Impact of Incentives on Public Sector Performance: Comparing African and European Systems
Impact of Incentives on Public Sector Performance: Comparing African and European Systems

Author(s): Olusegun Oladapo Akarele
Subject(s): Social Sciences
Published by: Udruženje ekonomista i menadžera Balkana
Keywords: Public sector employees; Productivity; Europe; Africa; Incentives; Comparative analysis
Summary/Abstract: This paper examines the varying impact of financial and non-financial incentives on public sector performance across Africa and Europe. Using a mixed-method comparative analysis, the study highlights key differences: in Africa, intrinsic motivators such as job satisfaction and organizational commitment drive productivity, while in Europe, structured financial incentives like performance-related pay (PRP) play a significant role. However, the effectiveness of PRP is uneven, particularly in decentralized government institutions. The paper advocates for a hybrid incentive model that integrates both intrinsic and extrinsic motivators, tailored to each region’s cultural and economic contexts, to enhance public sector performance.

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