Publication Date


Document Type


First Advisor

Green, Gerald G.

Degree Name

M.S. (Master of Science)


Department of Management




The purpose of the study was divided into two main areas. First, to discover the extent non-monetary incentives are employed by managers in small manufacturing companies, what these measures are, and how employed. Secondly, to assess the effectiveness of these measures. The primary source of information was a mail questionnaire sent to 306 presidents of manufacturing firms from 100 to 500 employees in the states of Illinois, Iowa, Wisconsin, Missouri, and Michigan. Added information was obtained through library research. The data revealed the following: 1. The age, number of employees, and work force longevity in respondent firms. 2. Degree of unionization of firms. 3. Whether firms use non-monetary incentives, what methods are used, and how they are employed. 4. Degree of effectivity of non-monetary incentives. 5. The age group and length of service group most motivated by non-monetary incentives. 6. The effect of non-monetary incentives on productivity, morale, and labor turnover. 7. The ranking of eight given non-monetary incentive methods as to effectivity. The study reached the following conclusions: 1. The serious application of non-monetary incentives was limited to 32 per cent of respondents. 2. Non-monetary incentives were reported either very effective or moderately effective in 91.5 per cent of firms. 3. The effect of non-monetary incentives on productivity, morale, and labor turnover was reported as minimal, although research showed significant effect. 4. The worker most affected by non-monetary incentives was from 35 to 50 years of age, white collar, and had reached a reasonable level of monetary income satisfaction. 5. Non-union firms used non-monetary incentives nearly three times as often as their unionized counterparts. 6. For any incentive program to be effective, there must be an ultimate tie-in between effort and reward. 7. To the person who has reached a plateau of reasonable monetary reward, recognition means more than money, "Earned money can buy their needs, but an engraved trophy of sincere warmth and recognition cannot be purchased." The following recommendations are made: 1. The cost-price squeeze makes it necessary for the manager to study and employ non-monetary incentives. 2. Non-interest in psychological incentives should be reversed through communicative media to reveal positive results gained through utilization of incentive management. 3. The manager must apply monetary and non-monetary incentives in proper balance, providing a tie-in between the workers efforts and the incentive provided.


Includes bibliographical references (pages [91]-92)


108 pages




Northern Illinois University

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