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Financial motivation and non financial motivation business essay

Read this article to learn about Employee Motivation: Financial and Non-financial Techniques of Staff Motivation!

  • The status given to the job of an individual in the form of authority, responsibility, rewards, prestige, recognition etc;
  • After above actions device the techniques;
  • Financial and Non-financial Techniques of Staff Motivation!
  • Financial techniques refer to monetary rewards.

Regardless of which theory of employee motivation is followed, the research studies on motivation conclude that interesting work, appreciation, pay, good working conditions, and job security are important factors in helping to motivate. For enhancing motivation in your organization first study the following: After above actions device the techniques. Financial techniques refer to monetary rewards.

Incentives are nothing but the inducements provided to employees in order to motivate them.

Non Financial Incentives to Motivate Employees

There should be direct relationship between efforts and rewards, financial reward should be substantial in value and must be in parity with others. Money is not a prime motivator but this should not be regarded as a signal to reward employees poorly or unfairly. The financial incentives include: It includes basic pay, grade pay, and dearness allowance; travelling allowance, pay increments, etc.

Good pay and allowances help the organization to retain and attract capable persons. However, good pay and allowances need not motivate all the people, especially who are enjoying security of job in government organizations and those for whom corruption is a way of life. Incentive pay plans are meant to increase output, which can be measured quantitatively.

For incentive plan targets, the employees must have confidence that they can achieve the targets. It is a reward system in which team members earn bonus for increasing productivity or reduce wastages. It means sharing of profits with the employees by way of distribution of bonus.

Profit sharing plan has its shortcomings — one, that it has become a regular feature in government departments irrespective of performance and two, it may have no relation with individual efforts. Many companies use employee stock options plans to compensate, retain, and attract employees. Employees who are granted stock options hope to profit by exercising their options at a higher price than when they were granted.

In India, stock options have primarily been used as a retention tool for a more selective group of employees. It includes the accumulated provident fund, gratuity, leave encashment and pension. Non-financial incentives do not involve money payments.

These are also important in motivating employees as they bring in psychological and emotional satisfaction to them. These include so many techniques. People do work for money-but they work even more for meaning in their lives. In fact, they work to have fun. Some of the important non-financial incentives include: Nothing can motivate a worker, appointed temporarily, better than provision of job security.

Even if a temporary worker puts in greater efforts, lack of job security will always pose a threat. If such a worker is given job security, he will be more committed to the organization. Workers, who are dynamic in nature, do not show preference for routine jobs.

They financial motivation and non financial motivation business essay always ready to accept challenging assignments, challenge can be brought through mentoring, job redesigning — job enlargement and job enrichment.

Employee Motivation: Financial and Non-financial Techniques of Staff Motivation

Understand the capabilities of every individual in the organization and accordingly assign him work. It is important that the employer recognizes hard work. Even a word of appreciation from him would motivate the employees to maintain the same level of performance or do even better. Job titles do matter. Employees do show preference for certain designations.

Employee Motivation: Financial and Non-financial Techniques of Staff Motivation

A salesman, for example, would like to be designated as a sales executive and a sweeper to be Sanitary Inspector. There should never be a stagnation point for any employee during the prime time of his career.

The employer must always provide opportunities for his employees to perform well and move up in the hierarchy.

To stimulate an employee is his involvement in certain crucial decisions. The management should avoid unilateral decisions on such matters. The management can encourage healthy competition among the employees.

  • Leaders are always considered as role models;
  • For incentive plan targets, the employees must have confidence that they can achieve the targets.

This would, certainly, motivate them to prove their capabilities. The management can also rank the employees according to performance.

Such of those employees who have performed very well may be given merit certificates. By job rotation we mean that the employees will be exposed to different kinds of job.

This certainly would break the monotony of employees. For example, in a bank an employee may work in the Savings Bank Section for sometime after which he may be posted to the cash section.

Such a change not only motivates the employees to perform well but also prepares him to be versatile. Lead by Example — be passionate and energetic: Leaders should demonstrate the attitudes, values, actions, and mindsets that they want among their staff. Leaders are always considered as role models. Encourage the use of humour and creativity: Incorporating humour into the workplace can alleviate stress and create a more positive environment for everyone. Strategies to enhance humour include having a daily cartoon or joke sent to all staff via e-mail, encouraging laughter, finding fun in events that did not turn out as planned or expected etc.

Treat your people as human beings — neither inferior, nor superior: