Internship Project of Hero Cycles Pvt Ltd

1 | P a g e
UNIVERSITY OF HYDERABAD
SCHOOL OF MANAGEMENT STUDIES
PROJECT REPORT ON
PAYROLL MANAGEMENT AND WELFARE MEASURES OF HERO CYCLES, BIHTA,
PATNA
Submitted By:
Kumar Anubhav Deep
Masters of Business Administration (MBA)
School of Management Studies, Hyderabad Central University
Hyderabad, Telangana

2 | P a g e
ACKNOWLEDGEMENT
Simply put, I could not have done this work without the help and
support I received from the HERO CYCLES, PATNA. Everybody is
very friendly and cheerful and no one could never feel stressed out
or burned out in such a wonderful work culture. First of all I would like
to thank my guide Mr.Nirbhay Singh Nahar (Senior HR Manager)
Hero Cycles, Patna and Mr.Rajesh Kumar (General Manager,
Operations), Hero Cycles, Patna. He supported me throughout the
project with utmost co-operation. I am very much thankful to you sir,
for sparing your precious and valuable time for me and for helping me
in doing this project. I express my gratitude to my faculty guide Dr.
Sapna Singh Mam, Associate Professor, School of Management
Studies, for his valuable guidance, which helped me in preparing this
project report. I place a deep sense of gratitude to my family members
and my friends who have been constant source of inspiration during
the preparation of this project work.
Kumar Anubhav Deep
MBA Second Semester
(14MBMA63)
University Of Hyderabad

3 | P a g e
DECLARATION
This is to certify that the project titled “Payroll Management and Welfare
Measures of Hero Cycles, Bihta,Patna ”has been done and is a bonafide
work completed by Kumar Anubhav Deep(Enrolment Number
14MBMA63), in partial fulfilment of the requirement of the Masters of
Business Administration (MBA).
I hereby declare that this project work is the result of my own efforts which
I made in doing work in the bank and has not copied from any other source.
I have taken help from various sources to gather necessary information to
continue my project and the research on the above topic. Some of the
references from which information is taken are given in the reference
section of this report.
This work has not been submitted earlier at any other university or institute
for the award of the degree.
Kumar Anubhav Deep
14MBMA63
University Of Hyderabad

4 | P a g e
Index
Executive Summary…………………………………………………………….7
Introduction of Hero Cycles…………………………………………………11
Hero Group…………………………………………………………………………15
Need, Objectives and Limitations of study…………………………..24
Review of literature of Hero Cycles …………………………………….26
Research Methodology of Hero Cycles………………………………..43
Analysis and Interpretations…................................................46
Payroll and Attendance System in Hero Cycles……………………60
Introduction of Welfare Measures in Hero Cycles……………….63
Hero Cycles Production Process ………………………………………...66
Findings and Suggestions…………………………………………………….67
Conclusion…………………………………………………………………………..71
Bibliography…………………………………………………………………………72
Questionnaires…………………………………………………………………….74

6 | P a g e
Certificate
This is to certify that the project entitled “Payroll Management and
Welfare Measures in Hero Cycles” submitted by “Kumar Anubhav Deep”
in partial fulfilment of the requirements for the award of “Master in
Business Administration” at “University Of Hyderabad” is an authentic
work carried out by him under my supervision and guidance.
To the best of my knowledge the matter embodied in the project has not
been submitted to any other university/ institute for the reward of any
degree.
Faculty Guide
(University Of Hyderabad)

7 | P a g e
EXECUTIVE SUMMARY
PAYROLL MANAGEMENT IN HERO CYCLES
What is payroll management?
Payroll Management can be defined as the administration of the financial
record of employees' salaries, wages, bonuses, net pay, and deductions.
An employer, regardless of the number of workers they employ, must
maintain all records pertaining to payroll taxes (income tax withholding,
Social Security and federal unemployment tax) for at least four years after
the tax becomes due or is paid, whichever is later. Altogether, 20 different
kinds of employment records must be kept just to satisfy federal
requirements.
Income Tax Withholding Records
1. Name, address, and Social Security number of each employee
2. Amount and date of each payment for compensation
3. Amount of wages subject to withholding in each payment
4. Amount of withholding tax collected from each payment
5. Reason that the taxable amount is less than the total payment
6. Statements relating to employees' nonresident alien status
7. Market value and date of noncash compensation
8. Information about payments made under sick-pay plans
9. Withholding exemption certificates
10. Agreements regarding the voluntary withholding of extra cash
11. Dates and payments to employees for non-business services
12. Statements of tips received by employees
13. Requests for different computation of withholding taxes
Social Security (FICA) Tax Records
1. Amount of each payment subject to FICA tax

8 | P a g e
2. Amount and date of FICA tax collected from each payment
3. Explanation for any difference
Federal Unemployment Tax (FUTA) Records
1. Total amount paid during calendar year
2. Amount subject to unemployment tax
3. Amount of contributions paid into the state unemployment fund
4. Any other information requested on the unemployment tax return
Payroll for a small firm is a simple task with a good one-write system. Any
office supply store can show samples of one-write systems, which most
accountants recommend because they reduce errors and save time in
making payroll entries.
Payroll management can be quite a challenge for the new business
owner. There are many federal and state laws regulating what they have
to track related to payroll. Failure to do so could result in heavy fines--or
worse.
Many business owners use outside payroll services. These companies
guarantee compliance with all the applicable laws. This keeps the
business owner out of trouble with the law and saves time that can be
devoted to something else in the business.

9 | P a g e
PAYROLL MANAGEMENT SYSTEM IN HERO
CYCLES
Effective software systems contain two basic systems operating in
conjunction: an evaluation system and a feedback system. The main aim of
the evaluation system is to (if any). This gap is the shortfall that occurs
when performance does not meet the standard set by the organization as
acceptable. The main aim of the feedback system is to inform the employee
about the quality of the software provided by the organization. (However,
the information flow is not exclusively one way. The Technology team also
receives feedback from the employee about software problems, etc.)
One of the best ways to appreciate the purposes of performance appraisal
is to look at it from the different viewpoints of the main stakeholders: the
employee and the organization. Employee Viewpoint From the employee
viewpoint, the purpose of software used to calculate payroll process in
four-fold:
(1) Tell me what you want me to do
(2) Tell me how well I have done it with software used in the organization
(3) Help me improve my software skills
(4) Reward me for doing well.
Organizational Viewpoint From the organization's viewpoint, one of the
most important reasons for having software is to establish and uphold the
principle of accountability. For decades it has been known to researchers
that one of the chief causes of organizational failure is "non-alignment of
responsibility and accountability." Non-alignment occurs where employees
are given responsibilities and duties, but are not held accountable for the
way in which those responsibilities and duties are performed. What
typically happens is that several individuals or work units appear to have

10 | P a g e
overlapping roles. 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.

11 | P a g e
INTRODUCTION OF HERO CYCLES
HERO-There is always a better way
Hero", the brand name symbolizing the steely ambition of the Munjal
brothers, came into being in the year 1956. From a modest manufacturer
of bicycle components in the early 1940's to the world's largest bicycle
manufacturer today, the odyssey was fuelled by one vision - to build long-
lasting relationships with everyone, including workers, dealers and
vendors. This philosophy has paid rich dividends through the years. Hero, a
name synonymous with two wheelers in India is today a multi-unit, multi-
product, geographically diversified Group of companies. Through fully
integrated operations, the Munjalsroll their own steel, make critical
components such as free wheels for their bicycles, and have the foresight
to simultaneously diversify into myriad ventures, like product designing, IT
enabled services, finance and insurance, just to name a few. Like every
success story, Hero's saga contains an element of spirit and enterprise; of
achievement through grit and determination, coupled with vision and
meticulous planning. Throughout its success trail, the Hero Group and its
members have displayed unwavering passion of setting higher standards
for themselves and delivering simply the best to their customers. The Hero
Group philosophy is:
"To provide excellent transportation to the common man at easily
affordable prices and to provide total satisfaction in all its spheres of
activity."

