This website uses cookies to ensure you have the best experience. Learn more

Incentive Plans Essay

857 words - 4 pages

Incentive plans can be one method of encouraging certain behavior within an organization. Healthways has an incentive program which is pay for organizational performance. According to Noe, et al, an effective performance plan should be linked to an organizations goal and employees should believe they can meet performance standards (Noe, Hollenbeck, Gerhart, & Wright, 2004).Incentives linked to profits and stock prices have a degree of risk for the employee. Profits and stock prices can fluctuate and in doing so, can effect the incentive to the employee. Incentive plans linked to profits are "likely to be most effective in organizations that emphasize growth and innovation" (Noe, et al, ...view middle of the document...

The risk for the company can be that the employees become too focused on one objective which is tied to the incentive instead of the entire overall plan. The employee may become disenchanted by the plan and not put forth the required effort. To deter this, an organization must set goals which are obtainable, equip the employees for success to reach the objectives, the employees must feel the reward system is fair, and the organization should have an alternate plan should the employees ignore other goals for the rewarded goals.Stock options are another incentive plan. Stock options can be very attractive to the employees as the company will offer company stock at a fixed price. If the market price of the company stock is higher than the options price, the employee can exercise their options and profit. The downside of stock options for the employee is if the company stock price drops below the option price, the employee will gain no benefit from the incentive.Loving what you do is a more powerful motivator than money or any other goody. No surprise there. What is surprising is that goodies actually undermine personal motivation. The more an executive gets employees to think about what they will earn for doing their jobs well, the less interested they will be in what they are doing. Edward Deci, a University of Rochester psychologist, did pioneering studies on this...

Other Essays On Incentive Plans

Job Differentiation Motivates Differently - CCSU - 8 Page Research Paper

2258 words - 10 pages obvious - if money is removed as an incentive, people aren't going to show up for work. The same cannot be said for removing goals, enriched work, or participation. Financial incentive programs could be used to ensure the employees security. Employers could be given a share in the capital growth of the company, through share ownership and by way of share purchase and option schemes to increase their motivation. Some bosses or managers use reward

The Strength of the Japanese Navy during World War II - St. Robert CHS/Grade 10 - Historical Investigation

2008 words - 9 pages include the Battle of  Midway and the Battle of the Coral Sea, crucial battles that would ultimately prove to be the turning point in the Pacific  theater. This knockout blow along with a series of defeats, gained them the control of the Western Pacific and the  Imperial Navy would collapse by the end of the war. But, would the Imperial Navy really move on into Canada? Turns  out primary documents revealed that the Japanese did not have plans to

Internal Control Paper

1663 words - 7 pages term used to describe the policies, plans, and procedures implemented by a firm to protect the assets of the organization. The internal controls are tools that the management, board of directors and other employees should abide by. Management is responsible for creating these policies and to encourage employees to abide by the policies (Moscove & Simkin & Bagranoff, 2003, p. 4).Strengths of Jamona's internal controlsSeveral strengths are

Detailed International Marketing Plan Outline: Part II

1803 words - 8 pages cooler air conditions for the amount of space.Promotional StrategyGE promotes the use of air conditioners with promotions. One promotional strategy used is the instant, discounted coupon marketed on the outside of the box. Promotions for GE are based on the quality reputation of GE products. GE hopes the instant coupon is an extra incentive to purchase air conditioners, allowing customers to receive the discount immediately instead of waiting for

Strategy Formulation Competitive Analysis - CBS - Strategy Formulation

1658 words - 7 pages their take-aways became part of a codified knowledge database. The Global Strategy Group also fostered a healthy competitive atmosphere. Employee benefit programs and incentive-based pay systems created security and drive for excellence. In summary, Samsung’s culture provided a benefit to both price and cost relative to its competitors. Recommendations Given existential threats from Chinese competitors, Samsung must implement effective solutions to

Leadership and management style of In-N-Out - Lynn University, Leadership & Management of Organizations - Essay

