What Is the Purpose of Incentive Pay Plans

question 259

Short Answer

What is the purpose of incentive pay plans?
They provide a mechanism for managers to constructively discipline troublesome employees
To motivate high performance
To reduce the amount of wages payable to employees
They permit accurate and honest performance appraisals
Compliance with federal law which requires incentives such as social insurance and workers' compensation

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Definitions:

Vision

The faculty or state of being able to see, or the ability to think about or plan the future with imagination or wisdom.

Adventure

An exciting or very unusual experience; participation in exciting undertakings or enterprises.

Nihilism

The view that nothing has any value or that there are no values.

Altruism

The thesis that one ought to act for the sake of the interests of others, rather than one’s own interests alone. See also ethical altruism; psychological altruism.