12 | P a g e
Thus apart from being customer-centric, the Hero Group also provides its
employees with a fine quality of life and its business associates with a total
sense of belonging.
"Engineering Satisfaction" is the prime motive of the Hero Group and it has
become a way of life and a part of the work culture of the Group.
This is what drives the Group to seek newer vistas, adopt faster technology
and create quality driven products to the utmost satisfaction of customers,
partners, dealers and vendors. Today the Hero Group has a number of
accolades and achievements to its credit yet consumer requirements and
newer technologies provide fresh challenges every day, and at Hero the
wheels of progress continue to turn...
Vision
"We, at the Hero Group are continuously striving for synergy between
technology, systems and human resources to provide products and
services that meet the quality, performance, and price aspirations of the
customers. While doing so, we maintain the highest standards of ethics and
societal responsibilities, constantly innovate products and processes, and
develop teams that keeps the momentum going to take the group to
excellence in everything we do."
Mission
"It’s our mission to strive for synergy between technology, systems and
human resources, to produce products and services that meet the quality,
performance and price aspirations of our customers. While doing so, we
maintain the highest standards of ethics and societal responsibilities.
Values Customer Focus
We believe in walking the extra mile in delivering quality to meet the
customers' expectations, both expressed and implied. We do this for both
external and internal customers.

13 | P a g e
Innovation and Agility
We continuously seek ways to improve our services and processes,
anticipating changes and responding proactively.
Individual Dignity and Team Work
We treat people with dignity, care for our colleagues, collaborate without
boundaries and contribute wherever we can.
Ethics and Integrity
We are fair in our dealings, respect the law of the land and follow the
highest level of intellectual, moral, financial and professional conduct.

14 | P a g e
HISTORY OF HERO CYCLES
Hero Cycles is a product of this philosophy. The philosophy that installs
commitment, team work and foresight. Hero’s colossal journey started
before independence. The four Munjal brothers, hailing from a small town
called Kamalia, now in Pakistan, are the men who are behind the mission.
Brotherhood apart, what knit the men together was the wealth of will,
integrity, ambition & determination. In the year 1944, they decided to start
a business of bicycle spare parts in Amritsar. It is modest beginning and the
next 3 years saw the business grow rapidly. But the dark clouds of partition
eclipsed their plans of the future. With renewed vigor and optimism, the
operational base was shifted to Ludhiana. By 1956, the brothers had begun
manufacturing key components of bicycles and as a logical way forward,
began to assemble the entire cycle at their manufacturing plant in
Ludhiana. In the early days, the plant had a capacity for 25 cycles per day.
Over the next few years, the Bicycle Unit started growing in stature and
size, attracting skilled engineers, technocrats, administrators and
entrepreneurs. From a modest beginning of mere 639 bicycles in the year
1956, Hero Cycles produced over 18500 cycles a day today, the highest in
global reckoning. With the 48% share of the Indian market, this volume has
catapulted Hero in the ‘Guinness Books of World Records’ in 1986 and edge
over global players is being maintained. A tiny acorn has now become a
mighty Oak. From cycle to two - wheelers were a natural step, and the Hero
Group came into being. The Hero Group, today, is a vast conglomerate of
companies, either in the form of collaborations, joint ventures or fully
owned subsidiaries, with more than Rs. 10000 Crore turnover annually.
Hero Group, besides being the world’s largest manufacturers of bicycles,
motorcycles and chains to this date, has diversified into newer segments
like Information Technology, IT Enabled Services and Financial Services.

15 | P a g e
HERO-GROUP
The Hero Group has done business differently right from the inception
and that is what has helped us to achieve break-through in whatever
product category we have ventured in. The Group’s low key, but focused,
style of management has earned dealers, as also worldwide recognition.
The growth of the Group through the years has been influenced by the
number of factors. The Hero Group through the Hero Cycles Division was
the first to introduce the concept of just-in-time inventory. The Group
boasts of superb operational efficiencies. Every assembly line worker
operates two machines simultaneously to save time and improve
productivity. The fact that most of the machines are either developed or
fabricated in-house, has resulted in low inventory levels. In Hero Cycles
Limited, the just-in-time inventory principle has been working since the
beginning of production in the unit and is functional even till date. The
vendors bring in the raw material and by the end of the day the finished
product is rolled out of the factory. This is the Japanese style of
production and in India. Hero is the first company to have mastered the
art of the just-in-time (JIT) inventory principle.
The company has fulfilled its social obligation, charged with their mission
nationalistic fervor, the Hero Group has always been actively involved in
Social and Medicare activities, such as providing medical facilities for the
under privileged. Hospitals, Heart Research Foundation and Mobile
Medical Vans help to fulfill this objective. Hero also runs schools and
colleges, maintains parks and public facilities.

16 | P a g e
Global Gearing > Exports
 Hero Cycles
 Hero Honda Motors
 Hero Motors
 Hero Corporate Service Limited
(Hero Mindmine, Munjal eSystems, NsurePlus)
 Hero Management Service Limited (HEROITES)
 Munjal Showa Limited
As early as in the 1960s' very few Indian bicycle manufacturers were
interested in exports. However, the Hero Group's foray into the overseas
markets in 1963 pioneered Indian exports in the bicycle segment. It was a
move prompted essentially by the need to remain attuned to the global-
market. While initial exports were restricted to Africa and the Middle
East, today more than 50 percent of the exports from

17 | P a g e
Hero Cycles Limited meet the demands of sophisticated markets in
Europe and America. This is primarily because of appropriate product
development and excellent quality that Hero offers. The Group has been
continuously upgrading technology and has set up special units - like
Gujarat Cycles Limited (now Munjal Auto Industries Limited), to meet
international quality standards.
Munjal Auto Industries Limited has state-of-the-art equipment’s imported
from Europe and Taiwan. The unit is designed to match international
standards and is an Export Oriented Unit (EOU). Its products are supplied
to the International Markets of developed countries like United Kingdom,
Germany, and France etc.

18 | P a g e
Dr. Lall was the elder brother, and after family property division Cycles
division came under control of the youngest Brother Mr. O.P.Munjal, who
contributed in the following manner:
Mr. O P Munjal, Chairman – Hero Cycles Ltd
Date of
birth
: 26th August 1928
Residing
place
: Ludhiana (Born at Kamalia in Pakistan)
Education
: Undergraduate (from the District
Kamalia in Pakistan)
Mr. O P Munjal has been the Chairman of the group’s flagship company
Hero Cycles Ltd. He has also been on the Board of Directors of the group
companies, which includes – Hero Honda Motors Ltd, Hero Motors Ltd,
Munjal Kiriu India (P) Ltd and ZF Hero Chassis Systems.
Mr. O.P Munjal has been truly a visionary and a first generation
entrepreneur. He has spearheaded the entire initiative of transforming
Hero Cycles from a local player to an international brand. Under his
leadership the group’s business and revenues have grown manifolds. Today
the group has emerged as a large conglomerate with diversified interests
and joint ventures with global players.
His contribution to towards the economic and social developments are
briefly described, as under –
Economic development
Mr. Munjal started Hero Cycles in 1956 with limited resources and no
technical qualification. He had migrated from Pakistan and set up Bi-cycle
parts unit in Ludhiana. He had before him the formidable challenge of
providing a low cost means of transportation at an affordable cost for the

