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Incentive plan
- 2. Incentive Plan Wage Incentive also called ‘Payment by results’, is anything that attracts the worker and motivates him to work. It determines their standard of living and their attitude towards the company. Incentive schemes provide payment based on either individual output or group output. The use of incentive assumes that people’s actions are related to their skills and ability to achieve important Goals.
- 3. Characteristics of Incentive Plan Incentives have direct linking to performance. Incentives induce the employee to move from existing Level of performance to optimum achievable Performance. It helps to improve level of technology and this increase productivity. Incentives vary From person to person , depending on their performance. Minimum wages are guaranteed to all workers.
- 4. Benefits of Incentive Plans Incentives are beneficial to both employer and employees. They help to attract and retain employees in the organization and improve employer- employee relations. It helps to reduce employee absenteeism and turnover. Incentive motivates people to work more and thus creates culture of efficient and motivated workforce. Wage incentive is concerned with an effective utilization of manpower, which is the cheapest, quickest and surest means of increasing productivity.