ASSIGNMENTSUBJECT : HUMAN RESOURCE PLANNING AND DEVELOPMENT

TOPIC : HR STRATEGY OF IBM

RIYAS.PK

NO :38

INTRODUCTION TO THE COMPANY

International Business Machines Corporation (NYSE: IBM) or IBM is an American multinational technology and consulting corporation headquartered in Armonk, New York, United States. IBM manufactures and sells computer hardware and software, and it offers infrastructure, hosting and consulting services in areas ranging from mainframe computers to nanotechnology. As of September 2011, IBM is the second-largest publicly traded technology company in the world by market capitalization. The company was founded in 1911 as the Computing Tabulating Recording Corporation through a merger of four companies: the Tabulating Machine Company, the International Time Recording Company, the Computing Scale Corporation, and the Bundy Manufacturing Company. CTR adopted the name International Business Machines in 1924, using a name previously designated to CTR's subsidiary in Canada and later South America. Its distinctive culture and product branding has given it the nickname Big Blue.

In 2011, Fortune ranked IBM the 18th largest firm in the U.S. as well as the 7th most profitable. Globally, the company was ranked the 31st largest firm by Forbes for 2011. Other rankings for 2011 include #1 company for leaders (Fortune), #2 best global brand (Interbrand), #1 green company worldwide (Newsweek), #12 most admired company (Fortune), and #18 most innovative company (Fast Company). IBM employs more than 425,000 employees (sometimes referred to as "IBMers") in over 200 countries, with occupations including scientists, engineers, consultants, and sales professionals.

IBM holds more patents than any other U.S.-based technology company and has nine research laboratories worldwide. Its employees have garnered five Nobel Prizes, four Turing Awards, nine National Medals of Technology, and five National Medals of Science. Famous inventions by IBM include the automated, the floppy disk, the hard disk drive, the magnetic stripe card, the relational database, the Universal Product Code (UPC), the financial swap, SABRE airline reservation system, DRAM, and Watson artificial intelligence.

The company has undergone several organizational changes since its inception, acquiring companies like SPSS (2009) and PwC consulting (2002), spinning off companies like Lexmark (1991), and selling off product lines like ThinkPad to Lenovo (2005).

IBM INDIA – PROFILE

IBM has been present in India since 1992 (re-entry, after an exit in the 1970s). Since inception, IBM in India has expanded its operations

considerably with regional headquarters in Bangalore and offices in 14 cities including regional offices in New Delhi, Mumbai, Kolkata and Chennai. Today, the company has established itself as one of the leaders in the Indian Information Technology (IT) Industry.IBM has set the agenda for the industry with 'on demand business' - a kind of transformation where an organization changes the way it operates and reduces costs; serving customers better, reducing risks and improving speed and agility in the marketplace. IBM is already working with customers to transform them into 'on demand' businesses. IBM is the only company in the world that offers end-to-end solutions to the customers from hardware to software, services and consulting. Linux support further enhances IBM's e-business infrastructure enabler capability.

IBMs OFFERINGS IBM is the only IT company in the world and also in India that offers end-to-end solutions to customers from hardware to software, services and consulting.

IBM Global Services It is the world's and also India's largest information technology services and consulting provider. IGS provides the entire spectrum of customers' e-business needs -- from the business transformation and industry expertise of IBM Business Consulting Services to hosting, infrastructure, technology design and training services. IGS delivers integrated, flexible and resilient processes -- across companies and through business partners – that enable customers to maximise the opportunities of an on-demand business environment.In 2005, IBM announced the acquisition of Network Solutions Ltd., a leading infrastructure services company in India. This strategic investment will enable IBM to augment its networking and managed services portfolio of offerings in India and broaden it’s reach across the country.

Software Group The largest provider of middleware and the second-largest software businessin the world offers its customers comprehensive solutions to meet their e-business requirements. IBM Software provides best-of-breed solutions for financial services, manufacturing, process, distribution, government, infrastructure and small & mediumbusiness sectors. IBM Software portfolio consists of:- Transformation and integration solutions that are built on the IBM WebSphere middleware platform.- Information leveraging solutions that are built on a portfolio of Data management (DB2) tools.- Lotus product line to help organisations leverage collective know-how.- Tivoli range of products to enable organisations to manage complex technological infrastructure.

