Rewards & recognition

IMPLEMENTATION OF REWARDS & RECOGNITION

SEHEME

SUBMITTED BY: ANITA KUMARI 12MBA05568 MBA [2012-14 (4rd Sem.)] Jamshedpur Women’s College

II

JAMSHEDPUR WOMEN’S COLLEGE

A

DISSERTATION REPORT

ON

“IMPLEMENTATION OF

REWARD AND RECOGNITION SCHEME”

UNDER THE GUIDANCE OF: SUBMITTED BY:

MISS.CHYTALI GHOSH ANITA KUMARI

Mr. UPENDRA DEEP

(Faculty MBA)

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CERTIFICATE

This is to certify that Miss Anita Kumari, MBA (4th semester,) of Jamshedpur women‟s college,

Jamshedpur has completed her project under supervision. She has taken proper care and

show utmost sincerity in completion of the project.

I certify that the project completed is as per the guidelines.

Head

Department of MBA

IV


DECLARATION

I, ANITA KUMARI do hereby declare that the project report entitled "IMPLEMENTATION OF

REWARD AND RECOGNITION SCHEME”, is submitted by me to the Jamshedpur Women‟s

College, Jamshedpur in the partial fulfillment of the requirement for the degree of Master in

Business Administration is an original piece of work and has not been submitted earlier to this

college or to any other institute for fulfillment of the course of study.

DATE: SIGNATURE:

PLACE:

V


ACKNOWLEDEGEMENT

Coming together is beginning, working together is success….

These words truly express all the joy and effectiveness of working together.

Completing this project was an arduous task and required all sort of field and table work.

This project could not have been a complete venture without the kind permission of

companies who allowed me to perform analysis and subsequent interpretations which form

the pillars of this project.

I would also like to thank the unsung heroes of this project. They are my mentor, parents,

friends, and siblings who took all pains and gave me all sorts of support for doing this

project.

Thanks to all and almighty.

Signature:

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ABSTRACT

“People may forget words; People may forget actions; but

people will always remember Respect, Recognition & Appreciation

given to them publical ly for their contributions....”

In a world characterized by increased global competition, and a rapidly

changing business environment, companies and organization are forced to

continuously reevaluate how they work. Since the f irst systematic studies of

manual labor began during the last century, the focus has changed from a strict

control of employees increased globalization, and the emergence of Human

Resource Management during the 80‟s. Research shows that employee

compensation can account for as much as 70 -80 percent of companies cost, but

also show that the value of a company‟s human capital can significantly affect

the market value of the company. Studies also show that managers see non -

monetary reward and recognition systems as very effective in reaching eight

out of ten organizational objectives.

In order for an organization to meet its obligations to shareholders,

employees and society, its top management must develop a relationship

between the organization and employees that will fulfi l l the continually

changing needs of both parties. At a minimum the organization expects

employees to perform reliably the tasks assigned to them and at the standards

set for them, and to follow the rules that have been established to govern the

workplace. Management often expects more: that employees take init iative,

supervise themselves, continue to learn new skil ls, and be responsive to

business needs. At a minimum, employees expect their organization to provide

fair pay, safe working conditions, and fair treatment. Traditional ly most reward

and recognition programs were vague and often given in response to a

manager‟s perception of when an employee performed exceptionally well. There

were usually no set standards by which exceptional performance could be

measured, and it could have meant anything from having a good attitude,

assisting another department, or being consistently punctual. In current

organizational settings this is no longer the case, as organizations understand

the great gains derived by linking rewards and recognition to their business

strategy.

Accordingly, this piece of work deals with all the relevant factors of

rewards and recognition, as a motivational tool to attract and keep employees.

This encompasses information regarding basic purpose of the program,

methods and techniques used to perform these, its implementation in various

organization and findings & drawbacks.

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TABLE OF CONTENTS

Pg. No.

Declaration.................................................................................................... III

Acknowledgement………………………………………………………………………………………… IV

Abstract………………………………………………………………………………………………………… V

SECTION-1

INTRODUCTION TO THE TOPIC ………………………………………………………. 1 - 2

Introduction

Objective

SECTION-2

LITERATURE …………………………………………………………………………………….. 3 - 17

Employee Reward and Recognition Systems

Reward v/s Recognition

Important factors In a Recognition Program

Procedures of Reward and Recognition

Types of Reward & Recognition

Methods of Rewards

Guidelines for recognizing and rewarding employees

Tools for recognizing employee performance in India

SECTION-3

GREAT PLACE TO WORK ………………………………………………………………….. 18 - 23

Great Place to Work

The GPTW framework

India's best companies in rewards and recognition, 2013

SECTION- 4

COMPANY IMPLEMENTATION OF REWARDS & RECOGNITION

SCHEME ……………………………………………………………………………………. 24 - 36

Rewards & recognition @ TML Driveline of Tata Motors

Rewards & Recognition At A-F Blast Furnace Of Tata Steel

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Pg. No.

SECTION- 5

RESEARCH METHODOLOGY …………………………………………………………. 37- 43

Introduction

Sources of data collection

Findings and analysis through data and graph

SECTION-6

FINDINGS & OBSERVATIONS ……………………………………………………… 44 - 46

Findings on rewards & recognition

Observations

SECTION-7

Conclusion …………………………………………………………………………………….. 48

Limitations ……………………………………………………………………………......... 49

Suggestions …………………………………………………………….…………………… 50

Bibliography …………………………………………………………………………………. 51

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SECTION-1

INTRODUCTION TO THE TOPIC

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INTRODUCTION

The reason behind doing this project is to examine

that, what is the role of rewards & recognition scheme in

employee motivation, how different companies applies

this scheme for the growth of its employees to achieve

individual and collective goals and also to examine any

drawbacks and hurdles in its way.

The basic for the efficient functioning of a company is that its employees

work hard and stay motivated no matter how tough is the client to deal with.

