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incentives and remuneration

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Remuneration, Types of remuneration, Compensation’s, Employees Benefits
Commission, Performance linked incentives and
Incentives , Types of incentives , Financial incentives , Methods of Financial incentives i) Price rate system
ii) cent percent system
Non-financial incentives

Published in: Business, Economy & Finance

incentives and remuneration

  1. 1. INCENTIVES AND REMUNERATIONS PRESENTATION TOPIC DEPARTMENT OF INDUSTRIAL ENGINEERING & MANAGEMENT MUET JAMSHORO , SINDH
  2. 2. PRESENTATION GROUP <ul><li>MOHAMMAD YOUNUS (G.L) </li></ul><ul><li>(08IN70) </li></ul><ul><li>UMAIR ARSHAD (08IN01) </li></ul><ul><li>WAZIR AHMED (08IN64) </li></ul><ul><li>HARIS KHAN (08IN60) </li></ul><ul><li>MOHAMMAD AKRAM (08IN69) </li></ul>
  3. 3. <ul><li>Remuneration </li></ul><ul><li>Types of remuneration </li></ul><ul><li>Compensation’s </li></ul><ul><li>Employees Benefits </li></ul><ul><li>Commission </li></ul><ul><li>Performance linked incentives </li></ul>
  4. 4. <ul><li>Incentives </li></ul><ul><li>Types of incentives </li></ul><ul><li>Financial incentives </li></ul><ul><li>Methods of Financial incentives </li></ul><ul><li>i) Price rate system </li></ul><ul><li>ii) cent percent system </li></ul><ul><li>Non-financial incentives </li></ul><ul><li>Questions and Answers </li></ul>
  5. 5. GROUP LEADER <ul><li>MOHAMMAD </li></ul><ul><li>YOUNUS </li></ul><ul><li>08IN70 </li></ul>
  6. 6. REMUNERATION <ul><li>Remuneration is a payment or compensation received for service or employment. This includes the base salary and any bonus or other economic benefits that an employee or executives received during employment. </li></ul><ul><li>Or </li></ul><ul><li>Remuneration is traditionally seen as the total income of an individual and may comprises a range of separate payments determined according to different rules. </li></ul>
  7. 7. <ul><li>1) COMPANSATION </li></ul><ul><li>It is of two types </li></ul><ul><li>Executives Pay </li></ul><ul><li>Executive pay is the total pay or financial compensation an executive offer within the co-corporation salary, and all bonuses, shares, options and any other company benefits. </li></ul>TYPES OF REMUNERATION (Cnts….)
  8. 8. <ul><li>Deferred Compensation </li></ul><ul><li>It is an arrangement in which a portion of an employee’s income is paid out at a date after which that income is actually earned. </li></ul><ul><li>Example of deferred compensation includes pensions, retirement plans and stock options. </li></ul>TYPES OF REMUNERATION (Cnts….)
  9. 9. <ul><li>Some of these benefits are </li></ul><ul><li>housing ( employer provided or employer- paid ) </li></ul><ul><li>group insurance ( health, dental, etc). </li></ul><ul><li>disability income protection. </li></ul><ul><li>retirement benefits. </li></ul><ul><li>tuition reimbursement. </li></ul><ul><li>sick leave. </li></ul><ul><li>vacation ( pad and not paid). </li></ul><ul><li>social security. </li></ul><ul><li>funding of education etc…. </li></ul>TYPES OF REMUNERATION (Cnts….) 2) EMPLOYEE BENEFITS Employee benefits are various non-wage compensation provided to employees in addition to their wage and salaries
  10. 10. GROUP MEMBER <ul><li>UMAIR </li></ul><ul><li>ARSHAD </li></ul><ul><li>08IN01 </li></ul>
  11. 11. <ul><li>COMISSION </li></ul><ul><li>The payment of commission as remuneration for service rendered or product sold in a common way to reward sales people. </li></ul>TYPES OF REMUNERATION (Cnts….)
  12. 12. <ul><li>5) PERFORMANCE LINKED INCENTIVES (PLI) </li></ul><ul><li>A performance linked incentives is a form of payment from an employer to an employees which is directly related to the performance output of an employee and which may be specified on an employment contact. </li></ul>TYPES OF REMUNERATION (Cnts….)
  13. 13. INCENTIVES <ul><li>Incentive is a reward monetary or non-monetary </li></ul><ul><li>Incentive given to a worker for his efficiency and hard work. </li></ul><ul><li>An incentive motivates and encourages a worker. </li></ul><ul><li>Incentive and production are closely related with each other. </li></ul>
  14. 14. GROUP MEMBER HARIS KHAN 08IN60
  15. 15. TYPE’S OF INCENTIVES INCENTIVES NON-FINANCIAL INCENTIVES FINANCIAL INCENTIVES
  16. 16. FINANCIAL INCENTIVES <ul><li>It involves direct monetary payments or benefits to workers. </li></ul><ul><li>It is as a tool for better productivity and performance. </li></ul><ul><li>workers may receive financial benefits in the form </li></ul><ul><li>a) bonuses </li></ul><ul><li>b) profit sharing </li></ul>
  17. 17. METHODS OF FINANCIAL INCENTIVES <ul><li>There are various methods of measuring the financial incentives but here we are concerned with the following; </li></ul><ul><li>a ) Piece rate system </li></ul><ul><li>b ) Cent percent premium </li></ul>Cent Percent Premium Methods of Financial incentives Piece Rate System
  18. 18. GROUP MEMBER WAZIR AHMED 08IN64
  19. 19. <ul><li>Under this system, a piece rate for the completion of job is fixed. Now if a worker completes the job earlier, he can save his time. In this time he can make jobs and get extra money for his extra work </li></ul><ul><li>Earning of a worker = no. of pieces produced * rate per piece </li></ul>PIECE RATE SYSTEM
  20. 20. Cent Percent premium <ul><li>In this system the standard time for completion of the job is fixed </li></ul><ul><li>rate of completion during this period is also fixed. </li></ul><ul><li>Now the worker who completes the job earlier they get full payment for the time saved. </li></ul>
  21. 21. GROUP MEMBER MOHAMMAD AKRAM 08IN69
  22. 22. Non- Financial Incentives <ul><li>The financial incentives must be supported by the non-financial incentives </li></ul><ul><li>Only cash wages cannot help in solving the problems of the workers </li></ul><ul><li>Non financial incentives play an important role in maintaining better production and efficiency in an organization. </li></ul>
  23. 23. Non- Financial Incentives (cnts.) <ul><li>Some of the chief Non-financial incentives are: </li></ul><ul><li>Security of service. </li></ul><ul><li>Opportunity for training. </li></ul><ul><li>Chances of Quick Promotion. </li></ul><ul><li>Personal Reward. </li></ul><ul><li>Welfare Measures. </li></ul><ul><li>Sympathetic Attitude of the Management. </li></ul>
  24. 24. <ul><li>THANK YOU……………. </li></ul><ul><li>QUESTION ???????? </li></ul>

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