Incentive Plan Paper

Topics: Management, Employment, Human resource management Pages: 3 (811 words) Published: December 8, 2010
Incentive Plan Paper

University of Phoenix

Incentive plans can be both a positive and a negative for any organization.  Employees can either do what is right, and work towards not only preparing to help themselves, with the incentives being offered, but also achieve the company goal in light of the incentive plan.  On the other hand, some employees may take advantage of the incentive plan and do just enough to receive their incentive, while not truly taking the organization's plans into account.

In the past not all employees used to be offered incentives. It was reserved for employees that were top executives, piece workers, sales personnel, and. Today most corporations, both large and small, offer an incentive package that excludes no employees. Some kind of incentive pay is an imperative element of any compensation plan. Incentive pay expresses appreciation and establishes a sense partaking in the company's well-being that straight salary dollars, no matter how large, do not suggest. A well-designed incentive-pay plan can also helps to pull people together, help point them in the road the organization wants them to go, and gives that additional push that many companies needs in the current competitive environment. There are many types of incentive plans that an employer can offer their employee to achieve their objectives.  It is important, however, that employers constantly review the statistics involved with the incentive plans that they have been utilizing.  Employers need to ensure that the incentive plans do not become stale and therefore lose its main objective, which is to motivate employees in order to the organization's goals to be met.   Frequent evaluations of incentives also allow companies to make tweaks and other modifications if the plan is not delivering the intended results. It's a mistake to flip the switch on an incentive plan and let it run without evaluating its performance. Too many companies end up with...
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • Incentive Plans Paper
  • Essay on Incentive Plans
  • Incentive Plans Essay
  • Why Incentive Plans Cannot Work Paper
  • Better and Incentive Plans Essay
  • Essay about Why Incentive Plans Cant Work
  • Efficient Risk Bearing and Incentives in Compensation Plans Essay
  • The Best Laid Incentive Plans Essay

Become a StudyMode Member

Sign Up - It's Free