Epsira Ltd is conducting currently current development project, which aims to reform the incentive system so that the efficiency and morale among the employees are improved.

The objective to this thesis was to develop an incentive system for the production workers, and hence improve motivation. The main aim was to simplify the payment of bonuses, in order to facilitat the payroll. The current incentive formula is so, but Epsira has been forced to calculate the performance-based bonuses on flotation.

The incentive bonus scheme was supposed to be simple and easy to maintain. The system was supposed to be effective, to motivate employees towards better results.

The work started with questions concerning methods improment, to develop an incentive-bonus system.

As a result new ideas were created, a foamed-concrete result was achieved trough floation addition difference by raising premiums by 35 percent production. In addition to this warehouse worker incentive scheme was taken into use complaints from customers and the additional costs generated

Maintenance and plant reserve of men were also gives the idea of how they would join, the incentive system. No correct concrete way to measure could be found, but the initialization work has been done and it is easy to start to develop a good method in order to obtain performance-based bonus.