Wage Incentive Schemes and HRD Policies seek to motivate employees by paying extra remuneration. Basic principle underlying incentive plans are very simple. Employees will be more productive if their income is tied to the amount of time they spend on the job. According to Webster, incentive is “that which incites or has a tendency to incite action”. It is something that arouses effort or action. “Motivation” and “incentives” are closely related. Actually, “motivation is supplying the incentives which encourage the individual and directs his activity towards a pre-selected goal. Incentive is satisfaction of “motive” and “movie” is the emotional feeling for social approval, security, belonging, interest and prestige. “It is any consideration or object exciting to choice or moving the will”. But according to Roger Falk, distinction has been made between” motivation” and “incentive”. As per his concept, an incentive is something that someone offers to someone else. A “motivation” is within a person. It is very often an irrational inexplicable impulse or instinct or any idea, need, emotion or organic state that prompts to action. Often a worker may be motivated to work better for reasons that do not necessarily stem from incentives handed to him from outside. However, incentives have a highly personal aspect and also involve tangible and intangible rewards that are recognizable by members of a social group.
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