Rewards & recognition

IMPLEMENTATION OF
REWARDS & RECOGNITION
SEHEME
SUBMITTED BY:
ANITA KUMARI
12MBA05568
MBA [2012-14 (4rd Sem.)]
Jamshedpur Women’s
College

II
JAMSHEDPUR WOMEN’S COLLEGE
A
DISSERTATION REPORT
ON
“IMPLEMENTATION OF
REWARD AND RECOGNITION SCHEME”
UNDER THE GUIDANCE OF: SUBMITTED BY:
MISS.CHYTALI GHOSH ANITA KUMARI
Mr. UPENDRA DEEP
(Faculty MBA)

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CERTIFICATE
This is to certify that Miss Anita Kumari, MBA (4th semester,) of Jamshedpur women‟s college,
Jamshedpur has completed her project under supervision. She has taken proper care and
show utmost sincerity in completion of the project.
I certify that the project completed is as per the guidelines.
Head
Department of MBA

IV
DECLARATION
I, ANITA KUMARI do hereby declare that the project report entitled "IMPLEMENTATION OF
REWARD AND RECOGNITION SCHEME”, is submitted by me to the Jamshedpur Women‟s
College, Jamshedpur in the partial fulfillment of the requirement for the degree of Master in
Business Administration is an original piece of work and has not been submitted earlier to this
college or to any other institute for fulfillment of the course of study.
DATE: SIGNATURE:
PLACE:

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ACKNOWLEDEGEMENT
Coming together is beginning, working together is success….
These words truly express all the joy and effectiveness of working together.
Completing this project was an arduous task and required all sort of field and table work.
This project could not have been a complete venture without the kind permission of
companies who allowed me to perform analysis and subsequent interpretations which form
the pillars of this project.
I would also like to thank the unsung heroes of this project. They are my mentor, parents,
friends, and siblings who took all pains and gave me all sorts of support for doing this
project.
Thanks to all and almighty.
Signature:

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ABSTRACT
“People may forget words; People may forget actions; but
people will always remember Respect, Recognition & Appreciation
given to them publically for their contributions....”
In a world characterized by increased global competition, and a rapidly
changing business environment, companies and organization are forced to
continuously reevaluate how they work. Since the first systematic studies of
manual labor began during the last century, the focus has changed from a strict
control of employees increased globalization, and the emergence of Human
Resource Management during the 80‟s. Research shows that employee
compensation can account for as much as 70-80 percent of companies cost, but
also show that the value of a company‟s human capital can significantly affect
the market value of the company. Studies also show that managers see non -
monetary reward and recognition systems as very effective in reaching eight
out of ten organizational objectives.
In order for an organization to meet its obligations to shareholders,
employees and society, its top management must develop a relationship
between the organization and employees that will fulfill the continually
changing needs of both parties. At a minimum the organization expects
employees to perform reliably the tasks assigned to them and at the standards
set for them, and to follow the rules that have been established to govern the
workplace. Management often expects more: that employees take initiative,
supervise themselves, continue to learn new skills, and be responsive to
business needs. At a minimum, employees expect their organization to provide
fair pay, safe working conditions, and fair treatment. Traditionally most reward
and recognition programs were vague and often given in response to a
manager‟s perception of when an employee performed exceptionally well. There
were usually no set standards by which exceptional performance could be
measured, and it could have meant anything from having a good attitude,
assisting another department, or being consistently punctual. In current
organizational settings this is no longer the case, as organizations understand
the great gains derived by linking rewards and recognition to their business
strategy.
Accordingly, this piece of work deals with all the relevant factors of
rewards and recognition, as a motivational tool to attract and keep employees.
This encompasses information regarding basic purpose of the program,
methods and techniques used to perform these, its implementation in various
organization and findings & drawbacks.

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TABLE OF CONTENTS
Pg. No.
Declaration.................................................................................................... III
Acknowledgement………………………………………………………………………………………… IV
Abstract………………………………………………………………………………………………………… V
SECTION-1
INTRODUCTION TO THE TOPIC ………………………………………………………. 1 - 2
 Introduction
 Objective
SECTION-2
LITERATURE …………………………………………………………………………………….. 3 - 17
 Employee Reward and Recognition Systems
 Reward v/s Recognition
 Important factors In a Recognition Program
 Procedures of Reward and Recognition
 Types of Reward & Recognition
 Methods of Rewards
 Guidelines for recognizing and rewarding employees
 Tools for recognizing employee performance in India
SECTION-3
GREAT PLACE TO WORK ………………………………………………………………….. 18 - 23
 Great Place to Work
 The GPTW framework
 India's best companies in rewards and recognition, 2013
SECTION- 4
COMPANY IMPLEMENTATION OF REWARDS & RECOGNITION
SCHEME ……………………………………………………………………………………. 24 - 36
 Rewards & recognition @ TML Driveline of Tata Motors
 Rewards & Recognition At A-F Blast Furnace Of Tata Steel

VIII
Pg. No.
SECTION- 5
RESEARCH METHODOLOGY …………………………………………………………. 37- 43
 Introduction
 Sources of data collection
 Findings and analysis through data and graph
SECTION-6
FINDINGS & OBSERVATIONS ……………………………………………………… 44 - 46
 Findings on rewards & recognition
 Observations
SECTION-7
 Conclusion …………………………………………………………………………………….. 48
 Limitations ……………………………………………………………………………......... 49
 Suggestions …………………………………………………………….…………………… 50
 Bibliography …………………………………………………………………………………. 51

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SECTION-1
INTRODUCTION TO
THE TOPIC

