Incentives In Public Sector

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The concept of incentives in public sector Incentives have been defined and used in different areas. In the context of the public sector, incentives are defined as “An available means apply with intention to influence the willingness of public sector employees to exert and maintain an effort toward attaining organizational goals” (Mathauer & Imhoff, 2006). This definition clearly stated that the efforts put by the employees to get reward or appreciation toward what they do. Some argue that incentives are the most important motivators (Epley & Gilovich, 2005; Shanks, Tunney & McCarthy, 2002; Stone & Ziebart, 1995). But there are also some criticisms said that some types of incentives not actually motivating the employees especially in public…show more content…
Incentives will also encourage employees to make an extra effort to achieve their goal. Incentives are most likely related to some motivation theories and approaches such as Maslow’s hierarchy of needs and other related theories. For example, Maslow’s theory clearly described about the different stages in employees life, what they needs and the way the employees can be motivated with different ways and approaches. Meanwhile, Perry, Mesh and Paarlberg (2006) make an arguments that the performance paradigm in the public sector using its four basic elements: employee incentives, job design, employee participation and goal setting. The incentives not only focusing on monetary and non-monetary reward, but also related to job design, the participation of the employees and achievement of target…show more content…
Incentives are tangible or intangible rewards used to motivate a person or group of people to behave in a certain way (Collins, Tinkew & Burkhauser, 2008). A similar definition is given by Zurn, Dolea and Stilwell (2005, p.5), incentive is “an explicit or implicit financial or non-financial reward for performing a particular act”. The financial reward more commonly known as monetary incentives and non-monetary incentives is refer to non-financial reward. Various forms of incentives have to be effectively developed and used by organizations to attract and motivate employees in achieving organizational goals (Pouliakas, 2010). Extrinsic rewards are only one element that impacts on work motivation. Most of the public employees in the public sector commented that both financial and non-financial incentives are significantly important to encourage and motivate them for greater work performance. It also indicated that there was an absence of employee incentive particularly financial incentive. The financial incentive give more effects to the employees in public sector compare to non-financial incentive. Meanwhile, the level of utilization of non-financial incentives is extremely poor and the ways the administration of public sector implement is not with perfect framework. Some research also indicated that financial incentives are the most commonly required

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