Project of Sheraton

8/3/2019 Project of Sheraton

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COMPENSATION

MANAGEMENT

MADE BY:ANURAG

VERMA

HARISH

DHUNNA

JENSON


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KSHITJ

TABLE OF CONTENTS

1. DEFINATION

2. COMPANY PROFILE

3. COMPANY SERVICES

4. DETERMINATION OF COMPENSATION

COMPENSATION PACKAGE

PERKS AND ALLOWANCES


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ACKNOWLEDGEMENT

We thank Prof. Hari Parmeshwar in particular

for assigning us this topic and encouraging us towrite in the first place. We are indebted to allthose who have been helpful throughout theprocess of writing this Report Harish dhunna, Anuragverma, Jenson, kshitj but as the clich goes, we aresolely responsible for any remaining errors of factor judgment.


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DEFINATION

Compensation, which includes direct cash payments,

indirect payments in the form of employee benefits and

incentives to motivate employees to strive for higher

levels of productivity, is a critical component of the

employment relationship. Compensation is affected by

forces as diverse as labour market factors, collective

bargaining govt legislations and top managements

philosophy regarding pay and benefits.

COMPANY PROFILE

For more than 70 years Sheraton has enjoyed a history

as vibrant and spirited as the travelers we welcome.The world has changed, but one thing hasn't - travel isabout bringing people together.

1937The origins of Sheraton date back to 1937 when thecompany's founders, Ernest Henderson and RobertMoore, acquired their first hotel in Springfield,Massachusetts.

Within two years, they purchased three hotels inBoston and soon expanded their holdings to includeproperties from Maine to Florida.

1947Sheraton Corporation of America becomes the firsthotel chain to be listed on the New York StockExchange.

1949With the purchase of two Canadian hotel chains


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Sheraton expands internationally and grows rapidlyaround the world.

1958The company launches "Reservation," the industry's

first automatic electronic reservations system.

1961The first Sheraton in the Middle East debuts with theopening of the Tel Aviv Sheraton in Israel.

1963The Macuto Sheraton Hotel opens in Venezuela,becoming the first Sheraton hotel in Latin America.

1965Sheraton opens the doors to its 100th hotel - TheSheraton Boston.

1970The company is the first hotel chain with a toll-free800-number for direct guest access (1-800-325-3535)which is still in use today.

1985Sheraton achieves an important milestone becomingthe first international hotel chain to operate a hotel inthe People's Republic of China.

1998Starwood Hotels & Resorts Worldwide, Inc. acquiresSheraton.

2004Sheraton introduces the Sweet SleeperTM Bed.

2006The Link@SheratonSM experiencedwith Microsoft debuts at five hotels around the world.The Link@Sheraton is the connectivity hub of our lobbyexperience, allowing guests to work, relax, socialize orgrab a snack.

2008Sheraton Fitness programmed by Core Performance isintroduced. Created in partnership with world-

renowned personal training experts
http://www.starwoodhotels.com/promotions/promo_landing.html?category=SI_LINK_08http://www.sheratonfitness.com/http://www.starwoodhotels.com/promotions/promo_landing.html?category=SI_LINK_08http://www.sheratonfitness.com/


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Core Performance, our fitness program is designed tokeep guests at their peak at all times.

2008Sheraton boasts a portfolio of more than 400 hotels in

70 countries, including a stellar portfolio of morethan 60 resortsin stunning destinations worldwide.

COMPANY SERVICES

Sheraton Hotels & Resorts is uniquely qualified to

welcome you and make you feel right at home -

whether you're staying with us for business or leisure.

We're always working on new ways to better care for

you, with:

Sheraton Sweet Sleeper Bed Services for Business Travelers Services for Meetings Customers Services for Leisure Travelers Services for Travel Agents

