IMPACT OF INCENTIVES ON EMPLOYEE

PERFORMANCE
Submitted in partial fulfillment of the requirements for the award of the degree
Bachelor of Business Administration (BBA)
To
Guru Gobind Singh Indraprastha University, Delhi

Guide Submitted by
MS TINU ANAND PRANAV NAIR
ASSISTANT PROFESSOR 40319101718

Gitarattan International Business School

New Delhi -110085

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 Batch 2018-21

CERTIFICATE OF THE ORGANISATION

I,MR PRANAV S NAIR , Enrolment No. 40319101718 certify that Project Report/Disseration
(Paper Code BBA-312) entitled “IMPACT OF INCENTIVES ON EMPLOYEE
PERFORMANCE”s done by me and it is an authentic work carried out by me at ‘GITARATTAN
INTERNATIONAL BUSINESS SCHOOL’. The matter embodied in this Report has not been
submitted earlier for the award of any degree or diploma to the best of my knowledge and belief.

Signature of the Student

Date:

Certified that the Project Report/Dissertation (Paper Code BBA-312) entitled

“IMPACT OF INCENTIVES ON EMPLOYEE PERFORMANCE” done by Mr. PRANAV S
NAIR, Enrolment No. 40319101718, is completed under my guidance.

Signature of the Guide

Date:
MS. Tinu Anand
(ASSISTANT PROFESSOR)
Gitarattan International Business
School 110085

Countersigned
Director/Summer Training Coordinator

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 ACKNOWLEDGEMENT
I express my deepest and most sincere thanks to MS TINU ANAND (Faculty Guide) and all my
teachers who provided me their valuable time and information. The Project Report/Dissertation
could not be possible without their able support and guidance. It was a great opportunity for me to
work on knowing the impact of employee motivation. I am extremely grateful to those who have
shared their expertise and knowledge with us and without whom the completion of this project
would have been virtually impossible.

I am indebted to all staff members of Gitarattan International Business School for their valuable
support and cooperation during the entire tenure of this project. Not to forget, all those who have
kept our spirits surging and helped me in delivering my best

Last but most important I thank ‘God Almighty’ above who guided me and bestowed me with the
wisdom and an opportunity to carry out the project.

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 EXECUTIVE SUMMARY

1. Title of the Project

IMPACT OF INCENTIVES ON EMPLOYEE PERFORMANCE

2. Introduction

Employers use incentives to promote a particular behavior or performance that they believe is
necessary for the organization success. For example, a software company provides employee
lunches to promote teamwork across departments and functional areas. They also use the lunches
to provide necessary information to employees or for employees to present to their coworkers on
hobbies and interests all of which contribute to staff members knowing each other better. An
incentive is an object, item of value, or desired action or event that spurs an employee to do more
of whatever was encouraged by the employer through the chosen incentive. You want to manage
your incentives in such a way that you do not create entitled employees. You also do not want to
demotivate employees because the incentives they desire are not available. Consequently, the
first step in offering your employees incentives at work is to ask them what kinds of incentives
they would most like to receive. Incentives are remuneration provided by companies that can be
valued with money and have a tendency to be given regularly. Incentives are defined as forms of
payment associated with performance and gain sharing, as sharing benefits for employees due to
increased productivity or cost savings. . Increase the standard of living with receipt of payments
outside the basic salary, also Increase employee work motivation so as to encourage them to
perform better of an employee .Working to improve employee performance is an ongoing
process that involves measurement, evaluation, and planning, but it's also a vital step to
achieving company goals.

3. Objectives & scope

3.1 Objectives
The study has following objectives

To estimate the determinants of employee performance.

To study the effect of incentives of employee performance.

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3.2 Scope
This study applies to working and student population with place of residence in study area. The
age-wise classification of working individual and students. They are classified into categories
based on their age as below 25, 25-40, 40-55 and Above 55. Age and working sector wise
classification of individual investors in study area.

4) Research Methodology
The data was collected from both primary and secondary source. The primary data was collected
through questionnaire. This questionnaire aims to gather information about the viewer’s
preferences on the different attributes. The secondary data shall be collected through, websites,
journals, books and other sources.
Variables used in this study are Employee Performance is dependent variable and independent
variable is Incentives received by employee.

4.1 Methodology for Data collection

Stratified random sampling is the methodology used for data collection as this involves dividing
a population into smaller groups–called strata. The groups or strata are organized based on the
shared characteristics or attributes of the members in the group. The questionnaire is made on
Likert scale.

4.2 Techniques for Data analysis

1. Sampling tools and techniques: Multistage sampling method
2. Sample Size & Data Collection: From the total population, 100 people were chosen as sample
3. size for the study and the data is collected through a Structured Questionnaire.
MS-EXCEL was used for analysis.

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 TABLE OF CONTENTS

S No Topic Page No

1 Certificate (s)

2 Acknowledgements

3 Executive summary

4 List of Tables

5 List of Figures

6 List of Symbols

7 List of Abbreviations

8 Research Project Directive

9 Chapter-1: Introduction

10 Chapter-2: Literature Review

11 Chapter-3: Data Presentation & Analysis

12 Chapter-4: Summary & Conclusions

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 13 Chapter-5: Recommendations

14 References/Bibliography

15 APPENDIX

LIST OF TABLES

Table No Title Page No

1 Number of investors of crypto in India

2 Transaction rate growth

LIST OF FIGURES

Figure No Title Page No

1 Analysis of data

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 Chapter 1

1.1 Introduction
Employers use incentives to promote a particular behavior or performance that they believe is
necessary for the organization success. For example, a software company provides employee
lunches to promote teamwork across departments and functional areas. They also use the lunches
to provide necessary information to employees or for employees to present to their coworkers on
hobbies and interests all of which contribute to staff members knowing each other better
An incentive is an object, item of value, or desired action or event that spurs an employee to do
more of whatever was encouraged by the employer through the chosen incentive. You want to
manage your incentives in such a way that you do not create entitled employees. You also do not
want to demotivate employees because the incentives they desire are not available. Consequently,
the first step in offering your employees incentives at work is to ask them what kinds of incentives
they would most like to receive. Incentives are remuneration provided by companies that can be
valued with money and have a tendency to be given regularly. Incentives are defined as forms of
payment associated with performance and gain sharing, as sharing benefits for employees due to
increased productivity or cost savings
Four kinds of incentives are available for employers to use at work.
1. Compensation incentives may include items such as raises, bonuses, profit sharing, signing
bonus, and stock options.
2. Recognition incentives include actions such as thanking employees, praising employees,
presenting employees with a certificate of achievement, or announcing an accomplishment at a
company meeting.
3. Rewards incentives include items such as gifts, monetary rewards, service award presents, and
items such as gift certificates. An additional example is employee referral awards that some
companies use to encourage employees to refer job candidates.
4. Appreciation incentives include such happenings as company parties and celebrations, company
paid family activity events, ice cream socials, birthday celebrations, sporting events, paid group
lunches, and sponsored sports teams.
Incentives can help employers reinforce with employees the kinds of actions and contributions that
will help the organization succeed. Used effectively, incentives help build employee motivation
and engagement. Employees want to be part of something that is bigger than themselves.
Employee performance also impacts company culture. If your employees are engaged, punctual,
managed fairly and willing to take responsibility that creates a culture of respect and trust. That