This can only happen if the employees find a driving force towards working in a

better way from within a company. And a company can reciprocate to its

employees in no way better than rewards and recognition. It has been

statistically proved that frequent indulgence of rewards and recognition along

with constant appreciation and most importantly constructive criticism have

been the reason for the employees of any company to work better than they

used to. By implementing different rewards and recognition, firms show that

the employee is not unnoticed and that their work is dearly valued.

Organizational success is driven by satisfied and motivated employees.

Satisfaction and motivation can be enhanced through rewards and recognition.

Recognizes and rewards are achievements that have a notable impact on a

program, to project an individual activity that contributes to the vision and to

the pursuit of excel lence.

OBJECTIVES

To analyse Reward and recognition programs, its goals and objectives.

Approaches to successful reward and recognition program design .

Techniques to measuring employee satisfaction with reward and

recognition programs.

Approaches to determining program success and performance .

Technologies that enhance the administration and communication of reward and recognition programs.

To know the employee‟s personal intention regarding rewards and recognition. To know the criteria to qualify the reward.

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SECTION-2

LITERATURE

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REWARDS AND RECOGNITION

“Rewards and recognitions are fine; but they should be

focused on showing people that we truly appreciate their

efforts.”

In a competitive market, more business owners are looking at

development in quality while reducing costs. This system deals with the

assessment of job values, the plan and management of pay arran gement,

performance management; pay for performance, competence or skil l , the

provision of employee benefits and pensions. Importantly, reward and

recognition system is also concerned with the development of appropriate

managerial cultures, foundation core values and increasing the motivati on and

commitment of employees. Reward system processes cover both financial and

non-financial rewards.

Employee Reward and Recognition Systems

In a competitive business climate, more business owners are looking at

improvements in quality while reducing costs. Meanwhile, a strong economy has

resulted in a tight job market. So while l businesses need to get more from

their employees, their employees are looking for more out of them. Employee

reward and recognition programs are one method of motivating employees to

change work habits and key behaviors to benefit a business.

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Reward vs. Recognition

Although these terms are often used interchangeably, reward and

recognition systems should be considered separately.

Employee reward systems refer to programs set up by a company to reward

performance and motivate employees on individual and/or group stage. They

are usually considered separate from salary but may be monetary in nature or

otherwise have a cost to the business. While previously considered the area of

big companies, small businesses have also begun employing them as a tool to

lure top employees in a competitive job market as well as to increase employee

performance.

Employee recognition programs are often combined with reward programs

they retain a different idea altogether. They are planned to provide a

psychological rewards. Though many elements of scheming and maintainin g

reward and recognition systems are the similar, it is helpful to keep this

disparity in mind, particularly for business owners interested in motivating

staffs while observance costs low.

Rewards and recognition are powerful tools for employee motivation and

performance improvement.

A reward is something given to a person or a group of people to recognize their

excellence in a certain f ield; a certif icate of excellence. Awards are often

signified by trophies, titles, certif icates, commemorative plaques, medals,

badges, pins, or ribbons . An award may carry a monetary prize given to the

recipient.

Recognition is public acknowledgement of person's status or merits

(achievements, virtues, service , etc.).When some person is recognized, he or

she is accorded some special status, such as a name, tit le, or classification .

Important Factors in a Recognition Program

1. The recognition program does not exclude any employee.

2. The employees know exactly what should be accomplished in order to

earn recognition and rewards.

3. The manager‟s success is tied to employee‟s success.

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Objectives

Any organizational reward system has objectives:

1. To motivate employees to perform to the fullest extent of their

capabilities.

2. To encourage employees to follow workplace rules and undertake special

behaviors beneficial to the organizations.

3. To instantly and innovatively recognise and reward employees for

exemplary individual and team behaviour.

Program Purposes

1. Recognize individuals and teams in a timely and effective way.

2. Provide a continuum of opportunities to acknowledge and recognize

members of the organization.

3. Recognize that each individual can make a difference.

4. Be a fair and flexible practice that is woven into the fabric of the org

culture.

Impact of Recognition Program

TO SENIOR MANAGEMENT

TO EMPLOYEES TO MANAGERS OF

PROGRAM

Increase

productivity

Improve attitudes

Build loyalty &

commitment

Generates positive

feedback

Empower

workforce

Assures efficiency

Satisfies

recognition needs

Creates positive

recognition

experience

Provides a wide

selection of

attractive,

personalised

awards

Builds

belongingness and

loyalty

Efficient

administration

Employee

excitement and

relations

Involves all

employees

Develops a

partnership with

the workforce

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PROCEDURES OF REWARD AND RECOGNITION

This section provides step-by-step, a general procedure to assist

managers in the development and assessment of recognition programs that are

beneficial and meaningful to your employees.

When managers and supervisors think about appreciation, they may

repeatedly suppose that one plan f its al l. Although each organization has

tactical goals to achieve, each work component within the organization has

distinct groups of employees who general ly require different motivational plan.

First, you require deciding which part of your work unit or agency that needs to

be motivated by achieving goals within the work environment.

Step 1.•TARGET YOUR AUDIENCE

• Target Your Audience

• Decide an appropriate name for the program

• Build a Budget

• Develop Criteria

• Determination of appropriate reward

• Communication of Program to employee

• Present the Awards

• Evaluate the Program

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Choose a declaration regarding the purpose of the program that can b e

clearly understood by employees. Decide an appropriate name for the program;

it should be compatible with the work unit and/or agency culture.

Budget includes, the costs of the promotional resources, the potential

number of recipients, the costs of the awards, the presentation type

(formal/informal; location), the number of citizens expected to attend the

reward presentation, the expenses of foodstuff, facil i ties, streamer, equipment,

etc.

These are the standard, frequently written, that participants need to meet

to succeed in the program. Be precise about the timeframe for which the target

must be completed. Create a measurement system that is understood by

employees, viewed as fair, and quantifiable. Consider how often progress is

reported (daily, weekly, monthly, quarterly). Send reports on a regular basis to

keep interest levels high.

