Assignment

On

Performance

Management

(New Innovative Ways of

Compensation)

Submitted to: Submitted by:

Respected Nidhi mam Manish

Assistant professor(UILMS) Roll No-602

MBA 2nd Year

Defination

something (such as money) given or received as payment or reparation, or can refer to;

Damages -

Legal term referring to the financial compensation recoverable by reason of another's breach of duty; the money paid or awarded to a plaintiff.

Workers compensation-

Is a payment provided to employees when they injured while at works.

Remuneration-

Is pay or salary, typically monetary payment for services rendered, as in an employment. Usage is considered formal.

Executive compensation-

Is how top executives of business corporations are paid. This includes a basic salary, bonuses, shares, options and other company benefits for work on the board of directors.

Deferred compensation-

Is an arrangement in which a portion of an employee's income is paid out at a date after which that income is actually earned.

Example of Deferred Compensation; PENSION, RETIREMENT PLAN.

Introduction

A key to attracting and keeping satisfied workers is to ensure they feel they are receiving fair and unbiased compensation for the work that they do. This does not mean that the highest paid employees are necessarily the most satisfied employees; in fact, their wages are just one part of the equation. There are a host of other direct and non-monetary benefits that can complete the total compensation package you are able to offer your employees.

Employers are using a variety of formal benefits, such as health insurance and retirement saving plans. Examples of innovative and non-monetary benefits, such as flex-time and worksharing,

are also growing. In all cases, the compensation and benefits you offer must be meaningful to each individual employee if it is to be effective in keeping your workers motivated and working for you.

A compensation package is the combination of benefits that an employer offers to employees. This may include wages, insurance, vacation days, guaranteed raises, and other perks. Strong compensation packages are often used to attract and keep good employees, and to promote certain company values. A business that does not pay the highest wages may still be competitive by offering free or inexpensive childcare to employees

Almost every compensation package includes consistent wages or salary. This may include a guarantee of regular increased on the cost of living, time with the company, or the job performance of the individual

Incentive programs

Incentive programs are another way of rewarding employees who perform well. The added benefit for you as an employer is that this expense is only incurred if the company has seen additional benefits, either in the quality of service or in direct extra profits from production. Many employees appreciate incentives more than the base pay.

Most incentive programs have a cash-cost to them, but that is not always the case. The following are descriptions of some of the common types of incentive programs employers offer:

ProfitsharingEmployees share in the profits of the company, thus directly benefiting from their company’s success. The better a company does, the more benefits individual employees will gain so there is a real incentive for employees to perform well and to encourage co-workers to perform well too. Profit sharing, sometimes referred to as gain sharing, results in win-win situations for a business and its employees.

SpotBonusOne form of spot bonus is referred to as “intrapreneuring.” In these cases, employees are provided with a special incentive for coming up with new ideas that save the company money or increase its revenues. Other forms of spot bonuses may be provided for taking special safety precautions, providing outstanding customer service or performing other acts that are important to the company. This type of bonus could be cash, gift certificates, passes or access to special training programs of the employee’s choice, etc.

RecognitionProgramsThese types of programs are usually geared to boosting the morale of employees. Some examples are “Employee of the Month” or “Hardest Worker.” Sometimes employers also provide a day off, a special parking space for a period of time, or the right to have the performance mascot in their work area.

Sign-onBonusThis bonus is for new employees who sign a contract with the company. This is meant to establish goodwill and buy out any remaining compensation the employee might have had with another company.

Milestone Bonus

Milestone bonuses are used to recognize an achievement such as completing a huge project or length of service. Some examples are:

taking a project team to a movie or dinner;

Gift certificates for an employee and his/her family after a special assignment;

5-year service plaques.

Referral Bonus

When employers are having trouble finding workers, one of the best sources of referral is from present employees. Providing a bonus to employees who refer successful candidates for hiring is a very inexpensive approach to recruiting. Current employees are unlikely to refer people who are not willing or able to do the work, as it will mean more work for them.

Holiday Bonus

Holiday bonuses usually come around the Christmas holiday season or the end of the year. They can range from small gifts to one month’s salary.

Sales Commission

Commission occurs when an employee sells something. The reward is a certain percentage of the total volume. It can range from 0-50% of the sale.

ADITYA BIRLA GROUP

About the company

Aditya Birla Group, a $28 billion enterprise is one of India's oldest business establishments. Started in 1857, the group today has wide range of business interests. Headquartered in Mumbai, the group has presence in more than 25 countries. More than 50 percent of the group's revenue comes from overseas operations. It has a presence in 15 industrial sectors and ownership of over 40 companies. Of these four are the group companies, seven wholly owned firms operating only in India, 25 are international firms and four joint ventures. All these companies are spread across sectors like in aluminium, BPO, carbon black, cement, chemicals, copper, fatty acids/ fatty alcohol, fertilisers, finance and insurance, insulators, mining, retail, software, telecom and textiles. Grasim Industries Ltd, Hindalco Industries Ltd, Aditya Birla Nuvo Ltd and UltraTech Cement Ltd are the four group companies under which all other companies operate.

