The Effect of Incentives on Improving the Employees’ Performance for Public Sectors in Malaysian Universities

As knowledge producers and higher education providers, universities play important role in any country. Training of qualified labourers and technicians is the responsibility of universities. The staff of higher education institutions are essential tools. Highly motivated workers would depend on whether the universities perform the expected position of society. The essence of the success of employees in universities is therefore necessary to understand. Universities worldwide face new challenges in the 21st century. The transformation from Elite Higher Education to Mass higher education concept, internationalization and globalization, the widespread use of IT and new funding methods in HE are considered some of the major causes of shifting forces in response to new challenges. The problem is that it affects the efficiency of employees at work in the educational industry in Malaysia. In this report, the educational sector focuses on its success and its impacts. In addition, the management must face two of the most disconnective and severe obstacles in resolving performance concerns and disciplinary steps The objectives of the study are to determine the relationship between Efficiency of the Incentive System, Rewards Incentives, Moral Incentives, Promotion Incentives and Financial Incentives and employee’s performance in Malaysian Public Universities. The data is collected using online questionnaire over 387 employees of three universities namely UPM, UM and UKM and analysed using multiple regression analysis to test the research hypotheses of this study. The proposed model indicated 90% of variance of the employee’s performance. The results indicate a significant relationship between Efficiency of the Incentive System, Rewards Incentives, Moral Incentives, Promotion Incentives, Financial Incentives and employee’s performance in Malaysian Public Universities.