Posts: 247
Threads: 124
Joined: Nov 2011
What is meant by Monetary incentives?
Posts: 247
Threads: 124
Joined: Nov 2011
The underlying idea of monetary incentives is that the money is the most important motivating factor. Monetary incentives mean to give more money to workers to incite to more work. One who works more he is paid. Cash or anything in the form of wealth is known as monetary incentives. Monetary incentives can include wages, salary, commission, bonus, prize or return on investment etc.
Monetary incentives may be positive or negative. Monetary incentives are provided to increase production or to do a work in lesser time. For example bonus, prizes etc. Sometimes a worker may be abstained from doing an act and offered cash incentive for not doing the act. They are negative incentives such as prize for less absence, reimbursement of holidays, minimising wastage of time, labour, material and machines.
The importance of monetary incentives cannot be doubted. They are considered to be more important than non-financial incentives. Cash provides a sense of security in workers. By monetary incentives workers can satisfy their fundamental requirements of food, clothing and shelter, according to their will.
