SYPNOPSIS

A detailed study of promotion and reward policy of

organization
 1. INTRODUCTION

Employees are motivated by both intrinsic and extrinsic rewards. To be effective, the reward
system must recognize both sources of motivation. All reward systems are based on the
assumptions of attracting, retaining and motivating people. Financial rewards are an important
component of the reward system, but there are other factors that motivate employees and
influence the level of performance. In fact, several studies have found that among employees
surveyed, money was not the most important motivator, and in some instances managers have
found money to have a demotivating or negative effect on employees.

Today's emphasis on quality-improvement teams and commitment-building programs is creating

a renaissance for financial incentive of pay-for-performance plans. Today financial incentives
constitute less than 5% of the U.S. worker's compensation. Organizations adopt alternative
reward systems to increase domestic and international competition. The competitive reasons for
the growing emphasis on performance-based compensation are companies cutting costs,
restructuring, and boosting performance.

To ensure the reward system is effective and motivates the desired behaviors, it is essential to
consider carefully the rewards and strategies utilized and ensure the rewards are linked to or
based on performance. To be effective, any performance measurement system must be tied to
compensation or some sort of reward. Rewarding performance should be an ongoing
managerial activity, not just an annual pay-linked ritual.

Strategies for rewarding employees performance and contributions include both non-financial
and financial mechanisms. Some of the primary ones are discussed below. The list is not
exhaustive, and individual units/departments may identify additional mechanisms that are
appropriate for and support their culture and goals.

Praise/recognition from supervisors - Praise and recognition from supervisors is

consistently found to be among the most important motivators. Employees want
to be recognized and feel their contributions are noticed and valued. It is
important that supervisors recognize the value and importance of sincerely
thanking employees verbally and/or in writing for their specific contributions.
Challenging work assignments - Challenging/new work assignments are another
mechanism available to supervisors to reward good performance. Such
assignments can provide employees opportunities to develop new skills, expand
their knowledge, and/or increase their visibility within the organization. They also
send an important message that employees contributions are recognized and
valued. In considering such assignments, supervisors should consult employees
about the types of assignments that would be most valued, and they should also
assess whether workloads will need to be redistributed to ensure employees
have adequate time to devote to new tasks.
Professional growth and development opportunities- Supervisors may
provide employees opportunities to participate in educational programs or other activities
 that will expand their skills/knowledge. Employees benefit by developing new skills, and
the institution benefits from the additional expertise individuals bring to the job. Nelson
notes a recent survey found that 87% of responding workers viewed special training as a
positive incentive, and it appeared most meaningful to employees with postgraduate
education.
Paid Leave - Supervisors may award employees up to 32 hours of paid leave annually in
recognition of meritorious performance

Progression through the salary range - Employees may receive salary increases to
recognize the attainment of new and/or the enhancement of existing skills/competencies
or for assuming increased responsibilities within the scope of the current position. The
salary increase represents a progression through the salary range approved for the
position
Merit increases - UT-Houston policy allows supervisors to give employees an annual
merit increase to recognize consistently meritorious performance or successful
completion of a project that had a significant impact on a department or the university.
The reward may be in any amount up to 5% of the employee's current base salary, subject
to the availability of funds. Budgetary information regarding fiscal year merit increases
are issued annually as part of the budget process as soon as the institution's fiscal position
can be determined. To be eligible for a merit increase, employees must have been
employed for at least six continuous months and at least six months must have elapsed
since the employee's last salary increase, promotion, salary increase due to progression in
the salary range, demotion or transfer from another department.
Lump Sum Merit

A lump sum merit is a one-time award, not added to base pay, that can be awarded to an
individual for meritorious job performance. Meritorious job performance is defined as
either consistently high level of job performance over a sustained period of time; or
successful completion of an assigned project that had a significant positive impact on the
department or the university.
An employee cannot be guaranteed in advance a payment of a lump sum merit
for achieving performance targets.
A lump sum merit award is not considered compensation for purposes of the
overtime calculation for FLSA non-exempt employees.
A lump sum merit award is considered compensation for purposes of inclusion
and contributions for Teachers Retirement System (TRS) or Optional
Retirement Program (ORP) per HB1545, Section 51.962 as amended.
Lump sum merit awards are included in the Tax Sheltered Annuity (TSA)
calculation.
A lump sum merit may be paid from any fund source. Payment from a grant
fund will be up to each individual granting agency.
An important part of base pay management is the maintenance/monitoring of
an employee's base pay salary and progression through the salary range. HR
strongly encourages managers to award the regular merit increase as an
 additive to base pay if the employee's current pay is below salary range
midpoint and the permanent funding is available.
Promotions and lateral moves - Promotions and lateral moves may be long term rewards
that recognize employees professional growth, expertise, and capacity to contribute to
the institution in new roles. Promotions are typically associated with an increase in salary,
and the increase may be any amount up to 5% of an employees current salary. For
employees with base salaries under $25,000, the increase may be any amount up to
$1,250. The new salary also must be within the salary range approved for the position,
and employees are subject to a 90-day probationary period following a promotion/lateral
move to a new department.

