Submitted To,

Md. Awal HossenLecturer

Department of Business Administration

LEADING UNIVERSITY

Ehsan Ahmed Chy.1201010230

Syed Ali Hasan1201010248

Mahmudul Karim1201010205

Masum Hussain1201010202

Abdul Motin1201010219

Abu Ahmed Shahib1201010247

Something that incites or has a tendency to inciteto determination or action

What is Incentives ??

Requirements of Incentive Plans

• The first concerns the procedures and

methods used to appraise employee

performance.

• Second requirement is that the

incentives (rewards) must be based on

performance.

are said to exist where an agent can expectsome form of material reward

Types of Incentives

Financial incentives

are said to exist where a particular choice is widely regarded as the right thing to do

Moral incentives

are said to exist where a person can expect that the failure to act in a particular way will result

Coercive incentives

such as curiosity, mental or physical exercise, admiration, fear, anger, joy, or the pursuit of truth

Natural Incentives

which motivate anindividual personthrough their tastes,desires, sense of duty,pride

the distinction above wasmade for the purpose ofunderstanding andcontrasting the socialincentive structures

Personal Incentive

Social Incentive

Other Types of Incentives

1. To increase productivity

2. To drive or arouse a stimulus work

3. To enhance commitment in work performance

4. To psychologically satisfy a person which leadsto job satisfaction

5. To shape the behavior or outlook ofsubordinate towards work

6. To inculcate zeal and enthusiasm towards work

Importance of incentives

Money or another kind of payment that is given orreceived for something that has been done or that isoffered for something that might be done.

What is Reward ??

Results• Learning• Personal development• Stable, strong job performance

Properly administeredrewards

Timely and instructivefeedback

EffortAbility

Feedback and Rewards Are Important Links In the Job Performance Cycle

Types of Reward

Bonuses motivates the employee to putin all Endeavour‟s

Types of Extrinsic Reward

Is achieved after hard work and effort of employees

Mainly presented as a token of appreciationfor an achievement

This can be done by elevating the employeeto a higher stage

Recognition

employee’s performance by verbal appreciation.

Trust

vital aspect between living individuals

Feedback

offers guidance to employees whether positive or negative

Types of Intrinsic Reward

Schedule of Reward

Fixed Ratio

Variable Ratio

Fixed Interval

Variable Interval

Types of Intermittent Reinforcement

• Long-term incentive programs (last longer than 6 months) increased employee performance by 44%

• Intermediate length incentive programs (last 1-6 months) increased employee performance by 30%

• Short-term incentive programs (last less than 1 month) increased employee performance by 20%

Length of Reward Program

1

Keep talented employees from leaving

Motivate employees to perform optimally

Steps for Launching an EAP Program

Foster personal growth and development

Increase employee satisfaction with their work

2

3

4

5 Attract talented employees

Reward’s Effect on Stages of Work

• Attract talented employees.

• Motivate employees to perform optimally.

• Foster personal growth and development.

• Increase employee satisfaction with their

work.

• Keep talented employees from leaving.

Importance of Reward System

What is Benefit ??

Objectives of Benefit Programs

• To Improve Morale

• To Meet Health and Safety Needs

• To Attract Good Employees

• To Reduce Turnover

• To Reduce Unionism

• To Maintain a Competitive Position

• To Enhance the Organization's Image

Vacations and Holidays

Parental Leave

Supplemental Unemployment

Benefits

Supplemental Pay Benefits

Unemployment Insurance

Sick Leave

Severance Pay

Pay for Time Not Worked

Employee Benefits Required by Law

TYPES OF BENEFITSTOTAL PERCENTAGE

(All Companies)

Payments for vacations, sick leave, holidays,

etc.5.0%

Legally required payments 8.0 %

Medical and medically related benefit

payments6.0 %

Retirement and savings (employer’s share) 7.0 %

Paid rest periods, lunch periods, etc. 3.0 %

Miscellaneous benefits 1.0%

Life insurance .5%

Total employee benefits as percent of payroll 30.5%

Typical Cost of Benefits