Publication Date


Document Type


First Advisor

Novak, Ralph S.||Green, Gerald G.

Degree Name

M.B.A. (Master of Business Administration)

Legacy Department

Department of Management


Personnel management; Incentives in industry


It has been believed by rat management people that sound system of incentive payment is the key to optimal productivity, Worker acceptance or rejection of an incentive program ultimately determines whether or not it will achieve the desired objectives. Therefore, to insure the success of an incentive plan in terms of purpose it is necessary to take into account not only the financial but other motivations involving the whole and not simply economic men. It is the purpose of this investigation to show (1) that the real value of a wage incentive system can only be effectuated when it is economically sound and when it is voluntarily accepted by the worker for whom it is intended; (2) that worker acceptance is dependent upon relevant factors which includes a properly maintained system providing the worker with a fair chance to earn more money, trust and understanding, effective leadership, and a general degree of worker satisfaction; (3) that in those situations indicating the absence of relevant factum management, must assume the primary role in affecting the proper climate in which a wage incentive system can prosper. In order to establish some evidence pertaining to the impact of money on the worker a list of twelve relevant factors was submitted to selected participants of a company for the express purpose of being judged in order of importance. The twelve factors selected were based on the premise that they do contribute to job satisfaction which in turn promotes a cooperative atmosphere that influences motivation. Included in the list of factors is one which has direct reference to a wage incentive plan offering a reward to the faster worker. While it is important to know which factors has the greatest merit to workers it is of greater concern to know the relative position of the incentive factor in relation to the remaining eleven factors. Knowing the relative position of the incentive plan gives some indication as to its power to motivate. The nature of this investigation is provide the necessary information that will allow for making inferences about the real value of conventional wage incentive plan and its ability to increase production as a result of worker acceptance. The study conducted at the Nova Packing Plant views the needs which workers consider most important in the work situation. It is of interest to note that of the factors ranked, the one on "a wage incentive plan which offers a just reward for the faster worker" was ranked far down the list. That other factors were selected as more important is significant. It indicates that where incentives conflict with the other relevant factors it is quite possible that performance levels of productivity can fall below normal expectancy. This fact is substantiated by another experiment involving a work group in the company. In this situation output performance was improved through worker recognition and participation. These motivational needs were absent in the original climate. In addition to the satisfaction of other needs the practicability of a wage incentive plan must also consider the economic benefits that can be derived from such a system. The study indicates that if output performance of workers can be brought up to the normal expectancy, If overall performance produces a large enough advantage to the company, and if the cost of administering the incentive program does not exceed the benefits then it is likely that a company can be justified in its use.


Includes bibliographical references.


v, 53 pages, 4 unnumbered pages




Northern Illinois University

Rights Statement

In Copyright

Rights Statement 2

NIU theses are protected by copyright. They may be viewed from Huskie Commons for any purpose, but reproduction or distribution in any format is prohibited without the written permission of the authors.

Media Type