Administrative salary supplements - Employees who assume new/additional

responsibilities on an interim basis may receive administrative salary supplements that
are paid in addition to the base salary. The supplement is discontinued when the
employee is no longer responsible for the additional responsibilities.

Informal rewards - When warranted, supervisors may choose to give employees informal
rewards for specific accomplishments/contributions. State law and institutional policy
allow expenditures of up to $50 of state funds and $100 of non-state funds per employee
for informal non-cash rewards that demonstrate the supervisors/institutions
appreciation. Supervisors can be creative in identifying informal rewards that will be
appreciated by the particular individual being recognized, but, in selecting and
purchasing rewards, supervisors must be sensitive to the institutions responsibility to be
good stewards of public funds.

2. RATIONALE OF THE STUDY

Reward Systems are a critical part of any organization's design. How well they fit with the rest of
the systems in an organization has an important impact on how effective the organization is and
on the quality of life that people experience in the organization. Over the past decade, some
new reward systems practices have become popular in order to align reward systems with the
important changes that are occurring in the way organizations are designed and managed.

3. NEED OF THE STUDY

Good remuneration has been found over the years to be one of the policies the organization can adopt to
increase their workers performance and thereby increase the organizations productivity. Also, with the
present global economic trend, most employers of labour have realized the fact that for their organizations
to compete favourably, the performance of their employees goes a long way in determining the success of
the organization. On the other hand, performance of the employees in any organization is vital not only
for the growth of the organization but also for the growth of the individual employee. An organization
must know who are its outstanding workers, those who need additional training and those not contributing
to the efficiency and welfare of the company or organization. Also, performance on the job can be
assessed at all levels of employment such as: personal decisions relating to promotion, job rotation, job
enrichment etc. And, in some ways, such assessment are based on objective and systematic criteria, ehich
includes factors relevant to the persons ability to perform on the job. Hence, the overall purpose of
performance evaluation is to provide an accurate measure of how well a person is performing the task or
job assigned to him or her. And based on this information, decisions will be made affecting the future of
the individual employee.
Therefore, a careful evaluation of an employees performance can uncover weakness and deficiencies in a
specific job skill, knowledge or areas where motivation is lacking. Once identified, these deficiencies may
be remedied through additional training or the provision of the needed rewards.

4. STATEMEMNT OF THE PROBLEM

The statement of the problem is:

How to determine the association between rewards and employee retention?

How can we assess the influence of job satisfaction on employees intention to stay
with the organization?
What is the association between human resource policies and employee retention?

5. OBJECTIVES OF THE STUDY

The objective of the study is:

Determine the association between rewards and employee retention.

Assess the influence of job satisfaction on employees intention to stay with the
organization.
Investigate the association between human resource policies and employee retention.

6. SCOPE OF THE STUDY

The Scope of the study is limited to Delhi, India.

7. RESEARCH METHODOLOGY
The research will be done at Delhi, India.
RESEARCH DESIGN

The research design is descriptive design.

DATA SOURCE

Primary Data - The primary data will be collected from the employees through a
structured questionnaire (which will be prepare at a later stage).
Secondary Data - Apart from primary data collected, the data collected from the
literature, hp intranet and web.

SAMPLING UNIT

Employees of the companies.

SAMPLING SIZE

100 Employees

SAMPLING TYPE

A total number of 100 employees will be selected randomly from Delhi. So the sampling
type is simple random sampling.
 HYPOTHESIS:

There is a significant relationship between extrinsic rewards and

workers performance.
There exists a significant relationship between intrinsic rewards
and workers performance.

TOOLS OF ANALYSIS

Consistent with the study objectives different tools and techniques such as Diagrams,
graphs, pie charts, will be used for data analysis. Interpretation of data will be based on
regimes exercise aiming at the assessment of study objectives.
The hypothesis will be tested by using the appropriate research tool.

8. CONTRIBUTION FROM THE STUDY

The present study will identify the steps necessary for promotion and reward calculation. It will
recommend strategies to improve effectiveness of the reward system in an organization. These
recommendations will be provided on the basis of a survey.

9. LIMITATIONS OF THE STUDY

The proposed study will have the following limitations
1. It is considering only one state.
2. It lacks resources and time for sophisticated analysis.
3. It may also have unexpected errors in sampling and data collection.

10. FUTURE DIRECTIONS FOR FURTHER RESEARCH

The study can be carried out on large sample size. It can also be done across industries and
across different time period. After a detailed study within the industry it can be compared with
other industries.
11. CHAPTER SCHEME
1. Introduction

2. Design of the study

3. Company Profile

4. Objective wise data analysis

5. Findings
6. Suggestions. REFERENCES

Adams, J.S. 1965. Inequity in social exchange. Advances in Experimental Social

Psychology. New York: Academics Press. pg 264-300.
Assam, A.P. 1982. Motivation and Job Satisfaction.