Motivation is defined as the processes or drives that cause people to act in a certain way. Motivated employees results in improved efficieny, increased productivity and enhancement of quality. Thus, motivating the employees is of extreme significance in a business endeavour to achieve success and gain a competitive edge.
Business seek to motivate their employees by financial and non-financial factors.
Motivation depends on a persons interest, experiences, wants and attitudes towards life.hence, different people are motivated by different factors. In todays world everybody needs money to satisfy their materialistic needs and wants.
Money is also required for other puporses like medical treatment, children's education,etc. Moreover, money is also essential after retirement and for security. Thus, money can be seen as the only factor that motivates an employee. This is consistent with F.W. Taylors motivational theory. He believed that - 'a fair day's wage for a fair day's work i.e. a good salary for good performance is motivating.
However, his theory is based on research on workers which belong to the lower socio economic group. This group's major problem is scarcity of money. Thus, his theory is effective for motivating these people.
It is true that money is the pre-requisites for survival on this earth. Still, money can satisfy only the extrinsic needs. As it is said " Money can by everything but not internal happiness." Maslow, a theorist considers money as only a basic need and has it on the base of his pyramid of hierarchy of needs. He believes that as money - basic need is satisfied an employee needs higher order needs for motivation. His hierarchy of needs priortises self-actualisation consisting of recognition of work, responsibility etc. as higher order needs. Recognition of good work is the pivotal pillar in motivating employees. Recognition of work brings an internal...