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1. Define Selection and discuss the process of Selection
Ans.
The selection process in organizations is directed towards finding the right talent for vacancies
within the organization. Typically, it is akin to filtering through a series of funnels to find the
solution via elimination.
STEPS IN SELECTION PROCESS
1. Preliminary Interview
Once a requirement is posted, a company may receive hundreds of thousands of applications. A
granular pre-process, the preliminary interview is conducted to weed out all candidates who do
not meet the essential eligibility criteria – educational qualifications, required skill sets, proven
certifications, experience. Candidates may also be assessed based on their background and level
of interest.
2. Receiving Applications
Once candidates pass the preliminary interview, organizations must aim to standardize the
application process.
3. Screening Applications
This stage includes shortlisting potential candidates from the pool of applicants who applied.
Screening can include multiple criteria, including educational prowess, relevancy in terms of
experience, etc.
4. Preliminary Tests
Preliminary tests are an essential part of the job selection process. They assess the aptitude, IQ,
emotional intelligence, proficiency, and personality of candidates.
5. Employment Interview
The selection interview is the crux of the entire process. It could be defined as an in-person
conversation that puts candidates on their feet.
6. Checking References
Although in-person interviews provide a fair idea about the candidate, contacting references
allows employers to verify their understanding.
7. Medical Examination
Although not strictly followed, medical examinations are slowly becoming commonplace among
organizations today.
As a healthy employee would require fewer sick leaves and handle stress relatively quickly,
allowing greater productivity in dynamic, fast-paced environments.
8. Final Selection
The last phase of the selection process is to cross the t’s and dot the i’s; candidates who have
successfully qualified through all rounds of the recruitment and selection in HRM receive an
offer/appointment letter by the organization.
2. Describe Human Resource Planning. Elaborate the process of Human Resource Planning
Ans.
Human resource planning (HRP) is the continuous process of systematic planning ahead to
achieve optimum use of an organization's most valuable asset—quality employees.
Human resources planning ensures the best fit between employees and jobs while avoiding
manpower shortages or surpluses.
HR Planning Processes to Follow
1. Human Resource Planning
Human Resource Planning helps an organization to identify and manage its hiring needs.
2. HR Recruitment
HR Recruitment is the process of identifying and attracting the top talent to your company. This
process involves many steps, such as interviewing, hiring, selecting and onboarding new
employees.
3. Selection Process in HRM
The selection process in HRM refers to the practice of finding interested candidates for a job
role and eliminating unsuitable candidates for the same. Selection processes are often lengthy
and tedious. It is the job of HR to make these processes systematic and efficient.
4. Documentation For HR Process
HR Documentation is a process of comprehensively writing, printing, and maintaining all
documents, agreements and contracts important to a company.
5. Employee Onboarding
Employee onboarding is a systemic process of integrating an employee into your company.
During this time, employees are given all the resources they need to succeed.
6. New Employee Induction
Employee Induction is a process that refers to the practice of welcoming new employees to your
workplace.
7. Relationship with Employees
A company’s relationship with its employees is generally weighed by two factors- employee
retention and employee engagement.
8. Leave Management
Employees in any company need time to relax and recuperate. Leave management is a process
that deals with giving time-off to your employees in a fair manner.
9. Time Management
Time Management is an HR planning process that monitors, tracks, and optimizes an
employee’s workday.
10. Performance Management
Performance management is a process that measures how well your employees are doing their
work. Most HR teams measure employee performance annually (through appraisals).
11. Benefits and Reward
Benefits, rewards, and compensation are the major external motivations for employees.
12. Performance Appraisal
Performance Appraisal is a process where an employee’s performance is evaluated.
13. Employee Survey
An employee survey process is a method of distributing questionnaires (online or offline) to
gather data and feedback.
14. Exit Interviews
Exit interviews are meetings held with an employee who is leaving your company. These
interviews become an important HR planning process, as they help your organization to obtain
honest and frank feedback.
