INTRODUCTION Rewards and Recognition can be powerful tools for employee motivation and performance improvement. Reward means something given for performance. Recognition is an important feature in retaining excellent employees and for improving performance. Many types of rewards and recognition have direct costs associated with them, such as cash bonus stock awards, and wide variety of company paid perks. The primary objective of providing Reward and Recognition is to encourage and motivate the employees to do better performance Rewards and Recognition are one of the motivation aspects in Human Resources. Rewards and Recognition are given to achieve desired goals. Rewards system should be closely aligned to organizational strategies. These strategies could be designed to faster innovation to 1
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Rewards and Recognition in Dr Reddy's by zeba fathima
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INTRODUCTION
Rewards and Recognition can be powerful tools for employee motivation
and performance improvement. Reward means something given for
performance. Recognition is an important feature in retaining excellent
employees and for improving performance. Many types of rewards and
recognition have direct costs associated with them, such as cash bonus stock
awards, and wide variety of company paid perks. The primary objective of
providing Reward and Recognition is to encourage and motivate the employees
to do better performance Rewards and Recognition are one of the motivation
aspects in Human Resources.
Rewards and Recognition are given to achieve desired goals. Rewards
system should be closely aligned to organizational strategies. These strategies
could be designed to faster innovation to provide unique products or services.
Rewards and recognition may be monetary, or non-monetary. Monetary rewards
include cash bonus, stock awards, company paid perks, gift certificates. Non
monetary rewards and recognition including compliments, extra time off,
ceremonial awards, and small trinkets such as mugs, t-shirts, sets of pens and
pencils. Rewards and Recognition are very useful to reinforce good
performance.
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Pharmaceutical Industry:
The pharmaceutical industry is one of the largest and the most exciting
sectors to be working today. It is a rapidly changing environment where many
advances have taken place over the past 20 years. Furthermore, it will continue
to develop and evolve at an ever-increasing pace over the next decade. New
drugs, new technologies and exciting new discoveries have driven this
evolution. Pharmaceuticals are the medicinally effective chemicals which are
converted to dosage forms suitable for patients to imbibe. In its basic chemical
form, pharmaceuticals are called bulk drugs or active pharmaceutical
ingredients (APIs) and the final dosage forms are known as formulations.
Active pharmaceutical ingredients or bulk drugs are derived from four
types of intermediates (raw materials), namely.
Plant derivatives (herbal products)
Animal derivatives e.g. insulin extracted from Bovine Pancreas
Synthetic chemicals
Biogenetic (human) derivatives e.g. human invectives
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Classification of pharmaceuticals
The Registration Regulation which ran into force on March 2nd, 1996
suggests the classification of pharmaceuticals as prescription or non-
prescription on their stage of registration or registration renewal. Almost all of
the pharmaceuticals which are supplied to healthcare services are in the extent
of prescription pharmaceuticals. But in practice, nearly all of the
pharmaceuticals except narcotics and psychographs may be purchased without
prescriptions from pharmacies.
The ministry of Health, in the context of its studies on harmonization to
EU pharmaceuticals regulations with a regulation published on April 27 th, 1996
permitted the public advertisement of non-prescription pharmaceuticals. But, on
the trial opened by the application of Turkish Union of Pharmacists, the Council
of State took the decision of stopping the execution. For this reason, no further
development could be recorded later than the regulation published on April 27 th,
1996 on the legislation related with pharmaceuticals.
Basing on the Registration Regulation which ran into force on March 2nd,
1996 the Ministry of Health turned the license status of many pharmaceuticals
applied for registration and many pharmaceuticals in the same category existing
on the market to the status on non-prescription pharmaceuticals.
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Due to some practices in basic applications like promotion, pricing,
registration, packaging information on prescription and non-prescription
pharmaceuticals, a quite different appearance than the EU centuries to which we
are targeting to harmonies came out.
It must be paid attending that, as in all European counties, the application of
“non-prescription pharmaceuticals” is formed of the following conditions and
the arrangement should be made synchronously.
The classification of pharmaceuticals existing in the market.
Freedom in pricing.
The reimbursement in defined conditions.
The placement of promotion Regulation to life and the determination of
processing and hybridism technology are the focus areas.
Dr. Reddy’s is the first company in India to develop a molecule from the
molecular biology stage to production. Dr. Reddy’s identified bio-generics as a
significant market area; they are in the process of setting up bulk recombinant
protein production sites and formulation facilities that meet USFDA
specifications Dr. Reddy’s have a pipeline comprising of several recombinant
proteins in various phases of development for treatment of cancer, diabetes and
cardiovascular diseases.
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CRITICAL CARE
Launched in 1998, Dr Reddy’s Crucial Care Division (CCD) caters to
specialty segment like Oncology. It strives to create a strong base for a
sustainable long-term competitive advantage.
ACHIEVEMENTS OF DR. REDDY’S LABORATORIES
2003: The Far Eastern Economic Review magazine has ranked Dr. Reddys
among the ‘Top 200’ companies in Asia, and among the ‘Top 10’ in India.
2002: The first overseas acquisition of BMS Laboratories Limited and Meridian
Healthcare, UK.
2001: On April 11, Dr. Reddy’s became the first Asia Pacific pharmaceutical
company, outside Japan, to list on the New York Stock Exchange. Dr. Reddy’s
out licenses Dr. F 4158 to Novarties for up of US$ 55 million upfront. It is a
milestone payment for specific clinical and regulatory endpoints.
Dr. Reddy’s is the first Indian pharmaceutical company to obtain 180-day
exclusive marketing rights for a generic Drug in the US market with the launch
of Fluoxetien 40mg capsules on August 3, 2001.
2000: Dr. Reddy’s becomes India’s third largest pharmaceutical company with
the merger of Cheminor Drugs Limited, and the acquisition of American
Remedies Limited. Reddy’s US Therapeutics, a wholly-owned subsidiary is
launched in the U.S.
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1999: Dr. Reddy’s acquires Chennai-based American Remedies Limited.
1998: Dr. Reddy’s license anti-diabetic molecule, DR.F 2725, to Novo Nordisk.
