEY INITIATIVE

    Hazard Identification

    Risk Analysis

    Risk Mitigation

    Residual Risk Analysis

    Risk Acceptability

    Inspections

    Ramp Safety Inspections

    Pre Launch Station inspections

    Internal Safety Audits

    100% Flight data monitoring

    Random CVR monitoring

    Cabin Surveillance Inspection

    Spot Checks

    FDTL adherence monitoring

    Weather Minima violation monitoring

    Load and Trim checks

    Awareness Promotion

    Flight safety E-manual

    Ramp safety awareness presentations.

    Safety Information Advisories

    Safety Information Bulletins

    Pilot -Engineer coordination meetings.

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    2.11 CREW RECRUITMENT AND TRAINING

    Fully staffed for current fleet of aircraft:-

    Expected pilot shortages eased on account of recent capacity reductions

    Minimum ICAO level 4 proficiency in English

    Simulator assessment check for IndiGo pilots in Bangalore (not required by the DGCA)

    IndiGo pilot composition

    a) Indian nationals: 280 (114 Capt/ 166 FO)

    b)Expats: 28 Capt

    IndiGo expat captains selection well above industry standards

    IndiGo Indian national captains selection is also well above industry standards.

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    2.12 STRONG EMPHASIS ON TRAINING

    a) PILOT TRAINING

    Captains training Qualified and Experienced Senior Co-pilots are taken through a

    rigorous selection

    Process for command upgrade. Thereafter they undergo 8 SIM sessions + 2 Skill test

    for evaluation +

    AWO training followed by 50 sectors of IOE, 10 line checks and after DGCA

    endorsement one final

    Release check.

    Co-pilots training - Endorsement + 02 route checks + 10 sectors of IOE with TRE + .

    40 sectors of IOE

    Followed by 2 sectors release check with TRE. IndiGo simulator and line training is

    done by the Airbus

    Instructors for standardization along with a SLF of 50 sectors

    Expat pilots - At IndiGo expats undergo 4 familiarization flights + a minimum of 05

    sectors of IOE

    Covering critical and short fields + one line checks with TRI/TRE.

    b) ENGINEERING

    AACT training - employed by IndiGo. First time carried outside of Europe

    IndiGo training department imparts recurring training (required under CAR145)

    c) CABIN CREW

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    Ab Initio Training: 45 Days

    Greater training duration than regulatory mandate

    Pass Score % mandated by DGCA is 80% vs. IndiGo standard of 90%

    3 strike policy (3 failures resulting in termination)

    2.13 THE INDIGO STORY

    Highly profitable and fastest growing airline in India

    Strong Cash flows

    Comprehensive power by hour (PBH) and maintenance agreements

    Strong Management Superb Product quality recognized by the market place

    Largest low cost airline in India

    Industry leading on-time performance

    99.91% technical reliability.

    2.14 HR VISION

    "To attain organizational excellence by developing and inspiring the true potential of

    companys human capital and providing opportunities for growth, well being and enrichment ".

    2.15 HR MISSION

    To create a value and knowledge based organization by inculcating a culture of learning,

    innovation & team working and aligning business priorities with aspiration of employees

    leading to development of an empowered, responsive and competent human capital

    2.16 HR OBJECTIVES

    a) To develop and sustain core values.

    b) To develop business leaders for tomorrow.

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    c) To provide job contentment through empowerment, accountability and responsibility.

    d) To build and upgrade competencies through virtual learning, opportunities for growth

    and providing challenges in the job.

    d) To foster a climate of creativity, innovation and enthusiasm.

    f) To enhance the quality of life of employees and their family.

    g) To inculcate high understanding of 'Service' to a greater cause.

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    CHAPTER-3

    PAY ROLL SYSTEM IN INDIGO AIRLINES

    The Payroll function of an organization not only ensures that employees are paid accurately

    and on-time but also thrives to achieve optimum efficiency. Organizations are also striving to

    reduce the operating costs of the payroll unction through automation and also be compliant

    with all legal requirements. Payroll processing is the backbone of an organizations employee

    operational and satisfaction focus.

    Indigo pay roll solution geared to leverage global sourcing at each stage of thetransformation journey from process definition, process standardization, consolidation to re-

    engineering. The solutions are designed to provide a robust, scalable and flexible delivery

    engine that influences global skill and economies of scale and hat allows organizations to

    focus on centers of expertise and business partnering.