- Rational range of Application Development Tools to help software development houses develop applications in a structured and systematic way.

Systems and Technology Group: The portfolio of eServers (xSeries, iSeries, pSeries, and zSeries) offer a broad range of products from entry level, mid-range to high-end servers and mainframes, presenting customers with the best technologies and practices to support their ebusiness infrastructure requirements.IBM has been providing leading-edge storage technology to organisations around the world for nearly half a century. IBM offers a complete portfolio of storage networking products and solutions that not only includes LTO, SAN, NAS but also IP Storage -iSCSI appliances and gateways.IBM's Personal Computing Division was acquired this year by Lenovo Group Limited, the leading Personal Computer brand in Asia. Lenovo will continue to be the preferred supplier of PCs to IBM and IBM will provide service and support for 5 years to Lenovo PCs.

IBM Global FinancingIt provides flexible and attractive financing and leasing programs to fund Information Technology (IT) requirements of Indian customers. IGF helps customers through greater access to the hardware, software, solutions and services essential to compete in the global marketplace. Customers can buy IBM products from its Business Partners. Also, IBM makes available its range of 'Think' offerings and xSeries eServers through Shop IBM

India is an important market for IBM and the company has been making significant investments from time to time.

IBM Innovation Center for Business Partners: (One among 10 facilities worldwide)Independent Software Vendors are encouraged to port their solutions on IBM platforms at this Center and develop Web based applications for Indian customers.

Linux Solution Center, Bangalore: (One among 7 facilities worldwide) The center supports Business Partners and Independent Service vendors across the ASEAN / South Asia region.

IBM Linux Competency Center, Bangalore: (One among only 4 facilities in Asia) Thiscenter develops standards and embedded software for open source, undertaking high-end research in the area for IBM Worldwide.

Software Innovation Center, Gurgaon: This state-of-the-art center combines IBM's global experience and technology expertise to deliver e-business solutions for Indian organizations and also the government through the e-Governance Centre. The center offers IBM’s customers a range of services including technical consultation, proof of concept and technical presentations, implementation planning, solution architecture, application design and development, deployment, and education and training. The e-Governance Centre, a part of this facility offers technology, support and infrastructure to help governments and total service providers to design, develop, test and port prototypes of e-Governance applications.India Software Lab at Bangalore and Pune: The Software Lab in India develops, enhances and supports key IBM Software products & technologies in collaboration with other IBM labs world wide. Center for Advanced Studies at Bangalore was established at the India Software Labs to allow universities access to IBM's leading-edge product development and the supporting infrastructure, while IBM has the opportunity to work with academic leaders and researchers on research projects.

High Performance On Demand Lab in India, Bangalore – This specialised software and services lab in India to drive automation and virtualisation into the increasingly complex IT infrastructures supporting the emerging economy of India. This is the first of its kind lab for IBM in India, bringing specific high-value skills to help clients in India and the surrounding region to enhance and optimise their IT resources to support the growth of their businesses.

Engineering & Technology Services Center, Bangalore: This center provides technology design services for advanced chips, cards and systems to companies in India and across Asia.

India Research Laboratory , Delhi: (One among 8 facilities worldwide) IBM's IndiaResearch Laboratory (IRL) focuses on areas critical to expanding the country's technological infrastructure. It also has significant initiatives in Services and Sciences, Information Management, User Interaction Technologies, e-Commerce, Life Sciences, Distributed Computing and Software Engineering. Currently, IRL researchers are working on several projects like bioinformatics, text mining, speech recognition for Indian languages, natural language processing, grid computing, and autonomic computing, among others.

Services Innovation and Research Center, Bangalore: will be an extended arm of IBM's India Research Lab (IRL), headquartered in New Delhi. The Services Innovation and Research Center (SIRC) was recently launched as an initiative that will work in close collaboration with IBM's Global Services

group to develop innovative technologies and solutions that improve operational and delivery capabilities.