19 | P a g e
Common man the AAM ADMI. He achieved that successfully and today
Hero Cycles features in the Guinness Book of World record for
manufacturing 18500 Bi-cycles daily. Mr. Munjal had pioneered the
concept of, off the assembly line in India and a pull based supply system,
which was sheerly driven by the constraint of capital. Inspite of rapid
industrialization he maintained Hero Cycles as a labour intensive unit since
for him the employees were an extended family. Most of them have joined
and retired from Hero Cycles, which is a no mean achievement.
The growth and prosperity of Hero Cycles was not just restricted to the
promoters but was shared with the vendors, dealers and other associates.
The loyalties developed are mutual and everlasting. Today Ludhiana is
synonymous with Hero Cycles and a large population is dependent either
directly or indirectly on Hero Cycles.
As part of corporate social responsibility Mr. Munjal is known for his
highest contribution to the exchequer of the Punjab State Govt. He has
been accredited with the ‘Samman Patra’ for his contribution made to the
state for several years.
Social development
The success of a man is too gauged not purely from his wealth/ prosperity
or economic standing but also on what he gave back to society. Mr. Munjal
has made significant contribution to the society by establishing many
schools, colleges / institutions and hospitals benefiting the society at large.
Mr. Munjal has nurtured schools and institutions in and around Ludhiana -
over 20,000 children gets education every year. There are concessions for
students from economically weaker sections and their employees.
He has set up a world class medical facility in the name of ‘Dayanand
Medical College’ (DMC). The hospital is equipped with most modern
equipment and facilities. There is a highly experienced/dedicated team of

20 | P a g e
Doctors to provide high quality treatment at an affordable cost.
Awards and accreditations
 Recognition / honors from the former Presidents of India - Dr.
Radhakrishnan, Sri V V Giri, Sri Giani Jail Singh and Dr. Abdul Kalam
 Udyog Rattan Award from Capt. Amrinder Singh – former CM of Punjab
for outstanding contribution towards economic development of the
State (Punjab)
 ‘Samman Patra’ award towards highest contribution to exchequer of the
state Govt. between year 1995-1996 to 1999-2000
 ‘Indira Gandhi National Unity’ award to recognize his social contribution
 ‘Punjab Rattna’ award to commemorate his contribution to the state
economy.
Om Prakash Munjal (left hand side in the above photo), chairman of
bicycle giant Hero Cycles Ltd, died after a heart attack in Ludhiana. He was
survived by a son, four daughters and 10 grandchildren.
OP, as he was famously known (his older brother Brijmohan Lal is fondly
called BM), was born on 26 August 1927 in Kamalia, in the then undivided
Punjab. It is now in Pakistan.

21 | P a g e
His father Bahadurchand owned a small wholesale shop in the village where
farmer’s grains were sold. A nationalist, OP spent most of his initial days
doing community service until one day his elder brother, Dayanand, asked
him to join the business. That also meant he could not study beyond the 10th
grade.
The family shifted base to Amritsar and then to Ludhiana in 1944, before
India’s Independence in 1947, in search of greener pastures. India needed
affordable mobility for its growing population and the Munjals were quick
to understand that. They set up a business that made bicycle parts, but
wanted to do more. The family won a contract from the Punjab government
to make cycles in 1956.
While BM is often credited with building the group as it exists today, OP
was instrumental in getting the group’s fundamentals right.
“Brijmohan used to say that people often underestimate his brother and
overestimate him,” said Gita Piramal, a business historian and post-doctoral
fellow at Oxford University.
He built the firm’s distribution network, a rarity in those days.
“His role was very important in areas such as accounting and putting systems
in place. Most importantly, he will be remembered for setting up the sales
machinery of Hero Cycles,” Sunil Kant Munjal, joint managing director,
Hero MotoCorp, said in a phone interview. Sunil was BM’s son.
Both the brothers travelled across India and built relationships with vendors
and dealers that support the family and its business to date.
In fact one story, according to a person who still has business interest with
the family, goes like this: A dealer partner had lost a sizeable chunk of his
business in Jammu when a truck carrying Hero Cycles caught fire. The
remains had no value and the dealer wanted to shut shop.
“The family asked him to come with the ashes and returned him the money
that he had paid for the cycles,” this person said, requesting anonymity.

22 | P a g e
It was gestures like these that helped the family when Japanese automaker
Honda Motor Co. was looking for a local partner to build motorcycles in
India, Sunil Kant Munjal said in a 2013 interview
“After they did choose Hero as a partner, we asked them why they picked
our company,” he said. “The responses were quite interesting. They said four
or five things. They said we like the way you treat your people. Secondly,
they said we like the way you treat your suppliers, which was in some sense
a Japanese thing to do,” Sunil Munjal had said.
In 1986 Hero Cycles was recognized by the Guinness Book of World
Records as being the world’s largest maker of bicycles. By now, the B.M.
Munjal family was looking after the then Hero Honda Motors Ltd, the
group’s automotive business.
The O.P. Munjal family also tried its hand at the automotive sector, but with
little success. In 1996, Hero Motors partnered with BMW to manufacture
motorcycles in India, but the deal fell through as the Hero Group had a non-
compete agreement with Honda.
A partnership with Italy’s Aprilia to make and sell scooters was called off
after Piaggio and Co. SpA acquired the Italian manufacturer in 2005.
In 2010, Hero MotoCorp Ltd, run by BM’s sons Pawan Kant and Sunil Kant,
split with long-time partner Honda Motor Co.
From the time the Munjal brothers set shop in Amritsar to sell bicycle parts,
they have stuck together, said Piramal.
“In an attempt to reduce tensions, elders kept young minds busily focused
on work rather than on each other,” Piramal said. “New companies or
divisions were floated for every incoming blueblood.”
“Frankly, they believe in a web of relationship,” she added.
Until 2011, the larger Munjal family had cross-holdings in each other’s
companies, but a settlement that year saw these being unwound. Pankaj
Munjal, O.P. Munjal’s son, now owns most of Hero Cycles.

23 | P a g e
Perhaps the reason the Hero Group stayed together when so many business
houses split messily was because they, unlike the Munjals, probably didn’t
take relationships as seriously.
“We were fortunate that it was done in a very friendly manner and it was
done very proactively,” Sunil Munjal said. “It is all about the values,
practising the motherhood statements. After all, we all grew up in one house
in Ludhiana.”
“He is a big loss to the family, group and above all the city of Ludhiana. He
was one of the leaders of the city.”
After the death of O.P.Munjal Hero Cycles, world's largest bicycle
manufacturer, has appointed Pankaj Munjal (Son of O.P.Munjal) as its
chairman and managing director. He succeeds the co-founder of Hero
Cycles, Om Prakash Munjal, who led the Ludhiana-based company for more
than 60 years.
Hero Cycles had also recently announced the appointment of Mr K.K. Vij as
Chief Executive Officer. Vij has been earlier associated with Eicher Motors
and Escorts Construction Equipment’s.

24 | P a g e
Pankaj Munjal had recently announced Hero Cycles' entry in European
market with special focus on UK and Germany and setting up of an
assembly plant for high-end cycles in Poland. As part of his corporate
strategy, Mr Munjal has announced that the group will aim to increase its
current turnover from Rs 3000 crore to Rs 8000 crore by 2018.
The company has a manufacturing capacity of 7.5 million bicycles per
year, with its unit in Ludhiana (Punjab), Bihta (Bihar) & Ghaziabad (UP).
The company has a highly integrated plant in Ludhiana which produces
19,000 cycles every day. It also manufactures automotive rims and
various other auto components. The company produced 5.5 million
bicycles in FY14
Need For the study:-
The following are the needs to do the research at Hero Cycles Ltd.
 To check existing system is effective or not and also employees are
satisfied with current system or not.
 To measure the satisfaction level of the employees and workers and role
of technology using the software named SAP.
Objectives
 To know the role of HR in payroll and the payroll software’s used in the
organization.
 To know the basic functions of HR manager in manufacturing plant.
 To determine the appropriate working environment for workers in
manufacturing plant.