    Performance of this critical PS component is of vital concern considering the importance of

    the output of the program and dependencies other systems may have to the timely completion

    of the processing of the engine. Most important, it is a reputation concern for an organization

    to be able to compensate its employees on time

    Indigo uses its capabilities across consulting technology and with employees in the :-

    a) Creation of the process delivery backbone

    b) Development of underlying technology support

    c) Comprehensive payroll service delivery from global delivery centre

    Indigo provides organizations with a platform to move away from legacy systems to a

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    State-of-the-art payroll system. Indigo provides the complete hardware and software

    environment hosted within a secure data centre. Indigo also provides ongoing maintenance,

    hardware and software helpdesk support and back-up activities.

    INDIGO PAY ROLL STRUCTURE

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    Indigo Payroll services include:

    Hosting and Migrating

    o Hosting SAP on TCS' hardware and owning SAP Payroll licenses

    o Migrating customers' payroll to TCS' platform

    o Maintaining the SAP payroll application

    o Implementing and maintaining the interfaces between payroll and customers'

    HRMS, Finance, and other applications

    Payroll Administration

    o Build-to-Gross: Computing gross pay/earnings

    o Gross-to-Net: Computing taxes, benefits, and other deductions

    o Post-Payroll Activities: Generating Payroll/Finance files,

    Operational/MIS/Statutory and tax reports, tax deposits/returns

    Advantages of Indigo payroll system:-

    1. Multi-process HRO practice built on sustainable model for delivering HR services in an

    offshore centric model

    2. Flexible and scalable delivery platform to partner with clients in their organic and

    inorganic growth

    3. Capability to deliver comprehensive seamless solutions through excellent cross servicecollaboration across our HR Technology, Consulting and outsourcing practices

    4. Leverage the deep domain understanding acquired and strengthened through Infosys

    HR transformation

    5. Focus on building HR professionals through training certification programs in

    collaboration with external organizations.

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    Many companies decide to outsource payroll administration to other companies. Payroll

    administration companies handle most, if not all, payroll-related tasks for the companies

    they serve. Some payroll administration companies also provide management and human

    resource assistance as well. Many payroll administration companiestailortheir services to

    meet the needs of organizations of all sizes and types. Some even offer on-site help and

    payroll consultations as well.

    Payroll is defined as a method of administrating employees salaries in the organizations.

    The process consists of calculation of salaries and tax deductions of the employees,

    administrating the retirement benefits and disbursements of salaries to employees. It can

    also be called as an accounts activity which undertakes the salary administration of

    employees in the organization.

    Payroll management system encompasses all the tasks involved in paying an

    organizations employees. It typically involves keeping track of hours worked and

    ensuring that employees receive the appropriate amount of pay. It also includes calculating

    taxes and social security, as well as ensuring that they are properly withheld and

    processed. Depending on the company in question, a full range of other deductions may be

    calculated, withheld, and processed as part of payroll administration. Additionally, the

    processing of contractor payments may fall under the umbrella of payroll administration.

    The specific tasks involved in payroll administration tend to vary according to the needs

    of each unique company or organization. For example, some companies have workers that

    receive commissions in addition to salaries. In these companies, including commissions in

    employee salaries is a part of payroll administration. For some companies, it also involves

    assigning exempt or non-exempt status to workers, adding bonuses into paychecks,

    calculating overtime payments, and adhering to applicable employment laws.

    Handling payroll-related problems are part of payroll administration as well. If an

    employee is paid an incorrect amount or a direct deposit fails to go through, both things

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    are payroll administration issues. Likewise tax filing and deduction errors are payroll

    administration matters as well.

    Payroll administration can be very simple, involving the payment of just a handful of

    employees, or very complicated, involving payroll for thousands of employees and

    contractors. In some, very small companies, payroll may be handled by the owner of the

    company or an employee. However, other companies may have many employees to pay

    and keep track of necessitating a well planned, efficient payroll administration system.

    Some companies choose to handle payroll administration in-house, often creating a

    separate department just for the handling of payroll. Often, such organizations purchase

    software to streamline payroll-related tasks. Some companies even have special software

    designed for them, creating a payroll system that is tailored to their unique requirements.

    Administrating the employees salaries is not an easy task, the HR and accounts

    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

    accounting and payroll administration. Payroll refers to the administration of employees'

    salaries, wages, bonuses, net pay, and deductions. It consist of the employee ID, employee

    name, date of joining, 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.

