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“What is for me?” That is a question every person consciously or unconsciously asks before engaging in any form of behavior. Obviously then it applies to all employees in an organization. Whether dealing with monkeys, rats or human beings, it is hardly controversial to state that most organisms seek information concerning what activities are rewarded, and then seek to do (or at least pretend to do) those things. Like a child being given a chocolate and a big hug after cleaning her room, rewards and recognition can be powerful tools for employee motivation and performance improvement. People are patrons of organization. It’s people who make an organization a success or allow it to be handed over to Board for industrial and financial reconstruction. So today the main thrust area of study is to attract
and retain people.
Reward System “Fat pay package, quicker promotions and incentives are not enough any more. Employers need to listen what employees want.” A ‘reward’ or ‘incentive’ can be anything that attracts a worker’s attention and stimulates him to work. In the words of Bureckm and Smith “reward systems is a plan or programme to motivate individual or group performance.” but also includes a variety of non-monetary rewards or prizes On the other hand French says the incentive system has a limited meaning that excludes many kinds of inducements offered to people to perform work, or to work up to or beyond acceptable stands. It is related with wage payment plans which tie wages directly or indirectly to standard productivity or to the profitability of the organization or both criteria. The use of incentives assumes that people’s actions are related to their skills and abilities to achieve important longer run goals. Even though many organization by choice or by tradition or contract. In fact rewards on non performance criteria, rewards should be regarded as a “pay off” the performance. Jack Zigon defines rewards as “something that increase frequency of an employee action”. This definition points to an obvious desired outcome of rewards and recognition: to improve performance. An incentive programme is most frequently built on monetary rewards,
An incentive plan has following important features:1. An incentive plan may consist of both ‘monetary’ and ‘nonmonetary’ elements. Mixed elements can provide the diversity needed to match the needs of individual employees. 2. The timing, accuracy and frequency of incentives are the very basis of a successful incentive plan. 3. The plan requires that it should be properly communicated to the employees to encourage individual performance, provide feedback and encourage redirection.
rewards must have some redeeming merits. 4 . The work situation: This is made up of four important elements. Individual Work situation Incentive plan 1. For e. Enlightened managers realize that all people do not attach the same value to monetary rewards. 2.g. marital status economical need and future objectives . which affect the suitability and design of rewards to varying degrees. bonuses.Determinants of Rewards These features are contingencies. prizes or trips. Employees’ view these things differently be of age. The effective use of rewards depends on 3 variables. there might be a no of monetary and non monetary rewards to motivate employees.however even though employees’ reaction to rewards varies greatly. The individual and the rewards: Different people value things differently.
Their effectiveness depends upon 3 factors. These 4) Equity:responses provide important reinforcement. 5 . if speed of equipment operation can be varied. extended vacation time and other privileges than individual values. Worker considers fairness or reasonableness as part of the exchange for his work. 3) Feedback:A worker needs to be able to see connection between works and rewards. it can establish range of the rewards.1) Technology: Machine or work system. Rewards may take the form of earned time off. Rewards in general are important motivator. greater flexibility in hour worked. 2) Satisfying Job Assignment: A worker’s job may important a number of activities that he finds satisfying.
having a feeling of accomplishment. and performance-based rewards. shorter work-weeks. such as having pride in one’s work. flex-time and job rotation can offer intrinsic rewards by providing interesting and challenging jobs and allowing employee greater freedom. These techniques of job enrichment. We have selected three of the more typical dichotomies: intrinsic versus extrinsic rewards.initiated rewards. These satisfactions are self. or being part of team. Types of Rewards There are a number of ways to classify rewards. Intrinsic versus Extrinsic Rewards Intrinsic rewards are the satisfactions one gets from the job itself. financial versus non-financial rewards. These categories are far from being mutually exclusive.• • • Drives Preference value and Satisfying value of the goal objects. 6 .
If they do. they can do this directly. bonuses.through wages. that is. Motivational researchers had generally assumed that intrinsic and extrinsic rewards were independent. research conducted in the late 1960s and early 1970s suggested that this assumption might be in error. Thus. The explanation for these occurrences went something like this. Their common thread is that they are external to the job and come from an outside source. if an employee experiences feelings of achievement or personal growth from a job. For money or other extrinsic rewards to be used as effective motivators. mainly management. or indirectly. profit sharing and the like. were reduced. Early experiments designed to test the independence assumption tended to support the proposition that when extrinsic rewards like money. What has happened is that an external stimulus has been substituted for an internal one. the internal rewards. promotions or fringe benefits were used as payoffs for superior performances. which are derived from the individual doing what he or she likes. Financial versus Non financial Rewards Rewards may or may not enhance the employee’s financial wellbeing. If the employee receives a salary increase or write-up in the company magazine. But when this is done it decreases the internal satisfaction the employee gets from doing the job.Extrinsic rewards include money. However. the stimulation of one would not affect the other. we would label such rewards as intrinsic.through supportive benefits 7 . promotions and fringe benefits. they should be made contingent on the employee’s performance. we would label those rewards as extrinsic.
such as pension plans. A paneled office. Their common link is that they do not increase the employee’s financial position. their own business cards. The non financial rewards that we will identify represent a few of the more obvious.located parking space with their name clearly pained underneath the “Reserved” sign. however. a carpeted floor. If lunch is normally from eleven in the 8 . The old saying “one man’s food is another man’s poison” applies to entire subject of rewards. their own secretary or a well. Some workers are very status conscious. paid vacations. Some employees value having their lunch between one and two o’clock in the afternoon. Instead of making the employee’s life better off the job. but especially to the area of non financial rewards.” another finds superfluous. the creation of these rewards is limited only by managers’ ingenuity and ability to assess “payoffs” within their jurisdiction that individuals within the organization find desirable. What one employee views as “something I have always wanted. Therefore care must be taken in providing the “right” non financial reward for each person. paid sick leaves and purchase discounts. Nonfinancial rewards cover a smorgasbord of desirable “things” that are potentially at the disposal of the organization. Similarly status oriented employees may value an impressive job title. yet where selection has been done assiduously. non financial rewards emphasize making life on the job more attractive. the benefits to the organization should be impressive. a large walnut desk or a private bathroom may be just office furnishing that stimulates an employee toward top performance.
Performance-based rewards are exemplified by the use of commissions. piecework pay plans. profit sharing. credentials (such as collage degree or a graduate diploma). seniority or time in rank.morning until noon. Few organizations actually reward employees based on performance. or future potential (the recent M. the benefit of being able to take their lunch at another. membership-based rewards include cost-of-living increases. Having a chance to work with congenial colleagues and achieving a desired work assignment or an assignment where the worker can operate without close supervision are all non financial rewards that are within the discretion of management and. more preferred. time can be viewed as a reward. when carefully used. company paid membership in a country club or use of company-owned automobiles and aircraft by executive may be given 9 . incentive systems. While the managers in the most organizations will vigorously argue that their reward system pays off for performance.A out of a prestigious university). Performance-Based versus Membership-Based Rewards The rewards that the organization allocates can be said to be based on either performance criteria or membership criteria. benefits and salary increases attributable to labour market conditions. The demarcation between the two is not always obvious. can provide stimulus for improved performance. group bonuses or other forms of merit plan. On the other hand. For instance.B.
