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). Explain your answer.© BrainMass Inc. brainmass.com June 4, 2020, 3:03 am ad1c9bdddf
As you already know, there are two types of motivation - extrinsic and intrinsic.
Intrinsic motivation is when you motivate yourself to perform - i.e for pride, for self-worth...
Extrinsic motivation is when you are motivated by outside sources to perform - money, perks, extra vacations.. This is the basis of an incentive plan.
An incentive plan would be where an employee would enjoy an extra 'something' if they perform well at work.
Individual incentives would be based on individual performance. Depending on the type of job the person holds, companies can create an incentive plan.
For example, a shift worker in a factory could be on an incentive plan - if they make less then 1 mistake per 100 actions, then they would reach their goal and get their incentive.
The incentive could be a variety of things:
- a bonus
- profit sharing
- extra vacation
- stock options
Another example would be a manager leading a project. If the project comes in on time or under budget (or both) then they would reach their goal and get their incentive. ...
This solution looks at the motivating effect that incentive pay plans have on employees.