A reward emerges from the work performance itself when the work performer experiences sense of accomplishment on doing a good work. Extrinsic rewardsIt is a tangible reward that is provided to employees after the work performance such as pay increase, promotion etc. Designing of Incentive System Incentive system means many kinds of inducements offered to people to perform work, or to work up to or beyond acceptable standards.
A reward emerges from the work performance itself when the work performer experiences sense of accomplishment on doing a good work. Extrinsic rewardsIt is a tangible reward that is provided to employees after the work performance such as pay increase, promotion etc. Designing of Incentive System Incentive system means many kinds of inducements offered to people to perform work, or to work up to or beyond acceptable standards.
A reward emerges from the work performance itself when the work performer experiences sense of accomplishment on doing a good work. Extrinsic rewardsIt is a tangible reward that is provided to employees after the work performance such as pay increase, promotion etc. Designing of Incentive System Incentive system means many kinds of inducements offered to people to perform work, or to work up to or beyond acceptable standards.
work performance itself when the work performer experiences sense of accomplishment on doing a good work. e.g. sense of accomplishment, appreciation etc. • Extrinsic Rewards- It is a tangible reward that is provided to employees after the work performance such as pay increase, promotion etc. Designing of Incentive System • Incentive system means many kinds of inducements offered to people to perform work, or to work up to or beyond acceptable standards. • Financial Incentives Productivity –linked Incentives- Shop- floor level where outputs can be measured quantitatively Types of Productivity linked incentives • Earnings varying in proportion to output • Earnings varying Proportionately less than output • Earnings varying Proportionately more than output • Earnings varying Differently at different levels of output Performance Based Pay Profit Sharing Co-partnership Stock Option Under this scheme, employees are given shares of a company in such a way that they enjoy long-term benefits due to appreciation in share profits. There are two types of schemes: 3. ESOS: Employee Stock Option Scheme An employee is given an option to purchase shares at a future date at a pre-determined price which is either expressed in terms of percentage of the prevailing market price at the time of exercising the options or fixed in absolute value. Generally, the stock option scheme covers managerial personnel who meet certain specific conditions. Like position held, length of service and performance. • ESPS: Employee Stock Purchase Scheme: In this the employees are offered shares at discounted price to market rate, the discount varies to a great extent. Under this scheme the shares have a lock in period and the shares are saleable after the lock-in period. Retirement Benefits • Provident Fund Scheme: Under the provisions of Employees Provident Fund and Miscellaneous Provisions Act, the employer has to contribute 8.33 percent of wages/ salaries of employees every month. The employees make equal contribution though the are permitted to more if they so desire. • Pension Scheme: A pension represents the payment of a fixed amount to a retired employee or surviving dependants every month provided the employee has fulfilled certain specific conditions of employment. • Gratuity: This payment is regulated by the Payment of Gratuity Act, 1972. Under this Act, gratuity is payable to all employees after the termination of their services by way of their retirement or resignation provided they have completed 5 years of continuous services. The gratuity is payable at the rate of 15 days wages/salaries for each year of completed service subject to a max limit of Rs. 3.5 lakh. Non-Financial Incentives • Status • Promotion • Responsibility • Making Job Pleasant and Interesting • Recognition of Work • Job Security Collective Incentives • Social Importance of work • Team Spirit • Informal Groups Job Design Job Design: It integrates work content (tasks, functions, relationships), the rewards ( extrinsic and intrinsic ) and the qualifications required (skills, knowledge, abilities) for each job in a way that meets the needs of employees and the organization. Motivational Job Design • Job Simplification • Job Rotation • Job Enlargement • Job Enrichment Quality of Work Life Quality of work Life is concerned about the impact of work on people as well as on organization effectiveness and the idea of participation in organizational problem solving and decision making. Flexibility in work schedule Autonomous work groups Job enrichment Opportunity for Growth Participation Communication Empowerment Empowerment is any process that provides greater autonomy through the sharing of relevant information and the provision of control over factors affecting job performance. Effects of QWL • Job involvement • Sense of competence • Job satisfaction • Job performance and productivity Job Satisfaction Job satisfaction is the amount of pleasure or contentment associated with a job. If you like your job intensely, you will experience high job satisfaction. If you dislike your job intensely, you will experience job dissatisfaction. Determinants of Job satisfaction Individual factors • Level of Education • Age • Other factors Nature of Job • Occupation Level • Job content Situational Variables • Working conditions • Supervision • Equitable Rewards • Opportunity for Promotion • Work Group