Choosing awards is one of the most important steps in the success of

plan. If the reward selected does not motivate or inspire employees to achieve

the affirmed goal, the agenda may have less contribution and not achieve the

level of success expected. By intriguing into del iberation input from the

supervisors, employees, and/or the besieged spectators, you should be able to

decide the rewards that do or do not have connotation. Diversity is significant

because beneficiary have varying tastes and interests. There are a broad

Step 2.•DECIDE AN APPROPRIATE NAME FOR THE PROGRAM

Step 3.•BUILD A BUDGET

Step 4.•DEVELOP CRITERIA

Step 5.•DETERMINATION OF APPROPRIATE REWARD

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variety of awards that include financial awards, non-financial awards, and

recognition leave.

Program communication is necessary from the start up and should be

continuing. By connecting employees and supervisors i n the growth of the

program, firm can be on the right way. Mystery is a huge way to attract the

interest of employees. Throughout the plan, offer status updates via mail, E -

mail or Intranet to the employees.

It should be make sure that presentation matches the signi ficance of the

appreciation. One may prefer to use formal or informal means of appreciation.

However, as a manager, a person needs to believe the additional financial

impact of a formal presentation. Presentation should worthy of the reason that

it is for recognizing the employee.

It ‟s important to measure the success of recognition program by

considering both tangible and insubstantial results. Ask for comment from

upper management, and supervisors and employees (participants and non -

participants). Share out an employee appraisal su rvey prior to and during the

program initiative also may be valuable. Also, appraisal income rates and

attendance/delayed records should provide some indication of success of your

agenda as well. Consider demeanor a survey of your customers that may

indicate the success of your agenda. Official surveys or casual customer

criticism can provide the basis for your evaluation.

Step 6.•COMMUNICATION OF PROGRAM TO EMPLOYEE

Step 7.•PRESENT THE AWARDS

Step 8.•EVALUATE THE PROGRAM

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TYPES OF REWARD & RECOGNITION

Types of Rewards

Membership and seniority based rewards

Job status based rewards

Competency based rewards

Performance based rewards

Organisational rewards

Stock option

Profit sharing

Team rewards

Gain sharing

Special bonuses

Individual rewards

Commission

Merit pay

bonuses

Types of Recognition

Recognition events such as banquets or breakfasts,

Employee of the month or year recognition,

An annual report or yearbook which features the accomplishments of

employees, and

Department or company recognition boards.

Informal or spontaneous recognition

additional support or empowering the employee

Symbolic recognition

Latter of expressions (thanks...)

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METHODS OF REWARDS& RECOGNITION

Following are the common methods of rewards and recognition that can

be found in modern business organizations. Although not all these reward

methods are used by the same company, the companies can adopt the best

reward methods that suit the company culture and other company goals.

As an example, some companies do like to give all the benefits to the

employees as financials, while other companies like giving the employees the

other benefits such as insurance, better working environment, etc.

1. Basic Pay

Pay is an essential factor, which is closely related to job sat isfaction and

motivation. Although pay may not be a reward as this is a static amount, which

an employee will be paid every month, it wil l be considered as a reward if

similar work is paid less.

2. Additional Hour's Rewards

This is similar to that of overtime. However, it is paid to employees if they

put in an extra hour of work for working at unsocial hours or for working long

hours on top of overtime hours.

3. Commission

Many organizations pay commission to sales staff based on the sales that

they have generated. The commission is based on the number of successful

sales and the total business revenue that they have made. This is a popular

method of incentive.

4. Bonuses

Bonuses wil l be paid to employees, who meet their targets and objectives.

This is aimed at employees to improve their performance and to work harder.

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5. Performance Related Pay

This is typically paid to employees, who have met or exceeded their targets

and objectives. This method of reward can be measured at either team or

department level.

6. Profits Related Pay

Profits related pay is associated with if an organization is incurring a profit

situation. If the organization is getting more than the expected profits, then

employees receive an additional amount of money that has been defined as a

variable component of the salary.

7. Payment by Results

This is very similar to that of profit related pay. This reward is based on the

number of sales and total revenue generated by the organization.

8. Piece Rate Reward

Piece rate reward is directly related to output. The employees get paid on

the number of 'pieces' that they have produced. These pieces will be closely

inspected to make sure that quality standards are being met.

9. Recognition

Employees will not always be motivated by monetary value alone. They do

require recognition to be motivated and to perform well in their work.

10. Job Enrichment

This is a common type of recognition that is aimed at employees to get

motivated. Job enrichment allows more challenging tasks to be included in the

day-to-day tasks performed by the employee.

Working the same way every day may prove to be monotonous to the

employees. Therefore, there wil l be a lack of interest and the performance

drops.

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11. Job Rotation

Unlike job enrichment, job rotation refers to shift ing employees between

different functions. This will give them more experience and a sense of

achievement.

12. Teamwork

Teamwork is also considered as recognition. Creating teamwork between

team members will improve performance at work. Social relationships at work

are essential for any organization.

Healthy social relationships are considered as recognition to the employees.

This improves their morale and performance.

13. Empowerment

Empowerment refers to when employees are given authority to make certain

decisions. This decision making authority is restricted only to the day -to-day

tasks.

Though, by giving employees authority and power can lead to wrong decisions

to be made which will cost the company. So, Empowerment will not relate to

day-to-day functioning authority.

14. Training

Many organizations place a greater emphasis on training. This is considered

as recognition for employees. Training could vary from on the job training to

personal development training.

Training workshops such as train the trainer or how to become a manager will

give employees a chance to switch job roles and this will increase their

motivation levels.

15. Awards

This again is an important type of recognition that is given to employees,

who perform better. Organizations have introduced award systems s uch as best

performer of the month, etc., and all these wil l lead employees to perform

better.

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GUIDELINES FOR RECOGNIZING AND REWARDING

EMPLOYEES

A good recognition and reward system provides employees with three things:

A fair return for their efforts

Motivation to maintain and improve their performance

A clarification of what behaviors and outcomes the organization values

Here are 10 guidelines for recognizing and rewarding employees that companies

can use to help develop a successful program:

1. Involve employees in designing recognition program

There is no need of a lot of money to implement a meaningful recognition

program. Employees will take pride in a token award when it acknowledges

they did a good job that impressed their boss and peers. One way to give your

recognition program that kind of credibil i ty is to involve employees in creating

and administering it. If they design it, they wil l know exactly what they have to

do to earn rewards. They will know what their peers have to do also, so they

will respect other winners. They can also ensure that the program provides

everyone in the department with an opportunity to earn a reward.