IBM also set up its Global Delivery Centres at Bangalore, Pune, Gurgaon and Kolkata.They deliver "best-of-breed" technology solutions to IBM customers worldwide coveringmiddleware, e-business technologies, enterprise and web technologies, data warehousing across functional areas like Supply Chain Operation Services, Financial Management Services, Human Resource Services, Customer Relationship Management, e-Business Integration, Application Management Services.

Global Business Solution Center in Bangalore - IBM further expanded its global consulting delivery capabilities with the establishment of a first-of-a-kind Global Business Solution Center. The center will allow IBM's more than 60,000 consultants to collaborate and deploy reusable tools and assets in 55 key business areas such as Consumer Driven Supply Chain Optimisation, Banking Risk and Compliance and Product Lifecycle Management.

Business Transformation Outsourcing Centers at Bangalore, Delhi and Mumbai: This center handles Business Transformation Outsourcing needs of IBM customers worldwide.Some key areas of competence of this center are Customer Contact Centers, Receivables Management, Telemarketing, Transaction Processing and Finance and Accounting. With the acquisition of Daksh eServices, one of Asia's leading business services providers, with service delivery centers in India and Philippines, IBM further enhanced the BTO service capability. With Daksh, IBM adds banking, insurance, retail, hi-tech telecommunications and travel verticals to BTO India’s service capabilities.

Partnering IndiaIBM shares the belief that India can unleash its true potential only through making ITavailable to and usable for large numbers of people. IBM's Community initiatives focus on education and children and leverage its expertise in technology to address societal issues. IBM has partnering relationships in India with a number of educational institutions. IBM has also set up an IT Center in Mumbai in association with Victoria Memorial School for the Blind to impart IT education to visually impaired people. IBM KidSmart Early Learning program was launched to further strengthen IBM’s commitment to community in India. This is the only program in India aimed at introducing technology at the pre-school level in disadvantaged sections of society to get a head start on their academic development through the use of age-appropriate software developed by IBM. Tryscience is another community related programme launched, which reinvents science learning, recreates

the interactive experience of onsite visits, and provides science projects as well as multimedia adventure field trips for museum visitors - primarily children, their parents and teachers.

About 1 in 5 IBM Employees Now in India

BOSTON (AP) -- IBM Corp.'s expansion in developing countries shows no sign of relenting. The technology company revealed Friday that it now has 73,000 employees in India, almost a 40 percent leap from last year. IBM did not provide updated figures for its work force in the U.S., which has held steady around 125,000 people in recent years.Nor did IBM project its total head count. It had 355,766 employees worldwide at the end of 2006. If the total has risen by the same rate as in 2006, almost one in five IBM workers now is in India, its second-largest center.Like many other technology providers, IBM has rushed to take advantage of the lower labor costs India offers even for highly skilled workers. IBM's base in India numbered only 9,000 people in 2003, but it was about 53,000 last year.IBM has been stressing not only the lower expense of working in India but the potential of the Indian market. IBM executives told visiting Indian journalists last week that the company expected to see revenue from the Indian market jump to nearly $1 billion this year, from $700 million in 2006.

Armonk, N.Y.-based IBM is also ramping up in other key developing markets. Its chairman and chief executive, Sam Palmisano, recently formed a new organization that will spur IBM's investment in emerging economies.The plan is meant to capitalize on the higher growth rates in the so-called "BRIC" countries of Brazil, Russia, India and China. IBM's revenue from those countries rose 18 percent in the first three quarters of this year, even after discounting the benefit of currency fluctuations. IBM's total employee count in those countries now is nearly 100,000, up from 70,000 a year ago.IBM's vice president of financial management, Jesse J. Greene Jr., would not forecast how much more hiring the company still might do in emerging markets. However, he said "we see continuing good stability in the BRIC countries in general and good opportunity for growth in those countries as well."

