The document discusses different types of rewards for employees, including intrinsic and extrinsic rewards. Intrinsic rewards include praise and psychological benefits, while extrinsic rewards are tangible benefits like compensation and benefits. The document outlines various compensation structures like base pay, variable pay, and benefits. It also discusses criteria for an effective incentive pay plan and different ways to structure pay for individual, group, and organizational performance. Government mandated benefits like leave and social security are also covered, as well as optional employer benefits in areas like health care, retirement, time off, and more.

1. Rewarding People
Min Khaung ( EMPA – 8 )

2. TYPES OF REWARDS
• Intrinsic Rewards
• Extrinsic Rewards
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Min Khaung ( EMPA - 8 )

3. INTRINSIC REWARDS
• Intrinsic rewards may include praise for
completing a project or meeting performance
objectives.
• Other psychological and social forms of
compensation also reflect intrinsic type of
rewards.
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Min Khaung ( EMPA - 8 )

4. INTRINSIC REWARDS
• A Friendly Place
• There isn’t much Politics Around Here
• You Get a Fair Shake
• Feel Like Family
– A Caring, Nurturing Environment
– A Long Term Commitment
– We are all in it
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Min Khaung ( EMPA - 8 )

5. EXTRINSIC REWARDS
• Tangible and take both monetary and nonmonetary forms.
• One tangible component - direct compensation,
( Base pay and variable pay )
• Indirect compensation commonly consists of
employee benefits.
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Min Khaung ( EMPA - 8 )

6. TYPES OF COMPENSATION
• Base Pay - The basic compensation that an employee
receives, usually as a wage or a salary.
• Variable Pay - Another type of direct pay is variable pay,
which is compensation linked directly to individual, team,
or organizational performance
• Benefits - indirect reward for instance, health insurance,
vacation pay, or a retirement pension— given to an
employee or a group of employees for organizational
membership, regard-less of performance.
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Min Khaung ( EMPA - 8 )

7. PAY
• Pay Leader ?
• Pay Follower ?
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Min Khaung ( EMPA - 8 )

8. RECOGNIZING EMPLOYEE
CONTRIBUTIONS WITH PAY
• Incentive Pay
• Pay for Individual Performance
• Pay for Group Performance
• Pay for Organizational Performance
• Incentive Pay for Executives
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Min Khaung ( EMPA - 8 )

9. CRITERIA FOR SUCCESS
( 1 ) Individuals should have a clear line of sight
between what they do and what they will get
for doing it.
EFFORT
PERFORMANCE
RESULT
MEASURE
PAYMENT
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Min Khaung ( EMPA - 8 )

10. CRITERIA FOR SUCCESS
( 2 ) Rewards are worth having.
( 3 ) Fair and consistent means are available for
measuring or assessing performance, competence,
contribution or skill.
( 4 ) People must be able to influence their performance
by changing their behavior and developing their
competences and skills.
( 5 ) The reward should follow as closely as possible the
accomplishment that generated it.
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Min Khaung ( EMPA - 8 )

11. 1. INCENTIVE PAY
• The pay plans must be well designed.
• Effective plans meet the following requirements:
– Performance measures are linked to the organization’s
goals.
– Employees believe they can meet performance
standards.
– The organization gives employees the resources they
need to meet their goals.
– Employees value the rewards given.
– Employees believe the reward system is fair.
– The pay plan takes into account that employees may
ignore any goals that are not rewarded.
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Min Khaung ( EMPA - 8 )

12. 2. PAY FOR INDIVIDUAL PERFORMANCE
• Piecework rates
– Straight Piecework Plan
– Differential Piece Rates
• Standard hour plans
• Merit pay
• Individual bonuses
• Sales commissions
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Min Khaung ( EMPA - 8 )

13. 3. PAY FOR GROUP PERFORMANCE
• Gain sharing
– Management commitment.
– Need for change or strong commitment to continuous
improvement.
– Management acceptance and encouragement of
employee input.
– High levels of cooperation and interaction.
– Employment security.
– Information sharing on productivity and costs.
– Goal setting.
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Min Khaung ( EMPA - 8 )

