SBIT Summer Project Report Template

8/9/2019 SBIT Summer Project Report Template

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Role of Incentive Scheme in

Siemens

Summer Training Project ReportSubmitted in partial fulfillment of the requirements

For the Degree of

Bachelor of Business Administration BBA!Date of Submission" .

Submitted b#" Shelja Sapra

$lass" BBA (4 th Semester)

Roll %o" BBA/11/912

&mail" [email protected]


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Role of I ce ti!e Scheme i Sieme s

Facult# $omments

"ame of #ac$lt% & 's. i ha Sharma

Sig at$re of #ac$lt% &

*ate of +rese tatio &

*ate of ,hec-i g &

,omme ts &

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Acknowledgements

I 0ish to e te m% profo$ gratit$ e to 'r. i o *har3 ea of the 'a ageme t *epartme t3 Shri

Bal0a t I stit$te of ech olog% for pro!i i g all the 0hole hearte co5operatio a i spiratio 0hich

ma e me to complete m% project.I also e te m% gratit$ e to m% trai er 'rs. S$shmita 'ishra Sahoo for her !al$a le s$ggestio s time

to time.

I am i e te for pro!i i g this opport$ it% at Sieme s 6imite to $ ergo m% project at their esteeme

orga i7atio .

I am gratef$l to the respo e ts for their -i s$pport 0itho$t 0hom3 this st$ % 0or- 0o$l ot ha!e

ee possi le.

I 0o$l li-e to place m% profo$ tha -s to 's. i ha Sharma for their !al$a le s$ggestio s a

co$ seli g $ri g the e ec$tio of the 0or-.

Shelja Sapra BBA'((')(*

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TAB+& ,F $,%T&%TS

( I%TR,D-$TI,%................................................................................................................................ ..

1.1 S I8"I#I,A", :# S ;*< ....................................................................................................... =

1.2 R I > :# ?IS I"8 6 I RA ;R ............................................................................................... 4

1.= , :", + ;A6I A I:" ....................................................................................................................

1.4 # :,;S :# +R:B6 ' ...............................................................................................................

1.C : BD , I S :# S ;*< ...........................................................................................................9

1.


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( Introduction

$ma Reso$rce 'a ageme t ( R') is the f$ ctio 0ithi a orga i7atio that foc$ses o recr$itme t

of ma ageme t of a pro!i i g irectio for the people 0ho 0or- i the orga i7atio . $ma Reso$rce

'a ageme t ca also e performe % li e ma agers.$ma Reso$rce 'a ageme t is the orga i7atio al f$ ctio that eals 0ith iss$es relate to people s$ch

as compensation@ incentives@ hiring@ performance management@ organi ation development@ safet#@

ellness@ benefits@ emplo#ee motivation@ communication@ administration@ and training.

here are $m er of challe ges i the I ia I $str% 0hich reH$ire the serio$s atte tio of R

ma agers to fi the right ca i ateJ a $il a co $ci!e 0or- e !iro me tJ 0hich 0ill e e eficial

for the emplo%ees3 as 0ell as the orga i7atio . he i $str% is alrea % $ er stress o acco$ t of

persiste t pro lems s$ch as attritio 3 co fi e tialit%3 a lo%alt%. :ther pro lems are ma agi g people3

moti!atio to a opt e0 tech olog% cha ges3 recr$itme t a trai i g3 performa ce ma ageme t3

e!elopme t3 a compe satio ma ageme t. >ith these challe ges3 it is timel% for orga i7atio s to

rethi - the 0a%s the% ma age their people.

'a ageme t is a -e% to achie!e res$lt a e!er% compa % is ha!i g a .R. * +AR ' " to loo-

after the !ario$s f$ ctio s relati g to h$ma reso$rces of the compa %. ,ompe satio of emplo%ees for

their ser!ices is a importa t respo si ilit% of R'. I I ia co te t3 $ri g the last t0o or three

eca es3 atte tio has ee gi!e % the I $stries as 0ell as 8o!er me t to0ar s a eH$ate

compe satio for emplo%ees. As a co seH$e ce3 there is a gro0i g a0are ess amo g the emplo%ees

a o$t 0hether the compe satio is effecti!e or ot.

I ce ti!e o the other ha is a i tegral part of compe satio 0hich aims to impro!e the performa ce

of the emplo%ee o the c$rre t jo as 0ell as moti!ate them for the i te e jo .

,ompe satio is a process of pa%i g fi a cial a o 5fi a cial regar s to emplo%ees for their ser!ices

re ere to the orga i7atio . It attempts to re0ar the emplo%ees for their co tri $tio a to retai

them.

$ompensation and incentive together focus on satisf#ing emplo#ee needs and boosting their

motivational levels so that@ their performance become more productive.

"o e terprise ca e g$ara tee a perma e t place i this highl% competiti!e societ% a o ma ager ca

last lo g $ til he -eeps his $si ess competiti!e. o e competiti!e3 the e terprise m$st pro $ce h$ge

amo$ t of highl% H$alitati!e goo s a m$st pro!i e e celle t ser!ice for 0hich a gro$p of highl%

moti!ate a committe 0or-force is esse tiall% reH$ire . If the h$ma reso$rce of the orga i7atio

0ill e treate 0ith m$ch care a co cer the% 0ill ecome pro $cti!e assets 0here as a slighter

eglige ce 0ill ma-e them ot o l% $ pro $cti!e reso$rces $t also co$ terpro $cti!e lia ilities %

i !iti g the i $strial mala ies li-e la o$r $ rest3 loss of pro $ctio 3 high rate of la o$r t$r o!er3

a se teeism3 acci e t3 i iscipli e etc. herefore the real sol$tio for impro!i g the pro $cti!it% a

ma-i g the e terprise competiti!e lies i the proper moti!atio of the 0or-ers. As the a!erage I ia

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0or-er is fi a ciall% poor3 fi a cial i ce ti!es 0hich li - higher pro $ctio ca pla% a importa t role i

promoti g s$ch moti!atio . 'oreo!er the ma agers m$st reali7e that the fi a cial moti!e for the 0or- is

e tremel% importa t more so tha the o fi a cial moti!es a the most effecti!e 0a% of har essi g

these moti!es is % the $se of pa%me t % res$lt ot simpl% % pa%i g higher 0ages.

KI I ia a s$r!e% co $cte % "atio al +ro $cti!it% ,o$ cil re!eale that a o$t LEM of the reporti g

compa ies ha 0age i ce ti!e pla s. : a a!erage3 the scheme seeme to ha!e achie!e i crease i

o$tp$t 0hich ra ge et0ee =EM a CEM a i crease i pro $cti!it% 0as et0ee 2CM a 4CM.

I a rapi l% cha gi g societ%3 emplo%ee moti!atio is ot a acti!it% that is esira le $t also a acti!it%

that a orga i7atio m$st commit to3 if it is to mai tai a sta le gro0th i pro $cti!it%. +ro!i i g fri ge

e efits a i ce ti!es are po0erf$l tools i the ha s of the ma ageme t that ca ma-e the emplo%ee

more effecti!e a pro $cti!e.

KSieme s 6imite has gro0 o!er o the fo$ atio of e icate c$stomer ser!ice3 fair $si ess

practices3 a efficie t3 safe a tr$ste fi a cial policiesN. A o ig i $strial orga i7atio li-e it

ig ores the moti!atio al ee s of the emplo%ees 0itho$t serio$sl% hamperi g its performa ce. It is thecompe satio 3 0hich ma-es the people 0or- a -eep o 0or-i g.

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1.1 Significance of the Study

"o0 a%s3 too m$ch emphasis is ofte gi!e to the form$latio of iffere t -i s of i ce ti!e scheme

a their is $rseme ts3 rather tha assessi g the o$tcome of s$ch acti!ities. I ce ti!e schemes sho$l

ma-e a impact o the performa ce of the emplo%ee e efite . his st$ % is a attempt to fi o$t theefficie c% a effecti!e ess of the i ce ti!e schemes.

I this partic$lar fiel of st$ %3 the perso el epartme t is !er% acti!e 0ith its i ce ti!e schemes. B$t

this st$ % is efi itel% goi g to ri g a o$t the !ario$s positi!e a egati!e aspects of perso al

ma ageme t acti!ities so that if reH$ire the orga i7atio ca mo if% their i ce ti!e schemes

accor i gl%.

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1.2 Review of Existing Literature

Foresee abilit# and $op#right Incentives

,op%right la0Js pri cipal j$stificatio to a% is the eco omic theor% of creator i ce ti!es. ,e tral to thistheor% is the recog itio that 0hile cop%rightJs e cl$si!e rights frame0or- pro!i es creators 0ith a

eco omic i ce ti!e to create3 it also e tails large social costs3 a that creators therefore ee to e gi!e

j$st e o$gh i ce ti!e to create i or er to ala ce the s%stemJs e efits agai st its costs. hile the commo la0 too relies o pro!i i g actors

0ith i ce ti!es to eha!e i certai 0a%s3 it recog i7es that its i ce ti!e str$ct$re has o$ter limits a

that faili g to cali rate a e titleme t or lia ilit% 0ith these limits i mi is li-el% to pro!e i efficie t.

he pri cipal mecha ism that it emplo%s to this e is the co cept of foresee a ilit%. +remise o the

i ea that i i!i $als o ot or i aril% co si er co seH$e ces that are temporall% or ca$sall% far remo!e

from their actio s3 foresee a ilit% allo0s co$rts to ala ce a regimeJs e a te i ce ti!e effects agai st its

e post costs 0he etermi i g lia ilit%.

his Article arg$es that if cop%right la0 is to remai tr$e to its theor% of i ce ti!es3 a there % the ee

to ala ce mo opol% co trol 0ith the social costs that are ce tral to the theor%3 it ee s to i ter ali7e the

i ea that creators3 li-e actors else0here3 are i capa le of f$ll% a ticipati g all f$t$re co ti ge cies

associate 0ith their actio s3 0hich i t$r limits the effecti!e ess of i ce ti!es. o this e 3 this Article

proposes a test of Kforeseea le cop%i gN to limit cop%rightJs gra t of e cl$si!it% to sit$atio s 0here a

copierJs $se 0as reaso a l% foreseea le at the time of creatio O the poi t 0he the i ce ti!e is mea t

to operate. A opti g a test of foresee a ilit% is th$s li-el% to etter alig cop%right la0 0ith its

$ erl%i g p$rpose a pro!i e co$rts 0ith a mecha ism % 0hich to gi!e effect to cop%rightJs theor% of

i ce ti!es i i i!i $al cases O there % accor i g the theor% more tha j$st rhetorical sig ifica ce.

Source" http"'' .harvardla revie .org'issues'(**'april9)'ArticleC:5=.php

Improving &thical Revie of Research Involving Incentives for /ealth Promotion

A !a ces i eha!io$ral eco omics are ri!i g efforts to $se material or fi a cial i ce ti!es to promotehealth5relate eha!io$r i i ter atio al e!elopme t3 p$ lic health3 a cli ical me ici e.

