Question

Discussion Question:

1. Indicate whether you agree or disagree with the following statement: “Individual incentive plans are less preferable than group incentives and company-wide incentives.” Explain your answer.
2. “Person-focused pay plans are least preferable compared with individual incentive pay programs.” Indicate whether you agree or disagree with this statement. Detail your arguments to support your position.

Please answer questions 1-2.

Thank you.

Answer 1

I strongly agree with the fact that group incentives and company wide incentives are more preferred than individual incentives. group incentives and company wide incentives ensure that all the teams in the organization as a whole work towards a common goal. A team is likely to accomplish more tasks and develop more ideas than a sole individual. In other words, individual incentive plans reward the individual for his/her own efforts resulting in individualistic behavior. In today's competitive economy, companies need to plan proper use of teams and should compensate them and all those that help it achieve its goals through their collective efforts.When we initiate a group based or team based incentive programs, the focus always remains as a group and collectively as a team. All the individuals realize that they have to be a part of group and perform well, else whole group will not get eligible for incentives. When all the members find different ways to work more effectively they all get benefitted. It always encourages employees to innovate better solutions to achieve common goals. This means that all the employees feel equally responsible to drive the company forward by their actions. When individual only tires to achieve goals, the impact on the company as whole are quite less compared to whole group is engaged in the same activity to drive the company forward. That is the reason group output is more preferred because that has a potential to create great impact on company wide due to team structure and incentives being offered.

According to me, individual pay programs are more desirable. When employee is not sure about their capabilities or unwillingness to learn more, the incentive pay in addition to what they have already learned and earned with their regular pay. So there’s a guarantee on how much money they can bring to companies. While person focused pay plans determines what the person knows already with his experience and skills. It will not push a person to walk an extra mile. So if they are not learning and progressive in their career, they will not get the pay plus no incentives.