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Group incentive plans encourage teamwork by rewarding collective performance rather than individual achievements. These plans may involve small groups, departments, or entire organizations, aiming to promote a sense of identity and cooperation among members. Various incentive structures like piece work, bonus plans, and merit pay can apply to teams just as they do to individuals. When a team meets or exceeds its goals, all members receive rewards; conversely, failure to achieve objectives results in no rewards for anyone. Such team incentives are most effective when tasks require high interdependence and collaboration for success.