2. Specify reward criteria

Too often, awards for things like "innovation," "showing init iative," and

"quality improvement" don't define what employees need to do to win. Without

that information, some employees wil l be stymied before they begin. When a

winner is announced, employees may attribute a co -worker's success to

favoritism or luck. Or, if offer an award on an ongoing basis, such as

"employee of the month," they may begin to think everyone's turn comes up

eventually.

3. Reward everyone who meets the criteria

Firm could announce a contest, urge everyone to participate, provide

plenty of reminders during the contest period, and announce the winner with a

flourish. For a longer-term impact, determine specif ic criteria, individual goals,

and reward everyone who meets them. Publicize each accomplishment and

XXIII


acknowledge each achiever. As long as the criteria are meaningful - the more

winners the better.

4. Recognize behaviors as well as outcomes

In most organizations, results earn rewards. That's appropriate, but it

lessens the opportunity to use recognition as a way to encourage poor

performers to improve. Since they don't produce many worthwhile results, they

seldom get rewarded. By recognizing small behavior shifts, arriving on tim e,

correcting mistakes, helping another person, firm can reinforce incremental

improvements. This doesn't mean firm should arrange a parade in someone's

honor just because the person final ly did what was expected. A sincere thank

you or some specific posi tive feedback is an appropriate response.

5. Individualize rewards

Give people what they want. Before giving a workaholic a week off, make

sure it won't feel l ike exile to that person. On the other hand, before reward

someone with an exciting new project, find out if the recipient will be thri l led

or feel burdened.

6. Say "thank you" frequently

"Thank you" is always timely. It is as useful to acknowledge small

successes, as it is to recognize major achievements. It validates the importance

of work people do. And it starts a chain reaction: Pretty soon more people start

saying it to more people, boosting morale and improving relationsh ips as well

as motivating people to work well.

7. Nurture self-esteem

When organisations give people positive, specific, and realistic feedback

about their potential, their efforts, and their accomplishments, their self -

esteem goes up. They develop into employees with confidence to set and meet

challenging goals, overcome setbacks, and self -manage their work.

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8. Foster intrinsic rewards

Intrinsic rewards are the good feel ings people get from doing their work;

enjoyment of the task, excitement about the opportunities, and pride in doing a

good job. Firms can't hand someone an intrinsic reward, but can create an

environment that encourages these feelings. Make sure people know their work

is worthwhile, treat problems as opportunities for innovation, encourage people

to try new ways of doing things, and let them know when they have done a

good job.

9. Reward the whole team

For team accomplishments, it 's important to reward the whole team, or it

can foster competition, not cooperation, among team members. Stil l , there are

always some team members who give more effort, and sometimes there are

members who coast along on the efforts of others. When the coasters get the

same reward as the doers, resentment occurs. Some companies are meeting

this challenge with a double-tiered system of team and individual rewards.

What ties it together is that for individual rewards, the assessors are fellow

team members.

10. Be careful

An organization publishes its values, and then rewards people for

behaving quite differently . Since one of the things rewards do is clarify for

employees what the organization really wants. If firm are looking for teamwork,

they must be sure that they aren't rewarding competition.

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TOOLS FOR RECOGNIZING EMPLOYEE PERFORMANCE

IN INDIA


Methods Percentage

Certificates 68%

Cash awards 56%

Mailers to all employee 61%

Plaques 44%

Mention on newsletter/Internet 49%

Gifts 39%

Gift certificates 37%

Team outing to celebrate achievements 46%

Leadership roles 34%

0%

10%

20%

30%

40%

50%

60%

70%68%

56%61%

44%49%

39% 37%

46%

34%


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SECTION-3

GREAT PLACE TO WORK

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GREAT PLACE TO WORK®

Great Place to Work® Institute is known

globally as one of the pioneers in the practice of

studying and recognizing the best workplaces.

Over 2.5 mill ion employees from over 7000

organizations in over 40 countries participate in

the Best Workplace study each year - making this

the largest global study of its kind in the world.

The mission of the Institute is to build a better

society by helping companies to transform their

workplaces. The Best Workplaces Study in India is inspired by the vision of

„Making India a Great Place to Work‟ . The institute has been conducting

workplace studies and has been recognizing the best companies in India for the

past 9 years now. Along with studies the Institute provides advisory and

consulting support for companies that wish to enhance their workplace

experience. “India‟s Best Companies to Work For ”, conducted by Great Place to

Work® Institute India and The Economic Times, is the largest study of its kind

in India.

The GPTW Framework

Globally, Great Place to Work® Institute has developed research in the

field of employee trust & engagement over the past 20 years. This experience

and learning has led to the

definition of a great workplace.

Research has shown that the

key to creating great

workplaces was not present in

any prescribed or predetermined

set of employee benefits,

programs and practices, but in

the building of high quality

relationships. Great Place to

Work® Institute defines a Great

Workplace as one where

employees trust the people they

work for, take pride in what

they do and enjoy the people

they work with. Thus, the

fundamentals of building a great

workplace rely on three, core

elements Trust, Pride and Camaraderie.

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INDIA'S BEST COMPANIES IN REWARDS AND

RECOGNITION, 2013 (In rank order)

The Economic Times, along with Great Place To Work® Institute, celebrated

the achievements of India‟s top 15 companies in the rewards and recognition

space, at an exclusive awards ceremony held on 26thApril, 2013 in Mumbai. Mr.

Harsh Mariwala, MD & Chairman, Marico Industries Limited, felicitated the

winners of India‟s Best Companies for Rewards and Recognition 2013.

Google India Pvt. Ltd

Intel Technology India Private Limited.

