2. Incentives
Incentive payments are over and
above regular wages and allowances.
Incentive payment is related to the
performance of workers individually. Such
extra payment will be for exceptional good
performance and not for formal performance.
It will not be uniform to all workers.
3. Definition of Incentives
As per National Commission on
Labour, wage incentives are extra financial
motivation. They are designed to stimulate
human effort by rewarding the person, over
and above the time rated remuneration, for
improvements in the present or targeted
results.
Variable rewards granted according to
variations in the achievement of specific
results.
4. Types of incentive plans
Individual Plan
Rowan
Halsey
Taylor
Group Plan
Profit sharing
Bonus Payment
5. Advantages of Incentive
1) Motivation of emloyees for better
performance.
2) Benefits of extra payments.
3) Improves productivity of employees.
4) Full utilisation of production capacity.
5) Attractive and profitable to company
management.
6) Miscellaneous advantages.
6. Dis-Advantages of Incentives
1)
2)
3)
4)
5)
6)
Quality of production may be affected.
Introduction of new techniques is difficult.
May lead to disputes.
Possibility of accidents in production unit.
Unity among employees may get affected.
Is ethically unfair.
