CHAPTER II - REVIEW OF RELATED LITERATURE

2.1. Motivation Defined

Motivation, generally, was derived from the Latin word movere, which means to move.

However, this definition is not sufficient for purposes of discussion in this study. Different

articles and researches about motivation in relation to employment mean more than to move.

The term has been used in the early years and given definition by different personalities.

According to Atkinson (1964), motivation is the contemporary influence on the direction, vigor

and persistence of action. Vroom (1964), on the other hand, defines it as a process governing

choice made by persons or lower organisms among alternative forms of voluntary activity. It

was also said that motivation is related to a set of dependent and independent variable

relationships providing explanations as to the direction, amplitude and persistence of an

individuals behavior, holding constant the effects of aptitude, skill and understanding of the

task and the constraints operating in the environment (Campbell & Pritchard, 1976).

Three common denominators appear in the definitions mentioned. Talking about

motivation has primary concerns with: first, what energizes human behavior. Second is what

directs or channels such behavior and third, how behavior is sustained or maintained. This

signifies a significant factor to understand human behavior at work. The concept of motivation

has received vital attention over the course of this century and this has become increasingly

prominent in the efforts of people in the organization and practicing companies to understand

and influence organizational behavior.

 Nilay Yavuzs, in her thesis entitled The Use of Non-monetary Incentives as a

Motivational Tool: A Survey Study in a Public Organization in Kenya, the term motivation was

further elucidated. The strength of the research is that it focuses not only on one meaning to

give a better relation of the word to the purpose of the study. This same research does the

same. It was stated that employee motivation is a focus of attention since it may be a way to

control the gap between the actual desired state of commitment of an employee to the

organization. Because of this, the challenge for the organization is to find out the values and

goals of its employees and where they go beyond in the organization (Yavuz, 2004). The said

study aimed to demonstrate the extent of non-monetary incentives in utilizing the public sector

of Turkey and whether they can motivate the employees enough as much as monetary

incentives do.

Motivation was also studied in a research done by Patrick Lumumba in relation to non-

monetary incentives. It was entitled An Assessment of the Effectiveness of Non-Monetary

Incentives in Motivating Sacco Society Staff: A Case Study of Front Office Savings Accounts

Workers in Nairobi County. The research includes the same scope of this present study that

determines how non-monetary compensation is viewed by employees. However, the related

literature also tackles about the performance of the employees to result in the success of the

organization. The study found that the non-monetary incentives such as job promotion and

career development had the most effect while teamwork had the least (Lumumba, 2012).
2.2. Kinds of Motivation

Intrinsic motivation refers to practice that is directed by internal rewards. In other

words, the motivation to act in a certain way arises from within the individual because it is

innately pleasing. This is different from extrinsic motivation which includes engaging in a

behavior because of getting external rewards or averting penalty (Cherry, 2016). When one

pursues a thing solely because of enjoyment, that is doing so because of intrinsic motivation.

This is the kind of motivation that engages in an act or behavior arising from within and not for

external rewards such as prizes or money. This, however, does not necessarily mean that being

intrinsically motivated is devoid of its own rewards. These rewards associate developing positive

emotions within the individual. These feelings take place when individual is given a sense of

value, a sense of breakthrough or competence.

Another definition is that intrinsic motivation happens when we do things without any

obvious external rewards. We simply enjoy an activity or see it as an opportunity to explore,

learn, and actualize our potentials (Coon & Mitterer, 2010). It also refers to the reason we carry

out certain exercises for deep-seated fulfillment. It may be said that it is performing an activity

in and of itself (Brown, 2007). Experts propose that people who are intrinsically motivated are

more creative. In the workplace, productivity can be increased by using extrinsic rewards such

as monetary compensation, but the truly existing quality of the work done is activated by

intrinsic factors (Griggs, 2010).

Extrinsic motivation, too, can be advantageous in some instances. This is because extrinsic

rewards can be applied to motivate people to obtain new skills or knowledge. In the process,
when these new skills have been mastered, people may then become intrinsically motivated to

continue the activity. Extrinsic motivation is also beneficial when external rewards become a

source of feedback. This permits a person to know that his performance has achieved a quality

that deserves recognition (Cherry, 2016).

