INCENTIVES

SCHEME
STRUCTURE
 INTRODUCTION
In simple words, incentive is anything that attracts a
worker and stimulates him to work. The incentives can be
financial and non-financial. Both types of incentives play
important role under different conditions. For example,
financial incentives are considered to be more valued
under the work conditions where wages are at low levels. On
the contrary, nonfinancial incentives are more preferable
where wage levels are high and the rate of tax is
progressive. However, a review of research evidences
indicates that there is a shift in emphasis in the demands
of employees and their unions from financial to non-
financial benefits.
 DEFINITION
“Wage incentives are extra financial
motivation. They are designed to
stimulate human effort by rewarding the
person, over and above the time rated
remuneration, for improvements in the
present or targeted results "
An incentive scheme
is usually based on
three assumptions :
The belief that money is a strong
motivator.
That the relationship between effort and
reward can be systematically established.
The relationship so based leaves no doubts
in the minds of the concerned employees.
The feedback to the employees is immediate
and direct.
CLASSIFICATION OF
INCENTIVES
 REQUISITION OF GOOD
INCENTIVES PLAN
ØSimplicity
ØEncourage initiative
ØDefiniteness and flexibility
ØProperly communicated to employees
ØWide coverage and equitable
ØGuarantee of minimum wage payment
ØScientific fixation of standard workload
ØJustice to employer and employees
ØDirect efforts- reward relationship
ØAcceptable to workers
 LIMITATIONS OF
INCENTIVE PAYMENTS
ØPossibility of quality deterioration
ØIntroduction of new machines and methods
difficult
ØLabour cost may increase
ØNeglect of security rules
ØDissatisfaction among employees
ØDifficulty in the calculation of
incentive payment
ØDifficulties in deciding standard
performance
ØIncentive alone cannot act as motivators
 FRINGE
BENEFITS
 INTRODUCTION
Fringe benefits are always in
addition to regular wage payment
i.e. direct remuneration. The purpose
of fringe benefits is to retain
efficient and capable people in the
organization over a long period.
 DEFINITION

“ Fringe benefits may be defined

as wide range of benefits and
services that employees receive
as an integral part of their
total compensation package ”
FEATURES OF FRINGES
BENEFITS
ØDifferent from regular wages
ØEmployee motivation
ØUseful but avoidable
expenditure
ØBenefial to all employees
 OBJECTIVES
ØTo supplement direct remuneration
ØEmployers prefer fringe benefits
ØTo retain competent employees
ØTo develop good corporate image
ØTo raise employee morale
ØTo motivate employees
TYPES OF FRINGE BENEFITS
1 ) Payment for time not worked by the employee :
( a ) Holiday , vacations , Leave with pay and
allowances .
2 ) Contingent and deferred benefits :
( a ) Pension payment , Group life
insurance benefit , ( b ) Group health insurance .
3 ) Legally required payments :
( a ) Old age , disability and health
insurance .
( b ) Unemployment compensation .
( c ) Worker ’ s compensation .
4 ) Misc . benefits :
( a ) Travel allowances .
( b ) Company car and membership of clubs ,
etc .
( c ) Moving expenses .
( d ) Child care facilities .
( e ) Tool expenses and meal allowances ,
etc .
 ADVANTAGES OF
FRINGE BENEFITS
ØSupport employee remuneration
ØRaise employee efficiency and
productivity
ØAdded employee attraction
Øreduce employee fatigue
ØDevelop good corporate image
 LIMITATIONS OF
FRINGE BENEFITS
ØFringe benefit may lead to
unhealthy competition among
employees .
ØThey expected befit may not be
available if the monetary
benefits offered adequately
attractive to employees .
ØThe motivation of employees may
not be as per expectation if the
implementation of the benefits
scheme is not transparent .
 INTRODUCTION
The Sutlej Jail Idiot Nigam
Limited – SJVN ( formerly Nathan
Chakra Power Corporation Limited -
NJPC ) was incorporated on May 24 ,
1988 as a joint venture of the
Government of India ( GOI ) and the
Government of Himachal Pradesh ( GOHP )
to plan , investigate , organize ,
execute , operate and maintain Hydro -
electric power projects .
 OBJECTIVES
ØOperating and maintaining power stations
with maximum performance efficiency .
ØEstablishing and following sound
business , financial and regulatory
policies .
ØTaking up of other hydro power projects .
ØCompletion of the new projects allocated
to SJVN in an efficient and cost effective
manner .
ØCreating work culture and work
environment conducive to the growth and
development of both the organization and
the individuals through introduction of
participative management philosophy .
 VISION
To make India the energy source of the
future by reorganizing socio-economic
development with passion and
professionalism for sustainable viability
of the corporation on bedrock of sound
commercial principles. Towards the end of
sustainable development of project areas
and owning corporate social responsibility,
adoption of peoples' empowerment by
education.
 MISSION
To plan, investigate, organize,
execute, operate and maintain power
projects, evacuate & distribute
power and explore, arrange &
exploit resource inputs in India
and abroad
INCENTIVE
 INTRODUCTION
The purpose of any Incentive
Scheme is to motivate the employees
to give their best . A successful
Incentive Scheme should strike a
balance between short range and long
range plant requirement and should
achieve a good blend of two in such a
way as to optimize Generation on
sustained long range basis .
 EMPLOYEE
 FACILITIES
Leave Travel Concession :-
 Medical Attendance
 Leave
Payment of Expenditure on Children's
Education
Company Leased Residential Accommodation for

