IMPORTANCE OF INCENTIVES IN ENHANCING WORKERS PERFORMANCE IN CONSTRUCTION INDUSTRY

IMPORTANCE OF INCENTIVES IN ENHANCING WORKERS PERFORMANCE IN CONSTRUCTION INDUSTRY

CHAPTER ONE

INTRODUCTION

Background of the Study

The corporate goal of every business is to at least survive and be productive if not making a profit. However, a company by itself cannot do this but the people in the organization do. Employees‟ effort creates the wealth, which enables the company to invest in new systems, products and services for the future. One major problem facing organizational managers all over the world and in all sectors of every economy, be they private or public, is how to obtain optimum performance from employees.

Efficient management of a company’s human resources and investment is a major source of competitive advantage in which an organization can develop and stay ahead of its competitors. This is possible when an employee on individual and/or group level is highly recognized and rewarded for performance. The important question that needs to be considered here is which reward systems or incentive package or packages is the best? There are so many reward systems available to organizations. It is important that individuals are motivated in different ways and there is a variety of reward solutions to meet their need. Some reward systems have a direct effect on the output of a company in both quality and quantity. Others help to create a culture of high performance and customer service through acknowledging the special efforts of employees. Others also enable organizations to establish an environment that encourages and values the contributions of all team members. It is through the organization’s reward systems that good employees are attracted to the organization, decide to stay within the organization and then consciously dedicate to perform well.