2. Allocation of an incentive fund to grant
incentives to deserving employees.
Principles in giving incentives are
accountability
minimum number/qualification of awardees
allocation of savings
levels and areas of awards
traceability or proper documentation
proportionality of incentives to contributions
timeliness of the awards and
exclusivity from other awards
To ensure accountability & proportionality, a scheme
on the allocation of incentives based on contribution
to achievement of corporate objectives is proposed
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3. Frederick Hertzberg theory says :
Giving people incentives will cause them to act in desired
ways that meet organizational goals
4. One of the things that employees want
from a job is money and the things it
will buy
Money is a good motivator but not the
most effective motivator
Money motivates most in times of
great financial need
5. The motivation to achieve excellent performance
increases as the value employees place on
rewards and their individual abilities/contributions
also increase
6. People behave as they do because of the kind of
consequences they experienced as a result of
their behavior
9. Distinct evaluation criteria
Minimum number of contenders
Incentives only for those with exemplary performance
Threshold earnings/revenue or savings shall be net of expenses i.e.
manpower, overtime, assets/resources used.
Minimum number for award of academic excellence since such
achievement is already a reward by itself
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10. Sports award limited to industry level competitions
Excellent frontline services must be rewarded
Unwavering devotion & commitment to duty means risk to life &
limb must be promptly rewarded
Exclude areas with new facilities as a separate category in an
award if others do not have them
Environment compliance criteria must be excluded
Special awards to be conferred to teams or individuals
contributing to tangible corporate savings, for heroic deeds,
innovative ideas, excellence in education, sports, culture, arts &
literature.
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11. Formulation of selection criteria/evaluation
procedures
Receipt of nominations/recommendations
Assessment, validation and evaluation of award
eligibility
Conduct of ocular inspections/audits
Recommendation of awardees for various award
categories
Preparation of report on results of deliberations
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12. Key Success Factors Quantified Benefits Priority
Number
Percent (%)
Allocation
Sales Improvement Improved income 1 13
Efficiency Improvement Realized savings 2 12
Reliability Better public image 3 11
Service Quality Minimized loss 4 10
Safety Improvement/Zero Accident Reduced expenses 5 9
Process Improvement Reduced backlogs 6 9
Consumer Welfare Better public image 7 8
13. Key Success Factors Quantified Benefits Priority
Number
Percent (%)
Allocation
Cost to Spend Ratio Reduced expenses 8 7
Availability Greater productivity 9 6
Quality Workforce Less faulty actions 10 5
Timeliness Increased revenue 11 4
Capacity Addition Market expansion 12 3
E-governance Reduced expenses 13 2
Professionalism Less corruption 14 1
Total 100%
14. Giving incentives to excellent performance
can be done
Proposed Incentive Allocation Scheme is
difficult to implement but the amount of
reward may be set differently by companies
depending on their financial capability and HR
philosophy
There is a need to improve the selection
criteria and make the cash awards more
effective motivators.
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