Priestman plan

Priestman plan

a GROUP INCENTIVE SCHEME in which employees are paid a guaranteed basic wage plus a percentage based on the percentage by which output exceeded the target output. The principal problem for a business which wants to use this system is the setting of the target output figure: setting it too low will lead to large bonus payments, setting it too high will reduce the incentive for workers.
Collins Dictionary of Business, 3rd ed. © 2002, 2005 C Pass, B Lowes, A Pendleton, L Chadwick, D O’Reilly and M Afferson