Bonuses: Some companies offer a signing bonus or a yearly incentive bonus. Profit sharing is one way this is offered.

Long-Term Incentives: These are often stock options or grants.

Contests:

Incorporating a reward into some sort of contest that builds anticipation and

momentum for attaining certain sales goals is another way to motivate your sales associates.

While it is important to allow employees to excel and to be recognized for their individual

achievements, contests that focus on promoting the efforts of the group entice people to work

together because it rewards all of them if the goals are met.

A poorly conceived contest with unrealistic goals can do more harm than good, lowering morale

and reflecting negatively on management. A program that is done well can create loyalty,

increase sales and build camaraderie.

Health Insurance: Some companies provide better health plans than others.

Medical assistance program: The Medical Assistance Program and the Medical Benefit Scheme cover you, your spouse and your children and is a reimbursable amount. You will also be

eligible for the Catastrophic Medical Assistance Plan and Mediclaim benefits

Work-Life Balance: To give you a perfect balance of work and life, Aditya birla group has initiated elements like paid holidays, maternity benefit with extended leave of absence and sabbaticalsYou are also encouraged to be a part of our various Corporate Social Responsibility campaigns under the banner 'aditya group'

.

Life and disability insurance coverage:

Aditya birla group team members enhanced financial security during times of uncertainty. All team members have Basic Life Insurance coverage, and Supplemental Life Insurance can be purchased at group rates for you, your spouse and your children. Aditya group also offers Will Preparation Services and several insurance coverage plans for additional protection:

Accidental Death and Dismemberment Insurance Business Travel Accident Insurance Short-term Disability Coverage Long-term Disability Coverage

HCL

About the company

The 35 year old enterprise, founded in 1976, is one of India's original IT garage start ups. Its range of offerings span R&D and Technology Services, Enterprise and Applications Consulting, Remote Infrastructure Management, BPO services, IT Hardware, Systems Integration and Distribution of Technology and Telecom products in India. The HCL team comprises 90,000 professionals of diverse nationalities, operating across 31 countries including 505 points of presence in India. HCL has global partnerships with several leading Fortune 1000 firms, including several IT and Technology majors.

Life insurance: Full life insurance cover by company

Cell phone: Provide free cell phone facility.

Referral Bonus:

When employers are having trouble finding workers, one of the best sources of referral is from present employees. Providing a bonus to employees who refer successful candidates for hiring is a very inexpensive approach to recruiting. Current employees are unlikely to refer people who are not willing or able to do the work, as it will mean more work for them.

SpotBonusOne form of spot bonus is referred to as “intrapreneuring.” In these cases, employees are provided with a special incentive for coming up with new ideas that save the company money or increase its revenues. Other forms of spot bonuses may be provided for taking special safety precautions, providing outstanding customer service or performing other acts that are important to the company. This type of bonus could be cash, gift certificates, passes or access to special training programs of the employee’s choice, etc.

Paid holiday & vacation: Paid holidays may also be negotiated by employees who have a contract with employers; these are often senior level employees

Paid sick leave: Paid sick leaves are determined by the employer, or in a represented workplace, by the employee's representative, often a union, in negotiation with an employer.

Sales Commission

Commission occurs when an employee sells something. The reward is a certain percentage of the total volume. It can range from 0-50% of the sale.

Savings, investment and financial management programs:

Profit Sharing and Savings Plan (includes our 401(k) feature) MCDirect Shares Credit union Financial planning services

HINDUSTAN UNILEVER LTD.

About the company

Hindustan Unilever Limited (HUL) (BSE: 500696) is India's largest consumer goods company based in Mumbai, Maharashtra. It is owned by the British-Dutch company Unilever which controls 52% majority stake in HUL. Its products include foods, beverages, cleaning agents and personal care products.

HUL was formed in 1933 as Lever Brothers India Limited and came into being in 1956 as Hindustan Lever Limited through a merger of Lever Brothers, Hindustan Vanaspati Mfg. Co. Ltd. and United Traders Ltd. It is headquartered in Mumbai, India and has an employee strength of over 16,500 employees and contributes to indirect employment of over 65,000 people.The company was renamed in June 2007 as “Hindustan Unilever Limited.

