Report Of Khapa.docx

REWARD AND COMPANSATION report

Submitted by: Munim Namdar ( 26 ) Aimen intazar Khadija ikram Asma nazir Ayesha Akmal Submitted to: Dr. Pro Asim frooq Date: 30/3/2019 Saction: A

SHAHEEN AIR LINE

What Is Extrinsic Motivation? Extrinsic motivation occurs when we are motivated to perform a behavior or engage in an activity to earn a reward or avoid punishment. In this case, you engage in a behavior not because you enjoy it or because you find it satisfying, but in order to get something in return or avoid something unpleasant.

What Is Intrinsic Motivation? Intrinsic motivation involves engaging in a behavior because it is personally rewarding; essentially, performing an activity for its own sake rather than the desire for some external reward. Essentially, the behavior itself is its own reward.

Extrinsic vs. Intrinsic Motivation: Which Is Best? The primary difference between the two types of motivation is that extrinsic motivation arises from outside of the individual while intrinsic motivation arises from within. Researchers have also found that the two type of motivation can differ in how effective they are at driving behavior. In one study, for example, children who were rewarded for playing with a toy they had already expressed interest in playing with became less interested in the item after being externally rewarded.

elements of core compensation: Wages One key element of a compensation plan is employee classification and wages. Hourly wages are listed for non-exempt employees and salaries are listed for exempt employees. Under the Fair Labor Standards Act, employees classified as non-exempt are entitled to overtime at one and a half times their hourly rates, if they work over 40 hours in one work week.

Health Insurance Compensation plans also contain detailed information about medical, dental and vision benefits. There are usually several different plans offered for each benefit, varying in price and coverage. Differences lie in deductible amounts, percent coverage and network providers. Higher-priced plans usually have lower deductibles, higher coverage and a wider variety of providers. The compensation plan also includes rates for insuring spouses and dependents. The cost of health insurance is deducted on a pre-tax basis from the employee's paycheck.

Paid Time Off: Both non-exempt and exempt employees qualify for paid time off. Paid time off includes vacation and sick days, holidays and personal days. The compensation plan lists how many vacation and sick days the employee is entitled to and at what point the employee earns more. Most firms base the amount of vacation and sick time on years of service. For example, an employee with 5 years of service receives 3 weeks of vacation,

whereas an employee with 1 year of service receives 2 weeks of vacation. The plan will state which days are designated holidays and how many personal days the employee has.

What is a Base Pay: Base pay is the initial rate of compensation an employee receives in exchange for services. It excludes extra lump sum compensation such as bonuses or overtime pay, as well as benefits and raises. An employee's base pay can be expressed as an hourly rate or as a weekly, monthly or annual salary.

Base vs. Annual Pay: While base pay excludes supplemental compensation received in the course of employment, annual pay takes into account actual earnings over the course of the year. Annual pay may be significantly higher than the base pay since it may include bonuses, overtime, benefits or awards. Annual pay also factors in any amounts paid by an employer for a worker's medical, dental and life insurance policies. The sum of these premiums is added to the base rate, along with other forms of compensation such as overtime or bonuses, to calculate the amount of pay that was actually received in a calendar year. what are legally required benefits: Legally Required Benefits. 3 definitions. Legally required benefits include the employer's costs for Social Security, Medicare, Federal and State unemployment insurance, and workers' compensation.

4 Legally Required Benefits Every Employer Should Know 1. Unemployment Insurance Workers who lost their jobs through no fault of their own—for example, the company was downsized, restructured or shut down—are eligible to apply for unemployment. Unemployment replaces a portion of laid-off employees’ lost wages while they look for work. Employees typically receive half pay for up to 26 weeks. If your business is required to pay these taxes, you must register with your state's workforce agency.

2. Workers’ Compensation Insurance Workers’ compensation offer financial protection to employees that suffer an injury or illness at work or while performing the duties of the job, resulting in their needing medical care and/or missing work. Workers’ compensation reimburses employees for medical expenses and loss of pay. 3. Family and Medical Leave

The Family and Medical Leave Act ensures that employees can balance work and family responsibilities. FMLA allows employees to take unpaid, job-protected leave (up to 12 weeks) for significant family or medical reasons, and group health benefits are maintained. 4. Disability Insurance Similar to workers’ compensation, disability insurance supports employees that are injured or ill to an extent that they are unable to perform their job functions, providing partial wage replacement. Employers with employees located in any of the following states are required to purchase disability insurance.

Discretionary benefits: Discretionary benefits are employment benefits that are not mandated by law. They can include a range of employee benefits, such as health insurance, sick leave, maternity leave, vacation leave, pension plans, life insurance, and prescription drug insurance.

Seniority-based pay: Seniority-based pay systems are those in which the primary basis for pay increases is the employee's tenure. It should be noted that seniority-based pay systems can take into account performance, but the main factor is tenure.

Seniority Versus Performance Pay Systems: Seniority-based pay systems are those in which the primary basis for pay increases is the employee’s tenure. It should be noted that seniority-based pay systems can take into account performance, but the main factor is tenure. Some benefits of seniority-based pay include loyalty, retention, and stability of all staff members, regardless of performance levels. Performance-based pay systems consider performance as the primary basis for pay increases. As with seniority-based pay systems, other factors, like tenure, can be accounted for in a performance-based system, but employee performance, however conceptualized by the organization, is the impetus in determining pay raises.

Merit pay: Merit pay, also known as pay-for-performance, is defined as a raise in pay based on a set of criteria set by the employer. This usually involves the employer conducting a review meeting with the employee to discuss the employee's work performance during a certain time period.

