{Company Name} Incentive Plan Policy

Jan 2011

Policy Name: Incentive Plan Policy Number: HR005

Effective Date: 01/01/2011 Edition: One

Table of contents
8. Approvals. 9. Appendixes. 10 11

1. Definitions

12!HR blo"#$ot com %el &'2()&(*)*)***2 +mman ( ,ordan

Policy Name: Incentive Plan Policy Number: HR005

Effective Date: 01/01/2011 Edition: One

1.1 Senior managers: Regardless the actual titles, the senior manager within {Company Name} accountable for establishing the direction of {Company Name} b participating in its strategic plan, and overall ob!ectives. 1." #anagers: Regardless the actual titles manager within {Company Name} accountable for directing a function and$or has a supervisors reporting to him$his. 1.% Supervisors: Regardless the actual titles, supervisors are individuals accountable for directing the emplo ees performing the actual wor& of a function. 1.' (erformance measures: ob!ectives assigned to senior managers, managers, and supervisors. 1.) *ncentive scales: (redefined degrees, an emplo ee can get a specific degree achieving a predefined performance measure.

2. Scope:
+his polic and procedure applies to all ,ull-+ime emplo ees in {Company Name} .

3. Policy
*t is the polic of {Company Name} to provide competitive incentives to motivate its emplo ees to do their best and align their contributions to help {Company Name} in achieving success. *ncentive plan polic will be implemented s stematicall on e.uitable and merit basis.

4. Guidelines
12!HR blo"#$ot com %el &'2()&(*)*)***2 +mman ( ,ordan

Policy Name: Incentive Plan Policy Number: HR005

Effective Date: 01/01/2011 Edition: One

'.1 All performance measures and incentive scales should be approved before 1 st of /anuar . '." All performance measures: '.".1 Should be specific, measurable, achievable, realistic, and time-frame. 0S#AR+ #easurers1. '."." Should not be more than 8 eight measures. '.".% Should not be less than ' four measures. '.".'Should not be submitted before an emplo ee gets inputs from his$her manager. '.% An emplo ee !oining after 1st of /anuar will be eligible to an incentive plan polic as a percentage from date of hire. '.' +he maximum incentive entitlement of an eligible emplo ee cannot exceed four gross salaries. An exceptions will need to be approved b the 2eneral #anager. '.) All *ncentives will be calculated based on the gross salar of the previous fiscal ear. '.3 *n case of emplo ee resignation $ termination, he will not be eligible to the incentive plan polic . 4xceptions to this polic will need to be approved b the 2eneral #anager. '.5 Senior managers should submit their performance measures before 1 st of october. '.8 #anagers should submit their performance measures before 1 st of november. '.9 Supervisors should submit their performance measures before 1 st of december. '.16 All performance measures should be approved after one wee& from date of submitting them. '.11 *ncentive scales determined at the same time of approving performance measures. '.1" *ncentive plan polic forms should be saved in a master incentive file in human resources department, and copies published to eligible emplo ees.

4.14 Incentive Payment

12!HR blo"#$ot com %el &'2()&(*)*)***2 +mman ( ,ordan

Policy Name: Incentive Plan Policy Number: HR005 +he formula for calculating an incentive pa ment is: *ncentive (a ment 7

Effective Date: 01/01/2011 Edition: One

4mplo ee 2ross Salar 8 compan performance rate 8 emplo ee performance rate 9here is:
4.14.1 Employee gross salary

:asic salar ; transport allowance ; special allowance ; cash allowance

4.14.2 !ompany performance rate:

+o determine the compan performance rate we should predefine the following: 1.+he <ompan performance measure or measures and the related incentives scale. ". +he actual compan performance. +he compan performance rate should not exceed the following:
"ctual Performance E#ceeds E#pectation 1 4.14.3 Employee performance rate: "ctual Performance $eets E#pectation .' "ctual Performance %elo& E#pectation (

+o determine an emplo ee performance rate we should predefine the following: 1. An emplo ee performance measures and the related incentives scale. ". +he actual emplo ee results rate in related to performance measures. %. +he actual emplo ee performance in related to performance appraising. 4mplo ee performance rate 7 Appraising Rate ; Results Rate Apprising rate should not exceed the following: "ppraising *ate
" 1 % .+' ! .' D .2' ) (

#aximum results rate should not exceed the following: Grades *esults *ate
1 "nd 2 3 3 "nd 4 2 ',+ 1

'. "ccounta-ility

12!HR blo"#$ot com %el &'2()&(*)*)***2 +mman ( ,ordan

Policy Name: Incentive Plan Policy Number: HR005 ).1 :oard of =irectors is accountable for:

Effective Date: 01/01/2011 Edition: One

).1.1 Approving the compan performance measure$s and the related incentives scales )." Senior management committee is accountable for: ).".1 Setting the compan performance measure$s and the related incentives scales. ).% 2eneral manger is accountable for: ).%.1 Approving all senior managers performance measure$s and the related incentives scales. ).' Senior mangers are accountable for: ).'.1 Setting their performance measure$s and the related incentives scales. ).'." Approving all managers performance measure$s and the related incentives scales. ).) #angers are accountable for: ).).1 Setting their performance measure$s and the related incentives scales. ).)." Approving all Supervisors performance measure$s and the related incentives scales. ).3 Supervisors are accountable for: ).3.1 Setting their performance measure$s and the related incentives scales. ).5 >uman Resources are accountable for: ).5.1 4nsuring the compliance of this polic . ).5." (ublishing all necessar forms.