X
INTRODUCTION
The reason behind doing this project is to examine
that, what is the role of rewards & recognition scheme in
employee motivation, how different companies applies
this scheme for the growth of its employees to achieve
individual and collective goals and also to examine any
drawbacks and hurdles in its way.
The basic for the efficient functioning of a company is that its employees
work hard and stay motivated no matter how tough is the client to deal with.
This can only happen if the employees find a driving force towards working in a
better way from within a company. And a company can reciprocate to its
employees in no way better than rewards and recognition. It has been
statistically proved that frequent indulgence of rewards and recognition along
with constant appreciation and most importantly constructive criticism have
been the reason for the employees of any company to work better than they
used to. By implementing different rewards and recognition, firms show that
the employee is not unnoticed and that their work is dearly valued.
Organizational success is driven by satisfied and motivated employees.
Satisfaction and motivation can be enhanced through rewards and recognition.
Recognizes and rewards are achievements that have a notable impact on a
program, to project an individual activity that contributes to the vision and to
the pursuit of excellence.
OBJECTIVES
 To analyse Reward and recognition programs, its goals and objectives.
 Approaches to successful reward and recognition program design.
 Techniques to measuring employee satisfaction with reward and
recognition programs.
 Approaches to determining program success and performance.
 Technologies that enhance the administration and communication of
reward and recognition programs.
 To know the employee‟s personal intention regarding rewards and
recognition. To know the criteria to qualify the reward.

XI
SECTION-2
LITERATURE

XII
REWARDS AND RECOGNITION
“Rewards and recognitions are fine; but they should be
focused on showing people that we truly appreciate their
efforts.”
In a competitive market, more business owners are looking at
development in quality while reducing costs. This system deals with the
assessment of job values, the plan and management of pay arran gement,
performance management; pay for performance, competence or skill, the
provision of employee benefits and pensions. Importantly, reward and
recognition system is also concerned with the development of appropriate
managerial cultures, foundation core values and increasing the motivati on and
commitment of employees. Reward system processes cover both financial and
non-financial rewards.
Employee Reward and Recognition Systems
In a competitive business climate, more business owners are looking at
improvements in quality while reducing costs. Meanwhile, a strong economy has
resulted in a tight job market. So while l businesses need to get more from
their employees, their employees are looking for more out of them. Employee
reward and recognition programs are one method of motivating employees to
change work habits and key behaviors to benefit a business.

XIII
Reward vs. Recognition
Although these terms are often used interchangeably, reward and
recognition systems should be considered separately.
Employee reward systems refer to programs set up by a company to reward
performance and motivate employees on individual and/or group stage. They
are usually considered separate from salary but may be monetary in nature or
otherwise have a cost to the business. While previously considered the area of
big companies, small businesses have also begun employing them as a tool to
lure top employees in a competitive job market as well as to increase employee
performance.
Employee recognition programs are often combined with reward programs
they retain a different idea altogether. They are planned to provide a
psychological rewards. Though many elements of scheming and maintainin g
reward and recognition systems are the similar, it is helpful to keep this
disparity in mind, particularly for business owners interested in motivating
staffs while observance costs low.
Rewards and recognition are powerful tools for employee motivation and
performance improvement.
A reward is something given to a person or a group of people to recognize their
excellence in a certain field; a certificate of excellence. Awards are often
signified by trophies, titles, certificates, commemorative plaques, medals,
badges, pins, or ribbons. An award may carry a monetary prize given to the
recipient.
Recognition is public acknowledgement of person's status or merits
(achievements, virtues, service, etc.).When some person is recognized, he or
she is accorded some special status, such as a name, title, or classification.
Important Factors in a Recognition Program
1. The recognition program does not exclude any employee.
2. The employees know exactly what should be accomplished in order to
earn recognition and rewards.
3. The manager‟s success is tied to employee‟s success.

XIV
Objectives
Any organizational reward system has objectives:
1. To motivate employees to perform to the fullest extent of their
capabilities.
2. To encourage employees to follow workplace rules and undertake special
behaviors beneficial to the organizations.
3. To instantly and innovatively recognise and reward employees for
exemplary individual and team behaviour.
Program Purposes
1. Recognize individuals and teams in a timely and effective way.
2. Provide a continuum of opportunities to acknowledge and recognize
members of the organization.
3. Recognize that each individual can make a difference.
4. Be a fair and flexible practice that is woven into the fabric of the org
culture.
Impact of Recognition Program
TO SENIOR
MANAGEMENT
TO EMPLOYEES
TO MANAGERS OF
PROGRAM
 Increase
productivity
 Improve attitudes
 Build loyalty &
commitment
 Generates positive
feedback
 Empower
workforce
 Assures efficiency
 Satisfies
recognition needs
 Creates positive
recognition
experience
 Provides a wide
selection of
attractive,
personalised
awards
 Builds
belongingness and
loyalty
 Efficient
administration
 Employee
excitement and
relations
 Involves all
employees
 Develops a
partnership with
the workforce

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PROCEDURES OF REWARD AND RECOGNITION
This section provides step-by-step, a general procedure to assist
managers in the development and assessment of recognition programs that are
beneficial and meaningful to your employees.
When managers and supervisors think about appreciation, they may
repeatedly suppose that one plan fits all. Although each organization has
tactical goals to achieve, each work component within the organization has
distinct groups of employees who generally require different motivational plan.
First, you require deciding which part of your work unit or agency that needs to
be motivated by achieving goals within the work environment.
Step 1.
•TARGET YOUR AUDIENCE
• Target Your Audience
• Decide an appropriate name for the program
• Build a Budget
• Develop Criteria
• Determination of appropriate reward
• Communication of Program to employee
• Present the Awards
• Evaluate the Program

