incentives schemes

8/9/2019 Incentives Schemes

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INCENTIVESNCENTIVES

CHEME CHEMESTRUCTURETRUCTURE



INTRODUCTIONNTRODUCTION

,In simple words incentive is anything that attracts a.worker and stimulates him to work The incentives can be

- .financial and non financial Both types of incentives play

. ,important role under different conditions For example financial incentives are considered to be more valued.under the work conditions where wages are at low levels On

,the contrary nonfinancial incentives are more preferable where wage levels are high and the rate of tax is

. ,progressive However a review of research evidences

indicates that there is a shift in emphasis in the demands-of employees and their unions from financial to non

.financial benefits



“ Wage incentives are extra financial

.motivation They are designed to stimulate human effort by rewarding the,person over and above the time rated

,remuneration for improvements in the

"present or targeted results

DEFINITIONEFINITION



The belief that money is a strong.motivator That the relationship between effort and

.reward can be systematically established

The relationship so based leaves no doubts.in the minds of the concerned employees The feedback to the employees is immediate

.and direct

ncen ve sc eme ncen ve sc eme s usually based on s usually based on

:hree assumptions:hree assumptions



LASSIFICATION OF LASSIFICATION OFINCENTIVESNCENTIVES



EQUISITION OF GOOD EQUISITION OF GOOD NCENTIVES PLANNCENTIVES PLAN

ØSimplicityØ Encourage initiativeØ Definiteness and flexibility

Ø Properly communicated to employeesØ Wide coverage and equitableØ Guarantee of minimum wage paymentØ Scientific fixation of standard workload

Ø Justice to employer and employeesØ -Direct efforts reward relationshipØ Acceptable to workers



IMITATIONS OF IMITATIONS OF NCENTIVE PAYMENTSNCENTIVE PAYMENTS

Ø Possibility of quality deteriorationØ Introduction of new machines and methodsdifficultØ Labour cost may increaseØ Neglect of security rulesØ Dissatisfaction among employees

Ø Difficulty in the calculation of incentive paymentØ Difficulties in deciding standardperformance

Ø Incentive alone cannot act as motivators



FRINGERINGE

BENEFITSENEFITS



Fringe benefits are always in

addition to regular wage payment. . .i e direct remuneration The purpose of fringe benefits is to retain

efficient and capable people in the

.organization over a long period




“ Fringe benefits may be defined

as wide range of benefits and services that employees receive

as an integral part of their

”total compensation package

DEFINITIONEFINITION



EATURES OF FRINGES EATURES OF FRINGES

BENEFITSENEFITSØ Different from regular wages

Ø Employee motivationØ Useful but avoidableexpenditure

Ø Benefial to all employees



Ø To supplement direct remunerationØ Employers prefer fringe benefits

Ø To retain competent employeesØ To develop good corporate imageØ To raise employee morale

Ø To motivate employees

OBJECTIVESBJECTIVES



) :Payment for time not worked by the employee( ) , ,Holiday vacations Leave with pay and

.llowances) :Contingent and deferred benefits

( ) Pension payment , roup life,nsurance benefit ( ) .Group health insurance

) :Legally required payments

( ) ,Old age disability and health.nsurance( ) .Unemployment compensation( ) ’ .Worker s compensation

) . :Misc benefits

( ) .Travel allowances( ) ,Company car and membership of clubs.tc

( ) .Moving expenses( ) .Child care facilities( ) ,Tool expenses and meal allowances

.tc

YPES OF FRINGE BENEFITS YPES OF FRINGE BENEFITS



DVANTAGES OF DVANTAGES OF

RINGE BENEFITSRINGE BENEFITSØ Support employee remuneration

Ø Raise employee efficiency andproductivityØ Added employee attraction

Ø reduce employee fatigueØ Develop good corporate image



Ø ringe benefit may lead to nhealthy competition among.mployees

Ø hey expected befit may not be vailable if the monetary

enefits offered adequately

.ttractive to employeesØ he motivation of employees may ot be as per expectation if the

mplementation of the benefits

.cheme is not transparent

IMITATIONS OFIMITATIONS OF RINGE BENEFITSRINGE BENEFITS




he Sutlej Jail Idiot Nigam– (imited SJVN formerly Nathan

-hakra Power Corporation Limited

) ,JPC was incorporated on May 24 988 as a joint venture of the( )overnment of India GOI and the

