Abstract
Our research paper scrutinizes the effect of incentives and organizational performance for the teachersworking in Pakistan universities. Incentives are categorized into two categories: financial and moral incentives which are independent variables. Organization performance consists of three dimensions: customer satisfaction, internal business process and learning & growth. These are treated as dependent variables. In this paper, we find out the relationship between organizational performance and incentives.The sample of the research consists of four universities working in Punjab Pakistan. The questionnaire was used as instrument to collect data from the faculty members of the universities. SPSS was used to generate findings of the study. The Descriptive Statistics, Correlation, Regression analysis and T-test was used to find out relationship of incentives and organizational performance. The main findingsof the research show that incentives and organizational performance had significant positive correlation. Furthermore, Regression was applied to find out the change in organizational performance due to incentives. Moreover, independent T-test was used to find out difference of Gender on incentives and organizational performance. Incentives had significant effect on the performance of males and females.