Group Incentive Plans:
In the group incentive plan, the incentive is not for individual employee but for the group of employees working in one department or section. Such group incentive plan may cover the entire labour force of a production unit (plant-wide incentive plan). Here, the group of employees has to work efficiently but in a collective manner. They will work collectively (i.e. as a group), give more production and share the benefit. Initially, the benefit will be given to the group and thereafter, it will be divided among the members of the group. Managements/employees are interested in group incentive plans while efficient employees are interested in individual incentive plans. Production activities are now conducted in an integrated manner and naturally incentives should be offered to employees. Group incentive plans are better as they encourage team spirit and develop cooperation and understanding among the employees. This avoids wastages and promotes productivity. Types of incentive plans are
- Profit Sharing.
- Labour Co-partnership
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