INCENTIVES AND

REMUNERATIONS

PRESENTATION

TOPIC

DEPARTMENT OF INDUSTRIAL ENGINEERING & MANAGEMENT

MUET JAMSHORO , SINDH

PRESENTATION GROUP

MOHAMMAD YOUNUS (G.L) (08IN70)UMAIR ARSHAD (08IN01)

WAZIR AHMED (08IN64)

HARIS KHAN (08IN60)

MOHAMMAD AKRAM (08IN69)

RemunerationTypes of remunerationCompensation’sEmployees Benefits CommissionPerformance linked incentives

Incentives Types of incentives Financial incentives Methods of Financial incentives i) Price rate system ii) cent percent system Non-financial incentives Questions and Answers

GROUP LEADER

MOHAMMADYOUNUS08IN70

REMUNERATION

Remuneration is a payment or compensation received for service or employment. This includes the base salary and any bonus or other economic benefits that an employee or executives received during employment.

Or Remuneration is traditionally

seen as the total income of an individual and may comprises a range of separate payments determined according to different rules.

1) COMPANSATION It is of two types i. Executives Pay Executive pay is the total

pay or financial compensation an executive offer within the co-corporation salary, and all bonuses, shares, options and any other company benefits.

TYPES OF REMUNERATION (Cnts….)

Deferred Compensation It 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 includes pensions, retirement plans and stock options.

TYPES OF REMUNERATION (Cnts….)

Some of these benefits are housing ( employer provided or

employer- paid ) group insurance ( health, dental, etc). disability income protection. retirement benefits. tuition reimbursement. sick leave. vacation ( pad and not paid). social security. funding of education etc….

TYPES OF REMUNERATION (Cnts….)

2) EMPLOYEE BENEFITS Employee benefits are various non-wage compensation provided to employees in addition to their wage and salaries

GROUP MEMBER

UMAIRARSHAD 08IN01

3) COMISSION The payment of

commission as remuneration for service rendered or product sold in a common way to reward sales people.

TYPES OF REMUNERATION (Cnts….)

5) PERFORMANCE LINKED INCENTIVES (PLI)

A performance linked incentives is a form of payment from an employer to an employees which is directly related to the performance output of an employee and which may be specified on an employment contact.

TYPES OF REMUNERATION (Cnts….)

INCENTIVES

Incentive is a reward monetary or non-monetary

Incentive given to a worker for his efficiency and hard work.

An incentive motivates and encourages a worker.

Incentive and production are

closely related with each other.

GROUP MEMBER

HARISKHAN 08IN60

TYPE’S OF INCENTIVES

INCENTIVES INCENTIVES INCENTIVES INCENTIVES

NON-FINANCIALNON-FINANCIAL

INCENTIVESINCENTIVES

NON-FINANCIALNON-FINANCIAL

INCENTIVESINCENTIVES

FINANCIAL FINANCIAL

INCENTIVES INCENTIVES

FINANCIAL FINANCIAL

INCENTIVES INCENTIVES

FINANCIAL INCENTIVES

It involves direct monetary payments or benefits to workers.

It is as a tool for better productivity and performance.

workers may receive financial benefits in the form

a) bonuses

b) profit sharing

METHODS OF FINANCIAL INCENTIVES

There are various methods of measuring the financial incentives but here we are concerned with the following;

a ) Piece rate system b ) Cent percent

premium Cent Percent Cent Percent

PremiumPremium

Cent Percent Cent Percent PremiumPremium

Methods of Methods of Financial Financial incentivesincentives

Methods of Methods of Financial Financial incentivesincentives

Piece Rate Piece Rate SystemSystem

Piece Rate Piece Rate SystemSystem

GROUP MEMBER

WAZIR AHMED 08IN64

Under this system, a piece rate for the completion of job is fixed. Now if a worker completes the job earlier, he can save his time. In this time he can make jobs and get extra money for his extra work

Earning of a worker = no. of pieces produced * rate per piece

PIECE RATE SYSTEM

Cent Percent premium

In this system the standard time for completion of the job is fixed

rate of completion during this period is also fixed.

Now the worker who

completes the job earlier they get full payment for the time saved.

GROUP MEMBER

MOHAMMAD AKRAM 08IN69

Non- Financial Incentives

The financial incentives must be supported by the non-financial incentives

Only cash wages cannot help in solving the problems of the workers

Non financial incentives play an important role in maintaining better production and efficiency in an organization.

Non- Financial Incentives (cnts.)

Some of the chief Non-financial incentives are:

i. Security of service. ii. Opportunity for training. iii. Chances of Quick Promotion. iv. Personal Reward. v. Welfare Measures. vi. Sympathetic Attitude of the

Management.

THANK YOU……………. QUESTION ????????