Question

Describe ant incentive plan that your organization has implemented? Does it include elements of individual incentives and group incentives? Explain why?

Answer 1

answer-

Incentive plan is a way to motivate employees or workers in the organization for their work performance and achieving targets specified by the employer. My organization is a small Cloth manufacturing organization in which workers are to work on sewing machine to create design on clothes, stitching like activity so that those clothes can be delivered to big retail stores. so in this organization, Management has implemented two types of incentive plan-

Taylor’s differential piece rate system for workers in which workers would be paid based on the piece they produced in the organization. in this there are two piece rates one for achieving above the standard and second rate for below standard. for example- my organization has set standard rate $4-$6 for each t-shirt and the standard amount of t shirt units are 10 so worker who produces 10 or above they will get $6 per each t shirt and worker who produce below 10 get $4 per t shirt.

second plan is for supervisor who manages and look of the work of workers. the incentive plan for them is Scanlon plan: under this method bonus is paid in proportion to the production 1% bonus if 1% increases in production .

yes, this include both elements of individual in Piece rate plan in which incentive is depend on individual's productivity and second Scanlon plan is group plan in which supervisor, manager and assistants share the bonus among themselves.