Please Write A Case Study And Its Solution On Short Term Incentive Plan Development ?

The client wanted to provide short term incentives to executives and managers of the organization for working towards the achievement of specific strategic goals. The plan was to provide awards based on the executive or manager's position level in the organization and their success in achieving their objectives.

Solution:

1. Reviewed the organization's strategic plan to determine the priority of the goals and objectives.
2. Reviewed each participant's job description to identify how they could positively impact the organization's goals.
3. Developed incentive targets for each level of executive and manager.
4. Developed objectives for each executive and management level using a matrix of responsibility with corporate, department, and individual goal allocations.
5. Assisted senior staff in developing goals for each participant in the organization with emphasis on elements the individual could control and be accountable for.
6. Developed minimum, target, and exceptional levels of performance.
7. Developed appropriate leverage for performance above and below target.
8. Developed plan documents, participant agreements and calculation worksheets.
9. Modelled plan payouts and costs under a variety of organization financial success models.
10. Developed a communications plan and media for participant presentations.
11. Assisted the client's Human Resources Department with presenting and administering the plan.