IBM's re-organizationIn 2005, Ginni Rometty took over the leadership at the Enterprise Business Services unit of IBM worldwide and heralded changes that would have long running implications and would lead to the explosive growth of IBM in India.In an investor meet in 2006, she identified five areas that would transform IBM and bring 'profitable growth'. In order of importance, they are Business Transformation Outsourcing, Application Management Services, Business Solutions, Small & Medium Business & Innovation. In each one of these

areas, IBM India figures prominently and employee numbers have grown multi-fold in the last two years.IBM in India is not just a global delivery organization intending to tap into the vastly skilled & low cost manpower availability, it is also a big player in the domestic IT market. IBM India's domestic revenues grew at 60% in 2005-06 making it one of the highest growth areas in the entire IBM portfolio of geographies & businesses. IBM India is also the biggest domestic IT player in the country, replacing HCL Technologies. It's worthwhile to mention that Bharti Airtel, India's largest private telecom company chose IBM as its strategic partner for outsourcing its entire network & IT backbone – a deal worth about $750 million initially, and currently worth over $2 billion.

IBM POLICIES

Global employment standardsAt IBM, we have always set high standards for the way we conduct business – in areas from corporate and social responsibility to sound business ethics, including compliance with all applicable laws and regulations. These Conduct Principles apply to all IBM employees. However, they are not meant to describe the full scope of IBM human resource policies or practices. More detailed statements of policies, procedures and practices are contained in documents such as the IBM Business Conduct Guidelines. Employees are required to comply with all IBM policies, procedures and practices at all times and are responsible for consulting their management if they have any questions.Our goal is to ensure full compliance with these principles by IBM managers and employees. A companion to this document, the IBM Supplier Conduct Principles, governs our relationships with and standards for IBM suppliers.

Forced or involuntary laborIBM will not use forced or involuntary labor of any type (e.g., forced, bonded, indentured or involuntary prison labor); employment is voluntary.

Child laborIBM will not use child labor. The term "child" refers to any employed person under the age of 16, or under the age for completing compulsory education, or under the minimum age for employment in the country, whichever is greatest. We support the use of legitimate workplace apprenticeship, internship and other similar programs that comply with all laws and regulations applicable to such programs.

Wages and benefitsIBM will, at a minimum, comply with all applicable wage and hour laws and regulations, including those relating to minimum wages, overtime hours,

piece rates, nonexempt or exemption classification and other elements of compensation, and provide legally mandated benefits.

Working hoursIBM will not exceed maximum hours of work prescribed by law and will appropriately compensate overtime. Employees will not be required to work more than 60 hours per week, including overtime, except in extraordinary business circumstances with their consent or where the nature of the position requires such work, as for exempt employees and employees in executive, managerial or professional positions. In countries where the maximum work week is shorter, that standard shall apply. Employees should be allowed at least one day off per seven-day week.

Nondiscrimination and harassmentIBM will not discriminate in hiring, promotion, compensation of employees and employment practices on grounds of race, color, religion, age, nationality, social or ethnic origin, sexual orientation, gender, gender identity or expression, marital status, pregnancy, politicalaffiliation, disability or veteran status. IBM will create a work environment free of discrimination or harassment based on race, color, religion, gender, gender identity or expression, sexual orientation, national origin, disability, age or veteran status.

Respect and dignityIBM will treat all employees with respect and dignity and will not use corporal punishment, threats of violence or other forms of physical coercion or harassment.

Freedom of associationIBM will respect the legal rights of its employees to join or to refrain from joining worker organizations, including labor organizations or trade unions. IBM complies with legal requirements worldwide regarding employee and third-party involvement. IBM respects the rights of employees to organize, and makes managers at all levels aware of those rights. The company's long-standing belief is that the interests of IBM and its employees are best served through a favorable, collaborative work environment with direct communication between employees and management. IBM endeavors to establish such favorable employment conditions, to promote positive relationships between employees and managers, to facilitate employee communications, and to support employee development.

Health and safetyIBM will provide its employees with a safe and healthy workplace in compliance with all applicable laws and regulations. Consistent with these obligations, IBM will have and will implement effective programs that encompass things such as life safety, incident investigation, chemical safety,

ergonomics, and will provide safe standards of health and safety in any housing and transportation provided for our employees by the company.

Protection of the environmentIBM is committed to worldwide leadership in environmental protection. In addition to complying with applicable environmental laws and regulations, every employee must comply with IBM's environmental policy and the corporate directives and requirements that support that policy. Employees are expected to report any environmental concern or violation of environmental law or IBM requirements to their management. Managers are expected to take prompt action.

