Monetary And Non-Monetary Incentives Case Study

A Study of Employees’ Attitude towards Monetary & Non-Monetary Incentives in Banking Sector

Abstract:

In order to improve individual or group performances and to accomplish organization goals and objectives, employee attitude play a major role. The employees could be influenced through several incentives; either monetary or non-monetary. These two forms of incentives for improving employees’ performance are being practiced. There are less studies have been done to find out the weakness and the strengths of incentives used in motivating employees’ attitude as a basis for future improvement and also to unravel the effectiveness of the use of incentives in motivating employees. The present study examined the attitude of employees towards

It also reveals the problems, frustrations, anxieties that employees pass through at their work place where certain incentives are de-emphasized. It will equally assist management to engage in staff welfare development that will improve productivity. Job performance of employees is determined by the ability of individual employee to perform well on his job as well as the level of motivation offered by the work environment and it is of fundamentally significant in productivity.

Monetary Incentives refers to remuneration in money term which employee received for performing his/her official duties. Non-Monetary Incentives are incentives that employees gained in work place, in form of promotion, training etc which is not in money term. These are the available jobs in organization at a particular point in term, in which employees are employed for. The motivation may be in monetary or non-monetary terms, Non- monetary awards tend to come with the promise of an opportunity. Opportunities can include time off from work, flexible work schedules or even positive changes in the work

These are usually offered in the form of some type of bonus. Thus the purpose of a non-monetary incentive is to reward the employee after the fact of doing a good job. This may not always be the case for every type of non-monetary incentive, but these rewards are not generally something the employee works toward. Both monetary and non-monetary incentives can be effective in the workplace, but up to varying degrees. The Financial Methods used in form of incentives are Piece rates, salary, bonuses, profit sharing, time rates, commission, share ownership, performance related pay. Non financial Methods such as Job enlargement, job enrichment, team working, fringe benefits, Job-rotation are being given. In banking sector various types of incentives programs exists for boosting up employee psychologically. The question “Do the money /monetary rewards motivate employees?” has been asked for decades and there are numerous motivation theories that try to explain the extent to which money motivates employees. The overall success of an organization in achieving its strategic objectives relies entirely on the performance level of employees. Organizational incentives can affect attitudes, behaviors, and motivation. Therefore, it is important for managers to understand and appreciate clearly their importance at work place. According to Williams (2001) that conditions necessary for