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    CHAPTER -4

    LITERATURE REVIEW

    4.1 Introduction

    Payroll management system encompasses all the tasks involved in paying an

    organizations employees. It typically involves keeping track of hours worked and

    ensuring that employees receive the appropriate amount of pay. It also includes calculating

    taxes and social security, as well as ensuring that they are properly withheld and

    processed. Depending on the company in question, a full range of other deductions may be

    calculated, withheld, and processed as part of payroll administration. Additionally, the

    processing of contractor payments may fall under the umbrella of payroll administration.

    The specific tasks involved in payroll administration tend to vary according to the needs

    of each unique company or organization. For example, some companies have workers thatreceive commissions in addition to salaries. In these companies, including commissions in

    employee salaries is a part of payroll administration. For some companies, it also involves

    assigning exempt or non-exempt status to workers, adding bonuses into paychecks,

    calculating overtime payments, and adhering to applicable employment laws.

    Handling payroll-related problems are part of payroll administration as well. If an

    employee is paid an incorrect amount or a direct deposit fails to go through, both things

    are payroll administration issues. Likewise tax filing and deduction errors are payroll

    administration matters as well.

    Payroll administration can be very simple, involving the payment of just a handful of

    employees, or very complicated, involving payroll for thousands of employees and

    contractors. In some, very small companies, payroll may be handled by the owner of the

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    lodging etc. There are some deductions such as PF, taxes, loan installments or advances

    taken by employee.

    4.2 Major duties of HR in Pay Roll System

    a) Ensures timely and accurate preparation of all Institution payroll operations and worksclosely with the Human Resources Office to ensure that payroll actions are in

    conformance with employment and benefits practices and accounting proceduresb) Oversees preparation of all federal and state payroll tax reports, including quarterly and

    year-end returns; determines taxability of non-wage payments and serves as in- house

    contact for technical tax compliance issues, including tax liabilities of foreign nationals.

    c) Interprets Institution employment policies and government regulations in connection

    with payroll activities and makes recommendations on modifications to senior

    management as appropriate

    d) Handles federal and state agency audits and maintains close contact with ITI andother regulatory agencies to ensure that the Institution has accurate information and is

    in compliance.

    e) Maintains all payroll records, reports, computations and audits, including periodic

    internal audit tests of labor utilization; works closely with internal and external

    auditors to ensure compliance with relevant tax laws and government regulations.

    f) Interfaces routinely with Human Resources on employee benefits issues

    ( deductions, retirement payments, etc.) to ensure timely and accurate processing

    g) Works closely with Management Information Systems on developing payroll

    applications that ensure internal controls and facilitate the implementation and

    maintenance of payroll and HR master files.

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    h) Provides periodic analysis of payroll and disbursement records to ensure thatadjustments are in accord with management's criteria.

    i) Supervises Payroll Office staff and operations; provides on-going assistance to

    adjustments are in accord with management's criteria.

    j) Supervises Payroll Office staff and operations; provides on-going assistance

    to Institution employees in tax-related payroll matters.

    j) Participates in business re-engineering activities to support the establishment andPayroll Methodology .

    4.3 Pay Roll System

    SAP-source is software-that is used in Indigo Airline which can take best of the available

    software to suite client need.

    To build methodical & service oriented approach in execution of Payroll as it is a

    Sensitive activity and needs to be executed as:-

    Timely & consistently

    Correctly to the last detail

    To Fulfill statutory obligations/compliance

    To give complete picture every month to management and employee

    Supportively & predictably

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    Software used in Indigo Airline allows organization to generate pay slips and salary

    register, based on the attendance of the employees taking care of leaves, overtime,

    allowances, loans, advance, bonus, encashment and other standard deductions like PF,

    E.S.IC, Professional Tax, Income Tax, CPF, NHIF, NSSF, PAYE, LST ( for international

    Payroll) etc.

    "The Indigo Airline is on the move to e-enable all HR functions and the employee

    interface. We are in the process of adopting state-of-the art ERP software - SAP, across all

    locations and businesses. While Payroll for over 10,000 employees has already been

    streamlined through SAP into uniform set of standardised fucntionalities, the Group HR is

    reorganising its world class procedures on the concept of "Shared Services," based on the

    capabilities and the best practices embedded in SAP. set of standardised fucntionalities, the

    Group HR is reorganising its world class procedures on the concept of "Shared Services,"

    based on the capabilities and the best practices embedded in SAP.

