Discuss how incentive pay plans - both individual and group - motivate employees to achieve high levels of performance. Identify potential weaknesses of these plans and suggest steps that can be taken to make these plans highly effective. Then, choose one industry that either an individual or group incentive pay plan would work best providing support for your reasoning (using personal examples to illustrate your point if possible).
Incentive pay plans are extremely beneficial in motivating employees and enhancing the productivity and morale levels of employees because employees are not only provided a minimum level of security with fixed pay or salary, but also get an opportunity to earn more by delivering superior performance or higher productivity. As a portion of the salary or incentive is tied to performance of employees, employees will strive to perform better to earn more salary or share in profits ...
The solution explores the advantages and disadvantages of individual and group incentive plans in 302 words.