Question

I am writing a 2 page essay on an Microeconomics problem. I picked, Positive and Negative incentives. I am hoping to get some ideas/examples of what to put in this essay. I need outcomes, solutions/recommendations and conclusion. thank you!

Answer 1

incentives means taking some measures/steps to encourage employees. it can be positive and negative.

1. POSITIVE INCENTIVES: positive incentives are the measures taken by the management to encourage their employees to do work in certain way. it always motivates them. for example: company providing health insurance, bonus on festivals, promotions and salary hike etc. these kinds are of positive incentives.

considering employee working in sales department then the management can encourage sales persons by stipulating hikes on salary and bonus on the basis of their performance monthly. in this way employees will work hard to get extra benefits and also satisfy in their company. but positive incentives not always work so in that case management also use negative incentives.

2. NEGATIVE INCENTIVES: negatives incentives such as fear of loss of job, salary cut off, etc. these kinds of incentives motivates negatively. the advantage of negative incentives is that it encourage more because of having fear of loosing job.negative incentives are better for non- performance employees.

a person from sales department is under performing from past 3 months so management can use negative incentive to motivate him and encourage to cover his targets.

at last, their should be a balance between both incentives as

1. either one alone will not apply for whole employees in the company. using only positive incentives will not encourage under performance employees always and using only negative incentives will discourage the moral of all employees.

2. it depends to person to person and company's management to make balance according to requirements.