,$rre t ethical frame0or-s for h$ma research ass$me that material or fi a cial i ce ti!es are pro!i e

to participa ts either as compe satio for their time a e pe ses3 or as a i $ceme t to participate i

research.

Some commo co cer s a o$t $si g i ce ti!es to i crease participatio i research3 s$ch as that

attracti!e i ce ti!es 0ill $ ermi e participa t a$to om%3 are misplace 0he i ce ti!es are $se to

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o!ercome eco omic o stacles or a lac- of effecti!e moti!atio 3 a 0he recipie ts are i ce ti!i7e to

e gage i health5relate eha!io$rs or practices 0ith 0hich the% are alrea % familiar a 0hich the%

regar as e eficial or 0orth0hile.

Source" http"'' .plosmedicine.org'article'info 3Adoi *F(9.(3=( *Fjournal.pmed.(99(()3

Impact of Targeted Financial Incentives on Personal /ealth Behavior

:!er the past eca e3 there has ee a s$ sta tial i crease i the $se of fi a cial i ce ti!es % pri!ate

emplo%ers a p$ lic programs to e co$rage health% eha!iors3 0ell ess acti!ities3 a $se of pre!e ti!e

ser!ices. he research e!i e ce regar i g the effecti!e ess of this approach is re!ie0e 3 s$mmari7i g

rele!a t fi i gs from literat$re re!ie0s a from rece t e!al$atio s. he article co cl$ es that fi a cial

i ce ti!es3 e!e relati!el% small i ce ti!es3 ca i fl$e ce i i!i $alsP health5relate eha!iors. o0e!er3

the fi i gs regar i g health promotio a 0ell ess are ase primaril% o a al%ses of a limite

$m er of pri!ate sector i itiati!es3 0hereas the e!i e ce regar i g pre!e ti!e ser!ices is ase o

e!al$atio s of i itiati!es spo sore pre omi a tl% % p$ lic programs a irecte at lo05i come

pop$latio s. I either case3 there are se!eral importa t limitatio s i the a ilit% of the p$ lishe fi i gs

to pro!i e clear g$i a ce for p$ lic program a mi istrators or pri!ate p$rchasers see-i g to esig a

impleme t effecti!e i ce ti!e programs.

Source" http"''mcr.sagepub.com'content'


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1.3 once!tuali"ation

he project K Role of incentive schemes in Siemens N@ or er to ta-e - o0s 0hat -i of i ce ti!es

schemes are there i the orga i7atio .

A i ce ti!e scheme is a pla or program to moti!ate i i!i $al or gro$p performa ce. A i ce ti!e program is most freH$e tl% $ilt o mome tar% re0ar s3 $t ma% also i cl$ e a !ariet% of o 5mo etar%

re0ar s or pri7es.

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1.# $ocus of the %ro&lem

I a competiti!e 0orl 0here tech olog% cha ges a mar-et shifts are escalati g the emplo%eeJs

aspiratio s3 the -e% is to attract a retai tale te emplo%ees % compe sati g them satisfactoril%. B$t

this is o e of the har est thi gs to get right as iffere t emplo%ees ha!e iffere t 0a ts a ee s 0ith!arie le!els of satisfactio .

he $ma Reso$rces are co si ere to e the greatest asset for a % orga i7atio . >itho$t effecti!e

compe satio o efficie t h$ma reso$rces ca e a!aila le. Impleme ti g effecti!e i ce ti!e schemes

co$l e sharpe the effecti!e ess of h$ma reso$rces.

>ith the a !e t of R* i a ig 0a% i the I ia :rga i7atio 3 great emphasis has ee o proper

compe satio a e tra50age e efits. ,ompa ies to a% spe la-hs of r$pees i pa%i g 0age a

salaries alo g 0ith other allo0a ces a i ce ti!es to their emplo%ees. B$t it is reH$ire to e fo$ o$t

0hether the orga i7atio ge erates o$t of this e pe it$res.

It is i teresti g to ote that to a% orga i7atio s are spe i g e ormo$s amo$ t o pa%i g allo0a ces.I ce ti!es3 fri ge e efits or perH$isites o!er a a o!e the 0age or salar%.

It is ver# pertinent to note that this statistics ma# be impressive@ but the necessar# point is that one

has to judge"

he act$al ee s or prefere ces of the emplo%ees.

he efficie c% of the a!aile compe satio pac-age i meeti g these ee s.

he o$tcome of a mi isteri g the compe satio polic% i terms of percei!e !al$e of the

emplo%ees.

his i p$t5o$tp$t relatio ships ee s to e st$ ie . B$t it is ot o e i most of the orga i7atio . Also it

is to e fo$ o$t 0hether these e efits are helpi g the emplo%ees as a i i!i $al a as a part of the

orga i7atio . So3 it is ecessar% to fi o$t 0hether these e efits of the i ce ti!e s%stem ha!e reache

the emplo%ees i terms of the o jecti!es of the i ce ti!e s%stem.

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1.' (&)ectives of the Study

he e te si!e role of compe satio practices a i ce ti!e schemes 0hich pla% a importa t role i

shapi g a emplo%eeJs performa ce has e co$rage me to ta-e it as the o jecti!e of m% st$ %.

1eneral objectives"

o st$ % a e!al$ate the i ce ti!e schemes prese tl% practice i Sieme s.

Specific objectives &

o fi o$t the at$re a impact of i ce ti!e s%stems o compa %Js performa ce as 0ell as

emplo%eeJs performa ce. o fi o$t the effect of i ce ti!e schemes o satisf%i g the i i!i $al ee s a orga i7atio al

ee s.

o fi o$t the cha ges i the emplo%ees capa ilit% a attit$ e $e to i ce ti!es.

o fi o$t the limitatio s of i ce ti!e schemes of the compa %.

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1.6 *y!othesis

A h%pothesis is a e pla atio for a phe ome o 0hich ca e teste i some 0a% 0hich i eall% either

pro!es or ispro!es the h%pothesis. #or the $ratio of testi g3 the h%pothesis is ta-e to e tr$e3 a the

goal of the researcher is to rigoro$sl% test the terms of the h%pothesis. he co cept of the h%pothesis is a!er% importa t part of the scie tific metho 3 a it also hol s tr$e i other iscipli es as 0ell. #or

e ample3 some historia s ha!e p$t for0ar the h%pothesis that the Salem >itch rials 0ere ro$ght

a o$t % the co s$mptio of grai s co tami ate 0ith ergot3 res$lti g i a mass h%steria

/#pothesis used are as follo ed"

/9" I ce ti!e schemes helpi g the orga i7atio for achie!i g their lo g term goals.

/(" I ce ti!e schemes are ot helpi g the orga i7atio for achie!i g their lo g term goals.

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* Research 0ethodolog#

Research Plan" Research +la is o specific for all t%pes of researchQ it is eci e epe i g $po the

at$re of the pro lem.

It can be E plorator%

*escripti!e

2.1 Research +esign

Research esig is a master pla specif%i g the metho a proce $re for collectio a a al%7i g

ee e i formatio . he research esig a opte for the st$ % is escripti!e research.

he escripti!e research attempts to o tai complete a acc$rate escriptio of a sit$atio . It helps to

portra% the characteristics of a gro$p or i i!i $als or sit$atio .

2.2 ,niverse - Survey %o!ulation

he pop$latio or $ i!erse represe ts the e tire gro$p of $ i!erse 0hich is the foc$s of st$ %. h$s the

pop$latio co$l co sist of the e tire perso i the co$ tr% or those i a partic$lar geographical locatio .

It ma% also co sist of o h$ma $ its.

-niverse" 8$rgao

2.3 Sam!le

Si ce it is ot possi le to st$ % 0hole $ i!erse3 it ecomes ecessar% to ta-e sample from the $ i!erse to

- o0 a o$t its characteristics. Sample Si e" 1EE Sampling T#pe " Ra om Stratifie Sampli g 'etho Sampling -nits" mplo%ees of Sieme s of 8$rgao . Research Instrument" Str$ct$re G$estio aire.

2.# ollection of +ata

*ata is the ra0 i formatio that a researcher collects thro$gh s$r!e%s. It is the mai asis for ata

a al%sis a i terpretatio .

+rimar% *ata is collecte $si g the H$estio aire.

Data under this project"

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(. Primar# Data"

All the emplo%ees of the Sieme s 0ere the mai so$rce of +rimar% ata. he metho of collectio of

primar% ata 0as irect perso al i ter!ie0 thro$gh a str$ct$re H$estio aire.

*. Secondar# Data"It 0as collecte from i ter al so$rces. he seco ar% ata 0as collecte o the asis of orga i7atio al

file3 official recor s3 e0s papers3 maga7i es3 ma ageme t oo-s3 preser!e i formatio i the

compa %Js ata ase a 0e site of the compa %.

2.' Analysis %attern

$ollect both primar# and secondar# data and follo ed in given methods" ,o i g 8raphi g +ie ,harts3 a les etc. I terpretatio ,o cl$sio

3 ,rgani ational Profile

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T#pe 1esellschaft mit beschr nGter /aftung

Traded as FHB " SI& @%2S& " SI

Founded ())= in 0unich

/eadquarters 0unich @ 1erman#

Area served Horld ide

e# people Roland H. $halonsJBro ne $&, !@ Dr. Peter 0orit $F, !@

Products &quipment financing ; leasing @ vendor finance@ assetJbased lending@ private equit# @ project a

equit# participations@ project and eKport financing@ industrial insurance solutions@ private finance

solutions@ asset management @ treasur# solutions@ structured financing@ banGing

Services Business services@ financing

&mplo#ees *@


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Siemens 1lobal Lision

Siemens J the pioneer in"

erg% efficie c%

I $strial pro $cti!it%

Affor a le a perso ali7e healthcare

I tellige t i frastr$ct$re sol$tio s

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Siemens 0ission Statement

>e are a stro g a relia le part er i the electrical e gi eeri g a electro ics $si ess.

:$r missio is to co ti $o$sl% optimi7e o$r c$stomersP $si ess thro$gh o$r 0orl 5class sol$tio s3

ser!ices a pro $cts.

>e e s$re the s$ccess of o$r compa % % co sta tl% a co siste tl% satisf%i g o$r c$stomers3

sharehol ers a emplo%ees.

Siemens Lalues

:$r !al$es are the core of o$r $si ess philosoph% 0hich 0e ha!e p$rs$e for the last 1 E %ears. 'ore

tha 4EE3EEE emplo%ees i 19E co$ tries are o$ e % these !al$es.

he !al$es are ot e03 o$r emplo%ees li!e % them e!er% a% a 3 ase o these !al$es3 the% achie!ethe $si ess s$ccess i eali g 0ith c$stomers3 s$ppliers or part ers. he !al$es are a sol$tel% $si ess

rele!a t 5 a 0e stro gl% elie!e that o c$stomer 0o$l 0a t to 0or- 0ith a compa % 0hich is ot

percei!e as relia le3 e celle t a i o!ati!e

Innovative

Bei g i o!ati!e to create s$stai a le res$lts

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&Kcellent

Achie!i g high performa ce a e celle t res$lts

Responsible

,ommitte to ethical a respo si le actio s

Incentive s#stem at Siemens +td" An Anal#sis

he i ce ti!e scheme of Sieme s 6t . is a performa ce5 ase scheme. Sieme s 6t . has a etaile performa ce e!al$atio s%stem a a0ar of i ce ti!es is stro gl% li -e to performa ce i icators.

he i ce ti!e scheme is i te e to moti!ate the emplo%ees apart from retai i g !al$a le ma po0er.