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leads to employees staying with your business longer, which lowers expensive employee turnover.
Another aspect of the importance of employees in an organization is how they think of your
business when they're not at work. For example, if your employee thinks positively of her work
environment, she may talk positively about it to friends and family. Work is a big part of our lives,
so it’s natural for it to come up in conversation. An employee who feels she's being treated fairly
and that she's valued will reflect that, even when she’s off the clock. Employers need to use more
incentives to help build employee morale and to ensure that employees feel appreciated for their
contributions. Distributed appropriately, in a transparent manner that employees understand, you
can't go wrong with incentives to praise and thank employees for their performance and
contributions. Employees are the force that drives a company forward. So it should come as no
surprise that the daily performance of the workforce hugely influences the success or failure of a
business. To stay successful in today’s market, businesses must find ways to maintain and bring
out the best performance from their employees. Not only does this help to hire, retain and develop
the best talent, but by helping staff to grow within their roles and responsibilities, the company can
build a pipeline of future leaders. All contributing to long-lasting success. Increase the standard of
living with receipt of payments outside the basic salary, also Increase employee work motivation
so as to encourage them to perform better of an employee .Working to improve employee
performance is an ongoing process that involves measurement, evaluation, and planning, but it's
also a vital step to achieving company goals.

1.2 Research objectives

1.2.1 To estimate the determinants of employee performance.
1.2.2 To study the effect of incentives of employee performance.

1.3 Scope
This study applies to working and student population with place of residence in study area. The
age-wise classification of working individual and students. They are classified into categories
based on their age as below 25, 25-40, 40-55 and Above 55. Age and working sector wise
classification of individual investors in study area.

1.4 Research Methodology

1.4.1 Methodology for Data collection
The data was collected from both primary and secondary source. The primary data was collected
through questionnaire. This questionnaire aims to gather information about the viewer’s
preferences on the different attributes. The secondary data shall be collected through, websites,
journals, books and other sources. Variables used in this study are Employee Performance is
dependent variable and independent variable is Incentives received by employee.

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Techniques for Data analysis
1.4.1 Sampling tools and techniques: Multistage sampling method
1.4.2 Sample Size & Data Collection: From the total population, 100 people were chosen as sample
size for the study and the data is collected through a Structured Questionnaire.
1.4.3 MS-EXCEL was used for analysis.

1.5 Hypothesis
The hypothesis is an assumption that is made on the basis of some evidence. This is the initial
point of any investigation that translates the research questions into a prediction. It includes
components like variables, population and the relation between the variables. A research
hypothesis is a hypothesis that is used to test the relationship between two or more variables.
Following are the characteristics of hypothesis:
The hypothesis should be clear and precise so as to consider it to be reliable.
If the hypothesis is relational hypothesis, then it should be stating the relationship between
variables.
The hypothesis must be specific and should have scope for conducting more tests.
The way of explanation of hypothesis must be very simple and it should also be understood that
simplicity of hypothesis is not related to its significance
Simple Hypothesis
It shows a relationship between one dependent variable and a single independent variable. For
example – If you eat more vegetables, you will lose weight faster. Here, eating more vegetables is
an independent variable, while losing weight is the dependent variable.
Complex Hypothesis
It shows the relationship between two or more dependent variables and two or more independent
variables. Eating more vegetables and fruits leads to weight loss, glowing skin, reduces the risk of
many diseases such as heart disease, high blood pressure, and some cancers.
Directional Hypothesis
It shows how a researcher is intellectual and committed to a particular outcome. The relationship
between the variables can also predict its nature. For example- children aged four years eating
proper food over a five year period are having higher IQ level than children not having a proper
meal. This shows the effect and the direction of effect.
Non-directional Hypothesis

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It is used when there is no theory involved. It is a statement that a relationship exists between two
variables, without predicting the exact nature (direction) of the relationship.
Null Hypothesis
It provides the statement which is contrary to hypothesis. It’s a negative statement, and there is no
relationship between independent and dependent variable. The symbol is denoted by “HO”.
Associative and Causal Hypothesis
Associative hypothesis occurs, when there is a change in one variable resulting a change in the
other variable. Whereas, Causal hypothesis propose a cause and effect interaction between two or
more variables.
The hypothesis of my research topic are as follows:
1. There are incentives that influence employee’s productivity in the organization.
2. There is an incentive that influence and analyze the link between employee performance and
organization performance

1.6 Challenges
1.6.1 Formulation of research aims and objectives. You might have formulated research aims and
objectives too broadly. You can specify in which ways the formulation of research aims and
objectives could be narrowed so that the level of focus of the study could be increased.
1.6.2 Implementation of data collection method. Because you do not have an extensive experience
in primary data collection (otherwise you would not be reading this book), there is a great chance
that the nature of implementation of data collection method is flawed.
1.6.3 Sample size. Sample size depends on the nature of the research problem. If sample size is
too small, statistical tests would not be able to identify significant relationships within data set.
You can state that basing your study in larger sample size could have generated more accurate
results. The importance of sample size is greater in quantitative studies compared to qualitative
studies.
1.6.4 Lack of previous studies in the research area. Literature review is an important part of any
research, because it helps to identify the scope of works that have been done so far in research
area. Literature review findings are used as the foundation for the researcher to be built upon to
achieve her research objectives.
1.6.5 Scope of discussions. You can include this point as a limitation of your research regardless
of the choice of the research area. Because (most likely) you don’t have many years of experience
of conducing researches and producing academic papers of such a large size individually, the scope
and depth of discussions in your paper is compromised in many levels compared to the works of
experienced scholars.

