Motivational Incentives for developing salesforce performance in emerging markets

Motivation is important because it determines and individual´s effort toward performing a task and it leads to an optimistic and challenging attitude at work place. Incentive motivation is concerned with the way goals influence behavior. Incentive is the promise or stimulus for greater action. Incentives are something that is given in addition to wages. It means additional remuneration or benefit to an employee in recognition of achievement or better work. Organizations in emerging markets are more likely to give group rewards and generally do not encourage risk taking as much as developed economies. Money motivates employees to some extent but there are other powerful sources of motivation such as interesting and challenging tasks and assignments, praise, good interpersonal relations etc. This paper analyzes incentives plan structure of sales people in Croatia. Advantages and disadvantages of different compensation plans and benefits for salespeople are discussed.