Incentive Plans

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Incentive Plans MGT/431 February 21, 2012 Incentive Plans Organizations provide incentive plans to employees as motivation to reach the objectives and goals of the company. Incentives are given to personnel to encourage them to do his or her best. Incentive plans in any business might include bonuses or raises, stock option plans, or other forms of incentives. This is in exchange for the employees who work harder, better, or faster in accordance with the organizations goals and objectives (Businesstown.com, 2001). The majority of incentives are performance-based policies in which workers receive additional cash or benefits centered on a worker’s performance. Raises and Bonuses Most companies will award a base salary increase…show more content…
The CSR would receive a candy bar of his or her choice or PTO for taking the most calls in a day. Each day the total calls are reported and the CSR with the most receives the incentive. Some CSR’s will have competitions with each other. This is a way the employees motivate themselves. When all goals are met the team or teams receive a lunch party in which the company provides the funds for the event; this is a paid event for all employees. Some employees make his or her team goals a priority because the team goal incentive is always higher than individual goals. Conclusion Incentive plans are beneficial to an organization because it provides high productive results through teamwork; teamwork is an effective tool in an organization. For that reason, it is important to build an effective team and motivate them. The supervisor has the responsibility to motivate the employees; however, when incentives are given it will motivate the employee to do his or her best and in return the company will gain the maximum productivity of the employees (Businesstown.com, 2001). In the department I work for monetary incentives motivate the employees but nonmonetary incentives as simple as a candy bar or PTO work too. References Businesstown.com. (2001-2003). Choosing Incentive Plans. Retrieved from http://www.businesstown.com/people/compensation-plans.asp Salary.com. (2012, February 15). Raises and Bonuses: Will You be Rewarded for
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