Laws, including regulations and other legal requirementsIBM will comply with all applicable laws, regulations and other legal requirements in all locations where it conducts business.

Ethical dealingsIBM expects its employees to conduct business in accordance with the highest ethical standards, and maintains Business Conduct Guidelines that employees are required to follow. IBM strictly complies with all laws and regulations on bribery, corruption and prohibited business practices.

CommunicationsIBM makes available to all employees open communications channels for suggestions and complaints to management. IBM maintains channels for direct contact with the corporate office for employee complaints, including any form of harassment including sexual harassment.

Monitoring/record keepingIBM will perform business audits to ensure adherence to our policies, practices and procedures. We will keep records in accordance with local laws and regulations.

PrivacyIBM is committed to protecting the privacy and confidentiality of information about its employees. IBM recognizes that under the laws of some countries certain information about employees – such as information regarding racial or ethnic origin, political opinions or philosophical beliefs, trade union membership, and health or sex life – should be considered "sensitive." Whenever possible, such sensitive information should be processed in aggregate or anonymous form so that a particular individual is not identifiable. Where this is not feasible, IBM will process the information only in accordance with applicable local law (and any designated safeguards provided therein); and with employee consent where required; or where necessary for the establishment, exercise or defense of legal claims.

Support for employees and community involvementIBM provides numerous programs for employees to encourage and enhance the positive impact of their community involvement. These global programs include: On Demand Community, a suite of online tools and resources to support employee volunteerism; Community Grants, a program that awards long-term volunteer commitments with grants of cash or IBM equipment, and Matching Grants, a program through which IBM matches employee grants to schools and nonprofit organizations.

HUMAN RESOURCES (HR) OUTSOURCING

Enable HR as a strategic talent partner through IBM’s integrated processes and technology solutions, featuring strong governance and actionable analytics.

In an on demand enterprise, human resources can be more efficient. All

employees can have effective training delivered to them when they need it,

and they can receive immediate service through the lowest-cost channels

that meet their needs.

IBMs human resources business transformation outsourcing service areas

include HR transformation, HR analytics, HR applications and infrastructure,

and HR specialty services.

Having an on demand environment means that multiple vendors are

integrated transparently, providing the most cost-effective solution, and all

of the online resources an employee needs are available through one

consistent interface. Human resources (HR) applications can be added or

updated as needed through a flexible, low-cost architecture.

Business transformation outsourcing (BTO) services can make HR on demand

happen for you by implementing solutions that unlock business value and

helping you develop the attributes of an on demand business:

Responsive: HR staffing changes fluidly as people are acquired or divested.

Variable: Technology advances allow HR to become a virtual organization.

Focused: HR managers focus on strategy and vision, not transactional

processing.

Resilient: HR strengthens its role in managing risk and opportunity.

Our BTO services comprise a full range of outsourced HR services, including:

HR transformation:

Business-to-employee (B2E) strategy

HR process redesign

Service delivery strategy

Decision support

HR analytics:

Access to consolidated HR information

Data warehouse design and implementation

Performance metrics and benchmarking

HR applications and infrastructure:

Full HR process delivery

Transaction processing (benefits, payroll)

Web-enabled self-service and contact centers

Vendor aggregation and management

IBM learning solutions

Specialty processes (eHR expertise)

AMS - Systems integration, application development and management,

specialized applications

Infrastructure and hosting

HR specialty services:

Separation services

Expatriate services

The potential benefits of outsourcing your HR functions to our BTO services

include savings from utility-like HR costs, more dynamic and responsive

systems, and the risk reduction that comes with technical and process

improvements. We have partnerships with leading specialized providers and

a truly global understanding of HR and its legal requirements, all of which

facilitate a smooth transition to an outsourced solution.

HR STRATEGIES

RECRUITMENT PROCESS OF IBM For a student, the process begins with sending the resumes, through

the Campus TPO's(Training and Placement Officer). This is then followed by an independent selection process involving a

round of discussions. This is where the student's interests and skills are matched with the existing business problems that ISL(India Software Lab) projects plan to solve. A selection offer is made once a match is found.