    4.4 Major Modules in Pay Roll System Software:-

    a) Employee Profile Employee Joining Information.

    Employee Profile.

    Family background details.

    Awards given to Employee and their Children.

    Employee Club Membership Profile.

    Employees extra Circular Activities etc.

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    Overtime on Overtime

    Monthly / Yearly Leave Carry Forward

    d) Employee Transfer, Promotions & Increment

    Transfer Details (Shift / Department)

    Promotion Details (Post / Salary

    e) Payroll Management System

    User defined Salary Heads

    Professional Tax Slab

    Pay slip Generation

    Salary formula

    Create your own Salary Structure

    f) HRD Procedures Final Settlement

    Superannuation

    PF Challan

    Gratuity

    Tax Calculation

    g) Reimbursement Management

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    4.5The payroll module offers following functionality to users:-

    Definition of a multi-location setup for employees with facility of location-wise

    selective payroll processing and reporting. System allows definition of specific

    periods of salary for processing and other time-office related information as shifts,

    holidays, Off, and leave structure of employees.

    Definition of employee departments, categories, grades, designations, salary structure,

    and method of calculation. Salary structure covers for heads of earning, deduction,

    and cost to company (CTC). Also definition of Employee Master holding personnel

    and payroll related information of all employees.

    Specification of perks, benefits, and reimbursements that are paid against voucher with

    facility to impose Limits and reporting of Balance.

    Time office in and out entry that also can have swap card interface. In case of swap

    card, data can be directly picked up to Oracle database.

    Generation of shift schedule considering weekly rotational duties and variable weekly

    off.

    Facility for on line application for leave, leave accounting, recording of outstation

    duties and temporary duties on Gate Pass. There can be adjustments and corrections

    in the date related to leave, time, and overtime.

    Calculation of salary and wages. The calculation can be made for a specific category or

    a specific location and facility of salary transfer to bank of employee. System

    facilitates storing of salary history and reporting on that.

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    Accounting of loans and advances and deductions against them. The loans may be by

    company it self or availed from financial institutions. There is a seamless integration

    with finance module for loan and advance deduction.

    Calculation of arrears, bonus, gratuity, annual payments, retirement, termination etc.

    The arrears are also calculated for leaves sanctioned at a later date. Calculation and

    reporting related to provident fund, insurance, and taxes. The process covers for PF,

    FPF, ESIC, PT, IT and also generates all the standard formats as prescribed by

    respective departments for easy submission. The income-tax related procedure covers

    calculation of provisional and final income-tax liability, recording of investments,

    deduction of TDS, Scheduling of 'Deduction, and generations of reports for filing

    of IT returns also including printing of FORM 16 for employees.

    Generation of monthly salary JV, bank vouchers, and loan payment vouchers.

    Calculation of cost to company (CTC), and estimation of payroll budgets Generation

    and printing of standard letters to employees. This covers letters like appointment,

    joining, confirmation and soon.

    4.6 NEED FOR PAY ROLL SOFTWARE SYSTEM

    The study specifically seeks to answer the following problems in manual payroll process:

    1. Speed in processing payroll tends to be slow.

    2. Prone to mathematical errors that could consume much time than it should and could

    cause financial or legal trouble.

    3. Tallying of time cards is done manually.

    4. Time consuming in double checking the consistency of all the reports.

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    5. Difficult and time consuming in keeping up-to-date in taxes and other deductions.

    6. Storage of files is susceptible to be damaged as well as lost of data.

    4.7 Significance of study .

    1. Speed in processing payroll will have a faster performance by means of decreasing

    the manual input areas.

    2. Mathematical errors will be prevented by automatic computations that the proposed

    system will provide and you may not have to worry about having financial or legal

    trouble.

    3. Tallying of time cards will be done automatically by including a computerized

    employee log-in system in the proposed system which will be responsible in

    computing the time the employee worked.

    4. The proposed system will record all data in all reports at the same time so you can

    make sure they are consistent and it also saves time.

    5. Employers will never have to spend much time in keeping up to date with taxes

    and deductions because the system will be designed updated to such deductions.

    7. Storage of files will be safe and secured with username and passwords and can

    easily be accessed.

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    4.8 HR/Payroll Solution: Integrated vs. Interfaced

    When looking for an HR system, some organizations consider a combined HR/Payroll

    solution.This may come from one vendor (integrated or interfaced), or it may come from

    two vendors (interfaced). What's the difference between an "interfaced" and an "integrated"

    solution? The following is a discussion on the two options, and why the interfaced option

    may be the solution that's best for HR.

