ADMS 1010 Lecture Notes - Lecture 9: Job Satisfaction, Frederick Herzberg, Harvard Business Review

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An incentive is something that incites or tends to incite to action or greater effort, as a reward offered for increased productivity. 1. In other words, it is something that motivates someone to perform certain actions. Shortly afterwards, people started to realise that the kita method had a more negative impact compared to its positive outcomes. In most cases, employees tend to always complain about their work blaming the relationship they have with their supervisors, the working conditions and the salary. On the contrary, when incentives are involved, these employees are more likely to look on the bright side of the situation by using the incentives for motivation and forget about their complaints. The four main categories of incentives are appreciation, compensation, recognition and rewards. Appreciation incentives include company paid activities, lunches, parties and events. Recognition incentives include praising employees by presenting them with a certificate for their achievements. And reward incentives include gift certificates and other monetary rewards.

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