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STUDENTS UNDERTAKING
I, PRERNA AHUJA, hereby declare that the project work entitled REWARDS & RECOGNITION POLICY OF NTPC is an authenticated work carried out by me at NTPC Under the guidance of Mrs. HARLEEN SACHDEVA for the partial fulfilment of the award of the degree of BACHELORS OF BUSINESS ADMINISTRATION and this work has not been submitted for similar purpose anywhere else except to JIMS KALKAJI, IP UNIVERSITY.
PRERNA AHUJA
INDEX
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1 2 4 4.1 4.2 4.3 4.4 4.5 4.6 5 7 10 11 12 13 Acknowledgement Executive Summary Literature Review Rewards Kinds of Rewards Levels of Rewards Employee Rewards & Recognition Program Motivation Rewards & Recognition In NTPC Company Profile Data analysis and interpretation Recommendations Conclusion References Appendix
Content
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4 5 6 10 13 19 25 28 32 41 54 62 64 66 68
ACKNOWLEDGEMENT
It is high privilege for me to express my deep sense of gratitude to all those faculty members who helped me in the completion of the project, especially my External guide Ms. Harleen, who was always there at hour of need. My special thanks to Ms. Niti Saxena for helping me in the completion of project work and its report submission.
PRERNA AHUJA
EXECUTIVE SUMMARY
As a part of my curriculum I had to do two months training in a well-reputed firm and for this I had selected NTPC, EOC and my topic was REWARDS & RECOGNITION POLICY OF NTPC. It was a unique opportunity to explore the realities of Indias leading power generation company as a researcher and gather knowledge from its vast repertoire of experience.
It was a great learning experience .The project not only helped me to enhance my practical knowledge on Rewards & Recognition as a motivating factor but also gave me an insight into the way work force is utilized here. I got to know the importance of communication and interpersonal skill in getting things done from others. In a nutshell, it was a very fulfilling and fruitful period of my life as a management student.
LITERATURE REVIEW
The term Non-Monetary Reward as a synonym to incentive and bonus. Oxford dictionary defines reward as: a thing given in recognition of service, effort, or achievement. Oxford dictionary also use the synonyms: recompense, prize, award, honor, decoration, bonus, premium, bounty, present, gift, payment; informal pay-off, perk; formal perquisite. Recognition and rewards play an important role in work unit and agency programs to attract and retain their employees. It is the day-to-day interactions that make employees feel that their contributions are appreciated and that they are recognized for their own unique qualities. This type of recognition may contribute to high morale in the work environment. So, its extremely important that managers, who communicate the agency goals to employees, are included in the development of recognition programs. Non-Monetary Rewards and Recognition is a means of providing immediate, non-cash rewards to employees for contributions to the Organization. Weve all heard the statistics on how staff members like to be recognized and rewarded for doing a good job. That a pat on the back or a thank you can mean more to a person than any amount of money. But actually putting a system into place can be easier said than done. Employee Reward covers how people are rewarded in accordance with their value to an organization. It is about both financial and non-financial rewards and embraces the strategies, policies, structures and processes used to develop and maintain reward systems. The ways in which people are valued can make a considerable impact on the effectiveness of the organization, and is at the heart of the employment relationship. The aim of employee reward policies and practices, if any the organization is to help attract, retain and motivate high-quality people. Getting it wrong can have a significant negative effect on the motivation, commitment and morale of employees. Recognition is the most cost-effective motivator there is. While the high cost of other rewards forces us to give them sparingly, recognition can be given any time, at very little cost. Recognition is a leadership tool that sends a message to employees about what is important to the leaders and the behaviors that are valued. Managers can use this tool to help employees understand how their jobs contribute to the agencys overall goals and how their performance affects the achievement of those goals. Often people have come to accept the notion that an employee is paid to do their job. So why should they be praised for doing what theyre paid to do? Praise of an employee reinforces, recognizes and motivates behaviors that you, as the manager, want to see. Non-Monetary Rewards and Recognition can be delivered in a number of ways. Think about just saying Thanks. What does praise cost? Praise is inexpensive. If it only takes a few minutes to reap days worth of increased productivity and morale, isnt it worth it? This doesnt mean that meaningless warm fuzzies are going to work,
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however. Use Jim Brintnalls description of What Makes a Good Reward? Jim says its got to be SMART!
Sincere: Above all else, a good reward should reflect a genuine expression of appreciation. Token acknowledgements leave something to be desired. Meaningful: To endure a motivating influence, rewards should be aligned with the values, goals, and priorities that matter the most. Adaptable: The diverse workplace demands alternatives. Consider creative options to keep your program fresh. No single reward format works for everyone all the time. [Recognition should be adapted and valuable to the receiver. Relevant: Some personal dimension is essential to a good reward. No matter how formal or informal, expensive or affordable, the relevance of any recognition will be improved with a personal touch - - its a little thing that makes a big difference. [Recognition should be provided by someone of significance to the receiver.] Timely: It is important that rewards respond to the behavior they are intending to reinforce. Dont let too much time pass or the reward may be devalued and credibility eroded. To ensure that employees tie recognition into the work unit or agencys strategic goals, be certain to tell employees what they did right and how it interacts with the goals. Include supervisors and employees in the development of your recognition program to represent the values and goals of a diverse cross-section of the work unit or agency. Provide the opportunity for recognition to come from a variety of sources. Peer-to-peer recognition usually is highly valued by employees. It can be used to develop a supportive work environment. For many employees, recognition received through the expression of genuine appreciation for the work they do is a reward. Being involved in a project or receiving special training may be anothers reward. Make no mistake, however, that most employees would not turn down a monetary, non-monetary or recognition leave reward! Non-Monetary Reward is the benefit received for performing a task. Total reward embraces everything that employees value in employment relationship. It means all the tools available to the employer that may be used to attract, motivate and retain employees. Non-Monetary Reward will mean a token of appreciation of the contribution/performance of employees leading to significant improvements in the work processes and effectiveness. The employees would be rewarded for their contribution through four categories of awards as given here under: Good Work Done Performers of the Quarter
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A) Good Work Done Appreciation of good work done within the Department, that sets an example for the rest of the employees, would be done by highlighting the contributions through an appreciation letter by the HOD and display on the Notice Boards. B) Performers of the Quarter These Awards are given for contributions that have a significant impact on the function/business of the company. C) Team Award As and when any cross-functional team working on an assignment exceeds the requirements laid down for the work or achieves a milestone, the team may be sent out for a dinner or an outing. D) Annual Award The purpose of this award is to recognize the Best Performer of the year. According to Nelson, informal or spontaneous rewards can be implemented with minimum planning and effort by almost any manager. He quotes a Wichita State University study noting that "simply asking for employee involvement is motivational in itself."
