Question

Unlike individual incentive programs, group and company-wide incentive programs reward individuals based on group (i.e., cost savings in a department) and company-wide (i.e. profits) performance standards, respectively. Under group and company-wide incentive programs, it is possible for poor performers to benefit without making substantial contributions to group or company goals. What can companies do to ensure that poor performersdo not benefit? Be sure to use terms unique to compensation and human relations to answer this question.

Answer 1

fasues: componys wide incentive program and companies do to ensure that pots per-frmers do not benefit are: - There are a ways in which performance can be incentivised individual basis or group basis. • The group can be a division, adepartment, a unit or the whole company, people to work as a team to Group incentive motivates goal and the coordination (co operation prove the common among the employees is good. • Since each employee is dependent on the other employee for results and incentive, there is greater cohesion among the employed But if the group size is very large , many times we Come across free-riders who do not perfrom but get the

incentive of others * This is very de motivating for the employees who work hard to get the incentive. . Therefore appropriate mechanisms should be established to ensure that every one contributes of desired. one of the ways in which this issue can be addressed is by defining the work flow, job description and the Standard operating procedures for every employee. In addition to this each superviser should also be mandated to monitor and ensure sight level and quality of work from each employec. further, it may be a fact that the slackness is due to excelf deployment of manpower than what is optimal. Insuch a case

review of manpower deployment should be done and appropriate redeployment of manpower should be done. • This will ensure that every employee has needed work load. o -