As discussed in this chapter firms vary widely on the extent

As discussed in this chapter, firms vary widely on the extent to which they emphasize money as an incentive. Do you think an emphasis on financial incentives is good or bad? Explain.

Solution

Use of financial incentives or money as an incentive is used by companies to improve the productivity and morale of employees and reward them for their hard work. Finacial incentives cannot be termed as good or bad. It has its pros and cons. The pros of using financial incentives are:

Cons are:

So, it can be said that for the short term financial incentive is a good tool. But in the long term, it does more harm than good and should be used along with non financial incentives.