The effect of incentives on the employee performance in Kampala Serena Hotel, the objectives of the study; The importance of various incentives schemes in practice, to establish the level of employee performance and the relationship between incentive schemes and employees’ performance. It also covers the review of the studies done which are relevant to the study, the literature review of the incentive schemes and employee performance and the relationship between incentive schemes and employee performance and also the summary and the conclusion which was got from text books, newspapers, internet, magazines and other many publications. It also covered the various methods used to collect and analyze data, the research design was both qualitative and purposive, the study population and sample size population was 80 respondents, methods of sampling used include simple random, sources of data collection were both primary and secondary, primary was obtained using Questionnaires while secondary was got from magazines, text books, newspapers, internet and journals, ethical issues were also considered. The data was presented using tables, analyzed using Percentage and discussed on the findings, it covered response rate, background of the respondents and empirical results were also revolved basing on the types of incentive schemes and the level of employee performance, the relationship was also covered whereby (x) variable represented the independent (incentive schemes), (y) variable represented the dependent variable (employee performance) using spearman’ rank correlation coefficient using the method r = 1- where the result was positive (perfect). The summary was based on the summarized results of the findings based on the background characteristics and study characteristics, recommendations were based on the findings of the study. It also included conclusions on the findings, limitations of the study and finally areas of further research were also included.

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