An incentive program can't solve all problems. It's not a panacea for all management's ill's. The basic business principles must be supplied eg quality products, fair prices, good service and effective processes. Without these elements, an incentive won't help business. Many times though, humans find it difficult to combine personal goals with their organisation's goals.
Incentive programs offer a solution.
They provide concrete rewards for quality performance that is consistent with the organisational objectives. They also present visible goals with visible acknowledgment, helping to keep people on track towards personal and company performance. M easurable, in order to determine whether or not the program is working A cceptable to all parties, otherwise there's no team effort. R ealistic, taking into account relevant industry trends T imely, whereby business cycles are considered. Parts managers and sales people earn performance points for selling parts through the parts department.