( )overnment of Himachal Pradesh GOHP

, , ,o plan investigate organize, -xecute operate and maintain Hydro.lectric power projects



OBJECTIVESBJECTIVES

Ø perating and maintaining power stations

.ith maximum performance efficiencyØ stablishing and following sound

,usiness financial and regulatory.olicies

Ø .aking up of other hydro power projectsØ ompletion of the new projects allocated

o SJVN in an efficient and cost effective.anner

Ø reating work culture and work

nvironment conducive to the growth and evelopment of both the organization and

he individuals through introduction of.articipative management philosophy



To make India the energy source of the-future by reorganizing socio economic

development with passion and professionalism for sustainable viability

of the corporation on bedrock of sound.commercial principles Towards the end of

sustainable development of project areas

,and owning corporate social responsibility

adoption of peoples' empowerment by.education

VISIONISION



, , ,To plan investigate organize,execute operate and maintain power

, &projects evacuate distribute, &power and explore arrange exploit resource inputs in India

and abroad

MISSIONISSION



INCENTIVNCENTIV



he purpose of any Incentive cheme is to motivate the employees

.o give their best A successful ncentive Scheme should strike a

alance between short range and long ange plant requirement and should

chieve a good blend of two in such a ay as to optimize Generation on

.ustained long range basis




MPLOYEE MPLOYEE:-ACILITIES:-ACILITIES Leave Travel Concession

Medical Attendance

Leave

Payment of Expenditure on Children'sEducation Company Leased Residential Accommodation forExecutives

Allotment of Residential Accommodation

Incentive Scheme for Promoting Small FamilyNorms Company Vehicle facility



ERMINAL INSURANCE ERMINAL INSURANCEBENEFITSENEFITS

Voluntary Retirement Scheme

Group Insurance Scheme

Group Personal Accident

Insurance Scheme

Employees Provident Fund



ADVANCESDVANCES

House building advance

Multiple purpose advance

Personal computer advance



AY AND AY ANDALLOWANCESLLOWANCES

ay Fixation Rules

erks and Benefits to/ ( )xecutive Engineer Trainees

eimbursement of Expenditure on

/unch Tea ree Electricity

raveling and Daily Allowance

.



The initial basic pay of an employee newly appointed to a post under the Company is fixed at the minimum of the

,scale of pay to which he is appointed except in the:following cases

)1 After carrying out due process of selection if departmental candidates selected for higher posts which

involves higher responsibilities and pay scales his Pay

.will be fixed as on promotion)2 In the case of person who are already in employment with the Central

) , ,3 Government State governments Public sector Undertakings,or other Public bodies pay under the Company will be

fixed at the stage in the scale that total pay and DA being drawn in the previous employment

AY FIXATION RULES AY FIXATION RULES IXATION OF PAY ON IXATION OF PAY ON

NITIAL APPOINTMENTNITIAL APPOINTMENT



Following perks and benefits shall be admissible for top level in respect of

/ ( ) .Executive Engineer Trainees appointed.1 :Perks and Benefits

/ :Following Perks Benefits are providedØ Provident FundØGroup Personal Accident InsuranceØGroup Insurance

Ø .Medical ReimbursementØleave

ERKS AND BENEFITS TO ERKS AND BENEFITS TO/XECUTIVE ENGINEER XECUTIVE ENGINEER

( )rainees)rainees



XPENDITURE ON XPENDITURE ON/UNCH TEAUNCH TEA

Reimbursement of expenditure/on lunch tea is admissible to

employees borne on the regular rolls of the Corporation posted at all the project stations @