Siemens +td. has adopted a t oJdimensional incentive s#stem comprising of"

#i a cial i ce ti!es

"o 5 #i a cial i ce ti!es

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Financial incentives

he amo$ t of fi a cial i ce ti!es pa%a le to a % emplo%ee epe s o his co tri $tio to0ar s

achie!eme t of the targets.

It is gi!e mai l% to emplo%ees i the follo0i g three forms&

+erforma ce i ce ti!e

Bra ch i ce ti!e

Atte a ce i ce ti!e

Performance incentive"

It is the i i!i $al i ce ti!e gi!e to the emplo%ees o the asis of their performa ce.

&ligibilit#" It is applica le to all the emplo%ees at the : as 0ell as the ra ches.

Procedure" he performa ce of a emplo%ee is e!al$ate % either the Bra ch5i 5charge or the

respecti!e s$per5or i ate.

Performance appraisal is done through"

+erforma ce re!ie0 (B% appraiser) Self re!ie0 (Self appraisal)

Performance is evaluated b# the appraiser and is recorded as an# one of the follo ing categories"

celle t

er% goo

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Incentives

Financial incentives %onJ Financial incentives


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8oo

Satisfactor%

Base o the res$lt of his performa ce appraisal3 the appraiser recomme s the ame of the appraise to

the Bra ch 'a ager or to the o!erall i 5charge 0ho i t$r 0ith $e co si eratio for0ar s the

recomme atio to the top ma ageme t.

Amount" he amo$ t of i ce ti!e to e is $rse is eci e % the top ma ageme t ase o the le!el

a H$alit% of performa ce e hi ite % the emplo%ee.

Pa#ment" he pa%me t is o e a $all%.

Branch Incentive"

Also terme as K,ollectio I ce ti!eN it is the gro$p i ce ti!e pro!i e to all the emplo%ees of a ra ch

o the asis of their collectio or reco!er% of fi a ce is $rse .

&ligibilit#" Applica le o l% to those ra ches 0hich ha!e achie!e the collectio target fi e for that

fi a cial %ear.

Procedure" At the egi i g of each fi a cial %ear a a $al co fere ce of all the Bra ch5i 5charges3 R5

:5i 5 charges a the top ma ageme t is co $cte . here the A $al A!erage +erforma ce (AA+)

target is fi e regar i g the amo$ t to e fi a ce a the perce tage of reco!er% to e o e. his target

is fi e i co s$ltatio 0ith the Bra ch 'a agers a the Regio al ea s epe i g $po &

Si7e of the ra ch

+re!io$s $si ess tra sactio s

S$ seH$e tl%3 the ra ch ma ager fi es the target for the fiel officers i accor a ce 0ith the target fi e

for the Bra ch.

Amount" It is eci e % the top ma ageme t. he fig$re of amo$ t ge erate % the compa ies 'IS is

the istri $te amo g the emplo%ees of the ra ch i the follo0i g ma er&

2EM of the amo$ t allotte is pai to the Bra ch 'a ager or i 5charge.

Rest of the amo$ t is istri $te eH$all% amo g all the ra ch mem ers i cl$ i g the Bra ch

'a ager.

Pa#ment" A $all%

Attendance Incentive"

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22/67


It has ee i tro $ce 0ith a !ie0 to moti!ate the emplo%ees to atte office reg$larl% 0itho$t a!aili g

a % lea!e.

&ligibilit#" Applica le to all emplo%ees of o l% $ io gra e (8r.I 5 8r. ).

Applicable to emplo#ees"

>ho ha!e ot a!aile a % lea!e s$ch as ,6/+6/S6.

>ho ha!e ot a!aile permissio for late atte a ce ot e cee i g o e ho$r i a partic$lar

mo th.

Pa#ment" A s$m of Rs. 1C/5 p.m. 0ill e pai o ce i three mo ths i a H$arter ase o their

atte a ce.

%onJfinancial incentives"

hese are the Ke co$ragersN or Kmoti!atorsN $ relate to mo e%3 0hich e a les the ma ageme t of the

compa % to moti!ate its emplo%ees to 0or- efficie tl% a co tri $te to ma im$m.

>hile a al%7i g the !ie0s of the respo e ts at Sieme s 6t . to0ar s the pre!ale t i ce ti!es scheme

a eH$all% co si erate o 5fi a cial scheme is s$ccessf$ll% practice at Sieme s 6t .

The various nonJmonetar# re ards provided b# the compan# for the emplo#ees can be classified

as"

Treats" It includes

o #esti!al ashes

o *i er for the e tire famil% o special occasio s.

o Special irth a% treats % gifts3 chocolates etc.

nicGJ nacGs" It includes follo ing things

o *es- accessories s$ch as +e Sta s3 +e s3 #ile ,o!ers3 Staplers3 +i s etc.

o +ro!i i g ,ompa % 0atches to emplo%ees o their completio of 1E %ears of ser!ice.

o *ialers a pla ers for ma agers.

o ,ale ars3 Special 5Shirts 0ith compa %Js logo.

A ards" he ,ompa % also facilitates 0ith rophies a 6etters of appreciatio to emplo%ees

0ho ha!e complete =E %ears a 2E %ears of ser!ice.

Social AcGno ledgement"

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23/67


o : s$ccessf$l completio of a % assig e jo or o achie!i g the fi e target3 the

ma ageme t e co$rages the emplo%ee % recog itio of his tale t a s$ccess at office

get5togethers.

o he s$per!isor or s$per5or i ate also moti!ates his s$ or i ates thro$gh frie l%

greeti gs3 e co$ragi g smiles or solicitatio of a !ise a s$ggestio s. ,ffice environment" he ph%sical e !iro me t a the office setti g itself ca act as a stro g

moti!atio to 0or- more effecti!el%. e ce3 the compa % has a !er% 0ell5mai tai e office

0ith health% 0or-i g e !iro me t

ToGens" : certai occasio the ma ageme t also gi!es to its emplo%ees memora le to-e s

s$ch as !acatio trips a marriage gifts.

,nJtheJjob re ards" Apart from the a o!e3 off5the5jo re0ar s the s$per5or i ates or

ma agers of the compa % moti!ate their s$ or i ates thro$gh o 5the5jo o 5mo etar% re0ar s

s$ch as&

o 'ore respo si ilit% to ma-e the emplo%ee feel compete t.

o Special challe gi g assig me ts to re e0 the emplo%eeJs co fi e ce a jo

satisfactio .

o rai i g a e!elopme t to acH$ire e0 s-ills a - o0le ge.

o Represe ti g the compa % at p$ lic fora% to e!elop a se se of elo gi g ess i the

emplo%ee a he ce oost his performa ce.

3.1 usiness of the (rgani"ation

&nerg# Sector"

o he erg% Sector is o e of the 0orl Js lea i g s$ppliers of a 0i e ra ge of pro $cts3

sol$tio s3 a ser!ices i the fiel of e erg% tech olog%.

S B I 19


24/67


o >e e a le c$stomers to ge erate3 tra smit a istri $te electrical po0er at the highest

le!els of efficie c%. >e also help them pro $ce3 co !ert a tra sport the primar% f$els

oil a gas. >eJre the o l% ma $fact$rer 0orl 0i e 0ith - o05ho03 pro $cts3

sol$tio s a -e% compo e ts spa i g the e tire e erg% co !ersio chai .

o

Sieme s erg% has a o$t 3EEE emplo%ees 0orl 0i e. I fiscal 2E123 the Sector ge erate total re!e $e of 2L.C illio a profit of 2.2 illio .

Hind po er solution from Siemens

/ealthcare Sector"

o he ealthcare Sector sta s for i o!ati!e pro $cts a complete sol$tio s as 0ell as

ser!ice a co s$lti g i the healthcare i $str%.

S B I 2E


25/67


o As the 0orl sJ pop$latio gro0s a gets ol er3 more a more people thri!e to reach

their f$ll pote tial a to lea a health%3 high5H$alit% life far i to ol age.

o At Sieme s3 0e pla% a $ iH$e roleQ s$pporti g healthcare professio als to o their jo

% pro!i i g me ical tech ologies that help eli!er a etter H$alit% of healthcare a

e a le e!er5impro!i g egrees of i i!i $al care thro$gh a !a ce imagi g3iag ostics3 therap%3 a healthcare I sol$tio s. >e pro!i e i o!ati!e tech olog% to

c$stomi7e me ici e3 e a li g etter iffere tiate iag ostic res$lts a more isti ct

therap% ecisio s.

o >ith aro$ C13EEE emplo%ees 0orl 0i e a o$r prese ce thro$gho$t the 0orl 3

re!e $e 0orth 1=. illio $ros3 a profits of appro imatel% 1. illio $ros i

fiscal 2E123 Sieme s ealthcare helps e s$re the e t ge eratio of rea-thro$ghs

ecome a realit%. :$r commitme t to a !a ci g h$ma health3 ho0e!er3 goes e%o

eli!eri g the latest iag ostic a treatme t tech olog% to o$r c$stomers. >e s$pport

their s$ccess thro$gh close colla oratio a m$t$al part erships.o ogether3 0e i o!ate to a !a ce h$ma health.

Siemens SP&$T'$T scanner in operation

S B I 21


26/67


Industr# Sector"

o he I $str% Sector is o e of the 0orl Js lea i g s$ppliers of i o!ati!e3

e !iro me tall% frie l% pro $cts a sol$tio s for i $str% c$stomers.

o I tegrate tech ologies3 !ertical mar-et e pertise a ser!ices for greater pro $cti!it%3

e erg% efficie c% a fle i ilit%.

o Soli mar-et e pertise3 tech olog%5 ase ser!ices a soft0are for i $strial processes

are the le!ers 0e $se to i crease o$r c$stomersJ pro $cti!it%3 efficie c% a fle i ilit%.

o >e co siste tl% rel% o i tegrate tech ologies a 3 tha -s to o$r $ le portfolio3

0e ca respo more H$ic-l% a fle i l% to o$r c$stomersP 0ishes. >ith o$r glo all%

$ matche offeri g of a$tomatio tech olog%3 i $strial co trol a ri!e tech olog%

as 0ell as i $strial soft0are3 0e eH$ip e terprises 0ith 0hat the% ee o!er their

e tire !al$e chai T from pro $ct esig a e!elopme t to pro $ctio 3 sales a

ser!ice. :$r i $str% c$stomers also profit from o$r comprehe si!e offeri g of

ser!ices tailore for their mar-et a their ee s.

o Sieme s I $str% is a le to c$t the time ee e for the mar-et la$ ch of ma % pro $cts

i half 0ith soft0are a a$tomatio tech olog% 0hile also sig ifica tl% re $ci g

e erg% or 0aste0ater costs for ma $fact$ri g compa ies. I this 0a% 0e i crease o$r

c$stomerJs competiti!e stre gth a ma-e a importa t co tri $tio to e !iro me tal

protectio at the same time 0ith o$r e erg%5efficie t pro $cts a sol$tio s.

