Incentives can lead to improved performance Essay

Incentives can lead to improved performance - Essay Example Desirable incentives can improve employee motivation and therefore performance if constraints are applied reasonably. This paper explores the relationship that exists between incentives and employee motivation. Naturally, human beings act purposefully. The hope for a reward therefore is a powerful incentive that can motivate people to do certain things. In the organizational setup, incentives can be financial or non-financial, and positive or negative. Positive incentives are those that offer positive assurance that certain needs or wants will be fulfilled. On the other hand, negative incentives re those that are purposely applied to correct the defaults or mistakes of workers. Some common forms of incentives include job security, job satisfaction and job promotion. There are several reasons behind the promise of incentives in an organization. Some of the main reasons include to increase productivity, encourage enthusiasm, encourage job satisfaction, increase commitment, and to shape people’s behavior and attitudes toward work (Harpaz, 1990). Individuals will always do whatever they wish to do or otherwise do what they are motivated to do. Many theorists have defined motivation in various ways. Kreitner defines the term as the psychological process that defines the orientation and purpose of behavior. Others define it as the internal drive to satisfy a need that is not satisfied (Murphy, 2009). From the above definitions, motivation may be assumed to be the inner force that drives people to realize personal and organizational goals. Some of the theorists that have contributed to the understanding of motivation include Abraham Maslow (hierarchy of needs), Skinner (reinforcement theory), Herzberg (two- factor theory), Adams (equity theory) and Vroom (expectancy theory) (Terpstra, 1979). According to Maslow, there are five levels of needs. The lower level needs have