XVI
Choose a declaration regarding the purpose of the program that can b e
clearly understood by employees. Decide an appropriate name for the program;
it should be compatible with the work unit and/or agency culture.
Budget includes, the costs of the promotional resources, the potential
number of recipients, the costs of the awards, the presentation type
(formal/informal; location), the number of citizens expected to attend the
reward presentation, the expenses of foodstuff, facilities, streamer, equipment,
etc.
These are the standard, frequently written, that participants need to meet
to succeed in the program. Be precise about the timeframe for which the target
must be completed. Create a measurement system that is understood by
employees, viewed as fair, and quantifiable. Consider how often progress is
reported (daily, weekly, monthly, quarterly). Send reports on a regular basis to
keep interest levels high.
Choosing awards is one of the most important steps in the success of
plan. If the reward selected does not motivate or inspire employees to achieve
the affirmed goal, the agenda may have less contribution and not achieve the
level of success expected. By intriguing into deliberation input from the
supervisors, employees, and/or the besieged spectators, you should be able to
decide the rewards that do or do not have connotation. Diversity is significant
because beneficiary have varying tastes and interests. There are a broad
Step 2.
•DECIDE AN APPROPRIATE NAME FOR THE PROGRAM
Step 3.
•BUILD A BUDGET
Step 4.
•DEVELOP CRITERIA
Step 5.
•DETERMINATION OF APPROPRIATE REWARD

XVII
variety of awards that include financial awards, non-financial awards, and
recognition leave.
Program communication is necessary from the start up and should be
continuing. By connecting employees and supervisors in the growth of the
program, firm can be on the right way. Mystery is a huge way to attract the
interest of employees. Throughout the plan, offer status updates via mail, E -
mail or Intranet to the employees.
It should be make sure that presentation matches the significance of the
appreciation. One may prefer to use formal or informal means of appreciation.
However, as a manager, a person needs to believe the additional financial
impact of a formal presentation. Presentation should worthy of the reason that
it is for recognizing the employee.
It‟s important to measure the success of recognition program by
considering both tangible and insubstantial results. Ask for comment from
upper management, and supervisors and employees (participants and non -
participants). Share out an employee appraisal survey prior to and during the
program initiative also may be valuable. Also, appraisal income rates and
attendance/delayed records should provide some indication of success of your
agenda as well. Consider demeanor a survey of your customers that may
indicate the success of your agenda. Official surveys or casual customer
criticism can provide the basis for your evaluation.
Step 6.
•COMMUNICATION OF PROGRAM TO EMPLOYEE
Step 7.
•PRESENT THE AWARDS
Step 8.
•EVALUATE THE PROGRAM

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TYPES OF REWARD & RECOGNITION
Types of Rewards
Membership and seniority based rewards
Job status based rewards
Competency based rewards
Performance based rewards
Organisational rewards
Stock option
Profit sharing
Team rewards
Gain sharing
Special bonuses
Individual rewards
Commission
Merit pay
bonuses
Types of Recognition
Recognition events such as banquets or breakfasts,
Employee of the month or year recognition,
An annual report or yearbook which features the accomplishments of
employees, and
Department or company recognition boards.
Informal or spontaneous recognition
additional support or empowering the employee
Symbolic recognition
Latter of expressions (thanks...)

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METHODS OF REWARDS& RECOGNITION
Following are the common methods of rewards and recognition that can
be found in modern business organizations. Although not all these reward
methods are used by the same company, the companies can adopt the best
reward methods that suit the company culture and other company goals.
As an example, some companies do like to give all the benefits to the
employees as financials, while other companies like giving the employees the
other benefits such as insurance, better working environment, etc.
1. Basic Pay
Pay is an essential factor, which is closely related to job satisfaction and
motivation. Although pay may not be a reward as this is a static amount, which
an employee will be paid every month, it will be considered as a reward if
similar work is paid less.
2. Additional Hour's Rewards
This is similar to that of overtime. However, it is paid to employees if they
put in an extra hour of work for working at unsocial hours or for working long
hours on top of overtime hours.
3. Commission
Many organizations pay commission to sales staff based on the sales that
they have generated. The commission is based on the number of successful
sales and the total business revenue that they have made. This is a popular
method of incentive.
4. Bonuses
Bonuses will be paid to employees, who meet their targets and objectives.
This is aimed at employees to improve their performance and to work harder.

XX
5. Performance Related Pay
This is typically paid to employees, who have met or exceeded their targets
and objectives. This method of reward can be measured at either team or
department level.
6. Profits Related Pay
Profits related pay is associated with if an organization is incurring a profit
situation. If the organization is getting more than the expected profits, then
employees receive an additional amount of money that has been defined as a
variable component of the salary.
7. Payment by Results
This is very similar to that of profit related pay. This reward is based on the
number of sales and total revenue generated by the organization.
8. Piece Rate Reward
Piece rate reward is directly related to output. The employees get paid on
the number of 'pieces' that they have produced. These pieces will be closely
inspected to make sure that quality standards are being met.
9. Recognition
Employees will not always be motivated by monetary value alone. They do
require recognition to be motivated and to perform well in their work.
10. Job Enrichment
This is a common type of recognition that is aimed at employees to get
motivated. Job enrichment allows more challenging tasks to be included in the
day-to-day tasks performed by the employee.
Working the same way every day may prove to be monotonous to the
employees. Therefore, there will be a lack of interest and the performance
drops.

XXI
11. Job Rotation
Unlike job enrichment, job rotation refers to shifting employees between
different functions. This will give them more experience and a sense of
achievement.
12. Teamwork
Teamwork is also considered as recognition. Creating teamwork between
team members will improve performance at work. Social relationships at work
are essential for any organization.
Healthy social relationships are considered as recognition to the employees.
This improves their morale and performance.
13. Empowerment
Empowerment refers to when employees are given authority to make certain
decisions. This decision making authority is restricted only to the day -to-day
tasks.
Though, by giving employees authority and power can lead to wrong decisions
to be made which will cost the company. So, Empowerment will not relate to
day-to-day functioning authority.
14. Training
Many organizations place a greater emphasis on training. This is considered
as recognition for employees. Training could vary from on the job training to
personal development training.
Training workshops such as train the trainer or how to become a manager will
give employees a chance to switch job roles and this will increase their
motivation levels.
15. Awards
This again is an important type of recognition that is given to employees,
who perform better. Organizations have introduced award systems s uch as best
performer of the month, etc., and all these will lead employees to perform
better.

