Briefly describe the three categories of incentive pay plans and give an example of each

What will be an ideal response?

Answer: Incentive pay plans can be broadly classified into three categories:
Individual incentive plans. These plans reward employees whose work is performed independently. Some companies have piecework plans, typically for their production employees. Under piecework plans, an employee's compensation depends on the number of units produced over a given period. Examples include piecework plans, behavioral encouragement plans, and referral plans. Group incentive plans. These plans promote supportive, collaborative behavior among employees. Group incentives work well in manufacturing and service delivery environments that rely on interdependent teams. In gain sharing programs, group improvements in productivity, cost savings, or product quality are shared by employees within the group. Examples include gain sharing plans and team incentives. Companywide incentive plans. These plans tie employee compensation to a company's performance over a short time frame, usually from a 3-month period to a 5-year period. Examples include profit sharing plans and stock option plans.