ASSESSING THE RELIABILITY OF LABOUR INCENTIVE SCHEMES – AN EMPERICAL STUDY

There are four primary factors of production for an organisation’s economic growth and development. They are LAND, LABOUR, CAPITAL and ENTREPRENEURSHIP. Among the four, LABOUR resource contributes to a substantial level towards the organisational growth and development. This resource is a vital input for business organisations in achieving productivity. The significant recognition of this labour resource makes it imperative for the business entrepreneurs to be accountable for its efficient utilisation. Further, Human Behaviour theory emphasises that an organisation’s labour resource contributes indirectly to its growth and productivity. Incentives are one technique by which employers carry out their end of the employment contract—i.e., compensating employees for their efforts. In its most generic form the incentive payment compensation tries to recognize some specific accomplishment on the employee's part. In general, incentive payments inspire the desired performance. The incentive itself is usually something tangible; most frequently, money.  Programs dealing exclusively in intangible rewards or recognition are a legitimate subset of incentives. Generally, employers pay incentives in cash and sometimes in the form of gifts and vouchers, where the employees use them to buy discounted merchandise or service. Incentive is a one-time payment or recognition linked to specific achievements, Even though there are many forms of compensation paid to employees for performing their jobs, incentives tend to be result-oriented. An incentive scheme is a motivational plan or program to induce industry or a group towards an efficient and effective performance Thus, a properly planned incentive scheme assures organisations a high level of productivity because incentives induce employees to provide an efficient performance.