BADM*4000 Lecture Notes - Lecture 14: Business Link
Document Summary
A plan whereby most or all employees share in the company"s profits. A trust is established to hold shares of company stock purchased for or issued to employees. The trust distributes the stock to employees on retirement, separation from service, or as otherwise prescribed by the plan. An incentive plan developed in 1937 by joseph scanlon and designed to encourage cooperation, involvement, and sharing of benefits. An incentive plan that engages employees in a common effort to achieve productivity objectives and share the gains. Firms get what they pay for (people can rush their tasks and product lower quality work) Pay is not a motivator (many only provide temporary motivation to gain the incentive then when it is remove the motivation goes with it) Rewards rupture relationships (many reduce team work due to incentives that are based on individual performance) Rewards may undermine responsiveness (prevent employees of complete tasks that are they primary goals)
