Group incentive pay plans tend to use a broader range of performance measures than do individual-oriented plans.

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Group incentive pay plans typically focus on overall team or department performance and therefore consider a broader range of performance measures, such as team productivity, customer satisfaction, and quality improvement. In contrast, individual-oriented plans often use more specific and narrowly defined measures, such as sales quotas or individual performance reviews.

Group Incentive Pay Plans Tend to Use a Broader Range