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    The document discusses various reward strategies used by organizations. It outlines intrinsic and extrinsic factors that can motivate employees. Extrinsic rewards discussed include financial compensation like bonuses, incentives, and commissions as well as non-financial benefits like flexible time and preferred work arrangements. The objectives of wage administration including attraction, retention, and desired behaviors are also covered. Different types of stock options and employee stock ownership plans are presented as long-term incentives to motivate performance and retention.

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    Lec-1 Reward Strategies

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    The document discusses various reward strategies used by organizations. It outlines intrinsic and extrinsic factors that can motivate employees. Extrinsic rewards discussed include financial compensation like bonuses, incentives, and commissions as well as non-financial benefits like flexible time and preferred work arrangements. The objectives of wage administration including attraction, retention, and desired behaviors are also covered. Different types of stock options and employee stock ownership plans are presented as long-term incentives to motivate performance and retention.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    13 views19 pages

    Reward Strategies: Presented by

    Uploaded by

    get_raj21
    The document discusses various reward strategies used by organizations. It outlines intrinsic and extrinsic factors that can motivate employees. Extrinsic rewards discussed include financial compensation like bonuses, incentives, and commissions as well as non-financial benefits like flexible time and preferred work arrangements. The objectives of wage administration including attraction, retention, and desired behaviors are also covered. Different types of stock options and employee stock ownership plans are presented as long-term incentives to motivate performance and retention.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
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    of 19

    Reward Strategies

    Presented By: Devdatt.Tiwari

    REWARD STRATEGIES

    Elements

    Compensation

    / remenuration place in reward strategy


    Compensation

    structure

    Introduction

    Efforts

    Performance
    Individual goals

    Organization goals
    Rewards

    Types of Rewards (Benefits)


    INTRINSIC ( from job itself)
    EXTRINSIC (from Management)

    Extrinsic factors
    Financial Performance based Piece work Incentive Commission Performance bonus Merit pay Financial Membership based Basic pay D.A HRA Protection program Pay for time not worked Non-Financial Preferred office furnishing Flexible time Preferred leave Own secretary Impressive job title Conveyance Medical care

    Structure of Rewards
    Balancing intrinsic & extrinsic rewards is the key!!! Wage Salary Earning Nominal wage Take home salary Minimum wage Living wage Fair wage Incentive wage Wage rate

    Objectives of Wage/Salary Administration


    Attraction Retention Equity Desired behavior To keep cost in line Image Collective bargaining

    Significant goals driving pay & reward changes

    Mechanism of wage & salary administration


    Wage theories ( Bargaining theory & Contribution of Behavioral science) Job evaluation Factors affecting wage/salary - competition - Ability to pay - Cost of living - Productivity - Union - Govt. legislations

    Wage fixation institute in India

    Wage board Pay commission

    Bonus
    Bonus (Important provisions) - 60% of surplus - Bonus = Pay+DA - Rs.1600/- ceiling now Rs.2500/- Fraud, theft by employees - Set off - Set on

    Managerial compensation
    Mumbai = Ceiling Rs.62,700/ Mumbai = Salary 45% of salary, Cooking gas/Power 10% of salary, Pensionary benefits 25% of salary Medical expenses 3 months salary

    Above is ceiling for Managers/ Directors

    Fringe benefits

    Defn: - Benefits on & above the regular wages. - These are those monetary & nonmonetary benefits given to employees during & post employment period which are connected with employment but not to the employees contribution to the organization.

    Need / Objective of Fringe benefits

    Types of Fringe benefits


    As per Dale Yoder, he has classified it into 4 heads For employment security For health protection For old age & retirement Personnel identification, stimulation In Indian context: Payment for time not worked Employee security Safety & health Welfare & recreational facilities Old age / Retirement Non-financial benefits

    Stock Options (Golden Handcuffs)


    1. 2. 3. 4. 5. 6. 7. 8. 9. 10.

    BENEFITS :Motivational Ownership sharing Productivity increase Profit increase Employee benefit plan Partnership role leads to stock price rise Success share It is a productivity incentive It is a popular & effective way to pay for the performance of employees & managers Eg:

    It is a retaining tool 11. Long term incentive 12. Attraction tool 13. Corporate culture

    Types Of Stock plan


    Stock price appreciation plan & rights Stock purchase Phantom stock Restricted stock / Cash plans Performance based plans ESOP

    Employee stock ownership plans


    Meaning Advantages : 1. During retirement 2. Capital appreciation 3. Incentive based 4. Reduction in taxes 1. 2. 3. 4.

    Disadvantages: Liquidity Performance of stock Accountability of fiduciaries Dilution

    Thank you

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