Chapter P, Problem 11E

To determine

(1)

Incentive plan:

Incentive Plans are framed with the intention of giving motivation employees to increase their performance and achieve the target of the company. Incentive plans are introduced in many business houses with the intention of increasing production. The incentive plan work as motivation for the employee business has to meet certain target. It includes bonus, stock option, increasing salary, sales commission and other benefits.

To Identify:

Whether incentive plans can work or not.

To determine

(2)

To Identify:

The way of motivating employees.

To determine

(3)

To identify:

The use of financial incentives to compensate employees and the reason of using and not using financial incentive to compensate employees.