REWARD POLICIES

N.L.Rastogi, CHE

INTRODUCTION
Incentives or rewards put the fire in the belly.
Once people are in their jobs, they need to be
rewarded for good performance. Organizational
rewards are powerful incentives for improving
employee and work group performance. They
inspire people to give their best to the
organization. People get the feeling that they
have done something worthwhile and something
that is being recognized and rewarded.
Incentives and rewards, therefore, are an
essential feature of most modern organization.

DEFINITION

An `incentive or `reward can be

anything that attracts a
employees attention and
stimulates him to work.

OBJECTIVES
To attract, motivate and retain
employees.
To build loyalty and trust.
To boost morale and job satisfaction.
To promote performance and
productivity.
To stress the importance of ethical
behaviour.

TYPES OF REWARDS
Intrinsic rewards:
Refers to rewards that an individual receives
for himself largely as a result of the job that
the worker does. Provided through:

Participation in decision making

Greater job freedom
Opportunities for personal growth
Interesting & challenging job
Job enrichment/job enlargement/job rotation
Flexible work hours/shorter work weeks

TYPES OF REWARDS
Extrinsic rewards:
Refers to rewards provided through:
Direct compensation
Indirect compensation
Non-financial compensation

TYPES OF REWARDS
Extrinsic rewards:
Direct compensation:

Basic Wage/salary
Performance Bonus
Overtime & Holiday premiums
Profit sharing
Stock options

TYPES OF REWARDS
Extrinsic rewards:
Indirect compensation:
Protection programs Pension, Insurance
Pay for time not worked Rest periods,
holidays, vacations, sick leave etc.
Services & perquisites
Eating/transport/housing/ child care
facilities
Recreational, social & cultural programmes
Educational/medical/financial & legal
services

TYPES OF REWARDS
Extrinsic rewards:
Non-financial compensation:
Management appreciation/recognition
Preferred office furnishings/lunch hours
Preferred work assignments
Assigned parking spaces
Business cards, own secretary
Impressive job titles

Thank you!
Have a nice
day..