That Wichita State study also determined that the top five motivating techniques were: Personally congratulating employees who do a good job; writing personal notes about good performance; using performance as the basis for promotion; publicly recognizing employees for good performance; and holding morale-building meetings to celebrate successes. Nelson adds that informal rewards make more of a positive impact with employees and are cost effective. According to the "People, Performance and Pay" study by Houston, Texas-based American Productivity Center and the American Compensatory Association, it generally takes five to eight percent of an employee's salary to change behavior if the reward is cash and approximately four percent of the employee's salary if the reward is non-cash. Petroleum marketers have used informal rewards to recognize their employees' good works. Chevron (San Francisco, CA) keeps a large box, secured with a padlock, filled with gifts. An employee being recognized on the spot for some accomplishment is brought to the "Treasure Chest" by his or her supervisor, who holds the keys. The employee gets to choose an item from the box, which could be anything from a gift certificate, to a coupon for lunch or dinner, to movie tickets.
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Some of the most effective ways to reward your employees is to simply say thanks for doing a great job, giving them a birthday card, or keeping them posted on changes at work that directly affect them. Remember those gold stars that the 1st grade teacher put on your report? It may indeed sound childish on the surface, but people really do like to receive a gold star every now and then for a job well done.
REWARDS
Objective
Reward systems have three main objectives: to attract new employees to the organization, to elicit good work performance, and to maintain commitment to the organization.
Meaning of Rewards
Reward system or management usually means the financial reward on organization gives its employees in return for their labour. While the term rewards system, not only includes material rewards, but also non-material rewards. The components of a reward system consist of financial rewards (basic and performance pay) and employee benefits, which together comprise total remuneration. They also include non-financial rewards (recognition, promotion, praise, achievement responsibility and personal growth) and in many case a system of performance management. Pay arrangements are central to the cultural initiative as they are the most tangible expression of the working relationship between employer and employee. Many papers examine the role of organizational culture i.e., the demand for monitoring compensation. Such investigations conclude that organizational culture places a significant role in determining the level of economic demands. Recent researches on industrial unrest rest indicate that reward criteria of the organizations both financial and non-financial rewards have tremendous influence upon the employees and employers performance.
Meaning of Awards
An award is something given to a person or a group of people to recognize excellence in a certain field; a certificate of excellence. Awards are often signified by trophies, titles, certificates, commemorative plaques, medals, badges, pins,
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or ribbons. An award may carry a monetary prize given to the recipient, for example, the Nobel Prize for contributions to society. An award may also simply be a public acknowledgment of excellence, without any tangible token or prize. Awards can be given by any person or institution, although the prestige of an award usually depends on the status of the awarder. Usually, awards are given by an organization of some sort, or by the office of an official within an organization or government. One common type of award in the United States is the Employee of the Month award, where typically the recipients' names are listed in a prominent place in the business for that month.
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Rewards
Monetary Rewards
Non-Monetary Rewards
Compensation
Performance Rewards
Rewards& Recognitions
Awards
Appreciations
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Kinds of Rewards
Monetary Rewards
This includes: Bonus Variable pay Vouchers Cash payments
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1) Awards
"Awards" are the periodic provision of tokens of appreciation or symbols of recognition to individuals. Awards can take place both in a group and a one-to-one basis, but in either instance they usually are publicly presented. Awards generally fall into two categories. The first is 'tangible items' in the way of merchandise or gifts, which might include: 1. Certificates 2. Pins 3. Group Photographs 4. 4.Items of clothing, such as T-shirts, caps, etc. The second category is 'events', including: 1. Lunches and dinners 2. Parties and celebrations 3. Field trips e.g. to the organizations offices Awards are particularly useful in generating a sense of bonding or group involvement among those who do not often have an opportunity to gather together or for whom sharing their togetherness is otherwise difficult. Awards are good short-term bonding or motivating tools at a group level. In the case of events, often there is a mutual appreciation and recognition
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2) Rewards
"Rewards" are the more intangible day-to-day activities of recognition and motivation that are given to individuals to encourage them and to acknowledge their contributions. As such, rewards tend to be less formal, more private and more personal. Example of rewards includes:
Saying 'Thank You'. Giving respect and equal status to volunteers and/or staff. Maintaining a personal interest in the volunteer, staff. Spending time and effort in supervision. Giving the individual more responsibility. Spotlighting a community member on the front page of your site. Sending a personal message to a community member thanking them for their participation Rewards tend to be more effective long-term motivators of individual volunteers, staff or community members -- the feel good factor.
