We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Nobody downloaded yet

Incentive Plans - Research Paper Example

Comments (0) Cite this document
 This paper discusses two incentive plans, namely salary plans and commission plans, with respect to their advantages and disadvantages. Incentive plans are conventional employee motivational tools employed to enhance organizational productivity…
Download full paperFile format: .doc, available for editing
Polish This Essay98.6% of users find it useful
Incentive Plans
Read TextPreview

Extract of sample
"Incentive Plans"

Download file to see previous pages Salary incentive plans are best suitable when organizations need to exercise greater control over the sales force in order to achieve organizational goals including the development of new market segments, excellence in customer services, and delivery of other support functions. In case of team selling activities, this incentive plan is more appropriate because it is very difficult for the management to identify individuals whose effort contributed to the sale. In addition, the method can be used in any situation where a flawless employee performance evaluation is not possible. From the perspective of a salesperson, the salary incentive plan is more secure because incentive rate does not change according to the sales volume fluctuation. In the words of Reinfeld (1996), employees who are working in the service sector are non-aggressive and they need a stable environment to perform their tasks effectively. From an employer perspective, this incentive plan is helpful for the organization to operate its business activities more efficiently as employees are not forced to increase the sales volume under this plan. Advantages As Reinfeld (1996) points out, high level of management control over the sales force is the most potential advantage of salary incentive plans; and this incentive plan can assure salespeople a steady and secure income. As the salary incentive is at a fixed rate, it is easy for the management to monitor and control its budgeting activities effectively. Another benefit of this plan is that it is very easy to understand. Equal treatment of employees assists the organization to avoid employee conflicts to a great extent. Under this plan, the company incurs relatively fixed sales costs, and this situation reduces the level of future uncertainty as well. Disadvantages Many companies claim that this plan would not improve employee productivity significantly as employees are paid regardless of the sales volume. The most notable demerit of this incentive plan is that unproductive employees are paid for the effort of other productive employees. In other words, efficient and hardworking employees are not sufficiently paid for their extra effort. Under this incentive system, firms are often forced to exercise close supervision over their sales force. According to Reinfeld (1996), the salary incentive plan does not provide any incentive for a balanced sales mix. Commission plans Under the commission incentive system, payments are made on the basis of actual employee performance or sales volume. Since an employee’s productivity level rests with his/her own skills and efficiencies, this plan offers an unlimited incentive to employees. To be more specific, commission plans assist employees to determine their income level. Commission rates are determined by the organization. The commission plan is more appropriate when sales are promoted by individuals rather than the team effort. If the organization practices aggressive competition strategies, commission incentive plans would be more suitable. Advantages According to Zenger and Marshall (1995), the most notable benefit of commission plans is that payment is directly linked to employee performance under this system. Commission incentive plans are very easy to be administered and commission rates can be easily computed. It provides employees with an opportunity to increase their earnings based on their performance.  ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
(“Incentive Plans Research Paper Example | Topics and Well Written Essays - 750 words”, n.d.)
Incentive Plans Research Paper Example | Topics and Well Written Essays - 750 words. Retrieved from https://studentshare.org/management/1457484-incentive-plans
(Incentive Plans Research Paper Example | Topics and Well Written Essays - 750 Words)
Incentive Plans Research Paper Example | Topics and Well Written Essays - 750 Words. https://studentshare.org/management/1457484-incentive-plans.
“Incentive Plans Research Paper Example | Topics and Well Written Essays - 750 Words”, n.d. https://studentshare.org/management/1457484-incentive-plans.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document
Performance management
One of the worst scenarios that the CEOs consider themselves to face is the need for demonstrating the ability to develop the required performances and skills of the employees through training and development programmes. Apart from that the HR roles are being scrutinised continuously in terms of developing strategies for enhancing the performances of the employees that can add value to the organisation’s objectives.
12 Pages(3000 words)Research Paper
Incentive Plans Paper
Creating and maintaining the link between the rewards with the organizational goals are considered an important task for the managers. By developing this relation, managers believe that the staffs will be more closely attached to their jobs and that is likely to enhance both the quantity as well as the quality of individual performances.
3 Pages(750 words)Essay
Business - Incentive Plans
However, unlike other organizations, there is a high amount of risk that employees face when working within the Army that is unique to their organization, which means incentive programs must factor in the rational decision-making of Army veterans in order to be effective.
3 Pages(750 words)Term Paper
Improving Performance and Organizational Effectiveness
Managers of these companies put great efforts to make their companies reach higher ranks in the Fortune 500 list of the Fortune magazine. Improving employees’ performance and increasing organization effectiveness are two of the major aims of the Fortune 500 companies.
6 Pages(1500 words)Research Paper
SLP 3 - Healthcare Strategic Planning and Operation Problems and Remedial Action Plans
These areas include having a huge executive and consultation of various stakeholders such as affiliated hospital which slows down the decision making process. The workers are also poorly motivated because of being overworked and poor incentive program. The volunteer program also has various flaws and is being underutilized.
3 Pages(750 words)Research Paper
Levinson Chairman at Genetech Inc. and former Vice President of United States of America Albert Gore Junior. The board of directors mostly comprises individuals who have either held top positions in different companies in the past or are currently a part of their board of directors.
4 Pages(1000 words)Research Paper
An Investigative Study on the Effectiveness of Incentive Remuneration
The research found that the top performing FSCs preferred to have cash and individual incentives while the older, and often low performing FSCs were satisfied with non-cash and group incentives. It was also seen that the top performers were not
25 Pages(6250 words)Research Paper
Safety Culture; Do Safety Incentives Really Work
Keeping this in mind, the current paper will discuss the safety culture and the safety incentives given to the employees at the organization. The rationale for this project is to
5 Pages(1250 words)Research Paper
Incentive Plans Paper (Human Resources Management College Course)
Motivating employees is the best manner in which they can attain their objectives by the way of increasing their efforts, productivity and increased profits. Big companies like Toyota use a mix of monetary and non
3 Pages(750 words)Research Paper
Individual vs group incentive plans
There is diversity in the issuance of performance goals that can be based on the skills, workload and ranks of the employee. The organization is capable of setting different individual standards in various
2 Pages(500 words)Research Paper
Let us find you another Research Paper on topic Incentive Plans for FREE!
Contact us:
Contact Us Now
FREE Mobile Apps:
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • The Newest Essay Topics
  • Index samples by all dates
Join us:
Contact Us