ELIGIBILITY CRITERION OF IBM You should have a minimum aggregate of 70% in Engineering (till the

last semester till which the exams have been declared)* However, for all IITs, IISCs and colleges in Maharashtra, a minimum

aggregate of 60% is enough. Internship Program*

ISL has an Internship Program wherein students interested in doing their engineering projects for a period of 6 months

Extreme Blue Program* It is a premier internship for top notch students pursuing software development degrees

CAS(Centre Advance Study) ISL offers M.Tech, M.S and Ph.D students, access to the IBM research areas, technical staff and other resources, with the goal of solving research problems of the utmost importance, through its Center for Advanced Studies (CAS) program

PERFORMANCE APPRAISALIBM focuses on innovation through the effective workforce performance. So they have launched “Personnel Management’s Training and Management Assistance program” at their U.S Office.IBM helps to govt. agencies to produce effective workforce by providing relevant skills,knowledge,supportive environment and team work for organizational growth as well as self advancement.(IBM 2010).

IBM offers integrated , innovative Human Capital Management solutions in four key areas :

Human capital strategyLearning solutionsKnowledge and collaborationHR Strategy Transformation

TRAINING AND DEVELOPMENT OF IBMIBM India training and development schedules are planned in procedural andin the organize manner with the calmness of the society. As the training andthe development plan was divided into 3 parts1. Induction program series2. Training3. Development

INDUCTION PROGRAM SERIESInduction program involves the basic introduction of the new employee with the basic part of the office and the domain where he is going to work and with his/her peers, subordinates and the officers from him going to report. Which starts with the formal meeting with the H.R head where he get the temporary employee I’d (LOTUS I.D) ,this session which also include the signing and submission of the basic documents. In this session the people gives you a basic presentation about the process and the working environment he is going to perform the job. Not only the PEOPLE MANAGER but the HR and various senior employees give the presentation to the employees along with the presentation of the transport in charge as well. These inductions take place for only 3 days. In which the employee learns the1. How to stay in IBM, what is IBM and what is your domain.2. To know about business domain

TRAININGIn the training session the session depend upon the strict norms of the availability of the employee if there is the right number of the employee in the organization for the same domain to be trained then people manager will get in contact with the HR manager where he get into contact with the training coordinator who arrange the training whether for the technical purpose or for the management training. These training may schedule for 25 to 30 days which includes the periodic test to check the knowledge of the individual.Training may given to the new employee for:1. Technological domain2. Management training3. Compliance trainingIBM has the mindset of not only trained the new employee but also brush up the knowledge of the old employee by giving them the refresher training which is also called probation training. IBM India usually comprises in job training which includes the classroom lectures given by the trainers. Special course material is given to everyindividual for the training period. When an individual is been assigned a task to work on an international project like nether land company then the employee is been trained with the language specialization course.

DEVELPOMENT

IBM India constitute of unique series of development of the employees in many prospectus. Development by making the employees to work with the foreign clients.By providing:1. LANGUAGE TRAINING: Employees are given training for the foreign language to deal with their customers who are out of national boundaries. They are given trainer who facilitates them to learn languages accordingly to the areas of the operation in which employees’ deals.2. BEHAVIOURAL TRAINING : Employees are given opportunities and send them to foreign franchise for the training. There they learn etiquettes how to deal with the people of foreign nationals and learn their ways of living style.3. MOTIVATIONAL TRAINING: In the organization employees are motivated at every point of time in the organization. As the employee are given all time attention as their performance are constantly evaluated. If any problem are seen in performance then the motivation are provided in any forms such as Monetary or Appreciation.

IBM – HR PRACTICES

First day orientation

"Your IBM" is a new employee orientation class designed to help the

employees hit the ground running as they begin their career at IBM. This

class gives them the road map to help understand the company's core

values, rich heritage of technology leadership, Innovation, and the important

role employees are being asked to play as the company continue to drive

growth and innovation. This program uses a blended learning model that has

the following components:

E-learning that is accessible to you right away.

2 or 3 day Classroom orientation on or as close to start date as

possible.

E-learning to be completed within your first four months at IBM.

