Question

Question 7

a) If you were the Chairman of a professional sports team in your country, what different types of incentives would you offer to the players in addition to their flat salary?

Answer 1

Incentives are intended to make a positive motivational influence on the persons who receive them to perform better. These helps them to improve their performance.

The chairman of the Professional sports team can consider broadly two types of Incentives:

• Financial Incentives
• Non-Financial Incentives

Financial Incentives:

• Allowances - Allowances like Dearness Allowance, House Rent Allowance, Outstation allowances will take care of additional cost burdens on players and will ensure palyers are not disoriented from their performance because of these costs.
• Performance based Bonus: Payment of additional money to their flat salaries and linking this additional to their performance motivates the players for putting in best efforts.
• Profit or Revenue sharing: Offering distribution of profits or revenues from sale of tickets or sponsorships among players motivates them to play better and which may ultimately increase the revenues or the profit ofthe sports team or organisation representing them. This would be one of the best team incenntives.
• Retirement benefits: The period of careers of sportsmen is less compare to other professions. Providing benefits like Gratuity, Pension or Provident fund benefits may attract better talent to the sports team.
• Perquisites: Offering facilities like accommodation, Medical and educational facilities, recreational and transportational facilities will attract best talent and help in retaining them.
• Commission: Offering commission linked to winnngs of the team is mutually beneficial.

Non-Financial Incentives:

• Recognition & Status: Timely recognition and appreciation of their performance is one of the non-fiancial motivator for the players.
• Opportunity of progress or Career advancement will facilitate retention of talent for long time.
• Chance to participate in management.
• Pride of work.
• Training and improvement programs.

The Chairman should consider and weigh these incentives before deciding type and sub-type of incentives against the following objectiives:

• Increase in the performance of team and individual players
• Retention of the players
• Attracting new talent
• Rewarding high performers
• Encouraging team work
• Making objectives of the team clearer
• Ensuring communication easier
• Sustainability.