A major problem of group incentive plans is performance targets are not correctly set.

Question

Quizplus · Accepted Answer

Setting performance targets is a crucial aspect of designing an effective group incentive plan. If the targets are too difficult to achieve, it can lead to demotivation and frustration among the team members. On the other hand, if the targets are too easy, it will not provide enough motivation to push the team to perform at their best. Therefore, it is important to set challenging but achievable targets based on the team's capabilities and the organization's goals. Failure to set appropriate targets can result in the failure of group incentive plans.

A Major Problem of Group Incentive Plans Is Performance Targets