. /- .Rs 425 per month



RESEARCH RESEARCH

ON ON INCENTIVES INCENTIVES

PROVISION PROVISION OF OF DIFFERENT DIFFERENT

FIRMS IN FIRMS INNIGERIANIGERIA



ACKGROUND OF THE ACKGROUND OF THERESEARCHESEARCH

Productivity could be considered as relationship

between output and input, ratio of output to input or

outflow to inflow of resources. Productivity is on decline in

firms as a result of low morale of workers and this should

be a major concern of every organization that desires long-

term survival, thus companies in Nigeria in order to

escape this malaise, are currently applying variousincentives schemes in order to motivate their employee

onto higher productivity through financial and non-

financial based incentive schemes.



IMS AND IMS AND

OBJECTIVESBJECTIVES Incentives are not just jumpstarted in provision

without adequate pre-investigation of type and

approach to adopt. The aim of this research work is to

determine

ØThe type of incentives in operation 2 in construction

firmsØPriority accorded the incentives and

ØThe incentives that could be used to produce

reinforcing effect on others.



There are two variable groups involved:

Incentives and Construction Firms.

Incentives variable group consist of financial

incentives and non-financial incentives while the

Construction firms Variable group are large Scale

Construction Firms (non-Indigenized firms), smallscale Local Firms and Medium Scale Local Firm.

ARIABLES ARIABLESGROUPSROUPS



The tool of the research pivots around the

variables, the incentives and construction workers

that belong to the firm’s categories. The concept of theframework of this research is that incentives are part

of input and that input is inversely proportional to

productivity and directly proportional to

output/performance.

ONCEPTUAL ONCEPTUALFRAMEWORKRAMEWORK



VAILABLE OF INCENTIVE FIN INN

-NDIGINISED AND NON-NDIGINISED AND NON

NDIGENISED FIRMSNDIGENISED FIRMS



( -VAILABLE OF INCENTIVE NON( -VAILABLE OF INCENTIVE NON)INANCIAL IN INDIGENISED AND INANCIAL IN INDIGENISED AND

-ON INDIGENISED FIRMS ON INDIGENISED FIRMS



1.) Management of construction firms should give furtherencouragement to the provision of Financial incentives such as

Cash awards, Transport allowance, Overtime-with -pay,

2. ) Accident insurance, Hospital allowance since they are

preferred by the workers.

3. ) Management of construction firms should introduce

incentives like Sport facilities, Educational

facilities, involvement in decision making and participation in

conferences that stimulates sense of common purpose among

workers.

4. ) Incentives like Overtime-with- pay should be carefully

handled, as this can lead to workers deliberate substituting

official work for overtime

RECOMMENDATIONECOMMENDATION



The objectives of the research work have been achieved.

The research work has however revealed the wide margin

existing among the indigenized firms and their non-

indigenized (indigenous) counterpart, approaching, it firmincentives perspective. However, in order to boost

productivity, certain of the non-financial incentives could

be used to reinforce others like social security, conducive

work environment, accident free environment,involvement in decision making So also the research work

has highlighted various types Incentives obtainable, and

their arrangement in order of priority.

ONCLUSION OF ONCLUSION OFRESEARCHESEARCH



The energy supply system will change dramatically over the

coming decades. Among others renewable energy sources

(RES) will increasingly be applied in all Member States (MSs).

This will have an impact on the demand for materials like

steel, copper and different plastics. Therefore, the European

Copper Institute (ECI) asked KEMA to carry out a cross

analysis study of incentive schemes in different EU countries

in the field of renewable energy (RE) systems and distributed

generation (DG).

NTRODUCTION NTRODUCTION



With the publication of the EU-targets the EUwants to show global leadership in this area. This

chapter (deliverable) will provide an overview of the

Kyoto and RE (for electricity) targets and what thismeans to each EU MS (i.e. EU-27). It is important to

emphasize that the years for which the targets are

set differ; this is caused by the fact that these targets

are not agreed simultaneously.

