Q44. What factors should be considered for introducing an incentive system?
Ans. Following factors should be considered:
- Latitude of labor Union and trade union two words incentive system.
- Effect of incentive system on different category of workers.
- The Degree of control over output of the workers.
- System of incentives prevailing in other areas and industries or similar business.
- Incentive system should not be applied where:
- Standard of work cannot be laid down accurately.
- Quantity of work done by a worker cannot be measured precisely.
- Quality of work important than quantity of work.
- Quality control system does not exist.