Advantages of the Performance Related pay (PRP) scheme Incentives are linked to meeting targets or objectives. then they are membership based. we should treat them as performancebased rewards for those who might deem them attractive. Where employees’ performance can be measured and the amount of money available to reward performance is sufficient to module effort. it saves money if the organization targets rewards on those who performs. However. If they are available to.for membership or performance. all middle and upper level executives. High performers are attached to PRP culture in the knowledge that pay is linked productive effort and that poor achievement is discouraged. Linking pay to performance that lends itself to measurement is considered fairer then awarding across-the-board cost of living increases. 10 . which do not discriminate between high and low performers. if they are made available selectively to certain managers based on their performance rather than their “entitlement. as well as to the quality of performance as perceived by superiors.” which of course implies they can also be taken away.
There is an emphasis on a result oriented culture. which one would expect to occur any way in accordance with the employment contract. with the accent on effort directed at activities that the organization values. Open communication between managers and subordinates could be discouraged. because subordinates are less likely to divulge information on personal short comings just in case such disclosures act to their disadvantage. Employees receive useful feedback on their performance. which are necessary for coping with today’s climate. Here good performance is expected and provision is made for it and where there is a poor performance it is job of the management to sort it out. The rewarding of self-centered individualism can undermine the co-operation and team work. Disadvantages of the PRP scheme Behavior is rewarded. Importance 11 .
power. paid family insurance. and this preference increased with number of dependents. To some employees 1000/. rated extra vacation as most preferred. in decreasing order. It was found that the employees in general. early retirement and work schedule rearrangements.Rs –a-month raise would be very important. Money. One hundred and fifty employees were asked to rank their performance for rewards.Never assume a particular reward is universally important to all employees. 12 . Married employees also valued insurance plan more than single employees. or that older employees seek increased retirement benefits while younger workers opt for more cash. while desire for more pension benefits increases. followed by pay. Other employees. a measure of one’s achievements or merely means to a comfortable life style. Research indicates that the preference for rewards will be significantly affected by age. For instance. a pension increase. marital status and number of children the employee has. for example. Young unmarried person desire more time off the job and young married men rated more vacation lower than family health coverage. But this ranking varied among different employee groups. It may represent basic security and love. can have a very different meaning to different people. This different among employees was substantiated in a study undertaken at a public utility. in the same job and at the same salary level might far prefer an extra week of vacation. the preference for insurance plan decreased with age.
The advantages of flexible compensation go beyond merely allowing employees to customize their own compensation package. it makes clear to employees how much the organization is actually spending to compensate them and it ensure that the money will be spent only on the rewards the employees want. Employees should be rewarded with what they individually consider important. One effort to broaden the idea of individualizing rewards has been labeled ‘cafeteria compensation’. there is the tendency for employees to think in short. Therefore a good reward system should be designed to offer heterogeneous rewards to a heterogeneous labour force. and they can choose a mix salary.range rather than longrange terms. On the negative side. This method involves little in additional direct costs. employees are told what their total compensation is.In expectancy theory terms. deferred compensation and other benefits suit their particular needs. Equitable Distribution 13 . Most organizations that have instituted a cafeteria plan actually provides all employees with minimum insurance and pension benefits and let each employees select additional rewards to suit his or her own needs. In contrast to the traditional manner in which fringe benefits are allocated. Specifically where cafeteria-type flexible compensation exists.all employees get the same package which best satisfies his or her current needs. motivation is optimized when employees see rewards satisfying their individual needs. life insurance.
Evidence indicates that the referent chosen by the employee is an important variable in equity theory. employees can compare their pay relatively to that of others. Based on information that employees receive through word of mouth or through newspapers and magazines on such issues as executive salaries or recent union contract.Employees desire rewards that are distributed in what seems to be an equitable manner. Equity theory has been proposed to explain what happens when individuals perceive an imbalance between what they put into job and what they get out of it relative to others’ give-and-get ratio. It is no secret that employees make comparisons between themselves and their peers. If a person’s ratio and that of others are perceived to be equal. 14 . the individual views herself or himself as under rewarded or over rewarded. Employees perceive what they get from a job situation in relation to what they must put into. Equity theory argues that when an inequality is seen as aversive. neighbors or professional associates. in-equality exists. If they are unequal. This means fairness among the organization’s employee and fairness relative to what people get for doing a similar job in another organization. The “other” category includes other individuals with similar jobs in the same organization. the individual will attempt to correct it. “system” and “self”. as well as friends. The three referent categories have been classified as “other”. They also compare their input-outcome ratio with the input-outcome ratio of their peers. That is. a state of equity is said to exist.
pay policies. The “self” category refers to input-outcome ratios unique to the individual that differ from the individual’s current input-outcome ratio. Based on equity theory. Organization precedents in terms of allocation of pay would be a major determinant in the category. On the other hand. The choice of particular set of referents is related to the information available about referents as well as their perceived relevance. It considers organization wide. employees may choose one or more five alternatives.The “system” category considers organizational pay policies and procedures and administration of this system. implied and explicit. This category is influenced by such criteria as past jobs or commitments that must be met in terms of family role. 1) 2) Distort either their own or others’ input or outcomes Behave in some way so as to induce others to change their inputs or outcomes 3) 4) 5) 6) Behave in some way as to change their own inputs or outcomes Choose a different comparison referent Leave the organization Visibility A reward that is not visible to the employee may fail to get the desired motivating effect from employee. a truly visible reward gets the attention not only of employees but also 15 .
16 . petty complaints. If such information were common knowledge. almost everyone thinks him or her worth more than the next person. On the other hand. and eliminating the secrecy surrounding pay by openly communicating everyone’s compensation. Whether it is true or not. allocating annual salary increases in a lump sum rather than spreading them out over the entire year. The proponents of openness argue that pay secrecy actually demotivates employees. an open pay system demonstrates confidence by management in the structure of compensation and hence it should increase the trust individuals have in the organization. employees would undertake to compare their salaries with those of everyone else and the inevitability of human error would reveal any inequalities in pay system. increased dissatisfaction and perceived if not real inequalities. Probably the most widely discussed and controversial approach to increasing the visibility of rewards is to eliminate the traditional secrecy surrounding pay. There would be misunderstandings. Some organizations have successfully maximized the value of rewards by making them both impressive in size and highly visible. Complete openness about pay policies is indeed rare in organizations. In what ways can managers increase the visibility of rewards? Possibilities include well-publicized bonuses. This latter qualify means visible rewards can contribute to satisfying an employee’s esteem and recognition needs. The misperception of pay contributes to dissatisfaction with pay. Secrecy may tend to work to the disadvantage of using money to motivate managers because even most carefully derived pay schedule and differentials may be seen as potentially less rewarding as they actually are.their peers. and secrecy regarding pay contributes to this misperception.