Sheraton Sweet Sleeper Bed

In 2002 Sheraton introduced a whole new level of comfort- the Sheraton Sweet SleeperTM Bed. The celebratedSweet Sleeper Bed features luxurious sheets, a deluxeduvet, a selection of feather down and hypoallergenicpillows, and a custom Sealy mattress. See for yourself,sink into the cozy comfort of the Sheraton Sweet SleeperBed.
http://www.sheratonresorts.com/http://www.starwoodhotels.com/sheraton/about/service.html#2http://www.starwoodhotels.com/sheraton/about/service.html#3http://www.starwoodhotels.com/sheraton/about/service.html#4http://www.starwoodhotels.com/sheraton/about/service.html#5http://www.starwoodhotels.com/sheraton/about/service.html#6http://www.sheraton.com/storehttp://www.sheraton.com/storehttp://www.sheratonresorts.com/http://www.starwoodhotels.com/sheraton/about/service.html#2http://www.starwoodhotels.com/sheraton/about/service.html#3http://www.starwoodhotels.com/sheraton/about/service.html#4http://www.starwoodhotels.com/sheraton/about/service.html#5http://www.starwoodhotels.com/sheraton/about/service.html#6http://www.sheraton.com/storehttp://www.sheraton.com/store


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Services for Business Travelers

Sheraton Hotels & Resorts offers business travelersextensive services so they can keep up with what's

happening in the office while away from it. TheLink@SheratonSM experienced with Microsoft boasts freeWifi and computers, printing capabilities and places forinformal meetings. For more significant business servicesmany Sheraton hotels offer a Business Center withprinting, scanning, photocopying, faxing and shippingavailable.Services for Meetings Customers

MEETING PLANNERS, EXECUTIVE SERVICES AND MORE

Sheraton Hotels & Resorts offers a choice of venues formeetings, incentives or social events for groups of allsizes, from small executive board meeting to an annualconvention of thousands. On-site sales and conventionstaff are available to help planners create the perfectevent, and Starwoods field sales staff is equipped with

the latest technology to allow immediate responseregarding hotel availability and information.

For the fastest way to organize your next function, visitour Meetings & Events area. Online search capability isbased on a range of individual specifications, as well ascomplete meeting room layouts and measurements.Planners can even email proposal requests for a quickresponse without having to pick up the phone.

Services for Leisure Travelers

FAMILY-FRIENDLY, AROUND THE WORLD

With a choice of more than 60 Sheraton Resorts atenticing destinations including Argentina, Australia,Egypt, Israel, Italy, Mexico, Hawaii, California, Florida,Arizona, Tahiti and the Fiji Islands, leisure travelers canplan the perfect vacation. While staying at a Sheraton,guests can ski the slopes of Colorado, cruise the Nile,
http://www.starwoodhotels.com/sheraton/meetings/index.htmlhttp://www.sheratonresorts.com/http://www.starwoodhotels.com/sheraton/meetings/index.htmlhttp://www.sheratonresorts.com/


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enjoy a challenge on the Arizona links or exploreAustralia's Great Barrier Reef. Sheraton Resorts offer awide variety of on-site activities for the entire family,ranging from golf and tennis to snow-skiing, water

sports, pampering spas and more.KIDS STAY FREE

Kids stay free at Sheraton Hotels & Resorts around theworld as long as they are staying with an adult and usingexisting bedding. And most Sheratons offer theconvenience of babysitting services, either through hotelstaff or a bonded service, giving parents the freedom toenjoy a little time on their own.

Services for Travel Agents

Through Starwood's Travel Agent Education Program,agents can take advantage of special rates, based onavailability, at most Sheraton hotels around the world.Agents may call us toll-free at 800-325-3535 within theUnited States and Canada, or contact any of

our Worldwide Reservations Offices.

For most of its hotels worldwide, Sheraton offers theCentral Commission Payment Program. Benefits include:

Twice-monthly payment for all Sheraton bookings One single check for all Sheraton bookings instead of

individual checks from each hotel and resort booked Payment in the currency of choice, instead of local

currency of the hotel, saving retailers conversion andprocessing fees
http://www.starwoodhotels.com/sheraton/agents/taed_rates.htmlhttp://www.starwoodhotels.com/sheraton/support/contact/worldwide.htmlhttp://www.starwoodhotels.com/sheraton/agents/taed_rates.htmlhttp://www.starwoodhotels.com/sheraton/support/contact/worldwide.html


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DETERMINATION OF COMPENSATION

PACKAGE

The ministry sets a certain budget for compensation.

Within the budget range Sheraton has to fix the

compensation package. They cannot go beyond the

range. sheratons compensation package is sent for

approval to the ministry.

