Strategic Compensation: A Human Resource Management Approach, 9/e

Group Incentives

1. 4 Explain two types of group incentive plans.

U.S. employers are increasingly using teams to get work done. Two main changes in the business environment have led to an increased use of teams in the workplace.¹⁵ First, in the 1980s, many more Japanese companies were conducting business in the United States, particularly in the automobile industry. A common feature of Japanese companies was the use of teams, which contributed to superior product quality. Second, team-based job design promotes innovation in the workplace.¹⁶ At Newell Rubbermaid, a manufacturer of such plastic household products as snap-together furniture and storage boxes, product innovation has become the rule since the implementation of project teams. Team members ...