rewards and recognition

Rewards and Employee Production in Relevance to Performance Management

Presented by:

Pradeep Tokas

Sanjay Rauth

Saif Siddique

Natasaha Singh

Presented to:

Prof. Uma Bal Kumar

Total Rewards

What does Total Reward mean?

All of the tools available to the employer that may be used to attract, motivate and retain employees. Total rewards include everything the employee perceives to be of value resulting from the employment relationship.

And the award for best employeegoes to …………

Elements of Total Rewards

What are the elements of total reward?

There are five elements of total rewards, each of which includes programs, practices, elements and dimensions that collectively define an organization's strategy to attract, motivate and retain employees. These elements are:

Compensation Benefits Work life performance

Recognition and development

Career Opportunity

1 2 3 4 5

Total Reward essentially includes the above mentioned aspects

Elements of Total Rewards ElaboratedCompensation :Compensation Pay provided by an employer to an employee for services rendered (i.e., time, effort and skill). Compensation comprises four core elements: Fixed pay Variable pay Short-term incentive pay Long-term incentive pay.

Benefits :Benefits Programs an employer uses to supplement the cash compensation that employees receive. These programs are designed to protect the employee and his or her family from financial risks Social & group Insurance Pay for Time Not Worked

Work-Life :Work-Life A specific set of organizational practices, policies, programs, plus a philosophy, which actively supports efforts to help employees achieve success at both work and home. There are seven major categories of organizational support for work-life effectiveness in the workplace.

Performance and Recognition: Performance involves the alignment of organizational, team and individual effort toward the achievement of business goals and organizational success. Acknowledges or gives special attention to employee actions, efforts, behavior or performance.

Elements of Total Rewards Elaborated

Elements of Total Rewards ElaboratedDevelopment and Career Opportunities : Development and Career Opportunities Development A set of learning experiences designed to enhance employees' applied skills and competencies; development engages employees to perform better and leaders to advance their organizations' people strategies.

The exchange relationship

Employer Employee

The Employer provides total

rewards valued by the employee

The Employee provides time,

talent, effort and result

The Exchange Relationship

Basic Categories of rewardNo compensation award: Those beneficial factors related to the work situation and well-being of each employee. Two Basic Categories of Rewards

Compensation rewards: Those given in return for acceptable performance or effort. They can include nonfinancial compensation.

1

Financial Compensation: Straight Salary are simple to administer Planned earnings are easy to project. Salaries can provide control over salespeople’s activities, and reassignments are less of a problem. Salaries are useful when substantial development work is required.Disadvantages: Salaries offer little incentive for better performance. Salary compression could cause perceptions of inequity among experiences salespeople. Salaries represent fixed overhead.

2

Basic Categories of reward

Basic Categories of reward Nonfinancial Compensation Opportunity for Promotion: The ability to move up in an organization along one or more career paths Sense of Accomplishment: The internal sense of satisfaction from successful performance Sales managers should facilitate salespeople’s ability to feel this a sense of accomplishment

3

Nonfinancial Compensation Opportunity for Personal Growth: Access to programs that allow for personal development (e.g., tuition reimbursement, leadership development seminars) Recognition: The informal or formal acknowledgement of a desired accomplishment Job Security: A sense of being a desired employee that comes from consistent exceptional performance

4

Basic Categories of reward

Monetary/Non Monetary awardsFollowing are some of the monetary/non monetary awards

SMART-Rewards

Meaningful

Achievable Reliable

Timely

Money is the best awardMoney is the best reward :Money is the best reward Pay for performance specially money act as the most efficient reward for the employee motivation for the goals of the organization to achieve but at the same time non monetary benefits like recognition, awards, decision sharing and making decision many too plays a vital role in enhancing the efficiency and productivity of an employee.

Rewards and Recognition : Examples from the field

Larson and Turbo is giving awards to employees who haveperformed well, in terms of money, mementos, certificates stating best employee. Some cases employees get promoted. Quarterly review is done by Project Manager and employees get salary increment and promotion if the performance is good. On the basis of evaluation reports of the employee HRD department of Larson and Tubro they plan special skill development training for employees.


Welfare facilities:Company is providing various working facilities like medical insurances,group life insurance/ education assistance to children social membership, club membership. Canteen facilities at very low cost. They havewelfare activity group which is always in process of rebuilding andimproving facilities for employee.

Career development facilities:Employees who are willing to study further, Larson and Turbo isproviding monitory assistance to employees and they make bonds,employees get salary during their education period. Some Employeesat executive level get education expense also.


Some of the recognition categories are given to employees:1. Thank you slips2. Pat on back3. Appreciation letters4. Simply the Best - Team Award5. Holiday Plan


Reliance's appraisal and reward system is aimed at increasing employee involvement in the goals and objectives of the organization, and encouraging individuals to go beyond their scope of work, undertake voluntary projects that enable them to learn, and contribute innovative ideas in meeting the targets of the company. Reliance places great emphasis on soft, conceptualand cross-functional skills, especially at managerial levels. Employee commitment to areas like Human Resource Development, Industrial Relations, Health, Safety and Environment, and Quality and Documentation is given high importance.


Appraisal & reward in Maruti UdyogAppraisal· New Appraisal System based on KRAs & Targets· Review of Targets at regular Intervals· People Development an important KRA

REWARD· Promotions based on Performance· Productivity & Profit-linked Incentive Schemes· Training including Long-term SMC Japan Trg.· Highest paid workforce in the Industry, if not the Country

Thank You

rewards and recognition

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