incentive pay scheme

any form of PAY system which rewards an employee or group of workers in such a way as to induce increased effort or production. Such reward systems include PIECEWORK PAYMENTS which are geared to an individual's or group's effort and output; BONUS SCHEMES which provide bonuses for reaching stipulated levels of production or sales;

PROFIT-RELATED PAY systems and PROFIT SHARING schemes which provide for employees to receive a proportion of the firm's profits. See INCENTIVE BONUS SCHEME, PERFORMANCE-RELATED PAY, EXECUTIVE SHARE OPTION SCHEME, LONG-TERM INCENTIVE PLAN, EMPLOYEE SHARE OWNERSHIP PLAN, PRINCIPAL-AGENT THEORY.

incentive pay scheme

any form of PAY system that rewards an employee or group of workers in such a way as to induce increased effort or production. Such reward systems include PIECEWORK PAYMENTS, which are geared to an individual's or group's effort and output; BONUS SCHEMES, which provide bonuses for reaching stipulated levels of production or sales; PROFIT-RELATED PAY systems and PROFIT SCHEMES, which provide for employees to receive a proportion of the firm's profits. See EXECUTIVE SHARE OPTION SCHEME, LONG-TERM INCENTIVE PLAN, EMPLOYEE SHARE OWNERSHIP PLAN, PRINCIPAL-AGENCY THEORY, AGENCY COST, TEAM PRODUCTION, PRODUCTIVITY, X-INEFFICIENCY, SUPPLY-SIDE ECONOMICS.

Collins Dictionary of Economics, 4th ed. © C. Pass, B. Lowes, L. Davies 2005

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References in periodicals archive

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