II. Body A. Importance of incentive Pay plan. B. Types of incentive pay. 1. Individual incentive plans 2. Group incentive plans. 3. Companywide incentive plans. C. Advantages of Incentive Pay D. Designing incentive pay plans. E. Incentive pay and the motivational models. F. Problems.
Abstract Quality of employees work is very critical for company’s success. If planned properly, incentive pay plans may increase employee’s interest in providing better service. This paper discusses the importance of incentive pay plans. The objective of this paper is to show how use of incentive pay plans motivates employees to give their best. This paper analyzes and determines the importance of incentive pay, kinds of incentive pay, advantages of incentive pay, designing incentive pay plans, motivational models and some problems that an incentive pay plan can create.
Introduction Incentive pay, also known as pay for performance is generally given for specific performance results rather than simply for time worked. While incentives are not the answer to all personnel challenges, they can do much to increase workers performance.
A good incentive pay scheme can motivate employees to work better for the organization. A badly thought out scheme, on the other hand, can be divisive and demoralizing. As competitive pressures mount, organizations are compelled to consider strategies that will help them become more innovative, productive and efficient. The main ingredient of a successful incentive pay plans is the condition of regular, honest communication to employees.
Importance of Incentive Pay Plan Incentive pay can be defined as a wage system that rewards
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