25 | P a g e
 To review the effectiveness of the Payroll process of Hero Cycles.
 To find about the software’s used in Payroll process and satisfactory level
of employees who are handling software’s.
 To analyze the user friendliness of the software.
 Dealing with conflict management and shift management of workers in
manufacturing plant.
Limitations of the study
 Workers were present on contractual basis.
 Most of the respondent feared to give their name.
 Most of the employees were busy with their tight work and they don’t want to
be disturbed.
 Since its new plant so employees are very limited and duration is limited.

26 | P a g e
REVIEW OF LITERATURE OF HERO CYCLES
INTRODUCTION OF PAYROLL SYSTEM
Payroll system is the heart of any Human Resource System of an
organization. The solution has to take care of the calculation of salary as
per rules of the company, income tax calculation and various deductions
to be done from the salary including statutory deductions like Income tax
and provident fund deductions. It has to generate pay-slip, cheque
summary and MIS reports.
It is understood that we are tired of managing thousands of odd papers,
pay slips, payroll reports, and salary details and so on. Imagine that we
have a payroll processing system which will generate our pay slips and
payroll reports within seconds. We can help others automated your
payroll system by developing a customized payroll application that suits
your specific requirements.
PURPOSE
Main aim of developing Employee Payroll Management is to provide an
easy way not only to automate all functionalities involved managing
leaves and Payroll for the employees of Company, but also to provide full
functional reports to management of Company with the details about
usage of leave facility and Salaries paid or to be paid to employees.
We are committed to bring the best way of management in the various
forms of EPM. We understand that EPM in not just a product to be sold, it
is a tool to manage the inner operation of Company related to employee
leave and Payroll.

27 | P a g e
BENEFITS
• To improve the efficiency.
• Quickly find out information of an employee details.
• To provide easy and faster access information.
• To provide user friendly environment.
ER DIAGRAM OF PAYROLL MANAGEMENT SYSTEM

28 | P a g e
USE CASE DIAGRAM OF PAYROLL MANAGEMENT
SYSTEM

29 | P a g e
ACTIVITY DIAGRAM OF PAYROLL MANAGEMENT
SYSTEM

30 | P a g e
ATTRIBUTES OF PAYROLL MANAGEMENT SYSTEM
Masters:
This module helps the administrator to enter the designation and the
related description. It also helps to add the department.
Employee:
This module helps to add the details of the employee like the personal
detail and the employee detail.
Search:
This module helps to search the employee details department wise and
designation wise.
Attendance:
This module helps to different types of leave for different year. It also
helps the employee to enter their entry and exit time. Using the
attendance module the employee can also check their remaining leaves
and also apply for the leave.
Salary:
This module helps to calculate the salary by adding the allowances and
the basic salary and by deducting the deductions based on the leaves and
also the PF, ESI. It also helps to generate the employee pay slip.
Report:
This module helps to generate the administrative reports like the Salary
Report, Attendance Report and the Employee Report which is in can be
exported to word, pdf.

31 | P a g e
Payroll Methodology
 SAP-source is a software-Talent payroll service provider which can take best
of the available software to suite client need.
 We can use any payroll software with strong methodical service orientation.
 To believe sensitive activity like payroll service is more important than the
tool used.
Execution Objective
To build methodical & service oriented approach in execution of Payroll
as it is a:
 sensitive activity and needs to be executed,
 Timely & consistently
 Correctly to the last detail
 To Fulfill statutory obligations/compliances
 To give complete picture every month to management and employee
 Supportively & predictably
 Methodical structured approach to payroll outsourcing
 To help us Access, Analyze and to Build solid execution
There are Four Stages under this:
 Analysis stage –documenting the details gathered.
 Transition stage - preparation
 Pilot stage – verification

32 | P a g e
 Production stage
Stage-I: Analysis
 Understand client business
 Alignment of outsourcing strategy with the corporate strategy
 Assess requirement
 Review environment
 Confirm viability
 Identification of an outsourcing champion
 Establishment of clear timelines around the
 outsourcing initiative
Stage-II: Transition
 Team mobilization (technology & domain)
 Training in tools and procedures if required
 Hand-over of responsibility to our team
 Establishing necessary set-up
Stage III: Pilot
 Data collection and entry in the D/B
 One time data
 Company & employee
 Monthly data
 Data in between the months
 Data validation with the client

33 | P a g e
 Verify per the checklist, if we have received the monthly data in complete
 Enter the data in the salary processing software
 Data entry validation
 Verify if software has given considerations to all exceptions. If not do the
necessary changes manually.
 Generate salary working and send ‘variance’ & ‘monthly’ report to customer
for verification
Stage IV: Execution
 Monthly: (pdf file over the email)
 Salary slip to the employee with leave balance & to date fig.
 Consolidated report to the management
 Note to the Bank for disbursement of salary
 Monthly tax deduction statement
 Monthly PF/Society contributions
 Projected Income tax working for the year Annually/Quarterly
 MIS
 Quarterly tax return documents to company and to employee
 Salary certificate to the employee
 Attending to the call of the employer/employee on specific issues

34 | P a g e
Payroll Back Office
Scope of services
 Maintenance and updating of employee information sheet / salary register
 Calculation and preparation of monthly salary sheets.
 Calculation and deduction of statutory deductions like Provident Fund,
 Profession Tax, Income Tax etc. as and when they are applicable.
 Calculation of withholding tax, statutory and non-statutory deductions on
salary.
 Monthly pay-slips to employees
 Quarterly IT report to employees
 TDS CERTIFICATES
 Issue Form 16 to all employees
 TDS RETURNS, Filing of quarterly salary E-TDS returns
Why Payroll software used in the organization?
The study specifically seeks to answer the following problems in manual
payroll process:
 Speed in processing payroll tends to be slow.
 Prone to mathematical errors that could consume much time than it
should and could cause financial or legal trouble.
 Tallying of time cards is done manually.
 Time consuming in double checking the consistency of all the
reports.

35 | P a g e
 Difficult and time consuming in keeping up-to-date in taxes and other
deductions.
 Storage of files is susceptible to be damaged as well as loss of data.
Significance of the study
• Speed in processing payroll will have a faster performance by means
of decreasing the manual input areas.
• 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.
• 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.
• 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.
• 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.
• Storage of files will be safe and secured with “username and
passwords” and can easily be accessed.
Terminology Definition which is used in SAP software
This section gives a definition and explanation of some of the terms used
in the project:
Employee Data: This is the employee's information in the company. It
consists of the employee identification number, employee name, pay rate,
pension plan flag, and union member flag.