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 Chapter 2

2.1 Literature Review

2.1.1. International Journal of Business Marketing and Management (IJBMM)
Volume 4 Issue 1 January 2019, P.P. 41-48 ISSN: 2456-4559
Conceptual Framework of Incentives The term “incentives”, “Rewards”, and “Recognition” are
used interchangeably in the organization setting and there is no broader difference among them.
However, the main category is the incentives. Meridith (2015) defines incentives as any source
or medium that encourages an employee or group of employee’s to perform better and to exert
more effort beyond expectations. Basically incentives are divided into two main groups:
Financial incentives and non-financial. Financial incentives include direct payment of cash while
non-financial incentives may be in the form of promotion of employee’s, flexible time, autonomy
and involvement in decision making. Hartman, Kurtzand and Moser (1994) state that incentives
are one technique by which employee’s‟ carry out their end of the employment contract, that is,
compensating employee’s for their efforts. In general, an incentive scheme (payment or
programme) is any compensation that has been designed to recognize some specific
accomplishment on the part of an employee. It is expected that the prospect of the incentive
payment will „trigger‟ the desired employee’s productivity behaviour in the employee. Incentives
are either individual or group (organization wide). In this study, financial incentives are designed
to motivate employee’s to improve their employee’s productivity – to increase effort and output
and by producing better results expressed in such terms as objectives for profit, productivity, sales
turnover, cost reduction, quality customer service and on time delivery. This financial
compensation provides extra money for achievement in terms of contribution or output. The
emphasis in financial compensation is on equity, in the sense of paying people according to their
just „deserts‟. Incentive schemes relate compensation to productivity. A primary purpose of an
incentive scheme is to encourage greater productivity from individuals and work groups. The
assumption usually made by management is that money or cash alone may not motivate
employees. In designing incentive schemes, output standards should be established. The standard
is a measure of work that an average, well-trained employee, working at a normal pace, should be
able to accomplish in a given period of time. In addition to motivating employee’s to increase their
level of productivity, incentive schemes may reduce turnover among good performers or
productive workers. Incentive schemes are also cost effective because of savings that often resulted
from productivity improvements. 6.2 Employee and Organization Productivity Productivity is
usually defined as the ratio of inputs to outputs. It essentially measure how efficiently production
inputs such as labour and capital are being used to produce a given level of output (Krugman,

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1994). Okoye and Ezejiofor (2013) opined that organizational productivity is the measure of how
well an organization functions

2.1.2. International Journal of Economics, Business and Accounting Research

(IJEBAR) ISSN: 2614-1280
Incentive
Incentives are remuneration provided by companies that can be valued with money and have a
tendency to be given regularly. Incentives are defined as forms of payment associated with
performance and gain sharing, as sharing benefits for employees due to increased productivity or
cost savings (Burhanuddin, 2015).
This system is another form of compensation directly outside salaries and wages which is fixed
compensation, which is called a compensation system based on performance (pay for performance
plan). Incentives are a driving factor for employees to work better so that employee performance
can increase. Compensation and incentives have a very close relationship, where incentives are a
component of compensation and both are crucial in achieving the overall goals and objectives of
the organization.
The purpose of providing incentives is to fulfill the interests of parties, namely:
a. For companies:
1) Maintaining a skilled and capable workforce so that loyalty is high for the company
2) Maintain and improve employee morale that is shown to be a decrease in the level of labor
turnover and attendance
b. For employees:
1) Increase the standard of living with receipt of payments outside the basic salary
2) Increase employee work motivation so as to encourage them to perform better.
Some forms of incentives that can be given to employees, namely (Rivai, 2005):
a. Yearly bonus
Many companies replace employee income based on services by providing annual, semi-annual or
quarterly
International Journal of Economics, Business and Accounting Research (IJEBAR) Page 23
performance bonuses. Generally this bonus is shared more often once a year. Bonuses have some
advantages incurred by increasing salaries. First, bonuses increase the meaning of payments
because they receive large amounts of wages. Second, bonuses maximize the relationship between
pay and performance.

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b. Direct incentives
Unlike other payment systems based on performance, direct bonuses are not based on formulas,
special criteria, or goals. This reward for performance which is sometimes called lightning is
designed to recognize the contribution of outside employees. Often the award is in the form of
certificates, placards, cash or bouquets of flowers.
c. Individual incentives
Individual incentives are a form of old and most popular incentive payments. In this type,
individual performance standards are established and communicated beforehand, and rewards are
based on individual output.
d. Team incentives
Team incentives are among individual programs and entire organization programs such as revenue
sharing and profit sharing. Team incentives connect individual goals with group goals.
e. Profit sharing
The profit sharing program is divided into three categories. First, distribution programs now
provide percentages to be shared quarterly or annually for employees. Second, deferred
distribution programs place income in a destination fund for retirement, termination, death or
disability. Third, a joint program that shares part of the profits directly with employees, and sets
aside the remainder in the specified account.
2.2. Performance
In the large Indonesian dictionary (Hoetomo, 2005) performance is something that can be
achieved. Performance comes from the word job performance or actual performance, which means
work performance or actual achievement achieved by someone. Performance reflects how far the
success of a job has been achieved. Furthermore, human performance is a function and level of
ability, attitude, and degree of motivation. Performance is behavior real that is displayed by
everyone, as work performance produced by employees in accordance with their role in the
company. According to Suyadi Prawirosentono (1999) performance is the result of work that can
be achieved by a person or group of people in the organization in accordance with the authority
and responsibility of each in order to achieve the objectives of the relevant organization legally,
not violating the law and in accordance with morals and ethics. While the performance in human
resource management books written by Robert L. Mathis and Jhon H. Jackson (2002) also
explained that performance is basically what is done or done by employees. According to
Mangkunegara (2002) argues that the performance results in quality and quantity achieved by an
employee in carrying out his duties in accordance with the responsibilities given to him.
Performance is a real behavior that is displayed by everyone as work performance produced by
employees in accordance with their role in the company. Besides being able to be used as a
standard in determining the level of compensation and administration for employees, performance
appraisal is carried out with the following objectives:
a. Increase mutual understanding between employees about performance requirements

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b. Record and acknowledge the work of an employee, so that they are motivated to