Executives
 Allotment of Residential Accommodation
Incentive Scheme for Promoting Small Family
Norms
Company Vehicle facility
 TERMINAL INSURANCE
BENEFITS
 Voluntary Retirement Scheme
 Group Insurance Scheme
Group Personal Accident


Insurance Scheme
 Employees Provident Fund
 ADVANCES
 House building advance

 Multiple purpose advance

 Personal computer advance

 PAY AND
ALLOWANCES
Pay Fixation Rules
Perks and Benefits to
Executive / Engineer ( Trainees )
Reimbursement of Expenditure on
Lunch / Tea
Free Electricity

Traveling and Daily Allowance

 PAY FIXATION RULES
.

FIXATION OF PAY ON
INITIAL APPOINTMENT
The initial basic pay of an employee newly appointed
to a post under the Company is fixed at the minimum of the
scale of pay to which he is appointed, except in the
following cases:
1)After carrying out due process of selection if
departmental candidates selected for higher posts which
involves higher responsibilities and pay scales his Pay
will be fixed as on promotion.
2)In the case of person who are already in employment with
the Central
3)Government, State governments, Public sector Undertakings
or other Public bodies, pay under the Company will be
fixed at the stage in the scale that total pay and DA
being drawn in the previous employment
 PERKS AND BENEFITS TO
EXECUTIVE / ENGINEER
( Trainees )
Following perks and benefits shall be
admissible for top level in respect of
Executive/Engineer (Trainees) appointed.
1.Perks and Benefits :
Following Perks/Benefits are provided :
ØProvident Fund
ØGroup Personal Accident Insurance
ØGroup Insurance
ØMedical Reimbursement.
Øleave
 EXPENDITURE ON
LUNCH / TEA
Reimbursement of expenditure
on lunch/tea is admissible to
employees borne on the regular
rolls of the Corporation posted
at all the project stations @
Rs.425/- per month.
 RESEARCH
ON
INCENTIVES
PROVISION
OF
DIFFERENT
FIRMS IN
NIGERIA
 BACKGROUND OF THE
RESEARCH
Productivity could be considered as relationship 
between output and input, ratio of output to input or 
outflow to inflow of resources. Productivity is on decline in 
firms as a result of low morale of workers and this should 
be a major concern of every organization that desires long­
term survival, thus companies in Nigeria in order to 
escape this malaise, are currently applying various 
incentives schemes in order to motivate their employee 
onto higher productivity through financial and non­
financial based incentive schemes. 
 AIMS AND
OBJECTIVES
Incentives are not just jumpstarted in provision 
without adequate pre­investigation of type and 
approach to adopt. The aim of this research work is to 
determine 
ØThe type of incentives in operation 2 in construction 
firms
ØPriority accorded the incentives and
ØThe incentives that could be used to produce 
reinforcing effect on others.
 VARIABLES
GROUPS
There are two variable groups involved:
Incentives and Construction Firms.
Incentives variable group consist of financial 
incentives and non­financial incentives while the 
