Describe three options for offering individual incentives.
What will be an ideal response?
Varies but should include three of the following incentives. Individual incentives can come in many forms. Bonuses are lump sum payments for reaching a goal that don’t change base pay. Commissions can also be used as incentives for sales. Like bonuses, they don’t add to base pay, but they are usually calculated as a percentage of the value of the sale. Merit pay is different in that it does change base pay going forward. However, merit pay is frequently too small to be considered a significant reward. Piecework and standard hour plans also work as incentives. Under piecework, the employee gets paid for each item produced, so faster workers get paid more. Under a standard hour plan, they are paid based on a standard time allowed to perform an action, so top performers may be paid for more hours than they actually work. Both plans may give rise to quality issues if not monitored. Finally, there are recognition and other nonmonetary rewards, which are very powerful incentives if used in the right ways.
You might also like to view...
Which statement is NOT true about polar covalent bonds?
A. The larger atom in a polar bond attracts the electron more strongly than the smaller atom. B. Polar covalent bonds are important in the characteristics of water. C. Electrons are shared unequally in a polar covalent bond. D. The oxygen of a water molecule is electropositive relative to the hydrogen. E. When covalent bonds are nonpolar, the electrons are shared fairly equally between the atoms.
Which of the following would not appear on a multiple-step budgeted income statement for a manufacturer?
A) gross profit B) income tax expense C) operating income D) salaries payable
Which of the following product mix pricing strategies involves pricing multiple products to be sold together?
A) product line pricing B) product bundle pricing C) optional product pricing D) by-product pricing E) captive product pricing
____________ lies where the product has a strong feature in an area that is important to the target and the competition is weaker.
a. Position b. Competitive advantage c. Differentiation d. Brand position e. Brand equity