Motivation and Reward System
Motivation and Reward System
EMPLOYEE
CATEGORY/
INCENTIVE
PIECE RATE
INCENTIVE
BONUS ( For
Maintenance
Workers only)
PRODUCTIVITY
LINKED BONUS
NGO
NIE
DIRECT IE
INDIRECT IE
Piece Work %
Notional Time wages
( calculated at Pmin)
-30 days (Basic Pay + DA) for 25 % PWP at the aggregate board
level
-Provision for variable addition of 1 day of basic salary per 2 %
increase in the % PWP at the aggregate level, provided that the
first increase of 1 days salary is contingent upon an increase of
4 % PWP at the aggregate level
- Maximum limit Rs 3500 for 30 days and Rs 4667 for 40 days
OLD
BASIC
4000
OLD DP
2000
OLD
CCA+TA
400
MIN BASIC
Before 6th Pay
Commission
47%
OLD DA
DA
27%
ATTENDANCE
26
TOTAL DAYS
31
SUNDAY
HOLIDAY
LEAVE
PWP
50%
PW PROFIT
MBA
7440
GRADE PAY
GP
2400
BASIC
BA
7440
MB
9840
BASIC+GP
9840
TA
TA
1600
OTH
39
OTB HRS
OTBH
26
DOT HRS
DOTH
13
TOTAL OT HOURS
TW
BA/(N-S-H)
9840
HOLIDAY PAY
HP
BH/(N-S)
LEAVE PAY
LP
BL/(N-S-H)
HRA
30 % B
2952
DA
DA
27 % (B+TA)
3088.8
NET PAY
NP
TW+HP+LP+HRA+DA+TA
17480.8
HRA
OT CALCULATIONS
DAY WORK
PIECE WORK
30
20
OT RATE
OTR
(OLD BASIC+DP)/200
INC OT
RATE
IN.OT
R
NA
DOT RATE
DOR
(OLD DA+CCA)/200
13.8
NA
OTB RATE
OTBR
(OLD
BASIC+DP+2*DA)/200
58.2
1.25*[(OLD BASIC+DP)
+2*DA]/200
65.7
OT PAY
OT
OTROTH
1170
OTROTH
780
INC OT PAY
IN.OT
NA
IN OTROTBH
DOT
DOT
DORDOTH
179.4
DORDOTH
BONUS OT
OTB
OTBROTBH
1513.2
OTBROTBH
1708
NET OT
NOT
OT+DOT+OTB
2862.6
OT+IN.OT+DOT+OTB
2488
(OLD TW+OT)0.5
2390
NP+NOT+PW PROFIT
22359
(B-MB)/200
GROSS PAY
GROSS PAY
GP
NP+NOT
20343.4
PW PROFIT
PIECE WORK PROFIT
=(OUTPUT HOURS / INPUT HOURS 1) 100 %
INPUT HOURS
= NO OF DAYS WORKED 8+ OT HOURS -13 ( for four Saturdays)
EXAMPLE OF PW BOOKING
GANG WORKERS CARD
HVF
MONTH
CARD NO
SECTION
WORK ORDER NO
WARRANT NO
4110433011
EXTRACT NO
GANG NO
001
ARTICLE
172.40.332
RATE FORM NO
172.40.332
PINION
OPERATION NO
NO ORDERED
SMH /OPN
TOT SMH
( for accepted
quantity)
50
100
0.75
75
60
100
2.5
250
EXAMPLE OF PW BOOKING
SUMMARY SHEET
Sl No
Gang
No
Card
No
Work
Order
No
Warrant
No
Estimate
No
Qty
Hrs
Booke
d
001
xxxxxx
abcd
mnop
1234
100
325
001
yyyyyy
efgh
qrst
7890
80
350
625
NGO
NIE
DIRECT IE
INDIRECT IE
[BR Ws SEF
SAF] + [BRWi
IEF IAF]
Based on Key
Performance
Indicators
(KPI)
Based on Key
Performance
Indicators (KPI)
Based on Key
Performance
Indicators (KPI)
Based on
average monthly
performance
Based on average
monthly performance
Based on
attendance,
consistency of
performance and
achievement of
factory production
target
Based on
average
monthly
performance
DIRECT IEs
Monthly Incentive
INDIVIDUAL COMPONENT
SECTION COMPONENT
BR Ws SEF SAF
BR Wl IEF IAF
Where
BR = Base Rate of variable pay
+
Ws=Weightage for Section parameters
SEF =Section Efficiency Factor
SAF=Section Achievement Factor
Where
BR = Base Rate of variable pay
Wig=Weightage for Individual parameters
IEF = Individual Efficiency Factor
IAF= Individual Achievement Factor
Example
25 % 0.75 1.3 0.9
SECTION COMPONENT
COMPONENT
EXPLANATION
SECTION
EFFICIENCY FACTOR
(SEF)
SECTION
ACHIEVEMENT
FACTOR (SAF)
1- {
48 hours
INDIVIDUAL COMPONENT
COMPONENT
INDIVIDUAL
EFFICIENCY FACTOR
(IEF)
INDIVIDUAL
ACHIEVEMENT
FACTOR (IAF)
EXPLANATION
DIW / DGWs efficiency rating for the month
Factorys efficiency rating for the month
1- {
SECTION COMPONENT
COMPONENT
EXPLANATION
SECTION
EFFICIENCY FACTOR
(SEF)
SECTION
ACHIEVEMENT
FACTOR (SAF)
1- {
48 hours
SECTION COMPONENT
COMPONENT
EXPLANATION
SECTION
EFFICIENCY FACTOR
(SEF)
SECTION
ACHIEVEMENT
FACTOR (SAF)
1- {
48 hours
Attendance