Symbolic awards
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Verbal recognition
Thank you card Testimonies from senior leadership Customer feedback Written congratulations Public recognition
Nelson (1994) sums it up very well when he says you get the best effort from employees not by lighting a fire under them, but building a fire within them. In his book 1001 Ways to recognize employees he makes the following suggestions for informal recognition. These types of recognition would fit into the above category of informal recognition, such as spot programmes or verbal recognition and are generally low cost in nature. Buy welcome to the team flowers for a new employee on their first day; Put gold stars on employees name badges; Give out time off certificates; Create a hall of fame for top employees; Hand out thank you cards with flowers or candy; Give movie tickets; A personal note of thanks; Spoken thank you; Travelling trophy; Plaque or certificate; Achievement acknowledged at staff meetings; Volunteer to do a colleagues least desirable work task for a day; Pay for a magazine subscription; Give sticky notes with a saying appropriate to their personalities; Lack of recognition has been cited as one of the primary reasons for top talent leaving. The challenge of informal rewards is to find the right match between the individual and the recognition given, as the psychic income of being openly acknowledged and appreciated equals or exceeds the material, monetary income. In conjunction with this, Pollock (1995) argues that leaders who recognize the power of the emotional appeal of informal forms of recognition can more easily motivate employees to higher levels of performance, often for much lower costs than monetary rewards.
feedback are essential for consequences to be effective in shaping desired behaviours. Personalized. Recognition has to be meaningful to the employee. Thus the method of delivery and the source of the reward are often as important as the item, comment or activity. Contingent. Recognition has to be earned so that employees feel that they have truly achieved some action or result. Further, for a reward to be effective, the desired behaviour/ performance needs to be within the employees ability and control (or influence). Sincere. Recognition has to be given in a manner that is honest, sincere and from the heart. Immediate. Recognition must be provided soon following the achievement or contribution. Waiting for approval, deadlines or completion may reduce the impact of the reward. The trend to add informal recognition systems to complement formal rewards programmes have emerged as companies struggled to retain the best employees. In their efforts they have discovered that employee motivation is highly individualized. If the intention of a recognition programme is to motivate, then the impact of such recognition should be individualized as well. Formal programmes, although successfully meeting specific organizational goals, do not achieve this. They tend to be impersonal and infrequent, usually once a year or quarterly. The same incentives used over and over also tend to lose its effectiveness.
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Supportive Managers: Support individual managers in the achievement of their goals. Motivate Employees: Motivate employees to achieve high levels of quality performance. Compete in the Labour Market: Attract and retain high quality people. Increased Commitment: Enhance the commitment of employees to the organization that will a) want to remain members of it, b) develop a strong belief in and acceptance of the values and goals of the organization and c) be ready and willing to exert considerable effort on its behalf. Fairness and Equity: Reward people fairly and consistently according to their contribution and values to the organization. Improved Skills: Upgrade competence and encourage personal development. Improved Quality: Help to achieve continuous improvement in levels of quality and customer service Develop team working: Improve co-operation and effective team working at all level. Value for money: Pride value for the money for the organization Manageable: Be easily manageable so that undue administrative burdens are not imposed on managers and members of the personal department. Controllable: Be easily controllable so that the policies can be implemented consistently and costs can be contained within the budget.
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LEVEL 1 - SURVIVAL
Characteristic of level 1 focus on physical survival. Individuals focusing on this level are concerned with financial stability, safety, and health. The negative manifestation of excessive focus at this level manifests as greed and control. An excessive focus on level 1 from an employee is likely to result in scarcity mentality where nothing is enough and the need for a regular income becomes the greed for an income beyond what can reasonably be expected for the job. This results in a mind set of entitlement and bargaining.
LEVEL 2 RELATIONSHIPS
At level 2, the quality of interpersonal relationships is important and individuals value open communication, friendship and respect. When level 2 expresses in a negative sense, it includes intolerance or an excessive need to be liked. Examples abound in business of verbal abuse, sexual innuendo and lack of respect for language, religion, culture and ethnicity.
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At this level, role sizing is important since it provides a basis to compare the relative size or complexity of positions. Setting remuneration levels relative to job size then facilitates the management of internal equity and compare to market. An excessive focus on level 2 from employees is likely to result in excessive collective bargaining and unrealistic demand. A healthy expression of tangible rewards at level 2 includes a measure of relativity of role sizes using a transparent and credible system, preferably with wide participation. This is then linked to remuneration guidelines, which are applied in a consistent and fair manner. The intangible rewards at this level include open communication with employees and treating all individuals and groups with dignity and respect.
LEVEL 3 SELF-ESTEEM
Employees at this level are typically concerned with professional growth and recognition. Excessive focus at this level could manifest as status consciousness, image building and arrogance. From a reward perspective, employees would like to see their efforts recognized. This ideally takes the form of tangible as well as intangible rewards. Tangible rewards for performance have historically been provided via salary increases in excess of inflation. In an era of single digit inflation it is difficult to truly differentiate increase levels. There is growing trend to recognize performance tangibly through short term incentives. A healthy expression of level 3 remuneration practices balances the needs of levels 1 and 2. Incentive pay is appropriate to the type of work, the time horizon of the work and the performance aligned with organization objectives, while encouraging constructive co operation between employees as well as healthy client and supplies relationships. Promotion is not provided as a reward for performance, but is only used when the person takes on a different role with more responsibility and complexity. At the intangible reward levels, recognition, either private or public, for outstanding performance is highly valued as is the opportunity to learn and develop. Internal and external training programs relevant to the employees development are congruent with the needs at this level. Intangible rewards take the form of opportunities for learning and professional development as well as public recognition of achievement and contribution. As excessive focus from an individual at this level is likely to manifest in a mind set of earning and bargaining or individual performance being achieved at the cost of the collective.
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LEVEL 4 TRANSFORMATION
Individuation is characteristic of the level of transformation and a growing awareness of the importance of personal growth. At this level employees display a growing awareness of context and interdependency. Individuals at this level often reflect on what is truly important to them and become aware of the need for balance between tangible and intangible rewards, the balance between self-interest and the common good as well as the need for work/life balance. At this level, individuals accept and understand the imperatives for tangible rewards at the previous levels, but question the need to have the package structuring prescribed. The concept of flexible benefits and total cost of employment are typical issues to be raised at this level.
Individuals that have a calling to make a difference are likely to resonate with organizations that have a strong community and environmental awareness and programs that give expression to this.
