12-5. With more employers organizing their efforts around teams, team and organization-wide incentive plans are more important. With team incentives, the main question is whether to reward members based on individual or team performance; both have pros and cons.

Organization-

wide incentive plans are plans in which all or most employees can participate. These include profit-sharing 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. With employee stock ownership plans the employer contributes shares of its own stock to a trust established to purchase shares of the firm’s stock for employees.