American Express India

NIIT Ltd.

Forbes Marshall Pvt. Ltd.

NTPC Ltd.

Ujjivan Financial Services Private Limited.

Marriott Hotels India Pvt. Ltd

Blue Dart Express Ltd

Godrej Consumer Products Ltd

InterGlobe Enterprises Ltd.

The Oberoi Group

Taj Hotels Resorts & Palaces

Philips Electronics India Limi ted

United Colors of Benetton India

„TRUE BLUE Partner Award ‟ for “Being a solid partner to the business.”

“360 Degree Award” is something given out to individuals for effective

stakeholder management.

Roll ing Bat/Rotating Flag to commend employees who have added value

to the business and this bat/flag is rotated on a quarterly basis.

Environmental Excellence Awards

These are awards which are given annually for outstanding employee

achievements in environmental, energy conserva tion and pollution prevention

programs and performance. Intel won the #1 place in Green500 and the CEO

Justin Rattner came to India especial ly to reward the Intel Labs team which

contributed to this award.

INTEL TECHNOLOGY INDIA PRIVATE LIMITED

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Volunteering Road Shows

Winners of the Social Initiatives Drive get to showcase their work to other

employees through road shows and this helps them form larger teams of other

interested collaborators, often with complementary ski l l sets to work on their

projects.

Blue Box Values Award

This “Peer recognition” can be used by any employee to recognize their

colleague for extraordinary display of any of the eight Blue Box values.

Safety Awards

During the safety Week celebration i.e. from 4th March to 11th March every

year the organizations holds Poster and Slogan competit ions, which are open to

members‟ and their children. Besides, there is also competit ion of innovations

and improvements done related to the safety in the organization. The Best

Slogan, Best Poster and best innovation are awarded on the last day of the

Celebration i.e. on 11th March.

Rewards for Internal Trainers

Many of the technical trainings are given to the members by the Inte rnal

Trainers. These trainers are doing something other than their role for the

betterment of the members and developing talent in the organization. Thus

every year these trainers are rewarded by gift coupons of varying amounts

depending on the number of t rainings they have delivered. Rewarding these

trainers is a kind of motivation for them to continue the best that they are

giving to the company.

Manveeyata Puraskar

It is given to employees who have exhibited random acts of humanity and

kindness at their unit and surrounding areas. An Appreciation Letter and a gift

of up to Rs 1,000/- are given.

AMERICAN EXPRESS INDIA PRIVATE LIMITED

FORBES MARSHALL PVT.LTD.

NTPC INDIA

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External Parity

Compensation surveys are conducted from time to time to benchmark

against the industry compensation trends. Ujjivan undertook a compensation

survey at the Industry level with MFIN (Micro Finance Institutions Network –

the Industry body similar to NASSCOM, CII), this year for compensation

benchmarking.

Special Thanks and Recognition System (STARS)

The Taj Group created a Special Thanks and Recognition System (STARS)

that l inks customer delight to employee rewards. Employees accumulate points

throughout the year in three domains: compliments from guests, compliments

from col leagues, and their own suggestions. Indeed, appreciation from one‟s

peers can be more powerful, and should also be considered in a broader

performance appraisal system. “Crucially, at the end of each day, a STARS

committee reviews all the nominations and suggestions.

Dronacharya Award for the Best Mentor

To recognize the mentor who has shown dedication & commitment to mentor

the early career potentials of PIC. The mentees and mentee‟s managers are

asked for feedback about the mentors. The weighted average of the feedback is

taken and the mentor whose rating is the highest is declared the winner. This

award is also announced during the Grand – town hal l which happens in the

end of the year. It consists of a Certif icate, memento & Cash award.

Communication and branding

SMILE UNLIMITED - It signifies Benetton India‟s commitment to recognize,

acknowledge and appreciate Benetton ians. Some current and past init iatives

under „Smile Unlimited‟ include wall of Fame, Pat on the Back, Core Value

PHILIPS ELECTRONICS INDIA LIMITED

UNITED COLORS OF BENETTON

UJJIVAN FINANCIAL SERVICES

TAJ HOTELS RESORTS & PALACES

XXXI


Champion Awards, and Spot Awards, Outstanding Awards, Biz Master, idea

Champions etc.

BENETTON UNLIMITED –This campaign was launched as a part of their

internal branding exercise and formulate defined platforms to various HR

initiatives. Hence all the Rewards & Recognition communication is driven

through the concept of SMILE UNLIMITED. Apart from recognizing the top

performers in public, there are communications send across the organiz ation

highlighting the winners and top performers who have been awarded.

XXXII


SECTION-4

COMPANY IMPLEMENTATION

OF REWARDS & RECOGNITION SCHEME

XXXIII


REWARDS & RECOGNITION

At TML Driveline of Tata Motors

XXXIV


TML DRIVELINE

Organizational Description

TML Drivelines Ltd. is a wholly owned subsidiary

of Tata Motors engaged in the manufacture of gear

boxes and axles for heavy and medium commercial

vehicles. It has production facilities at Jamshedpur and

Lucknow. TML Forge division is also a recent

acquisition of TML Drivelines. TML Drivelines was

formed through the merger of HV Transmission (HVTL) and HV Axles (HVAL).

Rewards and Recognition Scheme

The company organizes rewards & recognition program, so that there is something for

the employees to look forward too. Also, if brought under regular circulation, it will create

integrity amongst the employees for the company and for each other. In better words,

promoting rewards and recognition programs within a company for the employees helps foster

a healthy workmanship and promotes a better work environment.

TYPES OF REWARDS & RECOGNITION (For Non-management group)

Employee of the Month

Employees are nominated from their department on the basis of skil ls, 5s

knowledge, suggestions, CSR involvement, safety involvement and attendance.

Among them three employees are awarded every month with cash prize or,

equivalent coupons.

1s t Award – Rs. 1000 /-

2nd Award – Rs. 750/-

3 rd Award – Rs. 500 /-

XXXV


Employee of the Year

Among all 12 employees of each month, three employees are awarded as

employee of the year. They get selected on the basis of interview by related

panel.