LEVEL 7 SERVICE
Level 7 reflects the highest order of internal and external connectedness. Individuals operating at this level focus on service to others. These individuals value wisdom, compassion and forgiveness. They have a long term perspective and are concerned with issue such as social justice and human rights. Individuals at this level find it hard to work for organizations that violate any of the lower level needs of employees and are insensitive to society or the planet. Remuneration practices are viewed from long term sustainability over the long term is an example of this. Employees with a focus at this level are likely to identify with employers that show a global awareness, a balance between long term and short term success indicators (both financial and non-financial) and balance the needs of this generation of stakeholders with the needs of future generations
Case Study:
A Story about Sarah and Marian Sarah and Marian both worked for the same small organization. Marian was your typical high flyer, full of energy and potential, eager to do well and was going places. She loved the challenges her work provided and was keen to do well. Sarah worked very hard, she managed the admin team and was a real barometer of the organizations values, if she felt something wasnt right you could pretty much guarantee it wasnt right. Sarah had a small son, and if money had allowed it, she would probably have given up work when he was born- however that wasnt a possibility. Marian did not have children, she and her partner had a good life, both working full time. To reward Sarah the manager did not have the option to give her more money, and even if she could she knew that actually giving time was a greater reward, so telling Sarah to take Friday afternoon off was a greater reward. She did the same to Marian who went home and worked some more. To reward Marian, the line manager needed to recognize her Drivers. Knowing that Marian was ambitious. Marian could have been a good project to manage, something that was high profile working with important clients, something where the manager showed that Marian was not only capable, but trusted to take on such a project. At different times both deserved to be rewarded for their contributions to the organization, however the reward, to be meaningful needed to reflect what was important to each and within the gift of the manager. So for reward and recognition to be successful you have to know your staff very well. It is important that rewards reflect the contribution. Giving a small reward for a big action will have a more negative impact than giving nothing at all. Likewise giving very large rewards for small contributions will not be looked upon positively. When recognition or a reward is given it should be done in a genuine manner and the person made to feel that this is special That they are special and appreciated. Individual or Team Based Rewards. Even if some contributors are not so easy to measure, it is unlikely that every one makes a contribution to the organization. Most recognition and reward systems are based on individual performance, however increasingly people are tuning to group based reward and recognition strategies. The advantages in individual based strategies are mainly that: Cheaper than team based strategies! Easy to identify who has made contribution Can be tailored to the individual
Of course there are potential disadvantages in that individual strategy; Can create unhealthy conflict or competition Can be open to favoritism Ignores the value added in the team or chain.
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What type of strategy to adopt depends very much on the nature of the organization and how work is organized? If you adopt an individual approach, ensure that the quieter and more invisible members of staff are not ignored. There are some principles that underpin a good reward and recognition strategy The implementation of the procedures should be fair now and in the future. The policy should include all members of staff The reward or recognition should be of equal value to the contribution being recognized. The reward should be meaningful to the recipient. Criteria for reward and recognition should be transparent. The system should be sustainable. Teams as well as individuals can be rewarded. The supervisor or line managers are in the best position to recognize and reward contributions.
That is, the good feelings they get from the work they do. Rewards can be material or non material. Material rewards might very well include cash bonuses, profit share, gifts, tickets to events, holidays, prizes or superannuation top ups. Non material rewards might be time off to pursue personal interests, or organizing a staff function or a special theme day once a month to boost morale. Non material rewards might also include giving staff special training or projects to help keep their job challenging, broaden their experience and boost their worth in the job market.
As noted, although employee recognition programs are often combined with reward programs they retain a different purpose altogether. Recognition programs are generally not monetary in nature though they may have a cost to the company. 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 many elements of designing and maintaining reward and recognition systems are the same, it is useful to keep this difference in mind, especially for small business owners interested in motivating staffs while keeping costs low.
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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, 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, 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. While this may seem obvious, companies frequently make the mistake of rewarding behaviors or achievements that either fails to further business goals or actually sabotage them. If teamwork is a business goal, a bonus system rewarding individuals who improve their productivity by themselves or at the expense of another does not make sense. Likewise, if quality is an important issue for an entrepreneur, the reward system that he or she designs should not emphasize rewarding the quantity of work accomplished by a business unit. Properly measuring performance ensures the program pays off in terms of business goals. Since rewards have a real cost in terms of time or money, small business owners need to confirm that performance has actually improved before rewarding it. Once again, the measures need to relate to a small business' goals. As Linda Thornburg noted in HR Magazine, "Performance measures in a rewards program have to be linked to an overall business strategy. Most reward programs use multiple measures which can include such variables as improved financial performance along with improved customer service, improved customer satisfaction, and reduced defects." When developing a rewards program, an entrepreneur should consider matching rewards to the end result for the company. Perfect attendance might merit a different reward than saving the company $10,000 through improved contract negotiation. It is also important to consider rewarding both individual and group accomplishments in order to promote both individual initiative and group cooperation and performance. Lastly, in order for a rewards program to be successful, the specifics need to be clearly spelled out for every employee. Motivation depends on the individual's ability to understand what is being asked of her. Once this has been done, reinforce the original communication with regular meetings or memos promoting the program. Keep your communications simple but frequent to ensure staffs are kept abreast of changes to the system.
