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HRM MBA 2nd Semester Presentation Amity University Noida Uttar Pradesh
HRM MBA 2nd Semester Presentation Amity University Noida Uttar Pradesh
An average level of productivity jumped from 86.4 percent to 123.5 percent; that
is, an increase of 42.9 percent. This indicates that although incentive schemes
are not the only means of improving performance, they obviously can have a
significant impact.
This criteria was based on relative importance and the potential impact that they
may have on the success of performing the job under evaluation.
Each criterion consists of 4 subcriteria . A 7-point scale for each sub-criterion is
used for evaluation, where 4 is the lowest grade and 10 is the highest.
Here we obtain a maximum grade of 40 points (4 subcriteria with a maximum of
10 points each), the value of the denominator is 40. Thus, GlEFF(k) will be
within the range
Group 1 of Performance Criteria of employess
(Note that the values circled represent the performance of a specific employee.)
Grade scale
Excellent 10
Very good 9
Good 8
Above averge 7
Average 6
Below average 5
bad 4
Not relevant 3
In order to find the employee's bonus, the EFF(i) for all the employees in that
department has to be calculated For example, if amt of money assigned for
bonus = $15,000 and there are 6 employees in the department with EFF(i) as
follows,
EFF(1) 115
EFF(2) 120
EFF(3) 80
EFF(4) 60
EFF(5) 95
EFF(6) 110
CONCLUSION
It is obvious that such a scheme increases the motivation of the employee to
use a greater part of his potential for the company's needs. Consequently, a
company may find that the benefits reaped by introducing a wage incentive
scheme far outweigh any increases incurred in salary costs.