1s t Award – Rs. 10000 /-

2nd Award – Rs. 7500/-

3 rd Award – Rs. 5000 /-

Multi Skill Benefit

In this scheme 1 extra increment in monitory is given to the employee, on

the basis of non-discipl inary action and non-suspension.

Pat on the Back

This is a certif icate program given to the employee for any commendable

work, by the line managers.

Photo Recognition

In this recognition scheme employee‟s photo is pined on departmental

notice board, for a best suggestion.

Birthday Celebration

It ‟s a kind of excitement program. On birthday of an employee, a Birthday

card is sent to him/her signed by the CEO.

XXXVI


REWARDS & RECOGNITION

At A-F Blast furnace of Tata steel

XXXVII


A-F BLAST FURNACES

Organizational Description

'A-F‟ BLAST FURNACE department is part of Coke, Sinter& Iron Divis ion. It is

located within the works area of the Tata Iron & Steel Co. Ltd., Jamshedpur.

The A-F Blast Furnace came into operation in 1911.

Rewards and Recognition Scheme

Rewards and recognition are powerful tools for employee motivation and

performance improvement.

It has been proved that frequent indulgence of rewards and recognition

along with constant appreciation and most importantly constructive criticism

have been the reason for the employees of any company to work better than

they used to. By implementing different rewards and recognition, company

show that the employee is not unnoticed and that their work is dearly valued.

It is a general verity that people tend to progress and improvise when they

are motivated. And a healthy and the right amount of motivation can come only

if the person is rewarded with some kind amidst his or her fellow colleagues.

Moreover, when people are motivated they develop a greater potential towards

being successful which in collective terms is very good and beneficial for the

company‟s growth.

XXXVIII


THE REWARD PROCESS

Identify behavior

worth rewarding

Present Instant

SHABASHI

Nominate for

Shabashi Diwas

Review by

Recognition Team

Presentation on SHABASHI DIWAS (1st Wednesday of the month)

XXXIX


REWARD PROCESS

The Chief/ Head/ Unit leader identifies the behavior worth rewarding.

The Chief/ Head/ Unit leader recognises the employee by presenting him the

"Instant SHABASHI" voucher on the shop floor/ work place itself.

The Chief/ Head/ Unit leader may nominate the employee/ team to the

Recognition Team for Shabashi Diwas reward in the prescribed format.

The Recognition Team comprising Chief/Head of the department, Manager

HR/IR and one line executive (by rotation) will review the nomination and

shortlist the employee/ team for the Shabashi Diwas reward.

Rewards, based on the decision of the Recognition Team, wil l be presented by

the Chief/Heads of the department on the Shabashi Diwas, the 1st Wednesday

of the month. The recognition function must be held at 3.00 PM on Shabashi

Diwas.

• Identify behavior worth rewarding Step 1.

• Present instant SHABASHIStep 2.

• Nominate for Shabashi Diwas Step 3.

• Review by Recognition Team Step 4.

• Presenting reward on Shabashi Diwas Step 5.

XL


TYPES OF REWARD

1. Instant Shabashi

Gift voucher worth Rs. 200/-

Can be redeemed at shops/ outlets as l isted on the voucher.

The department may procure a gift by redeeming the voucher and

present the gift instead to the employee

2. Shabashi Diwas reward

Special ly designed Certificate of Recognition;

Shabashi Diwas voucher(s).

Maximum reward Rs 2500/-

Gift vouchers in denomination of Rs 250/-, so that one can take a

pick at one or more of the fol lowing:

o Household articles/ gifts

o Dinner/lunch in restaurants

o Personal items

3. A Bonanza

A consistent performer may win “SPECIAL SHABASHI” A Holiday Package for

3 days/ 2 nights at selected locations .

XLI


S H A B A S H

Nomination Form for Shabashi Diwas Reward

To

Chief/ Head of Department

& Head of the Recognition team

Mr. (Name), (P.No.), (Designation) of (name of the section)

has shown exemplary behaviour in the area

_____________________

___________________________________________________

. The brief description of his work/ contribution is as follows:

___________________________________________________

___________________________________________________

___________________________________________________

_______________________________________________

He is nominated for the The Shabashi Diwas reward.

Name & Signature

Unit Leader/ Section Head

XLII


THE SPECIAL SHABASHI PROCESS

Consistent Performance

Nomination by Department

Review by Special Shabashi Team

Presentation of Special Shabashi

XLIII


The Special Shabashi Process

Each department may nominate one such consistent performer per year.

Nomination for Special Shabashi, along with one-page write-up giving the details of the contribution of the employee, may be sent to the off ice of VP (HRM).

A team comprising the Dy MDs, VP (HRM) and PEO wil l scrutinise and

shortlist individuals for Special Shabashi.

Budget

Each department will be al located a budget based on the employee strength.

About, 25% of the allocated budget may be util ised for Instant

Shabashi and the balance for the Shabashi Diwas reward.

Procurement of Gift Vouchers & Certificate of Recognition

Department should procure Instant Shabashi vouchers and Shabashi

Diwas vouchers corresponding to the budget allocation made and

Certificate of Recognition from Steel Workers Welfare society (SWWS)

by raising delivery order.

SWWS will supply the two types of vouchers with serial no. printed on

them and the Certif icate of Recognition to the department.

Department will verify the invoices and pass the bil l for payment

against the allocated budget through SAP giving the cost element and

departmental cost centre.

Facilitation by HR/IR Executives

Awareness

Presentation to all executives, JDC, any other forum

Publicity

By Corporate Communication – hoardings, intranet, house journals, MD on-line

By department -Poster- Notice Board, Canteen, Shop-floor

XLIV


Facilitation

Adherence to the guidelines (must not become a ritual, no quota

system)

Transparency/ fairness in administering the program.

Procurement of Gift Vouchers & Certif icate from SWWS

Organising Shabashi Diwas function – presence of other

employees, officers JDC members etc.

Tracking budget.