    In an integrated database, HR and payroll share all current employee information,

    working from one and the same database. The figure below shows this situation.

    Figure 1. Integrated Database: HR and Payroll share the same database

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    The other option is separate databases for HR and Payroll. An interface is then needed to

    add or update data from one database to the other. In the diagram below, some data can

    move from HR to payroll while other data moves from payroll to HR. The interface can beautomatic and set to update the databases every night or manual where HR clicks a button

    to update when needed.

    Figure 2. Interfaced Solution: Payroll and HR exchange data

    While an integrated system has the benefit of having current data for both HR and Payroll,

    an interfaced HR/Payroll system has its own advantages.

    4.9 Advantages of an interfaced solution between HR and Payroll:

    1. An interfaced solution meets the specific needs of the HR department.

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    Payroll and HR are separate functions that have different needs, and those needs,

    especially on the HR side, can evolve quickly. An integrated HR/payroll system may not

    be easily adjusted to meet the evolving needs because changes on the HR side may

    adversely affect the payroll side. Should this situation arise with an interfaced solution,

    the HR database can be adjusted easily without affecting the Payroll database.

    This would not be easy to do if both HR and Payroll are on one integrated database. It is

    likely that HRs needs will be unmet thereby relegating HR staff back to using

    spreadsheets for their data analysis needs.

    An example of this is HRs usual practice of tracking employee benefit plan enrollment,

    coverage level and benefit plan costs, while Payroll is interested in tracking deduction

    codes and employee deduction amounts. Payroll may want to roll multiple benefit plans

    into a single deduction code, which may conflict with the detailed benefits enrollment

    data that HR needs.

    Another example is organizational analysis. Payroll and Finance may want to create an

    organizational and departmental structure that optimizes financial reporting. HR, on the

    other hand, may want a database supporting an organizational structure that can analyze

    and generate reports based on position type, training needs, or

    health/safety/environmental issues.

    2. An interfaced solution enables HR projects to move forward independently.

    HR projects and Payroll projects may compete for the same resources. For example, if

    HR is introducing a new performance review process and Payroll is changing the

    quarterly accruals, the same staff may be needed to support both projects. And Payroll

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    will almostalways prevail because of urgency of their issues. With an interfaced solution,

    different personnel support HR and Payroll systems, so there is no competition for

    resources.

    3. An interfaced solution provides the best of breed for HR and Payroll

    If a payroll company is offering an integrated HR solution, the HR piece may have

    limited features. Does it have recruiting, applicant tracking, and hiring/onboarding

    functions? Does it track training, licensing and certifications? Does it alert you to when

    these dates are about to expire? It is important that the HR staff conduct a detailed

    analysis of the integrated solutions HR features to make sure HRs needs are sufficiently

    met.

    4. An interfaced solution ensures a support staff that knows their areas of expertise.

    If a payroll company is offering an integrated HR solution, the Payroll support staff may

    be less familiar with HR-related issues and the HR features of its software. When you

    call to describe your HR-related question, you may not get knowledgeable HR support

    staff to help you resolve your HR issue. Furthermore, the Payroll support staff may not be

    current on HR regulatory changes.

    5. An interfaced solution reduces your dependency on your payroll vendor or payroll serviceprovider.

    If for some reason you are unhappy with your payroll vendor or the service that is

    provided, you have the option to change your payroll company without disrupting your

    HRIS system and vice versa.

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    Note that some systems offered by a single vendor claim to be integrated, but in reality

    they are two systems that require data updates from one system to the other.

    When evaluating interfaced HR/Payroll, here are some questions to ask:

    1. How often can the interface be run?

    2. Which fields can be included in the interface?

    3. How many steps are needed to run the interface?

    4.10 The problem and review of related literature

    As computer technology changes at such fast phase, many businesses sectors try to cope up

    by upgrading computer system constantly in order to stay competitive. The multifunction

    ability of technology for its advance system is also an important factor for a company to

    use software. It makes efficient use of the advance technology and has ambition to discover

    more.

