Incentive is reward that organization give to employee or team who perform better.

Organization give incentive to employers with purpose to motivate them and make their
performance are better and also they give punishment to empolyers who didnt perform well. But,
Do you think incentive can make employers perform better?
Actually maybe yes maybe no and its like carrot and stick. Carrot means sweet reward and
stick like punisment. Let me show you evidence and researh about this issue. Popular author Dan
Pink argues in "Drive," that reward-and-punishment system might work for motivating people to do
simple tasks, but it's not so great for getting people to do complex work over the long term.
Psychological researchers comprehensively analyzed the results of 128 laboratory studies into the
relationships between incentives, motivation and performance. Their findings not only concerning
intrinsic motivation, but also showed that incentive-based (extrinsic) rewards can have the net effect
of actually lowering performance. Other reserch from Alfie Kohn, When it comes to producing lasting
change in attitudes and behavior, however, rewards, like punishment, are strikingly ineffective. Once
the rewards run out, people revert to their old behaviors. And for productivity, at least two dozen
studies over the last three decades have conclusively shown that people who expect to receive a
reward for completing a task or for doing that task successfully simply do not perform as well as
those who expect no reward at all. These studies examined rewards for children and adults, males
and females, and included tasks ranging from memorizing facts to creative problem-solving to
designing collages.. All of the research think is quiet same incentives or rewards are not the effective
way to motivate employers or make productivity more higher in some case but, it will work for other
case. So, when incentives are effective and not?
Incentives will effective in organization that employers performance can be assesed and can be
measurable with incentives, for examples incentives will be effective in sales department because
you can easy measure it with as much they sell product as much they get rewards. The otherside
incentives not effective because they make employers compete each other and forget about their
real purpose in organization such as their all productivity and make profit together for their
organization. So, Incentives or rewards like two sides of coin that can have positive and negative side
and it depends to organization which side that they will take.