Company-wide financial-incentive plans


Most of the organizations give company-wide financial-incentive plans that apply to all employees. Though, some employees or units might contribute more to corporate profits than others. Does this diminish the efficiency of the incentive plan system? Explain why or why not? How would the productivity-incentive plan compare to the profit-incentive plan of an established manufacturing firm?

Validate your answers by using illustrations and reasoning.

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Finance Basics: Company-wide financial-incentive plans
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