.. Procedures
12!HR blo"#$ot com %el &'2()&(*)*)***2 +mman ( ,ordan

'

Policy Name: Incentive Plan Policy Number: HR005

Effective Date: 01/01/2011 Edition: One

!ode "ccounta-le

Procedure 3.1.1 Approve the compan performance measure$s and incentive scales. 3.1." Submit the compan performance measure$s and incentive scales to senior management committee.

3.1

%oard of Directors

3."

Senior $anagement !ommittee

3.".1 Sets the compan performance measure$s and incentive scales to general manager.

3.%.1 Receive an incentive plan form from >R =epartment.

3.%

Supervisor/

3.%." ,ill an incentive plan form with participation with our emplo ee. 3.%.% Submit an incentive plan form to >R =epartment.

3.'

Eligi-le Employee

3.'.1 (articipate with our supervisor in filling an incentive plan form.

3.).1

Send incentive plan forms supervisors. ?eep incentive plan forms in a master file. =istribute the previous incentive plan forms at apprising date.

3.)

)* Department

3.)." 3.).%

@ ,or procedures purposes supervisor defined as: an person supervise an eligible emplo ee.

+. 0orms
5.1 *ncentive plan form. (See Page Number 9 )
12!HR blo"#$ot com %el &'2()&(*)*)***2 +mman ( ,ordan

Policy Name: Incentive Plan Policy Number: HR005

Effective Date: 01/01/2011 Edition: One

5." 4mplo ee apprising form. (See Policy Number HR007:Performance Appri ing)

Incentive Plan 0orm

Employee 1um-er 2----------3 Department 4 Division ,,,,,,,,,,,,,,,,,,,,,,,,, 12!HR blo"#$ot com %el &'2()&(*)*)***2 +mman ( ,ordan

Policy Name: Incentive Plan Policy Number: HR005 Employee 1ame ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,
Performance $easure %aseline Performance

Effective Date: 01/01/2011 Edition: One Supervisor 1ame ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

"ctual Performance Incentive

Predefined Scales Performance Incentive

565"7
I1!E15I8E S!"7ES

Employee Signature ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,, Supervisor Signature ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,, Employee Signature ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,, Supervisor Signature ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Date ,,,,,,,,,,,,,,,,,,,, Date ,,,,,,,,,,,,,,,,,,,, Date ,,,,,,,,,,,,,,,,,,,, Date ,,,,,,,,,,,,,,,,,,,,

"!59"7 I1!E15I8E

:. "pprovals

1ame

Signatures

Dates

12!HR blo"#$ot com %el &'2()&(*)*)***2 +mman ( ,ordan

&

Policy Name: Incentive Plan Policy Number: HR005

Effective Date: 01/01/2011 Edition: One

#r. ABameC 2eneral #anager

#r. ABameC Assistant 2eneral #anager

#r. ABameC Assistant 2eneral #anager 0#anufacturing1

#r. ABameC ,inancial #anager

#r. ABameC *nternal Auditor

#r. ABameC Sales #anager

#r. ABameC A+itleC

;. "ppendi#es

Sample Incentive Plan 0orm

Employee 1um-er 2%3%3 Employee 1ame ABameC Department 4 Division >uman Resources Supervisor 1ame ABameC 10
12!HR blo"#$ot com %el &'2()&(*)*)***2 +mman ( ,ordan

Policy Name: Incentive Plan Policy Number: HR005

Effective Date: 01/01/2011 Edition: One

Performance $easure

%aseline Performance

Predefined Scales Performance '6D ; "1D - '6D 11D - "6D 16D and :elow :elow 1)D Incentive (.3( 6."6 6.16 6.66 (.2( 6.16 6.6) 6.66 (.3( 6."6 6.16 6.66 (.2( 6.16 6.6) 6.66 2.1'< (.;'< 2'< 3'<

"ctual Performance Incentive

*ncreasing +raining (articipation Rate

16D

(.2(

=ecreasing *n!uries Rate

%5D

1)D - "'D ")D - %6D #ore than %6D :elow 6.8D

(.('

=ecreasing +urnover Rate

1."D

6.8D E 6.99D 1.66D - 1."D #ore than 1."D :elow "D

(.2(

=ecreasing Absence Rate

".)D

".66D E "."'D ".")D E ".)D #ore than ".)

(.1(

5otal

1.((

(.'' Date ,,,,,,,,,,,,,,,,,,,, Date ,,,,,,,,,,,,,,,,,,,, Date ,,,,,,,,,,,,,,,,,,,, Date ,,,,,,,,,,,,,,,,,,,,

I1!E15I8E S!"7ES

Employee Signature ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,, Supervisor Signature ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,, Employee Signature ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,, Supervisor Signature ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

"!59"7 I1!E15I8E

12!HR blo"#$ot com %el &'2()&(*)*)***2 +mman ( ,ordan

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