Types of incentives

Contents

• 1 The concept of incentives
• 2 types of incentives
  • 2.1 Incentives in terms of their purpose
  • 2.2 Incentives by Nature or (Their Value)
    • 2.2.1 Material Incentives
    • 2.2.2 moral incentives
  • 2.3 Incentives in terms of related parties or (beneficiaries)
    • 2.3.1 Individual Incentives
    • 2.3.2 Group incentives
  • 2.4 Incentives in terms of their impact or (in terms of their effectiveness)
    • 2.4.1 Positive incentives
    • 2.4.2 negative incentives

The concept of incentives

• Incentives are defined as a set of factors that stimulate the motor forces in a person, and affect their behavior and behavior.
• Incentives are seen as including all methods used to motivate workers to work productively.
• Incentives are defined as: all the means and factors that urge employees and workers to perform their duties diligently and sincerely, and encourage workers to make the greatest effort over and above in production.

Types of incentives

Incentives in terms of their goal

In terms of its objectives, incentives are divided into two parts:

• Good performance, where incentives are given here in exchange for normal or good performance, which was required by classic theories in management, where the individual was expected to increase the normal or good performance, and if performance levels decreased over time to reach the minimum performance, which is preserved for the individual His job is to receive his salary and get the incentives prescribed. That is, the worker may continue in his job as a result of his performance of the minimum that guarantees that he will not be dismissed from his work. Likewise in bureaucratic organizations, the incentives for good performance such as promotion, appreciation and bonuses. And others are often decided based on the extent of the individual's commitment to the planned performance, and it is not expected from him to increase, develop or renew it.
• Excellent performance; where incentives are provided here to the person with excellent performance, which includes a degree of innovation and renewal, and this is what modern trends in management seek, such as: the management approach with goals, for example, it includes incentives provided by management in exchange for excellent innovative performance through which the worker adds something new Such as arriving at a new method of performance that saves some time or effort, or simplifies the procedures, shortens the work steps, or manages to achieve cost savings, or provides the administration with useful suggestions, and the aspects of creativity differ, of course, from one organization to another, and from one job to another, and from m Here, the administration determines the areas of creativity, distinction and innovation in light of its own field and its surrounding environment for which it provides special incentives.

Incentives by nature or (their value)

Below is a brief breakdown of these types of incentives:

Financial incentives

The forms of these incentives are many and their forms differ from one sector to another. These incentives are represented in material rewards, and the material monetary incentive is considered one of the most important methods of incentives at this time, because money satisfies almost all of the human needs, which is a reality with a tangible effect, unlike other means.
In addition, material incentives are commensurate with the concept of people in the current conditions of work, since through money you can satisfy the necessities of life from food and housing, just as money is necessary for health and education, in addition to its ability to provide the luxuries of life and social status. It all depends largely on money. The money is the wage that the individual receives for what he does from work, and this wage is distributed to the worker or employee in various ways, and it differs from one organization to another according to the nature of the work and the wage system used within each organization, and we find that each of these methods has a profound impact on Motivate and motivate the worker to increase performance and keep working. Among these methods are endless, for example:

• Daily wage: But this incentive has a disadvantage that it does not give the opportunity to employees or workers to make a higher effort, because they feel and realize that they are equal in terms of outcome and remuneration with other incompetent employees, but despite this, incentives for daily or hourly or hourly wages give The opportunity for a worker or employee to bring his production to a high level regardless of time, and there is no reason to accelerate the completion of his work until his wages increase.

• Monthly wage: This is the wage that the employee or worker receives at the end of each month for his work during the month, according to what was agreed upon in the work contract. And if the previous types represented the most common types of material wages, we find that there are other types of incentives and rewards that are represented in different forms , for example:

1. Bonuses payable at the beginning of each year: is the annual increase of workers or employees, and is determined through the Labor Law, which is usually applied to all workers in the state or the private sector, and has a maximum and minimum limit.