2.1.3. DOI:10.1002/piq.21121
The objective of the study is to investigate the effect of performance-based financial incentives on
work performance. The study hypothesized that the design features of performance-based financial
incentive schemes themselves may influence individuals’ work performance. For the study, survey
methodology was used and 93 technical-level employees who were subjected to a performance-
based incentive scheme for at least two years in their firms responded. Regression analysis was
used for data analysis. It was found that the design features of performance-based financial
incentives schemes explain 51 per cent of the variance in work performance. Six of the incentive
scheme factors, including the goals of incentive scheme, employee participation in setting goals,
incentive scheme type, and payout frequency have significant positive impact on work
performance. Overall, the findings suggest that well-designed and carefully implemented incentive
schemes have significant positive impact on work performance. Keywords: financial incentives,
performance-based financial incentives, Sri Lanka, work performance. Organizations offer
attractive financial incentive packages to attract and retain people with high quality and thereby to
stay competitive (Hutson, 2000; Lawton & Chernyshenko, 2008). The literature also suggests the
possibility of maintaining more than one incentive package within a single organization in order
to meet needs and desires of different employee groups (Lawler, 1990). This paper presents results
of a study that investigated the effect of design features of performance-based financial incentives
on work performance of technical-level employees attached full-time to diverse organizations
belong to the private service sector in Sri Lanka. Although it is expected that financial incentives
increase individual effort and thereby produce “incentivized” behaviour, previous research
conducted in both controlled laboratory studies and field studies provide inconclusive results. For
instance, some studies provide evidence that financial incentives increase individual effort and
thereby produce incentivized behaviour (Bonner & Sprinkle, 2002; Stone, Bryant, & Wier, 2010)
while some other studies provide evidence that financial incentives fail to produce desired
behaviour (Wolf & Zwick, 3 2008) and create negative organizational outcomes such as decreased
trust and cooperation (Stone et al., 2010). The current study attempted to explain whether
performance-based financial incentives could make an influence on work performance of
technical-level employees. In this regard, the literature makes a distinction between “mental” work
tasks (cognitive tasks) and “physical” work tasks (manual labour) (Condly, Clark, & Stolovitch,
2003). Condly et al. (2003) investigated the effect of incentives on cognitive and manual labour
and found that somewhat greater performance gains were realized for manual work than for
cognitive work. However, we have not come across empirical studies that investigated influence
of performance-based financial incentives on work performance of technical-level employees.
Further, as little research has been directed to investigate performance-based financial incentives,
for this study we have drawn literature from financial incentives (such as Jenkins et al., 1998; Rose
& Manley, 2010) as well as incentives in general (such as Stolovitch, Clark, & Condly, 2002).
Therefore, in this article, the terms such as performance-based financial incentives, financial
incentives, and incentives are used interchangeably. In investigating the effect of design features
of performance-based financial incentives on work performance the study hypothesized that the
design features of performance-based financial incentive schemes themselves may influence

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individuals’ work performance. By doing so, the study makes a contribution to the literature in
several ways. First, the literature suggests that the failures of even well-designed incentive schemes
raise the question as to why organizations introduce such schemes (Marsden, 2003). This suggests
the need of more empirical studies in this area. Second, the review of literature suggests that the
majority of articles in academic publications in the area of performance-based financial incentives
and work performance are practitioner viewpoints (e.g. Hutson, 2000) or conceptual papers (e.g.
Hoffman & Rogelberg, 1998). Further, some studies were typical laboratory experiments where
participants know they are in an experiment while some other studies were laboratory simulations
where an attempt is made to make the

2.1.4. International Journal of Management Innovation & Entrepreneurial

Research 3 DOI:10.18510/ijmier.2017.311
INTRODUCTION Shinas College of Technology (ShCT) was established in the year 2005, and it
is the popular one amongst the seven colleges of technology in Oman functioning directly under
the directives of the Ministry of Manpower. The College falls under the jurisdiction of public
sector institutions, which caters to the higher educational needs of Omani youth, offering
diploma programs in Business Studies, Engineering and Information Technology. Presently there
is 396 staff - academic and non-academic serving various departments, centers, and different
units. The college encourages the staff to realize the vision and achieve the goals. The college also
provides all resources to the staff to improve the quality of their efforts. The college uses awards
system to motivate the staff for better work performance. This system includes different ways and
means to attract its employees such as salary benefits, incentives, and employee growth
opportunities towards professional development and training, etc. Serena, Muhammad, and Emran
(2012) stated that the employees would do their best only when they feel that their hard work will
be rewardedin return. Motivation through rewards is of crucial importance. Many superiors
believe that using motivational techniques encourage employees to produce better output. For
example, most technical colleges in Oman select an employee as "Employee of the month." These
kind of appreciating employees encourage them to keep them on the right path. But Shinas
College of Technology has stopped this motivational process and the other such related
monetary incentives for some unknown reasons. The other colleges are still using this kind of
motivational techniquesto enhance the performance of their employees’. As organizations need
a qualitative workforce to attain their objectives, the right kind of strategy in the form of monetary
incentives and benefits will bring in motivation among the employees. The prime purpose of
monetary incentive towards successful accomplishment is to motivate the employees and
encourage them so as to excel in their job performances. So, monetary incentives play an
important role in every work environment whether it is a public sector or a private sector. Oman
Colleges of Technology as a public sector uses this type of incentive technique towards
motivating their employees. Using monetary incentives in technical colleges help to
encourage the employees to be more creative fulfilled and satisfied. This kind of rewards in
organizations leads them to enhance their employees’ performances and reach their goals.
However, the reasons for Shinas College of Technology stopping such motivating monetary
incentives are unknown which might lead to an unconducive environment in the College, and
hence there is the need for the study. The study might look into the impact of not giving such

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incentives to employees; is there a need for such rewards to employees and if so the type of rewards
triggering motivation. RESEARCH METHODOLOGY The study was conducted in Shinas
College of Technology, Shinaz, Oman. 130 questionnaires were collected from all the academic
and non-academic staff of the college through a well-defined questionnaire. REVIEW OF
LITERATURE Berger and Berger (2015) argued that employees prefer to have monetary
incentives in return to their successful accomplishments. Sajuyigbe, Olaoye, and Adeyemi
(2013) stated that rewards are basic conceptual elements in improving employee performances.
Entwistle (1987) propounded that rewarded employees have ahigh degree of motivation and
it directly impacts their performances. However, Buchbinder and Shanks (2017) differed that
monetary incentives motivate only to a certain extent. Kube, Marechal, and Puppe (2006)
confirmed that monetary incentives are effective during the short-term period and noting the
long-term period whereas non-monetary incentives givesignificant and consistent satisfaction.
Danish and Usman (2010) opined that proper usage of rewards as a tool in an organization would
produce a conducive environment so as the employees gets motivated and rise to the occasion.
Lawler (1985) claimed that rewards leads to increased employees’ satisfaction and will have
a direct impact on employee’s performance. Hong (1995) proposed that rewards might motivate
employees only when they yield rewards due to their sincere and hard work. Fairbank and Williams
(2001) suggested thatto stimulate an employee’s creativity managers should use rewards.
Sonawane (2008) stated that it is not only important for their cognizing good job performances
through rewards but also should be encouraged through providing proper feedback. Schaufeli
(2002) found out the need for the rewards in an organization so as to avoid burnouts – the situation
in which employees tend to be not satisfied; will have negative outlooks and a little dedication.
Well performed employees should beincentivized with monetary compensation, which is an easier
and the best way to encourage employees so as to effective and efficient (Pink, 2011). According
to Lemieux, MacLeod, and Parent (2009), performance pay based on a good performance measure
can increase qualitative productivity. Muralidharan and Sundararaman (2009) claimed that the
incentive payment is directly related to the employees’ output, which accelerates their
performances. Perry, Mesch, and Paarlberg (2006) found that in public sector organizations,
financial incentives for individuals is not that much effective; however, they stated that it
depends on the organizational conditions. Every individual employee may not consider merit pay
as a motivating factor (Rynes, Gerhart and Minette, 2004).Bates (2003) indicated that merit
pay could be made as an attractive factor provided the merit pay rise should be not less than
seven percent of the core pay so that it can be perceived as a motivating factor.Lazear (2000)
confirmed that when salary increases, most of the employees diligently dispose of their duties.
Langton and Robbins (2007) emphasized the fact that an individual can be motivated only when
there is a difference in pay between a good performer and an average performer. Salary is one of
the determining factorsin job selection (Lopez 2002;Al-Zoubi, 2012). Bokorney (2007) confirmed
that salary plays couldbe designated as an appreciating factor for an individual. Hislop (2003)
proclaimed that the motivated employees are required in a rapidly growing organization, and