3. Explain the meaning and types of Appraisal Methods
Ans.
Definition-
A performance appraisal is the periodic assessment of an employee’s job performance as
measured by the competency expectations set out by the organization.
The performance assessment often includes both the core competencies required by the
organization and also the competencies specific to the employee’s job.
Process of Performance Appraisal in HRM
1. Performance standard
2. Set up measurable goals
3. Communicate about performance
4. Measure actual performance
5. Discuss appraisal with employee
6. Corrective actions
7. Feedback
Modern Methods & Types of Performance Appraisal in HRM
Different companies use different methods to conduct their performance appraisal calculations. It
depends on the job role and the type of company it is. A few of the common methods doing
performance appraisals in HRM are:
1. Graphic Rating Scale Method
This method is based on the idea of rating employees based on individual characteristics. For
example, some organizations may choose to evaluate employees based on quality and quantity of
work, decisiveness & emotional stability.
Employees are rated on a fixed scale (say 1-10), based on the extent to which they meet each of
the desired criteria. The average of all the scores constitutes the overall score of the employee.
2. Ranking Method
The name of this method explains exactly what it is. The Human Resources team ranks each
employee on a list based on factors decided by the human resource department. Hence, the best
performers are on the top, and the worst performers rank at the bottom.
The grading scale method can be combined with ranking. The employees with the best overall
score on the grade scale (from 1-10) rank at the top of the list. The ranking method is preferred
because it is simple, efficient, and requires little time and money
3. Checklist Method
Employees are evaluated by making use of a checklist in this method. The checklist can have a
variety of different factors that the human resource department has chosen to be important. The
employees are then judged based on those factors The employers must select between the yes/no
options in those checkboxes.
4. Management by Objectives Method(MBO)
MBO is considered to be one of the most systematic methods in performance appraisals. The
idea is to give each employee a set of objectives that have to be achieved by them. During the
performance appraisal, the supervisors will evaluate the extent to which the objectives have been
achieved.
5. 360-degree Feedback Appraisal
This approach is basically a group performance review. The data regarding an employee’s
behavior is collected by his/her close subordinates. An employee’s colleagues might be able to
review his/her performance under a variety of situations and circumstances, which might have
escaped the employer. This allows for holistic, full-circle, multi-tiered feedback regarding a
person.
6. General Performance Appraisal in HRM
General performance appraisal is one of the most common types of performance appraisals. In
general, a manager sets goals and targets for an employee and urges them to achieve it. This
pushes the employee to achieve them and encourages them to grow.
7. Technological Performance Appraisal
In this method of performance appraisal, the employee’s technological capabilities are judged
and the Technological skills are kept at the forefront of all the other skills that are not related to
the employee’s job.
Q4.Define discipline. Enumerate the steps for disciplinary procedure
Ans. Discipline Definition: - Discipline is the regulation and modulation of human activities to
produce a controlled performance. The real purpose of discipline is quite simple. It is to
encourage employees to confirm to established standards of job performance and to behave
sensibly and safely at work.
Disciplinary Procedure
The disciplinary procedure involves the following steps:
Preliminary Investigation:
First of all, a preliminary inquiry should be held to find out whether a prima facie case of
misconduct exists.
Issue of a Charge-sheet:
Once the prima facie case of misconduct is established, charge sheet is issued to the employee.
Charge sheet is merely a notice of the charge and provides the employee an opportunity to
explain his conduct. Therefore, charge sheet is generally known as a show cause notice.
In the charge sheet, each charge should be clearly specified. There should be a separate charge
for each allegation and charge should not relate to any matter which has already been decided
upon. The charges so framed should be communicated to the individual along with the statement
of allegations on which the charges are based.
Suspension Pending Enquiry:
Depending on the gravity of charges, an employee may be suspended along with serving him the
charge sheet. The various circumstances which may warrant suspension of an individual are:
 When disciplinary proceeding is pending or contemplated.