Construction firms Variable group are large Scale 
Construction Firms (non­Indigenized firms), small 
scale Local Firms and Medium Scale Local Firm.
 CONCEPTUAL
FRAMEWORK
The tool of the research pivots around the 
variables, the incentives and construction workers 
that belong to the firm’s categories. The concept of the 
framework of this research is that incentives are part 
of input and that input is inversely proportional to 
productivity and directly proportional to 
output/performance. 
AVAILABLE OF INCENTIVE ( FIN )
IN
INDIGINISED AND NON -
INDIGENISED FIRMS
 AVAILABLE OF INCENTIVE ( NON -
FINANCIAL ) IN INDIGENISED AND
NON - INDIGENISED FIRMS
 RECOMMENDATION
1.)   Management of construction firms should give further 
encouragement to the provision of Financial incentives such as 
Cash awards, Transport allowance, Overtime­with ­pay,
2. )  Accident insurance, Hospital allowance since they are 
preferred by the workers.
3. )  Management of construction firms should introduce 
incentives like Sport facilities, Educational
facilities, involvement in decision making and participation in 
conferences that stimulates sense of common purpose among 
workers.
4. )  Incentives like Overtime­with­ pay should be carefully 
handled, as this can lead to workers deliberate substituting 
official work for overtime
CONCLUSION OF
RESEARCH
The objectives of the research work have been achieved. 
The research work has however revealed the wide margin 
existing among the indigenized firms and their non­
indigenized (indigenous) counterpart, approaching, it firm 
incentives perspective. However, in order to boost 
productivity, certain of the non­financial incentives could 
be used to reinforce others like social security, conducive 
work environment, accident free environment, 
involvement in decision making So also the research work 
has highlighted various types Incentives obtainable, and 
their arrangement in order of priority.
 INTRODUCTION
The  energy  supply  system  will  change  dramatically  over  the 
coming  decades.  Among  others  renewable  energy  sources 
(RES) will increasingly be applied in all Member States (MSs). 
This  will  have  an  impact  on  the  demand  for  materials  like 
steel,  copper  and  different  plastics.  Therefore,  the  European 
Copper  Institute  (ECI)  asked  KEMA  to  carry  out  a  cross 
analysis  study  of  incentive  schemes  in  different  EU  countries 
in the field of renewable energy (RE)  systems and distributed 
generation (DG). 
 EU - TARGETS
With  the  publication  of  the  EU­targets  the  EU 
wants  to  show  global  leadership  in  this  area.  This 
chapter  (deliverable)  will  provide  an  overview  of  the 
Kyoto  and  RE  (for  electricity)  targets  and  what  this 
means to each EU MS (i.e. EU­27). It is important to 
emphasize  that  the  years  for  which  the  targets  are 
set differ; this is caused by the fact that these targets 
are not agreed simultaneously.
 OVERVIEW OF DIFFERENT
TYPES OF DG / RENEWABLES
APPROACH AND RESULTS

