ABSTRACT
In addition to the normal wages or salaries, it is common practice in many industries for some groups of employees to be able to augment their wages or salaries by earning additional payments in various forms. In work of a highly creative nature the prospect of incentive payments will not stimulate greater creativity. Tipping is a form of payment that originated when many workers in the old inns were not employed by the innkeeper but were retained by guests to do particular jobs such as carrying bags, cleaning garments, etc. Financial incentives can reward individual employees or groups of employees through increased payment for their increased contribution to the enterprise. However, they can achieve little on their own. They must be part of a comprehensive, well-balanced personnel policy that is based upon offering every employee adequate wages and other conditions before incentives are offered.