XXII
GUIDELINES FOR RECOGNIZING AND REWARDING
EMPLOYEES
A good recognition and reward system provides employees with three things:
A fair return for their efforts
Motivation to maintain and improve their performance
A clarification of what behaviors and outcomes the organization values
Here are 10 guidelines for recognizing and rewarding employees that companies
can use to help develop a successful program:
1. Involve employees in designing recognition program
There is no need of a lot of money to implement a meaningful recognition
program. Employees will take pride in a token award when it acknowledges
they did a good job that impressed their boss and peers. One way to give your
recognition program that kind of credibility is to involve employees in creating
and administering it. If they design it, they will know exactly what they have to
do to earn rewards. They will know what their peers have to do also, so they
will respect other winners. They can also ensure that the program provides
everyone in the department with an opportunity to earn a reward.
2. Specify reward criteria
Too often, awards for things like "innovation," "showing initiative," and
"quality improvement" don't define what employees need to do to win. Without
that information, some employees will be stymied before they begin. When a
winner is announced, employees may attribute a co-worker's success to
favoritism or luck. Or, if offer an award on an ongoing basis, such as
"employee of the month," they may begin to think everyone's turn comes up
eventually.
3. Reward everyone who meets the criteria
Firm could announce a contest, urge everyone to participate, provide
plenty of reminders during the contest period, and announce the winner with a
flourish. For a longer-term impact, determine specific criteria, individual goals,
and reward everyone who meets them. Publicize each accomplishment and

XXIII
acknowledge each achiever. As long as the criteria are meaningful - the more
winners the better.
4. Recognize behaviors as well as outcomes
In most organizations, results earn rewards. That's appropriate, but it
lessens the opportunity to use recognition as a way to encourage poor
performers to improve. Since they don't produce many worthwhile results, they
seldom get rewarded. By recognizing small behavior shifts, arriving on tim e,
correcting mistakes, helping another person, firm can reinforce incremental
improvements. This doesn't mean firm should arrange a parade in someone's
honor just because the person finally did what was expected. A sincere thank
you or some specific positive feedback is an appropriate response.
5. Individualize rewards
Give people what they want. Before giving a workaholic a week off, make
sure it won't feel like exile to that person. On the other hand, before reward
someone with an exciting new project, find out if the recipient will be thrilled
or feel burdened.
6. Say "thank you" frequently
"Thank you" is always timely. It is as useful to acknowledge small
successes, as it is to recognize major achievements. It validates the importance
of work people do. And it starts a chain reaction: Pretty soon more people start
saying it to more people, boosting morale and improving relationsh ips as well
as motivating people to work well.
7. Nurture self-esteem
When organisations give people positive, specific, and realistic feedback
about their potential, their efforts, and their accomplishments, their self -
esteem goes up. They develop into employees with confidence to set and meet
challenging goals, overcome setbacks, and self-manage their work.

XXIV
8. Foster intrinsic rewards
Intrinsic rewards are the good feelings people get from doing their work;
enjoyment of the task, excitement about the opportunities, and pride in doing a
good job. Firms can't hand someone an intrinsic reward, but can create an
environment that encourages these feelings. Make sure people know their work
is worthwhile, treat problems as opportunities for innovation, encourag e people
to try new ways of doing things, and let them know when they have done a
good job.
9. Reward the whole team
For team accomplishments, it's important to reward the whole team, or it
can foster competition, not cooperation, among team members. Still, there are
always some team members who give more effort, and sometimes there are
members who coast along on the efforts of others. When the coasters get the
same reward as the doers, resentment occurs. Some companies are meeting
this challenge with a double-tiered system of team and individual rewards.
What ties it together is that for individual rewards, the assessors are fellow
team members.
10. Be careful
An organization publishes its values, and then rewards people for
behaving quite differently. Since one of the things rewards do is clarify for
employees what the organization really wants. If firm are looking for teamwork,
they must be sure that they aren't rewarding competition.

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TOOLS FOR RECOGNIZING EMPLOYEE PERFORMANCE
IN INDIA
Methods Percentage
Certificates 68%
Cash awards 56%
Mailers to all employee 61%
Plaques 44%
Mention on newsletter/Internet 49%
Gifts 39%
Gift certificates 37%
Team outing to celebrate achievements 46%
Leadership roles 34%
0%
10%
20%
30%
40%
50%
60%
70%
68%
56%
61%
44%
49%
39% 37%
46%
34%

XXVI
SECTION-3
GREAT PLACE TO
WORK

XXVII
GREAT PLACE TO WORK®
Great Place to Work® Institute is known
globally as one of the pioneers in the practice of
studying and recognizing the best workplaces.
Over 2.5 million employees from over 7000
organizations in over 40 countries participate in
the Best Workplace study each year- making this
the largest global study of its kind in the world.
The mission of the Institute is to build a better
society by helping companies to transform their
workplaces. The Best Workplaces Study in India is inspired by the vision of
„Making India a Great Place to Work‟. The institute has been conducting
workplace studies and has been recognizing the best companies in India for the
past 9 years now. Along with studies the Institute provides advisory and
consulting support for companies that wish to enhance their workplace
experience. “India‟s Best Companies to Work For”, conducted by Great Place to
Work® Institute India and The Economic Times, is the largest study of its kind
in India.
The GPTW Framework
Globally, Great Place to Work® Institute has developed research in the
field of employee trust & engagement over the past 20 years. This experience
and learning has led to the
definition of a great workplace.
Research has shown that the
key to creating great
workplaces was not present in
any prescribed or predetermined
set of employee benefits,
programs and practices, but in
the building of high quality
relationships. Great Place to
Work® Institute defines a Great
Workplace as one where
employees trust the people they
work for, take pride in what
they do and enjoy the people
they work with. Thus, the
fundamentals of building a great
workplace rely on three, core
elements Trust, Pride and Camaraderie.

