THE IMPACT OF MOTIVATION AND INCENTIVES ON EMPLOYEES JOB PERFORMANCE AND PRODUCTIVITY

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THE IMPACT OF MOTIVATION AND INCENTIVES ON EMPLOYEES JOB PERFORMANCE AND PRODUCTIVITY

ABSTRACT

The success and the survival of any organization are determined by the way the employees are motivated and rewarded. The reward system and the motivating incentive will determine the level of employees’ commitment and their attitude to work.  However, any organization that wants to achieve it objective as regards the research topic “the impact of motivation and incentives on employees’ job performance and productivity”. Employers must have a thorough understanding of what drives the employees have to perform efficiently and also serve as a guide in determine the most reliable and better performance.

CHAPTER ONE

INTRODUCTION

1.1   BACKGROUND OF THE STUDY

One of the major problems facings most employers in both public and private organization is how to motivate their employees in order to improve performance and productivity. Economics based on the assumption that monetary incentives improve performance. It is generally believed that effect of monetary incentives is unambiguously positive, large monetary incentives improve employee job performance and productivity. Motivation is very important and plays an important role on the performance and productivity of employees for the success of any organization.

According to Chaudhary and Sharma (2012) the word motivation is derived from “motive”. The meaning of motive is need, wants and the desire of the persons. So employee’s motivation means the process in which organization inspiring our employee with the shape of rewards, bonus etc for achieving the organizational goal.The issue of employee performance cannot be overemphasized. The general believes is that employee will not perform to the best of their ability unless they are motivated to do so. Various researchers have come up with various ways to motivate people at work. However, because human beings are different from one another in terms of needs. Some employees are motivated financially and some non financially but recent studies have shown that the combination of financial and non financial incentives can motivate employees to perform well on their job.

Motivation is the main factor that affects the human resources of the organization. The organization should be motivating their employees for the best performance or for achieving the organizational goal. Also, motivation will lead to the fact that worker or employee’s efficiency of the organization will seriously do his duties and responsibilities Azar and Shafighi (2013).  Attractive salaries also are a valuable tool and play an important role to increase employers’ performance and also increase the productivity of an organization Muogbbo U.S (2013).

Motivation is one of the most important term of psychology and most of manager who want maximum output and productivity tackle this with a good way and motivate their employee in better way and also increase the cooperation between employees and managers. It also encourage their responsibilities and overseas other employees and monitor their performance along with their maximum interaction towards work and knowing employee’s working capacity and assign work according to their capacity to get maximum productivity Ali, Abrar and Haider (2012).

An individual who possessed skill, ability and knowledge will not do much without being motivated. However an individual with skill, ability and knowledge added with motivation is somehow to succeed. Motivation is the willingness to work, the drive and stimulations which enables individual to perform their work. Managers in an organization continuously seeking for ways to create a motivating environment where employees will work at their optimum level to achieve the organization objective.

1.2  STATEMENT OF PROBLEM

Organization employee’s leaves their work due to the fact that they are not well motivated enough. Though, an organization motivates its employees in order to achieve their vision, mission and goal. Some are not willing to leave because they are enjoying some benefit in terms of promotion which leads to increase in salaries and wages, bonus and some other incentives.