Benefits-Drawbacks

Advantages And Disadvantages Of Group Incentives

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.

advantages disadvantages group incentives

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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Advantages And Disadvantages Of Individual Incentives

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.

Advantages And Disadvantages Of Individual Incentives

Keshav Poudel Business , Education

Individual incentives are financial or non-financial rewards given to individual workers on the basis of performance standards like quantity, quality, attendance etc.

Advantages Or Benefits Of Individual Incentives

1. Helps To Inspire Employees

Individual incentives motivate the employees to do their best and inspires them to learn from top performers.

2. Increased Productivity

Employees are motivated to exceed the given target. It helps to increase productivity.

3. Job Satisfaction

Individual incentives help to achieve higher level of job satisfaction among employees.

4. Cost Minimization

It helps to increase employees performance which leads to decrease idle time and increase productivity. Increased productivity helps to reduce production costs.

5. Low Staff Turnover

It helps to retain top performing employees in the organization. It results in low employee turnover.

6. Healthy Competition

It creates healthy competition among the employees at the workplace.

advantages disadvantages individual incentives

7. Clarity

Individual incentives can be structured and applied easily. It is easy to determine outcomes and tracking employees performance.

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Advantages And Disadvantages Of Group Incentives

Disadvantages Or Drawbacks Of Individual Incentives

1. Lack Of Team

It inspires individual employees for better performance. So, it lacks team work at the work station.

2. Decreased Quality

Employees may be motivated to increase output and focus on the quantity only. It may reduce the quality of the product.

3. High Employee Turnover

Individual incentive plan discourages low performing employees. So, they may decide to leave the organization which results in high employee turnover.

4. Chance Of Conflict

There will be a chance of conflict between employees' individual goals and organizational goals which leads to mistrust between management and employees.

Advantages And Disadvantages Of Performance Appraisal

Keshav Poudel Business , Management

What Is Performance Appraisal ?

Performance appraisal is a technique of evaluating the strength and weakness of employees' performance in the organization. It helps the management to identify the area of improvement and to determine the training and development need to boost their performance.

Main advantages and disadvantages of performance appraisal can be expressed as follows:

Advantages Or Benefits Of Performance Appraisal

1. Performance Report

Performance appraisal helps the management to assess employee's job performance by providing past report.

2. Determining Training Need

It provides detailed information regarding skill, knowledge and past performance report of employees. So, it helps to determine training and development programs to enhance future performance.

3. Guidance

It helps the employees to review their mistakes and guides to correct them in order to avoid possible errors in the future.

advantages-disadvantages-performance appraisal

4. Corrective Action

Performance appraisal identifies the deficiency of workers. So, appropriate corrective actions may be initiated in time.

Also Read:

Advantages And Disadvantages Of Individual Incentives

5. Motivation

It helps to determine rewards and compensation scheme on the basis of performance. So, employees are motivated for better performance.

6. Better Communication

It help to establish better two way communication in the organization.

7. Proper Pay Structure

It helps the organization to set proper pay structure of each individual on the basis of their performance.

Disadvantages Or Limitations Of Performance Appraisal

1. Time Consuming Process

It is a lengthy process of evaluating employees' excellence. It takes more time especially in the large organizations with many subordinates.

2. Stressful Process

It is a stressful process of rating employee's performance.

3. Potential Of Inaccuracy

There is a chance of inaccuracy due to wrong document and irrelevant records of appraisal period.

4. Biased

Rating of appraisal's outcome may be biased because of different interpretation of management and employees.

Advantages And Disadvantages Of Off The Job Training

Keshav Poudel Education , Management

What Is Off The Job Training ?

Off the job training is conducted outside the company or workplace. In this method, trainees learn through lectures, case studies, conferences, demonstration, modeling, computer, role play etc.

Benefits Or Advantages Of Off The Job Training

The main advantages of off the job training can be described as follows:

1. Effective Method

Off the job training is well organized and conducted by experts and specialists which makes the training program more effective.

2. High Productivity

It is conducted out side the organization or workstation and trainees are not involved in the production process. Only trained and skilled workers are placed at the work place. So, productivity will be higher.

3. Minimize Errors

Under this method, newly appointed employees are trained outside the production area and skilled and trained manpower perform the job. So, it lowers the production errors.

4. Economical

In this method, a large number of employees can be participated and orientation can be provided at a time. It helps to reduce training costs. So, it is a cost effective method.

5. No Disturbance

Trainees are not allowed to work in the actual work place. So, production process will not be disturbed and existing employees can do their jobs smoothly.

Disadvantages Or Drawbacks Of Off The Job Training

Some of the major drawbacks of off the job training are as follows:

1. More Expensive

This method of training may be very expensive due to extra space, accommodation and transportation costs and experts' fees etc.