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Recognition Programs
A recognition program may appear to be merely extra effort on their part with few tangible returns in terms of employee performance. While most employees certainly appreciate monetary awards for a job well done, many people merely seek recognition of their hard work. For an entrepreneur with more ingenuity than cash available, this presents an opportunity to motivate employees. In order to develop an effective recognition program, it must be sure to separate it from the company's reward program. This ensures a focus on recognizing the efforts of employees. To this end, although the recognition may have a monetary value (such as a luncheon, gift certificates, or plaques), money it is not given to recognize performance. Recognition methods should be sincere; fair and consistent; timely and frequent; flexible; appropriate; and specific. explain that it is important that every action which supports a company's goals is recognized, whether through informal feedback or formal company-wide recognition. Likewise, every employee should have the same opportunity to receive recognition for their work. Recognition also needs to occur in a timely fashion and on a frequent basis so that an employee's action does not go overlooked and so that it is reinforced to spur additional high performance. Like rewards, the method of recognition needs to be appropriate for the achievement. This also ensures that those actions which go farthest in supporting corporate goals receive the most attention. However, an entrepreneur should remain flexible in the methods of recognition, as employees are motivated by different forms of recognition. Finally, employees need to clearly understand the behavior or action being recognized. A small business owner can ensure this by being specific in what actions will be recognized and then reinforcing this by communicating exactly what an employee did to be recognized. Recognition can take a variety of forms. Structured programs can include regular recognition events such as banquets or breakfasts, employee of the month or year recognition, an annual report or yearbook which features the accomplishments of employees, and department or company recognition boards. Informal or spontaneous recognition can take the form of privileges such as working at home, starting late/ leaving early, or long lunch breaks. A job well done can also be recognized by providing additional support or empowering the employee in ways such as greater choice of assignments, increased authority, or naming the employee as an internal consultant to other staff. Symbolic recognition such as plaques or coffee mugs with inscriptions can also be effective, provided they reflect sincere appreciation for hard work. These letter expressions of thanks, however, are far more likely to be received positively if the bestower is a small business owner with limited financial resources. Employees will look less kindly on owners of thriving businesses who use such inexpensive items as centerpieces of their reward programs. Both reward and recognition programs have their place in small business. Small business owners should first determine desired employee behaviors, skills, and accomplishments that will support their business goals. By rewarding and recognizing outstanding performance, entrepreneurs will have an edge in a competitive corporate climate.
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Motivation
Extrinsic Motivation
Extrinsic motivation comes from outside of the performer. Money is the most obvious example, but coercion and threat of punishment are also common extrinsic motivations. In sports, the crowd may cheer the performer on, and this motivates him or her to do well. Trophies are also extrinsic incentives. Competition is often extrinsic because it
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encourages the performer to win and beat others, not to enjoy the intrinsic rewards of the activity. Social psychologists research has indicated that extrinsic rewards can lead to over justification and a subsequent reduction in intrinsic motivation. Extrinsic incentives sometimes can weaken the motivation as well. In one classic study done by green and lepper children who were lavishly rewarded for drawing with felt tip pens later showed little interest in playing with the pens again.
Motivational Theories
reinforces reduce drive. For example, money does not satisfy any biological or psychological need but reduces drive on a regular basis through a pay check second order conditioning. Secondly, if the drive reduction theory held true we would not be able to explain how a hungry human being can prepare a meal without eating the food before they finished cooking it.
The needs, listed from basic to the most complex are as follows: Physiological Safety Belongingness Esteem Self Actualization
He distinguished between: Motivators: (e.g. challenging work, recognition, responsibility) which give positive satisfaction, Hygiene Factors: (e.g. status, job security, salary and fringe benefits) that do not motivate if present, but, if absent, result in demotivation. This theory is sometimes called the Motivator Hygiene Theory
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Schemes
i. ii. iii. iv. v. vi. vii. viii. ix. x. xi. xii. xiii. Applause Thank You Slips Appreciation letter STAR of the Month Employee of the Year Vidhyut Awards Power EXCEL Awards PEARL Awards ACE Awards Mentors Samman Manveeyata Puraskar Welcoming Bidding Farewell
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Applause
Objective: To appreciate a task well done / target achieved within stipulated time by an individual employee or group of employees in a section/department. Award: 'Standing applause'' is given to the Individual or the group of employees by inviting to section/ departmental meeting A list of people who have got applause in a particular month shall be displayed on the notice board/Local Web Page for a period of 01 month. Responsibility: Head of the dept/Sectional Head Applicability/Eligibility: Individual / group of employees within a section / department Criteria: To recognize any initiative/job well done by subordinate/ group in day-to-day functioning.
Thank You Slip Eligibility: All employees Criteria: Any good work done by anyone in the department / group may be appreciated through feel good slips / a card. Recognition: Employee who wants to recognize another employee may leave a Thank You Slip on the desk of such an employee or e-mail the same to him/her. This is an appreciation of one employee by another towards realization of NTPC Core Value Mutual Respect & Trust.
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Appreciation letter Objective To place on record good work done by an employee/group of employees for recognition and motivation. Applicability All employees up to the level of E7 Periodicity As frequently as possible. There is no limit on number of times an employee could be appreciated for good work. Reward Appreciation letter to the individuals/group of individuals shall highlight the specific contribution/instance.
Star of the Month Objective To recognize consistent good work done by the employee(s). Applicability / Eligibility All non-executives Criteria Non-Executive, who has shown consistent punctuality, discipline, customer orientation, participation in TQM initiatives, team playing etc. Reward A small pin-up badge stating STAR of the month by HOD in presence of team members. Name of the employees with the photo should be put on notice boards.
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Employee of the YEAR Objective To recognize and reward exemplary performance for creating role models and a performance culture. Eligibility Non-Executives, who have got a minimum of two STAR of the month awards and four Appreciation Letters in a year Criteria Non-Executives, who exhibit outstanding all round contribution through regular & active participation in various TQM initiatives, extra curricular activities, demonstrate additional skills etc. as per the given parameters Rewards Two levels of awards at each location i.e. unit / region / CC Unit level: Rs. 2,000/- each
Department level: Rs.1000/- each (a) Unit level: Position no. 1 and 2 based on selection of all nominated employees from each department, for Employee of the Year reward. (b) Departmental: All those who were nominated for the unit level employee of the year award but did not qualify for the same, would be considered based on their position for Department Employee of the Year reward. There would be only one award in this category for each department.
Vidhyut Award Objective To recognize & reward meritorious Non executive employees from amongst the entries of Shram Awards to Government of India Applicability / Eligibility The entries for Shram awards submitted to Govt. of India, but were not awarded. Criteria
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Such of those entries, which did not get Shram Award, would be considered for this award. Reward - Letter of appreciation under the signature of Director (HR) - Cash Rewards Rank 1st 2nd 3rd No. of awards 1 2 5 Reward Amount (Rs.) 15,000 10,000 7,500 Name Vidyut Jyoti Vidyut Punj Vidyut Kiran
Power Excel Award Objective To recognize excellence in discharging official duties & demonstration of NTPC core values. Applicability/Eligibility All executives upto E6, excluding HODs Criteria Innovations and improvements in his area of work. Contribution towards group efforts Demonstrates Core Values at work and during interactions Should have received at least one 'Appreciation Letter' or Manveeyata Purskar Reward - These awards shall be given under the name POWER EXCEL awards (Power Executives Excellence Awards) Training in India ( upto 7 days as per choice of the executive.)
