Reward Main

Research Methodology

Preparation of Questionnaire

Visiting various organizations

Collecting Data

Analysis of the data

Primary Data:
Primary data is collected by visiting well known organizations belonging to different sectors. This Data is collected through interaction with industry professionals.

Secondary Data:
Secondary data is collected from various books, magazines and internet websites, which are mentioned In the bibliography.

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OBJECTIVE

To study the impact and effectiveness of ‗Reward Mechanism‘ in various organizations and to understand its significance and role in the policy of an organization, that will contribute in the overall achievement of organizational goals.

SCOPE

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Reward system in any organization plays a significant role in motivating and retaining employees. Along with this it also helps in boosting the morale of employees. This study shows the extent to which a reward system has its impact on the overall performance of the employees in an organization

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INTRODUCTION TO REWARD SYSTEM
Introduction
Reward system usually means the financial reward on organization gives its employees in return for their labour. While the term rewards system, not only includes material rewards, but also non-material rewards. The components of a reward system consist of financial rewards (basic and performance pay) and employee benefits, which together comprise total remuneration. They also include non-financial rewards (recognition, promotion, praise, achievement responsibility and personal growth) and in many case a system of performance management. Pay arrangements are central to the cultural initiative as they are the most tangible expression of the working relationship between employer and employee. Many papers examine the role of organizational culture i.e., the demand for monitoring compensation. Such investigations conclude that organizational culture places a significant role in determining the level of economic demands. Recent researches on industrial unrest rest indicate that reward criteria of the organizations both financial and nonfinancial rewards have tremendous influence upon the employees and employers performance.

Concept
Employee reward is about how people are rewarded in accordance with their value to an organization. An employee reward system consists of an organization‘s integrated policies, processes and practices for rewarding its employees for their contribution, skill and competence and their market worth. It is concerned with both financial and non financial rewards and is developed within the frame work of the organizations; reward philosophy, strategies and policies, and contains arrangements in the form of structure and procedures which will provide and maintain appropriate types and levels of pay, benefits and other forms of reward.

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Definition
Reward Strategy
The deliberate utilization of the pay system as an essential integrating mechanism through which the efforts of various sub-units and individuals are directed towards the achievement of an organization‘s strategic objectives. Reward strategy provides specific directions on how the organization will develop and design programs that will ensure that it rewards the behavior and performance outcomes that support the achievement of its business goals.

Evolution (modern and traditional)
In the earliest years that the fields of compensation and benefits were recognized as professions, practice was based largely on formulas that served the entire employee population in an organization. Salary structures were just that -- rigid and highly controlled -- and benefits programs were designed as a one-size-fits-all answer to a homogenous work force. In the 1970s and 1980s, organizations recognized that strategically designed compensation and benefits programs could give them the edge in a rapidly changing environment. Organizations were responding to:
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Global economic development and the emergence of multinational firms A much more competitive business environment Diversification of the work force to include workers who didn't fit the sole breadwinner, head-ofhousehold model of the '50s and '60s

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New government mandates related to employee benefits Rapidly rising benefits costs that prompted flexibility in programs to reduce costs.

Suddenly, the relatively simple compensation and benefits programs of the past were requiring consideration of their strategic impact and relationship to one another. Integration became a key, and compensation and benefits professionals emerged as critical strategic partners in their organizations' leadership -- a position still occupied by leaders in the field today.

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Companies have experienced unprecedented challenges including:
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Dramatic changes in the workplace, including increased awareness of conflicts caused by family, home and work demands.

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Workforce demographic changes that challenged the traditional working-father, stay-at-home-mother model of previous decades.

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Fewer resources available for pay increases. Substantial increases in health-care costs in some countries. Rapid decline of defined-benefit pension plans as a financially viable retirement model. Tremendous advances in technology and the emergence of new business opportunities. Geographic movement of many manufacturing and service roles. Advancement of pay-for-performance practices. Unprecedented mergers, acquisitions and global competition.

Collectively, these forces and others caused business leaders to scramble for ways to improve efficiency, effectiveness and marketplace viability. HR professionals -- particularly those specializing in compensation and benefits -- were challenged to contain costs and contribute to improved business results. These professionals were at the forefront of designing and implementing programmatic changes that have shaped the next generation of compensation and benefits. The results have included improved alignment of pay and performance, tighter controls on benefits costs, and more relevant and valued employee rewards programs. Forward-thinking professionals realized that programmatic advances would not be enough. While program efficiencies and cost controls have been pivotal for survival, many organizations have recognized that an integrated and enriched "value exchange" between an employer and its employees can accelerate velocity and success.

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Components of a reward system
The main components of the system are:  Process for measuring the value of jobs, the worth of individual in those jobs and the range and level of employee benefits to be provided. These processes consists of job evaluation, market rate analysis and performance management.  Practices for motivating people by the use of financial and non financial rewards. The financial reward consists of base and variable pay and employee benefits and allowances. Non financial rewards are provided generally by the culture and values of the organization and specifically by the quality of management and leadership, the work itself and the opportunities given to employees to develop their skills and careers.  Structures for relating pay and benefit levels to the value of positions in the organization and for providing scope for rewarding people according to their performance, competence, skills or experience.  Scheme for providing financial rewards and incentives to people according to individual, group and organizational performance.  Procedures for maintaining the system and for ensuring that it operates efficiently and flexibly and provides value for money.

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Reward Philosophy, Reward Strategy and Reward Policy
Reward Philosophy: It represents the broad values and beliefs that an organization holds about rewards. It specifies the assumption which underpins the reward system and determines its form. An effective reward philosophy is one that:  Reflects and underpins a positive organizational culture- one that recognizes the importance of people as a key asset and the need to reward them accordingly.  Provides management with guiding principles on how reward strategies and policies should be formulated, bearing in mind that this is an evolutionary process and the fundamental philosophies themselves may need to be adapted when new circumstances arise.   Addresses the key issues facing the organization relating to people and their contribution. Expresses values and beliefs that can be communicated to the employees and will be acceptable to them, atleast in general terms. Reward Strategy: Directs pay programmes to what the organization wants to achieve. It is a declaration of intent as to how the organization is going to put its reward philosophy into practice. It provides a broad perspective on how critical reward issues will be address. Strategy should be distinguished from plans. A strategy indicates the direction in which the organization wants to go in developing its reward processes and structures. A plan spells out how it is going to get there. An effective reward strategy is one that:       Is based on corporate values and beliefs. Flows from the business strategy but also contributes to it. Is driven by business needs and fits the business strategy. Aligns organizational and individual competencies. Is integrated with other personnel and development strategies. Is congruent with the internal and external environment of the organization – the content of the strategy will be contingent on those environment.

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Rewards results and behavior that are consistent with key organizational goals, thud driving and supporting desired behavior.

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Is linked with business performance, adopting a competitive strategy perspective. Is practical and implementable. Has been evolved in consultation with key stakeholders.

Content of reward strategy
Strategy which focuses on critical success factors will enable the organization to marshal its resources in areas which will maximize added value. It will make life easier for rewards strategy, who have to persuade all concerned of the right direction to take – they will be able to concentrate on what really comes. Key strategic issues include:          Competitive pay Achieving more equitable and definable pay system Restructuring the pay system to take account of – indeed, to underpin – organizational changes. Performance improvement Culture change Devolution of pay decisions to line managers Involvement of employees in reward matter Developing team work Increasing levels of competence and enlarging the skill base

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Reward policy: Reward policy indicates how reward processes should be designed and managed within the context of reward philosophy. It provides guidelines for the line managers and personnel or pay specialist on how particular and recurring reward issues should be dealt with. It enables consistent decisions to be made where appropriate while recognizing the need for flexibility and the perils of rigidity. An effective reward policy is one that:  Provides positive indication of what the organization and its management are expected to do or how they will behave in given circumstances.  Indicates the amount of discretion line managers can exercise, suggesting answers to the question ―how do I deal with this reward issue in these circumstances‖. Reward policy issues  Competitive pay – the pay policy of the organization indicates the extent to which it wants to be market led, that is the relation it wishes to maintain between its pay level and market traits  Internal equity – the degree to which internal equity is of prime consideration and the circumstances in which the need to be competitive may override the principle of internal equity.  Variable pay – thee extent, if any, to which the firm believes that pay should vary according to performance, competence or skill.   Individual or team reward – the need for reward to concentrate on individual or team performance. Employee benefit – the types and levels of employee benefits to be provided and the extent to which employees can choose the benefits they want.   The total reward mix – the mix of total reward as between base pay, variable pay and indirect pay. Structure – the extent to which the organization wants a hierarchical and relatively formal structure or one which is flexible and broad banded.  Reward priorities – the degree to which the organization wants to concentrate on ‗piling the rewards high‘ for the relatively small number of key players, or recognizes the need to provide reward which will support the steady improvement of the many.  Differentials – the level of reward at the top of the organization compared with average and minimum reward levels.

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Flexibility – the amount of flexibility allowable in operating the reward system, the degree of consistency required in applying policies the amount of control exercised from the centre.

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Uniformity – the extent to which pay structure and policies should apply to the whole organization or be flexible for different levels of employees.

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Devolution – the amount of authority which will be devolved to line managers to make pay decisions Control – how much control should be exercised from the centre over the implementation of reward policies.

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Gender equality – the approach which will be adopted towards eliminating gender bias in reward process and structures so as to ensure equal pay for work of equal value.

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Partnership – the extent to which the organization believes in sharing success with employees. Involvement – how much employees will be involved in pay decision that affect them.

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Significance of Reward System
       To reduce the dissatisfaction of the employees on promotion criterion To reduce the dissatisfaction of the employees on appraisal system. To reduce the dissatisfaction of the employees on salary, bonus and other fringe benefits. To improve the work performance To improve the productivity To reduce the level of occupational stress that arises from feeling of inequality on reward To reduce the perceptional gap on reward management system and develop a culture of high performance.

Why reward system is required? These components will be designed, developed and maintained on the basis of reward strategies and policies which will be created within the context of the organizations between strategies, culture and environment: they will be expected to fulfill the following broad aims; 1. Improve Organizational Effectiveness: Support the attainment of the organization's mission, strategies, and help to achieve sustainable, competitive advantage. 2. Support and change culture: Under pin and as necessary help to change the 'organizational culture' as expressed through its values for performance innovation, risks taking, quality, flexibility and team working. 3. Achieve Integration: Be an integrated part of the management process of the organization. This involves playing a key role in a mutually reinforcing and coherent range of personal policies and process. 4. Supportive Managers: Support individual managers in the achievement of their goals. 5. Motivate Employees: Motivate employees to achieve high levels of quality performance. 6. Compete in the Labour Market: Attract and retain high quality people.

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7. Increased Commitment: Enhance the commitment of employees to the organization that will a) want to remain members of it, b) develop a strong belief in and acceptance of the values and goals of the organization and c) be ready and willing to exert considerable effort on its behalf. 8. Fairness and Equity: Reward people fairly and consistently according to their contribution and values to the organization. 9. Improved Skills: Upgrade competence and encourage personal development. 10. Improved Quality: Help to achieve continuous improvement in levels of quality and customer service. 11. Develop team working: Improve co-operation and effective team working at all level. 12. Value for money: Pride value for the money for the organization. 13. Manageable: Be easily manageable so that undue administrative burdens are not imposed on managers and members of the personal department. 14. Controllable: Be easily controllable so that the policies can be implemented consistently and costs can be contained within the budget.