    The program also allows the monthly payroll schedule to be calculated

    accurately. Just by having all employees info like name, working hours, wages etc to enter

    in the database. Therefore, payroll can be done with the guide of the program. The system

    is good in for its specialty in the fields of accounting. It is easy to use, effective and

    efficient in organizing and calculating the payroll. There are several suggestion form the

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    Employee of an organization regarding pay roll system implemented in an organization

    such as

    a) The program should accepts employee hours worked.

    b) The program should prepare pay cheques

    c) The program should maintain data on a sequential payroll file

    d) Non-statutory deductions such as union dues and pension plans to be made.

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    INTREPRETATION:- From the above bar graph it can be seen that among 50 employees,

    84% of employees are satisfied with the software system used in organization 16% of

    employees are not satisfied software system whereas we need to give more focus on

    dissatisfied employees.

    b) Satisfaction and dissatisfaction level toward the measurement of the complaintregarding loading of pay sheet in software system.

    LEVEL OF OPTION NO. OF RESPONENTS % OF RESPONDENT

    SATISFIED 45 90

    DISSATISFIED 0 0

    NEUTRAL 5 10

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    INTERPRETATION:- From the above bar graph we can conclude that among 50

    employees 90% of the employee are satisfied by the software measurement of the

    complaint regarding loading of pay sheet in software system whereas we need to focusmore on 10% yet not responded and find out the reason for the same

    c) Reason for satisfaction/dissatisfaction level towards towards the usage of new softwarefor pay roll process.

    LEVEL OF OPTION NO. OF RESPONENTS % OF RESPONDENT

    SATISFIED 38 76

    DISSATISFIED 12 24

    NEUTRAL 0 0

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    INTERPRETATION:- From the above bar graph it can be concluded that among 50

    employees, 76% of the employees are satisfied with towards the usage of new software

    for pay roll process and calculation whereas we need to give more focus on 24%

    employees dissatisfied.

    d) Reason for satisfaction/dissatisfaction level towards the measurement of complaintrectification.

    e) INTERPRETATION:- From the above bar graph it can be seen that among 50employees, 40% of the employees are satisfied the measurement of complaint

    LEVEL OF OPTION NO. OF RESPONENTS % OF RESPONDENT

    SATISFIED 26 40

    DISSATISFIED 5 10

    NEUTRAL 25 50

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    rectification by the software version whereas we need to focus more on the 10 %

    dissatisfied and find out reason for 50% yet not responded.

    f) Reason for satisfaction/dissatisfaction level towards the team coordination withsoftware technology team.

    LEVEL OF OPTION NO. OF RESPONDENT % OF RESPONDENT

    YES 48 96

    NO 2 4

    g) INTERPRETATION:- From the above bar graph it can be concluded that among 50employees ,96% of the employees are satisfied towards the team coordination with

    software technology team whereas we need to focus more on 4% dissatisfied.

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    h) Is the organization maintains the record as per government norms.

    LEVEL OF OPTION NO. OF RESPONDENT % OF RESPONDENT

    YES 56 100

    NO 0 0

    INTERPRETATION:- From the above bar graph it can be seen that among 50 employees,

    100% of the employees are satisfied by the maintenance of all reports by the organizationaccording to the government norms and no case is reported against the organization till date of

    violation of government rule and policy from the respondents.

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    i) Confidentiality in maintaining the employees personal details in an organization by theconcerned department.

    INTERPRETATION:- From the above bar graph it can be concluded that among 50

    employees 92% of the employees are satisfied by the confidentiality of maintaining the

    employees personal details by the concerned department whereas we need to give more focus

    on 8% dissatisfied employees.

    LEVEL OF OPTION NO. OF RESPONDENT % OF RESPONDENT

    YES 46 92

    NO 4 8

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    j) The way in which the employees interface with H.R. department for the pay rollprocess.

    INTERPRETATION:- From the above bar graph it can be seen that among 50 employees 64%

    of the employee are satisfied by interface with H.R. department for the pay roll process H.R.whereas we need to focus more on the 36% dissatisfied.

    LEVEL OF OPTION NO. OF RESPONDENT % OF RESPONDENT

    YES 32 64

    NO 18 36

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    k) Is the access to payroll and personnel records adequately controlled?

    INTERPRETATION:- From the above bar graph it can be concluded among 50 employees

    94% of the employee is satisfied with the access to payroll and personnel records is

    adequately controlled where as we need to give more focus on the 3% employees dissatisfied.

    LEVEL OF OPTION NO. OF RESPONDENT % OF RESPONDENT

    YES 47 94

    NO 3 6

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    l) Does the procedure implemented for pay roll system in an organization ensure staffleaving the company is cancelled form the pay roll system?

