What are the two basic requirements for an incentive plan to be effective?

Question

Can you give examples if it possible to support your answer?

Answer 1

For an incentive plan to be effective, goals are to be defined, when goals are defined, it's helps the worker work with a target and consistency is needed to continue till you reach your target.

Answer 2

The two basic requirements for an incentive plan to be effective are that it must be tied to specific, measurable goals and offer meaningful rewards that are valued by employees.

Answer 3

The two basic requirements for an incentive plan to be effective are that it must be clearly defined and it must be linked to performance.

Examples of clearly defined incentive plans include bonus plans that are based on meeting specific goals or reaching certain milestones. Examples of incentive plans that are linked to performance include commission plans that are based on sales or productivity.

Answer 4

Two basic requirements of an effective incentive plan include: • Employees should believe that accurate methods and procedures are used to rate employee performance • Incentives (rewards) must be based on performance. 4. Outline the advantages and disadvantages of individual incentive plans.