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Impact of non financial rewards on motivation

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the study is based on the impact of non financial rewards like job recognition,job enlargement on employees motivation and performance

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Impact of non financial rewards on motivation

  1. 1. PRESENTED BY VINEETA VATSA ANJALI PANDEY
  2. 2.  INTRODUCTION  RESEARCH PROBLEM  RESEARCH OBJECTIVES  RESEARCH METHODOLOGY  ANALYSIS  FINDINGS  RECOMMENDATION 2
  3. 3. In any organisation employee motivation is the key factor for organizational performance. Companies are spending huge amounts of money on their reward programs which aim to motivate, retain, commit and attract new employees but fails to motivate the employees. The research is conducted to measure the impact of non financial rewards on employees motivation. 3
  4. 4. Motivation is the word derived from the word ’motive’ which means needs, desires, wants or drives within the individuals. It is the process of stimulating people to actions to accomplish the goals. Motivation is defined as the process that initiates, guides, and maintains goal- oriented behaviour. In the work goal context the psychological factors stimulating the people’s behaviour can be  Desire for money  Success  Recognition  Job-satisfaction  Team work, etc SOURCE- http://study.com/academy/lesson/what-is-motivation-in- management-definition-process-types.html 4
  5. 5.  "The term motivation refers to factors that activate, direct, and sustain goal-directed behaviour... Motives are the "whys" of behaviour - the needs or wants that drive behaviour and explain what we do. We don't actually observe a motive; rather, we infer that one exists based on the behaviour we observe." ( Nevid, 2013) 5
  6. 6.  The motivational factors that motivate a person to work and which can be used to enhance their performance can be classified into two categories:  Financial Motivators  Non-Financial Motivators SOURCE- (http://www.yourarticlelibrary.com/hrm/incentives/incentivestypesfinanciala ndnonfinancialincentivesexplained/35360/ 8/) 6
  7. 7.  Any benefit an employee receives from an employer or job that is above and beyond the compensation package (salary, insurance, etc) for the specific purpose of attracting to the company as well as retaining and motivating the employees. The non financial motivators include:-  Job Enrichment  Job enlargement  Communication  Workers participation in management decision  Training 7
  8. 8.  Low costs;  It has a stronger effect and remains longer embedded in the mind of the employee as it appeals in it's emotional state;  Can be applied to a longer period of time;  If it's interrupted it doesn't generate resentments among those targeted;  Promotes membership in that team;  Raises the employee's fidelity for the organization 8
  9. 9.  To better understand employees attitudes and motivation, In 1959, Frederick Herzberg, a behavioural scientist proposed a two-factor theory or the motivator-hygiene theory.  According to Herzberg, there are some job factors that result in satisfaction while there are other job factors that prevent dissatisfaction. According to Herzberg, the opposite of “Satisfaction” is “No satisfaction” and the opposite of “Dissatisfaction” is “No Dissatisfaction”. SOURCE- http://psychology.about.com/od/mindex/g/motivation- definition.html 9
  10. 10. 10
  11. 11.  The Two-Factor theory implies that the managers must stress upon guaranteeing the adequacy of the hygiene factors to avoid employee dissatisfaction.  Also, the managers must make sure that the work is stimulating and rewarding so that the employees are motivated to work and perform harder and better.  This theory emphasize upon job-enrichment so as to motivate the employees. The job must utilize the employee’s skills and competencies to the maximum. Focusing on the motivational factors can improve work-quality. 11
  12. 12.  The two-factor theory overlooks situational variables.  Herzberg assumed a correlation between satisfaction and productivity. But the research conducted by Herzberg stressed upon satisfaction and ignored productivity.  The theory’s reliability is uncertain. Analysis has to be made by the raters. The raters may spoil the findings by analyzing same response in different manner.  No comprehensive measure of satisfaction was used. An employee may find his job acceptable despite the fact that he may hate/object part of his job.  The two factor theory is not free from bias as it is based on the natural reaction of employees when they are enquired the sources of satisfaction and dissatisfaction at work. 12
