Directorate of distance education master of business administration

Incentive Schemes
 
The term ‘Incentive’ means inducements offered in order to get 
better outputs from people. Incentive schemes are used to enhance the 
motivation level by tapping the ambitions of the employees to earn 
more. Incentives tend to influence individuals to stretch their capacities 
and personal objectives and carry out special tasks and take initiative. 
Incentives become necessary because people with less ability to perform 
a specific task but stronger will or motivation are able to perform better 
than people with superior ability and lack of will.  Group incentives have 
the potential to harness individual efforts towards greater teamwork and 
synergy.