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Letter of appreciation under the signature of BUH/GM (Proforma E-1) A cash Reward of Rs.5,000/PEARL Awards (Performance Excellence Awards for Regional Leadership) Objective To recognize excellence in leadership & demonstration of NTPC core values . Applicability /Eligibility All HODs and E7 at units & Regional Headquaters and E7 & E7A at CC. Criteria Exhibition of Leadership qualities Achieving Excellence in his area of responsibility Demonstration of Core values Implementation of Strategic initiatives in HR, TQM, Cost control measures, Corporate Social responsibility etc. Encouraging Creativity, innovation Reward
The awards shall be given under the name PEARL (Performance Excellence Awards for Regional Leadership) Upto 10- days training of his choice in India & a cash reward of Rs.10,000/Appreciation Letter under the signature of Concerned ED - Copy to be place in personal file/ PAR file.
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ACE Award (Awards for Corporate Excellence) Objective To recognize excellence in leadership & demonstration of NTPC Core Values Applicability/Eligibility All Heads of Project/Stations GMs in Regions and Corporate Centre Criteria Strategic leadership, Innovation, creativity and Knowledge Management Core Value And CSR. Reward These awards shall be given under the name ACE Awards (Awards for Corporate Excellence)
1 from Corporate Centre 2 from all Regions/Units/Proj./Stations up to 07 days of Training Abroad and a cash reward of Rs.15,000/-Letter of Appreciation to be Delhi. presented in ECM by CMD Special functions In
Mentor Samman Objective To recognize the active services of mentors in socio cultural integration of mentees with the companys environment. Applicability All mentors who have been attached with current batch of ETs for mentoring. Reward - A letter of appreciation as per Pro formaH - A token gift/memento of Rs.1,000/- each
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Manveeyata Puraskar Objective To recognize good values exhibited by employees in official & social life. This shall include Human Values, Core Values (BCOMIT) of the Company for creating role models in the company. Applicability / Eligibility All employees upto E7 are eligible for this award. Criteria Should have exhibited an exemplary Value Reward Appreciation Letter A Gift of upto Rs. 1,000/- ( based on the merit of the case) No. of cases is left to the discretion of BUH/GM/ED at all locations
Welcome Objective To welcome new joinees/transfer-ins for their socialization . Applicability / Eligibility All Employees Periodicity Within one week of the joining of an employee Procedure Welcome letter Get-together for the new joinees / Transferees
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Bidding Farewell Objective To bid farewell to an employee on his/her Superannuation Applicability / Eligibility All Employees. Periodicity On the day of Superannuation Reward Procedure - Letter from BUH/ED highlighting his/her association with Organization A token gift of Rs.5,000/-
Get-together with employees of the concerned department, all HODs (Head Of Departments) and BUH (Business Unit Heads).
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COMPANY PROFILE
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Vision of NTPC:
A world class integrated power major, powering Indias growth, with increasing global presence.
Mission of NTPC:
Develop and provide reliable power, related products and services at competitive prices, integrating multiple energy sources with innovative and eco friendly technologies and contribute to society.
Project Profile
Coal Based power stations S. No. 1. 2. 3. 4. 5. 6. 7. Place Singrauli Korba Ramagundam Farakka Vindhyachal Rihand Kahalgaon State Uttar Pradesh Chhattisgarh Andhra Pradesh West Bengal Madhya Pradesh Uttar Pradesh Bihar
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NTCPP Talcher Kaniha Talcher Thermal Unchahar Simhadri Tanda Badarpur Sipat
Uttar Pradesh Orissa Orissa Uttar Pradesh Andhra Pradesh Uttar Pradesh Delhi Chhattisgarh
NTPC: In Depth
NTPC Limited is the largest thermal power generating company of India. A public sector company, it was incorporated in the year 1975 to accelerate power development in the country as a wholly owned company of the Government of India. At present, Government of India holds 89.5% of the total equity shares of the company and FIIs, Domestic Banks, Public and others hold the balance 10.5%. Within a span of 31 years, NTPC has emerged as a truly national power company, with power generating facilities in all the major regions of the country. Based on 1998 data, carried out by Data monitor
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UK, NTPC is the 6th largest in terms of thermal power generation and the second most efficient in terms of capacity utilization amongst the thermal utilities in the world. NTPC Limited Formerly known as National Thermal Power Corporation. The Group's principal activities are engineering, construction and operation of power generating plants and providing consultancy to power utilities in India and abroad. The Group operates through two segments. Power Generation includes generation and sale of bulk power to SEBs/State Utilities. Others provide consultancy, project management and supervision, maintenance services, power trading and distribution of bulk power. The Group has generated 170.88 billion units of electricity in 2006
NTPCs share on 31 Mar 2007 in the total installed capacity of the country was 20.18% and it contributed 28.50% of the total power generation of the country during 2006-07. NTPC has set new benchmarks for the power industry both in the area of power plant construction and operations. It is providing power at the cheapest average tariff in the country. With its experience and expertise in the power sector, NTPC is extending consultancy services to various organizations in the power business. NTPC is committed to the environment, generating power at minimal environmental cost and preserving the ecology in the vicinity of the plants. NTPC has undertaken massive afforestation in the vicinity of its plants. Plantations have increased forest area and reduced barren land. The massive afforestation by NTPC in and around its Ramagundam Power station (2600 MW) has contributed reducing the temperature in the areas by about 3c. NTPC has also taken proactive steps for ash utilization. In 1991, it set up Ash Utilization Division to manage efficient use of the ash produced at its coal stations. This quality of ash produced is ideal for use in cement, concrete, cellular concrete, building material. A "Centre for Power Efficiency and Environment Protection (CENPEEP)" has been established in NTPC with the assistance of United States Agency for International Development.(USAID).Cenpeep is efficiency oriented, eco-friendly and eco-nurturing initiative - a symbol of NTPC's concern towards environmental protection and continued commitment to sustainable power development in India. As a responsible corporate citizen, NTPC is making constant efforts to improve the socio-economic status of the people affected by its projects. Through its Rehabilitation and Resettlement programmes, the company endeavors to improve the overall socioeconomic status of Project Affected Persons. NTPC was among the first Public Sector Enterprises to enter into a Memorandum of Understanding (MOU) with the Government in 1987-88. NTPC has been Placed under the 'Excellent category' (the best category) every year since the MOU system became operative. Recognizing its excellent performance and vast potential, Government of the India has identified NTPC as one of the jewels of Public Sector Maharatnam- a potential global giant. Inspired by its glorious past and vibrant present, NTPC is well on its way to realize its vision of being A world class integrated power major, powering Indias growth, with increasing global presence. Developing and operating world-class power stations is NTPCs core competence. Its scale of operation, financial strength and large experience serve to provide an advantage over competitors. To meet the objective of making available reliable and
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quality power at competitive prices, NTPC would continue to speedily implement projects and introduce state-of-art technologies.