Aims of Employee Reward
(i) The organization‟s point of view A reward system expresses what the organization values and is prepared to pay for. It is governed by the need to reward the right things to convey the right message about what is important. Overall aim The overall aim of employee reward is to support the attainment of the organization‘s strategic and shorter – term objectives by helping to ensure that it has the skilled, competent, committed and well motivated workforce it needs. Pay programmes should aim to accomplish the following organizational objectives:    Make excellent performance financially worthwhile. Communicate to satisfactory performers the importance of acceptable and better performance. Communicate to less than satisfactory performers the need to improve.

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Contribution to added value Added value is created by people. It is people at various levels who create vision, define values and mission, set goals, develop strategic plans and implement those plans in accordance with the underpinning values. Employee reward contributes to the creation of added value by helping to ensure that people with the required competences and levels of motivation are available and by playing a part in creating a culture and environment that stimulate quality performance. Contribution to competitive advantage A firm creates value for its customers, selects markets in which it can excel, and presents a moving target to its competitors by continually improving its position. Unique talents among employees, including superior performance, high productivity, flexibility, innovation and the ability to deliver high levels of personal customer service are ways in which people provide a critical ingredient in the development of the competitive position of the business. Employee reward practices can make an important contribution to getting and keeping such people and to providing them with the incentive which will motivate them to achieve higher levels of performance.

Management and reward
An organization‘s performance depends ultimately on the quality of its management and employees, and the reward system can help to improve the quality. But the improvement of organizational; effectiveness cannot be left to the reward system alone: the culture, values and management style of the organization, together with its performance management and employee development programmes, are also important. Reward systems, however well conceived and effective, are no substitute for good management. Specific aims From the organizational point of view, the specific aims of employee reward are to:  Ply a significant part in the communication of the organizations‘ values, performance, standards and expectations.  Encourage behavior that will contribute t the achievement of the organizations objectives and reflect the ‗balanced score card‘ of key performance drivers. Two of the basic questions to be answered

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when developing reward system are ‗what sort of behavior do we want? And ‗how can reward processes promote that behavior?‘   Underpin organizational change program concerned with culture process and structure Support the realization of the key values of the organization in such areas s quality, customer care, teamwork, innovation, flexibility and speed of response  Provide value for money. No reward initiative should be undertaken unless it has been established that it will ass value, and no reward practice should be retained if it does not result in added value.

(ii) The employees‟ point of view From employees‘ point of view the reward system should:  Treat them as stakeholders who have the right to be involved in the development of the reward policies that affect them   Meet their expectations that they will be treated equitably, fairly, and consistently Be transparent. They should know what the reward policies of the organization are and how they are affected by them.

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DESIGNING REWARD PROCESSES
A reward strategy should be based on an understanding of the Customer, the Business Goals and the Core competencies or key success factors of the Firm. To arrive at this understanding we need to answer 5 groups of questions: 1. What are the organizations key success factors? What does the Firm need to do to be successful? 2. What are the indicators that will determine progress on the success factors? 3. What are the behaviors or actions needed to successfully implement this competitive strategy? 4. What do people need to start doing or stop doing? To what extent do people know what to do? 5. What programs should be used to reinforce these behaviors for each specific target group. * Base Pay Program * Merit Pay Program * Variable Pay * Special Recognition Systems * Equity Linked Programs * Bonus Programs 6. What requirements should each program meet to be successful in fulfilling the purpose? - Should it be individual or team based. - How competitive should it be in the market place? - Should it be highly leveraged or highly secure? - Should it apply to everyone or to certain groups? 7. How well do the current rewards programs match up to these requirements: - Where does each program meet or exceed the requirement? - Where do the programs fall short? Why? Is the organization prepared to invest the time, effort & resources to achieve the desired changes?
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Key Issues in Reward System
Essentials 1. Determining levels of reward To determine how much reward is appropriate, consider the question what level of employee reward will attract, retain, and motivate people of the calibre that you require. If an employee does something that results in a one-time boost for the company, a one-time incentive is most appropriate.

2. Rewards In Addition To Wages Keep in mind that the main reason why you are giving an employee reward is because you want exceptional results, not comparable performance. Exceptional productivity will more than cover extra pay. - Employee rewards should be set for noteworthy achievements - Rewards must be related to a particular completion of a given task - Employees should be encouraged to express their recent achievements - Ensure the employee knows they deserve it, it will have a great impression on their personality

3. Employee reward should never be an alternative for a reasonable remuneration scheme This type of award should not be set as an enduring option to stable income amendments when, in fact, these changes should be carried out for constant and regular completion of tasks, excellent execution, and notable modifications in conscientiousness, or enhanced assessment of a status. Remember that employee reward is a one-time incentive program; therefore, it should be set out clearly and must be understood well by the employees so that they will know where to stand.

4. Employee rewards should not reflect the impression that these are changes to one's basic pay It must be set out clear to the employees so that they will not expect anything more than what they have to receive. Make it apparent that the extra pay is for special achievement only and nothing else. Generally, employee rewards may be in the form of cash incentives or non-cash fringe benefits. It could even be something of no real financial worth such as a personal letter of commendation.

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5. Reward by volume If you have to use a monetary type of employee reward, give reward based on results. This means that the employee gets a fixed amount for a specific amount of results. In theory, this gives the employee the best incentive to maximize output. In fact, employees tend to put a ceiling on their earnings and thus on their effort. Nevertheless, the key concept here is that the management should only give an employee reward that is tied to an individual achievement. The reward must be reasonably large to have value - no one likes getting an overly small reward as it could have the opposite effect and make the employee view the company as cheap or undervaluing them. Never reward an employee for what has been accepted as a sensible objective. It should be given for extraordinary achievements only.

Meaning of reward to people Pay is frequently used as a motivator and reinforce on it can easily be differentiated and computed, linked, clearly and visibly to direct performance and is generally valued reward. While outlined the major components in the meaning of reward to people;     Short-term material enjoyment. Long term security, Social status. Recognition of personal achievement.

Challenges Perceptional Gap Ganguli O,N, (1967), in his study found "pay and allowances as the most important factor causing satisfaction or dissatisfaction to workers" According to Fred Luthans (1981), "inequality occurs when an individual perceives that the ratio of his outcomes to input and the ratio of relevant others outcome to input are unequal" These findings indicate that the reward management system in an organisation highly influence member's behaviour at work. We can see glaring example that some members are highly involved in the work environment and some members doesn't. The possible explanation given by many authors on these differences are intrinsic and extrinsic factors at work. A perceptional difference between what they have and what others have, develop a feeling of inequality among members. High dissatisfaction, high stress and
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frustration etc are the resultant manifestation of this perceptional gap. The perceptional gap affects the productivity and the performance of the members at work. Hence it is necessary to develop an effective reward management system that reduces the perceptional gap. Strategies to reduce "Perceptional gap" 1. See quantifiable goal for better evaluation of performance. 2. Reward behavior towards accomplishment of tasks. 3. Reward based on personnel choices of employees. 4. Never reward indiscriminately. 5. Compliment the action of individual. 6. Develop objective criteria for reward eligibility. 7. Communicate well the eligibility criteria for reward to each member. 8. Make employee know the performance value. 9. Develop reward system that match with the culture and values widely held by the organizations, 10. Ensure the accountability of the reward system across functional level. 11. Ensure top-level support in reward policy development and implementation. 12. Develop a reward system that in tune with the organizational goal. 13. Introduce individual and group reward system 14. Set performance evaluation measure simple and understandable. 15. Develop standardized performance evaluation indicators. 16. Introduce performance related pay system. 17. Make use of (ITMS) Integrated talent management software system to make it easy for managers to calibrate goals 18. Provident training to members to aware of performance based reward system and management. 19. Celebrate the employee's success in completion of projects. 20. Communicate the value of benefit offered. 21. Invite suggestions of the members in the reward modification and restructuring process. 22. Ensure healthy competition to improve the effectiveness of competency based reward performance. 23. Reward system should ensure opportunity to growth and development of members. 24. Ensure compensation package in tune with the personal life balance. 25. Superior performers to be motivated to exceed their expectation and mediocre performance will be encouraged to improve performance. 26. Personally thank employee for a specific job well done. 27. Share valuable and remarkable employee performance with top-level officials.
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28. Avoid favoritism and nepotism. 29. Never make use of denial of reward as punishment behaviour. 30. Motivate the subordinates through recognition and support.

Organizational culture and reward management system
Singh et. al. (1977) in a study of organizational culture and its impact on managerial remuneration concluded that the demands for money was significantly influenced by the quality of organizational culture and that it can substantially be reduced by improving the quality of organizational culture. Findings such as those suggest that satisfaction, task involvement, demand for money and commitment are largely determined by organizational culture. Recent researches on industrial unrest indicate that reward criteria of the organizations both financial and non-financial rewards have tremendous influence upon the employees and employers performance. Lower quality of organizational milieu leads to higher level of expectations for monetary compensation. This is so because such organizations do not gratify social and psychological needs of individuals. They lead to subordination, dependence and submissiveness. Concern for money arises because of the basic incongruity between the individual need system and the organizational demands. Coercive authority system—autocratic and custodial—affects the motivational pattern. It de-emphasizes self actualization, growth process, creativity and innovativeness and emphasizes the role of monitory rewards for the motivation. In the absence of autonomy of work system and socio task grouping, higher order human needs—love and belongingness, ego, achievement and self-actualization are threatened. It hampers the growth of full personality and leads to frustration and anxiety". Higher the job satisfaction members have at work higher is the member's adjustment with the work and work organization. The culture of the organization is an important factor, which conveys the policies, and practices widely held by the organization. An organizational culture, which gives importance to employee‘s satisfaction at various level viz., psycho-social and economic needs, can develop better productivity and performance at work. It reduces the perceptional gap on the reward management and performance management system and ensures better involvement and commitment at work. A strong organization culture, in which the employers take effort to reduce the perceptional gap in the reward management system and induce trust and confidence among the employees at work.

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Factors Affecting Reward System  Globalization Need to attract and retain high quality ―global managers‖.  Restructuring Need to develop pay structures which fit and support delayered and flatter organization and introduce methods of rewarding team work.  Culture change Use of rewards to influence changes in culture, values and styles.  Behavior Rewards which drive and reinforce desired behaviors.  Product, market & technological development Rewards support people with skills and competencies which are required.  Cost Management Developing affordable reward packages that will provide value for money.

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Types of Rewards
Monetary Rewards
The base pay Base or basic pay is the level of pay that constitutes the rate of the job. The basic levels of pay for jobs reflect both internal and external relativities. The internal relativities may be measured by some form of job evaluation which places job in a hierarchy. External relativities are assessed by tracking market rates. Alternatively, levels of pay may be agreed through negotiations. Base pay may be expressed as an annual, weekly or hourly rate and it may be adjusted to reflect increase in the cost of living or market rates by the organization unilaterally or by agreement with a trade union. It‘s the pay provided by an employer to an employee for services rendered (i.e., time, effort and skill). Compensation comprises four core elements:
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Fixed pay -- Also known as "base pay," fixed pay is nondiscretionary compensation that does not vary according to performance or results achieved. It usually is determined by the organization's pay philosophy and structure.

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Variable pay -- Also known as "pay at risk," variable pay changes directly with the level of performance or results achieved. It is a one-time payment that must be re-established and re-earned each performance period.

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Short-term incentive pay - A form of variable pay, short-term incentive pay is designed to focus and reward performance over a period of one-year or less.

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Long-term incentive pay -- A form of variable pay, long-term incentive pay is designed to focus and reward performance over a period longer than one year. Typical forms include stock options, restricted stock, performance shares, performance units and cash.

Individual performance – related pay In this pay increases in the base pay or cash bonuses are determined by performance assessment and ratings

Bonuses Rewards for successful performance which are paid as lump sums related to the results obtained by individuals, teams or the organization.

