Incentive Plans Paper

Essay by tercel02University, Bachelor'sA, September 2009

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The word incentive can have two separate meanings. One is in the form of a noun, "something, such as the fear of punishment or the expectation of reward that induces action or motivates effort" (Houghton Mifflin Company, 2000). The second meaning is in an adjective form, "serving to induce or motivate: an incentive bonus for high productivity" (Houghton Mifflin Company, 2000). In every company it is beneficial to the ultimate growth and output of the business to be able to not only provide individual employees with hourly compensation for his or her work, but offer incentives that assist in making the business even more successful. By gifting associates with outside motivation this causes employees to go above and beyond their specific position in an effort to achieve that recognition or additional reward for their exertion. Focusing on a multibillion dollar corporation such as Wal-Mart, who offers incentives that keeps their employees working much further than their title in the company and motivates them to work as a team.

As Sam Walton the founder of Wal-Mart once said about rewarding his employees "In turn, they will treat you as a partner, and together you will all perform beyond your wildest expectations" (Walton, 2005).

If an employee is shown appreciation by the employer a bond is made and therefore, a commitment is formed. Incentives are a method of a payment appreciation shown by the employer to the employee. According to Noe, Hollenbeck, Gerhart, and Wright 2007 "Pay is a powerful tool for meeting the organization's goals. Pay has a large impact on employee attitudes and behaviors. It influences which kinds of employees are attracted to (and remain with) the organization. By rewarding certain behaviors, it can align employees' interests with the organization's goals." Incentives can be a...