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Merits And Demerits Of Group Incentives

Merits Of Group Incentives

1. Group incentive is suitable for employees who perform interdependent and interrelated tasks.

2. Group incentive enhances group work so that the jobs can be performed effectively.

3. Group incentive helps to enhance team spirit at work.

4. Group incentive encourages a sense of cooperation and responsibility.

5. Group incentive facilitates on-the-job training as the group members have interest in getting new people trained as quickly as possible.

6. Group incentive encourages employee participation in group, job satisfaction and quality of work life at organization's environment.

Demerits Of Group Incentives

1. No reward is solely on individual's own effort.

2. Due to group/team focus, individual job performance will not be improved.

3. A group incentive plan may be less effective as compared to an individual incentive plan because under it, the individual does not see his/her effort leading to award.

4. Since overall performance depends on team effort the conflict and disagreement may be seen in the workplace among team mates.

5. The problem of self deception can occur.

6. Usually group members expect greater than average rewards, which lead to internal conflict within the team.

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