For incentive plans to be successful, one of the most critical requirements is that managers be willing to grant incentives based on differences in individuals, teams, or organizational criteria.

In order for incentives to be effective, managers must be willing to differentiate between individuals, teams, or the organization as a whole in terms of performance and reward those who have performed well. If managers are not willing to make these distinctions, incentive plans may be ineffective or lead to resentment among employees.