Financial And Non-Financial Motivation

In modern society, business markets are receiving more competitive. As a consequence, firms in the markets make an effort to use more effective ways to attain their goals, which include earning more income and extending market share. Inspiration, which is a way that stimulates employees to try to work, is a possible method to help firms to reach their targets. According to Tutor2U (n. d. a), if personnel are determined well, the business will get better productivity as well as increased product quality, and earn good reputation. Hence, a company ought to spend time and effort in thinking the ultimate way to stimulate employees, and there are a great number of different thoughts about it, including financial drive and non-financial inspiration. These two ways of motivation focus on different varieties of employees and meet different needs of employees. Furthermore, both of both actions have their advantages as well as down sides. Therefore, the business should use these two methods along to encourage employees to work harder or worse, and make production good or bad.

Different people have different needs to work, so matching to specific conditions, a business should use different solutions to motivate its individuals. Hall et al. (2008) state that Maslow concluded a theory that there are five degrees of individuals needs which employees need to have fulfilled at the job, and they're physical, safety, cultural, esteem and self actualization. A worker would be determined by the higher need, only one time a lower degree of need has been fully satisfied (Tutor2U, n. d. b). For example, a person, who does not have any money and it is dying of cravings for food and thirst, may think about basic wage initially instead of job security and esteem from others. A small business ought to offer different collections of incentives from staff member to worker, because workers are not all motivated in the same way. Regarding to Hall et al. (2008), McGregor also recommended two ideas to clarify why people have the will to work. Theory X assumes some employees are encouraged by money, while theory Y assumes other employees are determined by many other factors. For example, because of the little amount of wage, lower paid staff, who include blue collar individuals, have a tendency to be ready to work overtime to earn higher pay. However, for the better paid employees, including white collar workers, salary is not the only real important factor for them. They could pay more attention to other areas of work, such as colleagues, recognition and advertising. Consequently, a business should take different procedures aiming at different sorts of employees to be able to meet all their needs and make income.

Financial determination, which is related to "a fair day's pay for a good day's work", has both its talents and weaknesses. Money is necessary for everybody, specifically for the poor who have a strong desire to earn more money so as to earn a living. Hence, the specific procedure that motivates employees using money could be a good way to boost performance of workers as well as efficiency. On the other hand, financial motivation may also cause some problems too, such as quality and operating problems. Hall et al. (2008) list some possible ways of financial desire, including part rates, fringe benefits, performance related pay and profit posting. Each method has different positives and negatives to motivate workers. A good example is piece-rate pay, which is recommended by Taylor, it is the wage that is paid to employees by the amount of products they make in a certain period of time (Hoddersamplepages, n. d. ). Personnel would work harder to earn more, because the ones who produce more could get higher pay. It might be best for increasing the acceleration of work therefore production. Nevertheless, part rates tend to make employees dash work, so lead to some quality problems, and additional influence the reputation of the business. Another solution is fringe benefit, which is the excess money that employees acquire in addition with their normal wage or salary, such as a company car, free use of a residence as well as private medical health insurance (Tutor2U, n. d. c). It can benefit satisfy the sociable needs of employees and make sure they are faithful to the firm. At Google for example, it offers free meals for employees to motivate them to be more faithful and make gains for the business (Hall et al. , 2008). However, Tutor2U (n. d. c) also points out that fringe benefits could be difficult for the firm to use because of increasing costs that are used by individuals. Therefore, there are some obvious benefits and drawbacks of financial determined methods.

Owing to the problems of financial incentives, organizations also needs to use non-financial incentives to encourage individuals. The very much like financial drive, non-financial motivation hasn't only many significant benefits but also some disadvantages too. Corresponding to Tutor2U (n. d. , b), Mayo reported that the individual relations strategy is the process for retaining and growing people in organizations but not using techniques involve money. A good example is Tejas Securities Group. "The Chairman's Cup" is a gold chalice, which is awarded by the firm each month. It's the honor to the workers who contribute to the success of the complete firm, so it inspires employees to work harder toward success (Searchwarp, n. d. ). Non-financial incentives include job enrichment, empowerment and team working (Hall et al. , 2008). Job enrichment means presenting workers new pieces of interesting and challenging tasks, which is recognized by Herzberg (Hr-scorecard-metrics, 2010). It provides employees more chances to build up their functions and make them gain a solid sense of success. Alternatively, Tutor2U (n. d. d) accounts that job enrichment might create some expensive mistakes if the work is too complex for employees or they do not possess the correct skill level. For empowerment, it gives official power to staff to make decisions and control their own activities (Hall et al. , 2008). For instance, employees can set up how to use their time and how to achieve the tasks by themselves. The advantages of empowerment are significant, one which is making employees feel absolve to maximize suitable options for themselves. The cons are obvious as well. Hall et al. (2008) explain employees might get more use the same pay, so they may be not prepared to do it. Furthermore, empowerment may increase the costs that relate with the business, including the costs of changing the work environment and training the workers (Hall, et al. , 2008). If the employees make incorrect decisions, it tends to have bad effects on the whole business. Because of this, both the advantages and weaknesses of non-financial incentives are present.

To sum up, relating to Maslow's hierarchy of needs as well as McGregor's theory X and theory Y, different personnel may have different needs to be found through determination. On the main one side, either financial desire or non-financial motivation pays to to encourage employees. On the other hand, both of the techniques have their drawbacks as well. As far as I am concerned, both of these methods are both beneficial for a company to motivate its employees, improve efficiency, then earn more revenue and achieve the business enterprise objectives. Thus, a business ought to combine these two methods, and utilize them together reasonably. The business enterprise should also take benefit of both financial as well as non-financial drive, and try to avoid some needless problems depending on specific needs of employees and real conditions of work.

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