Assuming an organization wishes to

Assuming an organization wishes to implement a CP plan, what should the plan look like? Recall the discussion of various forms of compensation provided in Chapter 1. What considerations should be taken in to account in choosing, for example, among offering employees group incentives, profit sharing, or individual sales commissions? A critical issue to consider is that of organizational culture. An organization’s culture is defined by its unwritten rules and procedures. For example, is the organization fundamentally built around individual performance, or is teamwork the norm? Is the organization one in which high-level performers are regarded as role models who should be emulated, or are they viewed as a threat to upper management? Are we happy with the current culture, or do we wish to change it? CP plans are powerful tools that help solidify the current culture, and that can be used to create a new type of culture. There should be a careful consideration of the culture of the organization before a specific type of CP plan is selected.