Effect of Financial Incentives on Workers Motivation

This business report examines the effect of financial incentives on workers motivation, specifically focusing on Marks and Spencer. It discusses the concept of financial incentives, the benefits that Marks and Spencer can get by providing them, different types of incentives, and the relationship between financial incentives and workers motivation. The report also includes a literature review and research methodology.

BUSINESS REPORT

Table of Contents
Table of Contents.............................................................................................................................2
CHAPTER 1: INTRODUCTION....................................................................................................1
1.1 Overview of research........................................................................................................1
1.2 Background of Research...................................................................................................1
1.3 Rationale of Research.......................................................................................................1
1.4 Research Aim...................................................................................................................2
1.5 Research Objectives.........................................................................................................2
1.6 Research Questions..........................................................................................................2
CHAPTER 2: LITERATURE REVIEW.........................................................................................3
2.1 Financial incentive concept..............................................................................................3
2.2 Benefits Marks and Spencer can get by providing financial incentives to employees....3
2.3 Different types of the financial incentives to motivate employees of Marks and Spencer4
2.4 Relationship among financial incentives and workers motivation...................................5
CHAPTER 3: RESEARCH METHODOLOGY.............................................................................7
3.1 Type of Investigation........................................................................................................7
3.2 Research Approaches.......................................................................................................7
3.3 Research Design...............................................................................................................8
3.4 Research Philosophies......................................................................................................8
3.5 Data collection..................................................................................................................8
CHAPTER 4: DATA ANALYSIS AND PRESENTATION........................................................12
CHAPTER 5: CONCLUSION AND RECOMMENDATION.....................................................24
5.1 Conclusion......................................................................................................................24
5.2 Recommendation............................................................................................................24
REFERENCES..............................................................................................................................25

Topic: “To examine the effect of financial incentives on workers motivation. A study on
Marks and Spencer”.
CHAPTER 1: INTRODUCTION
1.1 Overview of research
Incentive refers to all measures which are mainly used to motivate the people for improve
their performance level. The financial incentive refers to money that an individual and firm
provides to encourage the certain actions or behaviours. The financial incentive is a kind of the
bonus that given to staff members to motivate them (Bonenberger and et. al., 2014). It is another
form of the direct compensation beyond the salary. The financial incentives are mainly design to
inspire the loyalty as well as enhance productivity between staff members. Organisations provide
the financial incentive to motivate the staff members so that they can perform in a better and
effective manner. In addition to this, financial incentive can provide the monetary advantages
that an organisation provides to employees. The financial incentives have significant affect on
performance of personnel and it result in enhance motivation of employees.
1.2 Background of Research
Incentive refers to anything that attracts attention to employees and also motivates them
to work in a proper manner. The main aim of providing incentive is to enhance performance
level of employees. In addition to this, financial incentives are the cash prizes that are mainly
used to encourage the staff members for meet with the particular objectives within organisation.
On the other hand, motivation is reason for goals, actions and willingness of people. It helps in
enhance performance level of employees and sustain them at workplace for long period of time.
Marks & Spencer is multinational retailer and it is specialise in selling home products, food
items and clothing (Cascio, 2015). This company provide the incentive to employees if they are
able to attain objectives before set time period. Marks & Spencer Company have the incentive
programs in order to encourage the more growth as well as develop loyalty between staff
members.
1.3 Rationale of Research
This research is taken in to consideration on effect of financial incentives on workers motivation.
This research is helpful in determine the issues related to motivation of staff members and that
results in turnover of firm (Cerasoli, Nicklin and Ford, 2014). This research focus on the various
1

kinds of financial incentives and also their impact on the behaviour of organisation. Under this,
employee incentive programme is basic tool that help firm in attaining objectives because HR is
most necessary asset of company.
This investigation is helpful in enhancing knowledge as well as skills of a learner.
Through this, it will help in future to conduct any investigation in a better and effective manner.
1.4 Research Aim
This research study make an effort to identify an extent at which d. Marks & Spencer make use
of financial incentives in order to improving the productivity of staff members (Chang and et. al.,
2015). The aim of this research is to “To examine the effect of financial incentives on workers
motivation. A study on Marks and Spencer”.
1.5 Research Objectives
 To determine concept of financial incentive.
 To analyse benefits of financial incentives to Marks and Spencer company.
 To identify different types of the financial incentives to motivate employees of Marks
and Spencer”.
 To evaluate relationship between financial incentives and workers motivation.
1.6 Research Questions
 What is financial incentive concept?
 What benefits Marks and Spencer can get by providing financial incentives to
employees?
 What are different types of the financial incentives to motivate employees of Marks and
Spencer?
 What is relationship among financial incentives and workers motivation?
2

