"Employees respond best to monetary compensation. No incentive will engender better performance than a raise in salary or a big bonus for a job well done. "
From your perspective, is this an accurate observation? Why or why not? Explain, using reasons and/or examples from your experience, observations, and reading.


A typical work place involves stretched targets to be achieved in a challenging time frame. At the end of the day, the stress it creates can only be compensated when an employee knows that his efforts and hard work are appreciated. Incentives are an answer to it. Some might be of the opinion we work for job satisfaction.Job satisfaction means to enjoy doing a particular work, learn in the process and surely it comes with a monetary benefit.It helps in raising the morale of an employee and they feel appreciated for the effort put in accomplishing a task.


Incentives can be of many types like treating the employee in a luxurious hotel, or sponsoring tickets to an exotic location, or offering shares of the company or promotions, but the best incentive is monetary benefit. It is the best incentive for a job well done. I agree with the above stated observation.

The monetary incentive gives freedom to the employee to utilize it in ways desirable to them. An employee may not like eating out or visiting exotic location. The share market is an unstable world; the person might actually not believe in shares. Some may have a student loan to repay or assist an ailing relative. Thus the flexibility in monetary incentive is much higher than other kinds of incentives.

Incentives encourage the employees to continue their streak of performance and perform even better the next time. To conclude the incentive acts as a boost to the employee and helps the purpose of an employer.