Question

this question is from"Human resources" subject.
What different types of information are available to Canadian managers regarding incentive plans?

Answer 1

The basic purpose behind providing incentives to employ is to motivate them so as to increase production. Studies prove that employees feel more attached to their companies and their success and work harder to achieve it once they are provided with an incentive plan.

Incentives can be of many forms. Some of them are:

1) Stock options : It's the type of incentive where companies provide the employees the shares of the company as incentives. The shares issue will also pay them dividend also which is an additional incentive. This is an attractive benefit.

2) Profit Sharing : A part of the profit is shared with the employee. For this to happen, an employee must prove that he is qualified to receive this incentive by meeting the company standards.

3) Performance Unit : It is obtained when a company achieves a predetermined milestone as part of its term plans. The performance unit is varied according to companies and the incentives are to executives.

4) Bonus Pay : It is common in sales, marketing and production. The company pays a bonus when the employees reach a predetermined goal. The bonus is in monetary terms.