The interplay of organizational factors, incentive systems, and employee performance

Irmohizam Ibrahim (), Norhasni Zainal Abiddin (), Rogis Baker () and Ahmad Mujahid Ahmad Zaidi ()

International Journal of Asian Social Science, 2024, vol. 14, issue 11, 368-376

Abstract: This systematic review aims to explore the relationships between organizational factors, incentive systems, and employee performance in modern workplaces, addressing the need for a comprehensive understanding of these interconnected elements. A rigorous three-stage methodology was employed, including a comprehensive database search of international databases such as Google Scholar and Scopus, screening based on predefined inclusion/exclusion criteria, and quality assessment using the Mixed-methods Appraisal Tool. This was followed by qualitative synthesis and framework analysis to identify patterns and trends across the selected literature. The review reveals that well-designed incentive systems can significantly enhance the impact of positive organizational factors on employee performance, while emphasizing the importance of considering both intrinsic and extrinsic motivational factors. Several moderating variables, including organizational culture, leadership styles, and individual employee characteristics, were identified as influencing incentive system effectiveness. The study also highlights the need for organizations to adapt their incentive strategies to evolving work paradigms, such as remote work and the gig economy. These findings provide valuable insights for managers and policymakers seeking to optimize their organizations' performance management strategies, emphasizing the importance of aligning incentive structures with organizational goals and employee needs. The review suggests that a holistic approach, considering multiple interconnected factors, is crucial for sustaining organizational performance and employee productivity. Future research directions include cross-cultural studies and longitudinal approaches to further understand the dynamic interplay between incentives, organizational factors, and employee productivity in changing work environments.

Keywords: Employee performance; Incentive systems; Motivation; Organizational factors; Productivity. (search for similar items in EconPapers)
Date: 2024
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