CHAPTER 2: LITERATURE REVIEW
Literature review refers to summary as well as explanation of current and complete
knowledge state on limited topic found in the books, articles, journals etc. It is a kind of search
as well as evaluation of available literature under selected research area. The main purpose of
conducting literature review part is to gain the better understanding about topic and solve arisen
issues. This part of research is based on the secondary method and different sources to collecting
the information are books, blogs, internet sources and many others.
2.1 Financial incentive concept
According to opinion Hitesh Bhasin (2019), Incentive refers to reward that is given to an
individual to stimulate actions to desired directions. It is a kind of motivational powers and
mainly used through organisations for the purpose of motivate staff members. Under this,
financial incentives are mainly used through firm to motivate staff members towards meeting set
targets. Money is a symbol of respect, status and power and these plays wider role in satisfying
physiological requirements as well as social security of person. The main benefit of financial
incentive is to develop immediate impact on efforts of staff members and also encourage them to
work in better manner, enhance production, maximise revenue as result of increase development.
Providing the financial incentive to employees is an effective method to understanding to them
that they are valuable for work. On the other hand, financial incentives can provides on group
basis of an individual. Financial incentives seem to most frequently used kind of incentive for the
purpose of enhancing motivation of staff members.
The staff members receive financial payment from company in form of salary. This kind
of payment is to be expected as result of work people was recruited to finish. These are the
monetary incentives which staff members earns as result of the better performance. With the help
of this their motivation level will be enhanced and they will focus on attaining the set objectives
in an effective or significant manner. In addition to this, financial incentives are necessary for
reflecting fair value on duties, commitments and responsibilities of staff members towards
organisation.
2.2 Benefits Marks and Spencer can get by providing financial incentives to employees
On the basis of opinion of Devra Gartenstein (2019) it has been stated that incentive
program is a kind of formal scheme that is mainly used to promote the particular actions through
3

specific group in set period of time. It is mainly used in company to motivate the staff members
and also sustain them for long time period. Marks & Spencer is a large size organisation and its
main objective to motivate employees. Financial incentive is of the effective way to motivate
employees and enhance effectiveness of firm. The incentives provide benefits to organisation in
many different ways which are given below:
High motivation for staff members- The financial incentive plans were developed for
express aim of the urging staff members to motivate for the gain the high achievement. These
are helpful in enhance motivational level of employees so that they can able to perform in a
better manner and enhance productivity of company in significant manner.
Improve work atmosphere- Under this, monetary incentive provides the staff members
with better feeling that their work notices and they will paid for their accomplishments as well as
achievements. In addition to this, staff members develop the positive approach towards their
work and make improvement of overall working atmosphere.
Increase productivity- Incentive is an effective way to enhance morale as well as
performance level of employees in a better manner. If Marks & Spencer will provide the
incentives to employees then in this case they will be motivated and focus on attaining the set
targets or objectives with in set period of time. It helps in increase the productivity as well as
development of Marks & Spencer. From this, firm can get the competitive benefits at the market
place.
2.3 Different types of the financial incentives to motivate employees of Marks and Spencer
As per the opinion of Kalpana R (2019), it has been stated that financial incentive is
additional payment more than regular wage or salary. It acts as better stimulator because it helps
in encourage staff members to make improvement in their level of efficiency and also reach at
target. There are different kinds of financial incentives mention below:
Pay and allowances- Under this, regular incentives in the salary each year and also
allowance are the better motivators. Marks & Spencer pay hikes along with allowances which
are direly related to the performance of staff members. With the help of this, employees are able
to perform in a better manner by using their capabilities.
Bonus- It is an incentive that is given above the salary to staff members. Mostly, this
kind of incentive is given by company at the time of any special occasion for an instance
Christmas.
4