2.3. Motivational Incentives

In every business, the motivation of employees is a must. Because without this, there

will be no progress. With this, the management critically finds ways of how to motivate said

employees. In order for them to function, they must be given something in return. This may be

in the form of monetary and non-monetary incentives. Monetary rewards are enough to get the

most out of employees in some businesses. However, other types of compensation may be

more effective in some. By definition, the two kinds of compensation are easy to distinguish but

their impacts on an employees performance can be more difficult to measure (Lewis, 2001).

A study that discusses the concept of both monetary and non-monetary rewards is The

Impact of Monetary and Non-Monetary Rewards on Motivation among Lower Level Employees

in Selected Retail Shops by Martha Harunavamwe and Herbert Kanengoni (2013). Motivation

management is important to improve competitiveness, profit and sales that is why many retail

industries in South Africa are engaging in a strategic approach (Bateman and Snell, 2007). In

Maslows Hierarchy of needs, money is really important in a sense that it can satisfy various

needs like food which is a physiological need. This is why management depends upon rewards

like monetary compensation as a significant factor of motivation (Wallace & Zeffane, 2001).

Money is also important in McClellands Acquired-Needs Theory because it indicates feedback

of performance for high need achievers. In contrast, non-monetary compensation gets the

better of persons who wants to satisfy their need for affiliation by recognizing them verbally and

by challenging jobs to high achievers.

Monetary and non-monetary are two the groups of rewards. This was divided by

Armstrong (2007). The former includes but is not limited to base pay, merit pay, incentives,

commission and bonus like the Christmas bonus and 13 th month pay. On the other hand, non-

monetary rewards include recognition, promotion, flexible working hours and company

uniforms. In this research, training development is an addition to the examples of non-

monetary compensation given to the linemen of Meralco. Money as a motivator has been

downplayed by most behavioral scientists like Herzberg who discussed the significance of non-

monetary factors as motivators. But still, money is a great factor since it is the means by which

employees can buy or get a lot of the things they need (Robbins, 2003).

It is said that it cannot be denied that regular pay is needed to meet the basic

physiological and safety needs which are the first two levels of Maslows Hierarchy of Needs.

Hence, employees who are on a lower level easily get attracted to this. Likewise, money is

treated by employees as an indication of feedback to their services that makes it having a

positive impact in motivation (Langton & Robbins, 2007). However, rewards are not simply given

to employees without having planned it well because in order for these rewards to motivate,

the type of reward must have a value to the employee and it must be looked forward to as a

consequence of performance. The study done by Harunavamwe and Kanengoni (2013) focuses

mainly on whether or not monetary and non-monetary compensation has significant effects and

which reward best motivate the lower level of employees. It is to say that the basic objective of
the study is to compare. However, its weakness would probably be that all their listed objectives

are broad. To compare with this present study, the researches focus only on one kind of

compensation and list down the standard effects of such compensation.

Another literature studied both monetary and non-monetary compensation. Like the

other researches, both kinds of rewards were taken into consideration that differs it from the

present study. But it is similar in a manner as to measuring the motivation of employees derived

from it. Comparing the Impact of Monetary and Non-monetary Reward Programmes Towards

Employee and Organisational Motivation by Neelkamal Narsee (2012) mentions that to be

motivated by the organization or company, human capital is necessary. Another similarity with

this present research is that retention is also given emphasis. By the way employees are treated,

the organizational growth and survival are determined (Lawler, 2003). Financial rewards are

undeniably important factors to be given to employees in order that they perform exemplarily.

However, forms of recognition are not limited to money as part of an organizations reward

system (Luthans, 2002). Organizations sometimes forget that appreciation and recognition are

important elements of a reward system and these are actually inexpensive and factors of high

return to a reward program (Sarvadi, 2005). The study of Narsee, being focused on both

rewards, is also concerned about the preferences of employees. In other words, if they will be

asked to choose which from which, what would they prefer? Therefore, there must be an

understanding about the employees preference too (2012). In the present research, it is not

exactly that employees preferences are to be answered. Only if they are motivated enough

with what is given is of primary issue.

 Motivational policies and strategies are adopted by organizations to enhance

profitability and efficiency by increasing motivation and productivity, reducing tendency for

workers to be absent and unintended turnovers, and to retain talented and skilled employees.

Commonly, techniques such as incentives, rewards, and recognition are often used

interdependently to motivate the employed and patterned to the evolving needs of the

workers.

