Reward and payment for ob and management student
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Reward and payment for ob and management student
- 2. Method of Wages Time Rate Method • It is very simple method. • Easy to calculate. • Wages paid as per Time on Month/ Day/ Hours Basis. • Hourly Rate is fixed like 10 Per Hour. If worker work for 5 hours he will get 5*10 =50. • Office timing is 9 -5 and you will get 2000 per month. • Production (Output) not consider. • Unity of work. • No motivation. • Need Supervision.
- 3. Method of Wages Piece Rate Method • It is very simple method. • Easy to calculate. • Wages paid as per Output. • Output Rate is fixed like 10 Per Unit. If worker work for 5 hours he will get 5*10 =50. • Production (Output) consider. • No Unity of work. • Motivation. • Need Supervision. • Increase quantity of output but also affect quality. • Loss to worker due to machine failure.
- 4. Method of Incentive Fixed salary system increase turnover ratio and reduce efficiency. Incentive – Goal Achieve or more than target. Financial rewards other than salary.
- 5. Method of Incentive • Combination of time + piece. • Per Hour Rate is 10 and standard for output is 5 Unit. If you produce more than 5 unit, you will get 110% of salary. • Quality check. • Earn More.
- 6. Method of Incentive Taylor’s differential plan – Higher Piece Rate – Above Target Lower Piece Rate – Below Target Normal Piece Rate – Up to Target. Merric Multiple Rate System 120%– Above Target 80% – Below Target 110% – Up to Target
- 7. Method of Incentive Halsey Plan – Time Save = Standard Hours - Actual Hours Bonus is given for Time Save. St. 8 and per hour 2 Rs. • Case (1): Time Taken = 8 hrs Earnings = 8 x 2 = Rs 16 • Case (2): Time Taken = 10 hrs Earnings = 10 x 2 = Rs 20 • Case (3): Time Taken= 6 hrs Earnings: Time wages = 6x 2 = Rs 12 Bonus = ½ x 2 x 2 = Rs Rs 2
- 8. Method of Incentive Rowan Plan – Time Save = Standard Hours - Actual Hours • Standard Time = 8 hrs Rate per hour = Rs 2 • Case (1): Time Taken = 8 hrs Earnings = 8 x 2 = Rs 16 • Case (2): Time Taken = 10 hrs Earnings = 10 x 2 = Rs 20 • Case (3): Time taken = 6 hrs Earnings: Time Wages = 6 x 2 = Rs 12 Bonus = 2/8 X 6 = Rs 1.5
- 9. Method of Incentive Emerson Plan– This scheme combines minimum day wages and the differential rate to Calculate Efficiency Rate. Per day rate is 10 & incentive is applicable. Below 66.67%– Normal Rate 66.67% to 80% = Normal Rate + 4% Bonus More Than 80% to 100% = NR + 20% Bonus More than 100% = NR + 40% Bonus
- 10. Method of Incentive Production Method – Output more than standard. Save Cost of Production. Scanlon Plan = Suggestion from employee for reducing the cost and increase performance. If plan works, employee or group of employee will get incentive. Profit Sharing = It is distributed to employee in the form of money or share on basis of some parameter for example long service in firm
- 11. Method of Incentive ESOP = Employee Stock Option Provide shares to existing employee before issuing share in the market. An employee stock ownership plan (ESOP) is an employee benefit plan that gives workers ownership interest in the company in the form of shares of stock.
- 12. Microsoft’s Employee Stock Purchase Plan The ESPP allows Microsoft employees to set aside some of their after-tax paychecks to purchase Microsoft stock. Microsoft allows their employees to contribute up to 15% of their salary into the ESPP annually. Then, the funds will be used every quarter to purchase Microsoft stock at a 10% discount from its Fair Market Value.
- 13. Importance Motivation factor Retention Improve efficiency Flexible working Promotion Reduce cost of production