Group incentives are reward (may be financial or non-financial) given to the group of employees for their collective effort to meet or exceed predetermined standard. Main advantages and disadvantages of group incentives can be expressed as follows:
Advantages Or Benefits Of Group Incentives
1. Suitable For Interdependent Jobs
Group incentive plan is very suitable when the job is interrelated and the output of individual cannot be measured separately.
2. Equal Share
This plan does not discriminate employees while distributing rewards. All employees get bonus or incentive equally in the same proportion.
3. Promotes Group Work
It encourages the employees to work together for achieving the common goal. It leads to better performance and higher level of output.
4. Encourages Team Spirit
Group incentives promotes cooperation and collaboration at the workplace. It helps to develop team spirit while doing the job.
5. Cost Reduction
It inspires employees for higher level of performance and increases willingness towards the job. It increases productivity and reduces production costs.
6. Higher Satisfaction
It helps to increase employees' quality of work life and also increase job satisfaction.
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Disadvantages Or Drawbacks Of Group Incentives
1.Chance Of Resentment
It gives emphasis on group work and ignores individual's effort. So, high performing employees may not be satisfied with this incentive plan and may lead to resentment.
2. Chance Of Rejection
It distributes reward equally to all the employees which may not be accepted by hard-working and top-performing employees.
3. Self Deception
Group incentive may create the problem of self-deception among the employees.
4. Decrease Performance
Group Incentive focuses on team work which may lead to decrease in the performance of individual employee.