1997: The company license anti-diabetic molecular, DR.F 2593, to Novo
Nordisk. First NDA filed.
1995: Sets up a Joint Venture in Russia.
1994: Makes GDR issue of US$ million when the foundation stone was laid for
a generic formulations facility to cater to highly regulated markets.
1993: Dr. Reddy’s Research Foundation is established and becomes
operational.
1991: Dr. Reddy’s commences first exports of its formulations to Russia.
1990: Dr. Reddy’s for the first time in India, exports Norfloxacin and
Ciprofloxacin to Europe and Far East.
1988: Dr. Reddy’s obtained its first USFDA approval for Ibuprofen and started
formulations operations.
1986: Dr. Reddy’s enters international market with exports of Methyldopa and
goes public.
1984: Dr. Reddy’s is established with an initial capital of Rs.25 lakhs.
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Dr. Reddy’s Pharmaceutical Market
What started 18 years ago as a single facility in Hyderabad, has now
transformed into six multi-ton, multi-location, state-of-the art facilities that
currently make over 100 bulk actives and several key intermediates. Dr.
Reddy’s offers an unparalleled portfolio to its customers, who include
innovators and generic formulators worldwide. The company’s operations are
fully integrated though global Supply Chain Practices and ERP systems, which
enable faster response and service to customers across the world.
21% growth in revenue is in the bulk active business. Export revenue
increased by 14%
DRL produces around 60 molecules and deals with over 100 molecules.
There are about 350 API’s in India.
Manufacturing capabilities
Our bulk manufacturing operation across six units in the state of Andhra
Pradesh in India, have a total manufacturing capacity of over 1800 KL. These
facilities are built and operated according to the latest systems of CGMP. Our
facilities are approved by the USFDA and other reputed international inspection
agencies for all our major products. State-of-the-art equipment and instruments
give us the edge to compete globally.
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The infrastructure, with its optimum installed capacities and capital cost
has given us sustainable competitive cost advantage. We have superior technical
& innovation capabilities courtesy. Our people have repeatedly proven their
ability to rise to challenges. All their operations are supported by fully
integrated supply chain practices and ERP systems (SAP R/3) which enable
them to provide a faster response and service to their gamut of customers across
the world.
As an environmentally responsible organization, their manufacturing
operations are equipped with state-of-the-art effluent treatment facilities,
including aeration evaporation system and zero discharge facilities. Their
operations and infrastructure are engineered to optimize solvent and by-product
recoveries. The comprehensive manufacturing services include R&D labs, pilot
plants, technical services, quality control and quality assurance.
Bulk Actives Business
Review of Bulk Actives Business:
During the year, the Bulk Actives business recorded a turnover of Rs.
4312mn, with exports accounting for 67% of the sales. The bottom line
considerably improved due to increased contribution from exports, cost
reduction achieved in certain products like Losartan and Ciprofloxacin and the
increased contribution from high profit products like Terbinafine.
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With the successful FDA inspection of Miryalaguda Plant, all the six
Bulk Active plant are FDA approved. During the year, 30 new products were
registered across the globe. 14 new products were launched during the year.
International Bulk Actives Business:
The International Bulk Actives business contributes towards 67% of the
total Bulk turnover registering a turnover of Rs. 2879mn. US contributed
towards 39% of the international sales followed by Asia Pacific at 22% and
Europe at 15%.
Domestic Bulk Actives Business:
The Domestic Bulk business showed a growth of 11% to Rs.1433 mm.
This was a result of the shift in business focus towards the more profitable
international markets.
Outlook for Business:
In the financial year 2005s, the overall domestic export mix is expected to
be skewed more in favor of exports. In Bulk Actives SBU, the focus will be on
the regulated markets to realize better returns on the resources deployed. The
strategy will be to time the supply so as to be the first source generic alternative
to the top tier generic player through improved process for product selection,
IPR and delivery in terms of timing to market.
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In Branded Formulations of SBU, the main focus in the Domestic
business will be on building up a strong therapeutic basket of products. This
will be done through moves like brand acquisitions building OTC/Natural
products portfolio and New Drug Delivery System (NDDS) development in
current therapeutic areas enabling portions of the Supply Chain Management
(SCM) will enable us to further exploit future opportunities. In the International
Formulations business, the focus will be supplemented by strategies like
introduction and expansion into more profitable segments of oncology and
biotechnology, rationalization of product mix and OEM manufacturing in local
markets to overcome negative imports list.
DRL STRENGTHS :
DRL stresses on the 3 most important parameters of drugs – Safety,
Quality (determined at API level) and Efficacy.
Fully equipped pilot plant and sophisticated infrastructure gives us a
competitive edge in R&D operations – new product introductions.
Operated according to the latest systems of CGMP (compliance Good
Manufacturing Practices).
Facilities are approved by the USFDA and other reputed international
inspection agencies for all our major products.
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All our operations are supported by fully integrated Supply chain
practices and ERP systems (SAP R/3).
State-of-the-art effluent treatment facilities, including aeration
evaporation systems and zero discharge facilities.
Regulatory Strength (DRL has a strong RA department, dealing with
different countries and regions).
Impurity profile is very good and DRL performs intense stability tests
because stability of bulk actives determines the stability of the
formulation drugs, i.e., if shelf life of bulk ingredients is “x” months, the
shelf life of the formulations cannot be more than “x” months.
DRL is supposed to be the best in patent challenge. It was the first
Indian company to win a patent challenge (Fluoxitine), whereas Ranbaxy
is famous for its strong product pipeline (as soon as a patent expires, they
enter a market).
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REWARDS AND RECOGNITION
Introduction:
Rewards are considered to be a function of efforts put in to reach the
standard set on the basis of accomplishment manifestation. In order to practice
this strategy managers setup standards of performance, monitor the behavior of
the employees to observe the extent to which these standards are attained and
allocate rewards & based on the observance of the performance. There rewards
can be applied only where performance and results can be directly and
quantitatively measured.