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2.1.5. Effect of monetary incentives on workers’ performance a study of selected
firms in anambra state Dike Lotanna, Okeke Department of Business
administration, Chukwuemeka Odumegwu Ojukwu University, Igbariam
Concept of Monetary Incentives There is rising need for organizations to develop incentive
systems that will motivate staff to work harder and faster. Efficient incentive systems funnel
employees’ efforts towards realization of its goal (Mujtaba et al., 2010). In general, monetary
incentive scheme (payment or programme) is any compensation that has been designed to
recognize some specific accomplishment on the part of an employee. It is expected that the
prospect of the incentive payment will „trigger‟ the desired performance behaviour in the
employee. Whereas there have been a number of interventions to ensure efficient and effective
organizational performance such as improving reward management systems, improving on
communication systems, capacity building programmes, among others, these have had meticulous
success in other settings like in manufacturing sector. (Ong and Teh, 2012; Niki, Nili and Nilipour,
2012). Incentives, as often called, should be aligned with the behaviours that help achieve
organizational goals or performance. Incentives are either individual or group (organization wide).
Further, monetary rewards in and of themselves are often valued as a symbol of one’s social status
and acknowledgment of one’s personal accomplishment (Trank, Rynes and Bretz, 2002). In sum,
monetary rewards can improve employee motivation and performance because they can satisfy a
wide range of low- and 40152 Dike Lotanna et al. Effect of monetary incentives on workers’
performance a study of selected firms in Anambra state high-level needs (Long and Shields, 2010).
In this study, financial incentives are designed to motivate employees to improve their
performance to increase effort and output and by producing better results expressed in such terms
as objectives for profit, productivity, sales turnover, cost reduction, quality customer service and
on time delivery. This financial compensation provides extra money for achievement in terms of
contribution or output. The emphasis in financial compensation is on equity, in the sense of paying
people according to their just deserts. For example, monetary rewards provide employees with the
means to enhance the well-being of their families, as well as pay for leisure activities with friends
and colleagues, thereby helping satisfy the higher-level need to belong in groups. Employees can
also use monetary rewards to purchase status symbols such as bigger houses (satisfying the higher
level need for respect from others) and pursue training, development, or higher education
(satisfying the higher-level need for achieving mastery). Theoretical literature Salary and wage
and its effect on workers performance While many workers claim that job satisfaction and a sense
of purpose drive their productivity, salary also plays a distinctive role in how well your employees
perform. Workers have a wide range of reasons for heading to the office, factory or farm every
day, but monetary compensation is generally at the top of the list (Linda, 2016).The determination
of wages is a central concern in labor economics, and a long standing tradition emphasizes the
wage policy of the firm (Paul, 2009). The key is to structure compensation optimally to get
maximum productivity from workers, acknowledging that talented employees must be rewarded
and retained in competitive job markets. People are often motivated by money. It is argument that
mostly individuals that get higher education are not satisfied their jobs. This has made
organizations design a good compensation plan to retain and motivate their employees. The salary
a worker is paid by his employer can have a great influence on his performance in the

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administration. A worker doesn’t simply view his salary as an amount; he sees it as the value his
employer places on him as a worker. The level of appreciation he feels can have a direct impact
on his overall performance (Laura, 2016). Although psychologists point to the inherent value of
work to human beings and identify the beneficial impact it has on their wellbeing, the rational
economic behavioral model underpinning labour economics equates effort with disutility. As such,
economists assume employees are motivated by monetary rewards (Alex, Babatunde and Rob,
2010). A worker is more likely to perform to his potential if he’s happy with the salary he is
earning. A person earning a high salary feels motivated to do a good job, because he wants to
please his employer to retain his position. His salary brings him a feeling of security, allows him
to feel accomplished and gives him a high status ranking that he enjoys. A person is much more
willing to put in extra hours at the office if he feels his financial rewards are a fair trade-off.
According to Zeynep Ton, a professor at the MIT Sloan School of Management, research has
shown that an employee satisfied with his pay is more productive and motivated. When a company
doesn’t pay its employees well, the general office morale is low. Many workers may need to get
second job to make ends meet, which leaves them tired, overworked and resentful. Performance
rates are typically low; as workers feel little motivation to exceed standards and absentee rates tend
to be high. Employee turnover in these companies is often very high, as people don’t want to work
for a company paying below industry standards. Meyer et al. (2001) implies that a well-constructed
compensation package will enhance productivity through attraction of higher levels of talent,
increased effort, and reduced turnover. Effect of special benefits on workers satisfaction No
resource is more critical to an organization’s success than its human resources (DeNisi and Griffin,
2008); people are the only strategic weapon a company has that cannot be copied by its competition
(DeCenzo and Robbins, 2010,). Employee benefits have a small role to play in engagement; they
tend to be more effective on recruitment and retention. Benefits are what management theorist
Frederick Hertzberg would call a ‘hygiene factor’. The idea is that if you don’t give people enough
hygiene factors they will be demotivated, but not necessarily motivated. You don’t necessarily get
anything back by being overly competitive or giving people additional provision on benefits, or
indeed pay. But if you fail to meet their needs personally or if you fail to be competitive in the
marketplace then you are screwed. So not offering benefits can damage business performance and
affect the ability to compete for recruits, and perhaps chock off access to key talent; but offering
them does not directly drive business growth. As with all business and human capital strategies,
what and how you offer benefits depends on your particular workforce’s business drivers. For
example, such as Job training, educational assistance, meals that are provided for the convenience
of the employer, and employer-provided vehicles used for business are among the common
working condition benefits for most small businesses. Currently, especially in the developed
world, employee benefits packages have become an important part of the total compensation or
organizational expenses. Employee benefits average 40% of the total compensation package
(DeCenzoand Robbins, 2010). Benefits have grown in size, importance and variety (DeCenzo and
Robbins, 2010; Edgar and Geare, 2005; Milkovich and Newman, 2008), and the U.S. Chamber of
commerce, concludes that employee benefits are one of the greatest challenges in business today
in attracting and retaining quality employees (U.S. Chamber of Commerce, 2008). This growth
suggests that employees increasingly value employee benefits as part of their overall compensation
package (Mussie, Kathryn and Abel, 2013) Effect of bonuses on workers performance Bonus pay