 When engaged in the activities prejudicial to the interest or security of the state.
 Where a case in respect of any criminal offence is under investigation, inquiry or trial.
 Where continuance in office will prejudice investigation/ inquiry/trial.
 When the presence of the employee in office is likely to affect discipline.
 When his continuous presence in office is against the wider public interest.
 Where a prima face case has been established as a result of criminal or departmental
proceedings leading to the conviction, revival, dismissal, etc.
 In case of the following acts of misconduct:
 Moral Turpitude
 Corruption, embezzlement
 Serious negligence in duty resulting in loss
 Desertion of duty
 Refusal or failure to carry out written orders:
According to the Industrial Employment (Standing Orders) Act, 1946, the suspended worker is
to be paid subsistence allowance equal to one-half of his wages for the first ninety days of
suspension and three-fourths of the wages for the remaining period of suspensions, if the delay in
the completion of disciplinary proceedings is not due to the worker’s own conduct.
Notice of Enquiry:
In case the worker admits the charge, in his reply to the charge sheet, without any qualification,
the employer can go ahead in awarding punishment without further inquiry. But if the worker
does not admit the charge and the charge merits major penalty, the employer must hold an
enquiry to investigate into the charges. Proper and sufficient advance notice should be given to
the employee indicating the date, time and venue of the enquiry so that the worker may prepare
his case.
Conduct of Enquiry:
The enquiry should be conducted by an impartial and responsible officer. He should proceed in a
proper manner and examine witnesses. Fair opportunity should be given to the worker to cross-
examine the management witnesses.
Recording the Findings:
On the conclusion of the enquiry, the enquiry officer must record his findings and the reasons
thereof. As far as possible, he should refrain from recommending punishment and leave it to the
decision of the appropriate authority.
Awarding Punishment:
The management should decide the punishment purely on the basis of findings of the enquiry,
past record of the worker and gravity of the misconduct.
Communicating Punishment:
The punishment awarded to the worker should be communicated to him in written and the
earliest available opportunity. The letter of communication should contain reference to the
charge sheet, the enquiry and the findings. The date from which the punishment is to be effective
should also be mentioned.
Q5.Describe the concept of Competency and it’s linkage to various HR systems.
Ans.
Competency: The combination of observable and measurable knowledge, skills, abilities and
personal attributes that contribute to enhanced employee performance and ultimately result in
organizational success. To understand competencies, it is important to define the various
components of competencies.
• Knowledge is the cognizance of facts, truths and principles gained from formal training
and/or experience. Application and sharing of one's knowledge base is critical to individual and
organizational success.
• A skill is a developed proficiency or dexterity in mental operations or physical processes
that is often acquired through specialized training; the execution of these skills results in successful
performance.
• Ability is the power or aptitude to perform physical or mental activities that are often
affiliated with a particular profession or trade such as computer programming, plumbing, calculus,
and so forth. Although organizations may be adept at measuring results, skills and knowledge
regarding one's performance, they are often remiss in recognizing employees' abilities or aptitudes,
especially those outside of the traditional job design.
• Individual attributes are properties, qualities or characteristics of individuals that reflect
one's unique personal makeup. Individual attributes are viewed as genetically developed or
acquired from one's accumulated life experiences. Although personal characteristics are the most
subjective of the components, a growing, significant body of research links specific personality
traits to successful individual and organizational performance.
• Individually recognizing and rewarding any of these sources of expertise provides a strong
basis for individual performance engagement. However, it is their combination that results in the
unleashing of resources that are all too frequently untapped.
Linkage to various HR systems
Competency-based HR management concentrates first on the person and then on his or her outputs
or results. Competencies are enduring, while work activities and specific work tasks are transitory.
Competency models can supplement traditional job descriptions and become the foundation for an
entire HR system. When that happens, an organization is using competency-based HR
management.