So Personnel department hardly has a role to play inwage determination. Only when unions come in picture

they act as negotiators in order to finalized the wage

settlement.

WAGE DETERMINATION

Define the key jobs

Consider Ashok as their benchmark

Then accordingly pay scale range is fix


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COMPENSATION PACKAGE

The compensation package mainly contains

Basic pay (B.P.) + Dearness allowance (D.A.) + City

Compensatory Allowance (C.C.A.) + Perquisites.

D.A. SYSTEMS

There are two types of D.A. systems

1. Central D.A. (C.D.A.)

2. Industrial D.A. (I.D.A.)

Employees in staff level are on I.D.A. Employees who

have joined the company on/after 1.4.89 are on I.D.A.

Employees who have joined before 1989 have the option

of availing either I.D.A. or C.D.A.

Till date all employees avail I.D.A. except for 70

employees.

Based on H.P.P.C (High Power Pay Commission), The pay

scale of C.D.A. employees are fixed. For C.D.A.

employees, the C.D.A. is more than basic pay.

Dearness allowance is based on All India Consumer Price

Index i.e. over the period of 3 months on an average how

much the product/goods and services price has increased.

So for E.I.L the D.A changes every 3 months.


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For I.D.A employees, D.A. is calculated as % of basic pay.

Bureau of Public BPE Enterprises revises the % every 3

months.

D.A. PAID :-

The following is the D.A. paid to the employees at

different levels.

Level 12 - Rs.3110, Level 13 - Rs.3732, Level 14 - Rs.4043,


Level 18 - Rs.4473, Level 19 - Rs.4722.

EMPLOYER'S PF CONTRIBUTION :-

The following is the employers contribution towards PF

at different levels :



Level 18 - Rs.1617, Level 19 - Rs.1707.

INCREMENT :-

Every year the employees get 4% increment and in the

year of promotion increment is 6%. After the employee

reaches the maximum basic pay range and still has not

got any promotion than he or she gets personal pay.

Example for level 10 staff (Ast. Officer/Engr.) I.D.A scale

is Rs. 3500-6200 and this level employee will be due for

promotion after 3 years (Time Bound Promotions). If after


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3 years due to non availability of vacancies the employee

does not get a promotion then he is not stagnated at

I.D.A scale at Rs. 6200 but gets a personal pay along with

the scale.

C.C.A :-

City compensatory allowance is 6% of basic pay for

metros and A-class cities with ceiling of Rs. 100 4.5% for

B-1 class cities with ceiling of Rs. 75, 3.5% for B-2 class

cities with ceiling of Rs. 20.

INTERIM RELIEF

Employees get an interim relief of 20% on basic pay.

Scales of pay are due for revision w.e.f 1.01.97 but till

now they have not been implemented so within this gap

period the employees get an interim relief of 20% of basic

pay.

PERKS AND ALLOWANCES

CONVEYANCE ALLOWANCE

Employees who have their own vehicle get a conveyance

allowance according to their levels and employees who do


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not have their own vehicle they get transport subsidy.

For scooter, conveyance allowance (annual) :- Level 1- 5

gets Rs. 210, Level 6 gets Rs. 365, Level 7 gets Rs. 440,

Level 8 gets Rs. 505. For car, Level 12 get Rs. 1500, Level

13-14 get Rs. 1700, Level 15-16 get Rs. 2000, Level 17-19

get Rs. 2300. For car, annual conveyance allowance is

Level 12 - Rs. 1500, Level 13-14 - Rs.1700, Level 15-16 -

Rs.2000, Level 17-19 - Rs. 3200.

HRA

There are three schemes for HRA

1. HRA equivalent to 30% of BP subject to 30% of

Maximum of BP (in metros).

2. Company lease accommodation - HRA limited to 40%

top of the scale.

3. Self leased accommodation employees either opt HRA

limited to 40% top of the scale or assessment rate (i.e.,

assessment done by municipality and Sheraton , based

on that rent is paid).