Continued use of praise results in the reward losing its importance. and when it is. the rewards he received in 1986 should ideally have downside adjustment capability. each year depending on some measure of performance. The annual performance bonus. Rewards are not free goods. However. A high-cost reward simply cannot be given out as often. An effective reward would be flexible in terms of the amount given to everyone in the organization. it suffers from diminishing returns. As a case in point. yet some rewards diminish in importance when used over time. it reduces organizational 17 . Giving rewards frequently is often helpful foe sustaining extrinsic motivation. offers high flexibility. Additionally. and the organization must consider the costs along with the benefits from any rewards. It can be adjusted upward or downward or eliminated. for instant. Low Cost The final quality of an effective reward is low cost. praise is a flexible reward in that its amount can be varied in allocation to and among individuals. If an employee’s job performance declines in 1987.Flexibility An effective reward is one that has the flexibility to vary with changes in performance. Another attribute of flexible reward is that it be given frequently without losing importance. it can be given selectively to those employees who have done a superior job.
Similarly jobs within each organization differ. Because no reward is perfect. 18 .effectiveness as a result of its cost. All other factors equal. the lowestcost reward should be preferable to management. Each organization is unique. Summary A careful review of the above criteria which identified for effective rewards brings one to the conclusion that no organizational reward is ideal on all dimensions. so the rewards that work in one firm may be ineffective in another. managers must carefully assess what they expect from their reward system and structure it so it provides the maximum in motivation potential. and the rewards made available to incumbents of each job should reflect this fact.
based on the individual or group's previous achievements Determination of appropriate rewards Communication of program to employees In order to reap benefits such as increased productivity. small business owners need to confirm that performance has actually improved before rewarding it. As Linda 19 • • • • .DESIGNING A REWARD PROGRAM The keys to developing a reward program are as follows: • Identification of company or group goals that the reward program will support Identification of the desired employee performance or behaviors that will reinforce the company's goals Determination of key measurements of the performance or behavior. Since rewards have a real cost in terms of time or money. if quality is an important issue for an entrepreneur. If teamwork is a business goal. companies frequently make the mistake of rewarding behaviors or achievements that either fails to further business goals or actually sabotage them. the reward system that he or she designs should not emphasize rewarding the quantity of work accomplished by a business unit. Once again. a bonus system rewarding individuals who improve their productivity by themselves or at the expense of another does not make sense. While this may seem obvious. the entrepreneur designing a reward program must identify company or group goals to be reached and the behaviors or performance that will contribute to this. Likewise. Properly measuring performance ensures the program pays off in terms of business goals. the measures need to relate to a small business' goals.
and reduced 20 . It is also important to consider rewarding both individual and group accomplishments in order to promote both individual initiative and group cooperation and performance. Once this has been done. Most reward programs use multiple measures which can include such variables as improved financial performance along with improved customer defects. service. an entrepreneur should consider matching rewards to the end result for the company. Keep your communications simple but frequent to ensure staffs are kept abreast of changes to the system. Lastly. improved customer satisfaction. reinforce the original communication with regular meetings or memos promoting the program." When developing a rewards program. "Performance measures in a rewards program have to be linked to an overall business strategy…. the specifics need to be clearly spelled out for every employee. in order for a rewards program to be successful.000 through improved contract negotiation. Motivation depends on the individual's ability to understand what is being asked of her.Thornburg noted in HR Magazine. Perfect attendance might merit a different reward than saving the company $10.
While previously considered the domain of large companies. especially for small business owners interested in motivating staffs while keeping costs low. it is useful to keep this difference in mind. Recognition programs are generally not monetary in nature though they may have a cost to the company. reward and recognition systems should be considered separately. As noted. small businesses have also begun employing them as a tool to lure top employees in a competitive job market as well as to increase employee performance. RECOGNITION Although these terms are often used interchangeably. Although many elements of designing and maintaining reward and recognition systems are the same. 21 . Employee reward systems refer to programs set up by a company to reward performance and motivate employees on individual and/or group levels.REWARD VS. Sue Glasscock and Kimberly Gram in Productivity Today differentiate the terms by noting that recognition elicits a psychological benefit whereas reward indicates a financial or physical benefit. although employee recognition programs are often combined with reward programs they retain a different purpose altogether. They are normally considered separate from salary but may be monetary in nature or otherwise have a cost to the company.
huge order in single (from one co.Newly joined employee Best Employee of the department . who does his work without any expectation from mgt. 4. 12.For heads who right hand for management too in all activities. 3. Best Management .middle level mgt. 11. Best Agent/ consultant /employee / Star performer of the month / quarter. next level to management who do mostly program & new projects. 6.Who worked lot for co. 7. 9. Best Loyalty . 5. 8. benefit & growth as a friend.) Best Contributor for the team / department Perfect attendance award. 10. Extra miler of the team/ department .Newly joined employee Best New Comer .Some Rewards which are used in different organizations 1.in respective field High Value Sales . Best Technical Leadership . Most Progressive Employee . 2.best in embedded prg.head of R & D.who is not taken leave 22 . Most Efficient Employee .
Planning the compensation strategy Most senior managers wish. concert tickets. This was possible partly because professionally managed compensation systems looked very much alike from one 23 . Compensation systems demanded less senior management attention only a few years ago. Mementos. and there are some fundamental choices senior managers need to make during this process. No other organizational system is so weighed with values and emotions. can busy senior managers safely take the easy way out and leave compensation decisions to their compensation specialists? Or should they devote significant personal attention to compensation? Senior managers should be heavily involved in getting the strategic direction for compensation. senior managers generally left the design of employee compensation systems to technical specialists.13. The topic of rewards is rife with myths that are widely accepted but contradicted by extensive research. Movie tickets. In view of these difficulties. at least at times. certificates. At that time. Nearly everyone has opinions—usually strong opinions—about rewards. Best Software Support 14. Best System Support You can also give them gifts like T-shirt with company logo Jackets. Any change in compensation usually attracts loud complaints from employees who feel disadvantaged by the change. so visible to employees or so much the subject of internal dissent. that they could ignore compensation.
knowledge and competencies. the goal of compensation design was simply to avoid a competitive disadvantage by keeping labour costs in line with those of competitors. The picture has changed greatly during the past decade. The strategic demands of new competitive forces. For most firms. incentives. the goals of the compensation system. Mohrman and Ledford) from 1986 to 1997 show large increases in the percentage of Fortune 1000 using a variety of compensation innovations. A foundation of knowledge will help senior managers 24 . and increase in knowledge work and recognition of the importance of compensation to organizational effectiveness have largely driven these changes. as companies throughout the economy have begun to rethink their compensation systems in search for competitive advantage.company to another. there has been a 50 percent increase in companies using pay for skills. reward system levers and basic choice managers need to make are among these principles. The alignment of compensation with business needs. and the goal of compensation administration was to keep employee noise down. Top managers can no longer afford to leave compensation solely in the hands of compensation professionals. Base pay. A 50 percent increase in companies using work group or team incentives. There are some basic principles of compensation strategy senior managers need to understand. benefits and pay for corporate performance all have changed dramatically. For example. Studies of Fortune 1000 firms (Lawler. and a 100 percent increase in firms using flexible benefit systems. new organizational forms.
