Merits Of Individual Incentives:
1. Employees are individually motivated for higher level of performance in the organization.
2. Organizational ability will increase due to individual's satisfaction at work.
3. Individual incentives will result in greater job satisfaction and organizational productivity.
4. Individual incentive reduces organizational expenses.
5. Individual incentives can be easily administered and applied.
Demerits Of Individual Incentives
1. Since the individual incentive is provided with an additional output, employees tend to increase their output as far as possible and they give less importance to the quality.
2. Goal conflict occurs between individual goals and organizational goals.
3. The quality of work life is reduced.
4. The living standard of employees will be uncertain.
5. Individual incentive does not promote team work,
6. Bonuses are nor directly linked with employees performance.
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