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Incentives Payments linked which the achievement of the previously set targets which are designed to motivate people to achieve higher levels of performance. The targets are usually quantified in such terms as sales or output.

Commission A special form of incentives in which the sales representatives are paid on the basis of a percentage of the sales value they generate.

Service – related pay Which increases by fixed increments on a scale or pay spine depending upon the service in the job. There may sometimes be scope for varying the rate of progress up the scale according to the performance. Skill – based pay / knowledge – based pay It varies according to the level of skills the individual achieves.

Competence – related pay It varies according to the competence achieved by an individual.

Career development pay Rewards people for taking on additional responsibilities as their career develops laterally within a broad grade.

Allowances Elements of pay in the form of a separate sum of money for such aspects of employment as overtime, shift working, call outs and living in large cities.

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Administrative salary supplements Employees who assume new/additional responsibilities on an interim basis may receive administrative salary supplements that are paid in addition to the base salary. The supplement is discontinued when the employee is no longer responsible for the additional responsibilities. Social Insurance     Group Insurance           Medical Dental Vision Prescription drug Mental health Life insurance AD&D insurance Disability Retirement Savings Unemployment Workers' compensation Social Security Disability (occupational)

Pay for Time Not Worked These programs are designed to protect the employee's income flow when not actively engaged at work.   At work (breaks, clean-up time, uniform changing time) Away from work (vacation, company holidays, personal days).

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Non – Monetary Reward
Praise/recognition from supervisor Praise and recognition from supervisors is consistently found to be among the most important motivators. Employees want to be recognized and feel their contributions are noticed and valued. It is important that supervisors recognize the value and importance of sincerely thanking employees verbally and/or in writing for their specific contributions

Challenging work assignments Challenging/new work assignments are another mechanism available to supervisors to reward good performance. Such assignments can provide employees opportunities to develop new skills, expand their knowledge, and/or increase their visibility within the organization. They also send an important message that employees‘ contributions are recognized and valued. In considering such assignments, supervisors should consult employees about the types of assignments that would be most valued, and they should also assess whether workloads will need to be redistributed to ensure employees have adequate time to devote to new tasks

Professional growth and development opportunities Supervisors may provide employees opportunities to participate in educational programs or other activities that will expand their skills/knowledge. Employees benefit by developing new skills, and the institution benefits from the additional expertise individuals bring to the job. Nelson notes a recent survey found that 87% of responding workers viewed special training as a positive incentive, and it appeared most meaningful to employees with postgraduate education. A plan for an employee to advance their own career goals and may include advancement into a more responsible position in an organization. The organization supports career opportunities internally so that talented employees are deployed in positions that enable them to deliver their greatest value to their organization.

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Development and career opportunities include the following:
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Learning Opportunities
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Tuition assistance Corporate universities New technology training Attendance at outside seminars, conferences, virtual education, etc. Self-development tools and techniques On the job learning; rotational assignments at a progressively higher level Sabbaticals with the express purpose of acquiring specific skills, knowledge or experience.

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Coaching/Mentoring
o o

Leadership training Access to experts/information networks -- association memberships, attendance and/or presentation at conferences outside of one's area of expertise

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Exposure to resident experts Formal or informal mentoring programs; in or outside one's own organization.

Advancement Opportunities
o o o o o o o o

Internships Apprenticeships with experts Overseas assignments Internal job postings Job advancement/promotion Career ladders and pathways Succession planning Providing defined and respectable "on and off ramps" throughout the career life cycle

Paid leave Supervisors may award employees up to 32 hours of paid leave annually in recognition of meritorious performance

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Promotion and lateral moves Promotions and lateral moves may be long term rewards that recognize employees‘ professional growth, expertise, and capacity to contribute to the institution in new roles. Promotions are typically associated with an increase in salary, and the increase may be any amount up to 10% of an employee‘s current salary. For employees with base salaries under $25,000, the increase may be any amount up to $2,500. The new salary also must be within the salary range approved for the position, and employees are subject to a 90-day probationary period following a promotion/lateral move to a new department Informal rewards When warranted, supervisors may choose to give employees informal rewards for specific accomplishments/contributions. State law and institutional policy allow expenditures of up to $50 of state funds and $100 of non-state funds per employee for informal non-cash rewards that demonstrate the supervisor‘s/institution‘s appreciation. Supervisors can be creative in identifying informal rewards that will be appreciated by the particular individual being recognized, but, in selecting and purchasing rewards, supervisors must be sensitive to the institution‘s responsibility to be good stewards of public funds. Others
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Dinner certificates, A trophy or plaque, Cash bonus, Pizza party thrown in the recipient's honor, or for an entire group that has done a great job, Bonus miles for airlines, A "top achiever" ribbon, A reserved parking space, An extra paid day off, Movie passes.

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Total Reward System
Total reward programmes, which integrate both financial and non-financial incentives to reward staff, can offer an organization the building blocks to help incentivize, recognize and motivate employees to deliver improved levels of performance. While achieving competitive advantage in selling products or delivering outstanding customer service is the crucial element in the success of many businesses, it can be argued that, similarly, competing for, retaining and incentivizing talented employees is equally as important. And in today‘s business environment just maintaining a competitive pay policy is no longer the benchmark – as a report by the Professional Association for Compensation points out, more organizations are now considering leveraging "all of the tools available to the employer to attract retain and motivate employees". Improved performance Total reward theory supports the concept that employees will show higher levels of performance and productivity if they feel valued by the organization. The relationship between this feelings of value is reciprocated by the organization through offering relevant financial and non-financial rewards. These should be in line with employees‘ needs and wishes, the strategic direction of the business and what the business values from its employees. It also aims to reinforce an organization as an ‗employer of choice‘ by promoting its reward policies and practices as a ‗total reward package‘ with the focus on meeting the needs and expectations of employees, rather than a collection of HR reward and development policies. It builds upon four basic building blocks of what is seen to be important to employees, and is part of the overall motivational mechanism seen in wellperforming organizations.
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Compensation: providing differential compensation to employees based on performance. Informal recognition: day to day recognition of performance, most importantly by the immediate manager.

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Honorifics: recognition elements. Promotion prospects: advancement and development opportunities.

Total reward solutions are presented in many forms, with models that range from reflecting three, four and even six key elements in their design. For example a simpler model might look at pay, benefits, learning and development, and the work environment, while a slightly more ambitious program might touch on tangible rewards, future growth and opportunity, enabling the work environment, the quality of work, work/life balance, and inspiration and values. The models can potentially utilize a vast array of motivational and reward factors.

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Whilst this is not an exhaustive list, it is representative of what organizations use. Each factor on its own can play a part, however, the benefit to employer and employee is in combining relevant factors to offer a comprehensive package that is linked, integrated and provides a menu to help motivate employees. Inevitably with options comes the question of ‗what to include‘, but more important is how the organization obtains the maximum value from those choices. For each factor the business should consider what it wishes to receive in return from employees. Many organizations have entered the total reward arena with a small focused selection of factors representing only financial and non-financial elements. Each element (or combination of elements) should exist for relevant strategic and operational reasons, as removing or replacing factors at a later stage could undermine the purpose of the whole model. \ Total reward statement Often with the type of ‗transactional‘ model, mentioned above, employers provide employees with annual total reward statement, which details what individuals are entitled to and the financial worth of their respective elements beyond basic pay. Additionally, they can make employees more engaged with the organization by helping them to understand how much they are getting from the employer, which may make them more inclined to stay on and be more ‗motivated‘. Determining the mix of total reward factors may be strategic or tactical depending upon the needs of the business. For example, executive compensation is often more focused on financial values and total reward may be replaced by ‗total compensation‘. This is in part due to the fact that executives usually have sufficient flexibility in their organizational roles to be able to organize their work, influence their development opportunities, generate interesting and challenging work, and as a result, partly meet their motivational needs. Hence total reward tends to focus on ensuring that the compensation elements, namely salary, benefits, shortand long-term incentives and perquisites are (a) competitive, and (b) suitably structured to influence performance and behavior. Depending upon the requirement, the elements can be used; however, executive compensation design must also reflect good governance. At the tactical level, total reward solutions can be designed to operate across a broader spectrum of employee groups and incentivize and motivate them accordingly. For example the effective use of voluntary benefits within Total Reward can provide employers and managers with the opportunity of identifying and recognizing individual or team performance by providing aspirational non-cash rewards. Work-life provisions, now common practice in many organizations, provide valued flexibility around employment hours and work patterns.

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Linking total reward to learning and development, relevant career advancement and succession plans for individuals or roles, which in turn are reinforced through pay, progression and incentive mechanisms, present a compelling statement of the employment landscape within the organization. Arguably, if a total reward model is to contribute to incentivizing and motivating employees, this will not be accomplished without good line management and effective performance management activities. Effective business performance centers on the ability and capability of line managers to utilize all the physical and psychological employment dimensions at their disposal, of which total reward components feature predominantly.

Primary elements of a total reward system

Base Pay

Total Reward Strategy Performance Management Variable Compensation

Base Pay 1. To reflect market competitiveness 2. Specific role of each individual 3. Competencies 4. Values of the organization

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Variable Compensation 1. Create opportunities for sharing in results. 2. Tied to economic factors of success 3. Team or individual oriented 4. Relates to results

Performance Management 1. Measure & Goals 2. Feedback 3. Reinforce desired behaviors

Total Rewards journey in terms of philosophy and implementation has been undergoing a constant change over the years. The desired end result of Total Rewards approach is: a satisfied, engaged and productive group of employees who, in turn, create the desired business performance and results. The aim of Total Rewards has remained the same over the years but the levers that are being identified under Total Rewards and their importance has been shifting year on year. The Total Rewards journey can be clearly demarcated into 3 stages:

Stage 1: Total Rewards = Total Compensation   Led to debate that transactional components alone cannot achieve the desired end result. Total Compensation is an important and necessary lever of Total Rewards but is not a sufficient lever for attracting, retaining and motivating employees.

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Stage 2: Integrated Model of Total Rewards Total Rewards refers to the transactional and relational levers provided to employees in exchange of their time, talents, efforts and results. The key levers in the integrated model are stated below

Benefits

Work Experience

Compensation

Employees Compensation Benefits Work Life Satisfaction & Engagement Performance & Recognition Career Development

Business

Performance & Results

Stage 3: Unique Integrated Model of Total Rewards  Total Rewards refers to the unique and propriety way in which organizations use the levers to attract, retain and motivate employees. This model abandons the ‗one size fits all‘

approach and focuses on providing innovative and customized levers of Total Rewards.  Not a refutation of the earlier models but it is a refinement and elaboration of the earlier models. The new model seeks to better elaborate retention all the levers that drive attraction,

and motivation in a manner that best fits not only the workforce but customizes it

to individuals within a workforce.  Organizations irrespective of their size are adopting this approach to keep their flock together. Hence some of the steps that organizations are taking towards creating a unique Total Rewards experience range from broad based organization wide practices to customized individual practices.
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Definition & Levers of Total Rewards

Transactional Levers
Total Compensation Pay provided by the employer to an employee for services rendered includes both fixed and variable pay tied to levels of performance

Benefits

Program used to supplement cash compensation that employees receive. Provides security for employees and their families Relational Levers

Work Life

A specific set of organizational practices, policies, programs supporting employees achieve success at work and home

Performance & Recognition

Performance: The alignment of organizational, team and individual efforts towards achieving goals and organization success

Recognition: Acknowledging employees actions, efforts, behaviour that meet an intrinsic psychological need for appreciation efforts and reinforce certain behaviours

Career Development

Learning experiences designed to enhance employees applied skills and competencies to Advance their career goals. Aim to engage employees and deploy of career opportunities internally.