  13. 13.  This research is conducted to know how Organizations are using non-monetary rewards to motivate their employees.  Is non monetary rewards helps to improve employees motivation. 13
  14. 14.  The objective of our study is to find out for the company that whether non financial rewards are motivating the youth employees and measuring the impact on employees. 14
  15. 15.  The hypothesis of the study are-  H1: Better training opportunities leads to higher level of motivation.  H2: Job enlargement has positive effect on employees motivation.  H3: Providing fair recognition on performance to the employees motivate the employees.  H4: Communication with employees guides in decision making.  H5:Motivation factors has more impact on employees performance than hygiene factors. 15
  16. 16. GEOGRAPHICAL AREA  The study covers the area of BIHAR and JHARKHAND. RESEARCH DESIGN  Exploratory and descriptive SAMPLING TECHNIQUE  Convenience sampling 16
  17. 17. SAMPLE SIZE-20 STATISTICAL TOOLS  Correlation  Pie Charts 17
  18. 18. PRIMARY DATA  Primary data is collected through Questionnaires from different employees and telephonic interview with various employees working in different sectors. SECONDARY DATA  Secondary data is collected through different sites available on the internet and we have also referred to various journals, newspapers and magazine. 18
  19. 19. 100% 0% YES 19 100% employees like to be recognized
  20. 20. 100% 0% YES NO 100% employees think that they should be rewarded 20
  21. 21. 5% 45% 25% 25% SA A N D SD 21 45% employees agree with this
  22. 22. 30% 20% 10% 17% 13% 10% JOB E JOB ENG COMM TRAINING PATICIPATE NONE 22 Job enrich is mostly used followed by job engagement
  23. 23. 45% 15% 15% 25% YES D NO MAY BE YES C 23 45% respondents agree that rewards are encouraging
  24. 24. 19% 19% 18% 20% 24% A B C D E 24 Job responsibility highly satisfy the employees
  25. 25. 19% 24% 20% 19% 18% A B C D E 25 24% employees like to be supervised
  26. 26. 10% 10% 5% 75% A B C D 26 75% employee are highly motivated
  27. 27. 90% 10% YES NO 27 90% employees agree with this
  28. 28. 20% 15% 65% MORE F MORE NF COMBINATION 28 65% want combination of both finan. and non-finan
  29. 29. 10% 75% 10% 5% 0% SA A N D SD 29 75% agree with this
  30. 30. 75% 5% 15% 5% YES ALWAYS NEVER CERT,NOT 30
  31. 31.  45% employees are motivated more through non-financial incentives.  Training as a non financial tool has less effect than financial tools.  100% employees liked to be recognized at the work place and it has positive relation with employee motivation.  Only 10% employees does not have positive effect of non financial rewards on performance.  Opportunity to achieve and advancement has negative correlation(-0.198) with security and company policy and administration.  Other motivating factors are positively co-related with employees performance. 31
  32. 32. Given the context and results of this study, it is safe to say that there is a place for non-financial rewards.  It is recommended that organizations continually review their reward practices to ensure alignment with the potential impact of changes in the macro environment and to make allowance for different requirements based on the demographic factors of their employees.  The fact that most of the employees differed in their opinions , some rewards may not satisfy them therefore, an employer should diversify their rewards to include the different demographics of his employees . 32
  33. 33.  Non financial factors (Rewards) motivate the employee performance and increase productivity of organisation.  Herzberg motivation theory has high impact on the employees motivation.  Non financial rewards has equal importance as that of financial rewards. 33
  34. 34.  http://www.yourarticlelibrary.com/hrm/incentives/incentivestypesfinanciala ndnonfinancialincentivesexplained/35360/ 8/.  Search.proquest.com  http://psychology.about.com/od/mindex/g/motivation-definition.html  http://study.com/academy/lesson/what-is-motivation-in-management- definition- process-types.html  http://www.yourarticlelibrary.com/motivation/monetary-and-non- monetary-factors-of-motivation/32391/  http://www.businessdictionary.com/definition/research-methodology.html  http://www.businessdictionary.com/definition/research-design.html 34

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