Motivational Potential of Group Incentives and their Relationship with Organizational Performance
This paper explores the prevalence of group cash and non-cash group incentives as well as a typical profile of a
company that applies such incentives. Furthermore, differences in behaviors, attitudes and organizational success was
compared between companies that apply at least type of employee financial participation and those that do not apply them at
all. Based on the results of an empirical research undertaken on 42 medium-sized and large companies, it was revealed that
employee financial participation schemes are mostly used for managers with profit-sharing schemes being most frequently
used form of employee financial participation. Additionally, the majority of companies that apply employee financial
participationis owned by private domestic capital, are established after 1990 and are limited liability companies. Finally, of
companies reporting to apply employee financial participation, the majority is profitable, are more productive compared to
competitors, experience more pleasant organizational climate and have lower absenteeism rates of managers and experts.
Index Terms - Employee financial participation, group incentives, profit-sharing, reward management.