ABC Corporation rents and sells furniture and appliances to individual consumers. The company's primary market focuses on customers who rent-to-own; the customer pays a rental charge (which includes a 28 percent interest rate) for a specified time and at the end of that time, owns the furniture. ABC Corp. has its own credit department for these contracts.

Over the past two years, it has been difficult to collect customer payments in a timely manner. As a result, ABC Corp has experienced a sharp drop in profitability. The effect on profitability is such that Atlas now pays a higher interest rate (8 percent) to its bank to carry its own indebtedness.

ABC Corp wants the accounts receivable (A/R) department to increase its collection of past-due bills. It has turned to you in the HR department to develop a system to incent and reward A/R clerks who increase the dollars in collections each month. Each A/R clerk is a non-exempt hourly employee.

The information in the table below provides the previous year's results ("Monthly Total" means the amount due but NOT collected in that month).

You (HR) are designing pay-for-performance plans for clerks.

Q1, To set to reduce outstanding past-due amounts, what type of short-term, INDIVIDUAL-based incentive plans would you use? 1) First choose the type from the chapter, 2) explain WHY it would work the best, and 3) describe the plan in detail (e.g., what and when to give, eligibility criteria, frequency, etc.).

Q2. To set to reduce outstanding past-due amounts, what type of short-term, TEAM-based incentive plans would you use? 1) First choose the type from the chapter, 2) explain WHY it would work the best, and 3) describe the plan in detail (e.g., what and when to give, eligibility criteria, frequency, etc.).

Q3. To set to reduce outstanding past-due amounts, what type of long-term incentive plans would you use? 1) First choose the type from the chapter, 2) explain WHY it would work the best, and 3) describe the plan in detail (e.g., what and when to give, eligibility criteria, frequency, etc.).