Incentive Plans - Week 1 Reflection

Incentive Plans- - Incentive Plans Incentive plans happen to be considered by most managers a way to inspire and motivate their employees yet the

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Incentive Plans Incentive plans happen to be considered by most managers a way to inspire and motivate their employees, yet the article by Alfie Kohn, “Why Incentive Plans Cannot Work” explains why an incentive plan may have an adverse effect. The premise behind an incentive plan is to motivate an employee to perform above and beyond, or at the very least for the employee to work as hard as possible to be able to receive the reward that is being offered and that they continue to work just as hard after the reward has been received; this would allow for a change in behavior. Some common examples of incentive plans would be that of a quarterly or yearly bonus, company stock options, or even something as simple as a gift card to a nice restaurant. The idea of receiving a bonus as an incentive is that you will increase business or somehow increase the amount of money that the company is making, often times people will work only as hard as needed to receive the bonus, whereas if you did not know that you may receive a bonus based on a company’s sales you will be working hard only because it is your job,
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 11/01/2011 for the course MBA 575 taught by Professor Dr.tvorik during the Spring '11 term at St. Leo.

Page1 / 4

Incentive Plans- - Incentive Plans Incentive plans happen to be considered by most managers a way to inspire and motivate their employees yet the

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online