-U TARGETSU TARGETS



For this deliverable for each MS a 1-2 page fact sheet is

composed with information on the European set Kyoto, RES

and RES-E targets for each country, their progress so far and

how they are planning to fulfill these targets nationally. To be

able to show this information, access to governmental policies

documents/data was required. As the majority of these

documents are only written in national languages, we tried to

verify the information with national energy agencies. They

proved to be a very important source.

VERVIEW OF DIFFERENT VERVIEW OF DIFFERENT/YPES OF DG RENEWABLES/YPES OF DG RENEWABLES

PPROACH AND RESULTS PPROACH AND RESULTS



Feed-in-Tariffs and premiums are used in 18. These schemes

are granted to operators of eligible domestic renewable

electricity plants for the electricity they feed into the grid. The

preferential, technology-specific feed-in tariffs and premiums

paid to producers are regulated by the government. Feed-in

tariffs take the form of a total price per unit of electricity paid

to the producers whereas the premiums (bonuses) are paid tothe producer on top of the electricity market price.

- -EED IN TARIFF AND-EED IN TARIFF ANDPREMIUMSREMIUMS



DVANTAGES DVANTAGES

ND ND

-IS ADVANTAGESIS ADVANTAGES



A relatively new system is that of renewable

obligations, also called quota obligations, where

minimum shares of RES are imposed onconsumers, suppliers or producers. The system

is often combined with TGCs, although this

does not necessarily have to be the case.

QUOTASUOTAS



CONCLUSIONONCLUSION

DVANTAGES DVANTAGES

ND ND-IS ADVANTAGESIS ADVANTAGES



RADABLE GREEN RADABLE GREEN( )ERTIFICATES TGCS( )ERTIFICATES TGCS

ØCONCLUSIONONCLUSION

Ø DVANTAGES

DVANTAGES

ND

ND




/ENDERING BIDDING ENDERING BIDDINGSYSTEMSYSTEMS


Ø

DVANTAGES DVANTAGES

ND ND




ISCAL AND FINANCIAL ISCAL AND FINANCIALINCENTIVESNCENTIVES


Ø

DVANTAGES DVANTAGES

ND ND




Wage is a monetary payment made by the employer to his

employee for the work done or services sundered. It is a

monetary compensation for the services rendered. A workermay be paid rs.100 per day or Rs.4500 per month.

Compensation payable to an employee includes the following 3

parts/components:

ØBASIC COMPENSATIONØINCENTIVE COMPENSATION

ØSUPPLEMENTARY COMPENSATION

EANING OF EANING OF/AGE COMPENSATION PAYMENT AGE COMPENSATION PAYMENT



Wage payment is equally important to employees as

their profit depends on the total wage bill. An

employer in general, is interested in paying wages and

thereby controls the costs of production. However, low

wages are not necessarily economical. In fact, they

may prove to be too costly to the employer in the longrun.

MPORTANCE OF WAGE MPORTANCE OF WAGE AYMENT TO EMPLOYER AYMENT TO EMPLOYER



Government also gives importance and attention to

wages paid to industrial workers as industrial

development, productivity, industrial peace and the

cordial labor management relation largely depends on

the wage payment to workers. Government desires to

gives protection to the working class and for his

minimum wages act and other act are made.

MPORTANCE OF WAGE MPORTANCE OF WAGE AYMENT TO GOVERNMENT AYMENT TO GOVERNMENT



Wages payment is important to all

categories of workers. It is the income earned

by hard work. It provides bread to the workers

and his family members. Wages is a matter of life and death to workers/employees. Their life,

welfare and even social status depend on the

wage payment.

MPORTANCE OF WAGE PAYMENT MPORTANCE OF WAGE PAYMENT O EMPLOYEESO EMPLOYEES



ØDemand and supply position in the

employment/labourmarket:

ØNature and feature of the job:

ØCost of living:

ØBargaining power of workers:

ØEfficiency and productivity of work force:

ACTORS ACTORS/NFLUENCING DETERMINING NFLUENCING DETERMINING

AGE RATESAGE RATES



--HANK YOU--HANK YOU

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