Problem:
Incentive plans are rewards established by employers to boost productivity. Employers feel that employees will become more committed to fulfilling an organization's expectations. Incentives are also a symbolism of appreciation for employees that meets and exceeds organizational expectations, thus maintaining high quality performance levels.
Incentive plans are used as a motivator in most corporations. There are two types of incentives that organizations utilize such as monetary and non-monetary incentive plans. "Companies use a variety of techniques to motivate employees. Keeping motivated employees is the best way for companies to maximize work efforts, increase productivity, and accelerate profits. Large companies may use a mixture of monetary and non-monetary motivators. Bonuses, pay increases, and commissions are all examples of monetary motivators. An example of a non-monetary motivator would be recognition." (Phoenix Business, 2010). Incentive plans can be cost effective; however each plan implemented must be suitable for the work performed. Incentives are one of the most effective forces in enabling organizations to reach objectives, mainly because incentives are a venue that drives motivation. Performance measures are heightened when employees are motivated to increase productivity.