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Rewards and Employee Production in Relevance To Performance Management

This document discusses total rewards and performance management in relation to employee production. It defines total rewards as all tools available to attract, motivate, and retain employees, including compensation, benefits, work-life balance, recognition, development, and career opportunities. It elaborates on the elements of total rewards and provides examples from companies like Larson and Turbo, Reliance, and Maruti Udyog of their appraisal and rewards systems focused on performance, incentives, promotions, and training.

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Natasha Singh
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451 views

Rewards and Employee Production in Relevance To Performance Management

This document discusses total rewards and performance management in relation to employee production. It defines total rewards as all tools available to attract, motivate, and retain employees, including compensation, benefits, work-life balance, recognition, development, and career opportunities. It elaborates on the elements of total rewards and provides examples from companies like Larson and Turbo, Reliance, and Maruti Udyog of their appraisal and rewards systems focused on performance, incentives, promotions, and training.

Uploaded by

Natasha Singh
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Rewards and Employee

Production in Relevance to
Performance Management

Presented to: Presented by:


Prof. Uma Bal Kumar Pradeep Tokas
Sanjay Rauth
Saif Siddique
Natasaha Singh
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 employee
goes 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:
1 2 3 4 5
Work life Recognition and Career
Compensation Benefits
performance development Opportunity

Total Reward essentially


includes the above
mentioned aspects
Elements of Total Rewards Elaborated
Compensation :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
Elements of Total Rewards Elaborated
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
Development 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 The Employee


provides total The Exchange Relationship provides time,
rewards valued by talent, effort and
the employee result
Basic Categories of reward
No compensation award: Those beneficial factors related to the
work situation and well-being of each employee. Two Basic
Categories of Rewards

1
Compensation rewards: Those given in return for acceptable
performance or effort. They can include nonfinancial
compensation.
Basic Categories of reward
2 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.
Basic Categories of reward
3 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
Basic Categories of reward
4 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
Monetary/Non Monetary awards
Following are some of the monetary/non monetary awards

SMART-
Rewards

Meaningful
Timely

Reliable Achievable
Money is the best award
Money 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 have


performed 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.
Rewards and Recognition : Examples from the field

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

Career development facilities:


Employees who are willing to study further, Larson and Turbo is
providing monitory assistance to employees and they make bonds,
employees get salary during their education period. Some Employees
at executive level get education expense also.
Rewards and Recognition : Examples from the field

Some of the recognition categories are given to employees:


1. Thank you slips
2. Pat on back
3. Appreciation letters
4. Simply the Best - Team Award
5. Holiday Plan
Rewards and Recognition : Examples from the field

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, conceptual
and 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.
Rewards and Recognition : Examples from the field

Appraisal & reward in Maruti Udyog


Appraisal
· 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

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