presentation on hrm topic
TRANSCRIPT
![Page 1: presentation on hrm topic](https://reader033.vdocuments.us/reader033/viewer/2022051502/58e8d5f41a28abb3398b5fc5/html5/thumbnails/1.jpg)
WELL COME EVERYONE
Presentation on
“Incentive pay system”
![Page 2: presentation on hrm topic](https://reader033.vdocuments.us/reader033/viewer/2022051502/58e8d5f41a28abb3398b5fc5/html5/thumbnails/2.jpg)
05/02/2023
Presented to: “MAM BISMA RAJA”
PRESENTED BY:Ahmad Kamal.Hina Tahir.M .Hanif.
M.COM (II)
![Page 3: presentation on hrm topic](https://reader033.vdocuments.us/reader033/viewer/2022051502/58e8d5f41a28abb3398b5fc5/html5/thumbnails/3.jpg)
Incentives pay system.
![Page 4: presentation on hrm topic](https://reader033.vdocuments.us/reader033/viewer/2022051502/58e8d5f41a28abb3398b5fc5/html5/thumbnails/4.jpg)
4
Learning outcomes• Incentive pay system?• What are incentives?• Types of incentives• Individual incentives• Group incentives• Variable Pay
![Page 5: presentation on hrm topic](https://reader033.vdocuments.us/reader033/viewer/2022051502/58e8d5f41a28abb3398b5fc5/html5/thumbnails/5.jpg)
05/02/2023 5
Incentive pay system?“Definition” “Pay plans designed to relate pay directly to
performance or productivity; often used I
conjunction with a base wage and salary system”
![Page 6: presentation on hrm topic](https://reader033.vdocuments.us/reader033/viewer/2022051502/58e8d5f41a28abb3398b5fc5/html5/thumbnails/6.jpg)
What is incentive?• In the words of Burack & Smith,
"An incentive scheme is a plan or program to motivate individual or group performance.
An incentive program is most frequently built on monetary rewards (incentive pay or a monetary bonus), but may also include
a variety of non-monetary rewards or prizes”.
![Page 7: presentation on hrm topic](https://reader033.vdocuments.us/reader033/viewer/2022051502/58e8d5f41a28abb3398b5fc5/html5/thumbnails/7.jpg)
7
• Consists of both ‘monetary’ & ‘non-monetary’ elements.
• Timing, accuracy & frequency of incentives• Proper communication of the incentive plan to the
employees
features of an incentive plan
![Page 8: presentation on hrm topic](https://reader033.vdocuments.us/reader033/viewer/2022051502/58e8d5f41a28abb3398b5fc5/html5/thumbnails/8.jpg)
8
Requirement of incentive plans
• The first concerns the procedures and methods used to appraise employee performance.
(A key issue in performance measurement is the degree of trust in management. If the employees distrust management, it is almost impossible to establish a sound performance appraisal system).
• The second requirement is that the incentive must be based on performance.
![Page 9: presentation on hrm topic](https://reader033.vdocuments.us/reader033/viewer/2022051502/58e8d5f41a28abb3398b5fc5/html5/thumbnails/9.jpg)
9
Types of incentive plans
• Individual incentives.• Group incentives.
![Page 10: presentation on hrm topic](https://reader033.vdocuments.us/reader033/viewer/2022051502/58e8d5f41a28abb3398b5fc5/html5/thumbnails/10.jpg)
10
Individual incentive• individual incentives are usually based on the
performance of the individual as opposed to those of the group or organization. However, at managerial levels, individual incentives are often based on the performance of the manager’s work unit.
![Page 11: presentation on hrm topic](https://reader033.vdocuments.us/reader033/viewer/2022051502/58e8d5f41a28abb3398b5fc5/html5/thumbnails/11.jpg)
Types of individual incentive
• Piece Rate Plans• Plans Based on Time Saved• Plans Based on Commissions• Individual Bonuses• Suggestion Systems• Incentives for Managerial Personnel
![Page 12: presentation on hrm topic](https://reader033.vdocuments.us/reader033/viewer/2022051502/58e8d5f41a28abb3398b5fc5/html5/thumbnails/12.jpg)
Piece Rate Plans
Piece rate plan devised by Frederick W. Taylor that,
“ Pays one rate for all acceptable units produced up to some standard and then a higher rate for all pieces produced if the output exceeds the standard”
![Page 13: presentation on hrm topic](https://reader033.vdocuments.us/reader033/viewer/2022051502/58e8d5f41a28abb3398b5fc5/html5/thumbnails/13.jpg)
13
Plan based on time saved
Incentive plans based on time saved give an employee bonus for reaching a given level of production or output in less than the standard time.
