Question2 a 25 Explain why incentive pay is used by employer

Question2 a. [25%) Explain why incentive pay is used by employers. b. 25%) Incentive pay has been used more recently in the public sector. Discuss i) what problems may be encountered if incentive pay were applied in the public sector and ii) provide evidence about the effectiveness of incentive pay in the public sector.

Solution

1.Incentive pay is indeed mostly used just to get the workers motivated, work hard and strive for the best possible results.So using this, he can easily get to drive the workers agenda to increase the efficiency of the output and that is the reason why incentive pay is used by the eployers.

2.i) In public sector, not every stage manager aims to achieve profit but it aims more at the welfare of the people and when the effectiveness is measured in terms of profit monetary terms, the results may get to go wrong which isn\'t desired. The JP scheme was one such a practical example that can point out the effectiveness of the public secto pay incenctive method.