However. in determining the level of employee motivation. A more recent view is expressed by Alfie Kohn. they just re-circulate. whereas intrinsic rewards such as work design are available to employees without continuous management action. a polemicist whose highly biased and incomplete review of the reward literature might have remained obscure had it not been excerpted in the Harvard Business Review. while Hertzberg is remembered for his emphasis on the importance of intrinsic not motivate. it’s only a hygiene factor Bad ideas about compensation never die. He claimed that intrinsic sources of motivation rising from the design of work are much more important than the extrinsic sources. He argues that extrinsic rewards such as pay need not be provided continually to be effective. Myths about rewards that never die #1: Money doesn’t motivate.use compensation as an important tool for managing the business. In Hertzberg’s view extrinsic sources are “hygiene” factors that can have a negative effect but not a positive effect on motivation. Kohn argues that extrinsic rewards cannot work for several reasons. However. It received its most famous formulation in the work of Fredrick Herzburg. The idea that money doesn’t motivate employees has been around since decades. while intrinsic sources are true motivators. such as pay. we are unimpressed with the discovery that you can’t pay employee for performance just once—you have to keep motivation. contemporary motivation in scholars almost universally reject his claim that extrinsic rewards do 25 .
if we just make employees happier (or more modestly. hundreds of studies have examined the relationship between employee attitudes such as job satisfaction and productivity. arguing that any improvement in pay or working conditions will reward management with higher productivity.paying them. complicated pay systems if a friendly management style or an employee-centered culture. the popular belief that happiness leads to productivity is not supported by the evidence. ultimately making the added rewards “free”. This is like asking Santa Claus for presents.” That is. if we just increase job satisfaction). (Of course. This myth dates back to at least to the dawn of the industrial revolution. It has great appeal for a number of reasons. It lets managers ignore pay system issues altogether. Seemingly no one has to pay for them. management may hope that employees will work for less money if they are happier (while being more productive). Literally. Employees also adopt this myth and use it to turn the tables on management. satisfaction is 26 . Myths about rewards that never die #2: A happy worker is a productive worker One of the most enduring myths about rewards systems is “a happy worker is a productive worker. Unfortunately. or generous benefits can make workers both happier and more productive? In fact. productivity will follow as day follows night. Why bother with costly. Kohn rehashes Hertzberg’s discredited arguments about motivators and hygiene factors.
Making people happier makes them stay in the organization longer—that is. and this happiness may be the indirect result rather than the cause of productivity. but too small to be of practical significance. Well the relationship exists. it reduces turnover—but it does not necessarily make them more productive. Research methodology:Title of Study “Study of Rewards and Recognition of Asia Motors Works Ltd. it may well be because more productive people tend to be rewarded for their higher performance. but the two obviously are closely related). In every decade since the 1950s a major review of this evergrowing literature has reached the same conclusion: that is. the relationship between satisfaction and productivity is detectable. 27 .not the same thing as happiness.” Study of 51 employees of assistant managers and above level of Asia Motors Works Ltd.
and help to achieve sustainable. process. flexibility and team working. competitive advantage. Achieve Integration: Be an integrated part of the management process of the organization. strategies. 4. People mostly leave job because of compensation factor. Supportive Managers: Support individual managers in the achievement of their goals. 1. Improve Organizational Effectiveness: Support the attainment of the organization's mission. 2. 3. developed and maintained on the basis of reward strategies and policies which will be created within the context of the organizations between strategies.Need and significant of study. quality. In today’s business scenario Rewards and Recognition is most effective tool of motivating employees. 28 This involves playing a key role in a mutually reinforcing and coherent range of personal policies and . Support and change culture: Under pin and as necessary help to change the 'organizational culture' as expressed through its values for performance innovation. culture and environment: they will be expected to fulfill the following broad aims. risks taking. Why reward system is required? These components will be designed.
General: .To understand employees’ view and perception on their Reward and Recognition. Recommendation and Suggestion. Objective of study. • • • Criteria for rewards and recognition. Research Design:29 . Motivate Employees: Motivate employees to achieve high levels of quality performance.5. Frequency Benefits derived by Rewards and Recognition. Compete in the Labour market: Attract and retain high quality people. • • • Specific: . Impact of Rewards and Recognition on behavior of employees.To study various factors relating Rewards and Recognition like. Eligibility. 6.
paint shop. finance and accounting. Sample and sampling procedure:- Sample taken from the study consist of employees of Asia Motor Works. fabrication. Samples were selected from various departments like production. research and development. apart from personal inventory. marketing. training. vendor development. quality control. purchase. information and technology. Universe:Universe is employees of Asia Motors Works Ltd. human recourse. cab weld. 30 . chemical. impact on behaviors of employees. and procurement. auto component. Research period:Study is conducted in June – July 2009. Tools of data collection:An interview schedule was used for data collection. maintenance. benefits derived and recommendation and suggestions. press shop. frequency for rewarding. tool room.This is descriptive study including various factors of Rewards and Recognition like criteria for rewards and recognition. eligibility.
31 . Scheme of chapterisation:The first chapter is of introduction which introduces the topic of study along with objectives. conclusions and suggestions. research methodology etc. No generalization: the study is restricted to an organization under study.Limitations of study:Sample size: the present study is carried out for academic purpose. so sample size is restricted. The second chapter is of review of literature. The third chapter analysis and interprets the data while the fourth chapter presents the findings. so it can not be generalized for all employees in other organization. 1. Rewards and Recognition are complex problem and researcher has attempted to study most appropriate factors but chances can not be ruled out that some areas may have been untouched or not adequately touched. 2.
in his study found "pay and allowances as the most important factor causing satisfaction or dissatisfaction to workers" Singh ET.REVIEW OF LITERATURE “…The pay package is one of the most obvious and visible expressions of employment relationship. it is main issue in exchange between employees and employer expressing connection between individual work and performance employing organization itself” Hege Wisch and Ganguli O. N. "inequality occurs when an individual perceives that the ratio of his outcomes to input and the ratio of relevant others outcome to input are unequal" Rowlinson (1988) one of the American vice presidents whose company observed and concluded that recognition speaks to the employee receiving it and awards and only one aspect of it. (1977) in a study of organizational culture and its impact on managerial remuneration concluded that the demands for money was significantly influenced by the quality of organizational culture and that it can substantially be reduced by improving the quality of organizational culture. Findings such as those suggest that satisfaction. al. The 32 . (1967). task involvement. According to Fred Luthans (1981). demand for money and commitment are largely determined by organizational culture.
meaning and intrinsic value attached to the reward are equally important. watch all engraved tinkered in recognition of long service is probably most prominent form of recognition award in U. 33 . Although the gold plated carriage clock.K.symbolism.
