Individual vs group incentive plans Research Paper

Individual vs group incentive plans - Research Paper Example The incentives can cause different levels of motivation to the employees; hence, creating a common objective in the long-run. From a human resource perspective, setting of individual goals will prevent the hiring of extra employees to perform the same task. The human resource department can also monitor the workers individually by introducing incentives and performance contracts. The individual plans will also reduce the cost incurred in dealing with human resources. Secondly, the employees have personal responsibilities over their outcomes. From an organizational view, the firm incurs benefits since it can specifically highlight the workers that do not meet the set standards. As a result, the workers will acquire the potential that is required to meet departmental goals and objectives. A human resource perspective shows that the presence of individual control will reduce the need for supervision in the firm. The workers will be solely responsible for their actions and will be aware of the repercussions. On the contrary, the individual incentives also incur disadvantages. For example, the plans do not lead to a healthy competition among the employees (Gneezy, Meier and Rey-Biel 195). The incentives may tend to favor some of the workers rather than others. Employees in the higher ranks may be issued with valuable motivation packages; hence discouraging those in the lower ranks. Moreover, the human resource department may also incur more costs to support all the workers through the incentive plans. Group incentives include the rewarding programs for collective performances. They are preferred due to various advantages to the human resource section and the organization at large (London and Oldham 37). Firstly, from an organizational perspective, the plans ensure that group objectives are met without any setbacks such as unskilled workers. The plans