2. Rewarding the quality of work: It is a rank in the degree that grants recognition for high-quality performance, and it exceeds the planned performance of the job in terms of the quality and quantity of work and technical knowledge. This bonus is granted in addition to the annual increase, and the employee must spend within the institution (12) months since the beginning of his work, which is the period required for the entitlement to this bonus in addition to excellence in work.
3. The employee's reward: It is a cash amount, a prize in kind, or both granted to one employee of the establishment in each year for his distinction and creativity in the work, and for his outstanding contributions, provided that it meets the criteria for eligibility for rewards of career discipline.
4. Discipline reward at work: It is a cash amount granted to a group of employees per year at the rate of one share for each sector, and its conditions include early attendance to work and no delay, presence in the workplace, non-departure during working hours, and absence from work except in annual leave.
5. End-of-service gratuity: It is an estimated or in-kind reward granted to an employee subject to the retirement age law upon the end of his service due to his reaching the retirement age, or for health reasons, or death. The percentage of this bonus varies from one institution to another.

Moral incentives

Moral incentives are considered one of the pillars of the utmost importance in the incentives set by the institution, without which the image of incentives that encourage work and increase performance within the institution cannot be completed, because a person is social by nature and nature, and he cannot live away from the respect and appreciation of others to him .
The employee also has many non-material demands, and these demands differ from one person to another, but these demands or needs can be limited to the need for security and belonging, social standing, and good relations with his superiors, and his colleagues also in their need for respect, whether this respect for himself or the respect of others To him, so that he has a sense of confidence, ability and competence, and, in contrast, the lack of these needs may generate feelings of weakness, powerlessness and frustration.
Moral incentives that go beyond material aspects are also important in motivating employees. Examples of moral incentives are :

• Involving workers in setting goals and increasing their role and interaction with the organizations in which they work, officials must understand the importance of the feeling of workers and look at ways in which they can satisfy the desires of workers that contribute if achieved in increasing the motivation of workers, and the management method with goals is seen as a primary incentive In this direction, this method contains three steps:

1. Setting goals at all levels and with the participation of workers and the administrative level in which they work in setting these goals.
2. Set dates to accomplish the goals set, so that these dates, which were originally agreed upon with the participation of all and within the known data, are respected.
3. Follow-up and feedback on the level of performance achieved and act on that basis.

• Acknowledging the effort of workers: Many workers give importance to recognizing their efforts, and this is considered an important incentive to make additional efforts in the work. Examples of possible applications of this motivational method include giving different moral rewards to workers such as: naming the ideal employee or providing other moral symbols, such as celebrations. Or, giving paid recreational leave, or giving letters of thanks , medals or any other forms that differ from one organization to another, and from one country to another, and the method of encouraging employees to submit proposals to develop the work, and reward the owners of the suggestions that are applied, And involve Representatives of workers with management in decision-making, and all these methods are directed towards increasing the loyalty of workers to make the utmost efforts by them, kindly to the fact that their participation is a moral incentive without the slightest effort of the top management.

Many studies and experiences taken by officials in the various work and production sites have demonstrated that there are incentives other than material incentives, which have a significant impact on employee motivation or increase his association with work, which are represented in moral incentives, such as praise, encouragement, and putting the names of glory in the plates of honor And certificates of appreciation.

Moral incentives have many images, part of which we mentioned in the previous introduction, and we will show through the following points pictures of these incentives, but within the institutional framework:

1. The term of service reward: It is a reward granted to employees with long services, who are credited with developing the work of the institution, or who represent the ability, activity and seriousness of others, and this reward constitutes a certificate for ten years of service, a certificate and a medal for twenty years of service, and a certificate and medal greater for thirty years of service, It is granted at a formal ceremony.
2. Appreciation letters and compliments: A letter of appreciation is defined as: a written appreciation for the recognition of a particular work or service worthy of appreciation, as well as a letter of appreciation in writing for a work that exceeds the normal requirements of official duties.
3. Praise and reprimand: It is to give praise and praise to individuals when they perform the right and proper deeds, and to blame and reprimand the people when they perform the wrong duties or wrong actions.
4. Social Facilitation: Competition exists when individuals work individually, or in groups, and there must be an atmosphere for competition within the institution but in a legitimate manner and is called positive competition.
5. Motives for psychological work: It is the employee’s feeling of reassurance about his health, work, future and children, away from fear and surrounded by various forms of social insurance against work accidents, occupational diseases, aging, unemployment and death, and this has a great role; this reflects positively on the worker's performance, because a sense of safety is a condition It is necessary from the conditions of sound mental health, and if the security of the individual is the basis of his psychological balance, then the security of the group is the basis of social reform, and research has indicated the relationship of material and moral incentives to the mental health of the worker, and the increase of his production which is a relationship that has positive images.
6. Social motivations for work: for the individual to be appreciated and respected by others, and to have a social status and immune to society's rejection, i.e. the individual has a feeling that he has social importance, and that his presence and efforts have value and influence on others; because social appreciation promotes a sense of security, And increases the desire for teamwork.
7. Work and the need for appreciation: It is called the needs of achievement, because it includes forming relationships with others, and it includes: love, contentment, acceptance, health, companionship, and social standing.
8. Work and the need to achieve self: It is intended that the person directs all his potentials and energies, and seeks to exploit them within the work, in order to reach them for his aspirations and desired goals, i.e. put them into practice, and this need is the one that pushes the individual to express himself, prove his personality, and perform beneficial actions Of value to others by doing his assigned work.
9. Motives for achievement: It is represented by the feeling of the worker that he has the desire to assert himself in his work through the improvements, innovations, and inventions it provides to work; that is, his feeling and his feeling that his work is in accordance with the desired goals of his homeland which the institution seeks to achieve.
10. Motives for stability: That is, the need for industrial workers to feel stable in work, and that there is fairness in treatment and no distinction in terms of promotion, or entitlement to a premium, as well as stability in terms of the future and what happens to them in the event of a work injury, or in the event of any disease.

