The plan may be designed to emphasize a specific problem area that exists and then be directed to different areas as improvements are realized. Puts the pay scale in the hands of the employee. The employee is rewarded for giving the extra effort and often responds with a greater willingness to cooperate with the manager. The employer benefits from the extra effort. Establishes trust and respect between the employer and the employee.
Employee often shows more interest in the cows and milk quality.
Encourages employees to gain an appreciation for how the entire operation is run. Helps clarify responsibility areas and rewards for achievement in those areas. Is a simple way of paying for the quantity and quality of labor. Less encouragement is needed to get things done in a timely manner. Although incentive programs have been widely used with good results, not every user has found them to be effective.