This document discusses compensation and benefits packages offered by two large Indian companies, Aditya Birla Group and HCL. It outlines some of the key components of their compensation packages, including bonuses, long-term incentives like stock options, health insurance, work-life balance policies, and life insurance benefits. The document provides examples of different types of bonuses and incentive programs that companies use to reward and motivate employees.

1. Assignment
On
Performance Management
(New Innovative Ways of Compensation)
Submitted to: Submitted by:
Respected Nidhi mam Manish
Assistant professor(UILMS) Roll No-602
MBA 2nd Year

2. Defination
something (such as money) given or received as payment or reparation, or can refer to;
Damages-
Legal term referring to the financial compensation recoverable by reason of another's breach of
duty; the money paid or awarded to a plaintiff.
Workers compensation-
Is a payment provided to employees when they injured while at works.
Remuneration-
Is pay or salary, typically monetary payment for services rendered, as in an employment. Usage
is considered formal.
Executive compensation-
Is how top executives of business corporations are paid. This includes a basic salary, bonuses,
shares, options and other company benefits for work on the board of directors.
Deferred compensation-
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.
Example of Deferred Compensation; PENSION, RETIREMENT PLAN.
Introduction
A key to attracting and keeping satisfied workers is to ensure they feel they are receiving fair and
unbiased compensation for the work that they do. This does not mean that the highest paid
employees are necessarily the most satisfied employees; in fact, their wages are just one part of
the equation. There are a host of other direct and non-monetary benefits that can complete the
total compensation package you are able to offer your employees.
Employers are using a variety of formal benefits, such as health insurance and retirement saving
plans. Examples of innovative and non-monetary benefits, such as flex-time and worksharing,
are also growing. In all cases, the compensation and benefits you offer must be meaningful to
each individual employee if it is to be effective in keeping your workers motivated and working
for you.

3. A compensation package is the combination of benefits that an employer offers to employees.
This may include wages, insurance, vacation days, guaranteed raises, and other perks. Strong
compensation packages are often used to attract and keep good employees, and to promote
certain company values. A business that does not pay the highest wages may still be competitive
by offering free or inexpensive childcare to employees
Almost every compensation package includes consistent wages or salary. This may include a
guarantee of regular increased on the cost of living, time with the company, or the job
performance of the individual
Incentive programs
Incentive programs are another way of rewarding employees who perform well. The added
benefit for you as an employer is that this expense is only incurred if the company has seen
additional benefits, either in the quality of service or in direct extra profits from production.
Many employees appreciate incentives more than the base pay.
Most incentive programs have a cash-cost to them, but that is not always the case. The following
are descriptions of some of the common types of incentive programs employers offer:
Profitsharing
Employees share in the profits of the company, thus directly benefiting from their company’s
success. The better a company does, the more benefits individual employees will gain so there is
a real incentive for employees to perform well and to encourage co-workers to perform well too.
Profit sharing, sometimes referred to as gain sharing, results in win-win situations for a business
and its employees.
SpotBonus
One form of spot bonus is referred to as “intrapreneuring.” In these cases, employees are
provided with a special incentive for coming up with new ideas that save the company money or
increase its revenues. Other forms of spot bonuses may be provided for taking special safety
precautions, providing outstanding customer service or performing other acts that are important
to the company. This type of bonus could be cash, gift certificates, passes or access to special
training programs of the employee’s choice, etc.
RecognitionPrograms
These types of programs are usually geared to boosting the morale of employees. Some
examples are “Employee of the Month” or “Hardest Worker.” Sometimes employers also
provide a day off, a special parking space for a period of time, or the right to have the
performance mascot in their work area.
Sign-onBonus
This bonus is for new employees who sign a contract with the company. This is meant to

4. establish goodwill and buy out any remaining compensation the employee might have had with
another company.
Milestone Bonus
Milestone bonuses are used to recognize an achievement such as completing a huge project or
length of service. Some examples are:
taking a project team to a movie or dinner;
Gift certificates for an employee and his/her family after a special assignment;
5-year service plaques.
Referral Bonus
When employers are having trouble finding workers, one of the best sources of referral is from
present employees. Providing a bonus to employees who refer successful candidates for hiring is
a very inexpensive approach to recruiting. Current employees are unlikely to refer people who
are not willing or able to do the work, as it will mean more work for them.
Holiday Bonus
Holiday bonuses usually come around the Christmas holiday season or the end of the year. They
can range from small gifts to one month’s salary.
Sales Commission
Commission occurs when an employee sells something. The reward is a certain percentage of the
total volume. It can range from 0-50% of the sale.