Recognition is an important factor in retaining excellent employees and
for improving performance. Recognition is important because it sends a
powerful message that the recipient is important. It says that the organization
cares about good performance. When this message is lacking overall
performance may drift in search of a direction. If low performers are treated the
same as high performers, the message will be translated that high performances
gets you no where. Eventually, many in the workforce will settle at some
minimal acceptable level of performance. Surveys of workers by the public
agenda forum have confirmed that most workers say they are working
“significantly below their potential”.
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Concept of Rewards and Recognition:
Like a child being given a chocolate cup cake and a big hug after cleaning
her room, rewards & recognition can be powerful tools for employee motivation
and performance improvement. Many types of rewards & recognition have
direct costs associated with them, such as cash bonus stock awards, and a wide
variety of company paid perks, like car allowances, paid packing and giving
certificates. Other type of rewards and recognition may be less tangible, but
still very effective.
These non-monetary rewards include formal and informal
acknowledgement, assignment of more enjoyable job duties, opportunities for
training and an increased in decision making. Recognition can be very
motivating and help to build feelings of confidence and satisfaction. Another
important goal is increased employee retention. An ASTD report on retention
research identified consistent employee recognition as a key factor in retaining
top-performing worker.
To achieve desired goals, reward system should be closely aligned to
organizational strategies. For example, a company focused on a product
differentiation strategy could design their rewards practices to foster innovation
to provide unique products or services. While a company focused on a cost
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reduction strategy might focus on rewards for ideas to minimize or eliminate
costs and employee stock awards to foster an on going cost reduction emphasis.
DEFINATION:
Rewards:
Jack Zigon defines rewards as “Something that increases the frequency of
an employee action”.
“Some thing given or received in recompense for worthy behavior or in
retribution for evil arts”.
“It is a satisfying return result or profit”.
“The return for performance of desired behavior is positive
reinforcement.
Recognition:
The art of power of knowing and, of perceiving the identify any
experience or memory with other experiences or memories, Physiologically,
recognition is based upon the simultaneous or consecutive activity of different
neuron groups, their comparison and the fact that the impulses are identical,
sensations may be compared with memories, memories with other memories
and the complexes produced by the recombination of the dissociated elements
of past experiences may be compared with memories or with sensations, and
recognition may follow.
The process of recognizing “Some thing or some one by remembering”.
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NEED FOR REWARDS AND RECOGNITION
Most employees feel that they are worth more than they are actually paid.
There is a natural disparity between what people think they should be paid and
what organizations spend in compensation. When the difference becomes too
great and another opportunity occurs, turnover can result. Pay is defined as the
wages, salary or compensation given to an employee in exchange for services
the employee performs in the organization.
Pay is more than "dollars and cents;" it also acknowledges the worth and
value of the human contribution. What people are paid has been shown to have
a clear, reliable impact on turnover in numerous studies.
Employees want to be recognized for a job well done. Rewards and
recognition respond to this need by validating performance and motivating
employees toward continuous improvement. Rewarding and recognizing people
for performance not only affect the person being recognized, but others in the
organization as well.
Through a rewards program, the entire organization can experience the
commitment to excellence. When the reward system is credible, rewards are
meaningful; however, if the reward system is broken, the opposite effect will
occur.
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Employees may feel that their performance is unrecognized and not
valued or that others in the organization are rewarded for the wrong behaviors.
Unrecognized and no valued performance can contribute to turnover.
Recognition for a job well done fills the employees' need to receive
positive and honest feedback for their efforts. Recognition should be part of the
organization's culture because it contributes to both employee satisfaction and
retention. Organizations can avoid employee turnover by rewarding top
performers. Rewards are one of the keys to avoiding turnover, especially if they
are immediate, appropriate, and personal. A Harvard University study
concluded that organizations can avoid the disruption caused by employee
turnover by avoiding hiring mistakes and selecting and retaining top performers.
One of the keys to avoiding turnover is to make rewards count. Rewards
are to be immediate, appropriate, and personal. Organizations may want to
evaluate whether getting a bonus at the end of the year is more or less rewarding
than getting smaller, more frequent payouts. Additionally, a personal note may
mean more than a generic company award. Employees should be asked for
input on their most desirable form of recognition. Use what employees say
when it comes time to reward for performance (St. Amour, 2000).
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Designing a Rewards and Recognition Solution
In designing a rewards and recognition program, the following guidelines
should be considered.
Rewards should be visible to all members of the organization.
Rewards should be based on well-defined, credible standards that have
been developed using observable achievements.
Rewards should have meaning and value for the recipient.
Rewards can be based on an event (achieving a designated goal) or based
on a time frame (performing well over a specific time period).
Rewards that are spontaneous (sometimes called on-the-spot awards) are
also highly motivating and should also use a set criteria and standard to
maintain credibility and meaning.
Rewards should be achievable and not out of reach by employees.
Non monetary rewards, if used, should be valued by the individual. For
example, an avid camper might be given a 10-day pass to a campsite, or,
if an individual enjoys physical activity, that employee might be given a
spa membership. The non monetary rewards are best received when they
are thoughtfully prepared and of highest quality. Professionalism in
presenting the reward is also interpreted as worthwhile recognition.
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Rewards should be appropriate to the level of accomplishment received.
A cash award of $50 would be inappropriate for someone who just
recommended a process that saved the organization a million dollars.
Determining the amount of money given is a delicate matter of
organizational debate in which organizational history, financial
parameters, and desired results are all factors. Recognition for a job well
done can be just as valued and appreciated as monetary awards.
Formal recognition program can be used with success. First Data
Resources, a data processing services company that employees more than 6,000
individuals in Omaha, Nebraska, uses a formal recognition program (Adams,
Mahaffey, and Rick, 2002). Rewards are given on a monthly, quarterly, and
yearly basis, and range from Nebraska football tickets, gift certificates, pens,
plaques, mugs, and other items.
One of the most popular awards at First Data is called the "Fat Cat
Award" that consists of:
$500 gift check
Professional portrait of the employee
Appreciation letter from the CEO and senior management
E-mails, phone calls, and notes from peers
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In addition to Non monetary rewards, employees can be rewarded using
money in numerous ways. Cash is a welcome motivator and reward for
improving performance, whether at formal meetings or on the spot. Variable
bonuses linked to performance are another popular reward strategy.