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27/67


Infrastructure ; $ities Sector"

o he i frastr$ct$re a cities sector pro!i es s$stai a le tech ologies for metropolita

ce treJs a $r a i frastr$ct$re 0orl 0i e.

o ,ities are a -e% gro0th mar-et of the f$t$re.

o 'ore tha half the 0orl Js pop$latio o0 li!es i $r a areas T a the $m er of

cit% 0ellers is i creasi g e!er% a%. >ith a portfolio comprisi g i tegrate mo ilit%

sol$tio s3 $il i g a sec$rit% s%stems3 po0er istri $tio eH$ipme t3 smart gri

applicatio s a lo05 a me i$m5!oltage pro $cts3 o$r e0 I frastr$ct$re F ,ities

Sector offers s$stai a le tech ologies for metropolita ce tres a $r a

i frastr$ct$res 0orl 0i e. ,om i i g the e pertise of e isti g $si esses i o$r

I $str% a erg% Sectors3 I frastr$ct$re F ,ities is 0ell positio e to e a major

pla%er i a a ressa le mar-et of =EE illio .

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28/67


3.2 /anagement %rocedures

,rgani ation chart"

S B I 24

,hairma

'*

o al 'a ager


29/67


3.3 %roduct - Services offered &y the (rgani"ation

Sieme s offers a 0i e ra ge of electrical e gi eeri g a electro ics5relate pro $cts a

ser!ices.

Its products can be broadl# divided into the follo ing categories"

B$il i gs5relate pro $cts

*ri!es3 a$tomatio a i $strial pla t5relate pro $cts

erg%5relate pro $cts

6ighti g pro $cts

'e ical pro $cts

S B I 2C

Regio al 'a ager

Alter ati!e ,ha el :peratio ,ha el $ma Reso$rceRetail 'ar-eti g

erritor% 'a ager

Bra ch 'a ager

Asst. B.'.

B$si ess *e!. 'gr.

Sales *e!. 'gr.

erritor% 'a ager

Bra ch 'a ager

,ha el ec$ti!e

eam 'a ager

:peratio 'a ager

R ec$ti!e


30/67


ra sportatio a logistics5relate pro $cts.

SiemensM buildingsJrelated products"

B$il i g a$tomatio eH$ipme t a s%stems

B$il i g operatio s eH$ipme t a s%stems B$il i g safet% eH$ipme t a s%stems

B$il i g sec$rit% eH$ipme t a s%stems

6o05!oltage s0itchgear i cl$ i g circ$it protectio a istri $tio pro $cts.

SiemensM drives@ automation and industrial plantJrelated products"

'otors a ri!es for co !e%or elts

+$mps a compressors

ea!% $t% motors a ri!es for rolli g steel mills

,ompressors for oil a gas pipeli es

'echa ical compo e ts i cl$ i g gears for 0i t$r i es a ceme t mills

A$tomatio eH$ipme t a s%stems a co trols for pro $ctio machi er%

I $strial pla t for 0ater processi g a ra0 material processi g.

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31/67


SiemensM energ#Jrelated products"

8as a steam t$r i es

8e erators

,ompressors

: 5 a offshore 0i t$r i es

igh5!oltage tra smissio pro $cts

+o0er tra sformers igh5!oltage s0itchi g pro $cts a s%stems

Alter ati g a irect c$rre t tra smissio s%stems

'e i$m5!oltage compo e ts a s%stems

+o0er a$tomatio pro $cts.

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32/67


SiemensM ,SRA0 subsidiar# produces lighting products"

I ca esce t3 haloge 3 compact fl$oresce t3 fl$oresce t3 high5i te sit% ischarge a

?e o lamps.

:pt5electro ic semico $ctor light so$rces s$ch as light emitti g io es (6 *s)3 orga ic

6 *s3 high po0er laser io es3 6 * s%stems a 6 * l$mi aries.

lectro ic eH$ipme t i cl$ i g electro ic allasts.

6ighti g co trol a ma ageme t s%stems.

SiemensM medical products"

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,li ical i formatio tech olog% s%stems

eari g i str$me ts

I 5!itro iag ostics eH$ipme t

Imagi g eH$ipme t i cl$ i g a giograph%3 comp$te tomograph%3 fl$oroscop%3 mag etic

reso a ce3 mammograph%3 molec$lar imagi g $ltraso$ 3 a 5ra% eH$ipme t Ra iatio o colog% a particle therap% eH$ipme t

SiemensM transportation and logisticsJrelated products"

S B I 29


34/67


H$ipme t a s%stems for rail tra sportatio i cl$ i g rail !ehicles for mass tra sit3

regio al a lo g5 ista ce tra sportatio 3 locomoti!es3 eH$ipme t a s%stems for rail

electrificatio 3 ce tral co trol s%stems3 i terloc-i g3 a a$tomate trai co trols

H$ipme t a s%stems for roa traffic i cl$ i g traffic etectio 3 i formatio a

g$i a ceQ eH$ipme t a s%stems for airport logistics i cl$ i g cargo trac-i g a aggageha li g

H$ipme t a s%stems for postal a$tomatio i cl$ i g letter parcel sorti g

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35/67


4 About the project

T/& T,PI$" NR,+& ,F I%$&%TIL& S$/&0& I% SI&0&%S@ 1-R1A,%O

Incentive s#stem

Introductionhe term Ki ce ti!eN or Kre0ar N implies a %thi gJs that i creases a emplo%eeJs 0illi g ess or

moti!atio to 0or-.

JBuracG ; Smith

A i ce ti!e scheme is a pla or program to moti!ate i i!i $al or gro$p performa ce. A i ce ti!e

program is most freH$e tl% $ilt o mome tar% re0ar s3 $t ma% also i cl$ e a !ariet% of o 5mo etar%

re0ar s or pri7es.

I ce ti!e pla s are esig e to stim$late h$ma effort % re0ar i g the perso o!er a a o!e the time

relate rem$ eratio 3 for impro!eme ts. Basicall%3 i ce ti!e implies a s%stem of pa%me t $ er 0hich

the amo$ t pa%a le to a perso is li -e 0ith his o$tp$t. S$ch a pa%me t ma% also e calle K+a%me t

% res$ltsN.

Features of incentive plan & It ma% co sist of oth mo etar%J a o 5mo etar%J eleme ts3 a com i atio of 0hich ca

pro!i e the i!ersit% ee e .

It sho$l e ase o correct timi g3 acc$rac% a correct freH$e c% for ei g effecti!e.

It sho$l e properl% comm$ icate to the emplo%ees to e co$rage i i!i $al performa ce3

pro!i e fee ac- a e co$rage re irectio .

Factors influencing incentive plans"

he importa t factors3 0hich i fl$e ce a orga i7atio Js i ce ti!e scheme3 are as follo0s&

:rga i7atio fi a cial a ilit% to pro!i e to e efits.

mplo%eeJs eficie cies or ee s.

he argai i g stre gth of tra e $ io s.

mplo%eeJs co tri $tio to the orga i7atio . "ee for creati g moti!ators a oosters for the emplo%ees.

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Determinant of incentives"

he efficie c% of i ce ti!es is mai l% affecte % its s$ita ilit% a esig .

The effective use of incentives depends on three variables"

The individual" o0 to emplo%ee percei!e react the i ce ti!e pla 0ith respect to their iffere ce i age3 marital stat$s3 eco omic ee etc. Also 0hat amo$ t of !al$e iffere t

emplo%ees attach to the iffere t compo e ts of the pla .

HorG Situation" It i cl$ es

o ech olog%

o Satisf%i g jo assig me ts

o H$it%

o #ee ac-

The incentive plan" ffecti!e ess of i ce ti!es epe s $po three factors&

o *ri!es

o +refere ce !al$e

o Satisf%i g !al$e

In general"

I ce ti!es 0hether mo etar% or o 5 mo etar% te to i crease the le!el of moti!atio .

#i a cial i ce ti!es effecti!el% 0ith higher moti!atio or ecomi g ee s.

"o 5fi a cial i ce ti!es are li -e more effecti!el% 0ith higher moti!atio or ecomi g ee s.

he higher the positio of a emplo%ee I a orga i7atio 3 the greater is his !$l era ilit% to o 5

fi a cial i ce ti!es.

$lassification of incentives"

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0onetar# Incentives &

It refers to e tra fi a cial moti!atio % re0ar i g the emplo%ee o!er a a o!e his reg$lar

rem$ eratio for performi g more tha the targete 0or-.

Some of them are"

:!ertime 0ages

igher asic 0ages

I ce ti!e o $s

'erit i creme ts

S$ggestio re0ar s

ario$s allo0a ces +romotio

#ri ge e efits etc.

%onJ 0onetar# Incentives &

hese i ce ti!es ser!e as atte tio 5gettersJ or e co$ragesJ $ relate to mo e%.

Some of them are"

8oo h$ma relatio s

Self respect

Recog itio

Stat$s

Se se of elo gi g

Appreciatio

igher respo si ilit% etc.

S B I ==

Incentives

0onetar# %onJmonetar#


38/67


Incentives have also been classified into"

I i!i $al I ce ti!es

8ro$p I ce ti!es

:rga i7atio I ce ti!es

Individual Incentives"

ere3 the re0ar s are ase solel% o i i!i $al performa ce. It is the e tra compe satio pai to a

i i!i $al o!er a specifie amo$ t for his pro $ctio effort. S$ch s%stem is feasi le o l% 0here a

i i!i $al ca i crease the H$a tit% a H$alit% of his o$tp$t % his o0 i i!i $al efforts.

1roup Incentives"

hese schemes pro!i e for the pa%me t of a o $s either eH$all% proportio alit% to i i!i $als 0ithi a

gro$p or area. he o $s is relate to the o$tp$t achie!e o!er a agree sta ar or to the time sa!e o

the jo the iffere ce et0ee allo0e time a act$al time. hese are $s$all% applie to small teams

a the re0ar s are ase o the performa ce of the e tire gro$p.

,rgani ation Incentives"

It i !ol!es co5operatio a collecti!e effort of the emplo%ee a ma ageme t i or er to accomplish

roa er orga i7atio al o jecti!es.

Such as"

o re $ce la o$r3 material a s$ppl% costs.

o ecrease t$r o!er a a se teeism.

o stre gthe emplo%ee lo%alt% to the compa %.

o promote harmo io$s la o$r ma ageme t relatio .

: e of the aspects of this scheme is profit shari g $ er 0hich a emplo%ee recei!es a share of profit

fi e i a !a ce $ er a agreeme t freel% e tere i to.

%onJmonetar# incentives"

he creatio of s$ch re0ar s is o l% limite % the ma agerJs i ge $it% a a ilit% to assess K+a% offsN

that i i!i $als 0ithi the orga i7atio fi esira le. he classificatio of s$ch o 5fi a cial i ce ti!es

te s to smorgas or esira le thi gs that are pote tiall% at the isposal of the orga i7atio .