34 . Pay and allowances as the most important factor causing satisfaction or dissatisfaction to workers. the "up-front" variable (technology. Simon (1992) after thorough study suggested that employees should be given cash bonuses and prizes for meeting sales targets. For special yearly competition when only few people gain prizes should be precious and can range from holiday voucher. Steve Williams and Fred Luthans (1992) stated that. Redmon. a set of 2 tickets for an all expense paid trip to Hollywood. (1992). but unless the people are rewarded for their performance-related behaviours. indicates that the organization may have the latest technology. Agnew and William K.Judy L. well -thought out strategic plans. detailed job descriptions and comprehensive training programmes. plans and so on) or the rules that govern their behaviour have little impact". customer services and cleanest store. "the choice of reward interacting with feed back had a positive impact on task performance".
progressive and fun law firm.One example is Vodafone Australia. insurance. That rate has reduced to just 18 per cent (Human Resources 2005) predominantly due to the company focusing on its culture and its people. The National Australia Bank approached liveyourlife to customize a team based experiential reward program for a project that involved employees in every branch of the Bank across Australia. the dynamic Managing Partner encouraged Gardens to be known as an innovative. so please contact liveyourlife if you would like further details. including remote regional areas. Liveyourlife customized a specific team based reward program including the development of specific team experiences for branches in regional areas. professional services. By offering experiential benefits as part of their remuneration structure. FMCG and manufacturing. The customized liveyourlife team based reward program was delivered with great success. When Vodafone introduced the liveyourlife reward and recognition program they had turnover rates around 30 per cent per year. 35 . telecommunications. The liveyourlife incentive program is a major part of the people retention initiative. Other liveyourlife clients who have successfully used the liveyourlife program in unique and innovative ways include leading organizations across a range of industry fields including the finance. Our liveyourlife clients are happy to talk about their experiences.
The STAR system was the brainchild of Martyris (senior vice president human resources. TPP considered every aspect employees’ organizational career planning. In 2000 to show its commitment to and belief in employees the Taj Group developed the “Taj people philosophy” (TPP). This programme also acknowledged and rewarded hard working employees who had done excellent job. Indian Hotels). TPP offered many benefits to the Taj Group. STARS operative throughout the year (from April to March). right from their induction into the company till their superannuation. It helped the company boost the morale of it employees and improve service standards which in turn resulted in repeat customers for many hotel in group. In March 2001 the Taj Group launched employee’s loyalty programme called “Special Thanks and Recognition System” that is (STARS). The STAR system also led to global recognition of Taj Group of hotels in 2002 when the group begged the “Hermes Award” for “Best innovation in Human Resources” in global hospitality industry.STAR SYSTEM (Special Thanks and Recognition System) The employee at Taj is viewed as an asset and real profit centre. which covered all the people practices of group. The system was developed accordance with Taj’s core philosophy that “happy employees lead to happy customer”. STARS was an initiative aimed at motivating employees to transcend their usual duties and responsibilities and have fun during work. is open to all employees across the organization at all 36 . The Taj group had always believed that their employees were their greatest assets and very reason for survival of their business.
A STAR was actively promoted across the groups. & HR Manager. How programme works? Points are earned by Guest Compliments Compliment a colleague forms Making suggestions – – – STARS have 5 different levels. It aimed to identify. Though employees did not receive any cash awards. recognize and reward those employees who excelled in their work. HOD Training Manager. • For the people • Of the people • By the people Who is eligible for STARS? Any permanent or FTC employee who has completed 6 months in the organization except the GM. out of which 15000 were from India.hierarchical levels. It is recognition…. they gained recognition by the levels they attained 37 . 62 chains of hotels and among 18000 employees globally.
A.D’s Club (1000 points and above in the same financial year) C. Suggestion Merit = 20 points-For a valid suggestion as accepted by the S.S Review Committee.T. 250 points above the Platinum level) Platinum Level (250 points within 6 months of reaching the Gold Level) Gold Level (130 points within 3 months of reaching the Silver Level ) Silver Level 38 . LEVELS • • • • • • • • • M.’s Club (750-1000 Points. Bonus Suggestion Merit =20 points.O. Wow Merit = 20 points.O.R.Awarded if there is no revertal within 48 hours on a suggestion made. Scale Merits are awarded as follows: Primary Merit = 10 points-An act of excellence in service that delights a customer / employee.An exceptional act of excellence in service that dazzles a customer / employee.through the points they accumulated for their acts of kindness and hospitality.
Such suggestions in each hotel of Taj Group were examined by General Manager. cooperation. teamwork. Employees could also earn points through appreciation by customers. courage and conviction among others. It enhanced their motivation levels and led to increase customer satisfaction. one of the American guest of Taj Residency. trustworthiness. honesty. Health club attendant saw this bracelet and returned it to guest. Hence. Employees cold also get ‘default point’ if the review committee did not give feedback to employee within two days of his/her suggestion for the betterment of organization. environmental awareness. The suggestions could also be posted on web.• ( 120 points within a single quarter) Points were granted to employees on basis of parameters like integrity. which were constantly monitored. coordination. BENEFITS OF STAR SYSTEM STARS helps employees work together as a team and appreciate fellow employees for their acts of kindness and excellence. excellence in work. new initiative. HR manager and Training manager of the hotel. the system compelled judges of review committee to give feedback to employees as early as possible. Vadodara forget his lucky gold bracelet in the fitness center of hotel. kindness. For example. in an indirect manner. Suggestions by employees that benefited the organization fetched them significance points. respect to customers. Guest 39 . ‘compliment-a-colleague’ forums and various suggestion schemes.
88%.88 05.76% have of recommended respondents monetary believes rewards.76% of respondents has recommended for team or group reward while 5.66 11. 17.69 05.76 The above table shows that 21.57% i.88 100 Frequency 09 06 Percentage 17.was so happy and surprised and write note of appreciation for the health club attendant which added to his existing point. non-monetary recognition/appreciation type of reward scheme also 11.5.88% of respondents have recommended 40 .88%. What are the various rewards and recognition you recommend in AMW ? Particulars Monetary rewards Non monetary recognition/ appreciation reward Best suggestion/ best kaizen reward Team/ Group reward Employee of the month/year reward Departmental reward Cost reduction reward Recreational reward Attendence reward Total 11 06 08 03 03 02 03 51 21.76 15. ANALYSIS AND INTERPRETATION OF DATA 1.e majority of respondents have recommended best suggestion or best kaizen reward.57 11.92% and 5.69% of respondents have suggested for employee of the month/year reward.66% of respondents 11.88 03.3. in 15.92 05.
65%.65 25. recreational reward.for departmentalreward.37 13. and attendance reward type of schemes respectively.76% of respondents are of the view that employees should be rewarded on monthly. cost reduction reward. 2.46 .76 31.37 % majority of respondents feels that employees should be rewarded on yearly basis while 25. How often do you think should be rewarded ? Particulars Monthly Quarterly Half Yearly Yearly Occasionally based on extra ordinary accomplishments Total 51 100 Frequency 09 13 06 16 07 Percentage 17.49 11. occasionally based on extra ordinary accomplishments and half yearly basis respectively. while 17. 13. dedication Frequency 14 41 Percentage 27.73% and 11. What are the behaviors that you are trying to encourage in employees through the award scheme you recommend? Particulars Motivation.73 The above table shows that 31. 3.49% of respondents think that employees should be rewarded on quarterly basis.
