Incentives– Incentives are defined as monetary benefits paid to workmen in recognition of outstanding performance. The ILO defines incentives as “payment by result”. Incentives are paid in addition to wages and salaries. It depends upon productivity, sales, profit or cost reduction effort. There are –
- Individual incentives scheme- individual incentives are applicable to specific employee performance.
- Group incentives programmers- Where a given task group effort for completion incentives are paid to the group as a whole. The amount is later divided among group members on as equitable basis.
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