    INTERPRETATION:- From the above bar graph among 50 employees 91% of the employee

    are satisfied with the procedure implemented for pay roll system in an organization ensure staff

    leaving the company is cancelled form the pay roll system whereas we need to give more

    focus on the 9% dissatisfied employees.

    LEVEL OF OPTION NO. OF RESPONDENT % OF RESPONDENT

    YES 43 91

    NO 4 9

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    n) Is the H.R. department complying with provision of the federal grants and otheragreement regarding pay roll budget, pay and fringe benefit?

    INTERPRETATION:- From the above bar graph it can be seen that among 50 employees 90%

    of the employee are satisfied with the H.R. department complying with provision of the

    federal grants and other agreement regarding pay roll budget, pay and fringe benefit whereas

    we need to give more focus on the 10% dissatisfied employees

    LEVEL OF OPTION NO. OF RESPONDENT % OF RESPONDENT

    YES 45 90

    NO 5 10

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    q) Reason for satisfaction/dissatisfaction level toward the delivery of the pay roll report tothe Employee.

    INTERPRETATION:- From the above bar graph it can be concluded that among 50

    employees 60% of the e employeesare satisfied by the delivery provided by pay roll software

    system in Indigo Airline and we need to give more focus on 10% employees dissatisfied and

    find out the reason for 30% employees who not yet responded.

    LEVEL OF OPTION NO. OF RESPONENTS % OF RESPONDENT

    SATISFIED 30 60

    DISSATISFIED 5 10

    NEUTRAL 15 30

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    CHAPTER- 6 FINDINGS & SUGGESTIONS

    FINDINGS:-

    1) The effectiveness of the existing software system in Indigo Airline .is

    measured by using the following variables:-

    Software which is implemented in an organization

    Import of data in software

    Software calculation and complaint rectification

    Accept & implement change

    Flexibility

    Company policies

    Education &Computer Skills

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    b) 92% of the Employees are satisfied the way with which confidentiality maintained

    by organization regarding personal detail of Employees and we need to more

    focus on the 8% Employees dissatisfied.

    c) 64% of the Employees are satisfied with the interaction of H.R. in the pay roll

    system and we need to more focus on 36% Employees dissatisfied

    d) 91% of the Employees are satisfied with the pay roll system in a organization

    which ensure staff leaving the company is cancelled from the pay roll system and

    we need to more focus on the 9% Employees dissatisfied.

    e) 88% of the Employees are satisfied with the term and condition in the pay roll

    system comply with the labor law and we need to more focus on 4% Employees

    dissatisfied where as 8% Employees did not responded yet.

    f) 90% of the Employees are satisfied with the H.R. department complying with the

    provision of the federal grants and other agreement regarding pay roll budget, pay

    and fringes benefit and we need to more focus on the 10% of the Employees

    dissatisfied.

    g) 40% of the Employees are satisfied with the measurement of complaint

    rectification and we need to more focus on 10% dissatisfied and 50% employees

    did not responded yet.

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    SUGGESTIONS: - Following are the suggestion on the basis of findings

    a) In order to improve the Software skills of employees the organization should create

    more awareness and to provide feedback regularly to the employees about software

    system.

    b) Proper training should be given to the employees, in order to increase their

    knowledge about the usefulness of the software system.

    c) Top management shall continually review the software according to the employees

    requirements, which shall be seen as positive support to the system by the

    employees.

    d) After software testing, if there are any changes, the employees should be informed

    by the software technology team.

    e) Delivery of payment to the employee should be well on time by the department.

    f) Technological assessment of pay roll software system should be done quarterly by

    an expert in an organization

    g) Employees complaint should be registered properly and immediate action should

    be taken by the concerned authority.

    h) The interface between the Human resource department and pay roll system should

    be widen and more regulatory control should be given to H.R. department to ensure

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    that the organization is concerned toward the welfare of the Employees and thereby

    productivity of an organization also enhanced.

    i) Confidentiality in an organization regarding Employees personal detail and other

    related information which is recorded in pay roll system software should be

    maintained and H.R. should take the responsibility for the same.

    j) Term and condition in the pay roll system should be amended regularly as per the

    labour law by the H.R .the organization.

    k) Policies and strategy made by the H.R. department related to the incentive for

    performance etc. should be complying with the provision of federal grants and

    other agreement regarding pay roll budget, pay and fringes benefit.