An incentive offered to meet a specific goal is intended for the employee to expend

further energy and effort into the work, hence, the incentive will be given to the employee as a

reward when the goal but it all originates from an incentive. Recognition, on the other hand, is

to exhibit appreciation for the effort and contributions the worker has exerted. Recognition

occurs after the positive behaviour, and may be offered in connection with the reward. (Lai,

2009)

On a broader picture, both incentives and recognition go hand-in-hand to induce positive

attitude and most importantly, to motivate the employees. The classification of incentives is

presented by the table xxx which has three categories: monetary, tangible non-monetary, and

intangible non-monetary incentives. (Pattanayak, 2005)

Developed by David McClelland, his model of intrinsic motivation states that what motivates

people to do a certain task falls into three simple categories:

Achievement: People who are motivated by achievement desire to do a certain act

to create something of value. They aspire to be valued for what they do.
 Affiliation: People motivated by affiliation have a desire for belongingness. They want

to be part of something greater than of themselves. They want to be valued for who

they are and the company they keep.

Power/Control: People motivated by power and control desire to have an impact on

their surroundings and the people around them. They have the desire to be valued

for how they change the world.

Monetary incentives includes but not limited to financial rewards handed to the

employed in terms of: bonuses, insurances, paid leave, etc., while tangible non-monetary

incentives refer to the indirect payment of money in the form of tangible rewards such as gift

cards, watches, garments, vacation trips and the likes. Intangible rewards, on the other hand,

makes reference to the use of social rewards and task-related rewards. Social-related rewards

speak of the organizations social practices such as employees being courteous and respectful to

one another, and supervisors acknowledging positive work of employees, while task-related

rewards refer to the workers career advancement, job design, skills training, and autonomy at

work.

Monetary Incentives Tangible Non-Monetary Intangible Non-Monetary

Incentives Incentives
Direct Compensation: Meal Treats: Social Rewards:

Base Salary Free food/beverage Informal recognition

Commission Festival bashes Verbal praise

Bonus Coffee breaks Formal recognition at

 Picnics office gatherings

Indirect Compensation: Birthday treats Feedback

Insurance Friendly greetings

Profit sharing plans Awards: Pat on the back

Retirement plans Plaques/trophies Solicitations of

Employee Stock Certificates suggestions

Ownership Plan Letters of appreciation Club privileges

(ESOP) Use of company

Educational Knick-knacks: facilities, equipment,

Reimbursement Decorative supplies for personal

Overtime Policy Tie pins projects

Paid leave Calendars

Unpaid leave Watch Task-Related Rewards:

Subsidized utilities Electronic devices More responsibility

Subsidized housing (cameras, mp3, phones, Meaningful work

Travel expenses etc.) Job rotation

Childcare Special assignments

Tokens: Training

Tickets to Representing the

movies/concerts Company at public for

Gift certificates a

Accessories/ garments Participation in

 bearing company logo decision making

Paid up vacation trips Growth opportunities

Anniversary/birthday Autonomy over work

presents Promotion

Flexible Hours
TABLE XXX: Classification of Incentives (Pattanayak, 2005)

Incentive programs adopted by organizations have the potential to improve performance

by as much as 44 percent if it is managed appropriately. It also increases the level of

engagement from the employed. Workers motivated by incentives are seen to have a

performance surge by 27 percent when asked to persevere towards a goal. Programs are also

associated with an organizations attraction for retention. Said programs also assists to boost

morale and build employee loyalty. (Condly et al., 2003)

Non-monetary incentive, being an important element of reward systems, has been

applied by many organizations in motivating their employees. Different researches have already

been conducted in order to attest on its impact. However, the findings in one research are not

always the same with the others.

Effects of Non-monetary Benefits on Employee Delight by Ahmed et al. (2011) found

that non-monetary benefits do not significantly affect the delight at the workplace of the

employees. The Employee Delight Model that it conducted contained eight non-monetary

variables. To mention, these were workstation ambience, appreciation and recognition,

recreational activities, career growth opportunities, improved workplace relationships,

advanced technology, flexible working hours and autonomy. These were all proved to be
unsuccessful since these did not bring satisfaction in the lives of the employees. However, the

researchs weakness is the fact that the respondents were very limited (Ahmed et al., 2011). It

could not have been known whether the respondents were sufficient samples for its population.

