In the modern days management incentive plans play crucial part in attaining the major objectives of the organizations. Creating and maintaining the link between the rewards with the organizational goals are considered an important task for the managers. By developing this relation, managers believe that the staffs will be more closely attached to their jobs and that is likely to enhance both the quantity as well as the quality of individual performances. However, all incentive plans are not equally effective. The effectiveness and efficiency of a particular plan is dependent on two major aspects 1) organizational metrics which influence the performances of the employees and 2) the degree of customizability of the incentive plan (Bohlander Snell, 2009).