Also3 care m$st e ta-e to pro!i e the est s$ita leJ re0ar for each perso .

Follo ing are some eKamples of nonJfinancial incentives hich especiall# appeal to the needJ

motives of the affiliation@ po er and recognition.

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%eedJmotive of emplo#ee %onJmonetar# incentive required

Strong need for affiliation 7ob assignments providing opportunities to

relate to sociall# attractive individuals.

,pportunit# to relate and communicate

ith others.

/igh status and esteem HellJfurnished office room.

Impressive job title.

Independent telephone@ secretar#.

Reserved parGing lot.

Desire for po er ,pportunit# for leadership Administrative responsibilities

Participative'free rein management st#le

Participation in decisionJmaGing

Reputation Lerbal NpraiseO or publici ed Na ardsO.

Advantages"A !a tages of "o 5mo etar% re0ar s i cl$ e&

"o 5mo etar% re0ar s moti!ate emplo%ees to perform etter.

"o 5mo etar% re0ar s $il emplo%ee self5 esteem.

mplo%ees ecome more lo%al to the compa %.

hese e efits create a atmosphere 0here cha ge is ot rese te .

hese e efits ca e pro!i e 0itho$t a % e tra cost.

,reate close o age et0ee the compa % a emplo%ee famil%.

Disadvantages"

he o 5mo etar% re0ar s3 espite the a !a tage isc$sse a o!e3 s$ffer from the follo0i g

isa !a tages.

hese e efits e5moti!ate the emplo%ees3 if the processes are ot tra spare t.

hese re0ar s ma% res$lt i shortsighte a hast% ecisio 5ma-i g.

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40/67


hese re0ar s ma% res$lt i $ health% competitio amo g emplo%ees.

>or- i tr$ es o the home life of the emplo%ees.

mplo%ees feel that ma ageme t co ce trates o the o 5cost programs.

hese re0ar s 0ill ot 0or-3 if the mo etar% re0ar s are ot a eH$ate.

0onetar# or age incentives"

>age i ce ti!es are fi a cial e efit pai to emplo%ees i recog itio of their o$tsta i g performa ce.

According to the %ational $ommission on +abour K he 0age i ce ti!es are e tra fi a cial

moti!atio . he% are esig e to stim$late h$ma effort % re0ar i g the perso o!er a a o!e the

time rate rem$ eratio for impro!eme t i the prese t or targete res$ltsN.

Thus@ e ma# define age incentives as@ NA s#stem of pa#ment under hich the account pa#able to

a person is limited ith his outputO.

he p$rpose of 0age i ce ti!es is to impart moti!atio for higher efficie c% a greater o$tp$t.

I crease ear i g 0o$l e a le the emplo%ees to impro!e their sta ar of li!i g a help the

orga i7atio to impro!e their pro $cti!it%.

he% also help i re $ce s$per!isio 3 etter $tili7atio of 0or- ho$rs3 re $ce a se teeism a

t$r o!er.

Incentive s#stem divides into four categories

ar i g !ar% i proportio to o$tp$t.

ar i g !ar% proportio alit% less tha o$tp$t. ar i g !ar% proportio alit% more tha o$tp$t.

ar i g iffer at iffere t le!els of o$tp$t.

Hage Incentive Scheme

Accor i g to $mmel a "ic-erso 3N It refers to all the pla s that pro!i e e tra pa% for e tra

performa ce i a itio to reg$lar 0ages for a jo N.

I ce ti!e schemes are regar e as e eficial to oth emplo%ers a emplo%ees.

he% are accepte as so$ tech iH$e for the achie!eme t of greater pro $cti!it% a goo performa ce.

,bjectives of Hage Incentive Scheme"

o impro!e the profit of a firm thro$gh a re $ctio i the $ it costs of la o$r a materials or

oth.

o a!oi or mi imi7e a itio al capital i !estme t for the e pa sio of pro $ctio capacit%.

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o i crease a 0or-erJs ear i gs 0itho$t raggi g the firm i to a higher 0age rate str$ct$re

regar less of pro $cti!it%.

o $se 0age i ce ti!es as a $sef$l tool for sec$ri g a etter $tili7atio of ma po0er3 etter

pro $ctio sche $li g a performa ce co trol a a more effecti!e perso el polic%.

0erits of Hage Incentive Scheme"

>age i ce ti!e schemes offer to 0or-ers the prospect of ear i g more there % raisi g their sta ar

of li!i g.

>age i ce ti!e schemes help i impro!i g the i $strial relatio s a iscipli e i the orga i7atio .

>age i ce ti!e schemes act as re0ar s for goo performa ce. his e co$rages 0or-ers to come

for0ar 0ith e0 i eas a s$ggestio s to impro!e pro $cti!it%.

>age i ce ti!e schemes are ase o a sta ar of performa ce for the jo . he sta ar is $s$all%

set after ma-i g a scie tific 0or- st$ %. his ri gs a o$t impro!eme ts i metho s.

>age i ce ti!e schemes are e eficial as the% re $ce the ee for s$per!isio a there % re $ce

the cost of pro $ctio .

>age i ce ti!e schemes ri g commo alit% of goals a targets et0ee the ma ageme t a

0or-ers.

his helps i e!elopi g a feeli g of m$t$al co5operatio et0ee the ma ageme t a the 0or-ers.

Demerits of Hage Incentive Scheme"

Some 0or-ers are more pro $cti!e tha the others. his helps them to ear more. >he the ear i g

capacit% amo g 0or-ers iffers3 it res$lts i jealo$s% amo g them. >or-ers te to sacrifice H$alit% for the sa-e of H$a tit%. his res$lts i the pro $ctio of s$ 5

sta ar goo s.

I or er to pro $ce more3 0or-ers 0ill isregar safet% reg$latio s. his ma% res$lt i i j$r% to

0or-ers a rea- o0 of machi er%.

>or-ers te to o!er0or- a these res$lts i $ ermi i g their health.

>or-ers !er% ofte as- for compe satio 0he e!er pro $ctio flo0 is isr$pte $e to fa$lt of

ma ageme t.

!e 0here a i ce ti!e scheme %iel s a i crease o$tp$t3 it ma% ge erate te sio s amo g the

iffere t parts of a orga i7atio .

S$ch te sio s ofte create iffic$lt ma agerial pro lems 0hich ma% e!e t$all% affect o$tp$t.

&ssential Requirements of a Sound Hage Incentive Plan

0ost incentive plans involve"

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'eas$reme t of the amo$ t of 0or- o e (ma ageme t meas$res it).

sta lishme t of H$ota of sta ar o$tp$t or the orm o the asis of 0hich the i ce ti!e has to

e 0or-e o$t.

;tili7atio of a form$la for relati g pa% to pro $ctio or performa ce3 i.e. setti g $p of a

s$ita le rate of3 i ce ti!e3 0hich ma% e s$ ject to mo ificatio i the light of act$ale perie ce.

he H$ota or the orms of pro $ctio fi e as a asis of 0age i ce ti!e sho$l either e too high or

too lo0. If it is too high3 it 0ill e pre j$ icial to la o$r a accepta ce % tra e $ io 0o$l e iffic$lt.

If it is too lo03 it 0o$l ot e 0orth0hile for ma ageme t to i tro $ce the i ce ti!e scheme as the

0age ill 0ill e large3 0hile pro $cti!it% 0ill e lo0.

The characteristics of sound incentive age plan are stated belo "

Approval of 0anagement@ HorGers and Trade -nion" All the i tereste parties m$st accept3

s$pport a co5operate i the i ce ti!e pla . I the a se ce of emplo%ee s$pport3 the

programme of i ce ti!e 0ill rest o a sha-% fo$ atio . he pla sho$l e form$late thro$gh

isc$ssio a participatio et0ee ma ageme t (lo0er le!el s$per!isors) a la o$r ($ io

officials). >or-ers sho$l get f$ll e pla atio s a the% sho$l e trai e % the ma ageme t

for e s$ri g smooth 0or-i g of the pla .

,. ; 0. Studies & Before a 0or- sta ar is esta lishe 3 a sta ar ise proce $re or metho

sho$l e e!ol!e o the asis of orga i7atio a metho s a al%sis of each operatio

mplo%ees m$st e ta$ght ho0 to perform the 0or- accor i g to the optim$m or sta ar

metho s a proce $re.

HorG Standard & he orm or sta ar $po 0hich 0age i ce ti!e is ase sho$l e fi e

thro$gh caref$l 0or- meas$reme t e!ices3 e.g.3 time a motio st$ ies3 0or- sampli g of

0or- sta ar is $s$all% meas$re i time.

1uaranteed Base Hage & "ormall% the ase rate is etermi e % jo e!al$atio . here ma% e

iffere tial ase rates reflecti g properl% iffere ces i s-ill effort3 respo si ilit% a jo

co itio . he emplo%ee sho$l e roppe $e to the circ$msta ces e%o his co trol. Base

rate of compe satio i corporates the esira le a !a tage of time 0age i i ce ti!e pla 3 !i7.3

sec$rit% of i come.

%o -n arranted Rate $utting & he 0or- sta ar or H$ota3 i time or mo e% per $ it3 most e g$ara tee % ma ageme t agai st $ ilateral a $ 0arra te rate c$tti g. he practice of

rate c$tti g % the emplo%ers at their 0ill $ri g the earl% a%s of scie tific ma ageme t -ille

the e!er% p$rpose of i ce ti!e pla e3 !i73 higher pro $cti!it% a lo0er $ it cost of la o$r. A

cha ge i the 0or- sta ar is j$stifia le o l% 0he there is a cha ge i the metho 3 tooli g3

eH$ipme t o$r esig of the pro $ct.

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&as# $alculation of &arnings & A i ce ti!e pla sho$l facilitate rea % a eas% calc$latio of

the emplo%eeJs ear i gs. his 0ill $il $p the co fi e ce a tr$st i the programme.

,omple it% is o e of the asic ra0 ac-s of ma % i ce ti!e pla s. 'a ageme t sho$l tr% to

simplif% it as for as possi le.

1rievance procedure" A i ce ti!e pla of 0age pa%me t sho$l ha!e effecti!e grie!a ce proce $re to eal 0ith complai ts a issatisfactio !e tilate % emplo%ees. he 0or-

sta ar or the i ce ti!e rate ma% e too tight5rates iffic$lt to meet ca e a j$ste thro$gh

grie!a ce proce $re.

; less m$t$al co fi e ce a goo relatio ship e ist et0ee ma ageme t a la o$r i a $si ess $ it3

the cha ces of f$ll s$ccess of a e0 i ce ti!e s%stem are !er% poor.

Hage Differentials

Se!eral grie!a ces a issatisfactio s 0ith 0ages are the res$lt of pa% rate iffere ces et0ee jo s a

i i!i $als. plicitl%3 the i i!i $al espite his/her co cer for the total pa% is also i tereste i thecomparati!e pa%. >age iffere tials are of se!eral -i s i cl$ i g s$per!isor% iffere tials3 s-ill

iffere tials3 occ$patio al iffere tials et0ee 0age a salarie i i!i $als3 a iffere tials ase

$po jo !ariatio s.