A research in Kenya done by Lumumba (2012) entitled An Assessment of the

Effectiveness of Non-monetary Incentives in Motivating SACCO Society Staff: A Case Study of

Front Office Savings Accounts Workers in Nairobi County, the findings were: promotion has a

large effect on the employee motivation at the Saccos as promotion results in the experience of

countless distinct emotional states and performance is a major factor considered for promotion.

It also showed that Saccos working condition affects the employee motive as there is certainty

of an individuals role in relation to the aim of the organization. This is more likely one of the

presumed conclusions of the present study.

Nilay Yavuz (2004) concluded in her research The Use of Non-monetary Incentives as a

Motivational Tool: A Survey Study in a Public Organization in Turkey that the non-monetary

incentives in the organization is lowly applied. Feedback is given about the employees

performance. However, the kind of feedback they receive is of a negative one. With this, the

organization does not necessarily benefit from non-monetary incentives as a motivational tool.

The survey results display that the employees contributions in the organization are not given

adequate recognition.

Another related literature, Impact of Reward and Recognition on Job Satisfaction and

Motivation: An Empirical Study from Pakistan found that there was a close relationship between

several aspects of work motivation and satisfaction but acknowledgement along with work itself
and operating procedures have shown low mean values and minimal relationship. In Pakistani

context, the employees do not expect so much of an appreciation from the boss on doing a

good job. These weaknesses can be worked out if the persons higher in rank motivate their

subordinates with proper recognition and appreciation even through small things like their

personal concerns. Likewise, when employees are allowed to participate in making decisions,

they will be more enthusiastic working in the organization (Danish & Usman, 2010).

In conclusion, incentives do have great benefits and a good potential to motivate

employees. Succeeding chapters would have a detailed explanation and will further support

said studies in relevance to the impact of non-monetary incentives.

2.4. Tangible Non-Monetary Incentives

The utilization of tangible non-monetary incentives to motivate the worker and improve

efficiency is continually increasing. Tangible non-monetary incentives are as important as

monetary incentives, if not, even better. (Jeffrey et al., 2007)Recipients of tangible non-

monetary incentives relive the special recognition and will have the tendency to appreciate the

organization that honored them. Cash rewards on the other hand, usually have a fleeting impact

which usually leaves the recipients mind as soon as they are spent. Cash, unfortunately, is the

least lasting type of reward, since it is typically confused with other compensation.

According to the 2005 Incentive Federation Study, the top 5 most frequently utilized

tangible non-monetary incentives are gift certificates, plaques/trophies, apparels, cameras, and
watches, which if appropriated properly, would be an effective tool for motivation and efficiency

increase.

The paper on the Motivational Properties of Tangible Incentives written by Jeffrey and

Shaffer listed four psychological processes that impacts the employee and how it influences and

perceives tangible non-monetary incentives. The processes may be categorized into two sub-

categories: The first one would be the perceived value of the reward that incorporates

evaluability and separability, while the second one would be the value of earning the reward

that includes the social reinforcement and its justifiability.

Expectancy Theory of Motivation states that the decision of a worker to exert effort on a

task is directly proportionate to the value of how the incentive is earned. If the tangible non-

monetary incentives offered to the employees are regarded highly, then they will be motivated

to achieve the results.

It would be difficult to put a direct monetary value to tangible non-monetary incentives

such as award plaques or paid vacation trips, hence, the emotional sentimentality attached

becomes a substitute for the consumption utility of the incentive. (Jeffrey et al., 2007)

Generally, tangible non-monetary incentives are typically perceived upon as an opulence

item, especially if said incentive is not justified by the employee who received it. For example, a

worker in a lower income class may not have the expendable income to enjoy the paid vacation

trip he received. Therefore, offering a tangible non-monetary incentive such as a night out at a

movie theatre or family dinner paid by an organization to a worker would be very valuable and

would be appreciated by the latter.

 To conclude, social acknowledgement for the good exerted by the employee is a

necessity. Tangible non-monetary incentives exactly fulfil this purpose essentially better than

monetary incentives since the latter is a socially unacceptable manner of bestowing upon

recognition from peers and people are improbably to flaunt their monetary rewards with

others. Oppositely, the corporeality of a tangible non-monetary incentive is noticeable to

everyone and that an employee will have no reason to feel embarrassed raving about it. In

addition, its physicality provides an enduring reminder of achievement, and most importantly,

how the incentive was achieved. (Incentive Federation, 2005)

2.5. Intangible Non-Monetary Incentives

The third group that will perfect an organizations total rewards structure would be the

intangible non-monetary incentives. Rewards falling under this category may either be social-

related or job-related. (Pattanayak, 2005) Employee recognition is defined as the medium

through which employers use to convey gratitude to their workers for their exemplary work,

attitude, efforts, contributions, and/or outstanding performance.

