Incentive Pay: Employee Motivation Key

Topics: Motivation Pages: 5 (1133 words) Published: February 17, 2016
ACCOUNTING
 STRATEGY
 AND
 CONTROL
 (AC
 411)
 

 
ESSAY
  1:
  Do
  you
  believe
  that
  incentive
  pay
  is
  truly
  effort-­‐inducing;
  that
  is,
  drive
 
employees
 to
 perform
 at
 their
 best?
 Discuss
 

 
In
  recent
  times,
  companies
  are
  faced
  with
  a
  lot
  of
  competition
  and
  they
  need
  to
 
constantly
 devise
 strategies
 to
 tackle
 this
 competition.
 They
 are
 continuously
 looking
 
for
  ways
  to
  increase
  the
  performance
  of
  the
  company
  and
  ways
  to
  keep
  their
 
workers
  and
  other
  employees
  motivated
  so
  that
  they
  deliver
  their
  best
  in
  such
  a
 
competitive
  atmosphere.
  Incentive
  pay
  is
  one
  such
  strategy
  used
  by
  companies
  to
 
perform
  well.
  Incentive
  pay
  is
  pay
  based
  on
  specific
  performance
  of
  an
  employee,
 
which
  may
  take
  the
  form
  of
  gift
  vouchers,
  stock
  option,
  bonus,
  profit
  sharing,
 
commission
  etc.
  It
  is
  generally
  used
  in
  companies
  where
  the
  performance
  is
 
measurable.
 It
 is
 compensation
 that
 rewards
 results
 rather
 than
 time
 spent
 on
 a
 job.
 
It
 is
 a
 method
 adopted
 by
 employers
 to
 motivate
 employees
 to
 perform
 better
 and
 
continue
 delivering
 good
 results,
 which
 directly
 leads
 to
 the
 success
 of
 the
 company.
 
I
 believe
 that
 structured
 monetary
 incentives
 are
 truly
 effort
 inducing.
 

 
Incentive
  pay
  motivates
  employees
  and
  maintains
  high
  work
  performance.
 
 
Employees
  find
  it
  hard
  to
  keep
  themselves
  motivated
  at
  work.
  Implementing
  a
  good
 
incentive
  pay
  program
  helps
  to
  keep
  the
  employees
  engaged
  and
  motivated
  to
  do
 
well
  by
  rewarding
  them
  for
  all
  the
  good
  work
  they
  do.
  For
  instance,
  in
  the
  Lincoln
 
Electric
  case
  employees
  were
  paid
  based
  on
  piecework.
  This
  would
  induce
  the
 
employee
  to
  produce
  as
  many
  pieces
  as
  possible
  in
  order
  to
  receive
  a
  high
 

compensation.
  The
  effort
  would
  result
  in
  higher
  productivity
  for
  the
  firm
  and
 
thereby
 higher
 profits.
 As
 the
 employees
 would
 get
 a
 part
 of
 the
 bonus
 they
 would
 
strive
 to
 produce
 output
 that
 was
 dependable,
 of
 good
 quality,
 and
 give
 their
 ideas
 
and
  cooperate
  in
  order
  to
  get
  a
  high
  merit
  rating
  on
  which
  the
  bonus
  sharing
  was
 
dependent.
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • EMPLOYEE MOTIVATION Essay
  • Motivation and Employee Incentive Programmers Essay
  • Employee Motivation Essay
  • Employee Motivation Essay
  • Essay about Employee Motivation
  • Employee Motivation Essay
  • Employee Motivation Essay
  • Essay on Employee Motivation

Become a StudyMode Member

Sign Up - It's Free