Frey Organics

Employee Motivation through Monetary Terms

What research shows us is that a highly motivated employee proves out to be the best when it comes to achieving organizational goals. This becomes significantly important for the management of the organization that the employees should remain motivated. The question that arises here is that what factors motivate employees, and is there a single motivational tool that can be used for every employee (Luthans, 2001). 

In this regard it is very helpful in distinguishing between the different types of employees that are present in an organization. There are different people in an organization all with different skill sets and different types of aspirations. Everyone has different preferences and different goals in life therefore their preferences regarding monetary incentive are also different (Islam, 2008).

After reaching this we can identify that there are two types of factors that plays a major role in employee motivation. One of them is the extrinsic motivational factors or in other words external incentives.  These types of people are mainly driven by external benefits and they are only interested in making more and more money (Frey, 2002). 

While most of the managers of this era believes that money is the single most important element of employee motivation , experts believe that the most motivating rewards comprises of both the monetary benefits and nonmonetary benefits (McIlroy, 2004).

In this regard the importance of informal recognition cannot be ignored. By informal recognition we mean acknowledging an employee’s good. This does not necessarily means rewarding them with some monetary item infact just a pat on the back, or employee’s involvement in decision making, asking about their opinion, giving them authority to do their jobs in their domain, supporting them when they are not performing quiet up to the mark, calling them by their names and etc, all these plays a vital role in employee motivation as a sense of ownership is developed in the employee and this feeling leads them towards giving their best for the organization (Harvard Business School Press, 2005).     

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Frey Hard Surface & Organic Modeling

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