Incentives and Their Effect on Performance (A Field Study)
2009, Volume 31, Issue 93, Pages 105-123
Human resource considered as the most inconsistent variable in the production process as he has feelings and needs that he expresses in different ways, and which in turn, affect performance in organizations. Moreover, interests, commitment, and seriousness vary from one person to another and from one period to another as a result of the difference in motives and needs. Thus, incentives have a great role in motivating workers. The aim of this study is to explore the reality and utility of the incentives system in the Yemeni Corporation for Oil Drilling and Production. It also probes the impact incentives have upon performance improvement. The significance of this study springs from the impact incentives have upon the worker’s career satisfaction. The sample of the study includes 320 employees chosen randomly from among 1630 who represent the total number of employees in that corporation. The questionnaire method has been adopted. This questionnaire consists of three parts. The first relates to the personal data, the second has to do with recognizing the extent to which incentives are significant for the employees and their impact on performance improvement and which kind of the incentives is the most rewarding for the employees, while the third explores the implementation of the incentives system in that corporation. For result analysis the researchers adopted statistical analyses such as Ratio, Averages, and Normative deviation. In addition, the T-test is used to determine whether or not there are any statistically significant differences the viewpoints of the sample concerning the implementation of the incentives system. The results indicate a meager role of the employees in the process of decision making. Moreover, chiefs pay only scant attention to the employee’s suggestions, which negatively affect their drive. In addition, promotion chances are in no way related to the performance record. Further, most of the employees complain from the low level of bonuses. Finally, the study recommends activating bonuses and relating them to performance, adjusting and improving the administrative systems, adopting the promotion system, and strengthening the feeling of loyalty for the organization by getting the employees involved in the decision making process.
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