Good morning everyone. Today we’re going to talk about something that keeps every business running successfully, and that is motivation in practice. No matter how skilled or talented employees are, if they are not motivated, they won’t perform at their best. That is why managers use different ways to keep people motivated. Some of these methods involve money, while others focus on personal growth, recognition, and job satisfaction. Let’s look at both types: financial and non-financial motivators.
Let’s start with financial motivators. These are money-based rewards that encourage people to work harder or perform better. The first one is time-based pay, which means employees are paid for the hours they work. For example, a factory worker may earn Rs. 800 per day. It is easy to manage, but it doesn’t necessarily push people to be more productive.
Next is salary, which is a fixed monthly income. For instance, an office worker earning Rs. 60,000 per month knows they will receive that amount regularly, even if they work different hours. It gives security and stability, but it does not always reward extra effort.
Another method is piece rate pay, where workers are paid according to how many items they produce. Imagine a tailor who earns Rs. 50 for every shirt they sew. This motivates people to produce more, but sometimes it can reduce quality or cause stress.
Then we have commission, which is common in sales jobs. A car salesperson, for example, might earn 5 percent commission on every sale they make. This encourages them to sell more, but it can sometimes lead to overly aggressive selling.
Bonuses are another financial motivator. These are one-time rewards given for meeting certain targets or performing well. For example, a company might offer an end-of-year bonus to employees who meet their goals. This can be very motivating, but if bonuses are not distributed fairly, they can cause jealousy among staff.
We also have profit sharing, where employees receive a portion of the company’s profits. A cooperative, for instance, might give 10 percent of its annual profits to workers. This helps employees feel more connected to the success of the business.
Performance-related pay is another approach. Here, pay or bonuses are linked to how well a person performs their job. For example, teachers might receive bonuses if their students achieve high results. This builds personal responsibility but can sometimes discourage teamwork.
Lastly, fringe benefits, also called perks, are non-cash financial rewards such as company cars, free meals, or health insurance. For example, a manager might receive a fuel allowance and a company mobile phone. These benefits make jobs more attractive but can be expensive for the business.
So, financial motivators are all about money, rewards, and tangible benefits that encourage employees to perform better. But as you know, money alone is not always enough. People also want recognition, growth, and a sense of purpose. That’s where non-financial motivators come in.
Non-financial motivators focus on what makes people feel valued and fulfilled at work. The first one is training and development. When companies help employees improve their skills, they feel more confident and motivated. For example, giving IT training to office staff helps them perform better and feel valued.
Next is promotion. When employees have a clear career path, like moving from a team leader to a supervisor, they feel encouraged to work hard and stay loyal to the company.
Status is another motivator. Giving someone a title like “Senior Analyst” or a private office can make them feel respected and appreciated.
Sometimes, companies improve motivation by changing how jobs are designed. This is called job redesign. It can include job enlargement, where employees do a wider range of tasks; job rotation, where they switch roles to learn new skills; and job enrichment, where they are given more responsibility.
Team working is another great motivator. People enjoy being part of a group where they can collaborate and share ideas.
Then we have empowerment, which means giving employees the power to make decisions.
Participation is about involving employees in decisions that affect them. For example, a business might ask staff for input when designing new uniforms. When people feel their opinions matter, their motivation increases.
Finally, there is job enrichment, which involves giving employees more meaningful or challenging tasks.
Another effective approach to motivation is employee participation in management. This means allowing employees to take part in decision-making through things like quality circles, suggestion schemes, or works councils. For example, a factory might hold a weekly meeting where workers suggest ways to improve safety or reduce waste. This gives employees a voice and a sense of ownership in the organisation.
So, to wrap up, motivation in practice is about using the right balance of financial and non-financial rewards. Money is important for meeting basic needs and rewarding performance, but things like recognition, empowerment, and opportunities for growth build long-term satisfaction and commitment.