XXVIII
INDIA'S BEST COMPANIES IN REWARDS AND
RECOGNITION, 2013
(In rank order)
The Economic Times, along with Great Place To Work® Institute, celebrated
the achievements of India‟s top 15 companies in the rewards and recognition
space, at an exclusive awards ceremony held on 26thApril, 2013 in Mumbai. Mr.
Harsh Mariwala, MD & Chairman, Marico Industries Limited, felicitated the
winners of India‟s Best Companies for Rewards and Recognition 2013.
Google India Pvt. Ltd
Intel Technology India Private Limited.
American Express India
NIIT Ltd.
Forbes Marshall Pvt. Ltd.
NTPC Ltd.
Ujjivan Financial Services Private Limited.
Marriott Hotels India Pvt. Ltd
Blue Dart Express Ltd
Godrej Consumer Products Ltd
InterGlobe Enterprises Ltd.
The Oberoi Group
Taj Hotels Resorts & Palaces
Philips Electronics India Limited
United Colors of Benetton India
„TRUE BLUE Partner Award‟ for “Being a solid partner to the business.”
“360 Degree Award” is something given out to individuals for effective
stakeholder management.
Rolling Bat/Rotating Flag to commend employees who have added value
to the business and this bat/flag is rotated on a quarterly basis.
Environmental Excellence Awards
These are awards which are given annually for outstanding employee
achievements in environmental, energy conservation and pollution prevention
programs and performance. Intel won the #1 place in Green500 and the CEO
Justin Rattner came to India especially to reward the Intel Labs team which
contributed to this award.
INTEL TECHNOLOGY INDIA PRIVATE LIMITED

XXIX
Volunteering Road Shows
Winners of the Social Initiatives Drive get to showcase their work to other
employees through road shows and this helps them form larger teams of other
interested collaborators, often with complementary skill sets to work on their
projects.
Blue Box Values Award
This “Peer recognition” can be used by any employee to recognize their
colleague for extraordinary display of any of the eight Blue Box values.
Safety Awards
During the safety Week celebration i.e. from 4th March to 11th March every
year the organizations holds Poster and Slogan competitions, which are open to
members‟ and their children. Besides, there is also competition of innovations
and improvements done related to the safety in the organization. The Best
Slogan, Best Poster and best innovation are awarded on the last day of the
Celebration i.e. on 11th March.
Rewards for Internal Trainers
Many of the technical trainings are given to the members by the Inte rnal
Trainers. These trainers are doing something other than their role for the
betterment of the members and developing talent in the organization. Thus
every year these trainers are rewarded by gift coupons of varying amounts
depending on the number of trainings they have delivered. Rewarding these
trainers is a kind of motivation for them to continue the best that they are
giving to the company.
Manveeyata Puraskar
It is given to employees who have exhibited random acts of humanity and
kindness at their unit and surrounding areas. An Appreciation Letter and a gift
of up to Rs 1,000/- are given.
AMERICAN EXPRESS INDIA PRIVATE LIMITED
FORBES MARSHALL PVT.LTD.
NTPC INDIA

XXX
External Parity
Compensation surveys are conducted from time to time to benchmark
against the industry compensation trends. Ujjivan undertook a compensation
survey at the Industry level with MFIN (Micro Finance Institutions Network –
the Industry body similar to NASSCOM, CII), this year for compensation
benchmarking.
Special Thanks and Recognition System (STARS)
The Taj Group created a Special Thanks and Recognition System (STARS)
that links customer delight to employee rewards. Employees accumulate points
throughout the year in three domains: compliments from guests, compliments
from colleagues, and their own suggestions. Indeed, appreciation from one‟s
peers can be more powerful, and should also be considered in a broader
performance appraisal system. “Crucially, at the end of each day, a STARS
committee reviews all the nominations and suggestions.
Dronacharya Award for the Best Mentor
To recognize the mentor who has shown dedication & commitment to mentor
the early career potentials of PIC. The mentees and mentee‟s managers are
asked for feedback about the mentors. The weighted average of the feedback is
taken and the mentor whose rating is the highest is declared the winner. This
award is also announced during the Grand – town hall which happens in the
end of the year. It consists of a Certificate, memento & Cash award.
Communication and branding
SMILE UNLIMITED - It signifies Benetton India‟s commitment to recognize,
acknowledge and appreciate Benettonians. Some current and past initiatives
under „Smile Unlimited‟ include wall of Fame, Pat on the Back, Core Value
PHILIPS ELECTRONICS INDIA LIMITED
UNITED COLORS OF BENETTON
UJJIVAN FINANCIAL SERVICES
TAJ HOTELS RESORTS & PALACES

XXXI
Champion Awards, and Spot Awards, Outstanding Awards, Biz Master, idea
Champions etc.
BENETTON UNLIMITED –This campaign was launched as a part of their
internal branding exercise and formulate defined platforms to various HR
initiatives. Hence all the Rewards & Recognition communication is driven
through the concept of SMILE UNLIMITED. Apart from recognizing the top
performers in public, there are communications send across the organiz ation
highlighting the winners and top performers who have been awarded.

XXXII
SECTION-4
COMPANY
IMPLEMENTATION
OF REWARDS & RECOGNITION SCHEME

XXXIII
At TML Driveline of Tata Motors

XXXIV
TML DRIVELINE
Organizational Description
TML Drivelines Ltd. is a wholly owned subsidiary
of Tata Motors engaged in the manufacture of gear
boxes and axles for heavy and medium commercial
vehicles. It has production facilities at Jamshedpur and
Lucknow. TML Forge division is also a recent
acquisition of TML Drivelines. TML Drivelines was
formed through the merger of HV Transmission (HVTL) and HV Axles (HVAL).
Rewards and Recognition Scheme
The company organizes rewards & recognition program, so that there is something for
the employees to look forward too. Also, if brought under regular circulation, it will create
integrity amongst the employees for the company and for each other. In better words,
promoting rewards and recognition programs within a company for the employees helps foster
a healthy workmanship and promotes a better work environment.
TYPES OF REWARDS & RECOGNITION
(For Non-management group)
Employee of the Month
Employees are nominated from their department on the basis of skills, 5s
knowledge, suggestions, CSR involvement, safety involvement and attendance.
Among them three employees are awarded every month with cash prize or,
equivalent coupons.
1st
Award – Rs. 1000 /-
2nd
Award – Rs. 750/-
3rd
Award – Rs. 500 /-