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A Snapshot of Innovative and Unique Total Reward Practices  3G: Providing an ATM centre, gaming arcades, multicuisine restaurants, even fitness and beauty centers for employees to unwind within the office premises, offer higher education programmers‘ with tie- ups with premier institutions   Eon Technologies: Tele-commuting, flexi-time and retreats focused on team building SAP: Provide everyone with an opportunity to handle an international range of global projects  Tesco: Maternity, paternity leave, also adoption leave. In house learning centre, employees can register for a retail certification course from Indian Institute of Management  Xansa: Focuses on facilities for women - crèche facilities, has a policy of no graveyard shifts (Xansa caters to the UK market), facility for yoga classes, psychological counseling sessions, assignment, offer wide

regular medical check-ups, benefits around flexi-time, sabbaticals and adoption leave  Infosys: Provide rigorous training programmes which involve several levels of certification, ensure that the campus environment is collegial, and control the ratio of managers to

employees.

Total Rewards Philosophy at Wipro…
Total Rewards is fair recognition given to one‘s contribution to the organization. At Wipro, Total Rewards are look as an enabler to build a strong Rewards mechanism focusing on: a. Attracting the right talent. b. Compensation that is positioned competitively. c. Driving higher performance that is recognized and appreciated. From Compensation to Total Rewards… Today differentiation driven by performance forms the basis of compensation. Wipro has realized that annual

salary increases do not have a significant impact in retaining critical talent. A good mix of offerings including the right kind of roles, career opportunities, investment in employees‘ development and a good brand is the global demand. Wipro stayed on course with respect to equity based Long Term Incentives where they use a restricted stock plan. They have believed in the significance of these instruments and have extended it to significant contributors and employees with a long term stake in the organization.

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More than just Compensation for future employees … The spectrum of work at Wipro is very appealing to young engineers. While compensation is competitive, a key highlight of their offer for youth is their education initiatives like tie ups with universities abroad and in India. Wipro places a high premium on merit and so have stayed away from age based promotions. Growth is in the hand of an individual. Developmental needs of employees are important and senior leadership including Mr. Azim Premji conduct training sessions during the year. Total Rewards in High Performers Management… At Wipro, they begin with a thorough talent review and planning exercise wherein Mr Azim Premji, Business Unit Heads and HR spend up to 10 working days. Once high performers and critical role holders are identified, suitable actions taken may include role enhancement, allocation to different leaders for compensation. They also have Global leadership alliances in collaboration with global corporations nominate their future leaders. For differentiated where they

them, recognizing and rewarding high performers is not by making

poster boys of them, but by investing in their growth. Total Recognition at Wipro! To foster a feeling of oneness in the company, the organization has heavy emphasis on group initiatives and these are captured as team photos. One of their innovative recognition programs is the ‗Dear Boss‘ award. Contrary to the norm, team members give an award to the boss, through a pre-defined process. To reinforce and appreciate an employee‘s continued stay, cash awards seem insufficient. In these cases, they have Club 10 and Club 15 programs where they sponsor holidays for employees and their families for achieving these milestones.

Total Rewards at Sun Microsystems….
Compensation is an important component of Sun's employee lifecycle engagement strategy. Total rewards plays an important part in driving execution of business strategy and aims to    Drive performance Attract and retain talent Encourage teamwork

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Through the years… At Sun globally, the key change has been the focus on performance driven pay through the incorporation of variable component even at lower levels in the organization. They have a higher variable component; sometimes as much as 50% for senior levels and functions where performance is directly measurable, while it is lower for the others. In India, compensation is heavily cash focused; they follow a la carte approach, which gives

employees adequate choice. They are shifting their focus gradually away from benefits (as was traditionally defined) with the objective of greater transparency in their compensation structure. Managing High Performers Sun‘s performance management system identifies High Performers at the global level in the organization. They adopt a differentiated compensation strategy; top performers could get up to twice the increments of average performers. Managers are encouraged to reward innovation and teamwork and they too are rewarded for developing leaders in their teams. For High Performers they also focus on their accelerated development. They have a worldwide mentoring program, SEED, where employees are mentored by the best thought leaders in the organization. Every year, there are 25 – 30 employees from India who benefit from this initiative. Recognition at Sun They recognize their talent through both monetary and non-monetary initiatives. where managers They have spot bonuses

reward subordinates for their contributions to specific initiatives. These could range from Rs.

5000 to Rs. 1 Lakh. They have monthly and annual awards for contributions, which are more long term. At their R&D center, nomination for these awards can also be through peers. Other interesting developmental and recognition programme recognizes young thought leaders by nominating them to represent Sun at

external forums like technical conferences. Apart from this they have several recognition programmes for employees on a global level. They also have a patent bonus award, which provides monetary recognition each time an idea is accepted by the Sun patent office. This reinforces their belief in encouraging innovation. Total Rewards and Retention? Total Rewards is only an enabler to retain talent, and not the decisive factors in promoting change. Attrition is a function of a multitude of factors, and at Sun less than 10% of exiting employees have cited compensation as the reason for quitting. The results In summary, a well-designed and effectively communicated Total Reward offering should result in:
  

Improved recruitment of better-quality staff. Reduction in wastage from staff turnover and employment costs. Improvements in business performance.

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 

Establishment as an ‗employer of choice‘. Reinforcing appropriate behaviors. Providing a channel to aid the communication of the ‗employer‘s offering‘ to its employees. Reinforced commitment through allowing employees choice over what they want from their employer. The organization maintaining overall control of the options available to individuals. A more motivated and committed workforce.

   

GUIDELINES UNDER REWARD SYSTEM
How to Provide Effective Employee Recognition
Prioritize employee recognition and you can ensure a positive, productive, innovative organizational climate. Provide employee recognition to say ―thank you‖ and to encourage more of the actions and thinking you believe will make your organization successful. People who feel appreciated are more positive about themselves and their ability to contribute. People with positive self-esteem are potentially your best employees. These beliefs about employee recognition are common among employers even if not commonly carried out. Why then is employee recognition so closely guarded in many organizations? Time is an often-stated reason and admittedly, employee recognition does take time. Employers also start out with all of the best intentions when they seek to recognize employee performance. They often find their efforts turn into an opportunity for employee complaining, jealousy, and dissatisfaction. With these experiences, many employers are hesitant to provide employee recognition. Employee recognition is scarce because of a combination of several factors. Peop le don‘t know how to provide it effectively, so they have bad experiences when they do. They assume ―one size fits all‖ when they provide employee recognition. Finally, employers think too narrowly about what people will find rewarding and recognizing. These guidelines and ideas will help you effectively walk the slippery path of employee recognition and avoid potential problems when you recognize people in your work place.

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Guidelines for Effective Employee Recognition Decide what you want to achieve through your employee recognition efforts. Many organizations use a scatter approach to employee recognition. They put a lot of employee recognition out there and hope that some efforts will stick and create the results they want. Or, they recognize so infrequently that employee recognition becomes a downer for the many when the infrequent few are recognized. Instead, create goals and action plans that recognize the actions, behaviors, approaches, and accomplishments you want to foster and reward in your organization. Establish employee recognition opportunities that emphasize and reinforce these sought-after qualities and behaviors. If you need to increase attendance in your organization, hand out a three-part form, during your Monday morning staff meeting. The written note thanks employees who have perfect attendance that week. The employee keeps one part; save the second in the personnel file; place the third in a monthly drawing for gift certificates. Fairness, clarity, and consistency are important. People need to see that each person who makes the same or a similar contribution has an equal likelihood of receiving recognition for her efforts. I recommend that for regularly provided employee recognition, organizations establish criteria for what makes a person eligible for the employee recognition. Anyone who meets the criteria is then recognized. As an example, if people are recognized for exceeding a production or sales expectation, anyone who goes over the goal gets the glory. Recognizing only the highest performer will defeat or dissatisfy all of your other contributors, especially if the criteria are unclear or based on opinion. For day-to-day employee recognition, you‘ll want to set guidelines so leaders acknowledge equivalent and similar contributions. Each employee who stays after work to contribute ideas in a departmental improvement brainstorming session gets to have lunch with the department head. This guideline is why an ―employee of the month-type program‖ is most often unsuccessful. The criteria for results and the fairness of these criteria are not clear to people. So, people complain about ―brown-nosing points‖ and the boss‘s ―pet.‖ These programs cause discontent and dissention when the organization‘s intentions were positive. As an additional example, it is important to recognize all people who contributed to a success equally. A CEO I know perpetually announced employee recognition for major projects at the company holiday celebration. Without fail, he missed the names of several people who contributed to the success of the project. With the opportunity for public recognition past, people invariably felt slighted by the post-banquet thanks.
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Patni Computer Systems, Ltd

Patni Computer Systems Ltd. (Patni) (BSE: PATNI COMPUT, NSE: PATNI, NYSE: PTI) is one of the leading global providers of Information Technology services and business solutions. Over 15,000 professionals service clients across diverse industries, from 22 sales offices across the Americas, Europe and Asia-Pacific, and 20 Global Delivery Centers in strategic locations across the world. They have serviced more than 400 FORTUNE 1000 companies, for over two decades.

Their vision is to achieve global IT services leadership in providing value-added high quality IT solutions to their clients in selected horizontal and vertical segments, by combining technology skills, domain expertise, process focus and a commitment to long-term client relationships.

Patni delivers high quality, reliable and cost-effective IT services to customers globally. They provide world-class technology services by constantly exploring and implementing innovative solutions that drive long-term value to their customers.

As industry leaders, they introduced offshore development centers, pioneered "follow the sun" development and support frameworks, ensuring compressed delivery timeframes.

Today, their solutions provide strategic advantage to several most-admired organizations in the world. Patni have long-standing and vibrant partnerships with over 300 companies across the globe.

Employee Recognition Program Objective:   To recognize and appreciate the special contribution and excellent performance of the employees in the organization To encourage and motivate the employees to achieve higher level of effectiveness and excellence

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1. General Eligibility Criteria for Awards:     The scheme is applicable for all the employees at SC level (level 6) and below in software and equivalent levels in other functions Criteria for each award category are given below. In order to qualify for the award the employee is expected to satisfy majority of the criteria, though not all of them. The citation, which is given, should be supported wherever possible with quantifiable data, appreciation letters from customers/ seniors and peers. For Team awards factors such as teamwork, updating each other, chipping in for other person, boosting morale of the team, taking ownership responsibility and coordination amongst each other should be considered.  Factors such as commitment to company objective and policies, good interpersonal relations, commitment to the project or the task assigned should also be weighed along with the specific criteria mentioned below  In the event of nomination not meeting the criteria, no award should be granted.

2. Types of Awards: 2.1 Annual Awards 2.1.1 Business Development Award (BDA): Eligibility: An employee could be nominated for BDA if:    The person creates significant potential for new business with the existing customer The person creates new opportunities for new business generation/ helped in establishing relationship with new customer. The person develops a pilot project, which helped in new business generation with the existing customers/new customers.

2.1.2 Superlative Performance Award. (SPA): Eligibility: An employee may be considered as an eligible nominee for the SPA if    Performance has been outstanding and Sustained over the entire period under consideration for whatever responsibility he/she is assigned. Performance has been the key factor in the success of the significant and strategically important project or assignment. Performance has been influential enough to create potential for new business from the customer assignments/responsibilities.
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

The Person‘s performance can be considered as exemplary in the organization and he/ she could be the role model in the organization.