14. 3. PAY FOR GROUP PERFORMANCE
– Commitment of all involved parties to the process of change
and improvement.
– Performance standard and calculation that employees
understand and consider fair and that is closely related to
managerial objectives.
– Employees who value working in groups.
• Bonus ( Group Bonus )
• Team Awards
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Min Khaung ( EMPA - 8 )

15. 4. PAY FOR ORGANIZATIONAL
PERFORMANCE
• Profit Sharing
• Stock Ownership
– Stock Options
– Employee Stock Ownership Plans
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Min Khaung ( EMPA - 8 )

16. 5. INCENTIVE PAY FOR EXECUTIVES
• Short Term Incentives - bonuses based on the
year’s profits, return on investment, or other
measures related to the organization’s goals.
• Long Term Incentives - stock options and stock
purchase plans
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Min Khaung ( EMPA - 8 )

17. THE ROLE OF EMPLOYEE BENEFITS
• benefits serve functions similar to pay.
• Benefits contribute to attracting, retaining, and
motivating employees.
• Different employees look for different types of
benefits.
• Employers need to communicate effectively so
that the benefits succeed in motivating
employees
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Min Khaung ( EMPA - 8 )

18. STRATEGIC BENEFITS CONSIDERATION
• Competitive Advantage
• Workforce Attraction & Retention
• Benefit Management & Communication
– Benefit Design
– Benefit Administration
– HR Technology and Benefits
– Benefit Measurement
– Benefit Cost Control
– Communication to Employees
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Min Khaung ( EMPA - 8 )

19. TYPES OF BENEFIT
• Government Mandated Benefit
• Employer Voluntary Benefit
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Min Khaung ( EMPA - 8 )

20. GOVERNMENT MANDATED BENEFIT
• Social Security
• Annual Leave, Medical Leave, Maternity Leave
• Gazetted Holiday
• Working Hour
• Overtime Benefit
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Min Khaung ( EMPA - 8 )

21. SOCIAL SECURITY BENEFIT ( Myanmar )
• Health and Social Care Insurance System:
• Family Assistance Insurance System:
• Invalidity Benefit, Superannuation Pension
Benefit and Survivors’ Benefit Insurance
System:
• Unemployment Benefit Insurance System:
• Other Social Security System:
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Min Khaung ( EMPA - 8 )

22. EMPLOYER VOLUNTARY BENEFIT
( 1 ) Security Benefit
( 2 ) Health-Care Benefit
( 3 ) Retirement Benefit
( 4 ) Financial Benefit
( 5 ) Family Benefit or Family Oriented Benefit
( 6 ) Time-off Benefit
( 7 ) Miscellaneous Benefit
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Min Khaung ( EMPA - 8 )

23. ( 1 ) SECURITY BENEFIT
– Workers Compensation
– Unemployment Compensation
– Severance Pay
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Min Khaung ( EMPA - 8 )

24. ( 2 ) HEALTH-CARE BENEFIT
• Medical Check up
Min Khaung ( EMPA - 8 )
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25. ( 3 ) RETIREMENT BENEFIT
Non-contributory Plan
Contributory plan
Employee Provident Fund
Min Khaung ( EMPA - 8 )
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26. ( 4 ) FINANCIAL BENEFIT
Insurance
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•
•
•
•
Health
Life
Disability
Long-term care
Legal
Financial
Services
Educational
Assistance
• Credit Union
• Purchase
Discount
• Thrift/savings
Plans
• Financial
Planning
• Relocation
Assistance
• Tution Aid
• Trade Training
• Professional
certifications
• Learning
Materials
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Min Khaung ( EMPA - 8 )

27. ( 5 ) FAMILY BENEFIT OR FAMILY ORIENTED
BENEFIT
• Family & Medical Leave Act ( FMLA )
• Family Care Benefit
• Benefit for Domestic Partner
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Min Khaung ( EMPA - 8 )

28. ( 6 ) TIME-OFF BENEFIT
• Holiday Pay
• Vacation Pay
• Leaves of Absence
• Paid Time-off Plan
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Min Khaung ( EMPA - 8 )

29. ( 7 ) MISCELLANEOUS BENEFITS
• Social & Recreational Benefit
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Min Khaung ( EMPA - 8 )

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Min Khaung ( EMPA - 8 )