Keytechi and Sons,a marketing company,has implemented a few incentive plans to motivate its employees.The organization encourages employees to learn new skills and cooperate with others.Which of the following will contribute to employees' feeling that the organization's incentive pay plans are fair and something to pursue?
A) Employees must be able to understand the requirements of the incentive pay plan.
B) Equal incentives should be offered to all the employees of the organization.
C) Employees must be the key decision makers when creating incentive pay plans.
D) The company should not inform the employees about incentive plan changes.
E) Employees should make decisions that are only in favor of their interests.

Question

Quizplus · Accepted Answer

To feel that incentive pay plans are fair and worth pursuing, employees must be able to understand the requirements of the plan clearly. If the plan is not clear, then the employees may feel that the plan is unfair or that they did not have a fair opportunity to earn the incentive. Thus, it is important to ensure that the incentive plan is well-communicated, easily understandable, and achievable. Option B is incorrect since equal incentives may not be applicable to all employees as they may have different roles and responsibilities. Option C may not always be possible as the management may have more understanding of the company's financial standing and the need to keep incentives in a certain range. Option D is outright wrong as employees should be informed about any changes made in incentive plans. Finally, option E highlights a self-centered attitude towards incentive plans which is not desirable for a team working to achieve organizational goals.

Keytechi and Sons,a Marketing Company,has Implemented a Few Incentive Plans