Competency-based HR management views the needed outputs and the organization's work roles
or requirements from a person-oriented rather than a job-oriented perspective. This approach
makes competencies the foundation for the entire HR management function. Competencies drive
recruitment, selection, placement, orientation, training, performance management, and workers'
rewards.
Q6.Elaborate on Rewards & Incentives
Ans.
Elaborate on Rewards & Incentives.
 Incentives say “do well” and rewards say “well done.”
 Incentives tempt employees to go the extra mile and push for crucial results. The rewards
are what thanks employees for hard work, whether they’re linked to an incentive or not.
They’re not mutually dependent even though they’re often used in tandem.
Rewards:
Rewards are the actual item that gets dished out to congratulate staff for exceptional success.
They’re there to validate and celebrate performance. Rewards are most often dispensed for
achievement, like taking valuable projects live or crossing a sales threshold.
Rewards are personal trophies when they’re dispensed for achievement. Mementos of an
employee’s own excellence. Reminders of the exceptional things your staff are capable of.
Trophy value has two major effects. Vitally, staff who get these rewards are more likely to put the
effort in to achieve again the future. Equally, all staff are shown that outstanding effort is
appreciated and validated by managers.
The reward is a little amplifier to the recognition.
Incentives:
An incentive is, essentially, something that’s designed to extract a desired behaviour by offering a
reward ahead of time. For employees, that’s almost always some kind of professional performance.
Rewards are promised in exchange for the exceptional performance once an objective is met.
They’re most common in sales teams, but any teams with measurable performance could employ
an incentive scheme.
The rewards are what spices up the targets to give your employees a bit of added impetus to reach
their goals.
Types of incentives:
Incentives can be classified into three categories:
1. Financial incentives:
Some extra cash is offered for extra efficiency. For example, profit sharing plan and group
incentive plans.
2. Non-financial incentives:
When rewards or prizes are provided by the organization to motivate the employees it is known
as non-financial incentives.
3. Monetary and non-monetary incentives:
Many times, employees are rewarded with monetary and non-monetary incentives that include
promotion, seniority, recognition for merits, or even designation as permanent employee.

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Assignment hrm

  • 1. 1. Provided information is for reference purpose only. 2. Please do check for Plagiarism, add on from LMS, modify/delete each sentence & word to avoid plagiarism.) 3. Information provided is as per my findings, do check it with other sources) 1. Define Selection and discuss the process of Selection Ans. The selection process in organizations is directed towards finding the right talent for vacancies within the organization. Typically, it is akin to filtering through a series of funnels to find the solution via elimination. STEPS IN SELECTION PROCESS 1. Preliminary Interview Once a requirement is posted, a company may receive hundreds of thousands of applications. A granular pre-process, the preliminary interview is conducted to weed out all candidates who do not meet the essential eligibility criteria – educational qualifications, required skill sets, proven certifications, experience. Candidates may also be assessed based on their background and level of interest. 2. Receiving Applications Once candidates pass the preliminary interview, organizations must aim to standardize the application process. 3. Screening Applications This stage includes shortlisting potential candidates from the pool of applicants who applied.
