This report summarizes an analysis of incentive plans for two Indian telecommunications companies, BSNL and RCOM. It was submitted as part of a post-graduate management course. The report defines incentives, classifies different types of incentives, and discusses why incentives are important for motivating employees and improving productivity. It then outlines some specific incentive plans for BSNL and RCOM, such as health benefits, job security provisions, and performance-based bonuses. Finally, it compares aspects of how the two companies design and implement their incentive programs, and concludes that effective plans must be tailored to each company's goals and employees' needs.

1. Employee
This report is submitted as part of project of the course ‘Employee’, under the
guidance of Prof. Sonika Sharma, in Post Graduate Diploma In Management at
IILM Graduate School of Management, Greater Noida.

2. Group 1
• Submitted by:-
 Abhigyan Singh
 Anshu Jha
 Deepak Kumar Singh
 Kishore Debnath
 Mansi Singh
 Priyam Mathur Submitted to:-
 Uday Prof. Sonika Sharma

3. What is Incentive?
• An incentive is something that motivates an individual to perform an
action. The study of incentive structures is central to the study of all
economic activities (both in terms of individual decision-making and in
terms of co-operation and competition within a larger institutional
structure).

4. Classification
Remunerative
Incentive
Moral
Incentive
Coercive
Incentive
Natural
Incentive

5. Why incentives are important?
• Opportunity for self development
• To improve work-flow, work methods & man – machine relation ship
• Incentives are the sound technique of improving productivity
• To obtain desired result
• Help to improve discipline and industrial relation

6. Incentives plan for BSNL
• Scheme for old age employee
• 3-4 years – 4%
• 4-6 years -8%
• Indian telephone card
• Job transfer to successor
• Job Security
• Key Man Incentive Plan

7. Incentives plan for RCOM
• Direct financial benefit: Illness/health/life insurance; allowances
(clothing, housing, etc.), subsidies, gain sharing etc
• Indirect financial benefit: subsidized meals/clothing/ accommodation/
transport, scholarships, tax breaks; etc
• Flexible schedules: part-time/ temporary work; sabbatical, study leave,
work from home, holidays, vacation, etc.
• New incentive scheme: from 2013 RCOM introduced a new incentive
scheme to give their worker all the incentives quarterly.
• Share based payments: The Company currently uses a number of
equity settled share plans to grant options and shares to its directors
and employees

8. Incentives practiced in BSNL &
RCOM
• RCOM install their incentive plan as per consultation with workers &
union where as BSNL’s incentives plan is made by top level
management
• To implement incentives plan effectively minimum wages should be
guaranteed to every workers in BSNL but in RCOM they use to set on
the basis of performance
• Every plan is reviewed periodically in RCOM but not in BSNL
• They try make the plan in such a way so that it will not affect the cost of
operation in both the organization
• Both BSNL and RCOM make their incentive plan flexible so that it can
adopt any changes in future later on

9. Forms of incentives entertained by both
companies
Bonuses
• incentive payment that is given to an employee beyond his
normal standard wages
• generally given at the end of the year & does not become part of
the basic pay
Merit pay
• based pay on how well an employee done the assigned job
• Higher the performance Greater will be the reward
Commission
• paid on the basis of sales made by the employee

10. Conclusion
• An effective incentive plan is intended to influence the behavior of
employee, hence it is extremely important for management to define the
desired behaviors to achieve the firm’s goal prior to implementation of
the incentive plan
• It vary a lot by industry, and even within industry, companies decide the
incentive based on their goals of the company and the need of the
employee. There is no correct incentive plan for any specific industry or
a company.

11. Thank You