Effect of Financial Incentives on Workers Motivation

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
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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?
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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
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