Explore BrainMass

Explore BrainMass

    Incentive plans at McDonald's

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    See attached case study: Incentive plans at McDonald's.

    © BrainMass Inc. brainmass.com June 4, 2020, 12:10 am ad1c9bdddf


    Solution Preview

    The incentive plans should be such that they promote goal congruence. The actions of the managers should benefit both the organization and the manager. We evaluate the given plans with this objective.

    Plan 1 - The bonus is based on increase in sales volume over the previous year. This is not a good incentive plan as the manager can increase the sales volume by reducing the price. Thus the manager would benefit at the cost of the organization.

    Plan 2- This is based on subjective evaluation and no quantitative measures. This is not good as it depends on the superior how to interpret the information. Managers may also give misleading information as there is no ...

    Solution Summary

    The solution details the pros and cons of the incentive plans at McDonald's