36 | P a g e
Payroll Records: The payroll records are used to store each month’s hours
worked, and the rates for that month.
Rates: Rates consists of the percentage that would be deducted from the
gross pay depending on union membership status, pension plan, state and
federal tax. Each employee can have a unique hourly rate.
Payroll Ledger: This is a table that shows the calculated pay of employees
and the month in which they earned the pay. The ledger can be filtered by
name, identification number, year and month.
Hours Worked: This is the number of times that an employee work in a
month. The hours worked is used to calculate the pay that an employee will
receive for that month.
Net Pay: The net pay is the final salary amount that would be given to the
employee after all the deductions are subtracted from the gross pay. The
deductions include among others taxes, union member dues and pension
plan.
Gross Pay: The gross pay is the amount that the employee earns before the
deductions are subtracted.
Deductions: Deductions are made up of taxes, union membership dues,
pension plan. They are subtracted from the gross pay to give the net pay
which is the employee's final pay for the month.
Taxes: The taxes consists of the state dues and federal dues. A percentage
of the employee's salary goes to state and country.
Union Membership Dues: This is meant for employees that are union
workers in the company. They get to pay a percentage for union dues. An

37 | P a g e
employee can be a union member and later change status to be a non-union
member.
Pension Plan: Employees that opted to use the pension plan of the company
get to pay a particular
Percentage of their pay in preparation for their retirement.
Pay slip: These are similar to pay cheques. They allow the employee to have
his or her pay printed out on paper so that they can cash it.
Year-To-Date Total: The year-to-date total is the summation of all the
previous earnings till the month before the current month.
TECHNOLOGY (TOOLS & TECHNIQUES)
HARDWARE AND SOFTWARE REQUIREMENT OF PAYROLL
MANAGEMENT SOFTWARE
Software Requirement
 TURBO C++
 MS DOS
 WINDOWS XP, WINDOWS 7,8 OR 10
 MICROSOFT OFFICE ACCESS
Hardware Requirement
 CPU – Intel Core 2 Duo E7300
 RAM I GB (MINIMUM)
 HARD DISK (I60 GB)
 OPERATING SYSTEM- WINDOWS XP WITH SERVICE PACK 3 (CHT)

38 | P a g e
SOFTWARE REQUIREMENT SPECIFICATION AS PER HERO CYCLES
Functional Requirements
INTRODUCTION:
Requirements analysis is usually the first phase of large-scale software
development project. It is undertaken after a feasibility study has been
performed to define the precise costs and benefits of a software system.
The purpose of this phase is to identify and document the exact requirements
for the system.
The customer, the developer, a marketing organization or any combination
of the three may perform such study. In cases where the requirements are
not clear e.g., for a system that is never been defined, more interaction is
required between the user and the developer.
The requirements at this stage are in end-user terms
Administrator module
1. Test case: Login
Input: ID, Password.
Process: Click on the login link. If administrator enters ID and password
correct it goes to the admin services otherwise displays the same page with
an error message.
Output: Displays the admin services page.
2. Test case: Add new employee

39 | P a g e
Input: Name, Id, designation, Date of joining.
Process: A new employee can be added into the system and admin can
update his details.
Output: The employee can be credited salary based upon his details.
3. Test case: Salary details
Input: Id, designation, basic salary, PF, DA,HRA.
Process: The admin can update his salary details
Output: Employee salary details will be updated to the database.
4. Test case: Loan details
Input: Id, Loan number, EMI, Repaid amount, Balance amount.
Process: Administrator can update a particular employees loan details.
Output: Employee Loan details will be updated to the database.
5. Test case: Leave details
Input: ID, Type of leave, Number of Leaves.
Process: Administrator updates the leave details.
Output: Employee Leave details will be updated to the database.
6. Test case: Tax details
Input: Id, Basic salary, Tax percentage, income tax.
Process: The tax details of an employee can be updated by the administrator.
Output: Employee Tax details will be updated to the database.
7. Test case: Salary slip
Input: Id, Basic salary, Designation, Net pay.
Process: Based on the leave, loan, and tax details the slip will be generated
Output: Salary slip will be generated.
8. Test case: Bank details
Input: Id, Designation, salary

40 | P a g e
Process: The employee’s salary is credited to bank.
Output: Employee can View and receive the salary.
Employee modules
1. Test case: Login
Input: ID, Password.
Process: Click on the login link. If Employee enters ID and password correct
it goes to the other page otherwise displays the same page with an error
message.
Output: Displays the Information to be viewed by an employee.
2. Test case: Update profile
Input: Id, Name, Designation, Email-id, Mobile number, Address, key skills,
qualification
Process: The employee can update his profile if any modifications occur in
his details
Output: The details of an employee can be updated
3. Test case: Change password
Input: Id, Old password, new password
Process: Employee can be able to change his password by using this test
case
Output: Employee new password will be updated
4. Test case: View earnings
Input:ID,Month,Year.
Process: The earnings can be displayed by this test case
Output: The total earnings of an employee for the specified month and
year can be viewed
5. Test case: View deductions
Input: Id, Month, Year

41 | P a g e
Process: The deductions can be known by using this test case
Output: The total deductions of an employee for the specified month and
year can be viewed
6. Test case: View salary slip
Input: Id, Month, Year.
Process: The employee can view the salary slip.
Output: The salary slip of an employee for the specified month and year
can be viewed.
MAJOR DUTIES OF HR
In a manufacturing plant such as hero cycles here are the few major
duties of HR manager:
 Ensures timely and accurate preparation of all Institution payroll operations
and works closely with the Human Resources Office to ensure that payroll
actions are in conformance with employment and benefits practices and
accounting procedures.
 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.
 Interprets Institution employment policies and government regulations in
connection with payroll activities and makes recommendations on
modifications to senior management as appropriate.

42 | P a g e
 Handles federal and state agency audits and maintains close contact with ITI
and other regulatory agencies to ensure that the Institution has accurate
information and is in compliance.
 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.
 Interfaces routinely with Human Resources on employee benefits issues
(deductions, retirement payments, etc.) to ensure timely and accurate
processing.
 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.
 Provides periodic analysis of payroll and disbursement records to ensure that
adjustments are in accord with management's criteria.
 Supervises Payroll Office staff and operations; provides on-going assistance
to Institution employees in tax-related payroll matters.
 Participates in business re-engineering activities to support the
establishment and integration of electronic information processes and
principles at the Institution.
 Handling conflicts between workers (Conflict Management).
 Providing appropriate working environment to the worker for increasing
efficiency of the production.

43 | P a g e
RESEARCH METHODOLOGY OF HERO CYCLES
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.
EXPLORATORY RESEARCH:
Exploratory research focuses on collecting data using an unstructured formal
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.
SAMPLING DESIGN:
A sample design is a definite plan for obtaining a sample from a given
population.
POPULATION:
The employees of HERO CYCLES will constitute the entire population.
Here the entire population is considered for my study because the population
is limited and amounts around 45-50 employees along with contractual
workers on the daily basis.

44 | P a g e
DATA COLLECTION:
Data is recorded measure of phenomena. While deciding about the method
of data collection, the researcher should keep in the mind about two types of
data. They are, Primary Data and Secondary Data
Primary data
Primary data represent the first hand raw data that have been specifically
collected for the current research problem. Primary data are raw,
unprocessed and yet to receive any type of meaningful interpretation.
Sources of primary data tend to be the output of conducting some type of
exploratory, descriptive or casual research.
DATA COLLECTION: OBSERVATION, INTERVIEW
Directness of the observation
Based on the directness of observation, it can be grouped as direct or
indirect. Direct observation happens when the observer is physically present
and monitors while the event is taking place. This is highly flexible as the
observer can decide what to observe, how much time to spent on observation
of an aspect, when to shift focus etc. The observer may feel bored or
frustrated by constantly being on the watch and may tend to lose focus. This
might reduce the accuracy and completeness of the observation. Another
weakness is that the observer may be overloaded when the events takes place
quickly which cannot be kept track of or recorded.