2.1.3 Excellent Performance Award (EPA): Eligibility: An employee may be considered as a nominee for EPA if:     Performance has been outstanding over most of the period under consideration in each and every task assigned. Performance has been important factor for the success and strategically important for the given project / assignment. Output has exceeded expectation on the assignments consistently. The person has surpassed his/her peers engaged in similar kind of assignment or responsibilities

2.1.4 President‟s Quality Contribution Award (PQCA): Eligibility: An employee could be nominated for PQCA if: In Quality role   The person has contributed in capturing of all the defect data associated with testing The person has uncovered significant defects in Work Product before delivery to the customer

In Producer Role    The person has produced code, which meets all defined standards. The person has done appropriate test planning consistently. No defect has been found in the code produced or impacted in his/her work within the given task.

Additional Criteria The person has to be the recipient of the Monthly Quality Contribution Award (MQCA) Sustained contribution during the entire period under consideration 2.1.5 Team Awards (TA): This is a Non monetary award in the category of the Annual awards. Eligibility: Team can qualify for this award if:     The work Schedule has always been met during the period under consideration. The output of the team as a whole has surpassed the expected volumes and quality requirement: The members of the team have displayed high level of mutual cooperation and team spirit Innovative approaches were successfully adopted resulting in substantial gains to the company
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

For a Team award to be given to a team the size of the team should be more that 7 and it should have worked together for more than 4 months

2.1.6 Nomination criteria:    The nominations for all the award are solicited by the HRD in and around mid November each year The nominations or recommendations for the awards are received through Peer, GL/PL, Project manager, and senior managers. For CQA nominations should be selected from MQCA awards winner only.

2.1.7 Evaluation Criteria:         Group HR/SBU HR initiates the process by soliciting the nominations for the respective awards. The committee headed by the SBU head does the first level scrutiny at SBU level. These nominations are then sent to the Corporate HR for further processing. Corporate HR shall constitute a committee to scrutinize received nominations from all SBUs. The committee is constituted of senior representative (C/SC/Mgrs) from each SBU and functions. A person not below SC level shall head the committee. The number of members should not exceed more than nine people. The final selection of Award winners shall be by the process of comparative evaluation of merits in relation to the set norms. The MG COM will approve the final list and Head- Human Resources shall make the announcement of Awards. 2.1.8 Distribution of Awards:      The Resident Director shall present SPA/EPA/BDA to the winners on the annual day and the SBU/ Department head shall present the Team awards. The CHR shall send the certificates for those who are onsite or transferred to different location through courier. Those absent at the award ceremony but are in India, get their certificates and citation through the CHR at their respective locations. The photographs of the award winners are displayed on the notice board, Intranet and is published in ‗Bit n PCS‘ The nominations of the missed out employees are filed in their respective personal files.

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2.1.9 Disbursement of the Award Amount:   Each award has a citation and a certificate. For BDA, SPA, EPA winners cheques for the value will be issued after the normal accounting procedure. The Cash award winner could also exchange their cash award against the appropriate gift they could select from the gift catalogue made available to them.

Numbers and Value of the Annual Awards Award BDA Cash Value (Rs) 3500 No of Awards Per annum 1 for all Software group together

SPA

6500

Maximum 4 per thousand employees covering all functions of the Company. This would not depend on no. of employees in SBU or Department. This award is for Individual‘s achievement

EPA

3500

Max. 2 per SBU/Dept employees covering all functions of the company

AQCA TA

6500 T shirts (no cash)

Max 1 in all software group together Max 12 teams covering all functions of the company

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2.2 Quarterly Awards (Monetary and Non monetary) These awards are given to encourage and appreciate the performance of the employees over a specific period. i.e. the quarter. 2.2.1 Valuable Contribution Award (VCA): Eligibility: An employee is eligible for the award if:     The person has contributed significantly to the specific activity or event. The person displays total dedication and put exceptional hard work to overcome an unexpected emergency or crisis situation. The person has provided valuable help on specific occasion going beyond his/her assigned responsibility The person has faced unusually difficult situation in the professional environment and has overcome them to the satisfaction of his/her superior.

2.2.2 Quality Contribution Award (QCA) Eligibility: An employee can win this award under: In Quality Control Role       The person has supported capturing of all defect data associated with testing. The person has uncovered significant defects in Work Products before delivery to customer In Producer Role The person has produced code which meets all defined standards The person has done appropriate test planning consistently No defect has been found in the code produced or impacted in his/her work within the scope of the assigned task.

2.2.3 Quarterly Team Award (QTA) Eligibility: This is a non-monetary award. Teams can qualify for this award if:    As members of the team has displayed proper coordination amongst each other, proper updating of each other, and chipping for the other person and high morale in the team. Work schedules have always been met during the period under consideration Innovative approaches were successfully adopted with well-coordinated efforts.

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

The size of the team should be more than 7 and the as a group the should have worked for more than 4 month or in the given quarter

2.2.4 Nomination As the quarterly awards are given throughout the year for each quarter, there is a separate nomination procedure.     The nomination for the quarterly awards could be received from Peer, GL/PL, and Project managers. The nominations should be solicited nearing the end of the quarter. Any employee or team can propose a person including him/herself in a prescribed format. The PL and PM add their comments and the filled forms are submitted to the SBU HR of the respective SBU 2.2.5 Evaluation Criteria:    A committee is constituted in the SBU who reviews the received nominations and finalize the list of the winners The three-member committee consists of the SBU/function head and two senior employees(C/SC level). The SBU HR forwards the final award winner list to the CHR who arrange for the award and citation. 2.2.6 Distribution of Awards: Since each SBUs have their respective nominations, most of the quarterly awards are given away as below:    The Quarterly awards are handed to the employees by the SBU head in the Group meetings The Announcement of the awards is made in the first week of the consecutive quarter. In case the employee is absent for the meeting he/she collects the award and its citation later from the SBU HR 2.2.7 Disbursement of the Award: All quarterly awards carry a citation and a certificate. For VCA winners the cash award could be reimbursed as against receipt for books or Dinner.

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Award

Value

No of Awards to be nominated Max 3 percent of software group

VCA

1000

employee strength and up to 2 percent of the employee strength of function in case of non software

QCA QTA

Revolving Plaque T shirts

Max 1 for each software group Max 1 team for each SBU

2.3 Ongoing Appreciation Awards (non monetary) Recognitions made throughout the year and rewarded instantly 2.3.1 Letter of Appreciation Eligibility: The letter of appreciation will be given when a person does a good job with efficiency and proper efforts. The respective reporting officer will give this letter to the subordinate. 2.3.2 Nomination    For letter of appreciation, Peers, GL/PL and the project manager could nominate the employee. The list is sent to SBU HR who prepares the letters and sends them to reporting officer. For Bravo Cards since it is given on the spot a stock of cards is made available to the reporting officers 2.3.3 Distribution of award:    In the Letter of the Appreciation, SBU HR after getting the nominees list prepares the letters and hand them to the respective reporting officer. The Reporting officer hand over the letter to the employee personally along with a memento. Corporate Administration department maintains a stock of mementos and the bravo cards on requisition of the SBU HR and hands it during the respective SBU/ group presentation.

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GLAXO-SMITH KLINE

Established in the year 1924 in India GlaxoSmithKline Pharmaceuticals Ltd. (GSK Rx India) is one of the oldest pharmaceuticals company. GSK worldwide  Our mission is to improve the quality of human life by enabling people to do more, feel better and live longer   We are a research-based pharmaceutical company We are the only pharmaceutical company to tackle the three "priority" diseases identified by the World Health Organization: HIV/AIDS, tuberculosis and malaria      Our business employs over 100,000 people in 117 countries We make almost four billion packs of medicines and healthcare products every year Over 15,000 people work in our research teams to discover new medicines We screen about 65 million compounds every year in our search for new medicines We supply one quarter of the world's vaccines and by the end of February 2007 we had 23 vaccines in clinical development  In 2006 we donated 155 million albendazole tablets to help eliminate lymphatic filariasis (elephantiasis), making almost 600 million treatments in total  In 2006 our global community investment was £302 million, 3.9% of profit before tax

GSK India  In India, GSK is one of the market leaders with a turnover of Rs. 1500 crore and a share of 6.2 per cent [source: IMS Indian Purchase Audit (IIPA), August 2007]  GSK leads in several therapeutic segments - dermatology, anti-parasitics, hormones, and antiinfectives (source: IIPA, August 2007)  GSK has six products in the top 50 brands, and the top five GSK products are Augmentin, Zinetac, Calpol, Phexin, and Betnesol (source: IIPA, August 2007)

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

GSK‘s vaccines division is ranked first in a fast-growing vaccines market. Some leading products in India are Havrix, Varilrix, Hiberix, Engerix B and Tritanrix (source: IIPA, August 2007)



GSK India‘s R&D centre‘s at Thane and Nashik have been granted recognition by the Department of Scientific and Industrial Research, Government of India

 

The number of clinical studies conducted in India is rapidly growing across a range of therapy areas GSK India‘s social responsibility programmes focus on development of under developed villages, women and children , specifically in the areas of healthcare and education

Product Portfolio The GSK India product portfolio includes: Prescription medicines:        Therapeutic areas such as anti-infectives, Dermatology, Gynecology, Diabetes, Cardiovascular disease Respiratory diseases.

Vaccines:         Hepatitis A, Hepatitis B, Invasive disease caused by H, Influenza, Chickenpox, Diphtheria, Pertussis, Tetanus and others.

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Score card of GSK
What is recognition? It is the visible acknowledgement and appreciation of contributions made by teams and individuals This recognition program is:   Complementary to GSK employee compensation schemes. Aligned to the GSK recognition framework

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

Inclusive of range of approaches to recognize the contribution of teams and individuals, informal spontaneous ―thank you‘s‖ to formal recognition.

Who owns the award programme? This is a global programme, sponsored by David Pulman and owned by the business overall. At local level sponsored by their site or functional director and locally managed – usually by their HR department. There will also be involvement from their OE Champion.

What is recognized? The programme recognizes achievements which clearly exceed the normal performance expectations of a given role, both in what is achieved (business excellence) and how it is achieved (spirit behaviors and use of operational excellence principles). The scope of programme reflects all aspects of work, including exceptional customer service, financial, technical and project performance, as well as significant contributions to quality, regulatory compliance and safety, health and environmental performance. Achievement is recognized in 3 categories which specifically reflect the GSK spirit ‗ways of working‘:  Passion and Urgency: Actions that demonstrate commitment, focus and swift results- creating a focused, agile organization and meeting customer demand.  Innovation and Entrepreneurship: Actions that help create and sustain competitive advantage through well executed ingenuity, bright ideas well implemented, new ways of working, a fresh approach to problem solving and a ‗can do‘ attitude.  Performance and Improvement: Meeting or exceeding difficult targets and changing the way we work to bring about measurable improvements. Across all projects it is expected that work to be achieved with integrity and with a high regard for quality and their people.

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Wherever possible they expect projects to reflect the key principles of Lean Sigma:      Make value flow at the pull of the customer. Continuously improve knowledge in pursuit of perception. Specify value in the eyes of the customer. Identify the value stream and eliminate waste / variation. Involve, align and empower employees.

Lean Sigma methodology will help to provide them with the route to world class performance. Integrating the approach into their daily work is a key requirement to enable them to reach their challenging goals. These categories provide a flexible format allowing nominators to select and recognize a range of projects, activities or behaviors which help GMS achieve its mission.

Goals of the GMS Excellence Recognition   Thank employees for outstanding performance. Provide a consistent approach to timely recognition that can be applied across the whole GMS organization at team, supply division and business levels  Recognize desired behaviors of teams and individuals, in line with the GSK Spirit ‗ways of working‘ help GMS achieve world class performance   Help to formalize consistent good management practice and build a shared culture of excellence Recognize and encourage the sharing of knowledge and good practice across the organization.