Incentives in terms of related parties or (beneficiaries)

Individual incentives

These are incentives that focus on creating the spirit of individual competition, and that are granted to a specific individual to double performance, or as a reward for his distinct production, and this creates an atmosphere of competition between individuals.

Individual incentives are what an individual receives alone as a result of completing a specific work, and examples include: promotions, rewards, and incentive bonuses.

Individual incentives may be positive or negative, material or moral, so the worker takes a promotional reward for his excellent work, and gets the appreciation of his boss in the form of praise or a letter of thanks, or participation in decision-making, or solving a specific problem, and individual incentives exist to satisfy a group of needs when Individuals, whether psychological, social or material.

Group incentives

These incentives focus on teamwork, collaboration among workers, examples of which are in-kind benefits, health care, and social care, which may be directed to a group of individuals working in one administrative unit, one department, or one department to motivate them to improve and raise the efficiency of performance and productivity, and may Collective incentives are positive or negative, material or moral.
Collective incentives aim to satisfy the psychological, social and financial needs of members of the same group, such as the needs of belonging and loyalty and appreciation of others, and collective incentives contribute to increasing cooperation between individuals, strengthening ties, and provoking competition between them, and increasing their desire to achieve the public interest and common goals, and collective incentives need to Care when applying them is to define the criteria by which incentives are distributed to individuals based on them, the more just these standards are, the more members will work to obtain available incentives, but if they feel that they are not fair or tainted with favoritism, Or personal preference, they feel injustice and that their efforts are lost in the community, so their need for respect, appreciation and self-identification remains incomplete or frustrated, which leads to their frustration and their departure from contributing to the collective effort.

Incentives in terms of their impact or (in terms of their effectiveness)

Positive incentives

It carries various advantages for the individual if he does the required work, and offers him a tangible or intangible tender, and it depends on willingness, hope and optimism. These incentives include all material and moral temptations when increasing production or improving its level, and it is considered one of the best methods for moving individuals working in most cases, because it creates a healthy climate suitable in the surrounding work conditions, and for its diversity to include the largest segment of workers.

Positive incentives develop the spirit of creativity and innovation in the workplace for workers, because they are compatible with the wishes of the worker so that they leave some positive results on the course of work such as the incentive cash reward that is given to the worker in exchange for doing a work that requires appreciation.

The main goal of this type of incentive is to encourage working individuals, and to encourage them to produce the desired behavior, the best example of this type of incentives is: fair wages fairness, granting the employees exceptional allowances, stable work and individual stability in his work; positive incentives have a tangible effect in strengthening The link between incentive and performance, and the use of incentive when the worker achieves a distinct and good achievement that necessarily leads to continuing to achieve more achievement in performance, and these incentives are effective and influential when used immediately after the worker does the required behavior, for example , the bonus is not led There is a positive impact on behavior unless two conditions are met:

1. The incentives must be conditional and dependent on the rate of the quantitative performance and its qualitative level, the higher and good the production, the greater the incentive accordingly.
2. If the incentives lead to satisfying certain needs, the worker feels the necessity to satisfy them. If the incentive cannot satisfy the needs and desires of the workers, he loses his motivational ability and its benefit is almost non-existent.