2. Less Effective

Off the job training is less effective than on the job training method because it is conducted outside the working environment. Employees need extra induction training to handle their job.

3. Dissatisfaction

Training is conducted artificially outside the work place. So, employees cannot learn properly in this training method. Dissatisfaction may arise among the employees.

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Advantages And Disadvantages Of On-the-job Training

Benefits Of Employee Training

4. No Production

Trainees cannot take part in the production process. So, potential output and time is lost in this method of training.

Advantages And Disadvantages Of On The Job Training

Keshav Poudel Business , Education

What Is On The Job Training ?

On the job training is conducted at the actual work place which helps the newly appointed employees to learn by performing the job. Simplicity, economical, time saving, quick learning etc, are some advantages of this training method. On the other hand, it has some drawbacks such as possibility or production error, low productivity,disturbance etc.

Advantages Or Benefits Of On The Job Training (OJT)

Some of the notable advantages of on the job training can be highlighted as follows:

1. Simple Method

OJT is very simple and easy method of providing training. So, it is the most common and widely used method to train the fresh employees.

2. Economical Method

Under OJT method, training is conducted in the workplace by actually performing the jobs. It does not need extra space, materials, resources and time for training. So, it is cost effective method of learning.

3. Time Saving

Employees learn their jobs and duties by performing at the workplace. So, they can gain more knowledge in the short period of time. So, on the job training is time saving method of conducting training.

4. Quick Learning

OJT helps new employees to learn at the actual workplace with actual materials and equipment. Hence, it helps them to learn quickly.

5. Immediate Productivity

On the job training follows the principle of "Learning By Doing". So, employees are actually working at the time of training. Therefore, immediate productivity is possible while conducting training within the workstation.

Disadvantages Or Drawbacks Of On The Job Training (OJT)

The main disadvantages of on the job training can be highlighted as follows:

1. Low Productivity

Rate of production and quality of product may be affected while conducting training at the workplace.

Also Read:

Advantages And Disadvantages Of Off The Job Training

Benefits Of Employee Training

2. Production Errors

There will be a high chance of errors in production process because newly appointed workers are not skilled and experienced.

advantages disadvantages on the job training

3. Disturbance

Learning process of trainees may disturb the work process of existing employees in the workplace.

4. Chance Of Accident

Under on the job training, trainees are required to work with different machines and equipment. It maximizes the chance of accident (especially in the manufacturing industries).

Pros And Cons Of On The Job Training In Short

Pros:

- It is simple and commonly used training method

- It is economical and time saving

- It helps employees to learn quickly

- It can be conducted in short period

- Trainees can get immediate feedback

Cons:

- It may create disturbance at the workplace

- It may lower productivity and quality

- It increases the chance of errors in the production process

- It maximizes the possibility of accident

Benefits Of Employee Training

Keshav Poudel Education , Management

Main advantages or benefits of employee training can be expressed as follows:

1. Higher Performance

Training helps to upskill employees by enhancing their skills and knowledge. So, they show high performance at the workplace. Training also helps the employees to develop decision making and problem solving skills.

2. Higher Productivity

Well trained employees are more committed and motivated towards the job. So, they make proper utilization of resources and minimize wastage. This definitely leads to higher productivity.

3. Quality Of Work

Properly trained employees are aware of faults and operational errors. So, training helps to maintain quality of work by minimizing faults and errors.

4. Less Supervision

Well trained employees can perform their job effectively and efficiently because they are motivated and devoted towards their job. So, self-reliant employees need less supervision.

5. Cost Minimization

Because of higher productivity, regular production, minimization of wastage and less supervision costs, training helps to reduce overall production and administrative costs of the business.

6. Customer Satisfaction

Employee training ensures productivity improvement and better customer service. So, it helps to improve customer satisfaction.

7. High Morale

Training and development programs provide opportunity for employees to learn and improve their skills and potential. It helps to reduce absenteeism and dissatisfaction. So, training helps to increase employee morale.

8. Adjust The Change

Proper training helps the employees to cope up with the situation and adjust themselves according to the environment.

Also Read:

Advantages And Disadvantages Of On The Job Training

Advantages And Disadvantages Of Off The Job Training

9. Job Satisfaction

Employee training and development programs helps to increase job satisfaction among the staffs.

10. Advantages Of New Technology

Training helps the employees to adopt and take advantage of latest technologies. It helps them to be updated with cutting-edge technology.

11. Increase Goodwill

Proper training ensures productivity improvement, customer satisfaction and lower labor turnover. It helps to increase the goodwill and image of the firm.