Effective Strategies for Incentive Programs in Organizations

In order to make the incentive program effective, the organization should:

provide rewards promptly.

provide incentives to volunteers rather than paid staff.

provide reward only when the agency has money.

provide rewards only when people retire.

Final answer:

To make an incentive program effective, an organization should provide rewards promptly, ensure the rewards are proportional to effort and costs, and employ various types of incentives, like purposive, solidary, and material benefits. Long-term benefits and ongoing human capital development are also essential for sustaining motivation and efficacy of the program.

Explanation:

In order to make an incentive program effective, an organization should adhere to several best practices. Providing rewards promptly is crucial as it reinforces the positive behavior or achievement close to the time it occurs, creating a stronger connection between the effort and the reward. Responding to the question of what should an organization do, here are some essential considerations:

• Effort and Compensation: Employees or members should be rewarded in alignment with the effort they put into their work activity and the costs they incur while doing their job. This aligns with principles of fairness and encourages further dedication.
• Purposive, Solidary, and Material Incentives: Various incentives could be employed, such as purposive incentives, where individuals join to support organizational goals; solidary incentives, driven by the pleasure of interacting with like-minded people; and material incentives, which offer tangible benefits.
• Incentives to Encourage Work: It's often better to spend more on an antipoverty program with a phasing out of support that retains a work incentive rather than a less expensive program that removes any gain from working.

These strategies suggest that an organization should provide incentives that truly motivate individuals and support the overall objectives without causing unintended adverse effects. Long-term benefits and continued investment in human capital are also key to maintaining an effective incentive program.