presence across entire energy value chain. In fact, to symbolize this change, NTPC has taken on a new identity and a new name NTPC Limited. NTPC has recently diversified into coal mining business primarily to secure its fuel requirements and support its aggressive capacity addition program. In addition, NTPC is also giving thrust on diversification in the areas of power trading and distribution. Diversification would also allow NTPC to offer new growth opportunities to its employees while leveraging their skills to capitalize on new opportunities in the sector.
Amongst top five market capitalization in the Indian market An Indian MNC with presence in many countries Diversified utility with multiple businesses Setting benchmarks in project construction and plant availability & efficiency Preferred employer Have a strong research and technology base Loyal customer base in both bulk and retail supply
A leading corporate citizen with a keen focus on executing its social responsibility.
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A mechanical engineer by profession Shri Chandan Roy is also Chairman, Ratnagiri Power Project Limited. He is also on the Board of Damoder Valley Corporation (DVC), Northern Coal Fields Limited (NCL) and Nuclear Power Corporation of India Limited (NPCIL).
On the occasion of Power Line magazines Tenth Anniversary celebrations, on 11th October, 2006 in New Delhi, Mr. Sushi Kumar Shinde, and Union Minister of Power presented Expert Choice Awards to honor the leading achievers in the power sector. NTPC was recognized as the "Best Organization in Central Sector".
STAKE HOLDERS
CENTRAL GOVT.
S U P P L I E R S
B U
NTPC
COAL SUPPLIERS
SEBS
Y E R
STATE GOVT.
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NTPC HR VISION
TO ENABLE OUR PEOPLE TO BE A FAMILY OF COMMITTED WORLD CLASS PROFESSIONALS, MAKING NTPC A LEARNING ORGANIZATION.
NTPC
To be one of the worlds largest & best power utilities powering Indias growth.
HR
To enable our people to be a family of committed world class professionals, making NTPC a learning organization.
PMI Vision
To become an institute of excellence as a global centre of education for power professionals to build world class competencies
Director (HR)
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Executive Director
HR Policy Division
HR Recruitment
Promotion Appraisals
&
Employee Benefit
Industrial
Establishment
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DATA ANALYSIS
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The data analysis has been done question wise as well as according to the question statements of the questionnaire. The present study is carried out by administering questionnaire of 13 questions and a sample of 300 employees/respondents.
Q1. I am aware of the various monetary and non monetary reward schemes of NTPC.
Q1
DISAGRE E 15% STRONGL Y DISAGRE E 6% STRONGL Y AGREE 10%
The majority of the employees agree that they are aware of various monetary and non monetary reward schemes of NTPC (47% agree and 10% strongly disagree). However there are some employees who disagree, that, they are not aware about the various different reward schemes of NTPC even though it has been more than 5yrs that it has been introduced. The HR department and all the HODs should take corrective measures to spread the awareness regarding these schemes, what are the different eligibility criteria and how to apply for these respective schemes. The freshers or new employees should be given enough information during the induction program itself.
Fig 1
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Q2. I am aware about the basic criteria on which various awards are based.
Q2
STRONGLY DISAGREE 5% DISAGREE 20%
STRONGLY AGREE 7%
AGREE 44%
As a result, the majority of employees are aware about the reward schemes, henceforth the majority are also aware about the criteria on which various awards are based. As we can see from the above statistics, 44% employees agree and 7% strongly agree that they are aware but even 24% employees are in a state that they neither they agree nor disagree, i.e. they are not really clear with the basic criteria of these rewards.
Fig 2
Q3.
Q3
STRONGLY AGREE 9%
Many employees (almost 50%) believe that the rewards are based on clear and objective criteria. However there are some set of employees who disagree with the above statement, and for that the HR dept. Along with their respective HODs need to take corrective actions such as clearing their misconceptions or explaining in depth the various different criteria.
AGREE 40%
Fig 3
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Q4.
Q4
STRONGLY AGREE 8%
Based on the above two questions and pie chart on the right, more than 50% employees believe that the rewards are given as per criteria that they are aware of and which are mentioned in the HR Compendium. As the result of the researchers observation, not many employees are happy with the current reward & recognition system and hence such a negative result.
Fig 4
Q5.
DISAGREE 21%
STRONGL Y DISAGREE 8%
Q5
Based on the survey results, many employees believe that favouritism does play a vital role in anybody being rewarded. All the employees that are rewarded are either the favourites of their dept. Heads or make sure their achievements are highlighted to a higher degree as that of their collegues.
Fig 5
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Q6.
