Human Resource Management – Essay Example

Q. Why do many incentive plans fail? Answer: In an attempt to get the best out of an employee on the grounds of performance, many employers tend to implement certain incentive plans in the organization. The incentives usually chosen are additional compensation and many other forms of financial rewards and privileges. Although the technique apparently seems quite appealing, yet the results are more often than not far from the expectations. There are a number of factors that play their role in rendering the implementation of incentive plans a bogus idea some of which are discussed below:
1. There is no doubt that incentives do catch employees’ interest and they feel encouraged
to deliver more, but the incentives offered can never be as productive as good management. Making the employees deliver their most is indeed, a managerial art. Incentive plans can not outshine the powers of good management. Pay can not be considered as the most dominating factor in up-lifting the employees’ mood.
2. The performance gets proportional to the incentives offered. Thus, results can be far from
good if the incentives are not handsome.
3. All employees may not be able to improve their performance as a result of the
implementation of the incentive plan. This develops inter-personal conflicts and professional jealousy among the workers.
4. Employees get attuned to incentives in order to be encouraged. This suppresses intrinsic
motivation in the employees and their performance is governed by the incentives.
5. Employees tend to underestimate their basic pay and are highly upset if they do not
manage to get the incentives.
Dessler, G. (2008). Human Resource Management. 11th Edition. Upper Saddle River, N.J. :
Prentice Hall. Print.