Profit sharing and pay-for- skills are monetary bonus plans that both
motivate individuals and improve goal achievement. Small acts of recognition
are valuable for employee daily motivation. Sometimes a personal note may
mean more than a generic company award. In one survey, employees cited the
following as meaningful rewards (Moss, 2000):
Employee of the month awards
Years of service awards
Bonus pay (above and beyond overtime) for weekend work.
Invitations for technicians to technical shows and other industry events
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Objectives of Rewards & Recognition:
To increasing degree of responsibility.
To motivate the employees to pursue their goals and reach their potential.
To improve the quality of the product.
To increase the productivity.
To meet the competition.
To create the right employee- management team environment.
It is an atmosphere that is encouraging & favorable.
To improve the employees self confidence.
To create self esteem and royalty among employees.
To encourage behavior of the employees to reach strategic goals.
People are motivated to higher levels of job performance by positive
recognition from their managers and peers. Creative use of personalized non-
monetary rewards reinforces positive behavior and improves employee’s
retention and performance. Non-monetary Rewards and Recognition can be in
expensive to give, but priceless to receive.
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GUIDELINES FOR EFFECTIVELY REWARDING AND
RECOGNIZING EMPLOYEES
Studies indicate that employees find personal recognition more
motivational than money. Yet, it is a rare manager who systematically makes
the effort simply to thank employees for a job well done. The guidelines for
effectively rewarding and recognizing employees are simple; these are informal
manager-initiated performance based rewards:
Match the reward to the person. Start with the individual's personal
preferences, reward him or her in ways he or she truly finds rewarding. Such
rewards may be personal or official, informal or formal, public or private,
and may take the shape of gifts or activities.
Match the reward to the achievement. Effective reinforcement should be
customized to take into account the significance of the achievement. An
employee who completes a two-year project should be rewarded in a more
substantial way than one who simply does a favor for you. The reward
should be a function of the amount of time you have to plan and execute it
and the money you have to spend.
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Be timely and specific. To be effective, rewards need to be given as soon as
possible after the desired behavior or achievement. Rewards that come
weeks or months later do little to motivate employees to repeat their actions.
You should always say why the reward is being given.
Once you have consistently rewarded the desired performance, your pattern
of recognition may become more intermittent as the desired behavior
becomes habitual with employees.
REQUIREMENTS FOR A SOUND BENEFITS PROGRAM
The program should reflect the company's values and business strategy.
Employees should participate in the development and execution of the
programs.
The programs can involve cash, non cash or both.
Since what is meaningful to you may not be meaningful to someone else, the
programs should encompass variety.
The programs should be highly public to the company.
The programs should have a short life span and must be changed frequently.
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INFORMAL REWARDS
Informal rewards, meaning spontaneous, and forms of recognition that
can be implemented with minimal planning and effort by almost any manager.
In a recent study of more than 1,500 employees in dozens of work settings by
Dr. Gerald H. Graham, professor of management at Wichita State University,
the most powerful motivator was personalized, instant recognition from their
managers. "Managers have found," Graham adds, "that simply asking for
employee involvement is motivational in itself." In one of his studies,
employees perceived that manager-initiated rewards for performance were made
least often, and perceived that company-initiated rewards for presence ( that is,
rewards based simply on being in the organization) occurred most often. Even
though the first type of reward has the highest motivational impact and the
second type has lower of an impact.
Graham's study determined the top five motivating techniques:
1. The manager personally congratulates employees who do a good job.
2. The manager writes personal notes about good performance.
3. The organization uses performance as the basis for promotion.
4. The manager publicly recognizes employees for good performance.
5. The manager holds morale-building meetings to celebrate successes.
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Only 42% of the respondents believed that their managers typically used
the top motivating technique in which a manager personally congratulates
employees who do a good job. The other top factors were perceived by less than
25% of the respondents as being typically used. Not only are informal rewards
more effective, but they tend to be less expensive. According to the "People,
Performance, and Pay" study by the American Productivity Center in Houston
and the American Compensation Association in 1987, it generally takes 5 to 8
percent of an employee's salary to change behavior if the reward is cash and
approximately 4% of the employee's salary if the reward is noncash.
NON-MONETARY REWARDS AND RECOGNITION:
Some of the most effective forms of recognition cost nothing at all. A
sincere word of thanks from the right person at the right time can mean more to
an employee than a raise, a formal award or whole wall of certificates or
plaques. Part of the power of such rewards comes from the knowledge that
someone took the time to notice the achievement, seek out the employee
responsible and personally deliver praise in a timely manner.
Research by Dr. Gerald Graham throughout the United States revealed
that the type of reward employees most preferred was personalized, spur-of-the-
moment recognition from their direct supervisors. In a recent survey of
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American workers, 63% of the respondents ranked "a pat on the back" as a
meaningful incentive.
Since several studies on employees have shown that the greatest influence
on job satisfaction is the supervisor, any manager has all the ingredients for
achieving a high degree of satisfaction and a correspondingly high level of
performance among his or her employees.
RECOGNITION ACTIVITIES:
Many effective forms of recognition are one time events that celebrate a
significant achievement or a milestone. Such activities need to be planned so as
to be timely and pertinent to the situation and the person being recognized. A
recent survey by the Minnesota Department of Natural Resources found that
recognition activities contributed significantly to employees' job satisfaction.
Most respondents said they highly valued day-to-day recognition from their
supervisors, peers and team members. Other findings from the survey:
68% of the respondents said it was important to believe that their work was
appreciated by others.
63% agreed that most people would like more recognition for their work.
67% agreed that most people need appreciation for their work.
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Only 8% thought that people should not look for praise for their work
efforts.
Nancy Branton, project manager for the survey, says, "Recognition
programs are more important now than in the past”. Employees increasingly
believe that their job satisfaction depends on acknowledgement of work
performance as well as on adequate salary. This is especially true of
employees who are highly interested in their work and take great satisfaction in
their achievements.
