exceeding certain sales goals. When the employee exceeds his goal, he can receive an additional amount to his salary; this will motivate them to strive to achieve more (Maund, 2001). Research has proven that when human beings are appreciated and praised, they tend to improve their performance. This is another way that an organization can apply rewards to improve its performance. Praise could be expressed in the organization's newsletter or at meetings. When managers take the time to meet and recognize employees who have performed well, it plays an important role in improving employee performance (Torrington & Hall, 2006). Organizations should reward their employees more often. This significantly improves performance compared to receiving rewards perhaps only once a year. Indeed, frequent rewards are easily linked to performance. (Thomson and Rampton, 2003). Performance measurement is of great importance to an incentive plan because it communicates the importance of established organizational goals. “What is measured and rewarded attracts attention” (Bohlander et al, 2001). In the discipline of human resource management, different authors suggest the following indicators to measure employee performance and they include: quality which can be measured by the percentage of work that must be redone or is rejected; Customer satisfaction which can be measured by the number of royal customers and customer reviews. Additionally, punctuality, measured in terms of how quickly the work is completed by the employee when assigned a certain task; absenteeism/lateness observed when employees are absent from work; and the achievement of objectives measured when an employee has exceeded the targets he had set, he is then considered to have performed well to achieve the objectives (Hakala, 2008; Armstrong,