• Plan based on commission plan Incentive plan that rewards employees, at least in part, based on their sales
volume.
![Page 14: presentation on hrm topic](https://reader033.vdocuments.us/reader033/viewer/2022051502/58e8d5f41a28abb3398b5fc5/html5/thumbnails/14.jpg)
14
Plan based on individual• Bonus Reward that is offered on a one-time basis for high
performance.• merit pay increase Reward based on performance but perpetuated year
after year.
![Page 15: presentation on hrm topic](https://reader033.vdocuments.us/reader033/viewer/2022051502/58e8d5f41a28abb3398b5fc5/html5/thumbnails/15.jpg)
Suggestion system “Systems that usually offer cash incentives for employee suggestions that result in the either increased profits or reduced costs”
![Page 16: presentation on hrm topic](https://reader033.vdocuments.us/reader033/viewer/2022051502/58e8d5f41a28abb3398b5fc5/html5/thumbnails/16.jpg)
Incentive for managerial performance
• Annual Bonus• Long-Term Performance Plans• Stock Options for Managerial Personnel1. Annual Bonus: incentive for managerial employees is the annual
cash bonus.
![Page 17: presentation on hrm topic](https://reader033.vdocuments.us/reader033/viewer/2022051502/58e8d5f41a28abb3398b5fc5/html5/thumbnails/17.jpg)
• Long-Term Performance Plans: These plans usually award top executives a set
number of performance units at the beginning of a performance period. The actual value
of the units is then determined by the company’s performance over the performance period, usually from three to five years.
![Page 18: presentation on hrm topic](https://reader033.vdocuments.us/reader033/viewer/2022051502/58e8d5f41a28abb3398b5fc5/html5/thumbnails/18.jpg)
• Stock Options for Managerial Personnel:
Stock option plans are generally designed to give managers an option to buy company stock at a predetermined, fixed price.
![Page 19: presentation on hrm topic](https://reader033.vdocuments.us/reader033/viewer/2022051502/58e8d5f41a28abb3398b5fc5/html5/thumbnails/19.jpg)
19
Group incentive Incentives based on group rather
than individual performance. Types of group incentive:1. organization wide incentives.2. Gain sharing.3. Scanlon plan.4. Employee stock ownership plan
![Page 20: presentation on hrm topic](https://reader033.vdocuments.us/reader033/viewer/2022051502/58e8d5f41a28abb3398b5fc5/html5/thumbnails/20.jpg)
Organization wide incentives.
Incentives that reward all members of the organization based on the performance of the entire organization.2. Gain sharing. incentive plans that involve employees in a common
effort to achieve the company’s productivity objectives.
![Page 21: presentation on hrm topic](https://reader033.vdocuments.us/reader033/viewer/2022051502/58e8d5f41a28abb3398b5fc5/html5/thumbnails/21.jpg)
4. Scanlon plan. Organization wide incentive plan that provides employees with a bonus based on tangible savings in
labor costs.5. Employee stock ownership plan. Form of stock option plan in which the organization provides for purchase of its stock by employees at a
set price for a set time period based on the employee’s length of service and salary and the profits of the organization.
![Page 22: presentation on hrm topic](https://reader033.vdocuments.us/reader033/viewer/2022051502/58e8d5f41a28abb3398b5fc5/html5/thumbnails/22.jpg)
Variable pay Variable pay is an approach to compensation that attempts
to reward employees by linking a percentage of their pay to certain performance accomplishments. Explanation: One difference between variable pay programs and most of
the previously described incentive programs is that most variable pay programs make all employees’ pay variable as opposed to the pay of certain groups, such as senior executives or salespeople.
![Page 23: presentation on hrm topic](https://reader033.vdocuments.us/reader033/viewer/2022051502/58e8d5f41a28abb3398b5fc5/html5/thumbnails/23.jpg)
23
. A second difference is that many variable pay programs utilize individual, group, and organizational performance measures or some combination of these to determine an individual’s incentive pay.
Con’t
![Page 24: presentation on hrm topic](https://reader033.vdocuments.us/reader033/viewer/2022051502/58e8d5f41a28abb3398b5fc5/html5/thumbnails/24.jpg)
![Page 25: presentation on hrm topic](https://reader033.vdocuments.us/reader033/viewer/2022051502/58e8d5f41a28abb3398b5fc5/html5/thumbnails/25.jpg)
05/02/2023 25
![Page 26: presentation on hrm topic](https://reader033.vdocuments.us/reader033/viewer/2022051502/58e8d5f41a28abb3398b5fc5/html5/thumbnails/26.jpg)
Do you have any more questions?