45 | P a g e
Secondary data
The secondary data is the historical data previously collected and
assembled for some other research problem. Secondary data can be usually
gathered at faster and economical manner than the primary data. However
the data may not fit in the researchers information need. The secondary data
can be obtained from the libraries, website, published as well as unpublished
documents etc.
Sampling methodology and procedure
Non-probability sampling the research finding cannot be generalized and
the sampling error cannot be assessed. The findings are limited to the
sample, which provided the original raw data. However non-probability
sampling may be the only choice in case where the population cannot be
ascertained.
SAMPLING TECHNIQUE: PURPOSIVE SAMPLING
Sample size
The sample size for the given project is 50.
Period of study
The study period taken for this project is 5-7 weeks.
Tools can be used
 Simple average
 Chi square test
 One sample run test

46 | P a g e
ANALYSIS AND INTERPRETATIONS
SIMPLE AVEARGE ANALYSIS
Reasons for satisfaction/dissatisfaction level towards the Measurement of
Software usage:
Source: Primary Data
90% of the Employees are satisfied by the software and we need to more focus on
the 6 % dissatisfied and 4% not yet responded.
0
10
20
30
40
50
60
70
80
90
SATISFIED DISSATISFIED NEUTRAL
NO.OF RESPONDENTS 45 3 2
% OF RESPONDENTS 90 6 4
45
3 2
90
6 4
AxisTitle
Axis Title
Measurement of Software usage.
LEVEL OPTIONS NO.OF RESPONDENTS % OF RESPONDENTS
SATISFIED 45 90
DISSATISFIED 3 6
NEUTRAL 2 4

47 | P a g e
Reasons for satisfaction/dissatisfaction level towards, whether the software user
friendly:
SOURCE: PRIMARY DATA
Among 50 employees 82 % of the employees are satisfied with the software system
helps for future growth that they had improved themselves after the program. 18 %
of the employees are not satisfied with software system helps for future growth.
0
10
20
30
40
50
60
70
80
90
NO.OF RESPONDENT % OF RESPONDENT
YES 41 82
NO 9 18
41
82
9
18
AxisTitle
Axis Title
The software user friendly or not.
YES NO
YES 41 82
NO 9 18

48 | P a g e
complaints regarding loading of pay sheet in software:
90 % of the Employees are satisfied by the software and we need to more focus on
10% not yet responded.
SATISFIED DISSATISFIED NEUTRAL(PASS)
45
0
5
90
0
10
-40
-20
0
20
40
60
80
100
120
140
AxisTitle
Axis Title
Loading of pay sheet in software.
SATISFIED 45 90
DISSATISFIED 0 0
NEUTRAL 5 10

49 | P a g e
Reasons for satisfaction/dissatisfaction level towards the usage of new software
for payroll process:
76 % of the Employees are satisfied with the calculation and we need to more focus
on 24% of employees dissatisfied
SATISFIED 38 76
DISSATISFIED 12 24
NEUTRAL 0 0
38
12
0
76
24
0
0
10
20
30
40
50
60
70
80
AxisTitle
Axis Title
New software for payroll process.

50 | P a g e
delivery of payroll report to clients:
60 % of the Employees are satisfied by the delivery and we need to more focus on the
10% dissatisfied and 30% not yet responded.
30
5
15
60
10
30
0
10
20
30
40
50
60
70
AxisTitle
Axis Title
Chart Title
SATISFIED 30 60
DISSATISFIED 5 10
NEUTRAL 15 30

51 | P a g e
Reasons for satisfaction/dissatisfaction level towards the usage period of payroll
management software:
94 % of the Employees are satisfied by the service provided for the software
complaints and we need to more focus on the 6 % dissatisfied.
NO.OF RESPONDENTS % OF RESPONDENTS
YES 47 94
NO 3 6
47
94
3
6
0
10
20
30
40
50
60
70
80
90
100
AxisTitle
Axis Title
The usage period of software.
YES 47 94
NO 3 6

52 | P a g e
Reasons for satisfaction/dissatisfaction level towards the Measurement of clients
input:
YES 42 84
NO 8 16
42
84
8
16
0
10
20
30
40
50
60
70
80
90
AxisTitle
Axis Title
Measurement of clients input.
YES 42 84
NO 8 16

53 | P a g e
84 % of the Employees are satisfied by the clients input records and we need to more
focus on the 16 % dissatisfied.
training given to employees:
60 % of the Employees are satisfied by the software training and we need to more
focus on the 40% dissatisfied with training.
YES 30 60
NO 20 40
30
60
20
40
0
10
20
30
40
50
60
70
AxisTitle
Axis Title
Measurement of training given to employees.
YES 30 60
NO 20 40

54 | P a g e
The way in which the organization maintains records as per government norms:
100 % of the Employees are satisfied by the organization maintains all reports
according to government norms.
YES 50 100
NO 0 0
0
20
40
60
80
100
120
AxisTitle
Axis Title
Maintains records as per government norms.
YES 50 100
NO 0 0

55 | P a g e
The maintains of client details confidentially:
92% of the Employees are satisfied by the maintains of client inputs and we need to
more focus on the 8 % dissatisfied
YES 46 92
NO 4 8
46
92
4
8
0
10
20
30
40
50
60
70
80
90
100
AxisTitle
Axis Title
The maintains of client details confidentially.
YES 46 92
NO 4 8

56 | P a g e
Statistical tool applied:
CHI-SQUARE TEST
Satisfied Dissatisfied Neutral/pass Total
Yes 38 2 1 41
No 7 1 1 9
Total 45 3 2 50
S.no Oi Ei (Oi-Ei)2
(Oi-Ei)2
Ei
1 38 36.9 1.21 0.0327
2 2 2.46 0.2116 0.0860
3 1 1.64 0.4096 0.2497
4 7 8.1 1.21 0.1493
5 1 0.54 0.2116 0.39185
6 1 0.36 0.4096 1.1377
Total 50 50 2.04775

57 | P a g e
CALCULATION:
Degree of freedom (m-1)*(n-1) = (3-1)*(2-1) =2
Tabulated value of D.F=2 @ 5% level of significance is 5.991.
Therefore Ho is accepted because the calculated value is less than
tabulated value.
Hence there is no significant difference between observed frequency and
the expected frequency. Hence the software used in hero cycles is good.

58 | P a g e
One Sample Run Test
YYYYNYYYYYYYYYYNYYYYYYNYYYYNYYYYYNYYYYYYYYYNYYYYNYYY
YNNYYYYYYN
r=no. of runs= 14
no. of Y= 41
no. of N= 9
Ho: The software is effective and accept at random in sequence.
H1: The software is not effective and not accept at random in sequence.
sE9r) = 2(41) (9) + 1
41+9
= 15.76
S.E (r) = √ 2(41) (9) [2(41) (9)-41-9]
(41+9)2
(41+9-1)
= 2.0358
Z= r- E(r)

59 | P a g e
S.E(r)
= 14-15.76
2.0358
= [-0.8645]
Z5% for degree of freedom ∞ = 1.96
0.8645 < 1.96
So, accept H0
Hence the software is effective are accept at random in sequence

60 | P a g e
PAYROLL AND ATTENDANCE SYSTEM IN HERO
CYCLES
Organizations of all sizes use time and attendance systems to record
when employees start and stop work, and the department where the work
is performed. However, it’s also common to track meals and breaks, the
type of work performed, and the number of items produced. In addition to
tracking when employees work, organizations also need to keep tabs on
when employees are not working. Vacation time, compensation time,
FMLA time, and jury duty must be recorded. Some organizations also keep
detailed records of attendance issues such as who calls in sick and who
comes in late.
A time and attendance system provides many benefits to organizations. It
enables an employer to have full control of all employees working hours.
It helps control labor costs by reducing over-payments, which are often
caused by transcription error, interpretation error and intentional error.
Manual processes are also eliminated as well as the staff needed to
maintain them. It is often difficult to comply with labor regulation, but a
time and attendance system is invaluable for ensuring compliance with
labor regulations regarding proof of attendance.
Companies with large employee numbers might need to install
several time clock stations in order to speed up the process of getting all
employees to clock in or out quickly or to record activity in dispersed
locations.
Depending on the supplier, identification method and number of clocking
points required, prices vary widely. A time and attendance system protects
a company from payroll fraud and provides both employer and employees