XLV


SECTION-5

RESEARCH METHODOLOGY

XLVI


RESEARCH METHODOLOGY

Introduction

Research means scientific and systematic search for pertinent

information on a specific topic. According to CLIFFORD WOODY research

comprises defining and redefining problem, formulation hypothesis or suggest

solution, collecting, organizing and evaluation data -making deductions and

reaching conclusion; and at last carefully testing the conclusions to determine

whether they fit the formulation of hypothesis.

Objectives of Research

1. To portray accurately the characteristics of a particular individual,

situation or group.

2. To test a hypothesis of a casual relationship between variables.

3. Research Methodology is a way to systematically solve the research

problem. It may be understood as a science of studying how research is

done scientifically. In it we study the various steps that are general ly

adopted by researcher in studying his is research problem along with the

logic behind them. It is necessary for the researcher to know not only the

research methods.

Research Design

A research design serves as a bridge between what has been established

(research objectives) and what is to be done while conducting the study to

real ize those objectives. It anticipates what a company wants in terms of

results and the analytical work on the gathered data that will convert into

useful findings.

This research is a descriptive research and, by and large, a field and desk

research which involved the following procedures:

1. Collection of data regarding rewards & recognition of workers. 2. Analysis of the data collected and il lustrating it through graph s and

thereby, interpreting the results. 3. Finally, forwarding certain recommendations and conclusions to the

company.

XLVII


Sources of Data Collection

The data collected for this research has provided the base for its analysis

and interpretation. The data collected was used to draft charts, i l lustrate

through graphs and thus provide for its adequate interpretation. In this

research, Primary data as well as Secondary data has been used.

Methods of Data Collection

Primary data was collected through personal survey method, and

secondary was collected through reports, magazines, Internet etc.

Methodological Assumptions

The data provided are assumed to be true and unbiased.

Plan of Analysis For the purpose of analysis the data collection from question has

been classified and tabulated.

Percentages have been taken to get a better picture of the

analysis.

The set of the analysis have been formed on the basis to draw

Conclusion and suggestions have been made on the inference

and analysis drawn.

Sample Design

Sample Size

The sample size of this survey is the working employees of A -F Blast

furnaces.

Primary Sources of Data

Analysis of all reward certif ication

Physical verification of related data.

Secondary Sources of Data Company profiles.

Previous year report.

Literatures.

Journals.

Internet.

Intranet.

XLVIII


FINDINGS AND ANALYSIS THROUGH DATA AND GRAPH

Analysis of data for employee reward at A-F Blast furnaces

Year No. of Employee get reward

2010 24

2011 13

2012 147

2013 72

SECTION no. of employee get reward

Cast House 18

HML 10

C BLST FURNCE 2

CANTEEN 3

ELECTRONICS(MEDE) 1

FIRE BRIGADE 3

HR/IR TRAFFIC 1

LABOUR GANG 1

MECH 6

OFFICE 1

OPERATION 3

LOCO CRANE 1

SGP 1

SPARES MNFRNG 1

TLRH 2

TRAFFIC 18

TOTAL 72

18

10

2 31

31 1

6

13

1 1 1 2

18

0

5

10

15

20

Cas

t H

ou

se

HM

L

C B

LST …

CA

NTE

EN

ELEC

TRO

NIC…

FIR

E B

RIG

AD

E

HR

/IR

…

LAB

OU

R …

MEC

H

OFF

ICE

OP

ERA

TIO

N

LOC

O C

RA

NE

SGP

SPA

RES

…

TLR

H

TRA

FFIC

No. of employee get reward (in year 2013)

no. of employee get reward

XLIX


FINDINGS AND ANALYSIS THROUGH DATA AND GRAPH

Beneficiary of scheme

managerial non-managerial

Beneficiary 0 30

Level of Satisfaction with reward & recognition scheme

very satisfied neither satisfied nor dissatisfied

not satisfied

Satisfaction with reward & recognition

27 0 3

90%

0%10%

Satisfaction with reward & recognition

very satisfied

neither satisfied nor

dissatisfied

not satisfied

0%

100%

Beneficiary of scheme

managerial

non-managerial

L


Important issues

How these are important extremely important

average important

not at all important

a. Receiving formal recognition for your effort? 15 12 3

b. Being recognised by management for your effort? 20 10 0

c. Being recognised by peers and co-workers for your effort?

20 10 0

d. Feeling that your work is valued and appreciated? 30 0 0

e. Bonus and other financial incentives? 17 13 0

f. Possibility to achieve promotion? 12 18 0

g. Challenging work task? 15 10 5

0

5

10

15

20

25

30

Important issues

extremely important

average important


12%

15%

16%

23%

13%

9%

12%

Important issues

receiving formal recognition

for your effort ?

being recognised by

management for your effort

?

being recognised by peers

and co-workers for your

effort ?

feeling that your work is

valued and appreciated?

Bonus and other financial

incentives?

LI


Rate of criteria as qualification for an award


Extremely important

Average important

Not at all important

a. Outstanding performance 5 20 5

b. Focus on innovation 3 15 12

c. Safety involvement 30 0 0

d. CSR involvement 22 8 0

e. Skills 18 12 0

f. Commendable work 15 10 5

6%

3%

32%

24%

19%

16%


outstanding performance

focous on innovation

saftey involvement

csr involvement

skills

commendable work

0

5

10

15

20

25

30


extremely important

average important


LII


SECTION-6

FINDINGS & OBSERVATIONS

LIII


FINDINGS ONREWARDS & RECOGNITION

Findings on Rewards

The fol lowing factors have been measured to infer about an organization‟s

internal equity and transparency of its rewards programs:

The parameters of rewards especially for incentives/performance bonus

and the amount of increments Wealth creation/wealth sharing

opportunities such as Stock Options/Restricted Stock Units/Stock

Purchase Plans, etc., made available to the largest number and

percentage of employees regardless of their level, function and tenure.

Grievance redressal /appeals that specifically deals with matters relating

to compensation, grade & salary fitment, performance rating and

increment/incentive/performance bonus and promotions.

