2. INTRODUCTION
Motivation is an important function of every manager. It
deals with actuating the people to work for the
accomplishment of objectives of the organization. Issuance
of well conceived instructions and orders does not mean
that they will be followed. A manager has to make
appropriate use of motivation to enthuse the employees to
follow them. Effective motivation succeeds in having an
order accepted and also in gaining a determination to see
that it is executed efficiently and effectively. In order to
motivate the employees, the management has to understand
their needs and satisfy them by providing financial and non-
financial incentives.
3. DEFINITON OF MOTIVATION
A few definitions by some of the prominent writers on the
subject are given below:
(1) “Motivation means a process of stimulating people to
action to accomplish desired goals”.
W.G. Scott
(2) “Motivation can be defined as a willingness to expend
energy to achieve a goal or a reward”.
Dale S. Beach
(3) “Motivation is the process of attempting to influence
others to do their work through the possibility of getting a
reward”.
Edwin, B. Flippo
Thus motivation is a process which inspires the human
efforts of an organization to perform their duties in the best
possible manner so that the pre-determined objectives of the
enterprise may be achieved.
4. NATURE OF MOTIVATION
The characteristics of motivation may be described as
under:
1. Incentive
Motivation is the incentive of employees. It is a
personal and natural feeling of the mind of the employees.
In fact an individual is inspired to make his efforts to
satisfy the needs of his life.
2. Unending Process
Motivation is an unending process. Satisfaction of one
need leads to the feeling of another one and this process
never ends.
3. Psychological Concept
Motivation is a psychological concept. It develops the
mental power of an individual and motivate him to do more
and better.
5. 4. Power to Act
Motivation is a power to act. It inspires an individual to
work. Feeling of a needy creates tension and a person wants
to work to satisfy his need.
5. Increase in Efficiency
Motivation increases the quantity and the quality of
production.
6. Increase in Morale
Morale is a group feeling. Motivation motivates the
employees to work with the cooperation of others. Thus the
motivation is helpful in increasing the morale of the
employees.
6. OBJECTIVES OF MOTIVATION
The objectives of motivation may be described as under:
1. To motivate the employees to do more work.
2. To satisfy the economic, social and psychological needs
of the employees.
3. To develop human relations in the enterprise.
4. To increase the morale of employees.
5. To increase the efficiency of employees.
6. To get the cooperation of the employee.
7. To establish sweet relations between labour and capital.
8. To get the maximum exploitation of human resources.
9. To achieve the objects of enterprise.
HUMAN NEEDS
Needs are staring point in motivation. If the needs of the
workers are identified and satisfied, they will feel happy and show
higher productivity. However, the needs of people are large in
number and some of the needs are more complex than others. So
it is not easy to satisfy all the needs of the workers at the same
time.
7. Types of Needs (Maslow’s Need Hierachy Theory)
Abraham Maslow, an eminent US psychologist, offered a
general theory of motivation, called “Need hierarchy theory”.
These are briefly discussed below:
1. Physical Needs
These needs relate to the survival and maintenance of
human life. They include such things as food, clothing,
shelter, air water and other necessaries of life.
2. Safety Needs
These needs are also important for the most of the
people. Every body wants job security, protection against
danger, safety of property etc.
3. Social Needs
Man is a social being. He is therefore, interested in
conversation, sociability, exchange of feelings,
companionship, recognition etc.
8. 4. Esteem and Status Needs
These needs embrace such things of self confidence,
independence, achievement, competence, knowledge,
initiative and success. These needs are concerned with
prestige and respect of the individual.
5. Self-Fulfillment Needs
These are the needs of the highest order. They are
generally found in persons whose first four needs have
already been fulfilled. They are concerned with achieving
what a person consider to be his mission in life.
INCENTIVE
MEANING OF INCENTIVE
The term incentive may be defined as follows:
a) An incentive is something which stimulates a person
towards some goal.
b) An incentive is something which induces an individual to
response in a desired manner.
9. Need of Incentives
Man is a wanting animal. He continues to want something or
other. He is never fully satisfied. If one need is satisfied, the
other need arises. In order to motivate the employees, the
management should try to satisfy their needs. For this purpose,
various kinds of incentives may be provided to employees.
METHODS OF MOTIVATION
These are discussed below:
1) Positive and Negative Incentives
Positive incentives
Positive incentives are the incentives which motivate the
employees to do their best and to produces more and better
quality by providing them more wages and salaries and bonus
etc.
Negative incentives
Negative incentives are the incentives which compel the
employees of the enterprise to do more work, because of the
fear of punishment or penalty. These incentives include
termination from services, suspension punishment, penalty etc.
10. 2) Individual and Collective Incentives
Individual incentives
Individual incentives mean the incentives which are offered
to any individual. These incentives are offered to those
employees who contribute their special efforts and who cause
extra benefit by their efforts to the enterprise. These incentives
may be monetary as well as non-monetary.
Collective incentives
Collective incentives are the incentives which are offered
collectively to a group of workers. The aim of these incentives
is to motivate the whole group. These incentives may be
monetary incentives and non-monetary incentives.
3) Monetary or Financial Incentives:
Monetary incentives are associated with the monetary
financial benefits to the employees. These benefits can be
expressed in terms of money. Financial incentives are
commonly used in modern organizations to motivate the
employees to increase their productivity. These include wages
and salaries, bonus, insurance, medical allowances, housing,
facilities and retirement benefits. They are paid in terms of
money.
11. Role of Monetary Incentives
Money is a real motivating factor when the psychological
(food, clothing and shelter) needs of the workers have not
been satisfied. Money helps in satisfying the social needs of
the workers to some extent because money is often
recognized as a basis of status, respect and power.
People in higher positions are not motivated by monetary
incentives. They may be motivated by money only if the
increase is large enough to increase their standard of living
and status in the society. But in case of employees at the
operative levels, money certainly plays a significant role in
motivating them because their basic needs have not been
fulfilled.
12. 1- Non-monetary Incentives
Financial incentives do not work for ever to motivate the
people at work. The employees do not always run after
money as it cannot satisfy all their needs. They want status
and recognition in the society. They want to satisfy their
egoistic needs and achieve something in their lives. Non-
monetary incentives cannot be expressed in terms of money.
They include the following incentives:
a. Competition
Competition is a kind of non-financial incentives. If there
is a healthy competition among the individual employees, it
will lead them to achieve their personal goals in a better way.
b. Job Security
Generally, workers prefer security of job. They may not
prefer job with higher wages or salaries which do not carry
security. Job security is an important non-financial incentive
for most of the workers.
13. c. Praise
Praise satisfies one’s ago needs. Some times, praise is
more effective than any financial incentive.
d. Opportunity for Growth
If the employees are provided the opportunity for their
advancement and growth and to develop their personality, they
feel very much satisfied and become more committed to the
organization goals.
e. Group Recognition
Group incentives are more powerful to motivate the
employees than the individual incentives. When the reputation
of the group is at a stake, group members work with a team
spirit. They have high morale and their productivity increased.
f. Suggestion System
Suggestion system satisfied many needs of the employees.
Many organizations which use suggestion system make use of
cash awards for useful suggestions. They sometimes publish
the worker’s name with his photograph in the company’s
magazine. This motivates the employees to be in search for
something which may be of great use to the organization.
