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Unformatted text preview: d on actual differences in individual, team, or organizational performance and not seen as entitlements. When incentive budgets are large enough to reward exceptional performance. When overhead costs are controllable. Goals are clear and obtainable. Employee Opposition to Employee Opposition to Incentive Plans Production standards are set unfairly. Incentive plans are really “work speedup.” Incentive plans create competition among workers. Increased earnings result in tougher standards. Payout formulas are complex and difficult to understand. Incentive plans cause friction between employees and management. Successful Incentive Plans Successful Incentive Plans Employees have a desire for an incentive plan. Employees are encouraged to participate. Employees see a clear connection between the incentive payments they receive and their job performance. Employees are committed to meeting the standards. Standards are challenging but achievable. Payout formulas are simple and understandable. Payouts are a separate, distinct part of compensation. Individual Incentive Plans Individual Incentive Plans Straight Piec...
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