9. Are the entire employee should be eligible for Reward and Recognition? Particulars Yes Frequency 44 42 Percentage 86. innovative ideas and problem solving techniques and optimum utilization of individuals ability and capacity.92 % respondents think that it can lead to competition among the employees on the other hand 17.and sincerity Hard working Self discipline/ punctuality Team building and group cohesiveness Sense of belongingness.88 03. while 11. 27. behaviors that could be encouraged in employees through the reward and recognition schemes.65 100 The above table shows that.76 09.27 . 4.65% of other respondents are of the opinion as follows such as improvement in thinking process. loyalty and honesty can be encouraged where as 5.76% of respondents are of the view that self-discipline and punctuality could be encouraged. achievements of targets.73% of respondents believes that hard working could be encouraged.e.80% thinks that sense of belongingness.46% thinks that motivation.80 03 02 09 51 05. loyalty and honesty Morale boosting Competition Others Total 07 06 05 05 13.80 09. dedication and sincerity could be encouraged where as 13.73 11.92 17. in which majority of respondents i.88% of respondents feels that it encourages morale boosting while only 03.
94 19.73% of respondents do not agree to the statement “Are all the employees should be eligible for rewards and recognition” they are of the view that employees below MMC level should only be eligible for rewards and recognition schemes. 5.73 100 The above table shows that 86.76 100 43 . If No. 6.69 11.No Total 07 51 13.61 15. What should be the criteria for rewards and recognition? Particulars Performance and output Cost saving Quality improvement Achievements of targets Total Frequency 27 10 08 06 51 Percentage 52. which level of employees should be eligible? In the above table 13.27 of respondents feel that all employees should be eligible for reward and recognition while on the other hand 13.73% of respondents do not feels the same.
The above table shows that majority of respondents i.67 07.49 100 .76% of respondents thinks that achievements of targets should be the criteria for rewards and recognition.33 45. 8.e. How is the company benefited from rewards and recognition? Particulars Improved performance Reduced absenteeism Others Total Frequency 34 04 13 51 44 Percentage 66.57% of respondents are of the view that employees should be selected for reward through decision from top officials and group vote respectively.10 00. 7.84 25.61% of respondents feels that cost saving should be the criteria. majority of respondents thinks that an employee should be selected for a reward is through the decision from a single manager or in other words from the immediate supervisor. while 1569% of respondents believes that quality improvement should be the criteria and 11.57 33.e. where as 19.33% and 21.10% i. 52.00 100 top officials Decision from a single manager None of above Total The above table shows that 45.94% of respondents thinks that performance and output should be the criteria for rewards and recognition. How is an employee should be selected for a reward? Is it through? Particulars Group Vote Decision from Frequency 11 17 23 00 51 Percentage 21. while 33.
84% of respondents feels that it can reduce absenteeism while 25. while 07. optimum utilization of human resources.22 Particulars Yes . 10.67% of respondents believes that improved performance is the benefit that company derives from rewards and recognition.14% of respondents do not feels the same. improved thinking process. Do you think the Reward and Recognition scheme should be restricted to MMC level? Frequency 20 45 Percentage 39. sincerity etc… 9. Are the Employees suggestion should be considered while reviewing the reward programme? Particulars Yes No Total The above table Frequency 22 29 51 shows that a majority Percentage 43. improvement in work culture.The above table shows that 66.86 100 i.49% of respondents have came up with several other ideas which includes cost reduction. punctuality. loyalty. 58. sense of belongingness. profitability. selfmotivation and self discipline. internal competition.14 56.e. boosting morale of the employees.86% of respondents feels that employee’s suggestion should not be considered while reviewing the reward programme while 43.
67% of respondents thinks that reward and recognition scheme like employee of the month should not be chosen by voting from the department.78% of respondent believes that reward and recognition scheme should not be restricted to MMC level only while 39. Do you feel the Reward and Recognition scheme like Employee of the Month be chosen by voting from the Department? Particulars Yes No Total Frequency 17 34 51 Percentage 33. 12.33 66.78 100 The above table shows that 60.22% of respondents do not feels the same.57 .No Total 31 51 60. while 33.37 immediately provided equally 11 46 21. 11.33% of respondents does not feel the same. If you have any other suggestion? Particulars Should [ Tatkaal ] Should be Frequency be 16 Percentage 31.67 100 The above table shows that 66.
69 13. appreciation and recognition. authority. • Effective implementation of whatever and continuous is feedback by and the assessment management.applicable to all Should be tangible and transparent Should be properly communicated Others Total 08 07 09 51 15.57% of respondent have suggested that it should be equally applicable to all the employees.65% of other respondents has have various suggestion which are as under. • • Reward and recognition schemes should be used as effective tool for retention of key employees.27% have suggested immediate reward on the spot basis and sum schemes like tatkal while 21. where as 15. Basic facilities should be improved as a part of reward system. schemes approved 47 . self esteem.69 % of respondents think that reward and recognition schemes should be tangible and transparent enough.e. • Cash rewards should be provided to the employees below MMC level and above the level employees should be provided with status.73 17.73% of respondents thinks that the schemes should be properly communicated to all the level vertically and horizontally along with their feedback. 31. 17. and 13.65 100 The above table shows employees suggestion of employees regarding rewards and recognition programme where majority of respondents i.
• Reward and recognition schemes should be implemented in such a way that a sense of job security is inculcated among the employees.06 23.53 100 Diploma Holders Graduates Post Graduates 48 . TABLE SHOWING DISRTIBUTION OF RESPONDENTS WITH EDUCATIONAL QUALIFICATION QUALIFICATION Diploma holders Graduate’s Post Graduate’s TOTAL FREQUENCY 15 24 12 51 PERCENTAGE 29.41 47.
53% of respondents are post –graduates.06% of of educational are qualification of respondents.37 05.92 01.96 100 Assistant Manager Deputy Manager Manager Deputy General Manager General Managers Chief Operating Officer 49 . TABLE SHOWING DISRTIBUTION OF RESPONDENTS WITH DESIGNATION DESIGNATION FREQUENCY Assistant Manager 19 Deputy Manager 10 Manager 16 Deputy General 03 Managers General Managers Chief Operating Officer TOTAL 02 01 51 PERCENTAGE 37.88 03.The above are table diploma deals with distribution 47.41% of respondents holders. Out of total respondents 29. respondents graduates and 23.62 31.25 19.
35.29% respondents 50 . TABLE SHOWING RESPONDENT WITH THEIR TOTAL WORK EXPERIENCE WITH ASIA MOTORS WORKS WORK EXPERIENCE BELOW 1 YEAR 1-2 YEARS 2-3 YEARS 3-4 YEARS 4 YEARS AND ABOVE TOTAL FREQUENCY 03 22 18 06 02 51 PERCENTAGE 05.25% are assistant mangers.The above table deals with distribution of respondents as per their designation.37% of respondents are managers. 43.92 100 Below 1 Years 1-2 Years 2-3 Years 3-4 Years 4 Years and above The above table deals with distribution of respondents with their total work experience with Asia Motors works.92% of respondents are general managers and 1. 31. 5.88% of respondents have below 1 year of experience. Out of the total respondents 5. 19.62% of respondents are deputy managers.96% of respondent is chief operating officer [COO]. Out of total respondents 37.77 03.29 11. while majority of respondent’s i.14 35. 3.88 43.88% of respondents are deputy general managers.e.14% have experience more 1 year but less than 2 year.
while 11. Cost saving 3. FINDINGS. some of the major causes of concern for the employees are job security. AND CONCLUSIONS FINDINGS Whenever a company is involved in a implementing any policy. apart form the financial and organizational policy changes. compensation. Quality improvement and achievements of targets 51 .92% of respondents above 4 years of their total experience with AMW. SUGGETIONS.77% of respondents have between 3-4 years of experience and only 3. Findings regarding criteria for Rewards and Recognition Opinion regarding the criteria for rewards and recognition that employees recommended while performing their jobs were quite content with their lives and jobs. it results in lot of misunderstandings and cause of major worry amongst the employees. Performance and out-put 2.have more than 2 year of experience but less 3 years. opportunities for career growth. Rewards and Recognition can prove to be an important measure for betterment and upliftment of any organization. the human resources of the organization are also deeply affected. If there is no clarity of communication between the top management and the employees down the hierarchy. In such a changing scenario. adaptability to the changed organizational strategies and policies etc. While there are many positive ideas came up to their organizational culture the main ideas as a part of findings regarding appropriate criteria for rewards and recognition are:1.
