REWARDING PERFORMANCE: FINANCIAL & NON- FINANCIAL REWARDS

PRESENTED BY:

PARTHO SARKAR PRIYANKA DUPARE RICHA TIWARI UDITA

REWARD

It can be anything that attracts an employees attention & stimulates him to work. In the words of Burrack & Smith , An incentive scheme is a plan or programme to motivate individual or group performance. An incentive programme is most frequently built on monetary rewards but may also include a variety of nonmonetary rewards or prizes. The use of incentives assumes that peoples action are related to their skills & ability to achieve important longer run goals.

WHOM TO REWARD?
Rewards are symbol of appreciation & recognition. it reinforce what the organization values & wants to be strengthened. so almost everyone in the organization can be covered by the reward system.

WHOM TO REWARD?

Individual employees Teams Ex: in Tata Cummins, which runs operation through self-managed team of workers, each team is given money every month to use for raising the level of the performance.

The organization Outsiders: (customer, suppliers, vendors) Ex: In associated capsules & universal capsules, outstanding employees chosen are asked to name any outsider, who in their opinion, has contributed to the business of the company in the last quarter. They may invite that person to the company's dinner & the chairman writes the invitation letter to such persons.

WHAT TO REWARD?

Performance Speed Efficiency Loyalty Innovation Upholding values Learning Technical solution Good behavior Sense of humor Publications Event management Social concern

OBJECTIVE OF REWARD SYSTEM:

Attract Retain Motivate

AN INCENTIVE PLAN HAS THE FOLLOWING FEATURES:

May consist of both monetary & non-monetary elements. Mixed elements can provide the diversity needed to match the needs of individual employees. Timing, accuracy & frequency are the very basis of a successful incentive plan. Plan requires that it should be properly communicated to the employee to encourage individual performance, provide feedback & encourage redirection.

DETERMINANTS OF INCENTIVES:

Individual employee Work situation Incentive plan

TYPES OF REWARDS:
   

Financial Direct Indirect: Voluntary Involuntary Non financial

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DIRECT:
Basic pay Overtime work Holiday premium Bonuses based on performance Profit sharing Opportunity to purchase stock options. Commission Dearness allowance. Shift allowance.

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INDIRECT: VOLUNTARY
Payment for time not work Leave without wage Healthcare Life insurance Retirement plans Conveyance Mobile conveyance Child education Vacation reimbursement Housing Re-allocation

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INVOLUNTARY
PF Pension Medical insurance Social security Medical leave Gratuity Worker compensation ESIC

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NON-FINANCIAL
Credits Flexible timing Part time work Job sharing Job rotation Better working condition Appropriate status symbol Modified retirement plan Voluntary retirement service

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