Reward strategies:
An effective employee recognition system inspires workers to switch off
automatic pilot and concentrate on daily tasks by turning the workplace into a
game with a series of specific, widely known, achievable objectives. One way
to do this is to target important tasks, give them point values, and allow
employees to earn points as these duties are carried out.
A total, such as 100, should be designated as the goal. The total points
employees need to earn a reward should be based on reasonable, not
exceptional, performance levels. Unlike incentive programs that drive
employees to achieve improbable goals, the key to this type of system is that it
rewards employees when their performance is average. Incentive programs tend
to create extreme peaks and valleys in performance. Any organization can adopt
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this technique as long as management tailors the specific steps to its own
circumstances and makes a long-term commitment to the program.
The process of individual employee and work team recognition is
becoming a social science of its own. Various types of incentives are
increasingly being used to change the working culture of companies. It is clear
that the direction of a company can be changed - or at least substantially
influenced - by honest recognition of employee contributions.
A recognition system is important because it offers incentives for
improving quality and productivity. Yet, more important, a recognition system
makes a statement about what principles are important to a company.
Recognition is a form of employee motivation in which a company recognizes,
praises, and thanks employees who have made positive contributions to the
company's success, and must be consistent with a company's values and
principles. Guidelines for recognition systems are presented.
A firm's recognition and reward system must be properly structured,
communicated, and understood by everyone. To assist employees in
remembering the important recognition attributes and types of rewards to
consider when recognizing and rewarding teams and individuals, an alliterative
approach using the letter "a" may prove useful.
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To illustrate this, a team or individual should have the following
attributes to be considered for recognition of a quality activity:
1. An aggressive attitude.
2. Aptitude and ability.
3. Activity in application, and
4. Accomplishments and achievements.
Once candidates have been selected, the following rewards can be used to
show gratitude for their accomplishments:
1. Accolades.
2. Acknowledgment.
3. Awards, and
4. Appreciation.
Although managers often say their most valuable asset is their employees,
they do not always behave in ways that make employees feel they are truly
appreciated. Recognition-award programs are helpful in creating recognition
moments and in teaching praise techniques.
When expressing appreciation to employees and rewarding their good
behavior, employers should follow 3 important principles:
1. Describe the desired behavior in specific terms.
2. Explain why the behavior was helpful.
3. Express thanks.
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In addition, the significance of the event should correspond with the
amount of gratitude being expressed. Money is a particularly powerful incentive
for increasing sales and productivity, but some form of ongoing remembrance
of the award should also be given. When the recognition program is created,
employers should communicate the following ;
1. the program's objectives and why the company is sponsoring it.
2. the mechanics of the program.
3. the symbolism of the award, and
4. the way the program reinforces the company culture and values.
Today, many companies want to engender employee recognition. A
recognition program alone is unlikely to work with a disgruntled or unmotivated
work force. To be effective, a recognition program must be part of a whole
culture of valuing employees.
Many organizations have discovered low employee morale translates into
reduce productivity, absenteeism, and a high turnover rate. Motivational
techniques include:
1. raises and bonuses.
2. merchandise credit, and
3. spontaneous recognition and rewards.
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Cash rewards cost more and offer less leverage. Recognition is an honor
money cannot buy. Praise or a personal note acknowledging achievements are
small gestures that are extremely important to employees.
As companies re-examine the role of employees, a traditional idea is re-
emerging - recognition as a tool to motivate employees. Led by the service
award, recognition programs of all kinds are fulfilling people's needs for a kind
word. Today's employee service recognition programs are at least as
sophisticated and well-planned as any other modern business process. They are
communication-based, performance-focused and empowered with symbolism.
Companies taking a fresh approach to recognition programs see a process with
several important objectives:
1. opening channels of communication.
2. Enhancing individual worth and self-confidence.
3. reinforcing corporate values and culture.
4. recognizing personal performance and achievement, and
5. building mutual commitments and relationships.
According to a recent study comparing responses of supervisors and
employees to what each group thought employees wanted most, improving
morale is not a matter of paying people more. Responding employees indicated
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that they want to be involved and appreciated and get personal satisfaction from
their jobs, not strictly monetary value.
Praise is an excellent way to reinforce desired behavior; however, it is not
the way to inspire it. If employees perform to certain standards simply for the
material reward promised, they will come to expect that kind of reinforcement
constantly and will be difficult to motivate in the absence of what they perceive
as commensurate material attention.
The key to motivating employees is to make them want to do the job well
for its own sake. Employees should see how they fit into the company's larger
scheme - how they tangibly contribute to the making of the product. Employees
whose donations are acknowledged will achieve high levels of personal
motivation and loyalty to the organization.
Employee recognition programs usually give the employee the choice of
an award gift. Many firms in the award business have developed catalogs that
can display a company's logo and special message; some employ substantial
marketing staffs to ensure that employee recognition programs work for the
companies purchasing their award items.
Today's intergenerational mix of employees is heterogeneous in makeup
and complex in nature, demanding that motivational efforts address diverse
lifestyles. Many long-service employees have conservative values and respond
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to traditional symbols of appreciation with a focus on the corporate identity.
However, many midterm employees prefer choice and understated corporate
identity.
Today's young employees want peer recognition, thus traditional annual
achievement awards presentations are important to them. Other motivating
practices are also important to them, such as:
1. peer review.
2. bonuses.
3. stock options, and
4. assignments to special projects.
Effective reward management can help you achieve your business
objectives by attracting and retaining motivated, loyal and competent people. In
return for their commitment, people expect financial rewards such as salary,
fringe benefits, bonuses, promotions or stock options.
They will also seek other forms of reward such as recognition of
competence, achievement, responsibility, influence, and personal growth. The
challenge is to get the balance right to get the best results. You will need to
establish the relationship of the rewards to business and individual performance,
and make informed decisions about flexibility and fairness, the level of rewards,
market rates, pay structures, incentive/bonus schemes and benefits. The
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following key points will help you manage reward to improve your business
results. Ensure that all reward programmes are aligned to business objectives.
