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Incentive Plan for a Company

The goal of this assignment is for you to think like an HR director who is responding to a work situation with a pay

Select one individual plan, one team plan, and one long-term incentive plan. Describe a situation in which these plans would be most appropriate. In your answers, include the type of company and type of work as well as the position or positions that would be affected by your plan.

For example, if you selected a team-based plan, you may describe a department in a retail store that has a history of employees not covering for each other during the holiday rush period. You may use actual examples and reference a company as you have witnessed it or you may describe a generic situation. In your answer, include how you think your chosen incentive plan will affect behavior and achieve intended results

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The response addresses the queries posted in 1257 words with references.

//The following paper is developed for giving the introduction about various incentives plans used in different types of organizations. HR director is responsible for deciding the issues like incentives plan, according to the nature of the company. In this paper, different scenarios for different companies are developed which explain the suitable incentive plan for the company.//

Incentive Plan

Incentive plans are part of incentive program of a company which is very valuable and important tool for employee recruitment and retention. These plans are designed to motivate the employees for better performance whether individually or in a team. According to their performance, monetary or non-monetary rewards are provided to the employees. As incentives are connected with financial matters, the organizations need to pay proper attention in selecting the alternative, which is most suitable to the organization (Simone, 2009). Incentive plan can be of three types:

1. Individual incentives plan

2. Team incentives plan

3. Long term incentives plan

Individual Incentives Plan

Under individual incentive plan, earnings are directly related with the performance of individual worker. Individual incentives will be based on time and output. Several incentive plans are available for individual employees like:

1. Piecework plan: In this system of incentive, a worker is paid for each piece or unit produced by him/her.

2. Recognition-Based award: This is a non-monetary award that refers to formal programs like employee of the month, performance feed-back, praise and approval.

3. Combination Plan: These plans are typically for salespeople. They are paid combination of salary and commission. Commission is based on the quantity of sales made by him.

4. Sales Awards: These are also related to salespeople. On the basis of sales made by them, the awards are given to them (Aamodt, 2009).

Situation in which individual incentive plan is suitable:

A general example of pharmaceutical companies can be taken where the medical representatives do marketing work and try to persuade the doctors to prescribe their company's ...

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The response addresses the queries posted in 1257 words with references.