Hi, need to submit a 750 words essay on the topic The Effect of Incentive Plans in attaining the Organizational Objectives.
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Basically the organizational objectives are intended by group of people who belong to the organization. The incentive planning is one of the strategies of the organizations. The incentive is a sort of gainsharing, which is promoted with the intension of encouraging the employees so that they extend their cooperation and work. The incentive is nothing but sharing a certain amount of profit to the employees. This is expected to help reaching the organizational objectives.
Let us consider a model incentive planning. The total amount decided to be shared as incentive per year is 1 million dollar. This should be paid as a compensation for the work done by the employee. This might include a group or team that has been considered under the bonus scheme. The over all percentage that has been left to be distributed among the selected group or team would cover some 10% from the total profit. Incentive should be divided according to the responsibilities carried by the
employee. The employees who deserve the incentives are managers and middle managers, under whom they control a group of employees. For example managers of various departments such as accounts, marketing, production, maintenance etc. are required to reach the strategic level, in order to do that they manage the group of workers who work in their concerned department under them.
Members of the organization keep these objectives in mind and work accordingly. An incentive planning help the objective keep going in its way uninterrupted by any kind of break in running the organization. The incentive could be defined in other words as proposing a deadline for the concerned employees, expecting them to reach specific or given milestones in the particular area or department.