Often owners of firms who hire managers must install incentive or bonus plans to ensure that the:

Question

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Incentive or bonus plans are used to motivate managers to work harder and achieve better performance for the firm. These plans provide a direct financial reward for achieving specific goals or targets, which can help to increase a manager's motivation and commitment to the job. While ensuring financial security and positive profits may be important goals for the firm, these are not the primary reasons for installing incentive or bonus plans. Similarly, while maintaining employee morale is also important, this is not the primary purpose of incentive or bonus plans for managers.

Often Owners of Firms Who Hire Managers Must Install Incentive