Pay raise- Mainly, these are provided to staff members which have worked in firm for
considerable long time period. Most of the business organisation also provides rise in pay to staff
members which have reached at certain production level. Sometimes, this offer add in the
increment of salary to the loyal workers annually.
Profit sharing- In this kind of incentive, firm provide the share in profit to staff members
as common incentive in order to encouraging them to work in an effective or efficient manner. In
this, schemes of profit sharing is mostly fix through company on the basis of profit percentage. If
profit is exceed percentage then surplus profit is distributed between staff members. In addition
to this, it encourage staff members to work in an effective manner in order to enhance profit level
of organisation so that employees can get the profit in shares.
Productivity linked with wage incentives- These are the wage rate plan that provide high
wages for better productivity. In differential wages system, efficient employees are paid with
high wages as comparison to the inefficient workers. If employees will get the high wages then
they will work in an effective or significant manner.
2.4 Relationship among financial incentives and workers motivation
On the basis of view point of Hitesh Bhasin (2019) it has been stated that financial
incentives are the paid amount to staff members in the lump sum or monthly payments consisting
all the extra income for a person. They are regarded as oldest incentive form that characterised
through immediate or quick form which make the people feel immediate feedback of their better
efforts. On the other hand, financial incentives are set for satisfying the basic need of human and
also encourage employees so that they can perform in a better manner. The main reason of
providing the financial incentive is to enhance productivity of business. In addition to this,
financial incentives are most necessary as well as influential factors to encourage employees in
an effective or significant manner. The motivation is related with different needs as well as
interest of people.
Financial incentive is regarded as positively impact on loyalty or commitment of staff
members. They stay at workplace because cot of leaving company is higher than the advantages
to part of it. There are a direct relationship among the financial incentives and employee
motivation. If company will provide financial incentives to employees other than salary then in
this case they will be motivate and also able to perform the business activities in significant
manner. Incentives do more positive impact on motivation of employees. If the incentive will be
5

higher than staff members will be satisfied from their job and their productivity will be
enhanced.
6

CHAPTER 3: RESEARCH METHODOLOGY
Research methodology refers to the specific process that is mainly used to determine,
collect and analyse information and data regarding particular subject area. It consists an
investigator to providing alternative hypothesis in order to explain the phenomenon. It is a
systematic plan to conduct an investigation (Chiang and Hsieh, 2012).
3.1 Type of Investigation
Methodology refers to the systematic and theoretical analysis of methods which are applied
to area of study. There are two different kinds of research methods mention below as above:
Qualitative method- This method of research is generally grounded in interpretivist as
well as subjective perspective. It is helpful in support in- depth understanding of situation and
mainly consist the small respondents sample (Gupta and Shaw, 2014). This method is based on
the unstructured and semi structured interview as comparison to the quantitative analysis it is
more time consuming.
Quantitative method- Under this method, it is easy to gather as well as analyse information
firm large respondents. The data is presented by the statically and numerical analysis. It is
generally used to quantify issue through method of generating the numerical data.
These are the effective research methods and among both the methods researcher use the
qualitative method because it provides the detailed information regarding specific subject area.
3.2 Research Approaches
It refers to process that includes steps of wider assumptions to the detailed data collection
methods, analysis and also interpretation. Its main focus on address issues in an effective or
significant manner (Hau and et. al., 2013). There are two different kinds of research approaches
mention below:
Inductive research approach- The main focus of this approach is on exploring the new
phenomena and also related with the qualitative investigation. It provides the in- depth analysis
of the investigation in an effective or significant manner.
Deductive research approach- It is generally emphasis on causality and related with the
quantitative investigation. It is related with developing the hypothesis that is based on the
existing theory. This approach follows the most logical path in order to address the issues
(Jacobsen, Hvitved and Andersen, 2014).
7

This present research is based on the inductive research approach because it provides the
detailed information regarding the particular research area.
3.3 Research Design
Research design refers to set of procedures as well as methods used to gathering and
analysing measures of variable which are specified in research problem. Different kinds of
research design are mention below:
Descriptive design- This research design is mainly interested in explaining situation
related to the research study. It is theory based design that is developed through collect, analyse
and also present the gathered data or information (Malik, Butt and Choi, 2015).
Exploratory design- Under this, thoughts as well as ideas of an investigator are the key
dependent on personal inclination regarding specific topic. It is helpful in providing the
information for address issues in an effective manner.
This research is based on the descriptive research method because it helps in provides the
detailed information related to the specific area.
3.4 Research Philosophies
It refers to belief regarding way under which the data and information phenomenon should
be collected and also analysed. It deals with development, nature and source of knowledge.
Interpretivism and positivism are two different kinds of research philosophies (Spekle and
Verbeeten, 2014). Under this research interpretivism research a philosophy has been used
because it aids in provide the in-depth analysis of the opinion of authors in significant manner. 6
3.5 Data collection
It refers to way of collecting data and information in an effective manner. It is helpful in
provide the relevant as well as accurate information related to the particular research area (Tarí,
Molina-Azorín and Heras, 2012). Primary and secondary are two different kinds of data
collection methods which are mention below as above:
Primary method- Under this, data is collected for the first time or never used before. The
various sources of collect data are questionnaire, surveys, observation etc.
Secondary method- In this method, data is collected already through someone from different
sources for an instance books, journals, articles etc. This method is mainly used in conducting
the literature review part (Wang and Hou, 2015).
8

