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EMPLOYEE INCENTIVE SCHEMES

proving and enhancing an individual's capabilities. These include identifying a person's strength and weaknesses, eliminating external performance obstacles, and establishing training needs. Within many organisations, performance appraisals are seen as a necessary evil. Managers frequently avoid conducting appraisals because they dislike playing the role of judge. Largely the success of an organisation depends on the performance of its human resources.Motivation Theory in Business There are many theories regarding motivation with the most prevalent being the theories of Maslow and Herzberg. It is important to understand these theories and their implications to accurately comment on reinforcement theories of motivation. According to Maslow’s hierarchy of needs, there are five classes: Physiological Safety SocialEsteem Self-actualisationEach lower level need must be satisfied before an individual experiences higher level needs. Maslow hypothesised that as above needs were satisfied, they ceased to motivate, while the self-actualisation needs actually motivate an individual more as they are satisfied (Schwab, 1978: 57). Herzberg used this theory as a base to build his motivation-hygiene theory, which ties Maslow’s needs to on the job achievement. The hygiene elements relate to low needs (physiological, safety, and social). For an individual, hygiene conditions include company policy and administration, supervision, relationships with peers and supervisors, work conditions, salary, status, and security. These, according to Herzberg account for 69% of the factors, which cause employee dissatisfaction, or lack of motivation. The motivation conditions, which include achievement, the job itself, recognition, responsibilities, and personal growth, accounted for 81% of the factors, which contributed, to job satisfaction. The hygiene conditions are extrinsic factors while the motivation conditions are intrinsic factors, and the onl...

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