Incentive Plans Paper - Essay Example

There are essential things that should always be remembered. Giving incentive will not guarantee the quality of work that employee will do. There are some points that should not be disregarded when it comes to incentive plans. In giving rewards, there is the tendency that the company will just be throwing away money, then later on face productivity loss due to spending too much in giving incentives. That may also create a negative attitude toward workers who will do hard work because they are manipulated by the benefits and not really a long term loyal inclination to contribute to the company’s objectives which are far more important in keeping the management up.

There are many things that has to be in place in order for an incentive program to be working effectively. The main consideration is to always relate the plan to the objectives of the organization and to ensure that the plan has nothing to do in contrast of organizational objectives. Without considering business plan, or without developing a proper framework, it is but a hasty thing to pay for activities or company policies that eventually will not help to the organization’s success. Incentive plan should be well designed that it will not bring to the organizations fall.

There are two ideas that a company should not set aside in understanding the nature of giving incentives. The consideration should satisfy the question, when incentive plans will be helpful or not helpful in achieving company’s objective? Understanding this is essential in creating an effective incentive plan and achieve positive feedbacks. Alfie Kohn (1999), describes how an incentive plan will not work in a company by taking into perspective that programs that utilize rewards expecting for people’s behavioral change are somewhat ineffective for a longer period.

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