7/21/2019 Incentives

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How effective are incentives?

What is an incentive?

An incentive is something that incites or tends to incite to action or greater effort, as areward offered for increased productivity.1

In other words, it is something that motivates someone to perform certain actions. Aperson who is motivated will want to accomplish his tasks on his own instead of needing sometype of outside stimulation in order to get the job done.3  In the past, employers used a methodcalled KIA, where they would give their employees a kick in the pants whether it would bephysical or psychological, in order to assure the completeness of the tasks given. 3 !hortlyafterwards, people started to realise that the KIA method had a more negative impact comparedto its positive outcomes. he idea of KIA created movements for individuals to accomplishtheir tasks but it did not have any effects of motivation.3 herefore, another method had to beintroduced and it was not until the "#$%s and "##%s, where the idea of using incentives in abusiness environment appeared.2

In most cases, employees tend to always complain about their work blaming therelationship they have with their supervisors, the working conditions and the salary. &n thecontrary, when incentives are involved, these employees are more likely to look on the brightside of the situation by using the incentives for motivation and forget about their complaints. hefour main categories of incentives are appreciation, compensation, recognition and rewards.Appreciation incentives include company paid activities, lunches, parties and events.'ompensation incentives include raises and bonuses. (ecognition incentives include praisingemployees by presenting them with a certificate for their achievements. And reward incentivesinclude gift certificates and other monetary rewards. (eferring to the diagram )*hibit " in thearticle  How do you motivate employees? By Frederick Herzberg, there are several factors ofincentives such as achievement, recognition, responsibility, advancement, growth and the workitself that acted as motivators and lead the individuals who were surveyed to e*treme job

satisfaction.3

he effectiveness of incentives is shown by the outcomes and results of employees due to job satisfaction. +ob satisfaction creates an environment where an individual feels selfmotivatedto work as there is always something he is gaining in form of an incentive whether it is personalgrowth and achievement or recognition and responsibility.3  When an employee has been givenincentives and responsibilities, he considers himself as an important member of his organi-ationhence creating motivation for him to accomplishing his tasks as there will be a reward for him inthe end.

o conclude, I believe that incentives are very effective in shaping human behaviour, especially

in an organi-ational or business setting. )mployees who are given incentives have motivation tocomplete their given tasks and this eventually leads to a routine where they will never need anyoutside stimulation and will continuously produce positive results for their company.

APA citations

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