Organizational Development: Motivation through financial and non-financial incentives

Thèmes abordés

Organizational Development: Motivation through financial and non-financial incentives Maslow herzberg ERG theory Alderfer Vroom's expectancy theory Adam's equity

Résumé du document

Nowadays, salary and non-financial incentives constitute part of the methods that companies and managers use to motivate people. Through the study of different theories of motivation and needs, we explain the most important catalysts of motivational behavior. There are no doubts that all employees have different needs to satisfy in order to be motivated at work. His satisfaction being a source of motivation, it is important to answer his needs and recognize what he gives to his company in terms of time and performance.

That is why financial and non-financial incentives are key points to motivate employees in their daily work. Besides, salary is definitely something important for people because it determines a dedicated standard of living as well as a contribution in exchange of efforts made by employees. However, above all, people are looking for more and more pleasant working conditions and social relationships with their supervisors and collaborators. As a result, managers must define motivators through other methods such as an appropriate management style, internal communication, participative decision-making process, etc.

If motivation is quite personal, it rests with managers to inspire and maintain motivation amongst employees. There are no doubts that motivational strategies were more dedicated to high potential people, but today, we have understood that all hierarchical levels of companies are accounted for even if top managers are still the privileged ones.

That is why employees are not afraid to get various professional experiences or training in order to get a fair remuneration compared to what they bring to their companies. But money is definitely not the only factor that motivates people to work efficiently. Thus, this paper aims at implementing several motivational strategies that can be used to motivate employees at work such as financial and non-financial incentives.

Extraits

[...] And no doubts that a motivated manager is not necessarily able to motivate his employees. That is why, a manager should be able to have a range of qualities that are indispensable to motivate people. According to http://www.journaldunet.com/management/dossiers/040123motivation/conseils.sh tml, communication in a group is the bottom line to set up a motivational strategy. In fact, all managers have to communicate a lot with their staff to implement a good work atmosphere, clear information and long-term relationships. Communication has to be embraced on a daily basis, so that exchanges between collaborators are facilitated and natural. [...]

[...] This functioning leads to an internal reorganization of the initial needs. The following parts explain the different theories about motivation. Maslow's hierarchy of needs For Maslow, individuals act according to a series of needs. These needs are organized into a hierarchy of levels. According to http://www.edpsycinteractive.org/topics/regsys/maslow.html, when these needs are satisfied, needs of superior levels appear. Therefore, we can distinguish several levels that can be represented by a pyramid. Source : http://www.colinchristianson.com/wp-content/uploads/2009/08/800px- maslows_hierarchy_of_needssvg.png According to http://www.netmba.com/mgmt/ob/motivation/maslow/, the physiological needs represent the need to protect ourselves against the natural elements, against the lack of food, sleep, rest, etc. [...]

[...] The needs of belonging represents the needs to receive information and understand, to express opinions and to be listened, to be connected by establishing exchanges and relations, to work in group, to be an active element of any network, etc. According to the same source, the needs of self-esteem and respect represent the knowledge of our own values, our goals but also to consider ourselves, to trust in our skills and to be autonomous. Besides, this level involves having influence, responsibilities, authority and power as well as to be considered by others. [...]

[...] The persuasive management style is based on the fact that the manager imposes the way of doing to his staff while explaining the advantages of doing this way. He has to persuade his collaborators to apply this method. It is obvious that this management style is useful only if the manager is charismatic and if employees have difficulties to express themselves. The participative management style is more based on listening that enable to elaborate common solutions. Thus, the manager acts more as a intermediary or arbitrator. This management style is effective if the manager listens to his collaborators and if they are experienced. [...]

[...] That is why, financial and non-financial incentives are key points to motivate employees in their daily work. Besides, salary is definitely something important for people because it determines a dedicated standard of living as well as a contribution in exchange of efforts made by employees. However, above all, people are looking for more and more pleasant working conditions and social relationships with their supervisors and collaborators. As a result, managers must define motivators through other methods such as an appropriate management style, an internal communication, a participative decision-making process, etc. [...]