Reward and Recognition

Policy

Version 2.0 Released by: Corporate HR

Date of Release: December 04, 2012
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 TABLE OF CONTENTS

1) POLICY AIM.............................................................................................................................. 3

2) OBJECTIVES ........................................................................................................................... 3

3) SCOPE .................................................................................................................................... 3

4) PRINCIPLES ............................................................................................................................ 3

5) ELIGIBILTY CRITERIA FOR REWARD & RECOGNITION ........................................................... 4

6) CATEGORIES OF REWARDS ................................................................................................... 4

1. DEPARTMENTAL / INDIVIDUAL LEVEL .............................................................................. 5

a) Thank You note / Certificate of Recognition................................................................. 5
b) Spot Awards .................................................................................................................. 5
c) Lunch with Divisional Heads / ED .................................................................................. 6
d) Value-able Award………………………………………………………………………………………………………6

2. DIVISIONAL & ORGANIZATIONAL LEVEL .......................................................................... 7

a) Divisional & Organizational Safety Award. ................................................................... 8
b) Divisional & Organizational Customer Service Award ................................................. 9
c) Divisional & Organizational Adarsh Award for the Power Trainee of the year ............ 9
d) Divisional & Organizational Kalpak Award for Power Suggestion .............................. 10
e) Organizational Chetana Award for Best Division on People / HR Practices……..…….. 10

3. PROCESS OF DIVISIONAL EXCELLENCE AWARDS………………………………………………………..11

4. PROCESS OF ORGANIZATIONAL EXCELLENCE AWARDS……………………………………………. 12

7) OTHER GUIDELINES ............................................................................................................. 13

Version 2.0 Released by: Corporate HR

Date of Release: December 04, 2012
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 Policy Aim
We at Tata Power believe that our people are our greatest assets and strategic partners in our
journey to achieve organizational objective. In furtherance of our stated philosophy, our Rewards
and Recognition Policy (R& R Policy) will help recognize superior performance at work in various
spheres.

Objectives

 To motivate and foster a productive work culture to achieve organizational objectives.

 To encourage employees to excel, take initiative, be creative and realize their latent potential
individually and as part of a team in contributing to the organization.

Scope

This Policy applies to any R&R schemes designed and implemented for Tata Power employees. This
policy defines the boundary conditions of reward and recognition schemes being implemented in the
organization. The approach and process should be consistent with these guidelines.

Principles

The four basic principles underlining the R&R policy are shown below:

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Date of Release: December 04, 2012
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 Eligibility Criteria for Reward & Recognition

At Tata Power, the Reward & Recognition Policy aims at recognizing the contribution/achievements
in the following suggested areas:

 Team building/Team contributions

 Exemplary Inter-departmental collaboration
 Outstanding performance in achieving departmental / divisional objectives
 Encouraging, contributing and participating in quality, innovation and knowledge
management initiatives
 Developing/demonstrating cost consciousness
 Demonstrating the organizational values SACRED
 Significant contribution in Safety, Health and Environment areas
 Exemplary customer focus and responsiveness to customer
 Contribution to building competencies of other employees
 Practices aimed at achieving Sustainability in all aspects
 Exemplary contribution in employee engagement, business excellence and community
engagement initiatives

Categories and Rewards

The awards and categories have been divided into following categories:

1. Individual / Departmental Level Awards

2. Divisional & Organizational Level Awards

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 INDIVIDUAL/DEPARTMENTAL LEVEL AWARDS

“Thank you Note” & “Certificate of Recognition”

Purpose: To appreciate any good work done by the employees
To be given by: Immediate Superior / sectional head / HOD
Criteria: Any good work done by employees
Frequency: As and when required
Process: • Immediate Superiors recognize the contribution
• The reward will be given on the spot

“Spot Awards (Departmental Level)”

Purpose: To recognize employees on an instantaneous basis and make them
feel that their work and ideas are recognized ‘on-the-spot’. This
award can be in the form of a Certificate with a memento.
Award: Mementos / Gift vouchers upto a value of Rs. 500, approved by
HOD, of a level of atleast Work Level MD2 (earlier WL: F2)
Mementos / Gift vouchers upto a value of Rs. 2000, approved by
HOD, of a level of atleast Work Level MB2 (earlier WL: D2)
To be given by: Reporting Manager/Sectional Head/HOD
Criteria: Outstanding contribution in day to day work, knowledge sharing,
good role model behavior
Frequency: As and when required
Process: •The reporting manager / Sectional Head/ HOD can nominate an
employee for getting this reward
•The award shall be given on the spot / in regular departmental
meeting.
•The expense for the award will be chargeable to the divisional
budget.