5. ADITYA BIRLA GROUP
About the company
Aditya Birla Group, a $28 billion enterprise is one of India's oldest business establishments.
Started in 1857, the group today has wide range of business interests. Headquartered in Mumbai,
the group has presence in more than 25 countries. More than 50 percent of the group's revenue
comes from overseas operations. It has a presence in 15 industrial sectors and ownership of over
40 companies. Of these four are the group companies, seven wholly owned firms operating only
in India, 25 are international firms and four joint ventures. All these companies are spread across
sectors like in aluminium, BPO, carbon black, cement, chemicals, copper, fatty acids/ fatty
alcohol, fertilisers, finance and insurance, insulators, mining, retail, software, telecom and
textiles. Grasim Industries Ltd, Hindalco Industries Ltd, Aditya Birla Nuvo Ltd and UltraTech
Cement Ltd are the four group companies under which all other companies operate.
Bonuses:
Some companies offer a signing bonus or a yearly incentive bonus. Profit sharing is
one way this is offered.
Long-Term Incentives:
These are often stock options or grants.
Contests:
Incorporating a reward into some sort of contest that builds anticipation and
momentum for attaining certain sales goals is another way to motivate your sales associates.
While it is important to allow employees to excel and to be recognized for their individual
achievements, contests that focus on promoting the efforts of the group entice people to work
together because it rewards all of them if the goals are met.
A poorly conceived contest with unrealistic goals can do more harm than good, lowering morale
and reflecting negatively on management. A program that is done well can create loyalty,
increase sales and build camaraderie.
Health Insurance:
Some companies provide better health plans than others.
Medical assistance program:
The Medical Assistance Program and the Medical Benefit
Scheme cover you, your spouse and your children and is a reimbursable amount. You will also be
eligible for the Catastrophic Medical Assistance Plan and Mediclaim benefits

6. Work-Life Balance:
To give you a perfect balance of work and life, Aditya birla group has
initiated elements like paid holidays, maternity benefit with extended leave of absence and
sabbaticals
You are also encouraged to be a part of our various Corporate Social Responsibility campaigns
under the banner 'aditya group'
.
Life and disability insurance coverage:
Aditya birla group team members enhanced financial security during times of uncertainty. All
team members have Basic Life Insurance coverage, and Supplemental Life Insurance can be
purchased at group rates for you, your spouse and your children. Aditya group also offers Will
Preparation Services and several insurance coverage plans for additional protection:
Accidental Death and Dismemberment
Insurance
Business Travel Accident Insurance
Short-term Disability Coverage
Long-term Disability Coverage

7. HCL
About the company
The 35 year old enterprise, founded in 1976, is one of India's original IT garage start ups. Its
range of offerings span R&D and Technology Services, Enterprise and Applications Consulting,
Remote Infrastructure Management, BPO services, IT Hardware, Systems Integration and
Distribution of Technology and Telecom products in India. The HCL team comprises 90,000
professionals of diverse nationalities, operating across 31 countries including 505 points of
presence in India. HCL has global partnerships with several leading Fortune 1000 firms,
including several IT and Technology majors.
Life insurance:
Full life insurance cover by company
Cell phone:
Provide free cell phone facility.
Referral Bonus:
When employers are having trouble finding workers, one of the best sources of
referral is from present employees. Providing a bonus to employees who refer successful
candidates for hiring is a very inexpensive approach to recruiting. Current employees are
unlikely to refer people who are not willing or able to do the work, as it will mean more work for
them.
SpotBonus
One form of spot bonus is referred to as “intrapreneuring.” In these cases, employees are
provided with a special incentive for coming up with new ideas that save the company money or
increase its revenues. Other forms of spot bonuses may be provided for taking special safety
precautions, providing outstanding customer service or performing other acts that are important
to the company. This type of bonus could be cash, gift certificates, passes or access to special
training programs of the employee’s choice, etc.
Paid holiday & vacation:
Paid holidays may also be negotiated by employees who have a
contract with employers; these are often senior level employees
Paid sick leave:
Paid sick leaves are determined by the employer, or in a represented
workplace, by the employee's representative, often a union, in negotiation with an employer.
Sales Commission

8. Commission occurs when an employee sells something. The reward is a certain percentage of the
total volume. It can range from 0-50% of the sale.
Savings, investment and financial management programs:
Profit Sharing and Savings Plan (includes our 401(k) feature)
MCDirect Shares
Credit union
Financial planning services

9. HINDUSTAN UNILEVER LTD.
About the company
Hindustan Unilever Limited (HUL) (BSE: 500696) is India's largest consumer goods company
based in Mumbai, Maharashtra. It is owned by the British-Dutch company Unilever which
controls 52% majority stake in HUL. Its products include foods, beverages, cleaning agents and
personal care products.
HUL was formed in 1933 as Lever Brothers India Limited and came into being in 1956 as
Hindustan Lever Limited through a merger of Lever Brothers, Hindustan Vanaspati Mfg. Co.
Ltd. and United Traders Ltd. It is headquartered in Mumbai, India and has an employee strength
of over 16,500 employees and contributes to indirect employment of over 65,000 people.The
company was renamed in June 2007 as “Hindustan Unilever Limited.
Provident fund:
A fund into which the employer and the employee both pay money regularly,
so that when the employee retires or leaves the company, he or she receives a sum of money
Maternity benefits:
Women employees in certain establishments for certain periods before
and after child birth and provides for maternity and certain other benefits.
Consider Intangible Rewards:
Although salespeople tend to be clearly motivated by money,
money is not the only motivator in having them do a good job. Increasingly, today’s salespeople
expect more from their job in the way of feeling values, respected and appreciated in the
organization if you want them to perform at their best.
Transport facility:
Provide transport facility to the office
Pension schemes:
Its provide pention plan.
Children education plan:
Free education plan to the children of employees
Health expenses of the employees and their families.