1661 words - 7 pages family has been committed to viewing employees as an extended part of their family. They are not just employees, they are associates, and are always treated with respect. They are one of the only fast food operations paying more than state and federally-mandated minimum wage requirements (Beaupre, 2009). That alone is an attractive incentive. However, In-N-Out takes it a step further. On their website (2014), it states that “in addition to

Adidas HR strategy - overview of HR strategy at Adidas - Human Resource Management - Essay

1349 words - 6 pages the employees. The main purpose of given bonus is to motivate the employees. Motivation is psychological process giving behaviour purpose and direction (Kreitner,2009, p.369 ). By given the bonus the employees will put more effort and hardship to the job. 2.5) Long-term incentive programmes (LTIP) This is specialising for senior manager, this is three year plans based on the achievement of financial as well as compliance target. So the senior

Economics - Macroeconomic policies - Hillsdale - Essay

2885 words - 12 pages stance, that alters the level of economic growth. The three stances are expansionary, contractionary, and neutral. An expansionary stance occurs where the government plans to increase the level of economic activity, either through a reduction in taxation revenue or an increase in expenditure, creating either a smaller surplus or larger deficit than in the previous year. This leads to a multiplied increase in consumption and investment and

Analysis Of Western Films "Shane" And "High Noon"

2387 words - 10 pages through their abilities rids a town of the corrupt elements that lurk from within. In many cases, however, the hero's skills are not enough. His relationship and interaction with the community serves as a marker to determine how successful he will be. In the films Shane and High Noon with heroes have attempted to integrate themselves into their respective communities. This gives them away to identify with the community, giving them incentive to

High Performance Organization

2696 words - 11 pages included an interest-based employee portal that employees use to self-service certain HR-related needs.Human resource management can help ensure that you get the right results-through people. Remember, you can do everything else right as a manager---lay brilliant plans, draw clear organization chart, sets up modern assembly lines, and use sophisticated accounting controls---but still fail, by hiring the wrong people or by not motivating subordinates

Thesis on Healthcare in the United States - UT Austin ACC366P - Thesis Research Paper

3027 words - 13 pages healthcare to workers.[footnoteRef:5] These tax benefits sound great in theory – they’re a good incentive for companies to provide for their own – but is a tax cost to the government that is entirely unnecessary under a Medicaid-for-all system, something to be covered in more depth during analysis of what this system would look like in the US Tax Code. [4: Gould, Jens Erik] [5: PNHP] Many argue that encouraging employer-sponsored healthcare is

Similar Papers

Argumentative Essay On Healthcare Bevill State Community College Argumentative Essay

599 words - 3 pages point where they enjoy a competitive advantage through the ideal designation. It is clear that the value-based customer incentive system in healthcare is crucial in the US. This in itself is an effort to utilize cost sharing as well as related incentives to update customers of high-quality cost-effective providers and health plans. These approaches have an increased likelihood of success in the case corresponding financing reforms are introduced

The Cafeteria Plan Essay

641 words - 3 pages employer and for the employee, but over all the cafeteria plan is one of the most important packages employers can offer to it's employees.Advantages to the employers for offering a cafeteria plans is to improve employee morale and to create a more competitive recruitment offer. This cafeteria plan also offers the employer way of getting a big tax break. The employee's don't pay as much taxes so the employer won't pay as much taxes. This is also a

Case 4 Mkt 240 Japanese Salesperson Mkt 240 Case Study

901 words - 4 pages companies operating in Japan are experimenting with incentive plans. Marco and Company, a belting manufacturer and Japanese distributor for Power Packing and Seal Company, was persuaded by Power to set up a travel plan incentive for salespeople who topped their regular sales quotas. It would be worthwhile to increase market share presence by having the employees enjoin in a more group effort and increase in sales collectively. If employees were to

Riordan Manufacturing Gap Analysis

2295 words - 10 pages development area of the business.The second issue that needs to be looked into is the company's employee incentive program. This concern is not only with management but also with current employees. The sales incentives at this present time is structured for each individual salesperson instead of a team incentive approach. This is an issue with the changes which have already been put in place, changing the sales approach from an individual incentive to a