A Study on Employee Performance Based on Incentives

ABSTRACT: Employee performance is an important driver of organizational success. The managers seek effective strategies to consistently inspire and increase productivity. Incentives, both monetary and non-monetary, widely desired employee are used as a tool to encourage behaviour and results. This research paper reviews existing literature on the impact of encouragement on employee performance. It examines theoretical grounds of incentive plans, examines various types of encouragement and their effects, analyses arbitration and moderating factors affecting the encouragement relationship, and identifies areas for future research. The conclusion of paper is that while encouragement usually has a positive impact on the performance of the employee, their effectiveness is careful design, alignment with organizational goals and considering individual and relevant factors. Keywords: Employee Performance, Incentives, Motivation, Reward Systems, Performance Management, Pay-for-Performance, Non-Monetary Incentives.