Why are group incentive systems used?
Group incentive systems is a compensation system in which a group is paid for their combined performance, measured by reduction in costs, increase in productivity and progress in achieving company’s objectives or goals. This system is designed for such situations where the goals of the project are best suited to individuals working as a group rather than apart. Thus, this system is useful to measure the output of a group of workers when individuals are working as a team. Group incentive system can reward things that individual incentive system cannot, such as team work and cooperation