#irst3 it is recog i7e that i crease respo si ilit% i s$per!isor% positio s sho$l accompa %

higher ear i gs. Se!eral compa ies attempt to mai tai as high as 2C per ce t iffere tial

et0ee s$per!isors a their s$ or i ates as a meas$re to pro!i e stat$s a prestige to the

former. his t%pe of iffere tial is a so$rce of satisfactio 0ith pa% for the s$per!isors.

Seco 3 attempts are ma e to mai tai iffere tials et0ee s-ille a $ s-ille jo s. *espite

i creases i the mi im$m 0age3 $ io press$res for $ iform 0ages a allie factors3 there

pre!ail 0age iffere tials amo g jo s i !ol!i g !arie s-ill le!els.

hir 3 there ma% arise 0age iffere tials i !ie0 of !ar%i g occ$patio al proficie cies. h$s3

i i!i $als from i!erge t occ$patio al gro$ps are pai iffere t amo$ ts of rem$ eratio .

hese iffere tials i $ce i i!i $als to accept more e citi g 0or- assig me ts as 0ell as

moti!ate time a effort to jo s.

#o$rth3 there are iffere tials et0ee 0age a salarie perso el i sofar as the former

recei!es a ge eral 0age i crease a the latter oes ot.

6ast3 0age iffere tials steam from jo !ariatio s. #reH$e tl%3 jo rati g is $se to etermi e

0age rates as a meas$re to remo!e $ fair ess a i eH$alities. Attempts are ma e to esta lish

rates 0hich li - the factors of pro $cti!it% of h$ma reso$rces 0ith their compe satio i a

ta gi le form. h$s3 there e ist t0o t%pes of compe satio iffere tials relati g to the 0orth of

iffere t jo s as 0ell as iffere tial H$alities of perso el lea i g to i!erge t pro $cti!it%.

Hages Polic# in India

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>age polic% forms a highl% se siti!e a comple ime sio of la or polic% i !ie0 of a 0i esprea

impact of 0ages o the relati!e stat$s of 0or-ers3 their commitme t to i $str% a their le!el of

moti!atio 3 morale a pro $cti!it% a sta ar of li!i g. It is ot merel% a eco omic phe ome o $t

also a m$lti ime sio al social iss$e 0hich is of i terest to the co s$mers3 the state a the societ% as a

0hole. It is a etermi a t of the shares of the ri!al claima ts of the pro $ct of i $str% a the atio al

i!i e . h$s3 it has to resol!e co flicts o!er itJs short5a lo g term o jecti!es a p$ lic a pri!ate

i terests. *espite se!eral theoretical g$i eli es for the form$latio of a 0age polic%3 there are !arie

co crete social facts 0hich m$st e ta-e i to acco$ t i esig i g a 0age polic%. Accor i gl% i !ie0

of the realities of the sit$atio 3 there are se!eral h$r les i the form$latio of a 0age polic% i a

e!elopi g eco om% li-e I iaJs 0hich a heres to a emocratic s%stem. It is i this co te t that the

"atio al ,ommissio o 6a o$r e ami es !ario$s iss$es of 0age polic%.

Altho$gh there has ee a laisse7 faire polic% to0ar s 0age pro lems for H$ite a lo g time3 settleme t of

0ages thro$gh thir part% i ter!e tio ca e trace to 191 0he at the i itiati!e of 8a hi3 there too- place a 0age settleme t i Ahma a a 3 8o!er me tJs i ter!e tio for reg$latio of 0age came 0ith the

e actme t of the I ia ra e *isp$tes Act3 1929. he >hitle% ,ommissio ealt 0ith iss$es s$ch as

mi im$m 0ages3 sta ar i7atio a i tersect oral 0ages3 a i ce ti!es3 s$ggeste s$r!e% for

collectio of ata a recomme e a mi im$m 0age fi i g machi er% of a 0age oar t%pe.

Specificall% the commissio stresse the ee for pre!e ti g $ fair e $ctio s 0hich hol s tr$e e!e

to a% 0as that the pro lem of the i $strial 0or-ers ca ot e co si ere i isolatio a that i

a opti g meas$res for the etterme t of i $str% or i $strial 0or-ers3 i terests of the comm$ it% at

large ca ot e ig ore . Altho$gh there 0ere o imme iate e!elopme ts i the 0age polic% i respo se

to this report attempts 0ere ma e i the late thirties to appoi t a hoc committees to settle the 0agestr$ct$re i certai pro!i ces. he go!er me t i itiate its acti!e i ter!e tio o all I ia asis o l%

$ri g the >orl >ar II % allo0i g a itio al pa%me t of ear ess allo0a ce for rise i prices a

share i 0ar5time i crease pro $cti!it% thro$gh o $ses to the 0or-s. o0e!er as the Rage ,ommittee

felt this short time strateg% 0itho$t a scie tific attit$ e ca e amagi g oth to the 0or-ers a the

i $str%. 6astl% a major e!elopme t 0as the 194 programme 0hich stresse the follo0i g three

eleme ts of 0age polic%&

he stat$tor% prescriptio of mi im$m 0ages i s0eate i $stries a occ$patio s i

agric$lt$re3

+romotio of fair 0age agreeme ts3

Steps to sec$re for 0or-ers i pla tatio a li!i g 0age. :f co$rse3 the li!i g 0age amo$ te to

a mi im$m 0age i this co te t.

Hage polic# after Independence

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I respo se to a aftermath of the i $strial $ rest3 the I $strial r$e Resol$tio 3 194L 0as a opte . As

the resol$tio asserts3 the s%stem of rem$ eratio to capital a la o$r sho$l e a !ise i a 0a% 0hich

promotes the i terest of the co s$mers a the primar% pro $cers % pre!e ti g e cessi!e profits

thro$gh s$ita le meas$res of ta atio a other0ise to la o$r a a fair ret$r o capital emplo%e i the

i $str% a reaso a le reser!es for the mai te a ce a e pa sio of the $ erta-i g. he I $strial

+olic% Resol$tio 3 194 0as e!ol!e . It stresse (a) fi atio of stat$tor% mi im$m 0ages i s0eate

i $stries a (2) promotio of fair 0ages agreeme ts i the more orga i7e i $stries. >hile the former

0as facilitate % the 'i im$m >ages Act3 194 0hich ha alrea % ee passe the latter too- place

thro$gh the appoi tme t of a committee o fair 0ages (,#>) 0hich aime at the etermi atio of

pri ciples to e!ol!e fair 0ages a s$ggest meas$res to impleme t these pri ciples.

HorGing of age incentive scheme in India"

I a co$ tr% li-e I ia3 the role of fi a cial i ce ti!es as a primar% tool for moti!ati g 0or-ers ca e

ote 0orth%.

Besi es3 the ecessit% of raisi g the pro $cti!it% of I ia la o$r is also getti g $e atte tio . In this conteKt@ the first plan recommended"

I tro $ci g i ce ti!e schemes to promote a more efficie t 0or-i g.

Safeg$ar i g 0or-ers i terest % g$ara teei g a mi im$m 0age.

+rotecti g 0or-ers agai st fatig$e a $ $e spee $p.

The second plan recommended"

he ear i g e%o mi im$m 0age sho$l e relate to res$lts.

he 0or-ers sho$l e co s$lte efore a s%stem of pa%me t % res$lts 0as i tro $ce .

The third plan recommended"

igher pro $cti!it% a

Re $ctio i costs

The need for introducing age incentive scheme in India has been felt on the follo ing grounds"

he efficie c% of the I ia 0or-ers is !er% lo0.

he a!erage I ia 0or-er is fi a ciall% poor.

I ia is at a lo0 le!el of tech olog%.

A proper applicatio of a 0ell5 esig e 0age i ce ti!e scheme ca so affect the prices that the

comm$ it% 0o$l e e efitte .

The profitJ sharing s#stem"

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+rofit5shari g is regar e as a steppi g sto e to i $stral emocrac%. +rof. Seager o ser!es& Kprofit5

shari g is a arra geme t % 0hich emplo%ees recei!e a share3 fi e i a !a ce of the profits.N he

I ter atio al ,o5operati!e ,o gress hel i +aris i 1 9 co si ere the iss$e a efi e profit5shari g

as Ka agreeme t (formal or i formal) freel% e tere i to3 % 0hich a emplo%ee recei!es a share fi e i

a !a ce of the profits.N

+rofit5shari g $s$all% i !ol!es the etermi atio of a orga isatio Js profits at the e of the fiscal %ear

a the istri $tio of a perce tage of the profits to 0or-ers H$alifie to share i the ear i gs. he

perce tage to e share % the 0or-ers is ofte pre etermi e at the egi i g of the 0or- perio a is

comm$ icate to the 0or-ers so that the% ha!e some - o0le ge of their pote tial gai s. o e a le the

0or-ers to participate i profit5shari g3 the% are reH$ire to 0or- a certai $m er of %ears a e!elop

some se iorit%. he theor% ehi profit5shari g is3 that ma ageme t feels its 0or-ers 0ill f$lfill their

respo si ilities more ilige tl% if the% realise that their efforts ma% res$lt i higher profits3 0hich 0ill e

ret$r e to the 0or-ers thro$gh profit5shari g.

Features of ProfitJsharing"

he agreeme t is !ol$ tar% a ase o joi t co s$ltatio ma e freel% et0ee the emplo%ers

a emplo%ees.

he pa%me t ma% e i the form of cash3 stoc- of f$t$re cre its of some amo$ t o!er a a o!e

the ormal rem$ eratio that 0o$l other0ise e pai to emplo%ees i a gi!e sit$atio .

he emplo%ees sho$l ha!e some mi im$m H$alificatio s3 s$ch as te $re or satisf% some other

co itio of ser!ice 0hich ma% e etermi e % the ma ageme t.

he agreeme t o profit5shari g ha!i g ee m$t$all% accepte 3 is i i g a there is o room

o the part of the emplo%er to e ercise iscretio i a matter 0hich is !ital to the emplo%ees.

he amo$ t to e istri $te amo g the participa ts is comp$te o the asis of some agree

form$la3 0hich is to e applie i all circ$msta ces.

he amo$ t to e istri $te epe s o the profits ear e % a e terprise.

he proportio of the profits to e istri $te amo g the emplo%ees is etermi e i a !a ce.

It sho$l e ote that profit5shari g is ot a s%stem of 0age pa%me t as s$chQ it is somethi g else.

+rofit5shari g a o $s (also profit5shari g o $s) are t0o iffere t thi gs3 for the former shari g

implies shari g o a eH$al footi g rather tha %iel i g o the part of a ma ageme t to a persiste t

ema . +rofit5shari g o $s o the other ha refers to the istri $tio of profit o the asis of a certai perce tage of o eJs mo thl% 0ages. 'oreo!er3 it is ot !ol$ tar% a is ot ase o agreeme t.