  • 2. Screening can include multiple criteria, including educational prowess, relevancy in terms of experience, etc. 4. Preliminary Tests Preliminary tests are an essential part of the job selection process. They assess the aptitude, IQ, emotional intelligence, proficiency, and personality of candidates. 5. Employment Interview The selection interview is the crux of the entire process. It could be defined as an in-person conversation that puts candidates on their feet. 6. Checking References Although in-person interviews provide a fair idea about the candidate, contacting references allows employers to verify their understanding. 7. Medical Examination Although not strictly followed, medical examinations are slowly becoming commonplace among organizations today. As a healthy employee would require fewer sick leaves and handle stress relatively quickly, allowing greater productivity in dynamic, fast-paced environments. 8. Final Selection The last phase of the selection process is to cross the t’s and dot the i’s; candidates who have successfully qualified through all rounds of the recruitment and selection in HRM receive an offer/appointment letter by the organization. 2. Describe Human Resource Planning. Elaborate the process of Human Resource Planning
  • 3. Ans. Human resource planning (HRP) is the continuous process of systematic planning ahead to achieve optimum use of an organization's most valuable asset—quality employees. Human resources planning ensures the best fit between employees and jobs while avoiding manpower shortages or surpluses. HR Planning Processes to Follow 1. Human Resource Planning Human Resource Planning helps an organization to identify and manage its hiring needs. 2. HR Recruitment HR Recruitment is the process of identifying and attracting the top talent to your company. This process involves many steps, such as interviewing, hiring, selecting and onboarding new employees. 3. Selection Process in HRM The selection process in HRM refers to the practice of finding interested candidates for a job role and eliminating unsuitable candidates for the same. Selection processes are often lengthy and tedious. It is the job of HR to make these processes systematic and efficient. 4. Documentation For HR Process HR Documentation is a process of comprehensively writing, printing, and maintaining all documents, agreements and contracts important to a company. 5. Employee Onboarding Employee onboarding is a systemic process of integrating an employee into your company. During this time, employees are given all the resources they need to succeed.
  • 4. 6. New Employee Induction Employee Induction is a process that refers to the practice of welcoming new employees to your workplace. 7. Relationship with Employees A company’s relationship with its employees is generally weighed by two factors- employee retention and employee engagement. 8. Leave Management Employees in any company need time to relax and recuperate. Leave management is a process that deals with giving time-off to your employees in a fair manner. 9. Time Management Time Management is an HR planning process that monitors, tracks, and optimizes an employee’s workday. 10. Performance Management Performance management is a process that measures how well your employees are doing their work. Most HR teams measure employee performance annually (through appraisals). 11. Benefits and Reward Benefits, rewards, and compensation are the major external motivations for employees. 12. Performance Appraisal Performance Appraisal is a process where an employee’s performance is evaluated. 13. Employee Survey An employee survey process is a method of distributing questionnaires (online or offline) to gather data and feedback.
  • 5. 14. Exit Interviews Exit interviews are meetings held with an employee who is leaving your company. These interviews become an important HR planning process, as they help your organization to obtain honest and frank feedback. 3. Explain the meaning and types of Appraisal Methods Ans. Definition- A performance appraisal is the periodic assessment of an employee’s job performance as measured by the competency expectations set out by the organization. The performance assessment often includes both the core competencies required by the organization and also the competencies specific to the employee’s job. Process of Performance Appraisal in HRM 1. Performance standard 2. Set up measurable goals 3. Communicate about performance 4. Measure actual performance 5. Discuss appraisal with employee 6. Corrective actions 7. Feedback Modern Methods & Types of Performance Appraisal in HRM Different companies use different methods to conduct their performance appraisal calculations. It depends on the job role and the type of company it is. A few of the common methods doing performance appraisals in HRM are: 1. Graphic Rating Scale Method This method is based on the idea of rating employees based on individual characteristics. For example, some organizations may choose to evaluate employees based on quality and quantity of work, decisiveness & emotional stability.
