Reward management ( part 2 )

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Reward management ( part 2 )

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Reward management ( part 2 )

  1. 1. Rewarding People Min Khaung ( EMPA – 8 )
  2. 2. TYPES OF REWARDS • Intrinsic Rewards • Extrinsic Rewards 2 Min Khaung ( EMPA - 8 )
  3. 3. INTRINSIC REWARDS • Intrinsic rewards may include praise for completing a project or meeting performance objectives. • Other psychological and social forms of compensation also reflect intrinsic type of rewards. 3 Min Khaung ( EMPA - 8 )
  4. 4. INTRINSIC REWARDS • A Friendly Place • There isn’t much Politics Around Here • You Get a Fair Shake • Feel Like Family – A Caring, Nurturing Environment – A Long Term Commitment – We are all in it 4 Min Khaung ( EMPA - 8 )
  5. 5. EXTRINSIC REWARDS • Tangible and take both monetary and nonmonetary forms. • One tangible component - direct compensation, ( Base pay and variable pay ) • Indirect compensation commonly consists of employee benefits. 5 Min Khaung ( EMPA - 8 )
  6. 6. TYPES OF COMPENSATION • Base Pay - The basic compensation that an employee receives, usually as a wage or a salary. • Variable Pay - Another type of direct pay is variable pay, which is compensation linked directly to individual, team, or organizational performance • Benefits - indirect reward for instance, health insurance, vacation pay, or a retirement pension— given to an employee or a group of employees for organizational membership, regard-less of performance. 6 Min Khaung ( EMPA - 8 )
  7. 7. PAY • Pay Leader ? • Pay Follower ? 7 Min Khaung ( EMPA - 8 )
  8. 8. RECOGNIZING EMPLOYEE CONTRIBUTIONS WITH PAY • Incentive Pay • Pay for Individual Performance • Pay for Group Performance • Pay for Organizational Performance • Incentive Pay for Executives 8 Min Khaung ( EMPA - 8 )
  9. 9. CRITERIA FOR SUCCESS ( 1 ) Individuals should have a clear line of sight between what they do and what they will get for doing it. EFFORT PERFORMANCE RESULT MEASURE PAYMENT 9 Min Khaung ( EMPA - 8 )
  10. 10. CRITERIA FOR SUCCESS ( 2 ) Rewards are worth having. ( 3 ) Fair and consistent means are available for measuring or assessing performance, competence, contribution or skill. ( 4 ) People must be able to influence their performance by changing their behavior and developing their competences and skills. ( 5 ) The reward should follow as closely as possible the accomplishment that generated it. 10 Min Khaung ( EMPA - 8 )
  11. 11. 1. INCENTIVE PAY • The pay plans must be well designed. • Effective plans meet the following requirements: – Performance measures are linked to the organization’s goals. – Employees believe they can meet performance standards. – The organization gives employees the resources they need to meet their goals. – Employees value the rewards given. – Employees believe the reward system is fair. – The pay plan takes into account that employees may ignore any goals that are not rewarded. 11 Min Khaung ( EMPA - 8 )
  12. 12. 2. PAY FOR INDIVIDUAL PERFORMANCE • Piecework rates – Straight Piecework Plan – Differential Piece Rates • Standard hour plans • Merit pay • Individual bonuses • Sales commissions 12 Min Khaung ( EMPA - 8 )
  13. 13. 3. PAY FOR GROUP PERFORMANCE • Gain sharing – Management commitment. – Need for change or strong commitment to continuous improvement. – Management acceptance and encouragement of employee input. – High levels of cooperation and interaction. – Employment security. – Information sharing on productivity and costs. – Goal setting. 13 Min Khaung ( EMPA - 8 )