Non-discrimination in compensation, benefits and rewards on the basis of

gender, caste, race, language and religion.

Incentives and performance bonus availabil i ty across all levels, roles and

functions.

Findings on Recognition

Recognition practices are more effective when they are frequent, targeted at

all employees and demonstrate a true sense of gratitude. This study measured

effectiveness of recognition practices defined as follows:

Variety of programmes to recognize and appreciate different category of

employees for different types of tasks, behaviours, efforts, achievements

for which they are recognized.

Frequency of programs represented by how often employees are

recognized.

Recognition provided to employees across levels, roles, functions and

locations. This includes employees in revenue earning & customer/client

impacting as well as enabling support functions.

Employees are recognized and appreciated for their loyalty.

Inclusiveness of recognition defined by the fact that it flows from and in

all directions – not only from seniors to juniors, but between peers, from

juniors to seniors, across functions, business units & locations.

LIV


Recognition and celebrations are done for not only work related efforts

and achievements/results, but for achievements which are beyond work

as well.

Achievements of family members are also recognized, appreciated and

rewarded publicly within the organization.

Family members are informed and thanked and/or invited to participate in

events and functions where employees are being recognized and

felicitated.

Personalization of gifts and forms of recognition is given to what the

recipient of recognition really l ikes.

Extent of feedback and inputs sought from supervisors, managers and

employees on what should be recognized and appreciated.

Observations

The strength of a rewards system depends on the relevance/appropriateness

of the metrics (how well you have defined them) and how accurately and

transparently they are measured and shared. Weight of the reward is equally

important. If it is meager or unattractive employees tend to lose interest; on

the other hand if they are unrelated to performance, employees do not bel ieve

in the fairness of the evaluation. The more attractive a reward, the more robust

the metrics should be to be able to drive the right behaviours and follow more

robust and transparent evaluation; otherwise it can have more negative

outcomes than positive.

All the standards and instructions for their rewards program are lucidly

documented with clearly defined objectives and evaluation parameters

and published through intranet, dashboard newsletters, etc.

Goals set, even if stretch goals, are real istic to motivate people to

perform.

Creating a Balancing Act - Rewards are neither too few that employees

find it diff icult to get them, and hence, are not motivated aspire for it,

nor too many that they become commonplace and stop to excite people

anymore.

Deploy risk and reward compensation systems to drive employee

development, team sharing, and teamwork excellence.

Develop standardized quality tools to measure cross -functional team and

manager performance.

LV


SECTION-7

CONCLUSION

LVI


CONCLUSION

Rewards and recognitions are equally important when trying to promote

performance and morale amongst employees. The above methods can be used

to motivate employees.

Since all the methods may not be applicable to the same organization, the

organizations should make sure that they choose the best rewards that suit the

organization.

The most effective ways to motivate employees to achieve the desired goals of

the organization include creating an environment with strong, respectful and

supportive relationships between the organization‟s managers/supervisors and

employees and a focus on genuine expressions of appreciation for specific

employee achievements, service milestones and a day -to-day acknowledgement

of performance excellence. In a nutshell, a positive employee re ward and

recognition strategy can be summed up by the following: nothing is better than

a sincere “thank you for a job well done.”

LVII


LIMITATIONS

Time was the most important constraint in carrying out this project.

During the research methodology process/time, it was difficult to col lect

information because of the busy schedule for their work.

Due to heavy workforce, it was real ly difficult for me to col lect

information from each and every worker.

There was scope of biased response. Employees could be biased

regarding opinions towards certain factors while answering the

questionnaire.

The data used for the study relies on what organizations have shared. It

is assumed that companies have provided accurate data for the purpose

of the study.

Data & inferences are based only on the information collected from the

companies that have participated.

LVIII


SUGGESTIONS

For effective implementation of rewards system organisations should:

Determine who will be eligible for each type of reward

Ensure that the new system has the support and ownership at all relevant

levels, particularly among people managers who have to spearhead the

implementation

Establish the reliabil i ty and the validity of the performance data that is

gathered to determine who gets rewarded and how much.

All the standards and instructions for their rewards program are lucidly

documented with clearly defined objectives and evaluation parameters

and published through intranet, dashboard newsletters, etc.

Develop standardized quality tools to measure cross-functional team and

manager performance.

Organisations must understand that recognition should not be limited to

achievements only. Thus, they have devised mechanisms and provided

employees with a platform to praise effor ts.

In addition to rewarding the permanent employees, organisations also

reward its contractors and vendors.

Organisations must ensure that the rewards are individualized. They

understand that these rewards will be valued by the employees most

when they cater to their personal needs/styles.

Organisations also involve family members and significant others at the

time of recognition to add personal touch and provide the family or

partners a sense of belongingness.

LIX


BIBLIOGRAPHY

http://www.luc.edu/hr/pdfs/eregSHRM.pdf

http://finmin.nic.in/index.asp

http://www.greatplacetowork.in/

http://www.24framesdigital.com/bestcompaniesinrnr/

http://www.greatplacetowork.in/publications/706-indias-best-companies-for-rewards-and-

recognition-2013

http://www.inc.com/encyclopedia/employee-reward-and-recognition-systems.html

http://www.haygroup.com/downloads/ww/misc/cfr_global_report.pdf

K.Aswathappa “OrganisationalBehaviour” pg.no, 291-294.

Azhar kazmi “ Strategic management and business policy” pg.no. 375-377.

http://www.luc.edu/hr/pdfs/eregSHRM.pdf

http://finmin.nic.in/index.asp

http://www.greatplacetowork.in/

http://www.24framesdigital.com/bestcompaniesinrnr/

http://www.greatplacetowork.in/publications/706-indias-best-companies-for-rewards-and-recognition-2013

http://www.greatplacetowork.in/publications/706-indias-best-companies-for-rewards-and-recognition-2013

http://www.inc.com/encyclopedia/employee-reward-and-recognition-systems.html

http://www.haygroup.com/downloads/ww/misc/cfr_global_report.pdf

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Rewards & recognition

Leadership & Management