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With more employers organizing their efforts around teams, team and organization-wide incentive plans are more important. With team incentive plans, the main question is whether to reward members based on individual or team performance; both have pros and cons. Organizationwide incentive plans are plans in which all or most employees can participate. These include profitsharing plans in which employees share in the company’s profits; gainsharing plans, including the Scanlon plan, engage employees in a common effort to achieve productivity objectives and thereby share the gains. Employee stock ownership plans are company-wide plans in which the employer contributes shares of its own stock to a trust established to purchase shares of the firm’s stock for employees.

 
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