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is compensation over and above the amount of pay specified as wages or salary and it is only
distributed as the organization is able to pay or as outlined in an employment contract. Bonus pay
is used by many organizations to improve employee morale, motivation, and productivity or as a
thank you to employees who achieve a significant goal. Employers with well-developed
performance management systems often connect compensation to performance appraisal ratings
to determine the amount of salary increases and bonuses for employees who meet or exceed the
company's performance expectations. Other companies may include bonuses as part of their
employee recognition and rewards programs or pay employees bonuses upon reaching
organizational goals. Bonuses for whatever reason affect employee performance in a number of
different ways (Ruth, 2016). There are different categories of bonuses which are; 40153
International Journal of Current Research, Vol. 08, Issue, 10, pp.40151-40160, October, 2016
Performance Bonus Employers pay performance bonuses to employees who achieve satisfactory
or high ratings during their annual performance appraisals. An incentive-based bonus links the
amount of the payment to the level of performance

2.1.6. Financial Incentives: The Impact on Employee Motivation R. Rina

Novianty, University of Padjajaran Bandung, Siti Noni Evita, University of
Padjajaran Bandung
Abstract
The financial incentive is a bonus given to employees as a result of employee work motivation in
the company. This research use approach of research method with the approach of path analysis.
Measurement of the research using questionnaires with a semantic differential scale, while the
population in the study consisted of 43 employees. The result of the research shows that the
dimension of the research variable is valid and the variable of financial incentives relationship has
a positive effect on employee motivation. Keywords Financial Incentives, Employee Motivation.
Introduction
Individuals will do an action because of the encouragement from both inside and outside
themselves to fulfil their needs. The role of employees who have high motivation and supported
skills and knowledge in doing the work is needed. This can mean that one of the determinants of
an increase in company performance is the motivation of its employees. This is supported by
Weiner's (2014) assertion in his book which states that work motivation is the driving force that
creates the excitement of one's work so that they will cooperate, work effectively and integrate
with all their efforts to achieve satisfaction. “Several factors can affect employees’ motivation. In
recent research, the relationship between job satisfaction, motivation and low burnout level
between the employees have been verified (Papasotiriou et al., 2018)”. Also mentoring can
positively contribute to career development and motivation, especially in the case of new
employees (Ktena et al., 2018) Incentives in the form of finance are expected to increase employee
motivation because the incentives in the form of financial employees can be allocated to the needs
he wants. Dessler added, Giving this incentive requires a fair and decent employee perspective.
Fair has the meaning of financial incentives given the company in accordance with or
commensurates with the work and achievements achieved by employees. While feasible means

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financial incentives given to employees can meet the needs of these employees, the feasibility can
also be seen by comparing the provision of incentives made by other companies (Dessler, 2014).
Distributor Company in Bandung which is divided into 3 parts, namely field employees (sales
associates), administrative employees, and employees have 43 employees in one working day, and
employees can work at least 10 hours of work with the possibility of additional work. In connection
with the above problems, then the impact that will appear on the employee is a labour turn-over.
Several factors are related to the problems that have been stated before, and the research was
conducted on distributor companies in Bandung, this is because only a number of distributor
companies have decreased sales targets of companies such as consumers, production and other
things due to the low motivation of employees so that the impact on incentives. This research was
conducted because of the ineffectiveness of company incentives to employees, the low and work
motivation of employees. Literature Review Variable of Financial Incentive Financial Incentive is
another form of direct compensation beyond salary which in other words is called a performance-
based compensation system. According to Dessler (2014), “Financial incentives are rewards or
replies in the form of the financial form given to employees whose level of production exceeds
predefined standards”. Meanwhile, according to Werther & Davis (1989) also added that the
incentive system connects employee compensation and work performance by paying according to
the results of their work and not because of seniority or length of work. Meanwhile, according to
Hasibuan (2013) argues that as a means of incentive motivation aims to direct and drive the power
and potential of employees to want to work hard and enthusiastic in achieving optimal work, in
order to realize the goals that have been determined. The existence of incentives that provide pay
based on work performance will enhance employee motivation in the effort to achieve the goals
set. The research by Lee (2015) proves that financial incentives have a significant effect on the
performance of medical personnel, which is undoubtedly the result of an increase in motivation
based on given financial incentives. The research, Basu & Kiernan (2016), adds that financial
incentives affect healthy lifestyle changes. The discussion raised almost identical to the subject of
this study regarding motivation. Therefore, the research is also capable of being the trigger for
doing this research. It can be concluded that Financial Incentive is the result of remuneration
received by employees in the form of financial based on contributions and work performance that
exceeds the average standard of other employees. Financial Incentive is done as a measure of
investment by the company to its employees. Besides, incentives aim to motivate employees to do
their work which leads to the achievement of company goals.

7. Samuel olufemi awotidebe (art/2015/1436)

Background to the Study Employees are forced to spend more time at the office – certainly
exceeding the typical 40-hour work per week; but, exceeding the office hours does not mean
increasing their efficiency. Instead, firms should make an effort to increase the efficiency of the
employees, which will lead to individual growth and development of the firm (Makad, 2015).
Many companies' returns are under pressure; hence, it is important that employees carry out the
correct tasks in the right way. By working efficiently, more can be produced with the same amount
of input (resources), thereby, achieving more for lower costs, a higher return and less pressure
(Noordzij, 2013). According to Drucker (1974), efficiency means “doing things in the right way”.
Furthermore, employee efficiency is an employee characteristic, which relates to the speed and

