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Dear Leo

Do you feel Best Employee Award certificate can be given on a monthly, quarterly, yearly basis to deserving candidates based on their performance by cos ?.

This effectively will motivate the employees as they have gained appreciation from the corporate for their work ?.

Awaiting your reply,

Thanks & Regards,
Prashant S Akerkar



The  current  trend  is  one  of  integrated  reward   approach.
Reward system usually mean the financial reward on organization gives its employees in return for their labour. While the term reward system, not only includes material rewards, but also non-material rewards. The components of a reward system consist of financial rewards (basic and performance pay) and employee benefits, which together comprise total remuneration. They also include non-financial rewards (recognition, promotion, praise, achievement responsibility and personal growth) and in many case a system of performance management. Pay arrangements are central to the cultural initiative as they are the most tangible expression of the working relationship between employer and employee.
The  integrated reward  system  includes:
Job evaluation and profiling
•   Defining key performance indicators
•   Analysis and modification of pay levels and structures to reflect both internal and market relativities
•   Designing of performance evaluation processes
•   Structuring of individual, team and corporate performance bonuses
Social climate surveys with focus on remuneration
•   Designing flexible benefits plans
•   Implementation of new reward components in compensation package
•   Implementation and assistance in change communications
•   Training for internal specialists in reward structure planning and maintenance

Performance Based Reward is based on the definition of key performance indicators identified as part of job evaluation, and linking these indicators with reward components. A combination of performance measuring system and additional motivational components delivers an integrated performance-based reward system.
Flexible Benefit Schemes are a modern approach to the management of budgets for staff remuneration. Employee benefits constitute a considerable portion of staff costs, but they are often expended without the desired effect since employees do not perceive the full value of benefits. This system   increases  the   effectiveness and enable better control.
Why reward system is required?
These components will be designed, developed and maintained on the basis of reward strategies and policies which will be created within the context of the organizations between strategies, culture and environment: they will be expected to fulfill the following broad aims;

1. Improve Organizational Effectiveness: Support the attainment of the organization's mission, strategies, and help to achieve sustainable, competitive advantage.

2. Support and change culture: Under pin and as necessary help to change the 'organizational culture' as expressed through its values for performance innovation, risks taking, quality, flexibility and team working.

3. Achieve Integration: Be an integrated part of the management process of the organization. This involves playing a key role in a mutually reinforcing and coherent range of personal policies and process.

4. Supportive Managers: Support individual managers in the achievement of their goals.

5. Motivate Employees : Motivate employees to achieve high levels of quality performance.

6. Compete in the Labour Market: Attract and retain high quality people.

7. Increased Commitment: Enhance the commitment of employees to the organization that will a) want to remain members of it, b) develop a strong belief in and acceptance of the values and goals of the organization and c) be ready and willing to exert considerable effort on its behalf.

8. Fairness and Equity: Reward people fairly and consistently according to their contribution and values to the organization.

9. Improved Skills : Upgrade competence and encourage personal development.

10. Improved Quality: Help to achieve continuous improvement in levels of quality and customer service.

11. Develop team working : Improve co-operation and effective team working at all level.

12. Value for money: Pride value for the money for the organization.

13. Manageable: Be easily manageable so that undue administrative burdens are not imposed on managers and members of the personal department.

14. Controllable: Be easily controllable so that the policies can be implemented consistently and costs can be contained within the budget.


The  Reward systems focus on positive reinforcement. Positive reinforcement is the most effective tool for encouraging desired behavior because it stimulates people to take actions because they want to because they get something of value (internally or externally) for doing it. An effectively designed and managed reward program can drive an organization's change process by positively reinforcing desired behaviors.
The SMART criteria.
These criteria  used when designing and evaluating programs. Programs should be:
•   Specific. A line of sight should be maintained between rewards and actions.
•   Meaningful. The achievements rewarded should provide an important return on investment to both the performer and the organization.
•   Achievable. The employee's or group's goals should be within the reach of the performers.
•   Reliable. The program should operate according to its principles and purpose.
   *Timely. The recognition/rewards should be provided frequently enough to make performers feel valued for their efforts
Performance Management.  
The process of performance management reflects how the work gets done and creates the environment in which people feel valued for their achievements. The performance management process includes four critical components:
•   Focus on what is important to change or be improved.
•   Measures to determine whether and how much progress is being achieved.
•   Feedback so that performers will know whether and how much progress is being achieved.
•   Reinforcement so that everyone celebrates achievements as they are unfolding.
Indicators of successful performance management include the following:
•   All measures are understood by the employees, who can describe the importance of their activities to the agency. Measures address results and behaviors/processes.
•   A tracking system is used to monitor performance in the areas identified.
•   The performance measures and progress are displayed in a public area.
•   Data on the performance charts is current.
•   The team leaders/managers are actively engaged in coaching staff members and providing assistance to improve performance.
•   Periodic celebrations mark achievements as they are realized. These celebrations are regarded positively by employees.
•   Data indicate performance is improving.