52 . • Reward and Recognition schemes like employee of the month or any other scheme should avoid the criteria of been chosen from the department. • The best alternative for selection of an employee for a reward is to form a reward and recognition committee consisting of top officials as the members of the committee. It should be based on tangible and transparent criteria and should be properly communicated vertically and horizontally through the organization. Rewards and Recognition schemes should not be equally applicable to all. • • Suggestion from each and every employee should not be entertained or considered while reviewing reward programme. Findings regarding Eligibility for Rewards and Recognition A very straight forward response is received regarding the eligibility of employees for rewards and recognition are as under.• The most appropriate way to select an employee for a reward is through decision from the immediate supervisor or from a single manager. designation and cadre and nature of the job. • • All the employees should be eligible for any reward and recognition scheme comes into implementation. as it should have different criteria’s as per department.
65% which together sums up to 43. In response to rewarding as 31.04% shared one thing in common and that was rewarding employees those who are working on contract basis as they only work for 3 months in the organization. that’s why monthly or quarterly would be the suitable time gap to reward those employees. • Employees above MMC level should provided with non-monetary recognition at large departmental gatherings or annual day functions.• Employees below the MMC level should be given the priority for rewards and recognition and should be largely awarded through monetary benefits or cash incentives.65% of respondents have suggested rewards on monthly basis. while on the other hand majority of respondents are of the view that employees should be rewarded on yearly basis to those employees working on permanent basis with organization. Findings regarding Frequency for Rewarding • On the frequency for rewarding front the employees had contradictory views. While 25. The above mentioned category of 25.49% of respondents have suggested for quarterly basis along with 17. Findings regarding Benefits derived from Rewards and Recognition 53 .49% and 17.37% of respondents think that employees should be rewarded on yearly basis.
It can be used as an effective tool to avoid absenteeism. punctuality. It leads to improvement in thinking process of employees and generation of new innovative and dynamic ideas hence can lead to cost reduction and consequently increase in profitability. some of them are as under • The first and foremost benefit of Reward and Recognition scheme is that it can lead to improvement in performance of employees • • • as believed by 66. It encourages self discipline. cadre and nature of the job some of them are as under. It can improve work culture of the organization as it boosts up morale of the employees.67 % that is majority of respondents. department. Individual tends to stretch himself to the optimum utilization of his own ability and capacity. loyalty and honesty in the employees. hence achievement of individuals and group targets can be achieved at ease. and self motivation to work harder with self initiative ness and extra efforts. • • It inculcates a sense of belongingness.There are several benefits company can derive through Reward and Recognition Schemes. 54 . Findings regarding Recommendation and Suggestions for Rewards and Recognition Various schemes have been suggested and recommended by employees depending upon their designation department.
• • • schemes approved Reward and recognition schemes should be used as effective tool for retention of key employees. • Employees should be immediately rewarded by the immediate supervisor or scheme like TATKAAL should be implemented. self esteem. • Cash rewards should be provided to the employees below MMC level and above the level employees should be provided with status. tangible and transparent enough and properly communicated to all.• Best kaizen or best suggestion should be rewarded which can simplify complexities of job or could help in cost reduction and such reward should be monetary in nature. appreciation and recognition. • There should be a common programme along with separate schemes each department wise. which should be equally applicable. Basic facilities should be improved as a part of reward system. Attendance and Recreational rewards schemes should be implemented to increase coverage and effectiveness of reward and recognition programme. Reward and recognition schemes should be implemented in such a way that a sense of job security is inculcated among the employees. • Effective implementation of whatever and continuous is feedback by and the assessment management. 55 . authority. • • Not only individuals but teams and groups should also be rewarded for any extra ordinary accomplishments.
Effective treatment of post the scheme is implemented and integration process cannot be advanced without sound theoretical understanding of the employees’ psychological and behavioral responses to the essential properties and processes inherent in reward and recognition-driven organizational change. the researcher has presented few suggestions which are based on the conclusions reached. but also must have the right culture in place that accepts the programme as quickly as possible. Rewards and recognition have a great impact on the individuals or groups working in an organization and on the working conditions. extended benefits. Organizations must effectively develop and implement assistance programmes for displaced employees. If acted upon. these suggestions may prove fruitful in improving reward system in organization which further leads to employees’ motivation and job satisfaction.SUGGESTIONS Under this sub title. and outplacement activities. Such programmes should include advance notification. 56 . A company not only needs to select a right target.
clear and direct communications strategy. development needs and career paths in the organization.In this context the role played by effective communication becomes very important. one that regularly acknowledges the significant role employees have played in the business and explains their important. 6) Money is the biggest motivator so increments in salaries can help to improve motivation level among employees. Career counseling can be providing to help employees define their personal goals. 3) Rewards and recognition could prove to be an efficient and effective HR sub system if implied with as larger coverage as possible 4) Non-monetary rewards and extra benefits are to be given to employees so that play very important role in motivation of employees. 5) All supervisors and mangers must need to appraise their subordinate when they do good job which increase motivation of employees. 1) Management must need to redesign promotion policy because employees are not satisfied with it. 57 . ongoing role in the future counseling interventions can address issues pertaining to job insecurity on a number of systematic levels. This entails devising a comprehensive communication strategy and implementing it with care and diligence by a pro-active. 2) Transparency in rewards system or promotion policy is very much needed.
7) Reward and Recognition must be reaching in all departments so that employees can be part of it and feel important part of organization.
CONCLUSION Prioritize employee recognition to ensure a positive, productive, organizational climate. Provide employee recognition to say “thank you” and to encourage more of the actions and thinking you believe will make the organization successful. People who feel appreciated are more positive about themselves and their ability to contribute. These beliefs about employee recognition are common among employers - if not commonly carried out. Why then is employee recognition so closely guarded at work? Employee recognition is limited in most organizations. Employees complain about the lack of recognition regularly. Managers ask, “Why should I recognize or thank him? He’s just doing his job.” And, life at work is busy, busy, and busy. These factors combine to create work places that fail to provide recognition for employees. Managers who prioritize employee recognition understand the power of recognition. Every person has different reasons for working. The reasons for working are as individual as the person. But, we all work because we 58
obtain something that we need from work. The something obtained from work impacts morale, employee motivation, and the quality of life. To create positive employee motivation, treat employees as if they matter - because employees matter. These ideas will help you fulfill what people want from work and create employee motivation. Today’s corporate leaders realize non financial recognition is not a perk but a strategic necessity, says RPI executive director Christi Gibson. "They find it decreases turnover, it does increase profitability, it creates a positive work environment and it elevates customer
service," she says. "It also attracts a better recruiting pool and improves retention of the top performers." Daily means of providing recognition: • • • • • • • • • • • Saying "Thank you Telling them they did a good job. Suggesting they join you for coffee. Asking for their opinions. Greeting them when they come in the morning. Showing interest in their personal interests. Smiling when you see them. Bragging about them to your boss (in their presence). Jotting small thank you notes to them. Having refreshment with them after work. Saying something positive about their personal qualities.