Determine the present situation - typically you will have people with a
variety of packages. View, and communicate 'total reward' packages ensuring
each element is valued and has a distinct purpose.
Remuneration is a major cost for any organization, invest where the
maximum return will occur. 'One size' does not necessarily fit all. Target your
spend and tailor your reward programe for the different areas of your
organization. Ensure that the different elements of the reward package don't
overlap. For example, salespeople are often paid cash bonuses and receive
recognition awards.
Both elements are rewarding the same behaviour, don't pay twice.
Benchmark your pay and benefits against the market - there is no need to be
over generous when compared with your peer organizations. When reward
programs are successful, they should be linking to, and supporting, other people
issues.
Seven Recognition Do’s and Don’ts
Over the years that I have been involved with recognition processes, I
have developed a list of what I call “Recognition Do’s and Don’ts”. When one
ventures into recognition in the workplace, one will, invariably, make mistakes.
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So what are those elements of recognition that either make it succeed, or
produce results far below what was hoped?
1. Keep clear the distinction between recognition and incentives: An
incentive is an enticement advertised in advance to get people to do
something. Recognition is a “thank you” given after the fact.
2. Keep the recognition criteria wide open: Too many times organizations
will limit the criteria by which one can receive recognition. The committees
I have worked with found that there are so many opportunities for
recognition that it is virtually impossible to list criteria. A good recognition
committee can determine through consensus if a “thank you” is truly
deserved.
3. Nominations should be open to all employees: Management’s eyes cannot
be everywhere. Frequently, they will miss the outstanding performance on
the loading dock. Allow everyone in the organization the opportunity to
nominate some one for recognition. One of the greatest nominations our
committee ever received came from a pipefitter who had added two
eloquently written pages to the nomination to say what an outstanding
worker his partner was.
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4. Maintain confidentiality during investigations: All persons nominated for
recognition may not, in fact, be deserving. Keeping the process confidential
will help to avoid hurting someone, and bring crediability to the process.
The nominee’s supervisor and manager have a need to be included, as they
may be aware of other issues that may affect the committee’s decision.
5. Make the recognition special, not expensive: In the past, some of the
recognition committees felt that an expensive award of $300 or $400 sent a
more powerful “thank you”. However, as the dollar amounts climbed, the
“thank you” became lost somewhere. The recognition process became more
like an incentive program or contest. I even had a recipient tell me how
angered he was by how his recognition was handled, even though he
received $1000 from his company .A recognition award should be a “token”
of appreciation. A specially made (but inexpensive) certificate of
appreciation will hang in the den forever. Money, however, will be spent
and forgotten.
6. Include family in presentations when possible. This extends the
recognition and resulting “good feeling” to the entire family.
7. Use good judgment. When it comes to performing meaningful recognitions
nothing replaces good judgement. People seem to know when recognition is
deserved and how much is appropriate. Perhaps this is way recognition
committees serve such a valuable function.
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REWARDS & RECOGNITION IN DR. REDDYS LABORATORIES
Dr. Reddys Laboratories consider the Human Resources as the most
important of all the resources in the company. Therefore in its pursuit of
enriching the quality of its employees, to improve their performance, to
motivate its employees and to satisfy their needs, the company has providing
many Rewards & Recognition. These rewards motivate the employees to
improve their performance further. This in turn leads to self-commitment of the
employee to learn further, acquire latest skills & knowledge and to develop their
human resource. Non-monetary rewards are encourage the employees to
perform better.
The important Rewards and Recognition provided by the Dr. Reddys are:
Monetary Rewards :
1. Promotions.
2. Incentives.
3. Performance bonus.
4. Training.
5. Job rotation.
6. Work shops.
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Non-Monetary Rewards :
1. Lunches and Dinner.
2. Celebrations.
3. Awards.
4. Certificate of Appreciation’s.
5. Small Trinkets.
6. Complements.
Promotion :
A promotion is the transfer of an employee or upwards advancement of
an employee in an organization to another job, which commands better
pay/wages better status/prestige, better walking environment and a higher rank.
These promotions will be given by the measuring the performance. The Dr.
Reddys provide this promotion to recognize individual’s performance and
reward him for his work so that he may have an incentive to forge ahead.
Employees will have little motivation if better jobs are reserved for outsides.
Incentives:
Dr. Reddy’s is providing the incentives to their employees to motivate
and reward the sales team with in an organization. Incentives are designed to
motivate and recognize participants for meeting exceptional level of
performance in supporting of company goals.
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Incentives often include small gifts like gift cards. Dr. Reddys provided
the incentives like travel packages, big name sporting events.
Performance bonus:
The minimum bonus is paid as per the payment of bonus Act 1965 to all
the employees who are working under organization. Dr. Reddys provide the
bonus as per the act as well as something given or paid in additional to what is
usual for the excellence performance of the employees. This performance
bonus will be given to those who perform better than other.
Training :
Dr. Reddy’s has provided employees with the many training programs to
improve the knowledge apart from the work.
The out bound training is a program educating the participants on
different aspects of working effectively in a team, how perceptions/paradigms
affect their communication & behaviour, how to deal with various situations
and how creativity could help in solving problems. This type of training
program is also one type of reward to the employees to acquire knowledge.
The ‘Behaviour Training Exercise’ for its employees. Popularly known
as “Express yourself clearly’ program, it identifies/extracts training needs from
the perfect IDPs. This training tells the real-life situations & some case studies
other training programs like “A mountain of learning” it tells about the value of
team -work & discipline.
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Job Rotation:
This job rotation is one type of reward to get the job knowledge and gains
experience from his supervisor or trainer in each of the job assignment.
Through this the employees may understand the problem of each every job.
This is also one type of training.
Work Shop:
The workshops will be conducted by the company which were extremely
practical and interactive, have drawn much appreciation from the trainees. Dr.
Reddys planned more workshops on ‘Lateral Thinking’, ‘Team Dynamics’
‘Personnel Development’ ‘Leadership’, Communication Skills’, and ‘Problem
Solving, Decision making and Time Management’. These workshops are very
useful for employees to known how the performance could achieve.