+rofit5shari g is a isti ctl% progressi!e meas$re to0ar s i $strial harmo %. It ma% e co si ere as a

step short of joi t co s$ltatio or co5part ership schemes. >age5 $si ess affairs are ma age a share

o a footi g of eH$alit%. sse tiall% the mea s Kthe creatio of a me tal climate i 0hich a stro g se se

has to gro0 that the $si ess is the $si ess of all3 si ce it is the joi t effort of the 0or-ers a the

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ma ageme t a si ce the o e ca ot carr% o a $si ess 0itho$t the help of the other. his is the i er

esse ce of profit5shari g 0hich has ofte ee o!erloo-e .N

here are three mai characteristics of la o$r rem$ eratio i the form of profit5shari g3 0hich

isti g$ish it from gai 5shari g a form a or i ar% s%stem of 0age pa%me t.

These features are"

A share i profits is pa%a le at lo g i ter!als 0he the fi al acco$ ts of a firm are prepare a

its profit or loss ascertai e .

he pa%me t is of a $ certai at$re eca$se of the $ certai t% of profits. Sometimes there

ma% e o profits or !er% high profitsQ i other cases there ma% act$all% e some losses.

he pa%me t is ot ase o i i!i $al 0or-3 efficie c% or merit3 $t is a rem$ eratio for

collecti!e effort3 the total rem$ eratio $e to 0or-ers ei g eH$all% i!i e amo g them or i

some agree proportio .

he pa%me t is sometimes regar e as 0i fall gai or as somethi g to 0hich a 0or-er is

e title a ot as somethi g i recog itio of his efficie c%.

,bjectives of ProfitJSharing"

+rofit5shari g is more tha j$st a other emplo%ee e efit. It ma% e the most importa t part of

progressi!e perso el polic%. It ma% i corporate i ce ti!e feat$res a pro $ce res$lts ot

possi le % the impleme tatio of other programmes. ,ompa ies 0hich offer this i ce ti!e

ha!e realise higher profits a i crease efficie c% a ha!e create a climate for etter

emplo%ee relatio s.

he critical i gre ie t i profit5shari g is the esire of the emplo%ees a the ma ageme t to

e s$re the s$ccess of a programme. he programme is form$late at the top eca$se profit5

shari g is first a foremost3 a pri ciple a tech iH$e of lea ership.

he real o jecti!e of profit5shari g is to foster Kthe $ it% of i terest a the spirit of co5

operatio N. #rom the poi t of !ie0 the emplo%ees3 profit5shari g ma% ser!e a m$ltiple of

o jecti!es3 epe i g $po the t%pe of pla 0hich is a opte . A cash pla co tri $tes irectl% to

a emplo%eeJs imme iate eco omic gai . *eferre pla s a com i atio pla s co tai feat$res

!er% similar to e efit pla s 0hich pro!i e for retireme t e efits a agai st loss of i come

follo0i g isa ilit%3 for e efits to epe a ts i the e!e t of the eath of a emplo%ee3 a for

other relate e efits. #rom the !ie0 poi t of the orga isatio 3 emplo%ee pro $cti!it% is the

o!erri i g o jecti!e of profit5shari g. At the same time3 it ma% co tri $te to emplo%eesatisfactio eca$se profit5shari g pro!i es for re0ar s 0hich are relate to emplo%ee ee s.

A profitJsharing scheme is generall# introduced to achieve the follo ing objectives"

o promote i $strial harmo % a sta ilisatio of the 0or- force.

o elimi ate 0aste i the $se of materials a eH$ipme ts.

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o i still a se se of part ership amo g emplo%ees a emplo%ers a to i crease emplo%ee

i terest i the compa % i 0hich he 0or-s.

o attract esira le emplo%ees a retai them3 there % re $ci g the rate of t$r o!er.

o e co$rage emplo%ee thrift.

o pro!i e a gro$p i ce ti!e for a large o$tp$t. o i s$re emplo%ee sec$rit%.

o emo strate some meas$re of social j$stice to emplo%ees.

The purpose of profitJsharing is the achievement of industrial harmon#.

Forms of ProfitJSharing" +rofit5shari g ma% e o 5

Industr# Basis" ere the profit of a $m er of i $strial $ its i the same i $str% ma% e

poole together to etermi e the share of la o$rers. S$ch a scheme has the a !a tage of p$tti g

the 0hole la o$r force i a partic$lar i $str% o a $ iform asis. 'oreo!er3 if a certai

i $strial $ it someho0 sho0s a loss i a partic$lar %ear3 its 0or-ers are ot epri!e of their

rem$ eratio eca$se other $ its ha!e ma e a goo profit.

+ocalit# Basis" I $strial $ its i a partic$lar localit% ma% pool their profits to etermi e

la o$rJs rem$ eratio % 0a% of profit5shari g. o0e!er3 if there are heteroge eo$s i $strial

$ it i a localit%3 0here la o$rJs 0or- is for a 0i el% i!erge t at$res3 there ma% e great

iffic$lties i ri gi g a o$t a a j$stme t i their share.

-nit Basis" his is the simplest 0a% of gi!i g a la o$rer a share i the profits of the i i!i $al

$ erta-i g i 0hich he is emplo%e . his mo e of profit5shari g esta lishes a close

relatio ship et0ee the efforts of la o$r a re0ar s it recei!es. I the first t0o schemes3 there0ar of 0or-ers epe s o the com i e efforts of all i a $m er of $ its.

Department Basis" Sometimes the !ario$s epartme ts of i $strial $ it ma% ha!e their

separate profit5shari g schemes. he 0or-ers i a partic$lar epartme t share i the profits

ma e % that epartme t. his aims at ri gi g a o$t a e!e closer relatio ship et0ee a

0or-erJs efforts a the re0ar he recei!es.

According to David De $en o and Stephen Robbins &5

K $ma Reso$rce 'a ageme t is co cer e 0ith the peopleJ ime sio i ma ageme t. Si ce e!er%

orga i7atio is ma e $p of people3 acH$iri g their ser!ices3 e!elopi g their s-ills3 moti!ati g them to

higher le!els of performa ce a e s$ri g that the% co ti $e to mai tai their commitme t to the

orga i7atio are esse tial to achie!i g orga i7atio al o jecti!es.N

According to &d in Flippo"J

K R' is the pla i g3 orga i7i g3 irecti g a co trolli g of the proc$reme t3 e!elopme t3

compe satio 3 i tegratio a mai te a ce a separatio of h$ma reso$rces to the e that i i!i $al3

orga i7atio al a societal o jecti!es are accomplishe .N

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In the present scenario@ /R managers perform a variet# of responsibilities. %o it is more strategic

as per the demands of the industr#. A role of /R manager is as under"J

'a agi g people

'oti!ati g the 0or-force

,ompete c% *e!elopme t Recr$itme t a rai i g

he r$st #actor

>or- life Bala ce #actor

Attritio /Rete tio of the ale t ool

Bri gi g the *ema S$ppl% 8ap

$oncerns in /uman Resource 0anagement

(. Determining the numbers to be emplo#ed at an# location If orga i7atio s o!er o the si7e of their 0or-force it 0ill carr% s$rpl$s or $ er$tili7e staff.

Alter ati!el%3 if the opposite misj$ gme t is ma e3 staff ma% e o!erstretche 3 ma-i g it har or

impossi le to meet pro $ctio or ser!ice ea li es at the H$alit% le!el e pecte .

*. Retaining #our highl# sGilled staff

Iss$es a o$t rete tio ma% ot ha!e ee to the fore i rece t %ears3 $t all it ee s is for orga i7atio s to

lose -e% staff to reali7e that a $ ersta i g of the patter of resig atio is ee e . h$s orga i7atio s

sho$l mo itor the e te t of resig atio 3 isco!er the reaso s for it3 esta lish 0hat it is costi g the

orga i7atio 3 compare losses 0ith other similar orga i7atio s.

3. Hhere ill the neKt generation of managers come fromQ

'a % se ior ma agers are tro$ le % this iss$e. he% ha!e see tra itio al career paths isappear. he%

ha!e ha to ri g i se ior staff from else0here. B$t the% recog ise that 0hile this ma% ha!e ealt 0ith a

short5term s-ills shortage3 it has ot sol!e the lo ger term H$estio of ma agerial s$ppl%& 0hat sort3

ho0 ma %3 a 0here 0ill the% come fromU o a ress these H$estio s %o$ ee to $ ersta

This then can be compared ith future requirements@ in number and t#pe. These ill of course be

affected b# internal structural changes and eKternal business or political changes. $omparing #our

current suppl# to this revised demand ill sho surpluses and shortages hich ill allo #ou to

taGe corrective action such as"

Recr$iti g to meet a shortage of those 0ith se ior ma ageme t pote tial.

Allo0i g faster promotio to fill imme iate gaps.

*e!elopi g cross f$ ctio al tra sfers for high fliers.

iri g o fi e 5term co tracts to meet short5term s-ills/e perie ce eficits.

Re $ci g staff $m ers to remo!e loc-ages or forthcomi g s$rpl$ses.

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h$s appropriate recr$itme t3 eplo%me t a se!era ce policies ca e p$rs$e to meet $si ess ee s.

:ther0ise processes are li-el% to e hapha7ar a i co siste t. he 0ro g sort of staff is e gage at the

0ro g time o the 0ro g co tract.

: Data Anal#sis ; Interpretation

'.1 0uestionnaire Analysis

1. Hhether the remuneration paid b# the compan# is at par ith the level of responsibilit# on

the emplo#ees or notQ

,n the basis of level of management

Response Top

management

0iddle

0anagement

+o

0anagement

Total Score

& ( * 3 < 39

L1 * < 5 (* 5>1 > : () 3* ) () *= :5%S * > (3 *3 *3

Total (3 *) :> (99 *:(Score 3) =3 (3) *:(

0ean score 3.9 *.:( *.3) *.:(

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Score *.:(J(! *: 3=.=:

Interpretation

It is o ser!e from the a o!e ta le that the respo e ts are ot satisfie ( total mea scoreV2.C)

0ith the rem$ eratio pac-age pai i comme s$rate 0ith the le!el of respo si ilit% gi!e %

the compa %.

I relatio to this aspect the op ma ageme t opi io (CEM) is m$ch etter tha the 'i le

ma ageme t (=L.LCM) a 6o0er ma ageme t (=4.LCM)

*. Hhether the pa# pacGage is enhanced at regular intervals or notQ


Response Top

management

0iddle

0anagement

+o

0anagement

Total Score

& : : (9 5 *9L1 (< *5 3* (> =*

1 (* (* 3< *9

%S ( < (* () ()Total (3 *) :> (99 *5)

Score 59 =( (3> *5)

0ean score 3.9= *.55 *.3= *.5)

Score *.5)J(! *: 3=.*:

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Interpretation

#rom the a o!e ta le it is o ser!e that3 the o!erall emplo%ees o ot gi!e stro g s$pport (total

mea scoreV2.49) to the stateme t that pa% pac-age is reg$larl% e ha ce .

