This is my post here and I am hoping that i will gain some valuable from your experience.

Our company is thinking of implementing a good incentive plan for all employees at all levels. I am trying to do some research and understand this in a better way before we start this project.

We are a manufacturing company and we do have a incentive plan for sales team but we want to make the plan for the whole organization now right form worker at floor level to the CEO and across all departments, finance, quality, HR, strategy, marketing, production, IT, shared services etc.... We do have a bonus system but its not completely based on performance. So we want to quantify the incentive plan to be fair to all and linked to their performance.

Also, i have some basic questions like how often we should review the performance under these plans, what should be parameters to measure the performance for different levels at different departments as all cannot be measured on same parameters.

Need guidance and support from you all.



From Saudi Arabia, Riyadh
Dinesh Divekar
Business Mentor, Consultant And Trainer
Learning & Teaching Fellow (retired)
Hr Professional


Dear Vipul,
You have given some info about what you want to do. I thank you for that. Please also give information about your role, your background and who wants to introduce incentive plans from top to bottom.
Kindly also see 10 Reasons Incentive Compensation Plans Fail | Risk Management and Making Across-the-Board Incentives Work - Harvard Business Review You can find more links at

From United Kingdom

production fig may be the kpi around which incentive plan can be built upon,
for acheving this kpi every deptt must focus hence a same monthly incentive amount can be given to everyone imp thing it should be equal
another alrtennative can be based on the propwr utilzation of machines
another kpi can be around the co. Goals achievement
incentive plan should be for fixed period of time and then the plan should be revised according to the ocomes
immp things to remeber
1. Equal pay
2. Proper communication
3. starting for fixed tenure and then revision afterwords
4. Deduction on incentive plan for wrong doings like any safet incident should have negve points

From India, Patiala
Dinesh Divekar

Dear Vipul,

What you need to do is establish proper Performance Management System (PMS) for your organisation. KRA or KPI is part of PMS. The system and procedure of implement of KRA/KPI is as below:

a) Design KPIs for every single department

b) Train your managers on KPIs of their respective department. Fix the KRAs based on the KPIs.

c) Fix a date of measurement of the performance.

d) Conduct the supplementary training to managers on "How to Conduct Performance Appraisal".

e) Conduct the Performance appraisal. Again fix KRAs for the next financial year.

f) Assess the suitability of PA process. Do some changes if required.

g) Let the cycle go on.

Earlier, there was very good discussion titled "PMS for workers". It was more or less related to this topic. Click here to read it. You will find my two comments in the thread.

By the way, I conduct training on Performance Management through KPI/KRA. If you wish, I will do the following for you:

h) Framing policy on Employee Performance

i) Conducting training on what is KPI or KRA

j) Conducting training on how to handle PA, how to give feedback etc.

You may talk to your management on hiring my consulting services. I will design policy for incentives based on measures of performance.


Dinesh V Divekar


From India, Bangalore

If You Are Knowledgeable About Any Fact, Resource or Experience Related to This Topic and Want to Be Part of Such Discussions in Future - Please Register and Log In to Cite Community.

About Us Advertise Contact Us Testimonials
Privacy Policy Disclaimer Terms Of Service

All rights reserved @ 2023 CiteHRŽ

All Material Copyright And Trademarks Posted Held By Respective Owners.
Panel Selection For Threads Are Automated - Members Notified Via CiteMailer Server