Define Incentives

Question

Write short note on Incentives?

Answer 1

Incentives are monetary benefits paid to workmen in lieu of their outstanding performance. Incentives vary from individual to individual and from period to period for the same individual. They are universal and are paid in every sector. It works as motivational force to work for their performance as incentive forms the part total remuneration. Incentives when added to salary increase the earning thus increase the standard of living. The advantage of incentive payment are reduced supervision, better utilisation of tackles, reduced lost time, reduced scrap, reduced absenteeism and turnover & increased output.

According to Burack & Smith, “A motivation arrangement is a plan or plan to motivate individual or group on performance. An incentive programme is most frequently built on monitory rewards (incentive pay or financial advantage), nevertheless may also comprise a variation of non-monetary rewards or prizes.”