  • 6. Employees are rated on a fixed scale (say 1-10), based on the extent to which they meet each of the desired criteria. The average of all the scores constitutes the overall score of the employee. 2. Ranking Method The name of this method explains exactly what it is. The Human Resources team ranks each employee on a list based on factors decided by the human resource department. Hence, the best performers are on the top, and the worst performers rank at the bottom. The grading scale method can be combined with ranking. The employees with the best overall score on the grade scale (from 1-10) rank at the top of the list. The ranking method is preferred because it is simple, efficient, and requires little time and money 3. Checklist Method Employees are evaluated by making use of a checklist in this method. The checklist can have a variety of different factors that the human resource department has chosen to be important. The employees are then judged based on those factors The employers must select between the yes/no options in those checkboxes. 4. Management by Objectives Method(MBO) MBO is considered to be one of the most systematic methods in performance appraisals. The idea is to give each employee a set of objectives that have to be achieved by them. During the performance appraisal, the supervisors will evaluate the extent to which the objectives have been achieved. 5. 360-degree Feedback Appraisal This approach is basically a group performance review. The data regarding an employee’s behavior is collected by his/her close subordinates. An employee’s colleagues might be able to review his/her performance under a variety of situations and circumstances, which might have escaped the employer. This allows for holistic, full-circle, multi-tiered feedback regarding a person. 6. General Performance Appraisal in HRM General performance appraisal is one of the most common types of performance appraisals. In general, a manager sets goals and targets for an employee and urges them to achieve it. This pushes the employee to achieve them and encourages them to grow. 7. Technological Performance Appraisal In this method of performance appraisal, the employee’s technological capabilities are judged and the Technological skills are kept at the forefront of all the other skills that are not related to the employee’s job.
  • 7. Q4.Define discipline. Enumerate the steps for disciplinary procedure Ans. Discipline Definition: - Discipline is the regulation and modulation of human activities to produce a controlled performance. The real purpose of discipline is quite simple. It is to encourage employees to confirm to established standards of job performance and to behave sensibly and safely at work. Disciplinary Procedure The disciplinary procedure involves the following steps: Preliminary Investigation: First of all, a preliminary inquiry should be held to find out whether a prima facie case of misconduct exists. Issue of a Charge-sheet: Once the prima facie case of misconduct is established, charge sheet is issued to the employee. Charge sheet is merely a notice of the charge and provides the employee an opportunity to explain his conduct. Therefore, charge sheet is generally known as a show cause notice. In the charge sheet, each charge should be clearly specified. There should be a separate charge for each allegation and charge should not relate to any matter which has already been decided upon. The charges so framed should be communicated to the individual along with the statement of allegations on which the charges are based. Suspension Pending Enquiry: Depending on the gravity of charges, an employee may be suspended along with serving him the charge sheet. The various circumstances which may warrant suspension of an individual are:  When disciplinary proceeding is pending or contemplated.  When engaged in the activities prejudicial to the interest or security of the state.  Where a case in respect of any criminal offence is under investigation, inquiry or trial.  Where continuance in office will prejudice investigation/ inquiry/trial.  When the presence of the employee in office is likely to affect discipline.  When his continuous presence in office is against the wider public interest.  Where a prima face case has been established as a result of criminal or departmental proceedings leading to the conviction, revival, dismissal, etc.  In case of the following acts of misconduct:  Moral Turpitude
  • 8.  Corruption, embezzlement  Serious negligence in duty resulting in loss  Desertion of duty  Refusal or failure to carry out written orders: According to the Industrial Employment (Standing Orders) Act, 1946, the suspended worker is to be paid subsistence allowance equal to one-half of his wages for the first ninety days of suspension and three-fourths of the wages for the remaining period of suspensions, if the delay in the completion of disciplinary proceedings is not due to the worker’s own conduct. Notice of Enquiry: In case the worker admits the charge, in his reply to the charge sheet, without any qualification, the employer can go ahead in awarding punishment without further inquiry. But if the worker does not admit the charge and the charge merits major penalty, the employer must hold an enquiry to investigate into the charges. Proper and sufficient advance notice should be given to the employee indicating the date, time and venue of the enquiry so that the worker may prepare his case. Conduct of Enquiry: The enquiry should be conducted by an impartial and responsible officer. He should proceed in a proper manner and examine witnesses. Fair opportunity should be given to the worker to cross- examine the management witnesses. Recording the Findings: On the conclusion of the enquiry, the enquiry officer must record his findings and the reasons thereof. As far as possible, he should refrain from recommending punishment and leave it to the decision of the appropriate authority. Awarding Punishment: The management should decide the punishment purely on the basis of findings of the enquiry, past record of the worker and gravity of the misconduct. Communicating Punishment: The punishment awarded to the worker should be communicated to him in written and the earliest available opportunity. The letter of communication should contain reference to the charge sheet, the enquiry and the findings. The date from which the punishment is to be effective should also be mentioned.