In addition to the IBM learning program, new employees will develop the IBM

Foundational Competencies as part of their career development. Values of

IBM explain that every IBMer, no matter his or her job, should be focused on

ensuring the success of its clients, on improving IBM and the wider world,

making both better than found, and on extending talent for building

relationships based on trust and integrity. Through the IBM Foundational

Competencies, the characteristics and behaviours necessary for this values-

based work culture are developed.

These competencies set a common standard of excellence across the

organization and form the basis of people development within IBM. They will

also help to focus the learning time on developing the characteristics

identified -- and validated -- as being key to achieving success.

All of IBM's learning initiatives enable employees to access information when

they need it. Learn what you want, when you want, where you want...this is

the strategy of On Demand learning. Every component has been designed to

help employees improve: in knowledge, in people connections, and in career

direction.

Benefits by IBM

IBM compensation and benefits are among the very best in the industry. It

includes:

Money

IBM offers a variety of programs to give employees a valuable total

compensation package. Some programs will apply to every employee, every

year, while others are designed to recognize individuals for very specific

accomplishments.

Program What it is Who gets it

Base Pay Regular pay; your "annual

salary"

All employees

Variable Pay Annual "bonus" depending on

company, group and individual

performance criteria

All non-incentive plan

employees are eligible;

actual pay will vary based

on performance of the

individual and his/her unit

Commission

and Incentive

Pay

For sales employees, portion

of total compensation varies

on specific sales goals and

objectives

Sales employees and

executives on incentive and

commission programs

Stock Options Recipients are granted the

"option" to buy stock at a

locked in price

Program is very limited and

focuses on retention by

awarding options to key

employees in critical job

categories

Awards and

Recognition

Various individual and group

awards designed to recognize

very specific and extraordinary

accomplishments

All employees are eligible

depending on the nature of

the award and any relevant

restrictions

Flexible benefit plan - FBP

The Flexible benefit Plan is a significant component of Total Compensation

allowing the employee the flexibility of planning their compensation. This

Benefit Plan lets the employee design their own package which best meets

their individual and unique needs. Flexible Benefits Plan empowers them to

make responsible choices in order to derive maximum value for

Compensation. In this approach employees are presented with the

opportunity to make decisions on the benefits and advice on how to make

the necessary claims. The FBP covers benefits such as:

HRA

Leave Travel Allowance (LTA)

Conveyance Allowance or Fuel expense and Vehicle maintenance

Reimbursement

Driver's Salary

Medical Expense Reimbursement

Health

IBM provides a range of health benefit options so that employees can design

personalized coverage that meets their personal or family needs. They are

eligible for all health benefit programs beginning with first day of

employment e.g. Group term medical insurance, life insurance etc.

For Kids

This "first of its kind" centre that offers IBM employees a complement of

programs in one location, including child care, after-school care and summer

camps. The centre supports a wide range of children between age groups 3

months to 12 years. This centre was developed and funded through the IBM

Global Work Life Fund. IBMers will receive priority to enroll their children in

the centre’s programs, discounted tuition rates & convenient time scheduling

to accommodate IBM working parents.

This centre has been designed as a place where young children will enjoy

extraordinary childhood experiences, while IBM parents gain a partner to

help them balance the demands of work and family.

Career at IBM :The employees of IBM who have access to On Demand

Workplace, have access to a variety of websites and tools to effectively

manage career and build expertise, which includes:

E-Learning - IBM's central warehouse of all on-line courses that are

offered by IBM's professional communities. Includes universal access to

thousands of internal e-learning modules.

Global Campus - IBM's central warehouse of all on-line and classroom

courses that are offered by IBM's professional communities. Includes

universal access to thousands of internal e-learning modules.

Career sites and tools - IBM's career sites and tools enable employees

to identify opportunities, construct a plan of action for building skills

and mark their progress as they advance along their career path.

Academic Learning Assistance Program - Known as ALAP, this program

provides assistance to obtain additional external education that

employees need to stay current with IBM's business strategies and

goals.

IBM Values

Dedication to every client's success.

Innovation that matters - for our company and for the world.

Trust and personal responsibility in all our relationships.