In context with present research, for examining the impact of financial incentives on
workers motivation, both primary and secondary sources are used. Here, some articles have been
reviewed to analyse opinion of other professionals who have already made project on same topic.
This would help in gathering an adequate amount of information. While, a questionnaire is
framed that covers all aspects of study, to take feedback of chosen respondents that are
representatives of entire population, for analysing their views to improve practices of M&S.
 To determine concept of financial incentive.
 To analyse benefits of financial incentives to Marks and Spencer company.
 To identify different types of the financial incentives to motivate employees of Marks
and Spencer”.
 To evaluate relationship between financial incentives and workers motivation.
QUESTIONNAIRE
1.) Do you think that financial incentives really impact on employee
satisfaction and motivation in an organisation?
Frequency
a) Yes 35
b) No 5
2.) Are you agree with the concept that focusing on incentive schemes will
aid M&S in increasing productivity of its workers?
Frequency
a) Yes 28
b) No 12
3.) Do you think monetary incentives influence workers to give more
contribution to business in achievement of success?
Frequency
a) Yes 25
b) No 15
4.) Which financial incentive scheme proves effective for M&S in motivating
its employees?
Frequency
a) Pay and allowances 10
b) Bonus 8
9

c) Profit sharing 10
d) Productivity linked with wage incentives 12
5.) What will be the main benefits M&S can gain by providing financial
incentives to its workers?
Frequency
a) Increase productivity 15
b) Improve work atmosphere 12
c) High motivation for staff members 13
6.) What is the most important factor of M&S that impacts on motivation of
employees?
Frequency
a) Working environment 12
b) Company's policies 18
c) Performance based incentives 10
7.) Is monetary incentive enough for M&S to get loyalty of its employees? Frequency
a) Yes 18
b) No 22
8.) What types of risks M&S can face by providing monetary rewards to its
workers?
Frequency
a) Conflicts among workers 20
b) Risk to damage morale of other workers 10
c) Inconsistency 10
9.) Are you agree with the concept that motivated employees are real assets
of a company in attainment of competitive advantages?
Frequency
a) Yes 28
b) No 12
10

10.) On which factor M&S needs to concern while providing monetary
incentives to workers?
Frequency
a) Reward the right behaviour 12
b) Reduce risk of damaging morale of other workers 10
c) Set up a link between employee's action and incentives 18
11.) Provide recommendation to M&S for boosting morale of workers and
gain their high contribution in achievement of business goals and success...
11

CHAPTER 4: DATA ANALYSIS AND PRESENTATION
Theme 1: Financial incentives impact directly on employee satisfaction
1.) Do you think that financial incentives
really impact on employee satisfaction and
motivation in an organisation?
Frequency
a) Yes 35
b) No 5
Interpretation: Workers are considered as the most important resource of a company that give
huge contribution in achievement of business goals and objectives, in given period of time. In
order to boost morale of them and get energetic performances, it is essential for corporations to
implement effective incentives schemes. Here, by providing financial benefits to workers, they
can empowered workers to work in more efficient manner. This would also give opportunity to
employers to maximise productivity as well as efficiencies of employees also. According to a
survey on 40 respondents as shown in above graphical representation, it has been interpreted by
12
a) Yes b) No
0
5
10
15
20
25
30
35
Column B

perception of 30 of them that financial incentives will really prove beneficial for companies. It
increases chance of retaining workers and reducing high labour turnover also. While, other 5
respondent states that rather than financial incentives, companies need to fulfil other needs of
customers.
Theme 2: Incentive schemes helps in increasing productivity of workers
2.) Are you agree with the concept that
focusing on incentive schemes will aid M&S
in increasing productivity of its workers?
Frequency
a) Yes 28
b) No 12
Interpretation: By providing monetary benefits like high incentives, bonuses, profit sharing and
more, a company can boost morale of its workers. In context with M&S, this will prove in
enhancing productivity and efficiencies of staff members. Through such practices, this company
can also retain its workers for longer period and gain their efforts to achieve business objectives.
From given figure, it has been interpreted that 28 out of 40 respondents are agree with the same
13
a) Yes b) No
0
5
10
15
20
25
30
Column B

