Calculating Incentive Payments at Alpine Valley Skis


Incentive programs are designed to reward employees and/or teams for achieving certain productivity benchmarks. When designed and implemented correctly, incentive programs are mutually beneficial to both the employee and the company. The company achieves the desired behaviour and outcome from the employee, and the employee receives a financial award for achieving the desired productivity benchmarks. This case is designed to help students understand how incentive programs are designed and to calculate specific incentive payments for employees.

This case was prepared for inclusion in SAGE Business Cases primarily as a basis for classroom discussion or self-study, and is not meant to illustrate either effective or ineffective management styles. Nothing herein shall be deemed to be an endorsement of any kind. This case is for scholarly, educational, or personal use only within your university, and cannot be forwarded outside the university or used for other commercial purposes.

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