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Saturday, March 9, 2013

Merits And Demerits Of Organizational Incentives

Merits Of Organizational Incentives

1. Organizational incentive enhances organizational effectiveness.

2. Organizational incentive helps to enhance team work.

3. Organizational incentive encourages employee participation at work.

4. Organizational incentive adds a new dimension in organizational productivity and job satisfaction.

5. Organizational incentive ensures employee relations among the employees as well as between the employees and management.

Demerits Of Organizational Incentives

1. Since the incentive depends on organizational performance, employees may not be motivated at individual level.

2. It will be complex to determine the amount of incentive among different levels of employees

3 .Organizational incentive plan does not provide instant incentive to employees.

4. Organizational incentive does not depend on individual performance.