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The role of Incentivisation in efficiently managing workforce

Managing workforce is one of the toughest jobs in an organization. The performance of an organization depends on the performance of its workers. Hence, it is very much essential to motivate workers in performing their jobs well. Recognizing good performance and appreciating it is a good method of motivating workers. But, recognition is not sufficient in managing workforce efficiently. Here comes the importance of incentives or rewards. Here, the role of incentivization in efficient management of workforce will be looked at.   (Faulkner, 2003; Humphrey, 2011)

Incentivisation and efficient management of workforce

Many organizations want to incentivise their workforce to induce them to perform well. Incentives not only create in workers a feeling of participation in the fortune of a company, but also recognize good performance.  To improve overall organizational performance, it is essential that workers feel themselves to be a part of the entire organization than their bosses. Incentives create this feeling among workers. Thus incentivization makes it easier for the human resource managers of an organization to manage the workforce. (Humphrey, 2011; Great Britain: Parliament: House of Commons: Health Committee, 2007)

Incentivization also plays a crucial role in managing workforce at the time of economic instability. At this time, workers become quite anxious and may find it difficult to stay motivated in their jobs. During this time, selection of proper incentive scheme helps employers to keep their employees focused on their jobs. For example, offering share option seems to be quite motivating for workers. (Pope, 2009)


It can be concluded that in order to manage workforce efficiently, it is necessary to keep workers motivated and incentivization helps in motivating workforce. A well-thought scheme of incentivizing workforce automatically makes it easier for the managers to manage workforce efficiently.



  1. Pope, B., 2009. Keeping Your Workforce Incentivised. [online] Available at: http://www.walkermorris.co.uk/content.aspx?id=784 [Accessed on 11th June, 2011].
  2. Humphrey, K., 2011. Incentivise employees with effective reward management. [online] Available at: http://westfieldshr.wordpress.com/ [Accessed on 11th June, 2011].
  3.  Faulkner, M., 2003.  Customer management excellence. New York: John Wiley and Sons.
  4. Great Britain: Parliament: House of Commons: Health Committee. 2007. Workforce planning: fourth report of session 2006-07, Vol. 2: Oral and written evidence. London; The Stationery Office. 


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