I the same3 co te t3 it is see that there is iffere ce i egrees of complia ce as op

'a ageme t :pi io ('ea Score V=.EL) is more s$pporti!e tha the 'i le ma ageme t

('ea ScoreV2.44) a the 6o0er ma ageme t (mea ScoreV2.=L)

3. Hhether the accommodation or /RA provided b# the compan# is satisfactor# or notQ


Response Top

management

0iddle

management

+o

0anagement

Total Score

& : (9 *9 = 3:L1 (* *9 59 (> =*1 (> (* 5: *: =:S 5 ** *> *= :5

%S ( = (: *3 *3Total (3 *) :> (99 *:)Score 59 =( (5> *:)

0ean score 3.9= *.55 *.:: *.:) Score *.:)J(! *: 3).*:

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Interpretation

#rom the statistical ata i the a o!e ta le3 it ca e i ferre that the emplo%ees are ot

completel% satisfie (total 'ea ScoreV2.C9) 0ith the accommo atio facilities e te e % the

compa %.

I relatio to this aspect3 the opi io of the op ma ageme t is some0hat more optimistic

('ea ScoreV2.44) a 6o0er 'a ageme t ('ea ScoreV2.CC).

5. Hhether the medical facilities availed to the emplo#ees is satisfactor# or notQ


Response Top

management

0iddle

0anagement

+o

0anagement

Total Score

& (9 3: 59 (= >:L1 (< (* 3< (< (> 5> *> >5S * *9 3> 39 (99 39*Score 3< >> ( 39*

0ean score *.=< 3.93 *.>) 3.9* Score 3.9*J(! *: :9.:

S B I 49


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Interpretation

#rom the ata gathere $ri g the s$r!e% a a al%7e i the a o!e ta le3 it is clear that most of

the emplo%ees are H$ite satisfie ( otal 'ea Score V =.E2) 0ith the !ario$s me ical facilities

pro!i e to them.

; li-e the earlier isc$sse compe satio practices3 i this partic$lar aspect the 'i le

ma ageme t seem to e more satisfie ('ea Score V =.E=) tha the 6o0er ma ageme t

( 'ea Score V 2.9 ) a the op ma ageme t ( 'ea Score V 2.L ).

:. Hhether the +TA facilities eKtended are attractive in comparison to other industries or notQ


Response Top

management

0iddle

management

+o

0anagement

Total Score

& (9 (: : < 39L1 > (< 3< (: *) >=S * *9 3> 39 (99 *:=Score 5* =: (59 *:=

0ean score 3.*3 *.:> *.5( *.:= Score *.:=J(! *: 3).*:

S B I CE


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Interpretation

he ata collecte thro$gh H$estio aire a a al%7e i the a o!e ta le re!eals that i total the

emplo%ees ha!e a satisfactor% !ie0 ( otal 'ea ScoreV2.CL) to0ar s the 6 A facilities a!aile

% the compa %.

his is reflecte i the opi io of the op ma ageme t ('ea scoreV=.2=) 0hich is m$ch etter

tha the opi io of the 'i le ma ageme t ('ea scoreV2.C ) a that of the 6o0er

ma ageme t ('ea scoreV2.41)

1 (> (> (99 *==Score 5* >3 (:* *==

0ean score 3.*3 *.>< *.


56/67


Interpretation

he a o!e statistical ta le re!eals that most of the emplo%ees are of the opi io that the !ario$s

i ce ti!es gi!e to them are some0hat satisfactor% ( otal 'ea ScoreV2.LL).

It seems that i this co te t3 the op ma ageme t ha!e a higher opi io ('ea scoreV=.2=)

0hich is m$ch etter tha the opi io of the 'i le ma ageme t ('ea scoreV2. ) a that of

the 6o0er ma ageme t ('ea scoreV2. 2)

=. Hhether the various allo ances are satisfactor# or notQ


Response Top

0anagement

0iddle

0anagement

+o

0anagement

Total Score

& : (: (9 < 39L1 5 5 *5 > 3*1 *5 *5 3< *> >5S < *< (99 *:(Score 3) =3 (3) *:(

0ean score 3.9 *.:( *.3) *.:( Score *.:(J(! *: 3=.=:

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Interpretation

he a o!e statistical ta le re!eals that the emplo%ees are ot satisfie ( otal 'ea ScoreV2.C1)

0ith the allo0a ces attache to their asic pa%.

It seems i this co te t3 that the op ma ageme t is m$ch more satisfactor% ('ea scoreV=.EE)

compare to the 'i le ma ageme t ('ea scoreV2.C1) a the 6o0er ma ageme t ('ea

scoreV2.=9).

>. Hhether the retirement benefits much as gratuit# are satisfactor# or notQ


Response Top

management

0iddle

0anagement

+o

0anagement

Total Score

& (: (9 39 (( ::L1 *9 3< 59 *5 )S 5 ** 59 33 3 (:* 39(

0ean score 3.) *.)3 3.9( Score 3.9(J(! *: :9.*:

S B I C=


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Interpretation

he a o!e statistical ta le re!eals that majorit% of the emplo%ees are H$ite satisfie ( otal 'ea

ScoreV2.LL) 0ith the !ario$s e efits pro!i e to them at the time of completio of jo .

It seems that i this co te t3 the op ma ageme t ha!e a higher opi io ('ea scoreV=. 9)

0hich is m$ch etter tha the opi io of the 'i le ma ageme t ('ea scoreV2. 9) a that of

the 6o0er ma ageme t ('ea scoreV2.9=)

). Hhether the emplo#ees are satisfied ith the performance appraisal s#stem adopted b# the

compan# or notQ


Response Top

management

0iddle

management

+o

0anagement

Total Score

& (9 (9 (9 < 39L1 5 (< *5 (( 551 (: (> 3) *5 =*S < (< *3 35

%S * ) (5 *: *:Total (3 *) :> (99 *3)Score 3= 5 *.3= *.*) *.3) Score *.3)J(! *: 35.=:

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Interpretation

he a o!e statistical ta le re!eals that the emplo%ees are ot satisfie ( otal 'ea ScoreV2.=9)

0ith the performa ce appraisal tech iH$e impleme te % the compa %.

It seems i this co te t3 that the isco te tme t i less i case of op ma ageme t ('ea

scoreV2. 4) i compariso to the 'i le ma ageme t ('ea scoreV2.=L) a the 6o0er

ma ageme t ('ea scoreV2.29)

(9. Hhether the annual increment and salar# hiGe is justified or notQ


Response Top

0anagement

0iddle

0anagement

+o

0anagement

Total Score

& 9 (9 (9 5 39L1 (< *9 (* (* 5>1 (> ) 3< *( *< :*

%S ( ) *= 3= 3=Total (3 *) :> (99 **9Score 3) ((3 **9

0ean score 39 *.35 (.)5 *.* Score *.*J(! *: 39.9

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Interpretation

he a o!e statistical ta le re!eals that the emplo%ees are ot satisfie ( otal 'ea ScoreV2.2E)

0ith the patter of a $al i creme t a raise i salar%.

It seems i this co te t3 that the op ma ageme t are more satisfie ('ea scoreV=.E) 0hereas

the 6o0er ma ageme t seem to e more satisfie ('ea scoreV1.94) tha the 'i le

ma ageme t ('ea scoreV2.=4)

((. Hhether the compan# ensures satisfactor# emplo#ee elfare or notQ


Response Top

0anagement

0iddle

0anagement

+o

0anagement

Total Score

& (: (: (: ) 5:L1 5 (< 5> (= 1 *( *= 3) *) >=S * (< 5< 3* (99 *==Score 53 =) (:: *==

0ean score 393 *.=* *.


61/67


Interpretation

he a o!e statistical ta le re!eals that the emplo%ees are H$ite satisfie ( otal 'ea

ScoreV2.LL) 0ith the !ario$s emplo%ee 0elfare e te e % the compa %.

It seems i this co te t3 that the op ma ageme t ('ea scoreV=.E) 0hich is m$ch etter tha

the opi io of the 'i le ma ageme t ('ea scoreV2.L2) a the 6o0er ma ageme t ('ea

scoreV2. L).

(*. Hhether the compensation pacGage given b# Siemens +td. is satisfactor# or notQ


Response Top

0anagement

0iddle

management

+o

0anagement

Total Score

& (9 (9 (: = 3:L1 5 (* *5 (9 591 *( (: 3< *5 =*S 5 *> *< 5* >5

%S ( : (( (= (=Total (3 *) :> (99 *5>Score 59 =9 ((* *5>

0ean score 3.9= *.5 (.)3 *.5> Score *.5>J(! *: 3=.9

S B I CL


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Interpretation

he a o!e statistical ta le re!eals that the emplo%ees are H$ite satisfie ( otal 'ea

ScoreV2.LL) 0ith the !ario$s emplo%ee 0elfare e te e % the compa %.It seems i this

co te t3 that the op ma ageme t is m$ch more satisfactor% ('ea scoreV=.EL) compare to the

isco te tme t reflecte i the opi io of the 'i le ma ageme t ('ea scoreV2.4) a the

6o0er ma ageme t ('ea scoreV1.9=).

5.2 S ( Analysis

Strengths S$perior H$alit% of pro $ct pro $ce .

,reati!e mi 5 the mi set of R emplo%ees

,orporate ,$lt$re 5 the corporate c$lt$re ca s$pport ma % jo ca i ates to appl% for the

positio 0ith the orga i7atio as it ca fit their perso al prefere ces a ee s

HeaGness igh +rice a +oor Relia ilit%

I sec$re >or-force

>ea- Relatio ships

+oor ,omm$ icatio

6imite fle i ilit%

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,pportunities 8ro0i g +ro $cts

pa $si ess

'ore tie $p 0ith other 0orl 5class orga i7atio s

"e0 a a !a ce tech olog%

Threats 'ore s-ille competitors.

Agi g +ro $ct

6o0 G$alit% ,ommitme t

< +imitations of the Stud#

The stud# on incentive schemes provided to emplo#ees in Siemens +imited suffers from the

follo ing limitations"

he st$ % 0as restricte to the ra ch locate at 8$rgao .

he $m er of emplo%ees s$r!e%e 0as small.

he prese t st$ % epe s o the respo se of staff3 0hich ma% e la7e .

ime limit is restricte .

Some respo e ts might ha!e ee rel$cta t i re!eali g i formatio .

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/

= $onclusion

>itho$t h$ma effort the orga i7atio ca ot accomplish its o jecti!es. It is thro$gh the com i e effort

of all the emplo%ees that mo etar% a material reso$rces are $tili7e for orga i7atio o jecti!es. his

has lea to a perceptio of emplo%ees as a orga i7atio al asset. h$s3 it is the role of the orga i7atio to

etter orga i7e its compe satio a i ce ti!es so as to retai its emplo%ees a e a le them to 0or-

more efficie tl% a pro $cti!el%.

A!aila le e!i e ce s$ggests that i ce ti!e is ecomi g i creasi gl% importa t i the face of high

t$r o!er rate a a se teeism $e to e!er more i te si!e competitio .

his st$ % re!eals that the i ce ti!e pac-age gi!e % the compa % ee s to e f$rther e!elope to

moti!ate a $plift its emplo%eeJs performa ce to their ma im$m pote tials.

his st$ % is a attempt i fi i g o$t the relatio ship of compa %Js performa ce 0ith the i ce ti!e pai

% it a f$rther tries to pro!i e s$ggestio s to gai etter performa ce.

S B I E

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