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Rational Promotional System

RPS is liberal modern method of organization in application in SRS company in order to offer a fair and Rational Promotional System to employee.The purposes of RPS are to find out the most functional middle way between a hierarchical system, individual brightening and creativity to guarantee the efficiently of an organization. The RPS method consists on taking the record of the profit generated by an individual to an organization. Reserve For example, a seller A of computers is generating an after tax profit margin in selling computer of ProMarginA = 1 lakhs rupees of computer. Its contribution (ContA) to the company will be estimated to a ContA Ri * ProMarginA as a seller B selling ProMarginB = 0,5 lakhs has a contribution of Ri * ProMarginB.

Ri is called the individual reserve system and will be defined latter.

The seller has a reserve (ResA [ year n] ) defined by ResA[year n] = ResA[year n-1] * i + ContA - (PersonalPayement A) - SpendingDecidedByA

i = percentage of grow due to the placement of ResA[year n-1].

In clear, la reserve of the seller A of the year n is equal to the reserve of the seller A on the year n-1 increase of the profit on the placement of this sum plus its contribution during the year n plus its contribution during year n minus its salary, honorary, welfare tax on salary and minus spending on the name of the company. This last point is submitted to internal regulation in the company.

The reserve is the fundamental point of RPS has it keeps a track of the contribution of each salary man to the wealth of the company. Right list acquire according to the reserve level The next point is to define the right of employee according to its reserve. In supposing that the average contribution of employee is 100 000 rupees a year.

Reserve level Payment from reserve  Special right 
< 100 000 Rs 100 % with a maximum of 100 000 Rs -
100 000 < 1 000 000 Rs 100 000 Rs + 30 % * (Reserve - 100 000) Rs -
1 000 000 Rs < 10 000 000 Rs 370 000 Rs + 10 % * ( Reserve 

- 370 000 ) 

Job guarantee if the reserve stay upper then 1000 000 Rs. 

Right to spent 30 % of the reserve a year in its tool work without authorization. Take new employee and pay them with his reserve

10 000 000 Rs < 50 000 000 Rs 10 % Reserve As right equal to share holder which means take up two year vacation break, take full independence from the management and start project of its own
More then 50 000 000 Rs 10 % Reserve Use its reserve to create an independent company hold at 50 % by its initial company (IRE or EASTERN TECHNOLOGY) and 50 % by himself
While getting retired at the age at 55 years, the collaborator has the right to receive 7 % of the reserve a year as an allocation.

Promotion according to the reserve

 The reserve is a record of the contribution of the individual in the company and its level will determine its condition in the company. RPS is a automatic promotional System which reduce management to an administrative task. At 1000 000 Rs level, manager can't fire out employee.

At 10 000 000 Rs reserve, employee can take vacation and stop working for a long time if they like and stiff receiving 10 % of their reserve a year.

RPS is transparent in the sense of automatic. The tradition management in which manager increases salary depending of grading is not transparent because it is not automatic.


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