RE: Incentives

["vina vani" <vv@fac.irm.ernet.in>]

Yes I agree with many of those who consider that incentives do not 
improve the  performance of the organisation. In most of the cases, 
incentives such as awards are extrinc by nature. So it works for some 
time and then dies on its own.

If objective is to improve the performance of the organisation, I 
think people should be intrisically as well as extrinsically 
motivated. One of the type alone would not work on continuos bases. 
There should be both the schems which motivates the employee and 
improves the sense of belonging to the their work place.

Let me elaborate on this. In India there were many organisations( 
textile industries, I know) who used to provide security to 
the employees in their personal crisis though there were no awards. 
This was done by setting up separate trust and from this trust, 
scholarships to their children, financial help in very serious health 
problems in the family or loans for housing and other purposes were 
provided. In few incidents even toplevel managers would visit and 
help them. All this would be apart from the  routine welfare of the 
employees. This would certianly make them feel that they will be 
taken care of if they work for the organisation. I think this 
improves the intrinsic motivation and lasts for longer time.

Extrinsic motivations could be awards and recognition of the work 
done by people in annual meetings. Which creats competitative 
environment. But this alone would not last for long.  

To perform better continuosly for the organisation, employees should 
be both intrinsically and extrinsically motivated. 

Being Indian, let me cite an example of Gandhiji, who was motivated 
by external forces to fight British Empire but he could fight for 
independence of India for a long time because he was intrinsically 
motivated.

Vina Vani
vv@irm.ernet.in
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