XXXV
Employee of the Year
Among all 12 employees of each month, three employees are awarded as
employee of the year. They get selected on the basis of interview by related
panel.
1st
Award – Rs. 10000 /-
2nd
Award – Rs. 7500/-
3rd
Award – Rs. 5000 /-
Multi Skill Benefit
In this scheme 1 extra increment in monitory is given to the employee, on
the basis of non-disciplinary action and non-suspension.
Pat on the Back
This is a certificate program given to the employee for any commendable
work, by the line managers.
Photo Recognition
In this recognition scheme employee‟s photo is pined on departmental
notice board, for a best suggestion.
Birthday Celebration
It‟s a kind of excitement program. On birthday of an employee, a Birthday
card is sent to him/her signed by the CEO.

XXXVI
At A-F Blast furnace of Tata steel

XXXVII
A-F BLAST FURNACES
Organizational Description
'A-F‟ BLAST FURNACE department is part of Coke, Sinter& Iron Division. It is
located within the works area of the Tata Iron & Steel Co. Ltd., Jamshedpur.
The A-F Blast Furnace came into operation in 1911.
Rewards and Recognition Scheme
Rewards and recognition are powerful tools for employee motivation and
performance improvement.
It has been proved that frequent indulgence of rewards and recognition
along with constant appreciation and most importantly constructive criticism
have been the reason for the employees of any company to work better than
they used to. By implementing different rewards and recognition, company
show that the employee is not unnoticed and that their work is dearly valued.
It is a general verity that people tend to progress and improvise when they
are motivated. And a healthy and the right amount of motivation can come only
if the person is rewarded with some kind amidst his or her fellow colleagues.
Moreover, when people are motivated they develop a greater potential towards
being successful which in collective terms is very good and beneficial for the
company‟s growth.

XXXVIII
THE REWARD PROCESS
Identify behavior
worth rewarding
Present Instant
SHABASHI
Nominate for
Shabashi Diwas
Review by
Recognition Team
Presentation on
SHABASHI DIWAS
(1st Wednesday of the
month)

XXXIX
REWARD PROCESS
The Chief/ Head/ Unit leader identifies the behavior worth rewarding.
The Chief/ Head/ Unit leader recognises the employee by presenting him the
"Instant SHABASHI" voucher on the shop floor/ work place itself.
The Chief/ Head/ Unit leader may nominate the employee/ team to the
Recognition Team for Shabashi Diwas reward in the prescribed format.
The Recognition Team comprising Chief/Head of the department, Manager
HR/IR and one line executive (by rotation) will review the nomination and
shortlist the employee/ team for the Shabashi Diwas reward.
Rewards, based on the decision of the Recognition Team, will be presented by
the Chief/Heads of the department on the Shabashi Diwas, the 1st Wednesday
of the month. The recognition function must be held at 3.00 PM on Shabashi
Diwas.
• Identify behavior worth
rewardingStep 1.
• Present instant SHABASHIStep 2.
• Nominate for Shabashi DiwasStep 3.
• Review by Recognition TeamStep 4.
• Presenting reward on
Shabashi DiwasStep 5.

XL
TYPES OF REWARD
1. Instant Shabashi
Gift voucher worth Rs. 200/-
Can be redeemed at shops/ outlets as listed on the voucher.
The department may procure a gift by redeeming the voucher and
present the gift instead to the employee
2. Shabashi Diwas reward
Specially designed Certificate of Recognition;
Shabashi Diwas voucher(s).
Maximum reward Rs 2500/-
Gift vouchers in denomination of Rs 250/-, so that one can take a
pick at one or more of the following:
o Household articles/ gifts
o Dinner/lunch in restaurants
o Personal items
3. A Bonanza
A consistent performer may win “SPECIAL SHABASHI” A Holiday Package for
3 days/ 2 nights at selected locations.

XLI
S H A B A S H
Nomination Form for Shabashi Diwas Reward
To
Chief/ Head of Department
& Head of the Recognition team
Mr. (Name), (P.No.), (Designation) of (name of the section)
has shown exemplary behaviour in the area
_____________________
___________________________________________________
. The brief description of his work/ contribution is as follows:
___________________________________________________
___________________________________________________
___________________________________________________
_______________________________________________
He is nominated for the The Shabashi Diwas reward.
Name & Signature
Unit Leader/ Section Head

XLII
THE SPECIAL SHABASHI PROCESS
Consistent
Performance
Nomination by
Department
Review by
Special Shabashi Team
Presentation of Special
Shabashi

XLIII
The Special Shabashi Process
Each department may nominate one such consistent performer per
year.
Nomination for Special Shabashi, along with one-page write-up
giving the details of the contribution of the employee, may be sent to
the office of VP (HRM).
A team comprising the Dy MDs, VP (HRM) and PEO will scrutinise and
shortlist individuals for Special Shabashi.
Budget
Each department will be allocated a budget based on the employee
strength.
About, 25% of the allocated budget may be utilised for Instant
Shabashi and the balance for the Shabashi Diwas reward.
Procurement of Gift Vouchers & Certificate of Recognition
Department should procure Instant Shabashi vouchers and Shabashi
Diwas vouchers corresponding to the budget allocation made and
Certificate of Recognition from Steel Workers Welfare society (SWWS)
by raising delivery order.
SWWS will supply the two types of vouchers with serial no. printed on
them and the Certificate of Recognition to the department.
Department will verify the invoices and pass the bill for payment
against the allocated budget through SAP giving the cost element and
departmental cost centre.
Facilitation by HR/IR Executives
Awareness
Presentation to all executives, JDC, any other forum
Publicity
By Corporate Communication – hoardings, intranet, house
journals, MD on-line
By department -Poster- Notice Board, Canteen, Shop-floor

XLIV
Facilitation
Adherence to the guidelines (must not become a ritual, no quota
system)
Transparency/ fairness in administering the program.
Procurement of Gift Vouchers & Certificate from SWWS
Organising Shabashi Diwas function – presence of other
employees, officers JDC members etc.
Tracking budget.