61 | P a g e
with confidence in the accuracy of their wage payments all while improving
productivity.
Payroll and attendance systems are essential in hero cycles, because they
enable us to compensate our employees for time worked. Each system has
its own dedicated purposes, but they also go hand-in-hand.
Objectives
A payroll system is the medium that allows you actually pay your
employees. During this process, we calculate wages and deductions based
on the employee’s pay scale. We also generate paychecks and pay stubs, and
perform direct deposit and payroll tax procedures. Before we get to those
stages, we must figure the amount of hours to compensate employees who
are paid hourly. Our timekeeping system shows each employee’s daily time
worked and the total hours to pay them for on the upcoming payroll.
Manual Process
If we have only a handful of employees, a manual payroll and attendance
system may work for us. With this system, everything is done by hand.
Employees would complete weekly time sheets, and we will calculate and
verify the time by hand. During payroll processing, we figure wages and
deductions manually and hand-write paychecks. Related duties, such as
keeping records and reporting payroll tax, are also done manually. This
system is prone to errors. If we decide to apply it, a standard punch clock for
timekeeping can be a big help.
Automated System
An automated, or computerized, time clock lets employees clock in and out
via swipe badges, clock cards, finger print or palm print; it depends on the
type of system. It also calculates work hours and rounds the time up and
down so it complies with federal and state rounding rules. Managers and
supervisors track their employees’ time via the automated system and make

62 | P a g e
the necessary adjustments before the time reaches payroll for processing.
This system enable to transport the time into payroll software, which is used
to process the payroll. Payroll software reduces manual calculations,
generates paychecks and pay stubs, and enables direct deposit and annual
W-2 processing. It also stores payroll records and limits filing of hard copies.
External Payroll Processing
If a payroll service provider handles your payroll matters, we still track our
employees’ hours in-house, but we use our supplier’s payroll system. For
example, the supplier may require that you fax or email your employees’
hours. It then processes and sends you the paychecks by payday. Or, via a
unique login and password, you may upload the hours into the supplier’s
online system, and print paychecks and payroll reports to your own printer.
The supplier can assist you with your payroll tax matters and in solving
complex payroll problems.

63 | P a g e
AN INTRODUCTION OF WELFARE
MEASURES OF HERO CYCLES
The oxford Dictionary defines labor welfare as effort to make life worth
living for workers the voluntary efforts of the employers to establish within
the existing industrial system, working and sometimes living and culture
conditions of employees beyond what is required by law and customs of
the industry and conditions of the market. Welfare works covers all the
efforts which employers make for benefit of their employees over and
above the minimum standards of working conditions fixed by the factories
Act and over and above the provisions of social legislators providing against
old age, unemployment and sickness.
While doing my project I have found various welfare measure taken by HR
Manager of Hero Cycles in manufacturing plant some of them are listed
below:
1. Washing Facility
The Company has provided proper wash rooms to the workers who are
working at different shift hours. There are 10 wash rooms for every 100
workers in the company. They ensure to provide clean and hygiene working
conditions in the company so that workers can put their full effort in all
areas.
2. Canteen Facility
Workers are provided with a separate canteen, where they have their
lunch and other refreshments. There are around 250 workers working in
the plant and in among the two shifts there are nearly 35-40 employees
so the area of canteen has to be big. Considering this point the canteen
provided to them is big in size with the sitting capacity of nearly 500
employees. Canteen prices are also cheap and completely affordable. Tea

64 | P a g e
is provided at Rs 5 to the workers and lunch plate worth Rs 25 which
include 2 chapatti’s, rice and 1 dal and 1 curry.
3. Rest Rooms
Proper rest rooms are provided so that the workers can get rest during
the break of 45 mins they get while working in the manufacturing plant.
4. Doctor and First Aid Facility
Every organization with more than 250 employees and worker need to
appoint an MBBS doctor, same has being done by hero cycles. They have
two permanent MBBS Doctor named Dr. Atul Rastogi and Dr. T.P.Dubey
inside the manufacturing plant so that if any accident occurs immediate
treatment could be provided.
5. Dispensary
A fully fledged dispensary with a team of 4 medical staff members is there
in the company and an ambulance is available around the clock.
6. Health &Safety officer:
Health and safety officer acts as an adviser to management on the latest
legal obligations, ensuring the standard of safety is up to the latest
regulatory standards. The officer also imparts advice to others through
training and discussion, as well as creating company policies that deal
with health and safety, such as evacuation procedures.
For further research I have collected data of welfare measures by
preparing questionnaires and distributing within the manufacturing
plant for finding out the satisfaction level of employees and workers.
Questionnaire is given at the last page of the project.

65 | P a g e
Results from questionnaire was positive and here are some suggestions
which can be determined after analyzing collected data:
Suggestions
 On shop floor worker should be provided with glucose or lemon water
which increases his stamina to work.
 Condition of workers canteen and restroom should be improved.
Cleanliness should be maintained in canteen and quality of food should
be provided. Sufficient amount of food should be cooked to meet the
demand of all workers.
 Quality circles should be introduced in organization. It will help in
removing day to day work related problems of workers and moreover
workers will feel motivated and sense of belongingness will be
generated when they solve their own problems and increase the
productivity of organizations.
 For the welfare of workers monetary and non-monetary rewards and
awards should be provided to workers who completes a certain time of
his tenure.
 Proper counseling of workers should be done by supervisors which will
change their perception about work related problems and personal
issues. So proper counseling of workers will help in changing this mind.
 A supervisor per shift in charge should be held accountable for a group
of workers their problems, welfare facilities, grievances, motivation
level, participation in activities etc.
 Company should lay more stress on taking corrective measures for
safety regarding accidents. Proper training should be provided to
workers; work load should be regulated as per the handling capacity of
the workers so that they do not lose their concentration.
 Quality of uniform and shoes should be improved and it should be
designed according to working conditions so that workers do not face
any kind of skin related problem.

66 | P a g e
 Working environment needs to be improved to enhance the
satisfaction level of workers the environment should be made friendly
and team spirit need to be built up.
 Training should be given regarding personal growth and development
of the workers to make them a good citizen.
HERO CYCLES (PRODUCTION PROCESS)
Since company’s new plant in Patna was set up in August 2014 so here are
few objectives of its production process:
Objectives:
Support in developing New Plant Layout with following capacity requirement
of next three years
Targeted Capacity i. Year 2014:3000 cycles / day
ii. Year 2015:4000 cycles / day
iii. Year 2016:5000 cycles / day
• Set up best possible layout for Stores, Assembly, Packaging, and Dispatch
ensuring smooth Material Flow
• Minimum 25% improvement in space, productivity and cost against existing
HCL norms
• To arrive at the required manpower for the scope of the study.
• No material on the floor
• Movement on conveyor and unloading from conveyor to be integral part of
the process.
• No painted component touching each other
• Ensure Smooth Material Flow. Hero Cycles mentioned support required for
Material Planning, Inventory Management based on the principals of Lean
Flow

67 | P a g e
FINDINGS AND SUGGESTIONS FOR PAYROLL
SOFTWARE
FINDINGS
1. The effectiveness of the existing software system in HERO CYCLES is
measured by using the following variables:
 Software (sap)
 Import of data in software
 Software calculation
 Accept & implement change
 Flexibility
 Company policies
 Education &Computer Skills
 Client Relation.
2. 90% of the Employees are satisfied by the software and we need to more
focus on the 6 % dissatisfied and 4% not yet responded.
3. Among 50 employees 82 % of the employees are satisfied with the software
system helps for future growth that they had improved themselves after the
program. 18 % of the employees are not satisfied with software system helps
for future growth.
4. 90 % of the Employees are satisfied by the software and we need to more
focus on 10% not yet responded.

