When 8850 Form Incentives 2016-2024

Today, we will discuss different incentive plans that organizations can use for individual employees, salespeople, executives, and managers, as well as some organization-wide plans. We will not discuss any motivation theories discussed in your textbook, so be sure to read about them in Chapter 12. In order to have an idea of how incentives work, we need to spend some time discussing what motivates people. What motivates you to do things, not just in work, but in all aspects of your life? Is it money or flexibility in your schedule? Everyone is different, and it is important to note that no single motivation technique will work for every employee. Incentives are financial rewards above and beyond regular salary. Frederick Taylor popularized the theory of scientific management and the use of financial incentives in the late 1800s. He believed employees engaged in something known as systematic soldiering - the tendency of employees to work at the slowest pace possible and produce at the minimum acceptable level. He believed that by providing financial incentives, people could be motivated to work harder. However, he did not take into account the law of individual differences, which says that people differ in personality, abilities, values, and needs. Thus, people react to different incentives in different ways. Managers should be aware of employee needs and fine-tune the incentives offered to meet those needs. They should also keep in mind that money is not the only motivator. Research shows that a large majority of employees enjoy travel and would love to have their employer fund a vacation for them. However, not all organizations, especially small businesses, can afford to do something of this magnitude. Various types of incentive plans can be used. Let's briefly discuss each one, beginning with individual incentives. There are two main types of individual incentive plans: piecework plans...