Level Metros A B-1 B-2 C &

Unclass


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ified

8 (BP

4000and

above)

2350 2050 1925 1625 1475

10 2500 1275 2025 1725 1550

12 3325 2900 2700 2275 2075

13 3775 3300 3075 2600 2375

14 3850 3375 3125 2650 2400

15 3970 3475 3225 2725 2475

16 4025 3525 3275 2775 2525

17 4125 3625 3350 2850 2575

18 4200 3675 3425 2900 2625

19 4600 4025 3750 3175 2875

20 5400 4725 4400 3725 3375


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CLASSIFICATION OF CITIES FOR PAYMENT OF

HRA

METROS Delhi, Calcutta, Chennai, Mumbai

(Including Noida, Faridabad, Ghaziabad,

Gurgaon, New Mumbai)

A Class

cities

Ahmedabad, Bangalore, Hyderabad,

Kanpur, Lucknow, Nagpur

B-1 Class

cities

Patna, Surat, Baroda, Bhopal, Indore,

Jaipur, Ludhiana, Coimbatore, Madurai,

Agra, Varanasi, Pune

B-2 Class

cities

Vijayawada, Vizag, Jamshedpur,

Allahabad, Chandigarh, Mysore,

Gwalior, Amritsar, Ajmir, Kota,Durgapur, Bareilly

C&Unclass

ified

Remaining cities

SKILL DEVELOPMENT ALLOWANCE

In order to upgrade their skill employees get a skill

development/professional updation allowance according

to the levels every month. They also get reimbursement

for professional/technical journals or books. This payable

on yearly basis.


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Level 1-3 gets Rs. 100, Level 4-6 gets Rs. 150, Level 7-8

get Rs. 200, Level 12-14 get Rs. 3000, Level 15-17 get Rs.

4200, Level 18-19 get Rs. 5400.

CANTEEN AND PICNIC SUBSIDY :

All regular employees get a canteen subsidy of Rs. 300

per month.

All regular employees get a picnic subsidies of Rs. 200

per annum.

TELEPHONE RENTALS

Telephone allowance is available to employees above

level 13.

Level 13 get a bi-monthly rental plus service tax

telephone rentals for 12 months = Rs. 2400

Level 14-15 employees get a bi-monthly rental plus

service tax along with ceiling of calls upto 275 calls.

Telephone rentals for 12 months = Rs. 3780.

Level 16-18 employees get a bi-monthly rental plus

service tax along with ceiling of calls upto 800 calls.

Telephone rentals for 12 months = Rs. 9600.


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Level 19 and above employees get a bi-monthly rental

plus service tax with ceiling of calls upto 1000 calls.

Telephone rental for 12 months = Rs. 12000.


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CHILDREN EDUCATION ALLOWANCE

IDA officers and staff get education allowance of Rs. 150

per child per month upto 2 children i.e., Rs. 3600 perannum.

CDA officers get education allowance upto 2 children 5-20

years of age according to their age.

SELF MARRIAGE GIFT / SILVER JUBILEE MARRIAGE GIFT

All regular employees and management trainees (once

during service) get a gift cheque of Rs. 1000.

All employees with 10 years minimum service and 25

years married life (20 years if retiring) get a gift cheque

of Rs. 2500.

LONG SERVICE AWARDS

All employees with unblemished service of 15 years get a

silver plate costing Rs. 1500, employees completing 20

years get a silver plate costing Rs. 2000 and employees

completing 25 years get a silver plate costing Rs. 2500.

REIMBURSEMENT OF UNIFORM /SPECTACLES EXPENSES :-

All regular employees get Rs. 5700 p.a. for uniform and

Rs. 750 p.a. for spectacles.


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LTC ENCASHMENT

Depending on their level IDA officers are provided LTC for

Air/AC I class or II A/c Sleeper for travelling to any place

in India/Home Town once in a block of 2 financial years

without any ceiling on distance.

Level 12-15 get Rs. 7760 (Rs. 1940 per person per year

for 4 person), Level 16-19 get Rs. 15144 (Rs. 3786 perperson per year for 4 persons).

HOLIDAY HOMES

Levels - 1-8 are entitlement for holiday homes in

Mussooree and Shimla.

Level 10 and above entitlement for holiday homes in

Mussooree, Manali and Shimla.

EARNED LEAVE ENTITLEMENT /ENCASHMENT

All employees (except site employees) are entitled for 22

Earned Leave 12 sick leave and 10 casual leave. Site

employees are entitled for 26 Earned Leave 14 sick leave

and 10 casual leave.

