Economics, Strategic and Financial Management Blog

There are many reasons why people work for an organization? It is undeniable that money, or other financial rewards, play a key role in motivating people in the workplace. It is widely accepted that poor or low pay acts as a de-motivator. Someone who feels undervalued or under-paid may soon leave to find better-paid employment. There is a wide variety of ways in which a business can offer money (or “financial rewards”) as part of the “ pay package ”, including: Salaries: fixed amounts per month or year for performing a role; these are common for most managerial positions. Benefits: very common in businesses of all kinds; these include staff discounts, contributions to travel costs, staff uniforms etc. Time-rate pay: pay based on time worked; very common in small businesses where employees are paid per hour. Piece-rate pay:  pay per item produced – becoming less common   Commission: payment based on the value of sales achieved.   performance-related pay:  e.g. bonus

Motivation plays a critical role in achieving goals and business objectives. It affects performance both for companies operating a team-based environment and those whose employees work independently. Making sure each employee’s workplace goals and values align with the organization’s mission and vision is important for creating and maintaining a high level of motivation. This can lead to higher productivity, improved work quality and financial gain across all departments. Motivation has become increasingly important for organizations and companies of all sizes that want to reach their organizational objectives in a competitive marketplace. Top performers consistently provide high-quality work; maintain a high level of productivity and overcome obstacles or challenges . Helping all employees maintain a high level of motivation can help keep employees committed to working hard and contributing as much value as possible to the organization . Needs of motivation can be explained in t

Concept of Motivation Motivation   in management is the process through which managers build the desire to be productive and effective in their employees . Internal and  external factors that stimulate desire and  energy  in people to be continually interested and committed to a  job, role  or subject, or to make an effort to attain goal. There are many ways to motivate employees. Motivation  results  from the interaction of both conscious and unconscious  factors  such as the ·          Intensity of desire or need, ·          Incentive   or reward value   of the goal, and ·          Expectation  of the  individual .  Managers who want to encourage productivity should work to ensure that employees: ·          feel that the work they do has meaning or importance ·          believe that good work is rewarded ·          believe that they are treated fairly The motivational framework that best describes the way of developing a motivation with in human beings is as sh