Non monetary rewards in bhushan steels

Presented by: Scott Young Vice President, Solutions and Strategy Development IncentOne

Indian steel industry

Set up in 1907 with Tata iron &steel co 8% growth rate By 2012,production capacity is expected touch 124 million tons
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Major key players

Tata steel - Flat &long tubes ,bearings, minerals - power,railways,defence ,engineering, domestic construction - flat, round and value added products -mining iron ore, coal & diamond -marine construction ,pipeline laying,drilling oil &gas wells

Steel authority of India ltd.(SAIL)

Bhushan power &steels ltd. Jindal steel & power ltd. ESSAR steels

Bhushan power & steels

Started in 1970

Mission, values and commitment

Products manufactured at Chandigarh plant

Tor steels- construction activities like buildings, roads, bridges

Wire rods- wire drawing units,electrodes,hardware & automobile & automobile components

Non monetary rewards

Definition: any benefit an employee receives from an employer or job that is above and beyond the compensation package(salary, insurance,etc)for specific purpose of attracting to the company as well as retaining and motivating the employees .

Need of non monetary rewards

Positive result for both the workers & organization Improves the employeeemployer relationship Job satisfaction Creates loyalty for the employees Helps in recruiting & retaining employees Increased employees performance
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factors effecting NMR philosophy & practices

Top Management belief Reward Philosophy: Extensive NMR Configuration

Top
Managements

belief

Organization values

Work profile

NMR practice

Top Managements belief

Types of NMR
Interesting work Performance feedback Job security Opportunity to learn new skills Open communication Recognition & pride empowerment Management support

Flexible work hours

appreciation

Theoretical framework
construct construct Dependent Dependent variables variables To study the impact of non-monetary rewards on employees performance employees performance employees performance Recognition, interesting work, job security, opportunity of advancement, job satisfaction,pride,relation with fellow workers, grievance handling procedure, welfare facilities, flexible work hours, quality of work life,appreciation,well treated, good working atmosphere. ,autonomous,rewards,perfomance feedback,empowerment,training& education, open communication
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Independent Independent variables variables

Research objectives
To explore the meaning of non-monetary rewards & identify factors that influence reward philosophy & practices To identify the factors that shape on individuals perception & choices towards a particular reward To explore differences between the choices of the individuals & the practices of the organization

To explore how can the gaps between the employee choices & organizational practices be reduced

Research design

Research methodology
Exploratory
PURPOSE OF THE STUDY

TYPE OF INVESTIGATI ON

Causal

STUDY SETTING

Non contrived

TIME HORIZON

Cross-Sectional

MEASUREME Likert Scale (Interval Scaling) NT AND

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Sample & sampling design

Target population Sampling unit Sampling size Sampling technique Sampling area 400 employees at bhushan power & steels ,Chandigarh Employees working in bhushan power & steel from past 3 years 60 employees which comprises 15% of the population random Bhushan power & steels ltd. Chandigarh

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Data collection

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Statistical tools
Statistical tools helps the researcher to correctly analyse the data. The researcher has used SPSS 17.0(statistical package for social sciences) software for analysis of data. The following tools have been used by the researcher:Factor analysis Correlation Reliability analysis

Factor analysis

Used to define variability among different variables called factors.it is used to find out the most significant variables in the study out of many.

The Current DM Focus Silos

KMO and Bartlett's Test Kaiser-Meyer-Olkin Measure of Sampling Adequacy..813 Bartlett's Test of Sphericity Approx. Chi-Square 882.247 df Sig. 210 .000

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Reliability analysis

Used to signify to what extent data collected is reliable and truly represent s the whole population

Reliability Statistics Cronbach's Alpha Cronbach's Alpha Based on Standardized Items N of Items .920 .920 21

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What Motivates Better Cash or Non-Cash?

Non-Cash Rewards Trophy Value Linked to with the employer More memorable Cash Rewards Intangible.disappear into wallet. Minimal association with employer Fleeting Impact

Appeal to need for social acceptance, increased Used to satisfy basic needs (car payments, self- esteem and self-realization groceries, etc.) Provide strong emotional appeal to participants' Cold currency not very personal personal wants and interests Participant's family is involved in selecting awards No family input into choosing a reward

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Theoretical framework

Source: Deloitte Center for Health Solutions, 2005.

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Impact of Incentives on Behavior Change1

Industry
Johnson and Johnson

Incentive
$500 Rebate on Medical Premiums

Programs
HRA Wellness Programs

Program Participation
No Incentive: 20% With incentive: 90% HRA Participation $225 per employee savings on Medical costs due to risk reduction No Incentive: 50% With Incentive: 82% HRA participation High-Mod risk reduction = $2M in savings 5 year participation rates sustained at 50% Participants increased lifestylerelated costs by 2.5%; Non participants by 18%. 4:1 ROI

Quaker Oats

Up to $300 allocated across HRA, Health Screening, numerous activities Lifestyle programs.

We Energy

Point-based program $200 - $300/year $240 Cash Reimbursement of Wellness Center Fee

HRA, Online programs, fitness challenge3 Participation in Wellness Center Programs

Motorola

Hoffman LaRoche

$25 gift certificates

Participation in 12No incentive: 10% participation health related activities With Incentive: 30% participation

1 Use of Incentives to motivate healthy behaviors among employees. E. Finkelstein and K. Kosa. Literature Review. Gender Issues, Summer 2003.

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