MOTIVATION IN

PRACTICE

AJITH KUMAR

Motivation is the will to do work.

It comes from the enjoyment of

work or from a desire to achieve
certain goals/motives.
Practically employees can be

motivated in two ways- Financial

and Non-financial methods

Why People Work?

To earn money
For a sense of achievement or job-

satisfaction
To belong to a group
For a sense of security
To obtain a feeling of self worth

Financial Incentives
Factors

Explanation

Wages

Normally paid per hour and

received at the end of the week

Salaries

Normally an annual salary paid at

the end of each month

Bonus
System

Paid on the achievement of certain

targets or based on certain
performance criteria

Commission

Workers are some times paid

according to the number of

Factors

Explanation

Profit
Sharing

A system where by employees

receive a proportion of the
Company profits

Share
options

Sr. managers are given shares in

the Company instead of a bonus or
a profit sharing scheme

Fringe
benefits

Otherwise called perks are the

items which employees receive in
addition to their normal salary or
wages. Eg. Company car, private

Non-financial Incentives
Factors

Explanation

Empowerme Delegating power to employees so

nt
that they can make their own
decisions
Praise

Recognition for good work

Promotion

Promoting employees to a position

of higher responsibility

Work
Providing a safe, clean
environment comfortable work environment to
work in

Factors
Job
enrichment

Explanation
Giving employees more
challenging and interesting tasks

Giving employees more tasks of

Job
enlargement a similar level of complexity
Job rotation Employees are trained in a
number of different tasks so that
they can be rotated between
different tasks in their work
Offers employees an opportunity
Team
to meet their social needs and
working
often accompanied by some form
of empowerment for team.

Profit Sharing
Share
Ownership
Advantages
Creates a direct link
between pay and
performance
Can improve
employees loyalty
to the company
Less resistance to
change if the profit
may increase with
the change

Employees may feel

the ownership of the

Company which makes
them more productive
A feeling of security
and belongingness to
the Company retains
the staff

Job enrichment
Gives workers more

of higher level tasks,

developing a sense
of responsibility
Motivates them by
giving a chance to
further themselves

Job enlargement
Giving workers more

chance to do jobs of a
similar nature
Job rotation can be a
way of job
enlargement

Reasons for Pay

differentials
Mainly due to labour Supply and

Demand
People with skills that are in
demand but are in short supply
get paid more
Cost of living varies between
regions

THANK YOU