Example Differential piece rate Uses a standard time Type of Incentive Plan Piecework Standard hour plan For each description provided, choose the appropriate incentive plan type. Type Description Popular in service departments Successful when units of output can be measured readily Piecework Use your knowledge of individual incentive plans to answer the Standard hour plan When administering an incentive plan, what is the primary rule Bonuses Spread incentives widely. Merit pay Measure extensively. Incentive awards and recognition Proceed with caution. Sales incentives Use your knowledge of individual incentive plans to answer the following question. When administering an incentive plan, what is the primary rule? Spread incentives widely. Measure extensively. Proceed with caution