What are the key advantages and disadvantages of Incentive plans?
Chapter17: Organizational Planning And Controlling
Section17.6: Employees' Responses To Planning
Problem 3CC: How is goal setting tied to job satisfaction and performance?
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What are the key advantages and disadvantages of Incentive plans?
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Advantages of an incentive pay system: -
1. With the help of an incentive system, an employee can differentiate between good and bad performance at a workplace and thus can improve their own performance.
2. Employees can compete with each other for the incentive pay.
3. It can help to retain the employees for a longer period.
4. Employees can clearly identify their personal goals.
5. Organizations can squeeze out the best performance of the employees through this scheme.
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