Wage Incentives: An Evaluation in Terms of Contemporary Motivation Theories

Abstract

Business managers have been searching for ways to reduce costs through increased productivity for probably as long as they have been paying for labor. | Fredrick W. Taylor introduced a system in the 1880's known as the Taylor System or the Scientific Management System. He did this in an attempt to increase the productivity of labor. His system was quite successful and was very widely accepted in industry. Although there are many variations of this plan in industry today, it is still finding rather broad application in the form of wage incentive plans. | More recently, the behavioral scientists have been involved in industry, making extensive studies on human behavior as it relates to motivation and productivity. They have espoused such theories as Human Relations Approach, Employee Centered Supervision, and Job Enrichment to further improve productivity. They have tended to discount the value of wage incentives as a motivating factor.