Seenu Hrm Alam Sir

8/7/2019 Seenu Hrm Alam Sir

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SUBMITED BY:SEENATH MROLL NO:41


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` The term wage incentive is the widest sense of

financial motivation. Incentives are monitory benefits

paid to workmen in recognition of their outstanding

performance.


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According to Human and Nickerson wage incentives

refers to all plans that provide extra pay for extra

performance in addition to regular wages for a job


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Incentive Plans can be sub divided into:

` Individual incentive plans` Group incentive plans

` Enterprise incentive plans


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` Incentive payments may be determined by the number of unitsproduced.

` Depends on productivity improvements.

Mainly5 types; Piecework

Standard Hour plan:

Bonuses

Merit pay

Lump-sum merit pay


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` The compensation is determined by the number of units theyproduce during a pay period

Computing the piece rate

For example, the standard time for producing one unit of work in a jobpaying $11.50 per hour was set at twelve minutes. The piece rate would be

$2.30 per unit, computed as follows:60(minutes per hour)

= ---------------------12(Standard time per unit)

= 5 units per hour

$11.50(hourly rate)

` = -----------------------5(units per hour)

=$2.30per unit

`


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` For example: if the standard time to install an

engine in a truck is five hours and the mechanic

completes the job in four and a half hours, thepayment would be the mechanics hourly rate time

five hours.


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` These are mainly 3 types

1) Team compensation

2) Gain sharing incentive plans

3) Co-partnership


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` When the company earn more profit, the company will sharemonitory gains with the employees.

There are three typical garnishing plans.

` Scanlon plans

` Rucker Plans

` Improshare


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` The bonus formula includes the price value of all material andservice

Value personnel costs

------------------------------Value ofproduction value ofmaterial


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Enterprise incentive plans differ from individual andgroup incentive plans in that all organizational membersparticipate in the plans compensation payout.

1. Profit sharing:

2. Stock option


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` Profit sharing plans are intended to give employees to theopportunity to increase their earnings by contributing to the growthof their organizations profit.


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` Employees are paid to incentives in addition to wageand salaries. Incentives are linked to performance.This leads to better motivation among employees.Reduced cost, reduced supervision, reduced scrap

and the like are the other benefits of incentives.Incentives are monitory benefits paid to workmen inoutstanding recognition of their outstandingperformance. An incentive system is a collection ofincentives and set of procedures for using them.


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THANK YOU

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Seenu Hrm Alam Sir