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Non-Monetary Rewards :
Lunch & Dinner:
Provide the Lunch & Dinner when celebrations & Award functions
are held.
Celebrations:
Celebrations are held for the purpose of fan, friendship & togetherness.
Dr. Reddys celebrates the important days like women days, may day,
independent days and new year celebrations.
Celebrations are a forum for recognizing the “Spirit of Excellence” in the
company. The ‘Spirit of Excellence” Celebrations is a big event of Dr. Reddys.
It is a two days program. On first day there will be a carnival time. The
carnival includes the variety of fun games, stilt walkers, tattoo artists, pottery
stalls, bangle stalls, fun rides for children. Many dance programs and musical
programs. The second day is celebrated through distribution of spirit of
excellence award to the excellence performance. Also conduct the quality
celebrations programs, to spread good manufacturing practices awareness
among the employees and resolve non-compliance issues. And also conducted
the safety celebrations to know the importance of safety in the work place.
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Awards :
The Dr. Reddy Laboratories provide these to recognize the excellence
performance. The awards can be motivated the employees to perform better.
Spirit of excellence awards :
To recognize excellence performance and efforts towards organization
building the company will distributes the CM excellence awards, team awards
and certificates for appreciation (Special Recognition Award) on the occasion of
‘Spirit of Excellence’ celebrations.
The team awards givens to
Best unit.
Best Management work place.
Best Sales & Marketing team.
Best Innovation Team.
Best team contribution to Society/Environment.
Best team Initiative.
Best Service Excellence.
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Certificate of Appreciation :
The certificate of Appreciation will be given to recognize persons. It
includes family in presentations when possible:This extends the recognition
and resulting “good feeling” to the entire family. Some programs conducted by
the Dr. Reddys will invite the employees as well as their families. The ‘Spirit
of excellence award celebration’ invite the employees as well as their families,
and also provide the dinners.
Elite :
Elite is a Dr. Reddys special program Dr. Reddys honoured its top 52
professional their targets for 3 years in a row and helping in building the
companies brands in the field.
The Elite as they are called – were invited to some place with their
families and entertained lavishly and at a gala dinner held in the everything at
celebrity they were presented with special plaques. There were prices for
employees and children’s as well.
Small Trinkets : Small trinkets will be given to their employees like t-shirts,
pens, ties etc.
Complements: Complements will be comes from the superior, when ones
performance is great. This is also one form of non-monetary reward.
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Achievements & Awards Received by Dr. Reddy’s
The efforts of Dr. Reddy’s have been recognized in various. Some of the
major awards received by Dr. Reddy’s are in the area of packaging, best unit,
innovation etc.
When the company bagged prestigious awards for their products. The
employees are motivated to work in the esteemed organization to improve their
performance towards success of the organization.
Some of the important awards received by Dr. Reddy’s in 2004 -2005:
AT the 4th Express Pharma pulse, awards function organization Mumbai
on may 28, 2004 Dr. Reddy’s was voted the “Best Bulk Drug company”
& Best Pharma company for Excellence in Research” by Express Pharma
pulse”, India’s leading pharmaceutical weekly.
Dr. Reddy’s Brazil has bagged prestigious “convite para o premio” – Top
of business award for the year 2004 from montreal events & globo.com.
April 6, 2005 the Chemtech Foundation honoured Dr. Anji Reddy,
chairman of Dr.Reddy’s lab bagged prestigious “Hall of fame’ award at
its annual Chemtech – pharmabio award for 2005.
Dr. Reddy’s has bagged 10 prestigious ‘Indian star 2004’ national awards
this year for excellence in the package.
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Dr. Reddys won award from the ‘Public Relation society of India” on
Feb’14th 2004 at the 7th Andhra Pradesh public relations conference.
Elixur – The House Magazine of Dr. Reddy’s Laboratories was awarded
a trophy and an appreciation certification by the public relations society
of India in the 6th ‘All India Awards’ as a part of the 7th Andhra Pradesh
Public Relations Conference conducted on February 14th, 2004.
March 14th, 2005 Dr. Reddy’s has been rated among the 13 best managed
companies in India.
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DATA ANALYSIS AND INTERPRETATION
1. The company providing you any rewards and recognitions?
Response % of Respondents
Yes 70%
No 30%
Total 100%
From the above analysis the employees are providing rewards
& recognition by Yes 70%, No 30%.
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2. Type of Rewards and Recognition are provided to you
Response % of Respondents
Monetary 60%
Non Monetary 40%
Total 100%
From the above analysis the employees are provided rewards &
Recognition are monitory 60% and non-monitory 40%.
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3. The Rewards and Recognition provided to you by the organization?
Response % of Respondents
Yes 65%
No 35%
Total 100%
From the above analysis the rewards & recognition by organization to
employees is Yes 65%, No. 35%.
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4. Rewards and Recognition being introduced in the Organisation?
Response % of Respondents
Superior 50%
Co-worker 30%
Websites 20%
Total 100%
From the above analysis the new rewards and recognition introduced in
organization by superior 50% workers 30%.
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5. The Opinion on rewards and Recognition provided by your
Organization?
Response % of Respondents
Excellent 40%
Good 30%
Average 20%
Satisfaction 10%
Total 100%
From the above analysis the rewards and recognition are provided by
organization is excellent 40%, good 30%.
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6. Have you get any Rewards and Recognition for your performance in
your organization?
Response % of Respondents
Yes 70%
No 30%
Total 100%
From the above analysis the rewards and recognition for performance in
organization is Yes 70%, No 30%.
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7. The rewards and recognition do you prefer more?
Response % of Respondents
Monetary 60%
Non Monetary 40%
Total 100%
From the above analysis the rewards and recognition prefer is
monitory 70% and non-monitory 30%
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8. The Motivation level of you through these Rewards and Recognition
provided by your Organization?
Response % of Respondents
Yes 80%
No 20%
Total 100%
From the above analysis the motivational aspects provided by
organisation is Yes. 80%, No. 20%.
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9. The satisfaction level of you through these Rewards and Recognition
provided by you Organization?
