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 feedback 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 employees 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 Maslows 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 employees 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 dont 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
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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) Membership of social/cultural clubs
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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 supporting financial benefits to the family of the
bereaved employees. However, companies covering these cost through appropriate
insurance policies like, Medical and life insurance.
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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 members.
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
months salary of the employee.
Special Allowance
Special allowance such as overtime, mobile allowances, meals, commissions,
travel expenses, reduced interest loans; insurance, club memberships, 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
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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.
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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
support of skillful, talented and happy workforce.

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o The sound compensation system is hallmark of organizations 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 administrators.
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 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.
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
Which are provident fund (12%) of the salary, taxes and other deductions.

Deductions such as tax and loan/advances taken by the employee from

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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 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.
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 Accounting
Payroll accounting 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 Administration
Payroll Administration 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. Employees 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 terms 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
contact 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 joins 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:
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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 feedback
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

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ORIGIN OF THE HITAVADA

The purpose of every newspaper is to spread awareness and actual information in
the society. The first major newspaper in IndiaThe Bengal Gazettewas 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 ones 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.
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 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 Account

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 upcoming 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 its
functioning with the help of THE HITAVADA.
To understand the role of media for cosumer
awareness and publicizing the basic needs and
awareness through advertisements.
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
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Bhilai
Rajanadgaon
Bilaspur
Konta
Surajpur
Raigarh
Dantewada etc.

DESCRIPTION
ROLE OF NEWSPAPERS IN COMPANYS 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 advertisements
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 Advertise 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
Supports 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
advertisements in newspapers like THE HITAVADA huge response has been
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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 terms 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.
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 Its 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
accounts
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

37 | P a g e

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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