Various combinations and arrangements to recognize employees exist, it may be

formally or informally, publicly or privately, and written or verbal or nonverbal. In addition,

motivation through recognition demands little to no cost at all for the organization and at times,

offered along with a tangible non-monetary incentive.

Acknowledgement for a job well done is essential, whether it is from ones superior,

peers, family or friends. Efforts unappreciated and unnoticed will lead a worker to develop a

feeling of resentment against the organization. A basic and simple gesture of appreciation
would go a long way for the employee, the manager, and the organization itself. Moreover, if

the recognizer is a respectable or one with a superior status, it would have a positive and

significant impact towards the employee. (Lai, 2009)

A result of a poll conducted indicated that 79 percent of the respondent employees who

quit their jobs is directly proportionate with the lack of appreciation (Fisher 2007) The statistics

further supports the essentiality of social rewards in the place of business and can be compared

to other tangible non-monetary incentives because social rewards serve the purpose to satisfy

the necessity for affiliation, esteem, and self-actualization.

Valuing the employee for their good exertion of effort usually goes beyond friendly social

gestures. Workers want to feel valued and appreciated by their employer. Recognized efforts of

the workers will lead them to feel good about themselves and will result to a stronger mental

link between their actions and the positive intrinsic reward will be established.

Recognition and acknowledge will boost the employees morale since it will allow them

to believe and think highly of themselves. Workers with high self-esteem are more motivated,

optimistic, and willing to work harder and efficiently. In return, people who feel valued will

perform at a much higher level, resulting also in a significant better work output. (Ventrice,

2009)

A guideline established by McConnell (2006) sets a guideline on how to recognize

employees:
 Equality, and consistency Employees should be qualified in order to receive

recognition. Standards for said recognition must be consistent, explicitly defined

and lucidly understood by all.

Timely and personalized approaches to recognition Praises must be given as

adjacent as possible to the occurrence of the act to further enhance the positive

impact on the worker.

Communication between the employer and employee should be sincere and

specific as this is the exemplary time to reinforce the positive behavior for the

future.
Handing positive feedback when things are done correctly will encourage better

improvement.
Never exaggerate and give unwarranted recognition.

Another kind of intangible non-monetary incentive which is equally important is the

task-related kind which includes job rotation, enlargement, enrichment, empowerment,

promotion, opportunities and flexibility of working hours. (Pattanayak, 2005)

One of the best ways to increase motivation onto the worker is through the concept of

job redesign. It involves tailoring job responsibilities with the rotation and enrichment that will

best suit the employee. This motivational strategy will lessen the risk of repetitive strain injury,

most specifically on employees performing a monotonous work. This tool will give the

employee the chance to acquire a wide variety of skills, knowledge, and a better understanding

the organization itself.

Another job related intangible non-monetary motivational tool would be job

empowerment. This motivational strategy states that giving employees more responsibility and
decision-making authority increases their control over the tasks for which they are to be

responsible, resulting to having a greater self-esteem. (Gupta et al., 2014) On the other hand,

job enlargement is defined as the process of increasing the employees scope of responsibilities

by adding more tasks without the added strain to the existing job. Through this, employees are

enable to use their skills to a variety of tasks. It is beneficial both to the employer and employed

in the sense that, organizations will use lower manpower costs as a single employee can do

multiple task and to the employee, a greater self-respect of himself is obtained. (Lai, 2009)

Although, research shows that tasks later on become mundane and dissatisfaction sets in.

In contrast, the primary aim of job enrichment is to the workers greater autonomy of

their work. Empowering employees includes giving them the task to decide, plan, and

coordinate and control how they will manage their tasks. Job characteristic model created by

Hackman and Oldham states that jobs must be tailored to include the five core characteristics:

skill variety, identity, importance, autonomy, and feedback. (McShane et al., 2000)

2.6. Advantages of Non-Monetary Incentives

Economic benefits on the part of the organization is one of the many advantages of non-

monetary incentives most noticeable. It is important to realize that there may also be other

financial benefits that firms may receive from the use of tangible non-monetary incentives from

the advantages said corporation may have over an employee in acquiring these incentives at a

lower cost. For example, a vacation trip for which an employee would have to pay $5,000.