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accuracy of an employee at the job task. The concept relates to employee productivity, which
provides that the more efficient an employee is, the more productive they will be if well-managed
(Fandom, 2017). Invariably, employee efficiency is a complex measurable parameter which
characterizes an output produced by efforts and achievements of an employee
(TaskManagementGuide, 2018). Akerele (1991) blamed the productivity of Nigerian workers on
several factors; among them is employer’s failure to provide adequate compensation for hard work
and the indiscipline of the privileged class that arrogantly displays their wealth, which is very
demoralizing to working class and consequently reduced their productivity. Business
organizations are facing significant challenges on internal and external work environment, so,
organizations cannot maintain institutional performance without providing incentives to their
employees based on their efficient and effective work. Incentives are variable 2 awards granted to
employees according to variations in their performance as anything that can attract an employee’s
attention and motivate them to work can be called incentive. An incentive aims at improving the
overall performance of an organization (Malhotra, 2017). Incentives are financial rewards paid to
workers whose production exceeds a predetermined standard. It was Fredrick Taylor who
popularized scientific management and the use of financial incentives, such as systematic
soldiering and fair day’s work, in the late 1800s (Dessler, 2008). Flippo (1984) defines
performance incentives as the payment made to workers or group of workers based on the amount
of output or result achieved or payment made for the purpose of motivating workers’ performance
towards a particular high target. Typically, different types of incentives are categorized into two
groups: financial and non-financial incentives. While financial incentives include base pay, profit
sharing, gain sharing, benefits, initiative rewards and special rewards (Huttu, 2010), non-financial
incentives comprise feedback to employees (Bari, Arif & Shaib, 2013; Huttu, 2010), recognition
(Bari, Arif & Shaib, 2013; Huttu, 2010; Oburu & Atambo, 2016; Sammer, 2011), possibilities to
participation (Huttu, 2010; Oburu & Atambo, 2016), better work environment (Bari, Arif & Shaib,
2013; Oburu & Atambo, 2016) career development (Bari, Arif & Shaib, 2013; Oburu & Atambo,
2016; Sammer, 2011) and training (Oburu & Atambo, 2016; Sammer, 2011; Waqas & Saleem,
2014). Unfortunately, some of the employees of the deposit money banks in Dutsin-Ma Local
Government Area of Katsina State are not efficient in their work. For instance, some of the
customers of one of the banks once complained that the bank employees were too slow when
posting deposits, while another bank did not have an effective and efficient customer care
representatives. While attending to customers, some employees of another bank within the study
area would just leave the counter without properly excusing themselves from the customers. 3
Against this background, this study is an attempt to contribute to the body of knowledge on the
subject matter by conducting a study on the effect of performance incentives on employee
efficiency using Deposit Money Banks in Dutsin-Ma Local

2.1.8. Relationship between Incentives and Organizational Performance for

Employees in the Jordanian Universities Marwan Al-Nsour (Associate
professor) Faculty of Planning and Management, Al-Balqa’ Applied University
Assalt, Jordan

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The purpose of this study is to investigate the impact of financial and moral incentives on
organizational performance for the employees of the Jordanian Universities. This study aims at
identifying the role of the Jordanian universities in meeting the employees' societal needs, knowing
the implemented incentives approach and knowing the level of performance in the Jordanian
universities. Statistical packages for social sciences (SPSS) program was used for descriptive
analysis. Five universities were selected for the purpose of this study. The main findings indicate
that there is an adequate level of incentives provided to employees. Financial incentives ranked in
1st place while moral incentives ranked in the 2nd place. Also, it was found that there is a high
level of organizational performance. Customer satisfaction ranked in the 1st place, internal
business process in the 2nd place followed by learning and growth. There is relationship between
financial & moral incentives and organizational performance as well as between financial & moral
incentives and internal business process and customer satisfaction. There is an effect of moral
incentives on learning & growth but there is no relationship between financial incentives and
learning & growth. Finally, this study has verified further research opportunities that could enrich
the understanding of Incentives and organizational Performance in the universities of Jordan.
Business organizations are facing significant challenges on internal and external work
environment, so organizations can not maintain institutional performance without providing
incentives to their employees based on their efficient and effective work Jordanian universities,
like other universities, are facing many challenges under globalization, especially in terms of
providing incentives to employees, so these universities need to formulate an integrated system of
incentives commensurate with the developments of work to serve general objectives of increasing
productivity, cost reduction, provide high quality services, achieve competitive share in the market
and customer satisfaction.

2.1.9. Employee motivation incentives and their impact on the organization's

productivitydoi: 10.21522/tijmg.2015.se.19.01.art007 authors: jacqueline aziri
This Article Presents Literature On Employee Motivation Incentives And Evaluates Their Impact
On Organizational Productivity. The Article Aims At Explicitly Highlighting The Effect Of
Incentives On Different Elements That Influence Organizational Productivity. A Qualitative
Analysis Of Literature Was Employed To Consolidate Literature That Informed The Study. The
Findings Indicate That Incentivizing The Organization's Activities Undertaken By Human
Resources Helps In Improving Organizational Productivity. The Results Showed That Incentives
Increase Productivity By Enhancing The Following Elements; Employee Work Performance,
Employee Engagement, Innovation And Creativity, Organizational Commitment And Job
Satisfaction. This Finding Will Provide Useful Information To Organizations When Designing
Incentive Schemes And Analysing Their Functions And General Impact. Keywords: Employee
Motivation, Incentives, Organizational Productivity, Motivators

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2.1.10 The impact of incentives on employee performance. A case of First
Capital Bank in Association with Barclays (FCB) by Mvura, Tafadzwa.
This study was conducted to investigate the impact of incentives on employee performance.
Organisations in recent times have faced very stiff competition and thus have tended to use various
techniques and tools to achieve competitive advantage. Incentives have proved to be one such tool.
The study used First Capital Bank of Zimbabwe in Association with Barclays (FCB) as the case
study. A descriptive survey research design was adopted. The 200 permanent employees at FCB
Head Office constituted the study population. The research also adopted stratified random
sampling techniques to draw a sample of 60 employees. These comprised both managerial and
non-managerial employees. The sample was 30% of the population. The researcher used secondary
data from literature related to the topic under study. The researcher also collected primary data
through self-administered questionnaires and semi structured interviews. The data was presented
in tables, bar graphs and pie charts. Microsoft Excel was used to analyse the data. The research
findings revealed that there was a positive relationship between employee performance and
incentives. The study also revealed that the incentive policy at FCB was not effective. Most
responses attributed this to the inability to fairly measure employee performance and a lack of
education on the policy for employees. Based on the findings the researcher recommended a
review of the incentives policy and adoption of a more transparent employee performance
measurement approach. The researcher also recommended that employees be consulted when
incentive packages were being reviewed.

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 Chapter 3

3.1 Data presentation

Regression
Statistics
0.7977
Multiple R 19
0.6363
R Square 56
Adjusted R 0.6128
Square 95
Standard 2.7489
Error 86
Observations 100

Multiple R. This is the correlation coefficient. It tells you how strong the linear relationship is.
The value of Multiple R is between 1 and 0 means a perfect positive relationship. Standard Error
of the regression: An estimate of the standard deviation of the error μ. This is not the same as the
standard error in descriptive statistics! The standard error of the regression is the precision that the
regression coefficient is measured; if the coefficient is large compared to the standard error, then
the coefficient is probably different from 0.

ANOVA
Significance
df SS MS F F
204.974 27.1240
Regression 6 1229.846 3 5 1.78E-18
7.55692
Residual 93 702.7939 4
Total 99 1932.64

Anova splits the sum of squares into individual components.

