Marginal Effect Of Monetary Incentive Policy

Purely linked to money, so that employees in the hearts of the relationship between the enterprise as a pure contractual relationship, how much money, how much work to do, in the low level of employee income or relatively low income incentives for employees have a very significant effect, in this case, if other enterprises to provide a higher salary, workers will go back and forth without hesitation.

But to a certain level of income, even if the enterprise can continue to increase wages, it still can not guarantee the enthusiasm of the staff.

This is the marginal effect of monetary incentive policy, which should be fully taken into account when applying general business.

Because when wages are high enough, their significance for employees will drop. For example, when employees' salaries increase from one thousand yuan to two thousand yuan, the extra one thousand yuan will be of great significance to employees. When wages rise from two thousand to three thousand, this one thousand is not as important as the former one thousand, while three thousand is four thousand, which is much less meaningful.

Although the amount of growth is the same, the value of employees is in a curve.

Moreover, because of certain psychological factors, leaders tend to be more careful about the increase of employees' wages, so how can they ensure their enthusiasm?

Hawthorne's factory experiment, led by Mayo, a professor of psychopathology at Harvard University in 1929, can be carefully examined. In the relay assembly room experiment, it is found that the determinant of productivity is not the working conditions, but the mood of the workers.

In the "interview plan", it is found that feelings and opinions can not be understood without feeling. The emotion is easy to disguise. Only when the employees' personal situation and workshop environment can be understood, can the workers' feelings be understood.