Group and Company-Wide Incentive Programs: How to Ensure Fairness
How can companies ensure that poor performers do not benefit from group and company-wide incentive programs?
a) Implement stricter performance evaluations for poor performers.
b) Provide additional training and support to poor performers.
c) Eliminate group and company-wide incentive programs.
d) Set clear performance criteria for incentives.
Solution to Ensure Fairness in Incentive Programs
To prevent poor performers from benefiting from group and company-wide incentives, companies can implement stricter performance evaluations, provide additional training, and set clear performance criteria for incentives. Eliminating these incentive programs entirely may lead to a decrease in morale and should only be considered as a last resort.
Detailed Explanation
To ensure poor performers do not disproportionately benefit from group and company-wide incentive programs, companies can take a multifaceted approach:
- Implement stricter performance evaluations for poor performers: This can help identify areas where the individual needs improvement.
- Provide additional training and support to poor performers: This can help them become better contributors to group or company-wide goals.
- Set clear performance criteria for incentives: Companies can clearly define what constitutes a substantial contribution to group or company goals and link performance to these criteria. By making incentives contingent on meeting or exceeding these standards, companies ensure only deserving individuals benefit.
Eliminating group and company-wide incentive programs is not as advisable because it might dampen organizational morale and group resilience while only treating a symptom of the issue, instead of addressing the root cause.