Potential recipients may only find the trip to be valuable to be as, say, $3,500. Through some

bulk arrangements by the organization, this award might be available to the firm for $3,000.
This would make the non-monetary incentive more efficient at motivating the employee than its

cost to the organization due to the fact they will receive the motivational power valued at

$3,500 but only need to pay $3,000.

One of the means by which an organization could provide incentives at a lower net cost

is through the use of company products and/ or services as incentives. For example, hotel

chains often reward their employees with paid stay in company properties, airline companies

reward their employees with free flights or discounted trips, and automobile manufacturers

may provide cars to top performing employees. (Jeffrey, 2007)

Jerry McAdams, co-author of the American Compensation Associations Report,

Organizational Performance and Rewards, presented that non-monetary awards have four

essential advantages over their monetary counterparts:

Memory Value The value of an informal recognition, may it be a push pin, mug,

a certificate or a simple pat on the back, lasts longer compared to monetary

incentives, because money spent, is money gone. On the other hand, tangible

items may be brought home and be appreciated by the employee.

Trophy Value Non-monetary incentives can be shown off to peers and family as

a trophy for their hard works, and exemplary efforts with their tasks, in contrast

with a paycheck and bank statements.

Flexibility There are numerous means that non-monetary recognition may be

given. For a group effort, employers may award their work with a team trophy,

while you can give them a certificate of appreciation individually.

 Cash awards cost money Employers will spend a lot less money on non-

monetary awards and sometimes, said incentive may be even free. Good

manners, acknowledgement, and praises for a job well done by the worker will

go a long a way and will cost noting.

Simply put, non-monetary incentives are a good, if not, the best way to encourage the

employees of an organization to perform better and to satisfy them. Satisfaction of a

worker is an essential necessity to achieve a corporations goal for there is no

corporation without the employee. Hence, their motivational and emotional wellbeing is

a priority for any successful business. (Dransfield et al., 2004)

2.7. Disadvantages of Non-Monetary Incentives

There are a number of disadvantages with these intrinsic incentive schemes. Principal

amongst these is the potential rifts between the workers. If some of the employees feel that

they are unfairly treated, this will lead to the opposite of the intention of the implementation of

the incentives, which is productivity.

In addition, if these incentives are not implemented in a fair and proper way, employees

will eventually believe that they are being taken advantage of. For example, organizations

should think conscientiously in substituting monetary incentives for non-monetary ones.

Employees who do not perform sufficiently well may as if they are taking a pay cut if the

company introduce this sort of scheme. (Aaronson, 2016)

2.8. Synthesis

Considering the multiple scholarly articles, dissertations, and theses presented, we have

established that the motivation of an employee is a necessity for any successful organization.

Management must always seek for ways on how to better improve incentive schemes in order

to motivate the workers.

Monetary and non-monetary are the two main categories of rewards according to

Armstrong (2007). The former includes but is not limited to base pay, merit pay, incentives,

commission and bonus like the Christmas bonus and 13 th month pay. On the other hand, non-

monetary rewards include recognition, promotion, flexible working hours and company

uniforms. Downplayed by most behavioral scientists like Herzberg who discussed the

significance of non-monetary factors as motivators.

But Non-monetary incentives, which is the focus of this research, has been

subcategorize into two categories, namely, tangible and intangible, as presented by Pattanayak

(2005)

Recipients of tangible non-monetary incentives relive the special recognition and will

have the tendency to appreciate the organization that honored them. Cash rewards on the

other hand, usually have a fleeting impact which usually leaves the recipients mind as soon as

they are spent. Cash, unfortunately, is the least lasting type of reward, since it is typically

confused with other compensation.

Meanwhile, intangible non-monetary incentives is defined as the recognition or medium

through which employers use to convey gratitude to their workers for their exemplary work,

attitude, efforts, contributions, and/or outstanding performance.

Both monetary and non-monetary incentives have their share of advantages and

disadvantages in respect with the employee and organization, itself. Trophy, and memory value,

flexibility, and inexpensiveness of non-monetary advantages are some of the advantages of non-

monetary incentives. On the other hand, the rifts among the workers due to misappropriation

of non-monetary incentive schemes will lead to counter productivity within the organization.

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