Step 2 : Calculation
Consistency Factor
Consistency Factor
PROPOSED INCENTIVE
SCHEME
48
234
208
4000
BASE RATE
30 %
NTW
4500
IMPROVEMENT IN EFFICIENCY
56 %
PW PROFIT
50 %
SEF
1.56
PW EARNING
2250
IEF
1.56
OVERTIME HOURS
26
SAF
3047
IAF
16797
Ws
0.75
PLB
285
Wi
0.25
17082
MONTHLY INCENTIVE
4738
16238
ANNUAL INCENTIVE
844
17082
NGO/ PRODUCTION
SHOP
TOOL ROOM
PLANNING &
CONTROL
MATERIAL
MANAGEMENT
ENGINEERING
OFFICE
OUTPUT
PRODUCTION
SECTION
( DIRECT IEs)
ENGINEERING
STORES
OFFICE
QC
ADMINISTRATION
What is KPI
KPI is a performance measure that enables the organisation to determine
whether or not they are meeting their objectives
Applicable to
- Indirect IEs
-NIEs
-NGOs
LOWEST
100-90%
Final
90-80%
80-70%
70-60%
<60%
2.X ( for
90-80 %)
Performance
Index achieved by
the individual in
the month
Incentive (%)
1-1.9
20
2-3.9
15
4-5
10f
EXAMPLES
SECTION : PRODUCTION & TOOL ROOM
KEY RESULT AREA
WEIGHT
PRODUCTION
REPORT SHOWING
OUTPUT AND
WARRANTWISE
BOOKING
ACHIEVEMENT OF SECTION
EFFICIENCY TARGETS
0.5
REJECTION
ANALYSIS, QUALITY
OF PRODUCT
MANYFACTURING
PROCESS
0.2
WORK IN PROGRESS
PERCENTAGE OF WARRANTS
CLOSED AGMARKSAINST
PREDETERMINED BENCH
0.15
COST REDUCTION
0.15
EXAMPLES
SECTION : ADMINISTRATION ( BILLS)
KEY RESULT AREA
WEIGHT
PERFORMANCE
MONITORING
0.3
0.3
GRIEVANCE
REDRESSAL
0.2
AUDIT REPLIES
AGAINST INTERNAL
AND TEST AUDIT
0.1
INCOM TAX
RECOVERY AND
RETURN
0.1
NAME OF
AWARD
INSTITUTED
BY
ELIGIBILITY
DETAILS
SODET AWARD
FOR R & D
INNOVATION
DODET ( SOCIETY
FOR DEFENCE
TECHNOLOGISTS)
ENGINEERS /
SCIENTISTS OF
THE MEMBER
ORGANISATION
MOD ( DEPTT OF
DEF PROD) AWARD
FOR EXCELLENCE
AMONG
ORDNANCE
FACTORIES AND
DEFENCE PSUs
MINISTRY OF
DEFENCE
OFB
A)
INSTITUTIONAL AWARDS
1. FOR EXCELLENCE IN PERFORMANCE
2. FOR BEST PERFORMANCE IN EXPORTS
B)
DIVISION/ FACTORY AWARDS
C)
GROUP/ INDIVIDUAL AWARDS
1. IMPORT SUBSTITUTION
2. DESIGN EFFORT
3. INNOVATION
DONATED
BY/YEAR
ELIGIBILIT
Y
DETAILS
PURPOSE
SANTU
SHAHANEY
MEMORIAL
SHIELD &
PRIZE
Smt Nirmala
Shahaney w/o
Late Santu
Shahaney/ 1966
All Group A
( IOFS)
officers
( excluding
GM)
O P GUPTA
BEST
MANAGER
AWARD IN
A&E GROUP
OF
FACTORIES
Shri OP Gupta,
Ex Addl DGOF /
1996
All Group
Managers
( excluding
GM)
Rolling Shield,
Certificate
from DGOF &
Chairman.
A cash award of
Rs.3000.
Contribution towards
streamlining of process/
design of a new equipment
and maximising production,
consistent with lowest
accident frequency.
GEN J N
CHOUDHURY
SHIELD
Gen J N
Choudhury, Ex.
Chief of Army
Staff / 1964
All employees
and JWMs
A running shield.
Replica of the shield
and Commendation
certificate from DGOF
& Chairman. A cash
award of Rs 3000 and
two awards @ Rs 1500
each along with
certificate
Increase of productivity by
application of such idea(s) as
quantifiable by savings
actually made or considered
possible in the utilisation of
men, machines, materials and
resources.
PURPOSE
S S JAUHARI
BEST GENERAL
MANAGER
AWARD
Shri S S
Jauhari, Ex
Addl DGOF/
1991
General
Manager
AYUDH AWARDS:
AYUDH RATNA
AYUDH BHUSHAN
AYUDH VIR
AYUDH SRI/DEVI
OF
BOARD/1999
All officers,
staffs and
workmen
BEST ORDNANCE
FACTORY
EFFICIENCY
TROPHY
Shilpi
Sansad, GSF,
Cossipore/19
63-64
All OFs
A running shield.
Replica
DONATED
BY/ YEAR
ELIGIBILI
TY
DETAILS
PRIME
MINISTERS
SHRAM
AWARD
Ministry of
Labour/ 1985
( Shram Vir
National Award
since 1983)
All workmen
of Ordnance
Factories
Cash award of
(i)
Rs 200000.
(ii)
Rs 100000
(iii)
Rs 60000
(iv)
Rs 40000
Certificate, Railway pass
AWARD OF
PRESIDENTS
FIRE SERVICE
MEDAL
President of
India
Fire Service
Personnel
PURPOSE