Incentive pay: Compensation awarded for results rather than for time worked. Incentive pay, also known as pay-for-performance, is so-called because the prospect of financial compensation is supposed to be an incentive for an employee to remain motivated, work hard and strive for the best possible results. Commission, where sales staff get paid a proportion of each sale they make, is a common form of incentive pay.

ACT,S: Fair Labor Standards Act of 1938: The Fair Labor Standards Act (FLSA) provides workers with minimum wage, overtime pay, and child labor protections. The FLSA covers most, but not all, private and public sector employees. In addition, certain employers and employees are exempt from coverage. Provisions of the FLSA that are of current interest to Congress include the basic minimum wage, subminimum wage rates, exemptions from overtime and the minimum wage for persons who provide companionship services, the exemption for employees in computer-related occupations, compensatory time of overtime pay, and break time for nursing mothers.

Minimum Wage Rates: Minimum Wage Rates Under Section 6 of the FLSA, employers must pay covered, nonexempt employees at least $7.25 an hour.16 However, the FLSA includes several subminimum wage rates. Employers may pay lower minimum wage rates to tipped employees; workers with disabilities; new hires under the age of 20; full-time students who work in retail or service establishments, agriculture, or institutions of higher education; and high school students who are at least 16 years of age and enrolled in a vocational education program.

Overtime: Under Section 7, employers must pay covered workers at least one-and-a-half times their regular hourly wage for hours worked over 40 hours a week at a given job. Employers may choose to pay more than time-and-a-half for overtime or to pay overtime to employees who are exempt from overtime under the FLSA. Under the FLSA, overtime pay applies to hours worked in excess of 40 in a workweek. Thus, the law allows some flexibility in work hours. For example, an employer could schedule four 10-hour workdays in a workweek without asking employees to work overtime. Similarly, an employee who works a five-day workweek could work four hours one day and nine hours the other four days and not work overtime.

Child Labor: The FLSA sets minimum age requirements for youth employed outside of school hours in agricultural and nonagricultural occupations. In nonagricultural occupations, the act sets a general minimum age for employment of 16. In agricultural occupations, the general minimum age to work is 14.The FLSA includes a number of exceptions to the general minimum age requirements of the act. Under a parental exemption, a child of any age may be employed by his or her parent (or person

standing in the place of a parent) in any occupation in a business, including a farm, owned or operated by the parent. But, youth under 18 cannot be employed in mining or manufacturing, including in a business owned or operated by a parent.

performance appraisal: A performance appraisal is a systematic, general and periodic process that assesses an individual employee's job performance and productivity in relation to certain preestablished criteria and organizational objectives.

General Appraisal: It is an ongoing communication between the manager and the employee throughout the year. End of the year, they will determine if the pre-set goals and objectives were met, provide feedback and set new goals.

360-Degree Appraisal: It allows other employees to provide feedback about their experience with a specific employee. This feedback of peers can be reviewed by manager and considered for appraisal process.

Technological Performance Appraisal: It assesses technical expertise/capabilities of an employee. It figures out employee throughput and identifies how sound he/she is technically.

Employee Self-Assessment: The employee assesses himself/herself and it is finally compared with the manager’s completed assessment results. It is followed by discussions and if there are differences, manager speaks to the employee about it.

Manager Performance Appraisal: In this type, managers go through the appraisal process. It is the role of the manager that is very crucial handling both the team and the client. Manager has to satisfy the clientele without disrupting the (team’s) employee morale. Most often manager appraisal process involves feedback from the respective team members and sometimes from the client as well.

Project Evaluation Review: This is one of the best ways to identify how good an employee is at work. Rather than to wait to review an employee end of the year, it helps evaluating employees end of each project.

Sales Performance Appraisal: A sales person is judged by the goals he/she has set versus his/her results. Salesmen are closely held to the financial goals of any organization. The manager and salesperson must find out ways to achieve goals prior to which they must set realistic goals.

Goal setting: Every organization forecasts future and has standard goals to be achieved for every financial year. Goal (with respect to organizations) is nothing but how an organization should be end of the year. All the employees of the organization are educated on the goals to work towards it. The end result is evaluated based on the goals achieved.

Technical Skills: It is really important for an employee to be proficient regarding his/her technical expertise before getting handle on work. Technical skills do not just pertain to IT services alone where an employee should be sound enough in his/her particular work domain (either programming language or operating system). It spreads across every organization (w.r.t financial/banking services, one should be technically proficient handling accounts; a business analyst must be technically sound in analytics and reports, etc.)

Soft Skills: It is very essential as every employee will have to speak to clients/handle client calls, narrate the product description, walk clients through the work flow, etc.

Compensation: Compensation is a systematic approach to providing monetary value to employees in exchange for work performed. Compensation may achieve several purposes assisting in recruitment, job performance, and job satisfaction.

Forced distribution: Forced distribution is a method of employee performance appraisal that many companies use. We also call it the forced distribution method, stacked ranking, or bell-curve rating. It is a rating system that employers use to evaluate their workers. The forced distribution method has some advantages and disadvantages. Although forced distribution is extremely popular among companies, it is somewhat controversial among HR experts.

Behavioral system: In this kind of system if employees behave well in airlines with the consumers they get different kind of bounces and perks based on there qualities.

Goal orientation: Goal orientation is the degree to which a person or organization focuses on tasks and the end results of those tasks. Strong goal orientation advocates a focus on the ends

that the tasks are made for instead of the tasks themselves and how those ends will affect either the person or the entire company.

Person focused pay: Person focused pay programs are not for all organizations or all positions. The model implies that employees need to move away from viewing pay as an entitlement. Person focused pay programs treat compensation as a reward earned for acquiring and implementing job relevant knowledge and skills.