concept. They also think that of M&S will recognise high performance of workers then it will
influence others also, to work at their level best. While, other 12 participants are disagree with
this statement as they thought that it may create conflicts among others who were expected to get
incentives and didn't receive. This will demoralise their behaviour and impact negatively on
performance of them also.
Theme 3: Monetary incentives influence workers to give more contribution
3.) Do you think monetary incentives
influence workers to give more contribution
to business in achievement of success?
Frequency
a) Yes 25
b) No 15
Interpretation: To improve employee productivity and performance, it is essential for
companies to find effective ways. It includes bonuses and incentives pay schemes which are
considered as best ways for employers who seek to get high contribution of workers for
14
a) Yes b) No
0
5
10
15
20
25
Column B

achievement of goals. This would also help in changing employee behaviour and engage them
with business objectives more appropriately. According to perception of 25 respondents out of
40 as shown in above figure, it has been analysed that they are also thought same. They have
believed that implementing incentive schemes will help employers in influencing workers to give
better performance. Other than this, remaining 15 users didn't think the same, they have
suggested to implement some effective practices like working hours flexibility, training and
development etc. for the same.
Theme 4: Financial incentive scheme proves effective for M&S in motivating its employees
4.) Which financial incentive scheme proves
effective for M&S in motivating its
employees?
Frequency
a) Pay and allowances 10
b) Bonus 8
c) Profit sharing 12
d) Productivity linked with wage incentives 10
15
a) Pay and allowances
b) Bonus
c) Profit sharing
d) Productivity linked with wage incentives
0
2
4
6
8
10
12
Column E

Interpretation: As people mainly works to earn adequate amount of money according to their
working skill. Therefore, providing different kinds of financial incentives, will really aid a
company in generating feeling of satisfaction among workers. It includes pay and allowances,
productivity linked wage incentives, bonus, profit sharing and more. According to opinion of 10
respondents out of 40, it has been analysed that pay and allowances is the best financial incentive
scheme for M&S. Because beside basic salary, give allowances like dearness, travelling and
increment in pay scale yearly, will help in boosting morale of workers. While, 8 respondents are
in favour bonus scheme which is given in percentage form of salary. Other 12 respondents, states
that providing a share to workers in company's benefits help in motivating employees more, to
give best performance. Apart from this, remaining 10 users give their perception towards wage
incentive plans that are directly linked with payment of wages, for increasing workers'
productivity.
Theme 5: Increasing productivity is the main benefit of financial incentives.
5.) What will be the main benefits M&S can
gain by providing financial incentives to its
workers?
Frequency
a) Increase productivity 15
b) Improve work atmosphere 12
c) High motivation for staff members 13
16

Interpretation: Rewards and compensation always prove beneficial for organisations in
providing job satisfaction under employees. In order to retain workers for longer period,
companies use various type of performance management scheme. It includes financial incentives
that give advantage to corporations in improving work environment, motivating employees and
increasing productivity of workers as well. According to views of 12 respondents out of 40, it
has been interpreted that creating positivity and improving work environment, is the most
beneficial part of financial schemes. While 15 viewers have stated that this would help in
improving as well as enhancing productivity of employees, through which high competitive
advantage can be gained. Other than this, remaining 13 respondents state that monetary
incentives will help in motivating and engaging workers to work in more efficient manner.
Theme 6: Factors which impact on motivation of employees
6.) What is the most important factor of
M&S that impacts on motivation of
Frequency
17
a) Increase productivity
b) Improve work atmosphere
c) High motivation for staff members
0
2
4
6
8
10
12
14
16
Column C

employees?
a) Working environment 12
b) Company's policies 18
c) Performance based incentives 10
Interpretation: There are various factors present under a business environment of companies,
which includes policies and strategies, working environment, performance based incentives and
more, that impacts majorly on employee’s motivation. In context with M&S, as per views of 18
respondents, it has been interpreted that company’s policies related to pay scale, roles and
responsibilities and more impact on motivation of workers. While other 12 participants have
stated that working environment affect more because if there is a positivity at workplace, then all
staff members can work in collaboration and support each other to complete a task on time.
Other than this, 10 users give their perception towards performance based rewards, as it may
motivate to workers who achieve rewards while demotivates others who are expected to get the
same.
18
a) Working environment
b) Company's policies
c) Performance based incentives
0
2
4
6
8
10
12
14
16
18
Column G

