Describe Nature Important Management Incentives Strategies Discuss Potential Pros Cons Mai Q34214612

• Describe the nature of some important management incentivesstrategies.  

• Discuss the potential pros and cons for the main incentives formanagers and executives.

• Identify and provide an overview of a popular organization-wideincentive plan in use. Why does it work for this company?

Expert Answer

Ans 1: Two widely used management incentive plans are merit payand profit sharing plans. Merit pay is any salary increase that isawarded to an employee on his or her individual performance.Advocates argue that only pay directly tied to performance canmotivate improved performance. Profit sharing plans distributee aportion of the company’s profits to employees in the form of abonus. Research shows that