4.Can motivation be increased? Discuss various factors influencing motivation.

6.Discuss the relative importance of financial and non-financial incentives in

Motivation .

Significance of Motivation:

Motivation involves getting the members of the group to pull weight effectively,
to give their loyalty to the group, to carry out properly the purpose of the
organization. The following results may be expected if the employees are
properly motivated.

1. The workforce will be better satisfied if the management provides them with

opportunities to fulfill their physiological and psychological needs. The workers

will cooperate voluntarily with the management and will contribute their
maximum towards the goals of the enterprise.

2. Workers will tend to be as efficient as possible by improving upon their skills

and

knowledge so that they are able to contribute to the progress of the

organization. This will also result in increased productivity.

3. The rates of labor’s turnover and absenteeism among the workers will be low.

4. There will be good human relations in the organization as friction among the
workers themselves and between the workers and the management will
decrease.

5. The number of complaints and grievances will come down. Accident will also
be low.

6. There will be increase in the quantity and quality of products. Wastage and
scrap will be less. Better quality of products will also increase the public image of
the business.

Motivational Factors. These factors are intrinsic in nature and are related to the
job. The motivational factors have a positive effect on job satisfaction and often
result in an increase in total output. Thus, these factors have a positive influence
on morale, satisfaction, efficiency and productivity. Herzberg concluded that six
factors motivate the employees :

1. Achievement

2. Advancement

3. Possibility of growth

4. Recognition
5. Work itself

6. Responsibility

Any increase in these factors will improve the level of satisfaction, thus, these
factors can beused for motivating the employees.

Based on his research, Herzberg stated that managers have hitherto been very
much concerned with hygiene factors. As a result they have not been able to
obtain the desired behaviour from the employees. In order to increase the
motivation, it is necessary to pay attention to the motivational factors. He further
concluded that today's motivational factors are tomorrow's hygiene factors.
Because once a need is satisfied, it stops influencing the behaviour. Further, one
person's hygiene may be another person's motivator, because motivation is also
influenced by the personality characteristics of individuals

. There are a variety of factors that can influence a person’s level of motivation;
some of these factors include

1. The level of pay and benefits,

2. The perceived fairness of promotion system within a company,

3. Quality of the working conditions,

4. Leadership and social relationships,

5. Employee recognition

6. Job security

7. career development opportunities etc.

Need for Incentives:

In order to motivate the employees, the management should try to satisfy their
needs. For this purpose, both financial and non financial incentives may be
used by the management to motivate the workers. Financial incentives or
motivators are those which are associated with money. They include wages and
salaries, fringe benefits, bonus, retirement benefits etc. Non financial motivators
are those which are not associated with monetary rewards. They include
intangible incentives like ego-satisfaction, self-actualization and responsibility.

INCENTIVES

Financial Incentives Non-financial incentives

- Wages and Salaries. - Competition

- Bonus - Group recognition

- Medical reimbursement - Job security

- Insurance - Praise

- Housing facility - Knowledge of result

- Retirement benefits. - Workers participation.

- Suggestion system.

- Opportunities for growth

Performance is considered to be a function of ability and motivation, thus:

· Job performance =f(ability)(motivation)

Ability in turn depends on education, experience and training and its

improvement is a slow and long process. On the other hand motivation can be
improved quickly. There are many options and an uninitiated manager may not
even know where to start

There are broadly seven strategies for motivation.

· Positive reinforcement / high expectations

· Effective discipline and punishment

· Treating people fairly

· Satisfying employees needs

· Setting work related goals

· Restructuring jobs

· Base rewards on job performance