Q6
AGREE 41%
According to the survey, more than 50% employees think that deserving people are awarded but at the same time there are some employees who believe that people who are awarded are not deserving enough and those employees who work hard but are not highlighted enough though deserve to be awarded.
Fig 6
Q7.
Q7
STRONGL Y AGREE 7%
AGREE 38%
If we look at the survey results, employees do agree that they get rewarded but not on time. The statistics reveal that 45% (38 + 7) agree that employees get rewarded but a large number of employees believe that the rewards lose its relevance as it is not given on time.
Fig 7
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Q8.
Q8
DISAGREE 16%
STRONGLY AGREE 7%
The statistics reveal that more than 50% employees believe that the awardees are publicised as and when they are rewarded / awarded. But if we look at the section of neither agree nor disagree, 29% employees think that the employees who are rewarded are not publicised enough as they are not aware of people who are rewarded / awarded.
Fig 8
Q9.
Q9
The survey revealed that people do get recognized as the deserving candidates get rewarded and the top management also recognises and appreciates such employees so as to inspire other employees to follow the suit.
Fig 9
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Q10
AGREE 42%
According to the statidstics, more than 50% people agree with the fact that good work done by them doesnt go unrecognised. The achievements are highlighted and in the above few statistics have also proved that employees who deserve are rewarded duly.
Fig 10
Q11. Seniors share the credit of good work with their subordinates
STRONGLY DISAGREE 6% DISAGREE 10%
Q11
There has been an eye opening revelation when it came to this question. Many employees believe that office politics play a role when it comes to senior sharing the good work with their subordinates. However more than 50% employees do believe that their seniors share the credit with them.
Fig 11
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Q12
This particular statement has revealed the most negative aspect of rewards and recognition policy of NTPC. The employees hardly think that quantum of rewards is proportionate to ones achievement. Even though they are rewarded for their performance and achievements it is not proportionate to what they have achieved.
Fig 12
Q13. Performance linked monetary rewards (GI/ CI etc) are reasonable at NTPC.
Q13
STRONGLY AGREE 9%
AGREE 31%
Last but not the least, again the employees have shown their unhappiness and discontentment when it comes to performance linked monetary rewards. The employees, more or less want something more than what is being offered to them.
Fig 13
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After analyzing the questionnaire I have came out with certain recommendations for the company. While asking the questions to the employees I came to know that they want something different from the present reward scheme.
On the basis of my research I would like to recommend to the human resource team of the organisation that: Employees want that some new and challenging work should be given to them as rewards. Means, according to their personal interest the project should be given to them. The criteria of giving the reward should be transparent. Means, the employee wants that they should know what are the actual criteria of selecting an employee for the reward. Most of the employee thinks that their project manager does not communicate them the reward policies in their project. So, the HR team should have to take some measures to remove this drawback. Few of the employees do not know the current reward schemes running in the organisation. So, the HR department should look for the various different ways through which they can easily tell about the reward schemes to the employees. Most of the employees think that the reward should be given to them in team meetings rather than individually or in team mails. Most of the employees think that after a certain time period some new reward schemes should be introduced in the company.
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CONCLUSION
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After analyzing the questionnaire I have reached to certain conclusions that the employees are satisfied with the reward schemes running in the organization. Most of the employees think that the rewards are very crucial in the organization because it helps in increasing the motivation level of the employee which ultimately leads in increasing the performance of the employee. I have reached to certain more conclusions which are as follows:
Non monetary Rewards are preferred more than the monetary rewards
After doing all the analysis work I had came out with a conclusion that employees in the organisation prefers non monetary rewards than the monetary rewards. According to them non monetary rewards has more impact than the monetary rewards.
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REFERENCES / BIBLIOGRAPHY
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Websites
http://books.google.co.in/books?id=SBNbFCBtcFsC&pg=PA168&dq=rewards+a nd+recognition&lr=#PPA167,M1 http://books.google.co.in/books?id=J2eRTQXWQlQC&pg=PA1&dq=rewards+an d+recognition&lr=#PPA13,M1 http://books.google.co.in/books?id=6OCDtSU1nwC&pg=PA1&dq=reward+strategies&lr=#PPA11,M1 http://books.google.co.in/books?id=keiVwGxm3i0C&pg=PA363&dq=rewards+an d+recognition+to+employees&lr=#PPA371,M1 http://books.google.co.in/books?id=qUbqdAIOA9YC&printsec=frontcover&dq=re wards#PPR9,M1 http://www.google.co.in/search?q=reward+and+recognition+filetype:pdf&hl=en&lr =&start=10&sa=N http://www.google.co.in/search?hl=en&q=project+report+on+rewards&meta=&aq =f&oq= http://www.answers.com/topic/employee-reward-and-recognition-systems http://www.google.co.in/search?q=rewards+recognition+workplace+filetype:pdf& hl=en&lr=&start=20&sa=N http://wilderdom.com/OEcourses/PROFLIT/Class6Qualitative1.htm http://www.socialresearchmethods.net/kb/qualmeth.php http://en.wikipedia.org/wiki/Quantitative_research http://www.okstate.edu/ag/agedcm4h/academic/aged5980a/5980/qualrsch/QUAL RSCH/sld017.htm
E- Books Just Reward Yourself Recognizing and Rewarding The manager guide to Rewards How to Recognize the employees
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ANNEXURE
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Q1. I am aware of the various monetary and non monetary reward schemes of NTPC. Q2. I am aware about the basic criteria on which various awards are based. Q3. Q4. Q5. Q6. Q7. Q8. Q9. Rewards are based on clear and objective criteria. Rewards are given as per criteria Favouritism prevails when it comes to giving away awards Deserving people are awarded. Rewards are given on time, as and when they become due. Awardees get adequate publicity Good performance is appreciated and recognized by top management.
Q10. Good work doesnt go unrecognized. Q11. Seniors share the credit of good work with their subordinates Q12. Quantum of rewards is proportionate to ones achievement Q13. Performance linked monetary rewards (GI / CI etc) are reasonable at NTPC.
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