A Study on the Link Between Incentives and Production Output in Premier Shoes

Mr. Sudharsan S¹, Dr. D. Chitra²

Sudharsan.S Student, Master of Business Administration, Panimalar Engineering College, Chennai – 600123

Dr. mickle Aancy, Professor, Master of Business Administration, Panimalar Engineering College, Chennai – 600123

Abstract:This study examines the relationship between incentives and production output in Premier Shoes, a labour-intensive footwear manufacturing company. The study focuses on the influence of financial and non-financial incentives on employee motivation, productivity, and work behaviour. Primary data were collected through structured questionnaires and supported by secondary data from journals and previous research studies. Statistical tools such as percentage analysis, weighted average, correlation, t-test and ANOVA were used for analysis. The findings reveal that incentives have a significant positive impact on production output, encouraging employees to exert extra effort and improve performance standards. Financial incentives, especially cash bonuses and piece-rate wages, emerged as strong motivational factors. However, moderate satisfaction regarding fairness and effectiveness of the incentive system indicates scope for improvement. The study concludes that a well-designed incentive system enhances productivity, supports employee motivation, and contributes to organizational efficiency.Keywords: Incentives, Production Output, Employee Motivation, Financial Incentives, Productivity, Footwear Industry.