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Explain Group Incentive Wage Plans
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These are the incentive wage plans which motivate the group to produce more under individual incentive plans, bonus is paid to the workers on the basis of individual performance and the amount of bonus payable to a worker is not affected by the performance of another or other workers. But there are certain situations where it is difficult to measure the output of an individual worker conveniently or the performance of one worker is affected by the performance of other workers. In such situations, group incentive bonus schemes are introduced. Under this scheme, bonus is made payable to all the workers on a collective basis. This bonus is promised by management in advance of the commencement of work for securing in effective teamwork. In all cases, a fixed standard of performance is established and the bonus is given for the results shown over the standard performance.
