Beruflich Dokumente
Kultur Dokumente
AND TYPES
BY
ARUP BHATTACHARYA
Pvt. Ltd.
06/01/10 Arup Bhattacharya 1
MODULE 4
Incentives – definitions, Types of
incentives, Individual incentives:
Measured day work, Piece work,
Standard Hour, Gain Sharing, its
advantages and disadvantages,
Organization Wide incentives –
Scanlon Plan, Kaiser Plan, Profit
Sharing, Non – financial
incentives, Fringe Benefits –
Definition, Objectives, Types of
Fringe Benefits.
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INCENTIVES
• A reward or inducement for a specific
behaviour, designed to encourage
that behaviour.
• Motivates and encourages the worker
to produce more(quantitative) and
better(qualitative).
• Addition to wages which are
otherwise paid to the worker also
called “Payment by Results.” (ILO).
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Comparison
Incentive Scheme Advantages Disadvantages
Individual 1) Focuses individual Can be divisive
on achievement. 2) Disparity of
2) Better utilisation of amount drawn.
equipment. 3) Drooping down of
3) Reduced morale.
Group 1) Team-working.
absenteeism. 1)
4) Individual
Individual skills
earnings
2)
4) Less
Extrasupervision.
pay and extra undervalued.
can fluctuate
3) Shorter
output are training
linked. 2) Rivalry among
time. workers in a group
4) Can improve increases.
individual under- 3) Under-contributors
performance. may be bullied
5) Shorter training
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Setting up an Incentive
Scheme
• Identify the scheme's objectives.
• Consult with staff and trade unions
• Relate the scheme to the business'
remuneration system.
• Ensure that the planned scheme is
competitive.
• Decide on performance measures for
the staff.
• Run a pilot scheme and evaluate
results.
• Regularly review your scheme and
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CASE STUDY – 1
• Fact File
- Client : Towergate Partnership
- Event : ‘Chairman’s Club
Incentive Scheme’
- Location : New York.
- Attendees : 25