Do you have psychic powers


What is the Best Incentive?

Incentive schemes have been much criticisedor re-training that might be required?23.
in recent years, and it is quite true thatHave you agreed the principle of using work
some schemes have been singularlymeasurement with the trade unions and
unsuccessful. Their failure, however, hasemployee representatives?24. Will you be
often been the result of inadequate planning,undertaking the training of any employee
rushed introduction, or not thinking throughrepresentatives in work study techniques?25.
such a scheme properly. These points shouldAre the mechanics of your scheme simple
not be used to generally condemn other moreenough to enable all employees to fully
successful applications.Whether anyunderstand how their pay is calculated?26.
particular incentive scheme achieves longWhat standards will you use to evaluate
term success depends initially on theperformance to ensure that a proper balance
thoroughness with which the current workingis maintained between:a. Increased
situation is reviewed, hence the need tooutputb. Maintaining qualityc. Efficient use
re-look at some key Action Points, andof equipment or materials?27. How will you
question why you need an incentive scheme.1.relate payment to performance? e.g. in direct
Increase  in  earnings  for  employees?proportion to output?28. On what length of
time will you base payment? e.g. hour, shift,
2.  Increase  in  output?week?29. Will you gear the scheme to the
individual, working group, department or
3.  Improvement  in  quality?factory?30. Will you apply the scheme in some
way to direct as well as indirect personnel?
4.  Better  mobility  of  labour?If not, how will the problem of increased or
decreased differentials be solved?31. Will
5.  More  efficient  methods  of  working?official disputes concerning the operation of
the incentive plan be handled through the
6.  Improvement  in  safety?normal negotiating and disputes machinery?32.
What will be the principles governing payment
7.  Higher  housekeeping  standards?for 'waiting time' or unmeasured work?33.
Will any scheme you introduce be on a gradual
8.  Reduction  in  absenteeism?basis or do you intend to apply it to all
appropriate sections at the one time?34. How
9.  Reduction  in  labour  turnover?will you calculate holiday pay for
pieceworkers?It's notoriously difficult to
10.Reduction in overtime working?Any ofput together an incentive scheme that
these points or a combination, will determinemotivates all of its targets, and that
how you introduce and communicate such acontinues to do so over an extended period.
scheme. The following questions will act asYou may be looking to get the most from your
an "aide memoire".11. Does the workstaff by increasing motivation, improving
necessitate skilled, semi-skilled ormorale and encouraging efficiency.Incentive
unskilled labour?12. Can individual skill beawards are a way of rewarding employees and
fully applied when manipulating machines etc.others with cash, goods or holidays rather
or is the employee's quantity and qualitythan increases in pay. There are Two Basic
of output regulated to a large extent byTypes Of Incentive Scheme, Financial and
factors outside his/her control?13. Does theNon-FinancialSchemes can vary from national
level of output remain steady throughout thepromotions to a prize raffle held by a small
year or is it subject to seasonalfirm.
variations?14. Is production organized on a
process flow line, batch or jobbing basis?15.Rewards of goods or holidays will usually
Have your current production methods beeninvolve the use of a voucher.Awards may be
recently reviewed for maximum efficiency?16.linked to sales performance, good
Is any new machinery or plant, to betimekeeping, safety or production records, or
introduced in the near future, likely tomay involve participation in a lottery or
upset the standard upon which an incentiveprize draw.There should be increasing
scheme might be based?17. Have you sufficientconsistency in the ways that reward,
qualified staff to introduce an incentiverecognition and incentives are offered to
scheme, or alternatively, have you onecustomers, staff and distributors.
qualified employee who is capable of trainingParticipants should always have the power of
other staff in work study techniques?18. Oncechoice, enabling them to self-target and work
the scheme is introduced, will you have thetowards things that are exciting or important
necessary number of staff to be able to keepto them.Incentives that are always won by a
it under constant review, and to introducesmall group of high performers, breed more
modifications where necessary?19. Will theresentment than motivation, while the high
present staff in the wages department be ableperformers themselves soon become bored with
to cope with bonus calculations etc. withoutthe repetition of holidays, and activities
additional help?20. Are other parts of thethat are open to them.The aim of an incentive
organization such as Production Control,scheme is to improve the performance of your
Maintenance, Distribution etc. geared to copebusiness, whether it is your employees,
with the increased flow of materials andcustomer's or supply chain.As a result the
output that are likely to result?21. Are yourmost successful incentive schemes tend to be
present channels of communication, boththose matched to the individual's
formal and informal, capable of coping withrequirements, but which still appeal to the
the dissemination of detailed information tocompany as a whole.You will find that with a
all employees, on the workings of anylittle extra thought, allied to a willingness
proposed incentive plan?22. Have you theto be creative, can make a quantum difference
necessary facilities, away from theto the effectiveness of an incentive
production area, for any operative trainingprogramme.



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