types of incentive plans

Pacific institute of
Management
Presenter - Savani Malot
Mba PU II Sem
 What is incentive plans

Companies wants every individual to think of

performance to succeed in a competitive business
environment . Every employee has to work hard
deliver result on a daily basis. Many companies
have come out with compensation program that
offer additional benefit based on

Individual ,group or organizational performance .

Incentive plans are methods in which

employees of an organization are kept

motivated for the work that they do, and are

give incentives on reaching or accomplishing

certain organization goals.

Type of incentive plans
 Individual plans

Based on productivity

 Taylor’s differential piece rate system

 Merrivk’s multiple pieces rate system

 Gantt task and bonus plan

 Individual plans

Based on time

Halsey plan (standard hour plan )

Rowan plan

Emerson’s efficiency plan

Bedeaux plan
 Group incentive plans

Priest man’s plans

Profit sharing plan

The scanlon plan

Reduction in labour cost

 Advantages of incentive plans
1. Increased output lowers the cost of
production
2. To attract and retain employees and reduce
turnover
3. Less direct supervision is needed to keep
output at a reasonable level
4. Provides additional income ,over and above
wages to employee .
Thank you