Explain group incentives

[moosatp]

What do you mean by group incentives? What are its merits as compared to individual incentives?

[moosatp]

Incentive may be anything which induces the will of the people to get the desired results. Incentives may be individuals collective i.e., group or institutional. When any incentive scheme is applied on personal
basis or individual to individual it is called an individual incentive. Group as a whole, under individual incentive plans, the basis is individual performance while under group incentive scheme, basis is an entire group of persons. Group incentives are provided to a group of workers collectively.
Group incentives may be divided into two parts:
(A) Monetary Group Incentives
(B) Non-monetary or non-financial group incentives
Monetary or financial group incentives include followed:
(1) Priestman's plan
(2) Scanlon plan
(3) Profit- sharing
(4) Copartnership
Non-financial group incentives include following:
(1) Social importance of work
(2) Team spirit
(3) Competition
(4) Informal group

Benefits—Group incentives give the following benefits as compared to individual incentives:
(1) Group incentives create a collective interest in the work. They develop the group feeling and sense of cooperation.
(2) Jealousy among workers is prevented because entire group is motivated.
(3) It ensures better cooperation and team spirit. Thus it ensures reduction in labour turnover and absenteeism.
(4) It reduces cost of supervision.
(5) Group has no quick demand of job changes and everybody is engaged in the completion of the job.