Which reward is best suited to the following situation: Production workers making close to minimum wage; the manager wants to introduce a pay for performance plan that will increase production numbers.Work is interdependent.Production output is measured daily.
A)Individual bonus based on a percentage of company profits, paid at the end of the year.
B)Group incentive; reward is a grocery store gift certificate of $100 awarded weekly.
C)Merit increase determined annually and typically 1 to 3% of base pay.
D)Individual incentive, reward is two tickets to Disney World awarded at the end of the year.
E)Group incentive; reward is ten cent increase to base pay for the next year's pay.

Question

Quizplus · Accepted Answer

A group incentive is the best choice for this situation as work is interdependent and production output is measured daily. A group reward will encourage workers to work together to meet production targets rather than focusing on individual performance. The grocery store gift certificate of $100 awarded weekly will also provide an immediate reward and motivate workers to maintain high levels of production. Individual incentives or merit increases may not be effective as the workers are making close to minimum wage, and a bonus based on company profits may not be relevant to their performance as they may not have direct control over profits. A ten cent increase to base pay may not be enough to motivate the workers to increase production numbers.

Which Reward Is Best Suited to the Following Situation: Production