Abstract
This paper will examine the issues in relation to Arlow’s incentive program. First, the elements that made the incentive program so ineffective will be clarified. Next, the various categories of incentive programs are explained. Third, the types of categories of incentive programs will be described. Lastly, the superior incentive method for Arlow’s is presented.
Introduction
Productivity is a significant element of any business. Without galvanizing your employees to perform at the best of their abilities, substantial accomplishment can never be attained. There are many different ways to inspire your employees to put their best efforts forward. One of the most effective methods is employing an incentive plan. This is a type of measure that rewards the outstanding performance of your staff. There are many different ways as to how to give rewards, and making sure that you choose the right payment is vital to your company’s success.
Evaluation of the original method
The method that was instituted at Arlow’s had very positive intentions but was not carefully evaluated in terms of how it could negatively affect the staff. “An incentive must support specific business goals or it is meaningless.” (Bulova). The plan had the goal of increasing business, but there are many different methods that could have worked that would not have created such a hostile nature in the employees. The proprietor that instituted this incentive program should have at least prepared a strategy in the case that this one backfired. It is important for the manager to hand out discipline to staff members that are clearly making customers angry which is resulting in deterring future business. These employees must be reprimanded. “In a sales environment, how do you ensure that the right behaviors are reinforced? It is about having some ‘stick’ as well as ‘carrot’.” (Weald, 2008, p. 1). So overall, this incentive strategy had positive intentions, but it was instituted in such a careless fashion that it resulted in ineffectiveness.
Superior Incentive Method
So what types of incentive programs are superior? Well, there are many different types of incentive programs. First of all, there are two categories of incentive programs each with its own type. These are individual and group incentives. It would be most effective to have a group incentive program for this scenario. “Peer pressure will rapidly straighten out any employee’s bad attitude. The group only gets paid for quality production at the end of the line.” (Levine, 2012, p. 1). In this scenario, it was quite apparent that many of the staff members were so focused on garnering their individual bonuses, that they did not care about treating the customer respectfully, which resulted in decreased business. By having a group ideology, where everyone has to perform, not only will members of the assemblage want to work to the best of their ability so they can get paid, but they also want to make sure not to let the other members down. After identifying that a group incentive method is best, now the type of technique has to be found. There are several different varieties of group incentive programs. One type is called the experience method. If the group performs to their planned objective then they get to have an “experience”, such as a paid trip. Another is a merchandising technique that distributes popular items for productive performance. Workplace perks bequeath certain amenities in the working environment. The recognition method highlights certain individuals by an announcement or special function. However, I think that a group cash bonus is the most effective method for the given scenario. “Naturally enough, money is the best reward for most salespeople.” (Barlas, 2012, p. 1). This seemed to have a positive galvanizing effect on the staff at Arlows, however, it was on an individual basis. If distributed according to the performance of the group, there is bound to be quite an efficacious production, without the negative backlash.
References
Barlas, D. (2012). Choosing a Sales Incentive System. About. Web.
Bulova. (1998). How To Run A Successful Business Incentive Program.
Levine, G. (2012). Here’s What You Need To Know About Individual Or Group Incentive Systems And Which Is Best For Your Business. Gene Levine Associates. Web.
Weald, P. (2008). Incentive Schemes That Work. Call center Helper.