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The structure of GMS Excellence Recognition Informal Recognition Everyone is encouraged to recognize their colleagues‘ achievements spontaneously, through the use of ‗Bravo! Cards‘, to acknowledge support from a colleague, or a job exceptionally well done. Formal Recognition Formal recognition enables the company to recognize exceptional performance by means of a congratulatory letter, a GMS certificate and token financial reward. The level of recognition for formal awards depends primarily on the scale of impact on their organization.    Work Area Award for excellent activities which impact on immediate work area. Site Award for excellent activities with site / function area impact. Supply Division / Functional Award for excellent activities with multi-site / function-wide area impact  GMS President‟s Roll of Honour for exceptional activities, typically with GMS wide or GSK-wide impact.

The process of recognizing GMS excellence Informal recognition Anyone can instantly recognize an individual or a team for a job exceptionally well done, by sending them ‗Bravo!‘ card. The cards will be held by HR department. There is no need of any authorization to send someone ‗Bravo!‘ card. Formal Recognition Nominating people for excellence awards Anyone can nominate an employee or team for an award at any level. To do this the nominator required the approval of his or her manager and, for budget purposes, the approval of nominee‘s manager.

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Nomination for a formal award is by completion of a nomination form available from the ERA website. The form includes:      Name of the nominee(s) and nominator Which category and level they are nominating Summary of what has been achieved, using available facts and data Details of supporting data wherever applicable Signature of nominator‘s supervisor.

The nomination form then goes forward to the award panel which is responsible for reviewing and authorizing awards, at each level. Typically the Awards Panel should include HR and OE represent

Step 1 Request the approval of your manager & the nominee’s manager to make a nomination

Step 2 Complete form and pass to HR, as local scheme owner

Step 3 HR collates information & sends all forms to Award Panel

Step 5 Awards given and knowledge shared

Step 4 Award Panel decides awards & informs nominators & successful nominees

Fig: Process of recognizing GMS excellence

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How GMS Excellence is recognized For all awards, a formal award approval process should be followed as shown in table below. It is recommended that the existing management teams carry out this task, although special award panels may be established if preferred. All award panels should include both HR and OE representation. Functional activities will normally be included within site and supply division reviews. Where a functional achievement is not related specifically to a site or supply division, it will be assessed within the functional structure.

In all instances nomination can either:   Progress upwards from the initial category, on recommendation of the review team, or Be entered directly into a higher category if selected by the nominator.

Awards can be granted as follows: Minimum Scale of impact Nominated by Approved by recommended award review frequency Colleague/ Manager Nominates person(s) to a manager for a work area Immediate work area award Work Area Manager Puts forward any nominations to the site award panel Work Area Manager Site / equivalent functional area Puts forward any nominations to the site Award Panel or   Site management / Award panel Reviews nominations and where supported Monthly  Sends recognition letter Arranges recognition & knowledge sharing event where site award & GMS certificate is given Event should also Monthly

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Functional Award Panel

include recognition of activities at work area level which received awards in that quarter  Where nomination is not supported, inform nominator

Supply Division/ Functional Award Panel Reviews nominations & where supported Site Mgt / Award team Supply Division/ equivalent functional area Puts forward any nominations for the supply division / functional award panel  Arranges recognition & knowledge event where awards & GMS certificates are given  Where nomination is not supported, inform nominator GMS Executive Team Supply Divisions & Supply Division / GMS – wide Functions recommend Annually  Sends recognition letter Quarterly or halfyearly

Functional Award Panel projects for PROH. or Leadership Team These are reviewed by the GMS Executive team. Where nominations are

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supported:  Successful nominations receive email from the president & a certificate  Projects are displayed on the GMS Community Panel (website)

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Sandoz Sandoz is a global generics leader. They save and improve lives by developing, producing and distributing high-quality, affordable pharmaceuticals. Sandoz medicines are now available to 90% of people worldwide. In addition to direct cost savings to patients, they contribute to the stability of healthcare systems worldwide and free up resources for new and innovative medicines.
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Sandoz is a Novartis company with a reputation for quality going back to its roots in the 19th century (foundation of Sandoz by Edouard Sandoz in 1886).

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The Sandoz Vision is to be the main provider of high quality, affordable medicines helping secure long-term access to healthcare for people around the world.

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Sandoz, a global generics leader, develops, produces and markets medicines that are no longer protected by patents, along with pharmaceutical and biotechnological active substances.

  

Sandoz offers patients more than 950 molecules in over 5000 forms worldwide. Sandoz medicines are available to about 90% of the world‘s population. Sandoz produces far more than just traditional off-patent products. We differentiate ourselves from other companies by developing and producing difficult-to-make generics that require an exceptionally high degree of expertise and knowledge and often involve complex high-tech delivery systems. These range from oral solids and inhalers through patch technologies to state-of-the-art biosimilars – approved versions of biopharmaceutical medicines.

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Sandoz has eight major global development centers and a worldwide network of production sites and technology centers of excellence.

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Sandoz reported generic pharmaceutical sales of USD 7.2 billion in 2007 and employs more than 23,000 associates in 130 countries.

Recognition at Sandoz Objective

 Bring in achievement orientation amongst employees and thus creating an organisation nurturing
performance and innovation.

 Reward & Recognition to high performers  Recognize every staff employee being a valuable asset of the organisation, by participating in &
celebrating his/her special moments.

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Eligibility

 All employees on the rolls of the company.
Policy Details 1. Rewards Reward will mean a token of appreciation of the contribution/performance of employees leading to significant improvements in the work processes and effectiveness. The employees would be rewarded for their contribution through four categories of awards as given here under:

A) Good Work Done B) Performers of the Quarter

C) Team Award D) Annual Awards

A) Good Work Done Appreciation of good work done within the Department, that sets an example for the rest of the employees, would be done by highlighting the contributions through an appreciation letter by the HOD and display on the Notice Boards. The HOD at his discretion may send the employee for a dinner for two/ present a gift (maximum Rs.350/-). The amount would be given in the form of reimbursement. Intimation should be sent to the HR Department as per enclosed format (Annexure-1) to facilitate the reimbursement and publicizing the contribution. This award may be given as and when employees make such contributions. B) Performers of the Quarter Objective

 To Provide healthy competitive environment wherein employees are motivated to excel.  To identify high performers and nurture the excellence amongst them.  Recognize & Reward outstanding contributions made by an employee in achieving the
organizational objectives and goals.

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Qualifying Criterion These Awards are given for contributions that have a significant impact on the function/business of the company. HODs would identify the Top Performers based on the outstanding performance/contributions based on the following factors: (i) Quality & Innovation: Suggesting process improvements leading to improvements in quality, devising new ways of working in the organization that result in time saving or easier work processes. (ii) Cost: Suggestions/actions which result in substantial savings to the company

(iii) Delivery: Consistently exceeding the set targets. (iv) Customer Orientation: Going out of way to help customers and meeting their requirements, reflecting extraordinary service orientation to achieve customer satisfaction. (v) Revenue Generation: Suggesting new ideas that lead to increased revenue.

Procedure for Nominations 1. This award is for the individual performance of the staff. 2. These nominations should clearly bring out contributions of the employee in details; explaining his/her efforts and results achieved as per enclosed format (Annexure – II). 3. The nominations would be discussed in the management Committee The results should be described in terms of benefits that may have accrued to the company.. 4. A second nomination during the same financial year for reasons of repetitive exceptional performance could be possible under the scheme. 5. The award would consist of a Certificate signed by MD and an amount of Rs.1500/- payable by cheque as token of appreciation. 6. The performers of the quarter shall be publicly recognized including insertions in the company newsletter. The HR head of the factory shall announce the names in the open house. The name shall also be displayed on the notice board.
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C) Team Award As and when any cross-functional team working on an assignment exceeds the requirements laid down for the work or achieves a milestone, the team may be sent out for a dinner or an outing subject to financial ceiling of Rs.2500/- for each such occasion.

Procedure for Team Award The contributions shall be highlighted by the team leader to the HR Department on the prescribed format (Annexure-II) enclosed for the purpose. The HR Department, on receiving the complete form, shall obtain the approval of the management Committee on the same and process for the award.

D) Annual Award Objective The purpose of this award is to recognize the ―Best Performer‖ of the year. The annual award would have two categories. Procedure 1. There would be one award in this category. The nominations would be from amongst the quarterly award winners. 2. HR Head would make the presentation of the nominated persons for the PIIL Annual Award to the PL forum to discuss the nominations before announcing the final award. 3. This award would consist of a certificate signed by the MD along with a cheque of Rs. 10,000/- or a three-day holiday package to any holiday resort, subject to an expenditure ceiling of 10,000/-. 4. A copy of the certificate would be placed in the personal file along with an insertion in ―PIILvani‖ & the name shall be displayed on the notice board. 5. The award would be given on 1st May every year. Rs.

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2. Recognition Objective The purpose of recognition is to contribute to the happiness of the employees by participating and celebrating in their special moments. Birthday: The employee would be greeted by a Birthday Card & bouquet on the day of his/her birthday by the HOD. A cake cutting function shall be held on the last birthday of every month. Wedding: On the occasion of the wedding of the employees or their children, a gift cheque of Rs. 1100/- would be presented to bride/bridegroom along with a bouquet. Wedding Anniversary: The employee would be greeted by an Anniversary Card and a special leave for the occasion. Acknowledging Good Performance of the Child / Children in School: Good performance of the child/children (maximum two) of employee‘s upto level 5 will be recognized by awarding an amount as per the existing PIIL Scholarship Scheme. Procedure for Recognition
  

The HR Department will maintain the database required for the execution of this policy. For the purpose of Birthdays, the date as recorded at the time of joining the company shall be considered. In case of marriage of an employee or his/her children, intimation should be sent to the HR Department well in advance to facilitate the presentation on time.

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The performance of the child/children of the employee should be communicated to the HR Department alongwith the supporting documents. The cheque, as per the entitlement, will be made only in the name of the child/children and will be paid annually for the previous academic year.

General

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The same activity / contribution shall not be awarded twice. Any activity / contribution which has been awarded in the past will not be considered again even if same is done afresh.

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The management reserves the right to alter, modify or withdraw this policy at anytime at its sole discretion.