  14. 14. 3. PAY FOR GROUP PERFORMANCE – Commitment of all involved parties to the process of change and improvement. – Performance standard and calculation that employees understand and consider fair and that is closely related to managerial objectives. – Employees who value working in groups. • Bonus ( Group Bonus ) • Team Awards 14 Min Khaung ( EMPA - 8 )
  15. 15. 4. PAY FOR ORGANIZATIONAL PERFORMANCE • Profit Sharing • Stock Ownership – Stock Options – Employee Stock Ownership Plans 15 Min Khaung ( EMPA - 8 )
  16. 16. 5. INCENTIVE PAY FOR EXECUTIVES • Short Term Incentives - bonuses based on the year’s profits, return on investment, or other measures related to the organization’s goals. • Long Term Incentives - stock options and stock purchase plans 16 Min Khaung ( EMPA - 8 )
  17. 17. THE ROLE OF EMPLOYEE BENEFITS • benefits serve functions similar to pay. • Benefits contribute to attracting, retaining, and motivating employees. • Different employees look for different types of benefits. • Employers need to communicate effectively so that the benefits succeed in motivating employees 17 Min Khaung ( EMPA - 8 )
  18. 18. STRATEGIC BENEFITS CONSIDERATION • Competitive Advantage • Workforce Attraction & Retention • Benefit Management & Communication – Benefit Design – Benefit Administration – HR Technology and Benefits – Benefit Measurement – Benefit Cost Control – Communication to Employees 18 Min Khaung ( EMPA - 8 )
  19. 19. TYPES OF BENEFIT • Government Mandated Benefit • Employer Voluntary Benefit 19 Min Khaung ( EMPA - 8 )
  20. 20. GOVERNMENT MANDATED BENEFIT • Social Security • Annual Leave, Medical Leave, Maternity Leave • Gazetted Holiday • Working Hour • Overtime Benefit 20 Min Khaung ( EMPA - 8 )
  21. 21. SOCIAL SECURITY BENEFIT ( Myanmar ) • Health and Social Care Insurance System: • Family Assistance Insurance System: • Invalidity Benefit, Superannuation Pension Benefit and Survivors’ Benefit Insurance System: • Unemployment Benefit Insurance System: • Other Social Security System: 21 Min Khaung ( EMPA - 8 )
  22. 22. EMPLOYER VOLUNTARY BENEFIT ( 1 ) Security Benefit ( 2 ) Health-Care Benefit ( 3 ) Retirement Benefit ( 4 ) Financial Benefit ( 5 ) Family Benefit or Family Oriented Benefit ( 6 ) Time-off Benefit ( 7 ) Miscellaneous Benefit 22 Min Khaung ( EMPA - 8 )
  23. 23. ( 1 ) SECURITY BENEFIT – Workers Compensation – Unemployment Compensation – Severance Pay 23 Min Khaung ( EMPA - 8 )
  24. 24. ( 2 ) HEALTH-CARE BENEFIT • Medical Check up Min Khaung ( EMPA - 8 ) 24
  25. 25. ( 3 ) RETIREMENT BENEFIT Non-contributory Plan Contributory plan Employee Provident Fund Min Khaung ( EMPA - 8 ) 25
  26. 26. ( 4 ) FINANCIAL BENEFIT Insurance • • • • • Health Life Disability Long-term care Legal Financial Services Educational Assistance • Credit Union • Purchase Discount • Thrift/savings Plans • Financial Planning • Relocation Assistance • Tution Aid • Trade Training • Professional certifications • Learning Materials 26 Min Khaung ( EMPA - 8 )
  27. 27. ( 5 ) FAMILY BENEFIT OR FAMILY ORIENTED BENEFIT • Family & Medical Leave Act ( FMLA ) • Family Care Benefit • Benefit for Domestic Partner 27 Min Khaung ( EMPA - 8 )
  28. 28. ( 6 ) TIME-OFF BENEFIT • Holiday Pay • Vacation Pay • Leaves of Absence • Paid Time-off Plan 28 Min Khaung ( EMPA - 8 )
  29. 29. ( 7 ) MISCELLANEOUS BENEFITS • Social & Recreational Benefit 29 Min Khaung ( EMPA - 8 )
  30. 30. 30 Min Khaung ( EMPA - 8 )

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