Intermediate means of providing recognition:
• • • • • • • • • • • • • • • • • • • • •
Taking them to lunch. Providing food at volunteer meetings. Letting them put their names on the products they produce. Buying the first round of beer for "the best crew of the month." Writing them a letter of commendation (with copies to personnel file and other appropriate people.) Getting a local radio station to mention them. Putting them on important task forces or committees. Giving the best parking space to the "employee of the month." Posting graphic displays, showing progress toward targets. Mentioning major contributors by name in your status reports to upper management. Having them present their results to higher-ups. Giving permission to go to a seminar, convention, or professional meeting, if possible at the organization’s expense. Writing articles about their performance for newsletters or newspapers. Having them present a training session to co-workers. Decorating their work area on their birthday. Having your boss write them a letter of thanks. Celebrating major accomplishments. Having them represent you at important meetings. Putting their picture on the bulletin board with news of their accomplishments. Cutting out articles and cartoons they might be interested in. Organizing informal chats with organization leadership.
Major means of providing recognition: • Making special caps, shirts, belt buckles or lapel badges
honoring the group. 60
best crew. value added and critical performance incidents within or beyond expected & predefined performance objectives To align employee performance and achievements in line with Company’s Value Charters & Mission Objectives 61 . accomplishment. or trophy for being best Getting their picture in the paper for outstanding Giving additional responsibilities and a new title. most improved results. Objectives: To provide guidelines to recognize specific. Enlisting them in training staff and other volunteers. Putting up a banner celebrating a major accomplishment. Renting newspaper space to thank them. Involving them in the annual planning process.• • • • • • • • • Encouraging them to write an article about some Giving a plaque. REWARDS & RECOGNITION Purpose: To reduce Attrition Rate and improve Employee Loyalty & Motivation and positive behavior. unique. etc. employee. Looking at the responses obtained by the respondents following reward and recognition policy can prove to be an effective one. certificate. Honoring them for years of service to the organization. accomplishment at work.
skills or competence.To reward these performance incidents in monetary or non-monetary terms indicating organizational recognition and appreciation towards the employees Scope Applicability: All employees General Rules: Nomination: (Individuals / Teams / Groups): All Managers / Department Heads (along with inputs from Immediate Superiors / Reporting Authorities wherever applicable) can nominate employees/teams who have shown reward-worthy performance. Further spot achievement awards can be recommended during shorter terms of quarterly for associates. who work on contract basis. This can be an additional 5% to 10% Incentives increase over and above the recommended PLI by Appraisers during yearly Appraisal process. For ongoing performance achievements these awards can be assessed either half yearly or yearly basis. 62 . behavior. Performance Management Link: A special consideration and weightage can be given in PLI (Incentives/Bonus) for employee’s winning Rewards & Awards in Appraisal year. Periodicity: Assessments and recommendations can be done on Quarterly / Half yearly / Yearly basis and one employee can be nominated multiple times in different quarters.
Assessment Parameters Some of the parameters can be listed as under.Benchmarking Reward-worthy Performance/Behavior/Competence In order to align employee performance to Company’s Values & Mission Objectives. 63 . have specific or sustained accomplishments that exceed normal expectations. the standards can be set against the 4 value & mission objectives.Employee of Quarter The Employee of the quarter Award publicly recognizes a staff employee for superior performance have an exceed rating or better on performance evaluation at the time of nomination. EOQ. Reward & Award: Cash Reward Certificate of Appreciation (by COO/ Head HR) EOY. Employee showcasing exceptional examples of following up these values can be considered for Rewards & Recognition Program.Employee of year Should have been nominated as EOQ at least twice during the assessment year and should have been selected at least once during the assessment year.
Reward & Award: Sponsorship for Pleasure Trip. Spot Excellence Award Contribution beyond expected deliverables / Key Responsibility Areas which benefits the organization. Reward & Award: Team Trophy (for individual members as well as whole team with each team member’s name embossed on the trophy) Team Lunch / Dinner with HOD or COO 64 . comfort level with customer. Reward & Award: Gift Vouchers Certificate of Appreciation (by COO/ Head HR) OI – Outstanding Innovation Finding out a creative and innovative ways to improve the performance. Certificate of Appreciation (by COO/ Head HR) TOY-Team of Year Based on customer feedback on issues resolved. Reward & Award: Cash Rewards Certificate for Appreciation (by COO/ Head HR) Lunch / Dinner with President Print on the business card for one year as “EOY”. Support provided or any such incidents / behaviors bringing in significant impact on Customer’s perception and Company’s image building etc.
Behind the Scene Award of Year Based on the Extra-Ordinary Performance of functional support employees (HR. Ahmedabad. RESEARCH TOOL NOTE : Dear sir/madam. Finance. IMG and Administration functions) Reward & Award: Gift Vouchers Certificate for Appreciation (by COO/ Head HR) Sponsorships for specific seminars / Trainings. This is a purely an academic research with the organization and the findings won’t be put to any commercial use.BAY. Your co -operation and feed back would help me decipher some valid findings for modern corporate PERSONAL INVENTORY Name:Department:Educational qualification:Designation:65 . I assure you that I would ensure full confidentiality of the data provided by you. I am a student of 1st year MBA (Masters of Business Administration) of AES Post Graduate Institute of Business Management (AESPGIBM) Gujarat University.
Department:Number of years with AMW:- 1. What are the behaviors that you are trying to encourage in employees through the award scheme you recommend? 66 . 3. How often do u think should be rewarded? a) Monthly b) Quarterly c) Half yearly d) Yearly e) Occasionally based on extra ordinary accomplishments. What are the various rewards and recognition you recommend in AMW? 2.
Are all the employees should be eligible for the Reward and Recognition? Yes No 5. How an employee should be selected for a reward? Is it through a) Group vote b) Decision from top officials c) Decision from a single manager d) None of the Above 8. How is the company benefited from the rewards and recognition? a) Improved performance 67 .4. What should be the criteria for rewards and recognition: 7. If No. which level of employees should be eligible? 6.
No If you have any other suggestion? 68 . Should the employee suggestions be considered while reviewing the Reward program? Yes No 10.b) Reduced absenteeism c) Others 9. Do you think the Reward and Recognition scheme should be restricted to MMC level? Yes No 11. Do you feel the R&R scheme like Employee of the Month be chosen by voting from the department? Yes 12.
THANK YOU 69 .
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