XLV
SECTION-5
RESEARCH
METHODOLOGY

XLVI
RESEARCH METHODOLOGY
Introduction
Research means scientific and systematic search for pertinent
information on a specific topic. According to CLIFFORD WOODY research
comprises defining and redefining problem, formulation hypothesis or suggest
solution, collecting, organizing and evaluation data-making deductions and
reaching conclusion; and at last carefully testing the conclusions to determine
whether they fit the formulation of hypothesis.
Objectives of Research
1. To portray accurately the characteristics of a particular individual,
situation or group.
2. To test a hypothesis of a casual relationship between variables.
3. Research Methodology is a way to systematically solve the research
problem. It may be understood as a science of studying how research is
done scientifically. In it we study the various steps that are generally
adopted by researcher in studying his is research problem along with the
logic behind them. It is necessary for the researcher to know not only the
research methods.
Research Design
A research design serves as a bridge between what has been established
(research objectives) and what is to be done while conducting the study to
realize those objectives. It anticipates what a company wants in terms of
results and the analytical work on the gathered data that will convert into
useful findings.
This research is a descriptive research and, by and large, a field and desk
research which involved the following procedures:
1. Collection of data regarding rewards & recognition of workers.
2. Analysis of the data collected and illustrating it through graph s and
thereby, interpreting the results.
3. Finally, forwarding certain recommendations and conclusions to the
company.

XLVII
Sources of Data Collection
The data collected for this research has provided the base for its analysis
and interpretation. The data collected was used to draft charts, illustrate
through graphs and thus provide for its adequate interpretation. In this
research, Primary data as well as Secondary data has been used.
Methods of Data Collection
Primary data was collected through personal survey method, and
secondary was collected through reports, magazines, Internet etc.
Methodological Assumptions
The data provided are assumed to be true and unbiased.
Plan of Analysis
For the purpose of analysis the data collection from question has
been classified and tabulated.
Percentages have been taken to get a better picture of the
analysis.
The set of the analysis have been formed on the basis to draw
Conclusion and suggestions have been made on the inference
and analysis drawn.
Sample Design
Sample Size
The sample size of this survey is the working employees of A -F Blast
furnaces.
Primary Sources of Data
 Analysis of all reward certification
 Physical verification of related data.
Secondary Sources of Data
 Company profiles.
 Previous year report.
 Literatures.
 Journals.
 Internet.
 Intranet.

XLVIII
FINDINGS AND ANALYSIS THROUGH DATA AND GRAPH
 Analysis of data for employee reward at A-F Blast furnaces
Year No. of Employee get reward
2010 24
2011 13
2012 147
2013 72
SECTION no. of employee get reward
Cast House 18
HML 10
C BLST FURNCE 2
CANTEEN 3
ELECTRONICS(MEDE) 1
FIRE BRIGADE 3
HR/IR TRAFFIC 1
LABOUR GANG 1
MECH 6
OFFICE 1
OPERATION 3
LOCO CRANE 1
SGP 1
SPARES MNFRNG 1
TLRH 2
TRAFFIC 18
TOTAL 72
18
10
2 3
1
3
1 1
6
1
3
1 1 1 2
18
0
5
10
15
20
CastHouse
HML
CBLST…
CANTEEN
ELECTRONIC…
FIREBRIGADE
HR/IR…
LABOUR…
MECH
OFFICE
OPERATION
LOCOCRANE
SGP
SPARES…
TLRH
TRAFFIC
No. of employee get reward
(in year 2013)
no. of employee get
reward

XLIX
FINDINGS AND ANALYSIS THROUGH DATA AND GRAPH
 Beneficiary of scheme
managerial non-managerial
Beneficiary 0 30
 Level of Satisfaction with reward & recognition scheme
very satisfied neither satisfied nor
dissatisfied
not satisfied
Satisfaction with
reward & recognition
27 0 3
90%
0%
10%
Satisfaction with reward & recognition
very satisfied
neither satisfied nor
dissatisfied
not satisfied
0%
100%
Beneficiary of scheme
managerial
non-managerial

L
 Important issues
How these are important extremely
important
average
important
not at all
important
a. Receiving formal recognition for your effort? 15 12 3
b. Being recognised by management for your effort? 20 10 0
c. Being recognised by peers and co-workers for your
effort?
20 10 0
d. Feeling that your work is valued and appreciated? 30 0 0
e. Bonus and other financial incentives? 17 13 0
f. Possibility to achieve promotion? 12 18 0
g. Challenging work task? 15 10 5
0
5
10
15
20
25
30
Important issues
extremely important
average important
not at all important
12%
15%
16%
23%
13%
9%
12%
Important issues
receiving formal recognition
for your effort ?
being recognised by
management for your effort
?
being recognised by peers
and co-workers for your
effort ?
feeling that your work is
valued and appreciated?
Bonus and other financial
incentives?