Response % of Respondents
Very Good 50%
Good 30%
Bad 20%
Total 100%
Above analysis the satisfaction level through rewards and recognition
is very good 50%, Good 30%.
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10. The success of your organization largely depends on the Rewards
and Recognition, system forward by your company.
Response % of Respondents
Yes 65%
No 35%
Total 100%
From the above analysis the success of organization is depends on
rewards & recognition by Yes 65%, NO. 35%.
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11. The different monetary rewards provided to you?
Response % of Respondents
Profits 60%
Bonus 40%
Total 100%
From the above analysis the organization is provided by monetary is
profits 60% bonus 40%.
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12. The different non monetary rewards provided to you?
Response % of Respondents
Gifts 60%
Hikes 20%
Perks 20%
Total 100%
From the above analysis the organization is providing non-monetary
gifts 60% hikes 20%.
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CONCLUSION
1. Finally it is concluded that Rewards and Recognition of the organization it
effectively on employees.
2. Rewards and Recognition programme is used to develop the employee
performance and skills.
3. This organization is providing more festinates to employees.
4. The organization is providing new type of techniques in the organization.
5. The updated programme, and Rewards provided by the organization to
employees in all levels of areas.
6. The organization is providing Rewards on performance of employees.
7. The company is providing more facilities to the monetary level.
8. The company is providing more types of Motivational aspects to the
employees.
9. The company is giving more priority to satisfy their employees.
10.The companies is successful in providing Rewards and Recognition to the
employees.
11.It is providing all New type of Rewards to their employees.
12.It is providing Rewards and Recognition to employees on their effectiveness
to their work.
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SUGGESTIONS
1. There should be a permanent display about the rewards and recognition to
make clear awareness among the employees about the different rewards
provided in their organization.
2. Most of the rewards and recognition’s provided to the managers &
executives only. The companies should also provide to the employees.
3. The management should conduct the survey to collect the opinions of
employees regarding the rewards and recognition to know their satisfaction
level. So, as to improve the effective reward system.
4. The workers representatives should be involved in management decision
making process regarding the rewards and recognition.
5. The management should update its rewards systems in order to motivate the
employees from time to time.
6. The management is encouraging the employees for their outstanding
performance and at the same time it should have perfect counseling for the
employees who are about to reach their target.
7. The rewards and recognitions provided by the organization should be
satisfaction as the success of the organization largely depends.
8. The training and relation should be improved and trade union should actively
participate in where ever the workers are brutally suppressed.
9. Reward revision should be facilitated as per needs/requirements. Timely
rewards revisions reduce 100% problems.
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QUESTIONNAIRE
Name of the Company:Type of Business: Manufacturing ServicesLocation:Designation:Department:Number of Employees:Various other locations:Number of years in business:
1. What kind of Reward policy is implemented in your organization?
a. Formal b. Informal
2. . Is the reward scheme for every financial year budgeted in your company?
Yes No
3. If yes, what percentage of revenue is earmarked for the reward in the financial year?
4. Is the Reward system in your organization
a) Monetaryb) Non monetaryc) Both
5. What are the various Non monetary rewards practiced in your organization?
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6. Is the reward system practiced in the organization properly communicated to all the employees in the organization?
Yes No
If yes, How?
7. How often are the employees rewarded?
a) Monthlyb) Quarterlyc) Half yearly d) Yearlye) Occasionally based on extra ordinary accomplishments.
8. What are the behaviours that you are trying to encourage in your employees?
9. Are all the employees eligible for the Reward as per your company policy?
Yes No
10.If No, which level of employees are eligible?
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11.The criteria considered for rewarding the employees:
12.In your organization employees are considered for Reward and Recognition mostly for
a) Innovative and Creative Ideasb) Increased productivity/results/outcomec) Customer Satisfactiond) All of the abovee) Others
13.How is an employee selected for a reward? Is it through
a) Group voteb) Decision from top officialsc) Decision from a single managerd) None of the Above
14.How is the company benefited from the rewards and recognition?
a) Improved performanceb) Reduced absenteeismc) Others
15.How old is the current Reward Policy?
16.How frequently do you bring changes in the Reward system practiced in the organization?
a) For every 2-3 yearsb) For every one yearc) For every six monthsd) None of the above
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17.Are the employee suggestions considered while reviewing the Reward program?
Yes No
18.How do you treat Non-Performers in your organizations?
a) Training to develop their skillsb) Any counseling been donec) Any other measures
19.If there is no improvement in the Employee’s performance would you
a) Review job of the employeeb) Transfer of Departmentc) Demotiond) Pay/Salary Cute) Termination
20.What are the various short comings in your company’s Reward & Recognition Scheme?
21.What are the measures taken to overcome or correct the same?
22.Is your company providing you any Rewards and Recognition’s?
a) Yes b) No
23.Which type of Rewards and Recognition are provided to you ?
a) Monetary b) Non monetary c) Both
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24.Are you aware of all the Rewards and Recognition provided to you by the
organization ?
a) Yes b) No c) Partially.
25.How did you come to know about any new Rewards and Recognition
being introduced in the organization?
a) Through superior b) Co-workers
c) Through websites d) when necessary comes
26.What is your opinion on Rewards and Recognition provided by your
organization?
a) Excellent b) Good c) Average d) Satisfaction
27.Did you get any Rewards and Recognition for your performance in your
organization?
a) Yes b) No
If yes what are they?
28.Which type of Rewards and Recognition do you prefer more.
a) Monetary b) Non monetary c) both
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29.What is the motivation level of you through these Rewards and
Recognition provided by your organization?
a) 0-25% b) 25%-50% c) 50%-75% d) 75%-
100%
30.What is the satisfaction level of you through these Rewards and
Recognition provided by your organization?
a) 0-25% b) 25%-50% c) 50%-75% d) 75%-
100%
31.Do you accept that the success of your organization largely depends on
the Rewards and Recognition system followed by your company.
a) Yes b) No c) Partially.
32.What are the different monetary rewards provided to you ?
a) Profits b) Bonus
33.What are the different non monetary rewards provided to you ?