THE EFFECT OF MOTIVATIONAL INCENTIVES ON EMPLOYEE PERFORMANCE

THE EFFECT OF MOTIVATIONAL INCENTIVES ON EMPLOYEE PERFORMANCE

CHAPTER ONE

INTRODUCTION

1.0    General Introduction

Most corporate executives in most public and private sectors organizations regarded materials and financial source as the most important assets in any given industry or organization. This, thinking as stated above, has dramatically changed. In most organizations, human resources are now given without priority. It is people that make organizations and unless they are recognized and treated, the result will be negative attitudes which can, by extension lead to negative result in the form of poor performance. Therefore, the first thing to communicate to the men you have to manage is the fact that they are important people.

You can achieve something with the most difficult individual if you realize and sincerely believe in his personal importance, dignity and potential. You can boost his morale so that his productivity will rise beyond your hopes. Output is as much dependent on morale as an incentive (financial or otherwise) or physical working conditions. People like to feel they matter as individuals to their management, that they are been consulted about things, that their work matter, that the superior really knows what they are doing and they are also compensated to do more (incentives).

1.1    Background of the Study

It is known fact that the principal motive of management of any organization is to make individual and people contribute positively towards the activities which it consists. So as to achieve the mission and goal of the enterprise employee motivated.

Hermann motivates are based on need such as psychological requirement for water, food, sleep and shelter while others needs may be regarded as secondary such as self esteem status, affiliation with others, compliment and self assertion or satisfaction (Daniel, 1982).