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TAJ Hotels
Introduction In March 2001, The Taj Group launched Employee Loyalty Program called the ‗Special Thanks and Recognition System‘ (STARS). STARS was an initiative aimed at motivating employees to trans cend their usual duties and responsibilities and have fun during work. This program also acknowledged and rewarded hard working employees who had done excellent work The Star System The STAR system (STARS) was the brainchild of Martyris. The system was developed in accordance with Taj‘s core philosophy that ‗happy employees lead to happy customers.‘ STARS, operative throughout the year (from April to March), was open to all employees across the organization, at all hierarchical levels. It aimed to identify, recognize and reward those employees who excelled in their work. STARS was actively promoted across the group‘s 62 chain of hotels and among its 18,000 employees glo bally, out of which 15,000 were from India. STARS had five different levels. Though employees did not receive any cash awards, they gained recognition by the levels they attained through the points they accumulated for their acts of kindness or hospitality. ‗Level 1‘ was known as the ‗Silver Grade‘. To reach this level, employees had to accumulate 120 points in three months. To attain ‗Level 2‘, known as the ‗Gold Grade,‘ employees had to accumulate 130 points within three months of attaining the silver grade. To reach ‗Level 3‘, called the ‗Platinum Grade‘, employees had to accumulate 250 points within six months of attaining the gold grade. To attain ‗Level 4‘, employees had to accumulate 510 or more points, but below 760 poi nts, to be a part of the Chief Operating Officer‘s club. ‗Level 5‘ which was the highest level in STARS, enabled employees to be a part of the MD‘s club, if they accumulated 760 or more points. Points were granted to employees on the basis of parameters like integrity, honesty, kindness, respect for customers, environmental awareness, teamwork, coordination, cooperation, excellence in work, new initiatives, trustworthiness, courage and conviction, among others. Suggestions by employees that benefited the organization fetched them significant points. Such suggestions in each hotel of the Taj Group were examined by the General Manager, HR Manager and training manager of the hotel the employee worked in. The suggestions could also be posted on the web, which were constantly monitored. Employees could also earn points through appreciation by customers, ‗compliment -a-colleague‘ forums and various suggestion schemes. Employees could also get ‗default points‘ if the revi ew committee did not give feedback to the employee within two days of his/her offering a suggestion for the betterment of
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the organization. In such cases, the employee concerned was awarded ‗20 default points.‘ Hence, in an indirect manner, the system compelled judges of the review committee to give feedback to employees as early as possible. STARS help employees work together as a team and appreciate fellow employees for their acts of kindness and excellence. It enhanced their motivation levels and led to increased customer satisfaction. In one case, a bellboy in one of the group‘s hotel who received an American customer went out of his way to care for the customer. Noticing that the customer, who had arrived late at night, was suffering from cold, he offered to bring him a doctor. However, the customer refused the boy‘s offer. The bellboy then, on his own, offered a glass of warm water mixed with ginger and honey, a traditional Indian home remedy for cough and cold. The customer felt surprised and also happy at the bellboy‘s gesture. He left a note of appreciation for him, which added to his existing points. According to the number of points accumulated, employees would receive a star, which could be pinned on to their coat. When a certain number of points were collected, employees received gift hampers, cash vouchers or a vacation in a Taj Hotel of their choice in India. The winners of STARS were felicitated at a function held in Taj, Mumbai. The winners‘ photographs were displayed on a big

screen at the function and they received awards given by the MD of the Taj Group. This awards ceremony significantly boosted their morale. The STARS program had generated lot of attention among the employees at the Taj Group. During the initial phase, not every hotel seemed to be serious about adopting STARS, but after the first awards ceremony was conducted, every hotel in the group reportedly became very serious about the implementation of STARS. Reportedly, customer satisfaction levels increased significantly after the implementation of STARS. Commenting on the success of STARS, Martyris said, ―After the campaign was launched, a large number of employees have started working together in the true spirit of teams and this helps us value our human capital. There are stars all around us but very often we look only at stars outside the system. Many employees do that extra bit and go that extra mile, out of the way to dazzle the customer satisfaction with employee recognition. Employee recognition is, hence, directly linked to customer satisfaction. It is recognition for the people, of the people and by the people.‖ STARS was also used by the group as an appraisal system, in addition to its regular appraisal system. Suggestions made by employees of the Taj group under the STARS After the ‗STAR‘ initiative was launched, the following suggestions were made by Taj Group employees and accepted by the organization:

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• Name of employee: G.Murthy Level: Silver level Location: Taj Krishna, Hyderabad. Suggestion: It is suggested that cars owned by in-house guests and parked in our hotel overnight should be cleaned and a small note left behind for the guest saying, ‗Your car has been cleaned.‘ This act will dazzle and delight our guests. • Name of employee: P. Makhania Level: Silver level Location: Taj Mahal, Mumbai. Suggestion: Room No 287 is kept as or designed for handicapped/disabled people. I suggest we keep a bulb, which flickers when someone rings the bell (this for a guest who is deaf but not blind). It could be just like the housekeeping corridor bulb. Employee Recognition Programs In Practice In today‘s highly competitive global economy, many organizations are under severe cost pressure. They‘ve responded with layoffs, wage freezes, and increasing employee work loads. Employees, in turn, are feeling overworked and stressed out. This environment makes recognition programs particularly attractive. Why? Because recognition provides a relatively low-cost means to stimulate employee performance. It shouldn‘t be surprising, therefore, to find that employee recognition programs have grown in popularity. A 2002 survey of 391 companies found that 84% has some program to recognize worker achievements and that four in 10 said they were doing more to foster employee recognition than they were just a year earlier. A recent study conducted by the Gallup, identified employers recognition as one of the twelve key dimensions that describe great workplaces.

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Symantec India
A unique employee recognition initiative called Tech wiz has been rolled out to recognize contributions to technical activities in Symantec beyond the boundaries of routine work. The basic idea is to award tech points to individuals for various technical activities, which can be redeemed later. These points accumulate over time and serve as a measure for the total extra-curricular technical contribution of a person. Two kinds of rewards are given to employees through this program: material rewards like T-shirts, iPods, gift vouchers, etc. status rewards like auto-invites to high profile Symantec events- Inventor awards, breakfast with global leaders and trips to cutting edge. For active Tech Wiz performers, Tech Wiz Platinum Star, Tech Wiz Gold Star and Tech Wiz Silver Star titles are conferred. An employee can accumulate these Tech Wiz points by engaging in two kinds of activities: standard activities (pre-decided under Tech Wiz program and offering participation in programs like cutting edge, Road to cutting edge, Technology Forum Activities) and non-monetary activities (not pre-decided and those an employee thinks worthy of recognition). Tech Wiz is independent of the appraisal system and the managerial hierarchy. Most, if not all the details of the program are decided and administered by the people who have accumulated maximum Tech Wiz pointsi.e. those who are most active in Symantec Tech Community. Symantec also has Quarterly Awards that recognize managers for exemplifying superior people management skills and best practices in bringing order and consistency to management process while helping the organization to adapt to continuous change. One type of Quarterly Awards honors an employee who has done outstanding work at his or her assigned job, helped others outside his or her normal area of responsibility, and extended extra effort or made personal sacrifices for the company. Quarterly Awards also recognize employees who exemplify strong leadership in championing and supporting excellence. Employees are rewarded for outstanding performance for reinforcing Symantec‘ values of customer-driven, trust, innovation and action through contributions beyond normal assignments, achievements not specifically addressed by other plans or programs, and efforts in service to all current or potential, internal or external, Symantec customers. Other than these, ongoing awards are granted for time-limited, focused achievements (for example, a project or special accomplishment) that clearly beyond an employee‘s ongoing, normal work assignments and objectives. Service awards are a method of recognizing employees for their continued service to Symantec and expressing appreciation for employees, talent, passion and dedication in making Symantec successful.

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NIS Sparta The reward and recognition policy at NIS Sparta, or ‗RECO‘, as they call it, recognizes exemplary performance and contribution of NI Sians. The focus is on recognition on multi-dimensional contribution at individual, departmental and organizational levels, in the form of both monetary and non monetary rewards. Objectives of ‗RECO‘ are to acknowledge and promote achievement of individual and team objectives; to improve employee productivity and quality of work; and to improve customer service. Individual recognition programs include appreciation letters, citations, gift vouchers and paid vacations at resorts. Team achievement celebration occurs in the form of quarterly team celebrations (lunch/dinner/tea party and movie). Team pictures along with articles on the team‘s achievement are published in the company newsletter. Excellence Club is awarded to five NI Sians who demonstrates adherence to the core values of learning and innovation, thus making outstanding contributions that impact profitability, customer satisfaction, leading to substantial financial impact in a year. As a token of appreciation for their outstanding achievements, the recipients of these awards attend a regional, Asian or international conference or a workshop. Winners of this award are portrayed as Brand Ambassadors of NIS Sparta. Pathfinder award is given to any business team member who demonstrates exemplary performance in getting value of orders. Employees can avail of a 3days and 2 nights stay at a resort or premium hotel within the city or around with family. An appreciation letter is also given to the employee mentioning his specific achievement. The Service Tenure Award recognizes an individual‘s long service and commitment and is given to employees who have completed two, fie, ten, fifteen, or twenty years of a continuous service with NIS Sparta. The award comes in the form of gift vouchers for the value as per the category of tenure.

First Advantage First Advantage‘s Allegiance Program recognizes tenured employees through cash benefits, merchandizes and certificates on completion of specific tenures in the organization ranging between 1 year to 7 years. Performance-based variable pay over and above the fixed salary recognizes and rewards high-performing individuals within the organization. Shift Allowance for working in staggered shifts benefits employees who work in unconventional timings. Zero Attrition Incentive rewards supervisors who maintain zero attrition in their respective teams. The award recognizes and honors supervisors who have directly contributed to
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company‘s talent management objectives through their resource management skills. Absenteeism Incentives are given on a quarterly basis to individual at the associate level for maintaining zero absenteeism. Scholarships are extended to employees for pursuing higher education which will add value to the organization through professional skills development. Pinnacle Awards Program recognizes individuals for performance related achievements in seven categories. The individuals receive certificates of commendation and are also felicitated by the leadership team at the Pinnacle High Tea Event. Accolades is a weekly recognition event for employees who have walked the extra mile to achieve organizational excellence or have received client appreciation. A letter from the MD is sent to family members thanking them for their support in the employee‘s success. Spot Awards are given to individuals on the operations floor. Peer appreciation is instantaneous and boosts self-confidence and morale. It promotes healthy competition amongst peer groups.

Haier Appliances At Haier Appliances, a Best Branch Award is given to the branch which achieves maximum sales turnover with minimum sales return and outstanding. Best Sales Branch Manager Award (for achievement of maximum sales turnover), Best Collection Branch Manager Award (to boost collection from market), Best Network Development Branch Manager (for the branch manager who has got maximum dealers or distributors and has retained old dealers), and Top 3 sales executive awards (based on overall performance of executives for target achievement and collection) are also awarded. Haier also has reward and recognition schemes for customer service, commercial, HR and production functions.

GE JF Welch Technology Center Management awards recognize individuals or teams for significant achievements towards

organizational/business goals that have a high degree of challenge/difficulty in execution. The amount varies to reflect the magnitude of the achievement. The larger amounts are intended to recognize the achievements that cut across organizational and technology lines in direct support of accelerating innovation and strengthening GE‘s competitive position. The Golden Globe awards are specific to the consumer and industrial business and each award is given out to one employee each month, whose project is rated to be the best in a particular month. Employees are

