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Examining Incentive Plans

Evaluate how the incentives plans do, or do not help the organization to achieve its goals and objectives. Use at least two references from the reading assignment, an internet articles.

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Organization's incentive plans are extremely critical for the attainment of organizational goals and objectives because an effective incentive plan ensures high motivation and morale levels among the employees as well as help in securing their full commitment, loyalty and effort towards the organizational activities, tasks and processes. Effective incentive plans ensure that employees are enthusiastic about their contribution towards the achievement of goals and objectives, as well as make them feel an inherent part in the organization.

Effective incentive plans also result in healthy competition among the employees and thus, improves the overall productivity and efficiency of each employee. By providing an opportunity to the employees to share the increase in profitability of the firm, incentive plans ensure that the employees devote their 100 percent effort towards each activity or task and thus, improve the overall efficiency and productivity of the organization.

A very well known theory pertaining to motivation, i.e., Maslow's Need Hierarchy Theory, states that employees have five levels of needs (Maslow, 1943): physiological, safety, social, ego, and self- actualizing. Maslow argued that lower level needs had to be satisfied before the next higher ...

Solution Summary

The solution examines how an organization's incentive plans relate to their objectives in 756 words with 3 references.