LI
 Rate of criteria as qualification for an award
Rate of criteria as
qualification for an
award
Extremely
important
Average
important
Not at all
important
a. Outstanding performance 5 20 5
b. Focus on innovation 3 15 12
c. Safety involvement 30 0 0
d. CSR involvement 22 8 0
e. Skills 18 12 0
f. Commendable work 15 10 5
6%
3%
32%
24%
19%
16%
Rate of criteria as qualification for an
award
outstanding performance
focous on innovation
saftey involvement
csr involvement
skills
commendable work
0
5
10
15
20
25
30
Rate of criteria as qualification for an
award
extremely important
average important
not at all important

LII
SECTION-6
FINDINGS &
OBSERVATIONS

LIII
FINDINGS ONREWARDS & RECOGNITION
Findings on Rewards
The following factors have been measured to infer about an organization‟s
internal equity and transparency of its rewards programs:
The parameters of rewards especially for incentives/performance bonus
and the amount of increments Wealth creation/wealth sharing
opportunities such as Stock Options/Restricted Stock Units/Stock
Purchase Plans, etc., made available to the largest number and
percentage of employees regardless of their level, function and tenure.
Grievance redressal /appeals that specifically deals with matters relating
to compensation, grade & salary fitment, performance rating and
increment/incentive/performance bonus and promotions.
Non-discrimination in compensation, benefits and rewards on the basis of
gender, caste, race, language and religion.
Incentives and performance bonus availability across all levels, roles and
functions.
Findings on Recognition
Recognition practices are more effective when they are frequent, targeted at
all employees and demonstrate a true sense of gratitude. This study measured
effectiveness of recognition practices defined as follows:
Variety of programmes to recognize and appreciate different category of
employees for different types of tasks, behaviours, efforts, achievements
for which they are recognized.
Frequency of programs represented by how often employees are
recognized.
Recognition provided to employees across levels, roles, functions and
locations. This includes employees in revenue earning & customer/client
impacting as well as enabling support functions.
Employees are recognized and appreciated for their loyalty.
Inclusiveness of recognition defined by the fact that it flows from and in
all directions – not only from seniors to juniors, but between peers, from
juniors to seniors, across functions, business units & locations.

LIV
Recognition and celebrations are done for not only work related efforts
and achievements/results, but for achievements which are beyond work
as well.
Achievements of family members are also recognized, appreciated and
rewarded publicly within the organization.
Family members are informed and thanked and/or invited to participate in
events and functions where employees are being recognized and
felicitated.
Personalization of gifts and forms of recognition is given to what the
recipient of recognition really likes.
Extent of feedback and inputs sought from supervisors, managers and
employees on what should be recognized and appreciated.
Observations
The strength of a rewards system depends on the relevance/appropriateness
of the metrics (how well you have defined them) and how accurately and
transparently they are measured and shared. Weight of the reward is equally
important. If it is meager or unattractive employees tend to lose interest; on
the other hand if they are unrelated to performance, employees do not believe
in the fairness of the evaluation. The more attractive a reward, the more robust
the metrics should be to be able to drive the right behaviours and follow more
robust and transparent evaluation; otherwise it can have more negative
outcomes than positive.
All the standards and instructions for their rewards program are lucidly
documented with clearly defined objectives and evaluation parameters
and published through intranet, dashboard newsletters, etc.
Goals set, even if stretch goals, are realistic to motivate people to
perform.
Creating a Balancing Act - Rewards are neither too few that employees
find it difficult to get them, and hence, are not motivated aspire for it,
nor too many that they become commonplace and stop to excite people
anymore.
Deploy risk and reward compensation systems to drive employee
development, team sharing, and teamwork excellence.
Develop standardized quality tools to measure cross-functional team and
manager performance.

LV
SECTION-7
CONCLUSION

LVI
CONCLUSION
Rewards and recognitions are equally important when trying to promote
performance and morale amongst employees. The above methods can be used
to motivate employees.
Since all the methods may not be applicable to the same organization, the
organizations should make sure that they choose the best rewards that suit the
organization.
The most effective ways to motivate employees to achieve the desired goals of
the organization include creating an environment with strong, respectful and
supportive relationships between the organization‟s managers/supervisors and
employees and a focus on genuine expressions of appreciation for specific
employee achievements, service milestones and a day-to-day acknowledgement
of performance excellence. In a nutshell, a positive employee re ward and
recognition strategy can be summed up by the following: nothing is better than
a sincere “thank you for a job well done.”

LVII
LIMITATIONS
 Time was the most important constraint in carrying out this project.
 During the research methodology process/time, it was difficult to collect
information because of the busy schedule for their work.
 Due to heavy workforce, it was really difficult for me to collect
information from each and every worker.
 There was scope of biased response. Employees could be biased
regarding opinions towards certain factors while answering the
questionnaire.
 The data used for the study relies on what organizations have shared. It
is assumed that companies have provided accurate data for the purpose
of the study.
 Data & inferences are based only on the information collected from the
companies that have participated.

LVIII
SUGGESTIONS
For effective implementation of rewards system organisations should:
 Determine who will be eligible for each type of reward
 Ensure that the new system has the support and ownership at all relevant
levels, particularly among people managers who have to spearhead the
implementation
 Establish the reliability and the validity of the performance data that is
gathered to determine who gets rewarded and how much.
 All the standards and instructions for their rewards program are lucidly
documented with clearly defined objectives and evaluation parameters
and published through intranet, dashboard newsletters, etc.
 Develop standardized quality tools to measure cross-functional team and
manager performance.
 Organisations must understand that recognition should not be limited to
achievements only. Thus, they have devised mechanisms and provided
employees with a platform to praise efforts.
 In addition to rewarding the permanent employees, organisations also
reward its contractors and vendors.
 Organisations must ensure that the rewards are individualized. They
understand that these rewards will be valued by the employees most
when they cater to their personal needs/styles.
 Organisations also involve family members and significant others at the
time of recognition to add personal touch and provide the family or
partners a sense of belongingness.

LIX
BIBLIOGRAPHY
http://www.luc.edu/hr/pdfs/eregSHRM.pdf
http://finmin.nic.in/index.asp
http://www.greatplacetowork.in/
http://www.24framesdigital.com/bestcompaniesinrnr/
http://www.greatplacetowork.in/publications/706-indias-best-companies-for-rewards-and-
recognition-2013
http://www.inc.com/encyclopedia/employee-reward-and-recognition-systems.html
http://www.haygroup.com/downloads/ww/misc/cfr_global_report.pdf
K.Aswathappa “OrganisationalBehaviour” pg.no, 291-294.
Azhar kazmi “ Strategic management and business policy” pg.no. 375-377.

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