Negative incentives

It aims to influence the behavior of workers through the method of punishment, intimidation, and discipline represented in material penalties, such as deduction from wages, or denial of premium and promotion.

The negative incentive includes a kind of punishment, and this punishment makes the person afraid of repeating the mistake in order to avoid the punishment as an incentive not to fall into error and violation, and in practical terms, the negative incentive does not motivate the worker to work but rather warns him, does not pay for cooperation and does not teach performance, but rather teaches how he should To avoid punishment, and how the worker avoids situations that are imposed in punishment without abstaining from work; for example, fear of dismissal is a psychological and non-passive method of control and control, and does not lead to the maximum energies of the individual who usually performs work in a degree that does not expose him to dismissal.

The negative incentives are mainly intimidation, the threat of punishment, or other factors of a mandatory or positive character that attempt to compel individuals to behave in a certain way, otherwise they will be subject to punishment, and the most prominent form of this punishment: the threat of dismissal, or salary reduction, Deprivation of leave, or transportation to a remote and unwanted place.

Many managers believe that punishment or threat is an effective tool for achieving obedience and loyalty by employees, and this may be more beneficial than other means, and a strong incentive to straighten an individual's behavior, but punishment or threat may be a reason for an individual's fear to a degree that cannot respond positively to instructions The proposals grow and have inappropriate attitudes on action.

It is taken with intimidation and punishment that negative incentives include in order to force individuals to refrain from unwanted behavior, and not with the aim of motivating a particular work, and it may contribute to raising production efficiency, but it may leave negative effects on the hearts of workers, which creates a feeling of frustration towards work; Subordinates should take into account the size of the punishment, and that the punishment be commensurate with the behavior that caused it.

Negative incentives strike a balance in the process of motivation . It reminds workers that, just as they reward excellent performance, they are punished for poor performance, so the administration maintains its fear and guarantees the seriousness of workers. Avoidance of punishment may also lead to the acquisition of proper methods for job behavior and performance, but some negative effects may occur, especially if management does not improve the use of negative incentives, or if superiors oversaw their use, therefore good management is the priority that gives positive incentives and the expansion of their areas of use. It clearly defines the behavior necessary to obtain it, and presents it to workers in a timely manner, that is, when they do this required behavior.
There are several harmful effects of intimidation and punishment, including:

• Imposing punishment on workers without explaining its reasons may create fear for them, which places the specter of punishment always in front of them.
• Punishment may lead to a lack of cooperation between workers and may make them afraid of making mistakes.
• Inflicting punishment on an individual always makes him hesitant, and he feels fearful and does not bear any responsibility in the work for fear of making a mistake.
• The foundations for granting incentives: The granting of incentives must be based on a set of foundations in order to achieve the desired goals, and not be a cause for adverse results for employees in particular, and for the organization and its performance in general, and these principles can be summarized in the following :

• Adopting incentive to behavior: This means that the incentive comes after the impact of a specific behavior, and this requires that organizations have incentive policies and rules that clarify when and how the employee can obtain the incentive, whether the incentive is positive, or negative, and that employees are aware of these policies.
• Timing: This means that the motivation will come immediately after the behavior, because the longer the period between the behavior and the motivation, the relationship between them becomes a mysterious and contradictory relationship.
• The size of the incentive: This relates to the small or large of the incentive, and the small and old are relative terms, but they are intended (that the penalty be of the same type of work), i.e. on the amount of work and the incentive can become without interest if the employee does not know through the organization's incentive policy and rules what he must do To obtain the incentive of a certain type and how.
• The type of incentive: incentives have many types, including material, moral, positive, negative, internal and external incentives, and what is important here is that supervisors learn about the incentives that most affect the employee who wants to motivate him.
• Stability: It is equality in applying the incentive. If an employee does a new job and gets a reward as a result of that work, then it is natural for any employee to get the same reward if he does the same job as the previous employee (justice is the basis of judgment)

Summary
Incentives are considered to be a variety of factors that aim to stimulate the strength and motor conflict of an individual; where the incentive is one of the main elements important to influence the behavior and behavior of the individual, and business owners usually view the incentive as the tool and method that is used to obtain Fruitful and distinguished work of the workers. The incentives also have goals, including good performance, which is that the individual performs his actions to the fullest extent, due to his feeling of enthusiasm and often after an incentive presented to him. Also, the goals of the incentives are: