EMPLOYEE RECOGNITION POLICY

(Released with effect from December 2001) Objective: To motivate and enhance employee performance through appropriate recognition. Scope: This policy covers the following forms of recognition. Unconditional recognition: This is to reinforce the basic worth of an employee as a human being. Wishing the employee on his/ her Birthday or Anniversary and presenting a token gift (like a card or an invitation from the manager for a cup of tea in his cabin, etc.) and giving a phone call to the family members are some examples of unconditional recognition. Conditional recognition: This category bases recognition on certain contributions by the employee to the organizational goals and objectives. Such recognition is further divided into the following types

Immediate: This is a one time recognition by way of an appreciation letter, personal or public praise, a pat on the back, etc. 2) Career linked: Such recognition has a long-term implication for the employee. It includes examples such as nominations for self-development courses, higher responsibilities, etc.
1)

The following table shows a list of what and how contributions can be recognized in the organization. This is not exhaustive but an indicative list. What may be recognized A. Successfully implemented creative idea leading to a breakthrough in the form of a solution to a problem or a new opportunity for the organization. In other words: an innovative solution. Evidence of Form/method of contribution recognition Out of the box 1. Praising the individual thinking and in the presence of the implementing the team members and idea successfully publicizing the same in the house magazine 2. Nominations from each department to be collected at the year end and top management to decide on Breakthrough Awards to be given to the most creative contributors. 3. Provide external opportunities for creative expressions in the form of paper presentation, publishing the work, etc. with costs paid by the company. When to recognize 1. Every quarter in the departmental meetings 2. In the beginning of a financial year

3. As soon possible.

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B. Sharing knowledge Positive feedback of 1. An appreciation letter and learning with the colleagues. given to the individual colleagues through by HRD. training or 2. Publicizing in the presentation.. training newsletter-TRAINHO. C. Developing Acknowledgement by 1. An appreciation letter subordinates the subordinate or from the HOD colleagues recognizing the individual. 2. Invite him to be a trainer.

1. At the end of such sessions. 2. Every quarter. 1. As soon possible. as

D. High degree of Ratings in the internal customer Quarterly Audit of satisfaction Internal Customer Satisfaction E. Doing a job in record time and setting new standards of excellence Exceeding earlier standards, specially in a cost effective way

F. Doing a job in a Significant cost more cost effective or time saving. efficient way, even if it is based on a known idea or approach.

or

G. Exceptional team- Consensus in the work monthly departmental meeting

2. Special mention and credit at the time of Performance Appraisal. Recognize the department Quarterly. or individual by way of a letter and a desk item, which could be rotated to the eligible department every quarter. 1. Personal credit by way 1. Quarterly of appreciation letter given by the HOD in presence of other team members, declaring him the Best Employee of the (last) Quarter. And highlighting it on the notice boards. 2. As soon as such 2. Give higher project comes up responsibilities by assigning special projects that require his skill. 3. Whenever 3. Seek the individuals requirements arise opinion in important decisions 1. Declaring the individual 1. Quarterly a Cost Champion and highlighting him on the Intranet and on the notice boards. 2. Nominating the person for self-development course. Circulate a memo to all Every month team members appreciating the employee(s). Recognize the team.

Special Awards: A. Best Employee of the Year Criteria- The employee declared thrice as best employee of the quarter in a financial year should be appreciated by way of a certificate presented in the presence of both, his family members as well as the team members B. Best Motivator of the Year Criteria- The HOD of the department issuing maximum number of appreciation letters shall be recognized by the P(T) every year. Some Guidelines: Managers must take care that the selection process is fair and transparent. They must understand that recognition is a way of life and look for areas to appreciate. A pat on the back, friendly greeting, smiles, praising in office get together, e-mail are additional ways of recognizing contributions of the employees. Such methods should be used on a day to day basis. As the business situation becomes more and more challenging the practice of employee recognition will become a critical success factor. The basic principle is that employees feel like repeating the behaviour and actions which bring them recognition. In this context, even improvements need to be recognized, not just final results. Standard Structure of Appreciation Letter In order to ensure the effectiveness of any Appreciation Letter that is issued, the structure as given in Annexure I should be followed.

Vice President (HR)

EMPLOYEE RECOGNITION POLICY

Annexure I Standard Structure of Appreciation Letter

To

: (Name) ..(Designation) ..(Dept) ...(Location)

From : .(Designation) Date : ...

Sub : Appreciation
Para I We would like to place on record our appreciation for.. (give one sentence which captures the essence of the achievement e.g. the significant saving in cost of printing stationary you have achieved in the last quarter). Para II (Give your observation on the process and actions adopted by the recipient e.g. You made a very good diagnosis on the cost and consumption of different type of printing stationary in use in our department and concentrated on reducing the consumption of high cost stationary through substitution, without sacrificing quality). Para III (Give the achievement in specific terms and the value of this achievement e.g. Your actions have resulted in a saving of approx. Rs.15,000/- in the first quarter itself and should result in an annual saving of Rs.60,000/-. Moreover, by spreading this approach throughout the organization, the savings can be very sizeable). Para IV We hope this achievement will lead to more such contributions from you in future. With best wishes,

Cc

: Functional/Unit Head HRD Personal file