For  this  deliverable  for  each  MS  a  1­2  page  fact  sheet  is 
composed  with  information  on  the  European  set  Kyoto,  RES 
and  RES­E  targets  for  each  country,  their  progress  so  far  and 
how they are planning to fulfill these targets nationally. To be 
able  to  show  this  information,  access  to  governmental  policies 
documents/data  was  required.  As  the  majority  of  these 
documents  are  only  written  in national  languages, we tried  to 
verify  the  information  with  national  energy  agencies.  They 
proved to be a very important source. 
DIFFERENT INCENTIVE SCHEMES
FOR PROMOTION OF DG /
RENEWABLES
It  was  the  aim  of  this  deliverable  to  provide  the 
description  of  the  following  incentive  scheme  for  the 
promotion of DG/ Renewable
ØFeed­in­tariff 
ØQuotas
ØTradable green certificate 
ØTendering and bidding system
ØFiscal and financial incentive 
 FEED - IN - TARIFF AND
PREMIUMS
Feed­in­Tariffs and premiums are used in 18. These schemes 
are granted to operators of eligible domestic renewable 
electricity plants for the electricity they feed into the grid. The 
preferential, technology­specific feed­in tariffs and premiums 
paid to producers are regulated by the government. Feed­in 
tariffs take the form of a total price per unit of electricity paid 
to the producers whereas the premiums (bonuses) are paid to 
the producer on top of the electricity market price.
 ADVANTAGES
AND
DIS - ADVANTAGES
 QUOTAS
A relatively new system is that of renewable 
obligations, also called quota obligations, where 
minimum shares of RES are imposed on 
consumers, suppliers or producers. The system 
is often combined with TGCs, although this 
does not necessarily have to be the case.
ADVANTAGES
AND
DIS - ADVANTAGES
CONCLUSION
 TRADABLE GREEN
CERTIFICATES ( TGCS )

ØADVANTAGES AND
DIS - ADVANTAGES

ØCONCLUSION
 TENDERING / BIDDING
SYSTEMS

ØADVANTAGES AND
DIS - ADVANTAGES

ØCONCLUSION
FISCAL AND FINANCIAL
INCENTIVES

ØADVANTAGES AND
DIS - ADVANTAGES

ØCONCLUSION
 MEANING OF
WAGE / COMPENSATION PAYMENT

Wage  is  a  monetary  payment  made  by  the  employer  to  his 
employee  for  the  work  done  or  services  sundered.  It  is  a 
monetary  compensation  for  the  services  rendered.  A  worker 
may be paid rs.100 per day or Rs.4500 per month.
Compensation payable to an employee includes the following 3 
parts/components:
ØBASIC COMPENSATION
ØINCENTIVE COMPENSATION
ØSUPPLEMENTARY COMPENSATION
 IMPORTANCE OF WAGE
PAYMENT TO EMPLOYER

Wage  payment  is  equally  important  to  employees  as 

their  profit  depends  on  the  total  wage  bill.  An 
employer in general, is interested in paying wages and 
thereby controls the costs of production. However, low 
wages  are  not  necessarily  economical.  In  fact,  they 
may prove to be too costly to the employer in the long 
run.
 IMPORTANCE OF WAGE
PAYMENT TO GOVERNMENT
Government also gives importance and attention to 
wages  paid  to  industrial  workers  as  industrial 
development,  productivity,  industrial  peace  and  the 
cordial labor management relation largely depends on 
the wage payment to workers. Government desires to 
gives  protection  to  the  working  class  and  for  his 
minimum wages act and other act are made.
 IMPORTANCE OF WAGE PAYMENT
TO EMPLOYEES
 Wages payment is important to all 
categories of workers. It is the income earned 
by hard work. It provides bread to the workers 
and his family members. Wages is a matter of 
life and death to workers/employees. Their life, 
welfare and even social status depend on the 
wage payment.
 FACTORS
INFLUENCING / DETERMINING
WAGE RATES
ØDemand and supply position in the 
employment/labourmarket:  
ØNature and feature of the job: 
ØCost of living: 
ØBargaining power of workers: 
ØEfficiency and productivity of work force: 
 PRINCIPLES OF WAGE AND
SALARY ADMINISTRATION

ØWage system should be just and reasonable
ØGuarantee of living wage
ØEasy to understand and simple to operate
ØFlexibility
ØPromptness in the wages payment
THANK -- YOU