MGT502: Annotated Bibliography Analysis of Incentives and Performance

This annotated bibliography examines the effects of various incentive schemes on employee performance, motivation, and overall organizational improvement. It highlights the positive influence of financial and tangible incentives, as well as the benefits of combining both types of rewards. The analysis references several research studies that explore how incentives contribute to behavioral ambidexterity, job satisfaction, employee creativity, and enhanced job performance. The bibliography concludes that incentives, both tangible and intangible, are essential for increasing organizational performance and generating valuable ideas from employees. The research covers topics such as the impact of incentive schemes, the role of tangible and intangible rewards, and the influence of intrinsic and extrinsic motivation on employee performance and creativity.

Running head: ANNOTATED BIBLIOGRAPHY ANALYSIS
Annotated Bibliography Analysis
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ANNOTATED BIBLIOGRAPHY ANALYSIS
The world today is witnessing an influx of emerging organizations belonging to different
industries. And while the industry sector is flourishing, retaining employee is also an ongoing
issue faced by employers today. Many studies and researches have been conducted over the
years to examine ways or methods of retaining employee. One such way of employee retention
along with employee motivation, better performance and overall organizational improvement is
the introduction of incentive culture.
According to a research study conducted by Ahammad, Lee, Malul & Shoham
(2015), incentive schemes have a positive influence on employee productivity, motivation and
performance. It results in the creation of behavioral ambidexterity in employees which is the
ability to attain contradictory processes in an organization. Financial incentives can certainly
increase employee motivation. Employees who receives monetary incentives can certainly
contribute towards making an organization ambidextrous (Ahaammad et al., 2015). Meanwhile,
tangible incentives can act as the sources that increase job satisfaction by adding a sense of
meaning to their jobs (Cassar & Meier, 2018). However, an amalgamation of tangible and
intangible incentives or rewards have a greater probability of boosting employee creativity
(Yoon, Sung, Choi, Lee and Kim, 2015). Any form of reward whether intrinsic or extrinsic have
the probability of increasing employee creativity and enhance their job performances (Malik,
Butt & Choi, 2014).. Incentives enhance employee performance and motivation but also
contributes in generating better quality ideas from employees for the benefit of the organization
(Gibbs, Neckermann & Siemroth, 2017).
It can be concluded that incentives are essential to increase overall performance of an
organization. Incentives are both tangible and intangible and contributes in better performance
and motivation.

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ANNOTATED BIBLIOGRAPHY ANALYSIS
Reference List
Cassar, L., & Meier, S. (2018). Nonmonetary Incentives and the Implications of Work as a
Source of Meaning. Journal of Economic Perspectives, 32(3), 215-38. [DOI:
10.1257/jep.32.3.215]
Faisal Ahammad, M., Mook Lee, S., Malul, M., & Shoham, A. (2015). Behavioral
Ambidexterity: The Impact of Incentive Schemes on Productivity, Motivation, and
Performance of Employees in Commercial Banks. Human Resource
Management, 54(S1), s45-s62. doi: 10.1002/hrm.21668
Gibbs, M., Neckermann, S., & Siemroth, C. (2017). A field experiment in motivating employee
ideas. Review of Economics and Statistics, 99(4), 577-590.
[https://doi.org/10.1162/REST_a_00631]
Malik, M., Butt, A., & Choi, J. (2014). Rewards and employee creative performance: Moderating
effects of creative self-efficacy, reward importance, and locus of control. Journal Of
Organizational Behavior, 36(1), 59-74. doi: 10.1002/job.1943
Yoon, H. J., Sung, S. Y., Choi, J. N., Lee, K., & Kim, S. (2015). Tangible and intangible rewards
and employee creativity: The mediating role of situational extrinsic motivation.
Creativity Research Journal 27(4), 383-393.
[https://doi.org/10.1080/10400419.2015.1088283]