ECONOMICS
INCENTIVES
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
sales
|
|
|
input
|
|
|
productivity
|
|
|
profit
|
Detailed explanation-1: -What is an Incentive Wage Plan? An incentive wage plan offers an increased level of compensation when employee performance exceeds a threshold level. These plans are intended to incentivize employees to become more efficient and effective in completing their designated tasks.
Detailed explanation-2: -(c) Productivity linked Wage Incentives Many wage incentives are linked with the increase in productivity at individual or group level. For example, a worker is paid 50 rupees per piece if he produces 50 pieces a day but if he produces more than 50 pieces a day, he is paid 5 rupees extra per piece.
Detailed explanation-3: -The types are: 1. Time Based Plan 2. Production Based Plans 3. Group Incentive Plans.
Detailed explanation-4: -Reward systems tied to the performance of individual employees are known as individual incentive plans. These plans depend on category of workers for which they are designed. Under this plan mostly a certain pay rate is guaranteed and the rewards represent additional compensation.