A feature of an effective incentive pay plan is that it should have performance measures based on employees' requirements. not be provided as a direct percentage of employees' performance. encourage group performance and sideline individual achievements. be the same for all employees in the organization. have performance measures linked to the organization's goals.

have performance measures linked to the organization's goals

Explanation:

An effective incentive plan is the one which rewards hard work of the employees and at the same time also ensures fulfillment of organizational goals.

Such a plan should be communicated by the human resource department of an organization to it's employees and should be clearly defined.

The plan should be designed keeping in mind, the parameters upon which incentives would be based, the compliance of other requirements by the employees such as minimum hours of work which shall define their eligibility.

Thus, an effective incentive pay plan would link performance of the employees and, to what extent such performance contributes towards attainment of organizational goals.

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