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 “Lunch with Divisional Heads/ED”
Purpose: To encourage employees to perform well and keep their morale high
by giving them timely recognition from respective Divisional Heads as
well as give them the opportunity to present their achievement to
Senior Management
To be given by: Divisional Head / Executive Directors
Criteria: Any significant achievement by an employee as verified by the
Divisional Head
Frequency: Quarterly / Bi-annually
Process: •The reporting managers shall put forward the nominations to
Departmental Heads & Divisional HR
•Departmental Heads along with the Divisional Head will select the
winners and lunch will be arranged by Divisional HR with Divisional
Heads/ED

“Value-able” Award
Purpose: In order to recognize and promote behaviour in line with the
Company’s core values
Award: Mementos / Gift vouchers upto a value of Rs. 500, approved by HOD,
of a level of atleast Work Level MD2 (earlier WL: F2)
To be given by: Sectional Head/HOD
Criteria: This award would be given to an employee who best demonstrates
exemplary behaviour in line with the core values of the Company
(SACRED – Safety, Agility, Care, Respect, Ethics & Diligence)
Frequency: As and when required
Process: •The reporting manager / Sectional Head/ HOD can nominate an
employee for getting this reward
•The award shall be given on the spot / in regular departmental
meeting.
•The expense for the award will be chargeable to the divisional
budget.

Reward and Recognition happening at a departmental level should be updated on the local Notice
Boards on a regular basis.

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Date of Release: December 04, 2012
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 DIVISIONAL & ORGANIZATIONAL LEVEL AWARDS

Customer
Service
Award

Kalpak Best Safety

Award for Practice /
Best Initiative
Suggestion Div & Org Award
Level
Awards

‘Adarsh’
Trainee Chetana
Award Award

Fig 1: Divisional & Organizational level awards

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 “Divisional Excellence Awards”
Purpose of the Award:
Divisional Excellence Awards seek to recognize exemplary contributions at the divisional level. This is an award
driven by at the divisional level, the winners of which will be recognized at the Organizational level.

Frequency: Annually

Categories: The various categories under which the Divisional Excellence Award will be given are:

 Best Safety Practice / Initiative Award

Divisional Organizational
Purpose:
Safety is a key business imperative whose importance cannot be emphasized
any further. The Excellence Award for Best Safety Practice/Initiative is
instituted with the aim of recognizing exemplary efforts with respect to
improving and institutionalizing safety.

Award:
Mementoes of upto Rs. 1000 +
Trophy + Certificate of
Recognition certificates to all members
Recognition for the Division
involved in the initiative / practice
To be given Divisional Head Senior Leaders at the Annual
by: Excellence Awards Function
Criteria: As given in Annexure I
Frequency: Annual
Process: As illustrated in Fig 2 As illustrated in Fig 3

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  Customer service Award

Divisional Organizational
Purpose: This award seeks to recognize commitment towards superior Customer
Service orientation and setting new benchmarks of Customer-centricity.
Award: Mementoes of upto Rs. 1000 + Trophy + Certificate of Recognition
Recognition certificates for the Division
To be given Divisional Head Senior Leaders at the Annual
by: Excellence Awards Function
Criteria: As given in Annexure II

Frequency: Annual
Process: As illustrated in Fig 2 As illustrated in Fig 3

 ‘Adarsh Award’ For the ‘Power Trainee’ of the year

Divisional Organizational
Purpose: This award is given to a trainee
 For demonstrating excellence in learning the work from the company
officials.
 For demonstrating good behavioral qualities and getting well along with
people.
 For demonstrating ability to apply theoretical concepts to real life
situations at the work place.
 The performance ratings that the trainee gets.
For participation in various company-wide initiatives.
Award: Memento / Voucher of Rs. 1000 + Trophy + Voucher of Rs. 3000 +
Recognition certificate Recognition certificate
To be given Divisional Head Senior Leaders at the Annual
by: Excellence Awards Function
Criteria: As given in Annexure III
Frequency: Annual
Process: As illustrated in Fig 2 As illustrated in Fig 3

