If you look for any specific definitions, you will find a huge variation considering the term incentive systems. Weber paraphrases incentive systems as having the aim to encourage employees positively through their performance, with benefits for the organization to reach its stated goals and objectives. In turn, Bartscher identifies incentive systems as the sum of all created working conditions, directly or indirectly to impact the motivation and thus work performance of employees, evoking a certain desired behavior. Coherently, incentive systems aim to control behavior of employees. But they do not only support a certain behavior, such systems additionally are designed to avoid unwanted behavior. Think of any internal regulations which intent to avoid behavior patterns by providing rules and/or punishments. Furthermore, as an example, a low performance might result in a curtailed income and loss of personal reputation.
Table of Content
1. Definition of Important Terms
2. Function of Incentive Systems
3. Design Elements of Incentive Systems
3.1 Basics of Design
3.2 Systematization of Incentive Types
3.3 Basis of Assessment
3.4 Reward Function
3.5 Distribution Policy
3.6 Addressed Audience
4. Requirements of Incentive Systems
4.1 Transparency
4.2 Actuality of Determination
4.3 Cost-Efficiency
4.4 Justice
4.5 Acceptance
5. Constraints of Incentive Systems
6. Extrinsic vs. Intrinsic Motivation
6.1 Extrinsic Motivation 12
6.2 Intrinsic Motivation 12
6.3 Extrinsic vs. Intrinsic Motivation 12
7. List of References
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