10. Milestone Bonus:
Milestone bonuses are used to recognize an achievement such as completing
a huge project or length of service. Some examples are:
taking a project team to a movie or dinner;
Gift certificates for an employee and his/her family after a special assignment;
5-year service plaques

11. SONY ERICSSON
About the company
Sony Mobile Communications AB (formerly Sony Ericsson Mobile Communications AB) is a
multinational mobile phone manufacturing company headquartered in Tokyo, Japan, and a
wholly owned subsidiary of Sony Corporation. It was founded on October 1, 2001 as a joint
venture between Sony and the Swedish telecommunications equipment company Ericsson, under
the name Sony Ericsson.
Paid holiday:
Paid holidays may also be negotiated by employees who have a contract with
employers; these are often senior level employees
Provident fund:
A fund into which the employer and the employee both pay money regularly,
so that when the employee retires or leaves the company, he or she receives a sum of money
Sign-onBonus:
This bonus is for new employees who sign a contract with the company. This
is meant to establish goodwill and buy out any remaining compensation the employee might
have had with another company.
Discount program:
It means initiate a discount-card program with local merchants, which
can result in 10-20% savings to staff on purchases like haircuts, clothing, food and
entertainment. More than 80% of employees surveyed supported this. You don’t have to be as
large as American Association of Retired Persons to initiate this idea.
Employee discount on company goods:
It refers to the Offer certain goods and services
Purchased by your company at cost to staff like gasoline, computers and peripherals, and office
supplies. More than 65% of employees surveyed support this type of program.
SpotBonus:
One form of spot bonus is referred to as “intrapreneuring.” In these cases,
employees are provided with a special incentive for coming up with new ideas that save the
company money or increase its revenues. Other forms of spot bonuses may be provided for
taking special safety precautions, providing outstanding customer service or performing other
acts that are important to the company. This type of bonus could be cash, gift certificates, passes
or access to special training programs of the employee’s choice, etc.

12. GLAXO SMITH KLINE
About the company
GlaxoSmithKline plc (GSK) (LSE: GSK, NYSE: GSK) is a British multinational
pharmaceutical, biologics, vaccines and consumer healthcare company headquartered in London,
United Kingdom. It is the world's fourth-largest pharmaceutical company measured by 2009
prescription drug sales (after Pfizer, Novartis, and Sanofi).[3] It was established in 2000 by the
merger of Glaxo Wellcome plc (formed from the acquisition of Wellcome plc by Glaxo plc) and
SmithKline Beecham plc (formed from the merger of Beecham plc and SmithKline Beckman
Corporation, which was formed by combining the Smith Kline French and Beckman companies).
GSK has a portfolio of products for major disease areas including asthma, cancer, virus control,
infections, mental health, diabetes, and digestive conditions. It also has a large consumer
healthcare division which produces and markets oral healthcare and nutritional products and
over-the-counter medicines including Sensodyne, Boost, Horlicks, and Gaviscon. In July 2012,
GSK pleaded guilty to criminal charges and agreed to a $3 billion settlement of the largest
health-care fraud case in the U.S. and the largest payment by a drug company in the US. The
settlement is related to the company's illegal promotion of best-selling anti-depressants and its
failure to report safety data about a top diabetes drug.
Employee discount on company goods:
It refers to the Offer certain goods and services
Purchased by your company at cost to staff like gasoline, computers and peripherals, and office
supplies. More than 65% of employees surveyed support this type of program.
Consider Intangible Rewards:
Although salespeople tend to be clearly motivated by money,
money is not the only motivator in having them do a good job. Increasingly, today’s salespeople
expect more from their job in the way of feeling values, respected and appreciated in the
organization if you want them to perform at their best.
Transport facility:
Provide transport facility to the office
Paid holiday & vacation:
Paid holidays may also be negotiated by employees who have a

13. contract with employers; these are often senior level employees
Medical assistance program:
The Medical Assistance Program and the Medical Benefit
Scheme cover you, your spouse and your children and is a reimbursable amount. You will also be
eligible for the Catastrophic Medical Assistance Plan and Mediclaim benefits
Sales Commission
Commission occurs when an employee sells something. The reward is a certain percentage of the
total volume. It can range from 0-50% of the sale.