Podcast
Questions and Answers
Which category of incentive pay plans rewards employees whose work is performed independently?
Which category of incentive pay plans rewards employees whose work is performed independently?
What is the definition of incentive pay or variable pay?
What is the definition of incentive pay or variable pay?
In which type of work environment do group incentive plans work well?
In which type of work environment do group incentive plans work well?
What are gain sharing programs?
What are gain sharing programs?
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What are piecework plans?
What are piecework plans?
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Study Notes
Incentive Pay Plans for Independent Work
- Individual Incentive Pay Plans reward employees whose work is performed independently.
Incentive Pay Definition
- Incentive pay, also known as variable pay, is compensation that is tied to an employee's performance or the performance of the organization.
Group Incentive Plans
- Group incentive plans work well in team-based work environments where employees collaborate to achieve common goals.
- Examples of group incentive plans include gainsharing programs and team bonuses.
Gainsharing Programs
- Gainsharing programs reward employees for improvements in organizational performance, such as productivity, efficiency, or cost savings.
- These programs typically allow employees to share in a percentage of the gains achieved.
Piecework Plans
- Piecework plans are individual incentive pay plans that reward employees based on the number of units they produce.
- This type of plan is often used in manufacturing and assembly jobs.
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Description
Test your knowledge on incentive pay and variable pay with this quiz! Learn about the different types of incentive pay plans and how they can motivate employees to achieve work objectives.
