Productivity Linked Incentives & Motivational Activities
Productivity Linked Incentives & Motivational Activities
Productivity Linked Incentives & Motivational Activities
Incentives
&
Motivational
Activities
Presented By:
Chandra Prakash
Haresh Pal Singh
Jashoda Goyal
Rohit Johari
Sandeep Joshi
Date: 1st Feb.2005
Swati Gupta
What is Productivity?
Higher G.D.P
Variable Component
Wage increase for the year based on
Profitability Model
Productivity Model
Combined Model
Profitability Model
Establish the cap to the bonus
According to profit levels
An Annual Increment
Variable Component
A variable productivity payment to be determined
Formulation
T=A+P
Where;
T = wage increase
A = annual increment
P = variable productivity payment
Example:
Year 1 (T=A+P)
If basic wage = 1000 per month,
Annual increment (A) = 2% and Productivity
payment (P) = 4%,
Basic wage + A = 1000 + 2% (1000) = 1020 (built
into basic wage).
P = 4% x 1000 x 12 months = 480 per annum
Year 2:
(T=A+P)
If basic wage = 1,020; A = 2% and P = 4%
Basic Wage + Annual Increment (A) = 1,020 + 2%of
(1,020) = 1,040 per month
Productivity payment (P) = 4% x 1,020 x 12 months =
489.60 per month
Annual Variable Productivity Payment at end of year
2:
P for year 1 480.00
P for year 2 489.60
Cumulative for 2 consecutive years 969.60
Combined Model
Annual
Profit (in Months of Basic Wage
mn.)
>1.49 1 1 1.25 1.5 1.75 2
1-1.49 .75 .75 1 1.25 1.5 1.75
.70-.99 .50 .50 .75 1 1.25 1.5
.50-.69 .25 .25 .50 .75 1 1.25
< .50 0 0 .25 .50 .75 1
Total 38,400