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  Kalpak Award for the Best suggestion

Departmental / Divisional Organizational

Purpose: To encourage employees to come forth with suggestions that can result in
tangible benefits to the Company e.g. cost savings, operational efficiencies,
improved work place morale etc.
This award may be given to an individual or a team
Award: Spot Awards for suggestions as per the ‘Spot Award’
Trophy + Voucher
guidelines
of Rs. 3000 +
Kalpak award for Best suggestion at a Divisional
Certificate of
level – Memento / Voucher of Rs. 2000 + Certificate
Recognition
of Recognition
To be given Departmental / Divisional Head for Suggestion Spot
Senior Leaders at the
by: Awards
Annual Excellence
Divisional Head for Kalpak Best Suggestion in a
Awards Function
Division
Criteria: As given in Annexure IV
Frequency: Suggestions can be rewarded through Spot Awards
instantly
Annual
Kalpak Award for Best suggestion in Division at the
annual Divisional Excellence Awards function
Process: For the spot awards category, good suggestions may
be rewarded by the departmental / divisional head
directly as per the gifting guidelines given under the
As illustrated in Fig 3
‘Spot Awards’ category
For Kalpak Award for Best suggestion in Division,
process as illustrated in Fig 2

 “CHETANA AWARD’ for the Best Division on People/HR Practices (at an Org level)”

Organizational
Purpose: This award is instituted with the purpose of encouraging the divisions to
achieve high engagement levels, promote volunteerism, participation in
work related activities like QC, 5S etc and ensuring discipline
Award: Trophy + Certificate of Recognition for the Division
To be given by: Senior Leaders at the Annual Excellence Awards Function
Criteria: As given in Annexure V
Frequency: Annual
Process: As illustrated in Fig 3

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 Process of Divisional Excellence Awards:
Timelines
By Dec every year
Divisional Head to seek nominations as per categories defined
in R&R policy from all departments

By Dec every year

Division level Award committee to be setup by Divisional
Head

By Dec every year

Committee to evaluate the nominations received and declare
winners in each category

The list of winners in each category to be forwarded to By Dec every year

Corporate HR for consideration for Organizational Excellence
Awards

On a continuous
Capturing improvement feedback, if any, by divisional HR
basis

On a continuous
Improvement of process / policy, if required, to be done by basis
divisional HR in collaboration with Corp HR

Fig 2: Process of Divisional Excellence awards

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 Process of Organizational Excellence awards:
Timelines

By Jan every year

Formation of the Awards committee by Head-HR as a
cross-functional team (CFT) for the selection of awardees

By Feb every year

The winning entries from the Divisional Excellence Award
process to be evaluated by committee

By Feb every year

Decision on the final awardees by the Committee

At the annual Long

Service Award function
Winners to be felicitated on The Annual Awards Night

On a continuous
Capturing improvement feedback, if any, by divisional HR basis

On a continuous
Improvement of process / policy, if required, to be done basis
by Corp HR

Fig 3: Process of Organizational Excellence awards

Details of winners of all categories of Organizational Excellence Awards shall find a mention in
‘Enerji Talk’ and Sangam intranet portal

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Date of Release: December 04, 2012
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 General Guidelines

 The process of identifying, assessing and awarding should be communicated in

advance to all (Principle: Reward fairly with a defined objective). All relevant
employees must know the criteria before hand.

 The spontaneity of recognition (Principle: Reward in time) is very essential and it

should be as soon as the achievement or desired result is achieved.

 It is important to understand that behind every award there is recognition. But for
recognizing someone, a reward is not always necessary (Principle: Recognize efforts).

 It is recommended that recognition is done in the presence of employee’s peers,

colleagues and family.

 Wherever, the achievement is department specific, it is the responsibility of the Head

of the Department to plan and implement the R&R plan in conjunction with Divisional
HR. (Guidance may be sought from Corporate-HR if required).

 For all department level individual awards the Head of the Department shall ensure
documentation of the scheme and implementation and measuring effectiveness of the
same and shall share the same with Corporate-HR.

 Wherever usage of Company brand is involved such as certification or merchandise,

prior clearance from Corporate Communications is required.

 For any exceptional occurrence or any action in public domain, not covered specifically
by the above guidelines, should be taken in consultation with Corporate HR.

 Any exception of this policy requires the written approval of the Managing Director of
the Company.

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Date of Release: December 04, 2012
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