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 Coeffic Standard P- Lower Upper Lower Upper
ients Error t Stat value 95% 95% 95.0% 95.0%
0.0702 0.029 0.976 4.8590 -
Intercept 99 2.411483 152 806 -4.71843 26 4.71843 4.859026
12.62 7.19E 0.68964 0.9471 0.68964
incentives 0.8184 0.064836 256 -22 8 52 8 0.947152
0.0694 0.040 0.967 3.4734 -
D1 76 1.714179 53 757 -3.33454 96 3.33454 3.473496
- -
0.3255 0.194 0.845 2.9908 -
D2 1 1.670047 91 89 -3.64189 77 3.64189 2.990877
0.5093 0.306 0.759 3.8094 -
D3 46 1.661853 493 915 -2.79077 58 2.79077 3.809458
0.9240 1.219 0.225 2.4288 -
D4 94 0.757738 543 722 -0.58062 11 0.58062 2.428811
0.2183 0.150 0.880 3.0965 -
D5 59 1.449395 655 574 -2.65985 7 2.65985 3.09657

3.2 Data analysis

The above analysis tries to explain the impact of Incentives on Employee Performance.
Considering the same Regression analysis was performed. The dependent variable is Employee
Performance and independent variables are Incentives received by employee, age and sector of
employment.
The analysis shows an adjusted R square value of 0.612895 which implies that the model is a Good
Fit. Furthermore, the anova suggests that the model is significant with a p value less than 0.05. On
examining the coefficients table, it is observed that the variables age and sector of employment do
not have a significant influence on the performance of an employee, since the p values
corresponding to the variables are greater than 0.05. The variable, incentives, however, has a
significant influence on the performance of an employee, since the p value corresponding to the
variable is less than 0.05. With an increase in incentives by 1 unit, performance of an employee
increases by 0.8184 unit.
The analysis suggests that the impact of incentives on employee performance remains the same
irrespective of age and sector of employment.

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 Chapter 4

4.1 Conclusion
The study investigates the effects of incentives on employee's performance. The study had the
following objectives: To estimate the determinants of employee performance and to study the
effect of incentives of employee performance. To achieve these goals, a questionnaire was
designed based on the objectives. The completed questionnaires was processed and analyzed using
Regression analysis. The analysis shows an adjusted R square value of 0.612895 which implies
that the model is a Good Fit. Furthermore, the anova suggests that the model is significant with a
p value less than 0.05. On examining the coefficients table, it is observed that the variables age
and sector of employment do not have a significant influence on the performance of an employee,
since the p values corresponding to the variables are greater than 0.05. The variable, incentives,
however, has a significant influence on the performance of an employee, since the p value
corresponding to the variable is less than 0.05. With an increase in incentives by 1 unit,
performance of an employee increases by 0.8184 unit. The analysis suggests that the impact of
incentives on employee performance remains the same irrespective of age and sector of
employment. The findings of this study revealed that there was a positive relationship between
incentives and productivity, alongside monetary incentives, another key factor in motivating
employees is to involve them in the process aimed at attaining organizational effectiveness because
without their cooperation the organization cannot perform. The study recommends the
establishment of a unit to look at issues of incentives that will enhance productivity. Incentives
increase performance by boosting the value people assign to work goals, causing them to make
stronger commitments to those goals and achieve them. The program has to provide the meaning,
rewards, communication, and support that foster a sense of value.

4.2 Limitations
4.2.1 Due to the random and uneven inputs some difficulties were faced.
4.2.2 As most of the inputs were from students so lied in single age group.
4.2.3 The data is bounded to some limited region only. Due to which it may vary when compared with
voluminous data.
4.2.4 People were not truthful while filling up the questionnaire
4.2.5 Corona virus and lockdown was also a limitation for collecting primary data.

27 | P a g e
4.3 Scope for further studies
4.3.1 This test could conducted pan India.
4.3.2 We can study the employee performance on specific incentives that are monetary and non- monetary.
4.3.3 The questionnaire can add more question about the employee’s motivation factor.

4.4 Keywords

S.No Keywords Meaning

1. Employee performance is defined as how an employee fulfills their job duties and
executes their required tasks. It refers to the effectiveness,
quality, and efficiency of their output.
2. incentives a thing that motivates or encourages someone to do
something.
3. regression is a type of testing that is done to verify that a code change in
the software does not impact the existing functionality of the
product.

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 Chapter 5

5.1 Recommendations
The researcher recommends the following:
1. Interest that employees' incentives commensurate with the level of their performance at work to
motivate them to the elevation.
2. Focus on providing fair and adequate compensation when retired employees.
3. Interest in developing an effective system to evaluate the performance of staff.
4. The interest in providing moral support and praise for the staff to raise the level of their
performance.
5. Further studies on the subject of the study through applied too their sectors.

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journal of Business and management, 8(21), 41.
23. boyne, g. A. (2010). Performance management: does it work. Public Management and
performance: research directions, 207-226.
24. basheer, m. F., khorrami, a. A. A., & hassan, s. G. (2018). Patronage factors of islamic
banking system in pakistan. Academy of Accounting and financial studies journal, 22, 1-9.
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industry of saudi arabia with mediating Effect of job security. International journal, 11(2), 226-
240.

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 Appendices/Annexure

INCENTIVES ON EMPLOYEE PERFORMANCE

To study the IMPACT OF INCENTIVES ON EMPLOYEE PERFORMANCE in
different sectors.
*STUDENTS*
Are required to fill according to their understanding and perspective.
*Required
Name
Age *
Below 25
25-40
40-55
Above 55
In which sector do you work? *
Private Sector
Public Sector
Student (Are required to fill further according to their understanding and
perspective)
Other:
Do you get Incentives in your organization? *
Highly Disagree
1
2
3
4

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5
Highly Agree
Are you satisficed with incentives you get from your company? *
Highly Disagree
1
2
3
4
5
Highly Agree
Does Monetary and Non-Monetary incentives go hand in hand to keep the
employee motivated? *
Highly Disagree
1
2
3
4
5
Highly Agree
Work recognition and appraisal (as non-monetary) incentives motivates employee
towards job? *
Highly Disagree
1
2
3
4

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5
Highly Agree
Does your organization uses non-monetary incentives (like gift vouchers, movie
tickets) to motivate employees? *
Highly Disagree
1
2
3
4
5
Highly Agree
Is monetary incentives enough to motivate employees? *
Highly Disagree
1
2
3
4
5
Highly Agree
Does monetary incentives develops employee attitude towards organization? *
Highly Disagree
1
2
3
4
5

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Highly Agree
Should incentives be linked with performance of employees? *
Highly Disagree
1
2
3
4
5
Highly Agree
Does positive result of work performance in form of incentives motivate employee
to work? *
Highly Disagree
1
2
3
4
5
Highly Agree
Rate the following with 1 being least likely/highly disagree and 5 being most
likely/highly agree? *
1 2 3 4 5
Frequency of an increment in salary
Meeting targets on time
Frequency at which you become employee of the month
Satisfaction from the work performed
Are you Satisfied with the work-life balance

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Frequency of an increment in salary
Meeting targets on time
Frequency at which you become employee of the month
Satisfaction from the work performed
Are you Satisfied with the work-life balance

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