  • 9. Q5.Describe the concept of Competency and it’s linkage to various HR systems. Ans. Competency: The combination of observable and measurable knowledge, skills, abilities and personal attributes that contribute to enhanced employee performance and ultimately result in organizational success. To understand competencies, it is important to define the various components of competencies. • Knowledge is the cognizance of facts, truths and principles gained from formal training and/or experience. Application and sharing of one's knowledge base is critical to individual and organizational success. • A skill is a developed proficiency or dexterity in mental operations or physical processes that is often acquired through specialized training; the execution of these skills results in successful performance. • Ability is the power or aptitude to perform physical or mental activities that are often affiliated with a particular profession or trade such as computer programming, plumbing, calculus, and so forth. Although organizations may be adept at measuring results, skills and knowledge regarding one's performance, they are often remiss in recognizing employees' abilities or aptitudes, especially those outside of the traditional job design. • Individual attributes are properties, qualities or characteristics of individuals that reflect one's unique personal makeup. Individual attributes are viewed as genetically developed or acquired from one's accumulated life experiences. Although personal characteristics are the most subjective of the components, a growing, significant body of research links specific personality traits to successful individual and organizational performance. • Individually recognizing and rewarding any of these sources of expertise provides a strong basis for individual performance engagement. However, it is their combination that results in the unleashing of resources that are all too frequently untapped. Linkage to various HR systems Competency-based HR management concentrates first on the person and then on his or her outputs or results. Competencies are enduring, while work activities and specific work tasks are transitory. Competency models can supplement traditional job descriptions and become the foundation for an entire HR system. When that happens, an organization is using competency-based HR management. Competency-based HR management views the needed outputs and the organization's work roles or requirements from a person-oriented rather than a job-oriented perspective. This approach makes competencies the foundation for the entire HR management function. Competencies drive recruitment, selection, placement, orientation, training, performance management, and workers' rewards.
  • 10. Q6.Elaborate on Rewards & Incentives Ans. Elaborate on Rewards & Incentives.  Incentives say “do well” and rewards say “well done.”  Incentives tempt employees to go the extra mile and push for crucial results. The rewards are what thanks employees for hard work, whether they’re linked to an incentive or not. They’re not mutually dependent even though they’re often used in tandem. Rewards: Rewards are the actual item that gets dished out to congratulate staff for exceptional success. They’re there to validate and celebrate performance. Rewards are most often dispensed for achievement, like taking valuable projects live or crossing a sales threshold. Rewards are personal trophies when they’re dispensed for achievement. Mementos of an employee’s own excellence. Reminders of the exceptional things your staff are capable of. Trophy value has two major effects. Vitally, staff who get these rewards are more likely to put the effort in to achieve again the future. Equally, all staff are shown that outstanding effort is appreciated and validated by managers. The reward is a little amplifier to the recognition. Incentives: An incentive is, essentially, something that’s designed to extract a desired behaviour by offering a reward ahead of time. For employees, that’s almost always some kind of professional performance. Rewards are promised in exchange for the exceptional performance once an objective is met. They’re most common in sales teams, but any teams with measurable performance could employ an incentive scheme. The rewards are what spices up the targets to give your employees a bit of added impetus to reach their goals. Types of incentives:
  • 11. Incentives can be classified into three categories: 1. Financial incentives: Some extra cash is offered for extra efficiency. For example, profit sharing plan and group incentive plans. 2. Non-financial incentives: When rewards or prizes are provided by the organization to motivate the employees it is known as non-financial incentives. 3. Monetary and non-monetary incentives: Many times, employees are rewarded with monetary and non-monetary incentives that include promotion, seniority, recognition for merits, or even designation as permanent employee.