Factors Considered for Introducing Incentive System.

Q44. What factors should be considered for introducing an incentive system?
Ans. Following factors should be considered:

  1. Latitude of labor Union and trade union two words incentive system.
  2. Effect of incentive system on different category of workers.
  3. The Degree of control over output of the workers.
  4. System of incentives prevailing in other areas and industries or similar business.
  5. Incentive system should not be applied where:
    1. Standard of work cannot be laid down accurately.
    2. Quantity of work done by a worker cannot be measured precisely.
    3. Quality of work important than quantity of work.
    4. Quality control system does not exist.

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