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required to make a one/two page summary of the project and present the same to the panel of judges from within the employees on different project teams. The project is judged based on its relevance to the business and how it exemplifies the GE Growth Traits of external focus, inclusiveness, imagination and courage, expertise and clear thinker. Gerald L. Philippe Awards represent GE‘s most prestigious employee volunteer recognition across the globe. All finalists receive recognition certificates. Each GE Business presents the top volunteers with special awards and $2,500.00 in cash grants to their favorite cause. GE Global Research Awards like The Coolidge, Hull, and Dushman and Whitney awards are the highest honors bestowed on individuals and teams for their technical contributions to the company. This is open to all GE Global Research employees across the four global research sites. Thanks to you Awards reward and recognize unusual and significant accomplishments/contributions over and above the normal expectations of an employee‘s assignment. An award is not intended to be granted to employees for a level of performance for which they are already being compensated. It is also not meant to be a substitute for a salary adjustment, promotion, hiring bonus, suggestion award, retirement gift or other related personnel action. Engineering Recognition Day is celebrated annually at JFWTC, in recognition of individual and team achievement, success and contribution to Aviation, Energy, Oil & Gas & Water and Process Technology businesses of GE Infrastructure. There are three categories of award for projects: product, technology and process excellence and four categories for individual excellence: Debutant, Playing Captain, Growth Leader and Enabler of the year. Awards are also given to the winners of the ERD theme contest and Cover page contest. GE Transportation- India Engineering Excellence Awards celebrate the achievements and milestones of the GE Transportation Engineering team in the year gone by. The awards are synonymous with the efforts of the team, the breadth and depth of the technology that the team works on, and the impact that they have had on GE‘s transportation business. These awards are based on four criteria: excellence in engineering, relevance to business objectives, enabling growth and performance. Each Center of Excellence in the Infrastructure Engineering Team nominates the Project of the Month. A technical panel consisting of senior engineers decides which projects get awarded based on certain criteria. The winning teams get a management award for their efforts. This program helps give visibility to individual contributors and at the same time, senior engineers get exposure to the breadth and depth of technology, beyond their domain. These awards are announced every quarter in an all-employee meeting.
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The GE India President Awards were instituted for the first time in 2006 and represent the highest recognition in India. The criteria for these awards are the growth traits, performance and leadership. Patent and publication awards recognize top patents holders and publication authors at the center by inviting them for an exclusive dinner with the leadership at the center in addition to the monetary awards they receive. JFWTC Annual Awards of Excellence represent the highest form of recognition for outstanding contribution by an employee at the center. The JFWTC awards are an epitome of innovation, excellence, creativity; leadership and more. There are five JFWTC awards each being conferred to an individual based on set of attributes defined. The awards have been named after renowned personalities who have earn their place of right in their sphere of work. A committee represented by employees across various teams at JFWTC have been formed that will be identifying the award winners. These awards are an endeavor to acknowledge and cherish the most distinguished among us and recognize breakthrough work by them. The committee has listed five categories of awards covering various fields and aspects of an employee: CV Raman Innovation Award, Ramanujan Young Achiever Award, Radhakrishnan Mentor award, JRD Tata Award for building reputation and Visvesvarayya Engineering Excellence Award. The process of finalizing the awardees involves business leaders submitting nominations based on criteria specific to each award and then finalization by a core committee represented by senior engineers/scientists and members of leadership team from various JFWTC business groups. Winners are not only given cash awards and a memento but also they get an entry into the JFWTC Hall of Fame! The GE Service Award is an exclusive ceremony that recognizes the long-term commitment of employees to the center. It is an event that every employee looks forward to in his/her career at the center as they dine with their families at the award ceremony with some of the finest entertainment in country.

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Freescale Semiconductor
Freescale‘s BRAVO! Recognition program provides timely, meaningful recognition to the employees. The program provides both informal and formal ways to express appreciation and acknowledge hard work and results. BRAVO! Informal recognition awards are non-monetary and must have a fair market value of less than $50. informal recognition includes peer-to-peer, employee to manager, or manager to employee. The formal recognition component recognizes more significant accomplishments or work that substantially exceeds the normal requirements of an employee‘s position. Using specific criteria, managers can award from $50 to $ 3,000 to an individual who has gone above and beyond. All BRAVO! Awards are intended to be spontaneous and discretionary. Approximately 4,850 employees received BRAVO globally last year. In order to support cultural difference between organizations and regions, Freescale encourages its various business and corporate groups to put their own spin on recognition. Some incorporate elements of the BRAVO! Program while others have developed their own unique processes. Many groups publicly recognize teams and individuals during monthly/quarterly meetings, presenting BRAVO certificates. At the corporate level, monthly leadership teleconferences regularly seek highlight outstanding examples of innovation, customer focus, exceptional teamwork and achievements of Indian employees.

SYSTIME
SYSTIME Quality Ace Award promotes the thought and understanding of quality across the organization and is given out every month to one individual. SYSTIME Annual Quality Award (conceptually based on Malcolm Baldrige Award) is an inter-unit team award given out annually to the best project or support team for a project ranked in terms of process adherence, quality and customer satisfaction among others. The award consists of a rotating trophy and certificates for winner and runner-up teams. In addition to Distinction Awards, Excellence Awards, Leadership and Management Style Award, Distinction Award for specific levels and functions, SYSTIME has a Champion of the Year Award, which is open for all categories. It emphasizes on exemplary and consistent performance both in employee‘s field of work and beyond assigned duties. The Extra Mile Club has been constituted to promote a culture of innovation. Ideas from employees are assessed and implemented based on their feasibility and benefits. The selection of the most viable idea is done by the CEO on a monthly basis and the originator of the idea is inducted as a member of prestigious

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Extra Mile Club. The selected SYSTIME gets a Welcome kit: a paper bag with a T-shirt, certificate and badge that says ―I have gone the extra mile!‖ He/she also gets a flag that is put up at his/her workstation with the same message. The special achievement is announced at the business meet and the above kit is handed over to the employee. The news is covered in the monthly employee newsletter, intranet and on all notice boards. A CEO communication announcing the winners is sent out. The originator of the idea is chosen to e a part of the team and implements the idea. Peer to peer appreciation or Caring SYSTIME program is a channel used by SYSTIMEs to appreciate their colleagues‘ timely help and care. Any SYSTIME who wants to appreciate his team member or his colleague fills up a ‗thank you‘ card designed especially for the program and drops it in a box. All forms are removed at the end of the month from the drop box. They are screened and top 3 appreciation forms are selected. The selected appreciation forms are announced during the business meet and also the winners are invited for a lunch with the senior management. Long Service Recognition or Wall of Fame is an attempt or a way to recognize the dedication and perseverance of the employees who have spent more than five years in the organization. To achieve this, framed pictures of the SYSTIMEs who have dedicated more than five years to SYSTIME are put up in the lobby area of the SYSTIME office building. For differentiation purposes, the entire lobby and reception area is painted ―SYSTIME‖ green. The picture sizes vary, depending on the number of years spent and depict the name and date of joining and are demarcated using the metal plates indicating the number of years. Wipro believes that reward and recognition systems are some of the fundamental ways of improvement motivational level. The company has a unique package called Encore, which is essentially a basket of nonmonetary rewards given to motivate employees and recognize excellent work performance. For example, award Feather-in-My-Cap, is an on-the-spot recognition of an effort awarded to a project or project team; Dear Boss recognizes the positives of a good boss, including technical, managerial, and leadership skills. Awards like Mastermind, which notes the most innovation solution or idea in Wipro, and The Wipro Hall of Fame recognizes superlative performers in different roles as well as superlative team performances. In NIIT, there is a practice of naming a conference room or office or training room after the name of the most outstanding employee of the year. The naming is done ceremoniously, the employee‘s family is invited, a cake is ordered; and all the employees assemble for the felicitation. At Federal Express, rated one of the best work workplaces, employee can get one of FedEx‘s 500 aero-planes named after his / her child. RPG managers give certificates to employees to facilitate small achievements and the good work done by them.

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Two of the most popular methods of recognizing employees are by giving gift certificates and cash rewards. The most common reasons for giving an award are length of service and exceptional performance. In 1998, Price-water House had a ―Thank You Store‿ for employees to select gifts and thank you cards for supervisors, managers, and office assistants. Johnson & Johnson has peer-to-peer recognition programs, where employees submit nominations on behalf of other employees, teams or oneself. All nominations are reviewed for a Merit Award and all Merit Awards are reviewed for the Chairman‘s Award. The Eureka Award at HCL Comnet is for the entrepreneurs who come up with the best business idea. The Value Creator Award is the most coveted and sought after among the awards given in appreciation of extraordinary individual initiative and innovation. Gotcha recognizes top performers and ranks them on merit. Special vacation packages are given to employees who excel in their targets. Eicher uses a mix of monetary and non-monetary rewards. The financial package helps in sustenance and basic needs fulfillment. The non-financial part helps in recognition and fulfillment of higher order needs. In the non-financial part, Eicher offers perks like study leave, trips, special training, challenging project opportunities, and flexible timings based on individual need. In India many companies like Larsen & Toubro, HLL, P&G, Century Enka and others encourage suggestion from employees on cost savings, energy conservation or quality improvement or increase in sales. The suggestions are periodically reviewed and few employees may get one time cash rewards based on the quantum of savings their suggestions can generate. This cash rewards system on suggestions is mostly up to junior management level. Some companies allow executives to make their own mix of salary packages. Some perquisites are offered on a use-or-lose basis. They cannot be monetized, this is to restrict monetization of perks which otherwise would increase cash outflows to unacceptable levels. In the year 2000, HICOM introduced three awards for employees who were nominated as ‗best leader‘, ‗best motivator‘, and ‗best employee‘. In the same year, the company also introduced the new idea of appreciating subordinates through flower-shaped cards. In addition, the HR department put a big wallboard titled ‗initiatives.com‘, which was filled with information on the initiatives taken by the employees in the workplace and the appreciation of their initiatives. The management as a policy honors an employee who completes five years of services in HICOM with a gold plated appreciation plaque.

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Table 1: Analysis of the data collected from different organizations

Name of the Organization
Patni Computers GSK ltd Taj Group of Hotels Sandoz Wipro Sun Microsystems Symantec NIS Sparta First Advantage Haier Appliances GE JF Welch TC Freescale Semiconductors Systime Monetary Rewards

Types of Rewards
Non-monetary Rewards Total Rewards             

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Analysis of findings
From the above table it is observed that very few companies rely on purely monetary or non-monetary rewards as against majority of the companies under survey follow the total reward system as a part of their reward and recognition program.

It is clearly seen that out of the list of 13 organizations, only one organization i.e. Haier Appliances reward their employees by giving monetary rewards whereas, three organizations like Taj Group of Hotels, Symantec and Systime do believe in rewarding their human capital through the medium of non-monetary rewards.

While most of the organizations like Patni Computers, GSK, Sandoz, Wipro, Sun Microsystems NIS Sparta, First Advantage, GE JF Welch Technology Center, and Freescale Semiconductor follow the ‗ Total Reward System‘. Instead of relying on any one type of rewards, these organizations recognize their employees by using a combined basket of both monetary and non-monetary rewards.

Therefore in this case H1 is accepted i.e. combination of rewards or „Total Reward System‟ is more effective.

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Recommendations and Suggestions  Organizations need to be more strategic about how to tie awards directly to results; how to reward employees for great work in a timely manner; and use a wider menu of options for employee recognition.  Ongoing recognition programs are needed to maintain interest levels of employees in each of these programs.  To enhance the enthusiasm at the work place employees should be engaged in such programs at regularly. Every employee recognition program should be designed in a way so that all employees are motivated and inspired to participate in them.  Simply putting together a basket of varied rewards does not make for an effective recognition program. Over-doing it losses its value and under-doing means that employees feel that they are not valued. It is important to have the right mix of monetary and non-monetary awards to deliver significant value to the employees and organization.  Proper attention should be given to the process of deployment of the programs. It is of utmost importance that the process should be consistent with clearly established evaluation criteria, be transparent and be managed effectively. The key test is when employees resonate with the type of the efforts getting recognized and feel part of the entire process

“Acknowledging a job well done can work wonders. But ignoring a job well done can actually lead to poor morale and disengagement. The potential for improved performance lies within every employee, not only in a few top performers.”

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CONCLUSION
It is very important to ensure that there is organization readiness, compensation expertise, employee readiness and system readiness, and at the same time recognizing that:
 

No ‗one-size-fits-all‘ model. The use of financial and non-financial components which are aligned to the reward strategy must inturn be aligned to, and support, the business strategy.



Each organization has different value chains, systems, processes and culture, so any proprietary solution needs to be tailored to and ‗owned‘ by the organization.



Each element and factor of the model should stand up to scrutiny as a reward or motivational mechanism in its own right.



What is important and motivating to one employee in an organization is different to another organization.



Suitable management skills exist to support the model. You know what your employees would want.

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Bibliography

Books referred:  Employee Rewards  Organizational Behavior  Organizational Behavior - By Michael Armstrong - By Fred Luthans, 5th edition - By S.P.Robbins.

Websites:  www.citeman.com  www.citehr.com  www.managementstudyguide.com  www.humanresources.about.com  www.expressindia.com  www.contentdig.com  www.patni.com  www.gsk.com

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