II. of knowledge or the current state

II.    Problem or Hypothesis

        State precisely and clearly what you intend
to investigate. (Maximum 100 words)

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The main objective of
the study is to investigate the contribution of incentives to employee
performance and organizational success. There are some specific objectives of the
study are:   Identifying the types of
concrete incentives given to employees at different level of organizations,
Recognizing the efficiency of different incentives on employee performance and
organizational success, Finding out the level of employee satisfaction on
different incentives of organizations, Discovering the socioeconomic growth of
employees through different incentives of organization,   Spotting the impact of incentives for
reducing employee’s turnover from organization, and Detecting the correlation
between different incentives and employee performance.

III.    Review of Related Literature

Write a critical
summary and an assessment of the current state of knowledge or the current
state of the art in the intended area of investigation. (Maximum 500 words)

Incentives are the
different forms of payment of employees which is given by the organization for
their contribution to the organization with their basic pay.  Incentives motivate or encourage someone to
do something which absolutely directs the employee into working harder,
matching the requisite performance in the organization. Palmer (2012) defines
incentives as the external attraction and heartening issues that lead the
employee to work harder; He also identified the incentives as the contemplation
of the outstanding performance, assuming that the salary is enough to build the
worker realize the value of the job.


Incentives play a key
role in the employees’ productivity. The importance of incentives originates
from the need for the employee to be recognized and appreciated for his or her
efforts. The individuals’ own skills are not sufficient to let them work with
high productivity unless there is an incentive system that encourages their
internal motives and then leads very hardworking efforts (Locke and Braver,


The incentive is a
concept of material and moral values and they are also a central point for
different activities in the modern institutions and work environments.
Incentives can be classified into major three from such as short-term
incentives (pay within a calendar year with basic pay), long-term incentives
(pay with long-term basis) and nonfinancial incentives (benefits which have no
monetary value) (Henderson, R. I, 2011). Moral incentives are called indirect
compensation systems such as the stability of the work, participating in
decision-making, commitment, pertinence, (Al-Nsour, M. 2012)


Some have classified
them depending on their effect on each individual, while some based them on the
way they are given out, or on their goals and other ways of classifications
which after a long way of research can be put under two main types of
incentives which are: incentives based on the purpose and incentives based on
the kind of the incentive itself (Robbins and Judge, 2007).


Firstly: incentives
based on the purpose of the incentive, classified into two types: the first one
is the positive Incentives which is the ways that positively affect people’s
behavior through satisfying their needs such as promising the employees of cash
bonuses when they reach a stage of highly qualified performance (Jabeen, M,
2011). The second classification of incentives based on purpose is the negative
incentives which are the ways of affecting people’s behavior by threatening
employees of depriving them of some privileges such as truncating part of their
salary if they violated any of the work’s principles.

Secondly: incentives
based on the type of the incentive itself; are classified into two types: A-
Concrete incentives including classified into three types: 1-The concrete
incentive which is the most important one since it is considered the only
source of living in addition to its being the base on which people depend in
order to satisfy their basic needs and security. 2- Security and stability at
work which is achieved through real guarantees that prevent abuse towards the
employee if he commits a violation. (Perry, and Mesch, 2011). 3-Enrolling the
employees in training sessions help in increasing the morale of these
employees; it also provides them with suitable work conditions and persuades
them to work harder. This is due to the features of service that positively
improve manners performances in the institution (Abu Shaikhah 2000).


In short, moral
incentives are as important as concrete ones regarding their role in improving
human relations increasing the individuals’ productivity inside the
organization, because, as mentioned earlier, some concrete incentives may not
work unless they are accompanied with moral ones (Abbas, A. and S. Hammadi,

IV.    Procedure or Method

Briefly describe how
you plan to investigate the problem you have identified. Your description may
consist of an outline of research techniques or procedures.  (Maximum 500 words)

To understand the
research topic quantitative methods and qualitative mixed method will be
applied. Data will be collected both from the primary and the secondary
sources. The study population, sample size and sampling technique will be
determined later. A standard structured questionnaire will be developed for
collecting primary data. Open-ended close-ended and Likert scale types
questions will be designed for the study.


In order to cover the
theoretical part of the study, several books, publications and other
theoretical references relevant to the topic will be reviewed. Descriptive
analytical approach of data analysis will be used through field survey of the
statistics community which will be the employees at any specific industry of
Bangladesh or Malaysia, and then analyzing the collected data by using
statistical analysis program (SPSS), depending on a questionnaire as a major
tool in collecting the needed data for the topic of the study.


V.    Selected Bibliography

List a representative
sample (no more than 10) of the primary bibliographic sources you plan to use
in your thesis.  Provide full citations
for each source listed.


Abbas, A. and S.
Hammadi, “Motivations and their Effects on Performance”, Tanmiat
Alrafidain 93(31), 2009.

Abu-Shaikhah, N. A.,
(2000) Human Resource Management. Amman, Dar Alsafa,

Al-Nsour, M., (2012)
“Relationship between Incentives and Organizational Performance for
Employees in the Jordanian Universities”, International Journal of
Business and Management 7(1)

Henderson, Richard, I.,
(2011) Compensation Management in a Knowledge-based world” Prentice-Hall; Ten

Jabeen, M., (2011)
“Impact of Performance Appraisal on Employees Motivation.” European
Journal of Business and Management 3(4),

Locke, H. S., and T. S.
Braver, (2008) “Motivational Influences on Cognitive Control: Behavior,
Brain Activation, and Individual Differences. Cogn. Affect. Behav.
Neurosci.” 8(99).

Palmer, W., (2012)
“Incentive and Disincentive: Will They Affect Performance.”

Perry, J. L., D. Mesch,
et al., (2011) “Motivating Employee in New Governance Era: The Performance
Paradigm Revisited”,

Robbins, S. P., and T.
A. Judge., (2007) Organizational Behavior, Pearson International Edition.