Impacts of incentives on the performance of employeesStudent NameSchool NameIntroductionEmployees are the key component to any organization and their performance will determine the productivity of any company or organization. Hence they are the key to success of any company. Employers who want their company to be successful must be ready to invest considerably on their employees. One of the ways through which employers ensures that their company is performing well is through the use of incentives. Incentives motivate employees and will keep them engaged and committed in their work thereby enhancing their performance (Laura, 2010).DefinitionsIncentive can be defined as anything either financial or non-financial that will motivate or encourage employees to do their work effectively and efficiently (Richard & Steven, 2011). Incentives contribute to greater outputs or performance of the employees. Performance on the other hand refers to how well employees fulfill their job requirements. Performance can be determined by the effort or skill of an employee (Engellandt & Riphahn, 2011).Types of employee rewardNegative incentives; these are those type of incentive which are usually meant for those employees who are underperforming in the organization. These types of incentives are usually meant to discourage employees from certain traits which hinder their performance (Al-Nsour, 2012). Examples of negative incentives include the following; temporary isolation, suspensions without pay, demotions, penalties and fines, salary decrease, and extended working hours. In temporary isolation an employee who is underperforming will be isolated from the other employees. The isolated employee will feel uncomfortable working alone and this will enable him or her put more effort towards improving his or her performance in order to rejoin the rest of the employees again. A suspension without pay is another form of a negative incentive, which involves suspending an employee for a number of days without pay. The suspended employee will suffer the consequences of not receiving the payment for the number of days he or she is suspended. On resumption of the duty after the suspension period is over the employee will not be willing to suffer the same consequences and will try to adjust his or her effort in order to improve the performance. A negative incentive can also be in the form of salary deductions or decrease. Such type of incentive will encourage the employee to work towards improving his performance in order to avoid the deduction or decrease in salary. Penalties and fines might also be imposed to employees who are under performing hence making them work harder so that they can avoid such type of penalties and fines. Finally demotion might also be used as a means of negative incentive to enhance the performance. The demoted employee will try to work hard so as to avoid further demotion or to get promotion.Positive incentives, on the other hand are those types of incen...