Provident fund: A fund into which the employer and the employee both pay money regularly, so that when the employee retires or leaves the company, he or she receives a sum of money

Maternity benefits: Women employees in certain establishments for certain periods before and after child birth and provides for maternity and certain other benefits.

Consider Intangible Rewards:

Although salespeople tend to be clearly motivated by money,

money is not the only motivator in having them do a good job. Increasingly, today’s salespeople

expect more from their job in the way of feeling values, respected and appreciated in the

organization if you want them to perform at their best.

Transport facility: Provide transport facility to the office

Pension schemes: Its provide pention plan.

Children education plan:

Free education plan to the children of employeesHealth expenses of the employees and their families.

Milestone Bonus:

Milestone bonuses are used to recognize an achievement such as completing a huge project or length of service. Some examples are:

taking a project team to a movie or dinner;

Gift certificates for an employee and his/her family after a special assignment;

5-year service plaques

SONY ERICSSON

About the company

Sony Mobile Communications AB (formerly Sony Ericsson Mobile Communications AB) is a multinational mobile phone manufacturing company headquartered in Tokyo, Japan, and a wholly owned subsidiary of Sony Corporation. It was founded on October 1, 2001 as a joint venture between Sony and the Swedish telecommunications equipment company Ericsson, under the name Sony Ericsson.

Paid holiday: Paid holidays may also be negotiated by employees who have a contract with employers; these are often senior level employees

Provident fund: A fund into which the employer and the employee both pay money regularly, so that when the employee retires or leaves the company, he or she receives a sum of money

Sign-onBonus: This bonus is for new employees who sign a contract with the company. This is meant to establish goodwill and buy out any remaining compensation the employee might have had with another company.

Discount program: It means initiate a discount-card program with local merchants, which can result in 10-20% savings to staff on purchases like haircuts, clothing, food and entertainment. More than 80% of employees surveyed supported this. You don’t have to be as large as American Association of Retired Persons to initiate this idea.

Employee discount on company goods: It refers to the Offer certain goods and services Purchased by your company at cost to staff like gasoline, computers and peripherals, and office supplies. More than 65% of employees surveyed support this type of program.

SpotBonus: One form of spot bonus is referred to as “intrapreneuring.” In these cases, employees are provided with a special incentive for coming up with new ideas that save the company money or increase its revenues. Other forms of spot bonuses may be provided for taking special safety precautions, providing outstanding customer service or performing other acts that are important to the company. This type of bonus could be cash, gift certificates, passes or access to special training programs of the employee’s choice, etc.

GLAXO SMITH KLINE

About the company

GlaxoSmithKline plc (GSK) (LSE: GSK, NYSE: GSK) is a British multinational pharmaceutical, biologics, vaccines and consumer healthcare company headquartered in London, United Kingdom. It is the world's fourth-largest pharmaceutical company measured by 2009 prescription drug sales (after Pfizer, Novartis, and Sanofi).[3] It was established in 2000 by the merger of Glaxo Wellcome plc (formed from the acquisition of Wellcome plc by Glaxo plc) and SmithKline Beecham plc (formed from the merger of Beecham plc and SmithKline Beckman Corporation, which was formed by combining the Smith Kline French and Beckman companies).

GSK has a portfolio of products for major disease areas including asthma, cancer, virus control, infections, mental health, diabetes, and digestive conditions. It also has a large consumer healthcare division which produces and markets oral healthcare and nutritional products and over-the-counter medicines including Sensodyne, Boost, Horlicks, and Gaviscon. In July 2012, GSK pleaded guilty to criminal charges and agreed to a $3 billion settlement of the largest health-care fraud case in the U.S. and the largest payment by a drug company in the US. The settlement is related to the company's illegal promotion of best-selling anti-depressants and its failure to report safety data about a top diabetes drug.

Employee discount on company goods: It refers to the Offer certain goods and services Purchased by your company at cost to staff like gasoline, computers and peripherals, and office supplies. More than 65% of employees surveyed support this type of program.

Consider Intangible Rewards:

Although salespeople tend to be clearly motivated by money,

money is not the only motivator in having them do a good job. Increasingly, today’s salespeople

expect more from their job in the way of feeling values, respected and appreciated in the

organization if you want them to perform at their best.

Transport facility: Provide transport facility to the office

Paid holiday & vacation: Paid holidays may also be negotiated by employees who have a contract with employers; these are often senior level employees

Medical assistance program: The Medical Assistance Program and the Medical Benefit Scheme cover you, your spouse and your children and is a reimbursable amount. You will also be eligible for the Catastrophic Medical Assistance Plan and Mediclaim benefits

Sales Commission

Commission occurs when an employee sells something. The reward is a certain percentage of the total volume. It can range from 0-50% of the sale.