Types of Incentive System According to Werther and Davis.

Werther and Davis (1996: 413) writes the kinds of incentives as follows:

a. Piecework
Piecework is an incentive system that compensates the worker for each unit output. Daily or weekly pay is determined by multiplaying the output in units times the rate per unit

b. Productions bonuses
Production bonuses are incentive paid to workers for exceeding output golas. Often employees receive a base pay rate. Then, througth extra effort that results in output above the standard, they get a supplemental bonus, wich is usually figured at a given rate for each unit of production over the standard

c. Comissions
In sales jobs,the seller may be paid a percentage of the selling price or a flat amount for each unit sold.When no base compentation is paid, total earnings come from commissions

d. Maturity Curves
Another approach is maturity curves,which are adjustments to the top of the rate range for selected jobs.Employees are rated on productivity and experience

e. Merit Raises
Merit raises are pay increases given after an evaluation of performance. These raises are usually decided by the employee’s immediate supervisor,often in conjuction with superiors. Althougt merit raises reward above-average performance, they are seldom tied to any specific payout standard

f. Nonmonetary Incentives
Incentives usually mean money, but performance incentives also come in other forms. For example, many companieshave recognition program in which employees receive plaques, novelty items, certificate,time off,vacarions and other noncash incentives for job performance

g. Incentives Executives
Incentives-especially executive incentives needed to achieve a balance between short-them results and long term performance

h. International Incentives
To attract, retain and motivate international executives and key employees,many global companies are setting up “foreign allowances” that are incentivesfor international employees.

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