Compensation & Benefits Assignment 3

Unless otherwise stated, answer in complete sentences, and be sure to use correct English, spelling and grammar. Sources must be cited in APA format. Your response should be four (4) double-spaced pages; refer to the “Assignment Format” page located on the Course Home page for specific format requirements.

Part A 

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Objective: Describe plans that reward individual behavior and those that reward group behavior.

Indicate whether you agree or disagree with the following statement: “Individual incentive plans are less preferable than group incentives and companywide incentives.” Provide three (3) supporting facts to justify your choice.

Part B 

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Objective: Discuss how incentive pay and traditional pay systems differ.

There is currently a tendency among business professionals to endorse the use of incentive pay plans. Identify two (2) jobs for which individual incentive pay is appropriate and two (2) jobs for which individual incentive pay is inappropriate. Be sure to include your justification.

Part C 

Objective: Describe the most broadly used corporate-wide incentive programs—profit sharing and employee stock option plans.

Critics of profit sharing plans maintain that these plans do not motivate employees to perform at higher levels. Describe two (2) conditions under which profit sharing plans not likely to motivate employees.

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