Employees get a encashment of 50% EL once a year.

Employees must have at least 30 days EL at his Credit on

the date of encashment,


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FAMILY PLANNING INCENTIVE :

All regular employees are entitled for Family Planning

Incentives of Rs. 4000.

REIMBURSEMENT IN LIEU OF HOLIDAY HOMES FACILITY

All regular employees (admissible after Probation) are

entitled to any place other than home town. In lieu of

holiday home for 4 persons for 5 days, annually, Level 12-

13 get Rs. 4400, Level 14-17 get Rs. 5200, Level 18-19

get Rs. 5400.

MATERNITY LEAVE

Women employees are entitled for 90 days leave on

delivery and 6 weeks in case of miscarriage/abortion

(both not more than 3 occasions).

STUDY LEAVE

Employees with minimum 2 years service in the company

are entitled for study leave max. 3 years during entire

service.

FIELD ALLOWANCE


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All employees get 15% of their BP with a ceiling of Rs.

725 for level 1-8 and Rs. 1500 for levels 10 and above.

WASHING ALLOWANCE

Level 1-8 are entitled Rs. 40 P.M.

COMPENSATION IN LIEU COMPASSIONATE EMPLOYMENT

Rs. 2 lakhs for natural death and Rs. 1 lakh for accident

death.

HOUSE BUILDING ADVANCES

Employees admissible for advance after 2 years of

service and get a advance of 90% of cost of flat including

cost of land or 100 months salary or 5 lakhs whichever is

the least.

For extension or enlargement, advance given is 90% of

the cost of extension or enlargement or 50 months salary

or 2.5 lakhs whichever is the least.

The rate of interest is 6% upto 1 lakhs for recovery within

25 years, 7.5% for 1-3 lakhs for recovery within 300

months and 9.5% above 3 lakhs for recovery within 300

months.

CAR ADVANCE


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Employees with B.P of Rs. 4000 and above are entitled for

car loan. Car loan is of Actual price or invoice price of new

car or Rs. 2 lakhs, whichever is the least. Rate of interest

changed in 6.5% with recovery within 120 months.

All regular employees are entitled for

scooter/motorcycle/moped/bicycle loan. For scooter /

motorcycle maximise loan is Rs. 35000 (Recovery 90

months), for moped maximum loan is Rs. 15000 (recovery

-90 months), for bicycle maximum loan is Rs. Rs. 2000

(Recovery - 30 months).

OVERTIME ALLOWANCE

Overtime allowance for levels 1-8, employees working

upto 8 hrs a week get a single rate and those working for

more than 8 hrs a week get double rate OT allowance.

ENTERTAINMENT EXPENSES

Level 18 and above employees are entitled for

entertainment expenses. DGM gets EA of Rs. 125, GM

gets EA of Rs. 250 and ED gets EA of Rs. 300.

RETIREMENT BENEFITS

Employees who retire get medical benefits for self and

spouse, holiday home facility, transfer of personal effect


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to have town, brief case, silver plate on last date of

retirement

FACTORS DETERMINING SALARY

KINDS AND LEVELS OF REQUIRED SKILLS

The most important factor influencing the rate of pay of

an employee is the kind of job the person performs. In

classifying or differentiating jobs for pay purpose, no one

single factor carries greater significance than the skills

required of the jobholder. Sheraton tries to absorb the

best professionals and their pay package is designed

according to the knowledge and skills their possess.

THE KIND OF BUSINESS THE COMPANY IS IN

Being a public sector company sheratons pay scale is

governed by the ministry. The ministry sanctions the

compensation budget and pay scales are so designed

that they fit in the budget.

NON MONETARY REWARDS

The other major part of the reward system consists of

non- compensation rewards. These rewards are much

more difficult to classify and the components far more

complex than in the case of monetary rewards.


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PHYSIOLOGICAL HEALTH

Sheraton provides a safe clean working environment

taking care to avoid extreme heat, cold, and humidconditions so that the employees feel comfortable while

working.

DIGNITY AND SATISFACTION

There is conscious effort made in Sheraton to recognize

and appreciate the efforts of a useful and valuable

employee. By this the employee feels happy as he thinks

that he has contributed effectively to the organisation.

Project of Sheraton

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