The Effect of Financial Incentives on Worker Motivation at M&S

This business report proposal examines the effect of financial incentives on worker motivation, using Marks and Spencer as a case study. The research aims to identify the impact of monetary benefits on employee performance and productivity. The report outlines the research questions, proposed strategies, and relevant theories, referencing studies by authors such as Ashraf, Bandiera, and Jack. The methodology involves both primary and secondary data collection methods, including questionnaires and literature reviews. Ethical considerations regarding data privacy are also addressed. The project emphasizes the importance of professional development skills, such as motivational leadership and teamwork, for successful project delivery. The report references key academic sources to support its arguments and findings.

Business Report
Proposal

Report Title:
“To examine the effect of financial incentives on workers motivation. A study on Marks
and Spencer”.
Business Context:
Employees are important part for every organisation, thus Marks and Spencer is
focusing on rewarding and compensating employees in order to improve their overall
performance and in making its workforce effective and efficient. It will also helps in changing
their work structure according to the dynamic business environment. . Management team of
Marks and Spencer is adopting various kinds of strategies in order to satisfy its workforce at
highest level (Halpern, and et. al., 2015). It has been analysed that mainly this company is
giving importance to monetary sources for retaining motivating employees to work harder for
receiving more financial incentives.
Project Questions:
What do you want to identify in literature?
Marks and Spencer is focusing on improving sales of its products by influencing
employees with monetary benefits. This research is conducted for the purpose of analysing
impact of financial incentives over workers motivation. In order to attain suitable outcome for
research, investigator have used secondary sources for gathering relevant information in less
period of time over the chosen topic.
What Strategy do you intend to propose or focus on?
For the purpose of analysing impact of financial incentive over workers motivation,
manager of Marks and Spencer have adopted strategy of communicating with its existing
workforce so that employees can easily understand about financial incentives. This will help
understanding their actual point of view as they are the only one who could express their
thoughts over the same things (Garbers and Konradt, 2014). Along with this, it can be said that
strategy of collecting information of secondary sources is also beneficial as it directly provides
information of some other researcher too.
Which organisation demonstrates effective use of specific strategy that you intend to
propose?
It has been analysed that TESCO is also adopting these similar strategies of details

collection from employees as well as gathering information from secondary sources with deep
study is beneficial for the investigator. It can be said that with the help of these strategies,
TESCO have improved motivation level of its employees. As they felt highly motivated with
financial incentives. As a result, they works more harder for gaining high monetary benefits.
Current/ Primarily Research and relevant theory:
Marks and Spencer is planning to increase its production level by motivating its
employees with financial incentives. In this regard, it has been identified that every worker feels
more inspired and motivated with monetary benefits as they are now able to satisfy their
financial needs in effective manner. According to views of Ashraf, Bandiera and Jack, (2014), it
has been analyse that employees are placing additional efforts beyond their capacity so that they
will be getting more amount. As a result, it will be beneficial for the company in achieving its
targeted goals and objective within less period of time.
From the views of Olubusayo, (2016) it is evaluated that Financial beneficial are
beneficial in order to motivate employees at work place as it helps in enhancing overall growth
and proficiency of business. Manager of Marks and Spencer should mainly focus on knowing
the expectation of employees so that work with full potential in order to achieve their targets. If
the employees are rewarded for their work then it helps in motivating them thus they will retain
for long time at work place.
Method of enquiry:
In order to examine the effects of Financial Incentives on worker’s motivation, it is
important for Marks & Spencer’s to motivate their employees and this can be achieved by using
both primary and secondary sources of data collection. With the help of primary method, the
researcher can easily evaluate the feedback given by customer so that employees can be
motivated to achieve their targets. On the other side questionnaire are useful in order to know
the opinion of employees as financial incentives are useful for motivating them thus company
profitability can be enhanced (Carpenter and Gong 2016). The Literature Review section is
useful in order to know the option of different experts by which employees can be motivated
thus they will retain for long time at work and enhancing the overall sales and profitability
index. The most effective method among the two is primary sources as it helps in gathering first

hand data which is beneficial in order to know the factors which helps in motivating employees
at work place.
Identify ethical issues that you might intend to face:
The main responsibility of the researcher is to not to revel the information which is
given by the respondent to any other person without the concern of the person who had given
the information. This results in carrying out the research in ethical and planned manner. There
are
chances of identifying certain issues at the time of conducting research thus the investigator had
focused on executing research activities in ethical manner thus accurate data can be gathered.
The researcher should not be biased so that data can be useful for the research (Babcock and et.
al., 2015).
Planning

Professional and career development skills:
If the project work had to be delivered in the desired time, then the project maker should
have good motivational skill by which they can motivate employees thus enhancing growth and
development of firms. There are different activities in a project that cannot be completed by a
single person thus persons should work in a team as it motivates them in order to achieve their
set business goals and targets (Olubusayo 2016).
The persons should have effective management and leadership skills as it helps them in
minimising conflicts and employees can work together in a friendly environment. This is
beneficial in order to achieve set business goals and targets. In order to achieve proficiency in
all the above discussed skills individuals can join different classes which can complete in 7 to 8
months’ time duration.
REFERENCE:
Garbers, Y. and Konradt, U., 2014. The effect of financial incentives on performance: A
quantitative review of individual and team‐based financial incentives.Journal of
occupational and organizational psychology. 87(1). pp.102-137.
Ashraf, N., Bandiera, O. and Jack, B. K., 2014. No margin, no mission? A field experiment on
incentives for public service delivery.Journal of Public Economics. 120.pp.1-17.
Carpenter, J. and Gong, E., 2016. Motivating Agents: How much does the mission matter?.
Journal of Labor Economics.34(1).pp.211-236.
Olubusayo, H., 2016. Incentives packages and employees’ attitudes to work: a study of selected
government parastatals in Ogun State, South-West, Nigeria. International Journal of
Research in Business and Social Science (2147-4478). 3(1). pp.63-74.
Halpern, S. D, and et.al., 2015. Randomized trial of four financial-incentive programs for
smoking cessation.New England Journal of Medicine.372(22). pp.2108-2117.

Babcock, P. and et. al., 2015. Letting down the team? Social effects of team incentives. Journal
of the European Economic Association. 13(5).pp.841-870.