Describe three types of incentive plans which use pay to motivate teamwork.Which one do you think is probably the most effective, overall? Explain your reasons.

There are four types of plans described in the text: Profit sharing, ESOPs, Gain-sharing (including the Scanlon Plan), and skill-based pay.The second part of the question requires students to weigh the advantages and disadvantages of each incentive plan and to defend their position on one.In reality, there is evidence to support the merits of each.The key point is that each one has a different motivational focus and should support the strategic needs of an organization.Team-based pay for performance programs have been found to have a positive effect on behavioural, operational, and financial outcomes.The effect of team-based financial incentives on performance is strongest for smaller teams.