Recommend that organizations:
•   focus on variables critical to success;
•   create timely, chart-oriented feedback;
•   create celebrations that mean something to the performers;
•   use performance reviews as an opportunity to reflect "how we won" and "how we lost" make them as often as necessary to cement the learning;
•   anchor the memory of achievements achievement-oriented firms measure a lot, accomplish milestones frequently, and do much celebrating;
•   don't rely on annual performance appraisals as the sole source of feedback;
•   when designing programs, avoid copying programs used by other organizations; and
•   don't make the design process into the "let's make a form" game.

Approaches of compensation management
There are 3P approach of developing a compensation policy centered on the fundamentals of paying for Position, Person and Performance. Drawing from external market information and internal policies, this program helps establish guidelines for an equitable grading structure, determine capability requirements and creation of short and long-term incentive plans.
The 3P approach to compensation management supports a company’s strategy, mission and objectives. It is highly proactive and fully integrated into a company’s management practices and business strategy. The 3P system ensures that human resources management plays a central role in management decision making and the achievement of business goals.
•   Paying for position
•   Paying for person
•   Paying for performance
Because it is so important to employees, the issue of pay deserves to be clearly addressed. In spite of their hesitance, managers are capable of dealing with this sometimes difficult issue in a professional and effective manner. By keeping the following basic points about pay in mind, they can address virtually any pay-related topic with their employees in a professional and productive manner.
Specificity is Key
Pay is a topic with many different shades and a variety of implications. Whenever approaching the subject, it is important to work out the details beforehand so that specifics can be clearly communicated. For the manager, this means that the increase amount is nailed down before discussing a promotion with an employee. No chance of misunderstanding or false expectations can be permitted. Far too often, managers are apt to discuss generalities. “It will mean a good increase.” What exactly does that mean in terms of the employee’s monthly budget? If care is not taken here, good news can become the source of conflict and resentment.
By the same token, if asked for a raise, the manager should request that the employee suggest a specific number that he believes reflects his value. Once the employee provides that number, the manager can do his homework and decide what, if anything can be done. The employee can then be given a definitive response.
Pay is Relative
What one employee considers a fantastic increase maybe an insult to another? Each individual has a unique set of creativity and competencies. Pay should be based on the performance, position and the competencies/skills the person is having.
Pay is Not Created Equal
Various forms of pay have different purposes. The two most common forms of direct cash compensation in most companies are base pay and bonus. Base pay is the annual salary or hourly wage paid to an employee given the job he holds, While bonus is typically (or at least should be) rewarded based on the achievement of a goal of the organization. Discussions about bonus payments should be as specific as possible. This is the opportunity to point out particular accomplishments that contributed to overall team or company success. Even if the bonus is paid to all employees based on a simple overall company profit target, the manager should use the opportunity to point out specifically how individual employees helped achieve that target.
Distributing bonus checks presents a unique motivational opportunity for a manager. Handing money to an employee while discussing actions and behaviors he would like to see repeated, creates a powerful link between performance and reward. Discussions about base pay increases can be a bit different. Most companies claim to link their annual base pay increases to performance. In reality, however, base pay decisions take into account a variety of factors, including the relative pay of others in the same job, the company’s increase budget, market practices and where the individual falls within his pay range.
Even when performance is a factor, the manager is faced with the difficult task of evaluating an entire year’s worth of activity and then categorizing it according to the percentage increase options allowed by the budget. It becomes very difficult to pinpoint specific employee actions or accomplishments as the reason for the increase.
For these reasons, it’s appropriate for the discussion about base pay increases to be more general and balanced. Both strengths and weaknesses of the employee should be addressed. The actual increase is then based on an overall assessment, as opposed to a link with one or two specific outcomes. Any other factors that impact the increase percent, such as budget or pay range should be openly discussed as well.


-base pay
-cost  of  living  rise
-merit INCREASE , which  is based  on
*performance  against  the KEY  PERFORMANCE  INDICATORS.
*bonus  for  exceptional  performance  with  the  scope of the  job  position


The following tentative guidelines are suggested:

1. A performance pay system should be designed to promote the kind of performance an organization needs. In order to do so
o an analysis should first be made of the objectives and results sought
o the principles/policies and practices needed to obtain the results (e.g. team work) should be established
o these policies and practices should form part of an overall human resource management strategy.
2. Employees should be consulted in the formulation of the plan (to ascertain the type of rewards most likely to have motivational effect), in regard to its operation and distribution of
rewards, and in monitoring the scheme.
3. The criteria for the determination of performance pay should be
o objective
o measurable and measure only what is important
o that it is operated along with an appraisal system which measures performance appropriately
o designed to feed back information to employees, and not only to management
o easily understood
o related to what is controllable, so as to exclude what is beyond the control of employees.

