EntrepreneurshipHuman Resource ManagementManagementUncategorized

Group incentives: Meaning, Advantages and Disadvantages.

In this article we will discuss about  Group incentives: Meaning, Advantages and Disadvantages.


Anything that can attract an employees attention and motivate them to work can be called as incentives. Its aim to motivate employees and increase overall performance of an organization. Incentives can be classified as direct and indirect compensation.They can be prepared as individual plans, group plans and organization plans.

Group Incentive

Group incentive programs reward employees for their collective performance rather than for each employees individual performance.

Group  incentives make a stronger sense where employees tasks are interdependent and thus require a collective efforts for the completion of such tasks. Especially, this system of incentive is useful in project team where one workers contribution is almost impossible to reflect in measurable units, Under this plan, a productive plan is set as standard performance for a group of employees and the reward is provided by assessing the performance of the whole team.

Firstly total earning of group is determined with incentive method  which is followed and then equally distributed among group members  if member of group consist same competencies and skills. If members are unequal competencies the earning are divided in proportion to specified percentage.


  1. Collective efforts or performance
  2. Effective team work is recorded among group members
  3. Helps to increase or enhance team spirit at work
  4. Better coordination among employees to accomplish organizational objective.
  5. Decrease rate of job turnover and absentism.
  6. Strengthen the employees loyalty to the company.
  7. Innovation and creativity.
  8. Competition among employees.


  1. Complex plan to understand and work
  2. Time taking process
  3. Group efforts required
  4. Lack of control and communication
  5. Some employees find the ways to escape from the workload and do not contribute in group tasks but they get equal rewards.


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