Research Methodology

Impact of Incentives on Motivational Levels of

Employees.

INTRODUCTION:

Every organisation benefits from using recognition and incentive programs as a

part of their overall strategy to impact culture and drive desired business
behaviours. Effective recognition programs are based on core values of the
organisation and should be designed to reward and recognize the behaviours
that stand the test of time. The success and promotion of any company or
organization can be evaluated in terms and conditions of various things, such as
well planning, better administrative system, system of working of employees,
follow up rules and regulations, management of resources and many others.
These are the some of the basic tips for the promotion of any company. But
there are some other components must to be keeping in mind that is concern to
human resource management (H.R.M) an organization is majorly depended
upon the human resources’ available to it. Human resources are everything for
any company /organization, although a company needs many other resources
for its promotion and success but without human resources they are useless. It is
the man who operates the machines and utilizes other resources for it. It is not
enough for an employee to be satisfied materially but non material aspects are
as essential as material aspects, an employee need both to be fulfilled. Material
means his salary, bonuses, allowances, job security and other facilities. While
non-material aspect includes leaves, excellent working environment, good
understanding among other fellow workers and top management, all these
elements have much to do with motivation of employee. Employees play very
important part in the daily operations of any organization especially where the
markets are very competitive and have ever-changing environment which is
supported by majority of the theorists. The fate of an organization is usually
determined by its employees, so it sounds logical to understand how employees
can be motivated. As far as the employee’s motivation is concerned, employee
motivational incentive programs have been found to be the most commonly
adopted technique among organizations. The purpose of the program is to
reward productive performance, reinforce positive behaviour and stir interest in
employee. Money is considered to be the universal motivator although other
financial and non-financial incentives and benefits create a very special
relationship between organization and employees. Employees preform certain
tasks; fulfil goals in exchange of money and other incentives packages. Some
types of incentive plans are available in industries in which bonuses,
conveyance allowance, medical allowance, increase salary, monthly leaves,
promotion, recognition are included. These incentives encourage the employees
and hence productivity enhances by affecting the performance, efficiency,
satisfaction, responsibility, effectiveness and commitment of employees.

OBJECTIVES OF THE STUDY:

1. To determine the impact of incentives on employees performance

2. To determine the most important indicators of motivation for employees.

DATA COLLECTION:

In the study a combination of both primary and secondary data has been used.

 Primary Data has been collected with the help of questionnaire which has
been filled by employees of different companies.
 Secondary data such a s internet and other relevant websites have been
used to support the study.

SAMPLE SIZE:

For collecting the primary data, a questionnaire was prepared and circulated
among 50 employees who work in different organisations.

SAMPLING TECHNIQUES:

For the purpose of the study, convenience sampling was carried out by sending
questionnaires online using Google forms.

ANALYSIS AND INTERPRETATION OF DATA:

The data is collected by distributing questionnaire to 50 employees working in

different organisations. All respondents belong to age group ranging between
22-60. All the respondents work for a full time in the organisation.
 Q1. Gender.

GENDER FREQUENCY PERCENTAGE

MALE 18 36%
FEMALE 32 64%
TOTAL 50 100

Interpretation: The above table shows that out of 50 respondents, 36% of the
respondents are male and 64% of the respondents are female.

It is clearly shown that there are more number of female respondents in

comparison of male respondents.

The mean value of gender of the respondents is 1.64 and range is 1.00.

Q2. Financial incentive increases employee work productivity

PARTICULARS FREQUENCY PERCENTAGE

STRONGLY DISAGREE 2 4%
DISAGREE 1 2%
NEUTRAL 3 6%
AGREE 17 34%
STRONGLY AGREE 27 54%
TOTAL 50 100

Interpretation: The above table shows that out of 50 respondents, 34%

respondents feel that financial incentive increases employee work productivity
and 54% of them strongly agree that means they are confident that financial
incentives are a strong motivator for an employee. However, the rest 12% of
respondents either disagree or feel that financial incentives might not always act
as a motivator for an employee.

Nevertheless, we can see that majority of the respondents agree that financial
incentives are a strong motivator for an employee.

The median of the financial incentives impact on employee work productivity is

5.00 and range is 4.00
 Q3. Do incentives increase employee's loyalty towards organization?

PARTICULARS FREQUENCY PERCENTAGE

YES 23 46%
NO 9 18%
MAYBE 18 36%
TOTAL 50 100

Interpretation: The table above shows that out of 70 respondents, 9 respondents

are of the opinion that incentives do not increase employee’s loyalty towards the
organisation and 18 respondents are doubtful about the same. Yet, there are 23
respondents who feel that incentives increase employee’s loyalty towards the
organisation.

Hence, we clearly can see that most respondents agree that incentives increase
employee’s loyalty towards organisation.