4. The intrinsic reward system should be strengthened if need be, e.g. through
o consultation, communication, participatory systems
o training
o job satisfaction and responsibility
o reorganization of work processes

5. How the performance pay is shared is as important as the quantum, because the manner of sharing affects employees' perceptions as to whether the scheme is equitable.

6. The impact of the scheme also depends on the frequency of the payment. Therefore the reward should follow the performance as soon as possible.

7. The scheme should be given wide publicity within the enterprise.

8. The performance level should be achievable or else the scheme will have no motivational impact.
9. The quantum of pay on account of performance which is placed at risk (i.e. the amount that can be lost due to poor performance) should be carefully determined. At the same time the scheme should be sufficiently flexible to absorb downturns and adequately reward when performance is good


1. Single Mindedness – “you get what you pay for” – no more, no less. The activities that are rewarded get done, to the exclusion of other activities that are not rewarded. Example: The dysfunctional behaviors that are observed when a sales representative is put on straight commission.
2.  Control – externalities can control the outcomes, positive or negative. There can be windfall affects (the bull market improving the stock value of all stock options) or negative externalities (a bear market or recession that lowers the value of all stocks). Employee performance results may be magnified or diluted by these effects.
3.  Measurement error – some measures can be “gamed” or manipulated and may not reflect “true” performance. Sales reps can withhold sales and report it in a different period so they are not penalized by a cap on sales commissions. Managers can use “creative accounting” measures to report greater profits than were actually experienced by the firm.

4. Inflexibility – managers or employees may resist change of the basis of compensation because they are comfortable with current basis for pay and want to avoid risk of taking reduction in earnings in new system.
5. Misalignment of incentives – if pay emphasis is on a goal that is no longer relevant, that goal will continue to be emphasized until the pay system places emphasis on a different objective.
For example,  managers may emphasize short-term goals, even  if long-term goals are more relevant,  until the pay system recognizes long-term  goals to a greater extent than short-term  goals.  The reward mix for complex  jobs with several goals must reflect the  relative value of attaining the mix of  goals.
6. Line of Sight problem - division performance and corporate performance should be reflected in the pay system. If division performance and corporate performance are closely linked than both division and corporate performance should contribute incentives to the managers’ pay for performance plan. If division performance is independent of corporate performance, then the emphasis should be on rewards for meeting division goals.
Reward Titles

CIP - Critical Incident Performance

During floods, political issues, lack of resources/manpower, higher deadline pressures a special performance and accountability is showcased by an individual or team

IP - Innovative Performance

Finding out a creative and innovative ways to solve any customer issues or technical issues or any other problems

DMP - Deadline meeting Performance

Achieving performance targets within or on stipulated deadline thereby showing high caliber individual as well as team performance

TOP - Target Oriented Performance

Over achieving targets, exceeding expectations, very excellent performance

CAP – Customer / Client Appreciated Performance

Based on case-to-case basis customer feedback on issues resolved, comfort level with customer, received from customer, support provided or any such incidents / behaviors bringing in significant impact on customer’s perception and Company’s image building etc.

POB Award Point of Beginning

For small on the spot achievements, special letter from immediate superior or HOD with nominal cash amount.

Annual Outstanding Employee Award (Champion of the year)

Best Idea Award (based on cost & time effectiveness parameters along with validations or idea-evaluation panel)

Project Specific Awards (on completion or over achievement of specified assignment with cash or certificate or both)

Rewards & Awards Options:

Cash Rewards (can be Rs.1000 to Rs.5000/-)
Cash Reward + Certificate for Appreciation (by VP /  HR)
Certificate for Appreciation (by VP / HR)
Team Trophy +Certificate for Appreciation
Cash Reward for Team (with freedom to use on their own)
Team Parties / Picnic / Tours / Holiday Package etc.(Only Domestic)
Individual Holiday Package (National ) with family
Gift Vouchers (between Rs.1000 to Rs.5000/-)
Business + Pleasure Trips - sponsorship for special trainings / exhibitions / seminars / conferences + one night-out sponsored in a Star Restaurant etc. (for teams or individual)
Sponsorships for specific s eminars / exhibitions / trade fares / conferences etc.
Sponsorship for specific Technical / Functional Certification Courses  

Human Resources

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Leo Lingham


human resource management, human resource planning, strategic planning in resource, management development, training, business coaching, management training, coaching, counseling, recruitment, selection, performance management.


18 years of managerial working exercise which covers business planning , strategic planning, marketing, sales management,
management service, organization development


24 years of management consulting which includes business planning, corporate planning, strategic planning, business development, product management, human resource management/ development,training,
business coaching, etc

Principal---BESTBUSICON Pty Ltd



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