Theme 7: Monetary incentive is not enough to get loyalty of workers towards achievement
of business.
7.) Is monetary incentive enough for M&S
to get loyalty of its employees?
Frequency
a) Yes 18
b) No 22
Interpretation: In order to get high commitment of workers and their loyalty M&S seek to
provide good financial incentives to them. As per feedback of 18 respondents out of 40 as shown
in above figure, it has been interpreted that they are also agreed with same concept. While other
22 respondents are not in favour with the same. They have believed that this company needs to
concern on other aspects also to gain loyalty of workers. It includes provide positive working
environment, bring collaboration among employees, give them chance to show skills for
achievement of business objectives and more.
Theme 8: Monetary rewards are associated with many types of risks
19
a) Yes b) No
0
5
10
15
20
25
Column L

8.) What types of risks M&S can face by
providing monetary rewards to its workers?
Frequency
a) Conflicts among workers 20
b) Risk to damage morale of other workers 10
c) Inconsistency 10
Interpretation: As providing financial benefits to workers help employers in getting high
performance of them. But it also gives various types of risks also such as inconsistency,
damaging morale of low performers, conflicts at workplace and more. It has been interpreted by
opinion of 20 respondents out of 40, as shown in above graphical figure that financial incentives
may arise issues related to conflicts at workplace within M&S. Whereas, other 10 respondents
state that there is a large risk of damaging morale of those workers who were expected to get
incentives for their performance. Other than this, remaining 10 users give opinion towards
inconsistency.
Theme 9: Motivated employees are real assets of a company
20
a) Conflicts among workers
b) Risk to damage morale of other workers
c) Inconsistency
0
2
4
6
8
10
12
14
16
18
20
Column J

9.) Are you agree with the concept that
motivated employees are real assets of a
company in attainment of competitive
advantages?
Frequency
a) Yes 28
b) No 12
Interpretation: Employees who are satisfied with their job and give commitment to retain in
business for longer period, are considered as main assets of a company. According to statistical
figure as shown in above diagram, it has been interpreted that 28 respondents out of 40 are agree
with the same statement. While remaining 12 users didn’t agree on the same.
Theme 10: M&S needs to concern various factors while providing financial scheme.
10.) On which factor M&S needs to concern Frequency
21
a) Yes b) No
0
5
10
15
20
25
30
Column C

while providing monetary incentives to
workers?
a) Reward the right behaviour 12
b) Reduce risk of damaging morale of other
workers
10
c) Set up a link between employee's action and
incentives
18
Interpretation: To reduce major risks life conflicts, demoralise the workers and more, it is
essential for M&S to concern on certain aspects. It includes rewarding the right behaviour,
reduce risk of damaging morale of other workers, set a link between employee’s action and
incentive etc. It has been interpreted from above mentioned figure that M&S needs to concern on
rewarding up the right behaviour only, as per perceptions of 12 respondents out of 40. While 10
users have stated to focus on other workers also who doesn’t get financial incentives, because it
22
0
4
8
12
16
Column E

will demotivate them and affect their performance. Other than this, remaining 18 users are
suggested to create a link between incentive scheme and actions of employees more.
23

CHAPTER 5: CONCLUSION AND RECOMMENDATION
5.1 Conclusion
It has been concluded from above mentioned research in order to boost morale of workers
and retain them for longer period, companies are now implemented various rewards and
compensation scheme. It includes financial incentives, where providing benefits like sharing
profitability, high pay and allowances, bonus etc. These kinds of incentives aid a company in
motivating its employees also and encouraging them to give best performance for higher
achievement. Along with this, by such kind of practices, employers get chance to increase
productivity of workers also, through which they can get their support for providing best
products and services to customers.
5.2 Recommendation
As it has been analysed that financial incentives will really prove beneficial for M&S for
motivating its employees and engaging them in business activities, for longer period. But
providing incentives to high performer workers only may impact negatively on others also. It
will arise feeling of discrimination in such workers who didn’t get extra benefits. This would
impact directly on their performance negatively and may increase chance of high labour
turnover. In addition to this, it also creates conflicts among staff members also. Therefore, it is
recommended to managers of M&S to concern on various factors for reducing drawbacks of
financial incentives. It includes give rewards to right behaviour also including best performer, in
such a manner that it may not harm feelings of others. Organising some programs like training
and development, to enhance skills and knowledge of low performers etc. This would help in
increasing productivity of workers more and retain them for longer period.
24

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