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    CONCLUSION

    The study had confirmed that the company is having a good interface level between

    account and H.R. department in the organization

    From this study, it is found that majority of the workers were satisfied with Software

    Used in an organization.

    To make the software system more efficient and excellent, the company should give

    Importance to the employees suggestion related to improvement of software used in payroll system and thereby makes their software more effective and adequate.

    To create awareness among employees and it shall consider some of the ways and means

    Suggested by the employees like addition of parameters such as short cut for calculation

    PF, ESI, TAX etc.

    Dependability and conducting regular training program on the software usage for the

    employees in an organization

    H.R. department should be given more regulatory power to analyze the proper

    Functioning of the pay roll system and thereby widen up the interaction between finance

    and H.R. department.

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    I hope that the suggestion given in the report may be implemented in future course for

    the benefit of the employees and the company.

    The Company should conduct the similar type of research at regular interval to know

    the changing softwares and to know about the latest technology like Baan software

    ANNEXURE

    a) Bibliography :-

    1) DeCenzo, D. A. and Robbins, S. P. Fundamentals of Humanb

    Resource Management. John Wiley

    2) Dessler Gary (2004). Human Resource Management. Pearson

    Education

    3) Henderson, Richard,( 2004) Compensation Management:

    rewarding performance Princeton Hall of India pvt. Ltd.

    b) Website:-

    1) www.goindigo.com

    2) www.google.com

    3) www.saphr.com

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    http://www.goindigo.com/http://www.goindigo.com/http://www.google.com/http://www.google.com/http://www.saphr.com/http://www.saphr.com/http://www.goindigo.com/http://www.google.com/http://www.saphr.com/
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    QUESTIONNAIRE

    Q1) Are the policies and procedure relevant to payroll cycle current and in writing?

    a) Yes

    b) No

    c) Comment, if any

    Q2) Are these pay roll policies clearly stated and systematically communicated?

    a) Yes

    b) No

    c) Comment, if any

    Q3) Do the policies and procedure support internal control?

    a) Yes

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    b) No

    c) Comment, if any

    Q4) Are changes to master pay roll file approved and documented?

    a) Yes

    b) No

    c) Comment, if any

    Q5) Are appropriate regulation being followed in regard to payroll withholdings, wages and hours and

    other federal, state and local requirement concerning employments?

    a) Yes

    b) No

    c) Comment, if any

    Q5) Are the report that provide the details of the pay roll amount charged to the departments account

    reviewed and compared to a copy of the approved standard time report by someone who didnt

    prepare the standard report?

    a) Yes

    b) No

    c) Comment, if any

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    Q6) Are the salaries and wages are paid by warrant?

    a) Yes

    b) No

    c) Comment, if any

    Q7) Are the written authorization from responsible person outside the payroll department required

    for:-

    a) Name added to and deleted from the payrolls?

    a. Yes

    b. No

    c. Comment, if any

    b) Individual wage or salary or rate changes?

    a. Yes

    b. No

    c. Comment, if any

    Q8) Are individual employee time and attendance record:

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    a) Prepare and sign by each employee for each pay period?

    a. Yes

    b. No

    c. Comment, if any

    b) Sufficiently detailed to show time charges to assignment, leave and administration?

    a. Yes

    b. No

    c. Comment, if any

    c) Reviewed and signed by each employees supervisor?

    a. Yes

    b. No

    c. Comment, if any

    d) Reconciled and with centralized time and attendance record?

    a. Yes

    b. No

    c. Comment, if any

    Q9) Has prescribed system been developed in writing to accrue and use vacation, sick leave and

    compensatory time

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    a) Yes

    b) No

    c) Comment, if any

    Q10) Are procedure adequate for controlling over time wages and supervisory control of overtime?

    a) Yes

    b) No

    c) Comment, if any

    Q11) Are the person who performed the following function independent of each other

    approve of hours worked

    preparation of pay roll

    distribution of pay

    a) Yes

    b) No

    c) Comment, if any

    Q12 Is the current payroll reconcile to the previous pay roll?

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    a) Yes

    b) No

    c) Comment, if any

    Q13) Are the calculation of prepared payrolls rechecked on a test basis?

    a) Yes

    b) No

    c) Comment, if any

    Q14) Have procedure been established for year end cut off to ensure that pay roll expenditure are

    recorded in the appropriate fiscal year?

    a) Yes

    b) No

    c) Comment, if any.

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