Question

Lilly and Milly are working as Marketing Manager and Finance Manager respectively in an insurance company. In consultation with the Human Resource Manager Lilly formulates a plan which links the salaries of the insurance agents of the company with the volume of sales, in order to provide incentive to make them achieve beyond the assigned monthly targets.

Milly conducts regular meetings and congratulates her efficient subordinates for good performance. She also displays their name on the notice board highlighting their achievements .Identify and briefly explain the incentives provided to the employees by Lilly and Milly.

Answer 1

Incentive provided to the employees by Lilly :

Productivity linked wage incentive-Several wage incentive plans aims at linking payment of wages to increase in productivity at individual or group level

Incentive provided to the employees by Milly:

Employee Recognition Programme-Recognition means acknowledgment with a show of appreciation. When such appreciation is given to the work performed by employees, they feel motivated to perform/work at a higher level.