The document discusses different types of payment and reward systems. It categorizes rewards as intrinsic or extrinsic, financial or non-financial, and performance-based or membership-based. Some examples of intrinsic rewards include increased responsibility and interesting work. Extrinsic financial rewards include piece-rate pay, commissions, bonuses, and merit pay. Non-financial extrinsic rewards include preferred work assignments, parking spaces, and titles. Effective rewards are individualized, equitable, visible, flexible, and low-cost. Popular criteria for distributing rewards include performance, effort, seniority, skills, job difficulty, and discretionary time.

1. PAYMENT AND REWARD SYSTEMS
Presentation
by
Prof.M.S.S.Varadan
Chairman
Om Consultants (India) Pvt. Ltd.
C O N S U L T A N T S
U N L O C K IN G P EO PL E P O T E N T I A L

2. Rewards can be classified as
• Intrinsic or extrinsic
• Financial or non-financial
• Performance-based or membership-
based
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P EO P L E P O T E N T I A L 2

3. Rewards
• Intrinsic
o Participate in decision making
o Greater job freedom and discretion
o More responsibility
o More interesting work
o Opportunities for personal growth
o Diversity of activities
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P EO P L E P O T E N T I A L 3

4. Rewards
• Extrinsic
o Financial
 Performance-based
– Piecework
– Commission
– Incentive plans
– Performance bonuses
– Merit pay plans
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P EO P L E P O T E N T I A L 4

5. Rewards
• Extrinsic
o Financial
 Implied membership-based
– Cost-of-living increase
– Labor market adjustment
– Time-in-rank increase
– Profit sharing
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P EO P L E P O T E N T I A L 5

6. Rewards
• Extrinsic
o Financial
 Explicit membership based
– Protection programs
– Pay for time not worked
– Services and perquisites
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P EO P L E P O T E N T I A L 6

7. Rewards
• Extrinsic
o Non-financial
 Preferred office furnishings
 Preferred lunch hours
 Assigned parking spaces
 Preferred work assignments
 Club membership
 Holidays abroad
 Impressive titles
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P EO P L E P O T E N T I A L 7

8. Effective rewards are
• Individualized to reflect differences in
what employees consider important
• Perceived as equitable
• Visible
• Flexible
• Allocated at a relatively low cost
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P EO P L E P O T E N T I A L 8

9. Popular criteria that influence the
distribution of rewards are
• Performance
• Effort
• Seniority
• Skills held
• Job difficulty
• Discretionary time
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U N L O C K IN G
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P EO P L E P O T E N T I A L 9

10. Popular criteria that influence the
distribution of rewards are
• Performance
• Effort
• Seniority
• Skills held
• Job difficulty
• Discretionary time
C O N S
U N L O C K IN G
U L T A N T S
P EO P L E P O T E N T I A L 9