The Role of Monetary Incentives: Bonus and/or Stimulus

Abstract

In this paper, the role of the monetary incentives in the employee performance is investigated in the context of Public Administration (PA). In particular, the distribution of monetary incentives among the employees based on the position held, is compared with a merit approach which tends to recognize and reward individual contributions. Starting from a questionnaire, the informal network, which ignores the vertical relation among supervisor and employees, is created and a Centrality Index, based on the employee connections, has been defined and used to proxy the performance of employees. The main goals of the paper are to understand if the two mechanisms of monetary incentive distribution affect the employee performance, to analyze the variables that influence the employee performance, and therefore to identify the role of monetary incentives. The linear regression methodology has been chosen as a tool of analysis. Results show that the distribution of monetary incentives according to merit criteria rewards the employee performance and has positive effects on the employee performance in the short term.

Monetary Incentives in Italian Public Administration: A Stimulus for Employees? An Agent-Based Approach

“…e design of both employees' performance evaluation and monetary incentives distribution have been presented and discussed according to the theoretical and computational aspects. e results have shown a modification of the employee's behavior according to both the theoretical foundations and the results discussed in [89,90]. Both the empirical and computational results show that the monetary incentives work as stimulus for employees to reach the maximum incentive and the mechanism is suitable during the years.…”

Organizational Structure and Artificial Intelligence. Modeling the Intraorganizational Response to the AI Contingency

“…Incentives represent another important coordination mechanism of mesovertical specialization. There exist different ways in which incentives may be implemented, from monetary ones [57,58] to the possibility of hierarchical growth and the increased perception of one's contribution to overall organizational output [59,60]. Artificial intelligence will presumably play a significant role in the definition of one specific incentive.…”

The Impact of Salaries on Direct Production Workers’ Productivity: A Case Study of Garment Enterprises in Vietnam

“…According to the author, if enterprises want to achieve success in a competitive environment, they should value their workers. Another study, conducted by Ponta et al(2020) suggested that the bonuses of enterprises must be flexible, suitable for each object and the achievements that workers contribute, meeting expectations. The effect of bonuses on labor productivity is significant.…”

“…The bonus scale is also measured by workers' perception. The bonus scale is inherited from the previous scale (Bun & Huberts, 2018;Ponta et al, 2020).…”