In Chapter $9$ and Chapter $10,$ we discussed how to design an effective incentive $($or pay$-$for$-$performance$)$ system in three levels: individual, group, and organization.

There are several common types of individual incentive plans: piecework plan, management incentive plans, behavioral encouragement plans, and spot awards. Typical group incentives include team$-$based incentive plans and gain sharing plans. There are company$-$wide incentives including profit sharing plans and employee stock option plans.

Considering pros and cons of each plan, you need to select the mix of incentive plans for your organization. Discuss and describe the reasons why this approach would fit in your company.

Task K: Describe an overall incentive policy. List up the preferred incentive plans and explain why each plan would fit in the organization.