68 | P a g e
5. 76 % of the Employees are satisfied with the calculation and we need to
more focus on 24% of employees dissatisfied
6. 60 % of the Employees are satisfied by the delivery and we need to more
focus on the 10% dissatisfied and 30% not yet responded.
7. 94 % of the Employees are satisfied by the service provided for the
software complaints and we need to more focus on the 6 % dissatisfied.
8. 84 % of the Employees are satisfied by the clients input records and we
need to more focus on the 16 % dissatisfied.
9. 60 % of the Employees are satisfied by the software training and we need
to more focus on the 40% dissatisfied with training.
10. 100 % of the Employees are satisfied by the organization maintains all
reports according to government norms.
11. 92% of the Employees are satisfied by the maintains of client inputs
and we need to more focus on the 8 % dissatisfied.

69 | P a g e
SUGGESTIONS
1. 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.
2. Proper training should be given to the employees, in order to
increase their knowledge about the usefulness of the software
system.
3. Top management shall continually review the software according to
the client requirements, which shall be seen as positive support to
the system by the employees as well as clients.
4. After software testing, if there is any changes, the employees should
be informed by the software technology team.
5. The delivery of clients output should be on time.
6. Latest software should be implemented in future to fight with the
competitors and retain their clients.
7. The company should motivate workers by providing monetary and
non-monetary incentives within the manufacturing plant for
increasing efficiency in production and getting whole hearted efforts
from workers.

70 | P a g e
LEARNINGS
It was a wonderful opportunity to be a part of HERO CYCLES PVT.
LTD. It was a great experience to compare the theoretical concepts
of HRM and real work activities. During my stay at HERO CYCLES I
was introduced to a highly efficient work culture where coordination
of cooperation was given utmost priority. This summer training
helped me a lot to gain practical knowledge regarding payroll
management and welfare measures which enriched my view
towards managing the work force and to work within a team. This
training also helped me to handle conflicts between workers
(conflict management) and manage the shifts of workers (shift
management).

71 | P a g e
CONCLUSION
1. The study had confirmed that the company is having a good Software
System.
2. From this study, it is found that majority of the workers were satisfied
with Software used and working condition of the manufacturing plant.
3. To make the software system more efficient and excellent, the company
should give importance to the clients and 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.
4. The company should conduct the similar type of research at regular
interval to know the changing software’s and to know about the latest
technology like baan software etc..
5. Since plant is established in Patna, Bihar which is known for labors
basically so company can focus on getting permanent labors rather than
labors on contractual basis and from various private agencies.

72 | P a g e
BIBLIOGRAPHY
BOOKS
 Fisher shoenfelt Shaw-Human resource management-4th
edition-Macmillan
Press limited.
 Kothari C.R research Methodology-Methods and techniques (2nd
edition)-
new age International (pvt) limited.
 Bratton John and Gold Jeffery (1994)-HRM-Theory and practice, 6th
edition-Macmillan press Limited.
 Mamoria C.B-Human Resource Management-Himalaya publishing home,
11th
edition 1993.
REFERENCES
 Sasmita Polo-National Journal on Personnel Management-VOL-XXII,
No.3, Pg no.16-20
 Parveen Ahmed Alan and Mr. Kaushik-Personnel Today-Indian Journal on
personnel management-VOL.XXIX,NO.2, Pg No.13-15.
 Prof.Bata.K.Dey-Indian Journal on Personnel Management-VOL XXIX-
NO.2, pg no. 9-12.

73 | P a g e
Websites
 WWW.HVS INTERNATIONAL JOURNALS.COM
 WWW.SLIDESHARE.COM
 WWW.HEROCYCLES.COM
 WWW.CITEHR.COM
 WWW.MANAGEMENTPARADISE.COM

74 | P a g e
Questionnaires
SAFETY QUESTINNAIRE
Name __________________
Age __________________
Department __________________
Marital status ___________________
Q1. Are you aware of safety policy of your organization?
Yes No
Q2. Does the organization provide safety training regarding the handling
of machines/equipment’s related to dangerous operations?
Yes No
Q3. Does your organization provide you safety equipment’s for work on
dangerous machines?
Always Sometimes Never
Q4. To what level machines are properly maintained and fenced?
Highly satisfactory satisfactory average dissatisfactory
highly dissatisfactory
Q5. How frequently do accidents occur in your company?
Very frequently frequently sometimes never
Q6. What are the common reasons for accidents?
____________________________________________________________
______________________

75 | P a g e
Q7. Does the company analyze the causes of accidents and take corrective
measures to reduce the number of accidents in future?
Always sometimes never
Q8. Does the safety officer take corrective actions in time whenever
needed?
Always sometimes never
Q9. Does the organization provide safety provisions on the following?
Yes no
 Protection of body
 Protection against dangerous fumes
 To lift heavy loads/weights
Q10. Would you like to give any suggestion for improvement in the safety
policy?
____________________________________________________________
____________________
Thank You!

76 | P a g e
WELFARE QUESTIONNAIRE
Q1. Does the company follow the welfare policy?
Yes no
Q2. Is the company providing you best services related to the following:-
Highly agree Agree neutral disagree highly disagree
 First aid facility
 Ambulance facility
 Dispensary
 Rest room
 Good Working Environment
Q3. To what extent are you satisfied with following:-
Excellent good average below average poor
 Washing facility
 Drinking water
 House keeping
 For storing clothes
 Canteen/lunch rooms
Q4. Give your opinion related to following canteen facilities?
Excellent good average below average poor
 Quality of food
 Prices of food
 Cleanliness of canteen
 Sitting arrangement
Q5 Are you satisfied with the following medical facilities:-
Satisfied Dissatisfied
 Doctor
 Laboratory

77 | P a g e
 Medicines
 Periodical checkup
Q7. Does the organization provide Employee assistant programs?
Yes no
Q8. Are there any suggestions that you would like to give regarding labor welfare and
safety policy of Hero Cycle?
_______________________________________________________________________
_____________________
Thank You!

78 | P a g e
“A STUDY ON PAY ROLL SOFTWARES USED IN HERO
CYCLES, PATNA AND HR ROLL IN PAYROLL”.
INTERVIEW QUESTIONS
QUESTION FOR HR EXECUTIVES AND HR HEADS.
1) Does the clients are satisfied with the software used in hero cycles for the
pay roll processing?
Satisfied Dissatisfied Neutral
2) Is the software user friendly?
YES NO
3) When do you get complaints regarding the loading of pay sheet into
software? Whether satisfied?
4) Has the organization defined its payroll process software to meet client’s
requirements services?
YES NO
5) Are you satisfied with the software to calculate the pf, esi etc.?
6) How about the delivery of payroll report?

79 | P a g e
7) How long you have been using the software? Whether it is satisfied or not?
8) Whether your complaints are rectified by the company?
YES NO
9) Whether 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.
YES NO
10) Whether clients Provides periodic analysis of payroll and disbursement
records to ensure that adjustments are in accord with management's criteria.
YES NO
11) Whether Supervises Payroll Office staff and operations; provides on-going
assistance to Institution employees in tax-related payroll matters.
YES NO
12) Whether clients and employees Participates in business re-engineering
activities to support the establishment and integration of electronic
information processes and principles at the Institution.
YES NO

80 | P a g e
13) Whether company 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.
YES NO
14) Whether Maintenance and updating of client information sheet / salary
register confidentially?
YES NO
15) Whether the employees Interfaces routinely with Human Resources
department on client benefits issues (deductions, retirement payments, etc.)
to ensure timely and accurate processing
YES NO
Thank You!

Internship Project of Hero Cycles Pvt Ltd

Empfohlen

Empfohlen

Weitere ähnliche Inhalte

Was ist angesagt?

Was ist angesagt? (20)

Andere mochten auch

Andere mochten auch (20)

Ähnlich wie Internship Project of Hero Cycles Pvt Ltd

Ähnlich wie Internship Project of Hero Cycles Pvt Ltd (20)

Internship Project of Hero Cycles Pvt Ltd