The mode here is YES and the range of this is 2.00

Q4. Promotions motivate employees to work harder

PARTICULARS FREQUENCY PERCENTAGE

YES 50 100%
NO 0 0
TOTAL 50 100

Interpretation: From the table above we can clearly say that all the 50
respondents agree that promotions are an important factor that motivates
employees to work harder.

After analysing, the standard deviation is .00 and range is .00

Q5. Is money enough to motivate employees?

PARTICULARS FREQUENCY PERCENTAGE

YES 1 2%
NO 30 60%
MAYBE 19 38%
TOTAL 50 100
Interpretation: The above table shows that there is only one respondent who is
of the opinion that money is enough to motivate employees, however there are
30 respondents are don’t agree to the statement and 19 are doubtful whether
money would be enough to motivate employees.

The analysis of skewness in this case is .16 and the range is 2.00

Q6. Work environment is also important for motivation

PARTICULARS FREQUENCY PERCENTAGE

STRONGLY DISAGREE 3 6%
DISAGREE 0 0%
NEUTRAL 0 0%
AGREE 17 34%
STRONGLY AGREE 30 60%
TOTAL 50 100

Interpretation: The table shows that 30 out of 50 respondents agree that work
environment is an important factor for motivation and whereas 3 respondents
strongly disagree to this statement.

After analysis for Kurtosis, the value is 6.69 and the range is 4.00

FINDINGS OF THE STUDY:

 It is seen that financial incentive has a great impact on

motivation of employees as it increases the work productivity.
 Incentives increases employee’s loyalty towards the
organisation.
 The respondents strongly agree that promotions play a very
significant role in motivating employees.
 The respondents are of the opinion that money is not a driving
factor in motivating the employees.
 The respondents feel that work environment is one of the factor
that is considered as a motivation for employees.
REPORT OF THE STUDY:
The impact of incentives on motivational levels of employees is
analysed by means of conducting a survey by distributing
questionnaires to employees working in different organisations and
studying the various means of incentives that motivate employees.
Incentives are in the form of monetary and non-monetary benefits that
plays a very significant role in motivating employees. The
questionnaire consists of various aspects of such as financial
incentives, promotions, appraisals, work environment, need
satisfaction etc. that help in understanding the employees driving
factor to motivate. It also assesses how a motivated employee could
add value to the organisation.
After studying these dimensions of the employees, we can clearly say
that employees feel that promotions plays a major role in motivation
and we also understood that money is not the only factor that can be
used to motivate employee’s. Employees can be motivated by various
intrinsic rewards, by providing safe work environment, by
recognising the employee’s efforts, by appraisals and also need
satisfaction by the organisation. By motivation, employees are driven
by the zeal to work hard and achieve their set goals and targets
thereby contributing to the growth and success of the organisation.
LIMITATIONS TO THE STUDY:

 The study is limited in terms of the number of respondents.

 Since the survey was not taken personally, it is hard to believe if
the answers were honest.
 It covers only a sample of 50 respondents.
REFERENCES:

 https://core.ac.uk/download/pdf/33426057.pdf
 https://www.corporatewellnessmagazine.com/article/look-incentives-
impact-motivation
 https://courses.lumenlearning.com/suny-orgbehavior/chapter/6-5-
motivating-employees-through-performance-incentives/

QUESTIONNAIRE:

1. Name ( _____________________ )

2. Gender

i. Female

ii. Male

iii. Prefer not to say

3. Age ( _____________ )

4. Name of the organization( ________ )

5. Designation( _______ )

6. Financial incentive increases employee work productivity

i. Strongly disagree

ii. Disagree

iii. Neutral

iv. Agree

v. Strongly Agree

7. Intrinsic rewards increases employees’ job satisfaction

i. Strongly disagree

ii. Disagree

iii. Neutral
iv. Agree

v. Strongly Agree

8. Incentives develops employees attitude towards organization

i. Strongly disagree

ii. Disagree

iii. Neutral

iv. Agree

v. Strongly agree

9. Do incentives increase employee's loyalty towards organization?

i. Yes

ii. No

iii. Maybe

10. Promotions motivate employees to work harder

i. Yes

ii. No

11. Motivated employees are real asset to the organization

i. Strongly disagree

ii. Disagree

iii. Neutral

iv. Agree

v. Strongly agree

12. Need satisfaction leads to high motivation.

i. Strongly disagree

ii. Disagree
iii. Neutral

iv. Agree

v. Strongly agree

13. Is money enough to motivate employee’s

i. Yes

ii. No

iii. Maybe

14. Work recognition and appraisal motivates employees towards job

(scalar question)

i. Strongly Disagree

ii. Disagree

iii. Neutral

iv. Agree

v. Strongly Agree

15. Work environment is also important for motivation

i. Strongly disagree

ii. Disagree

iii. Neutral

iv. Agree

v. Strongly agree

16. Motivated employees are effective and efficient towards completing

their work

i. Strongly Disagree

ii. Disagree

iii. Neutral
iv. Agree

v. Strongly Agree

17. In what others ways are employees motivated in your organization.

__________________________________________.