Financial Motivation Methods
Salary:
A fixed amount of money is paid to an employee on a regular basis (usually monthly or bi-weekly). It provides financial stability and predictability, motivating employees to remain with the organization and perform their duties consistently.
Wages:
Payment is based on the number of hours worked or the quantity of work completed, typically paid weekly or hourly. Wages motivate employees by directly linking their effort to their earnings, encouraging them to work more hours or increase productivity.
Commission:
A payment is based on the amount of sales or business generated by an employee, usually a percentage of the sales. This method motivates employees, especially in sales roles, to increase their sales efforts and achieve higher sales targets.
Bonus:
An additional payment is given to employees on top of their regular salary or wages, often based on individual, team, or company performance. Bonuses serve as an incentive to exceed performance expectations and contribute to overall organizational success.
Performance-Related Pay (PRP)
A system where employees receive additional compensation based on their performance, usually measured against specific targets or objectives. PRP motivates employees to improve their performance and align their efforts with organizational goals.
Fringe Benefits:
Non-cash benefits are provided to employees in addition to their regular pay. Examples include health insurance, retirement plans, company cars, and paid vacations. Fringe benefits enhance the overall compensation package, improving job satisfaction and employee retention by addressing various needs and preferences.
Non-Financial Motivation Methods
Job Enrichment:
Involves enhancing a job by adding more meaningful tasks and giving employees more responsibility and autonomy. This method increases motivation by making work more interesting and fulfilling, allowing employees to use their skills and abilities more fully.
Example: Imagine you are working at a fast-food restaurant as a cashier. Job enrichment might involve adding new responsibilities like managing the cash register at the end of the day, helping with inventory management, or training new employees. These additional tasks make your job more interesting and give you a sense of ownership and responsibility.
Job Enlargement:
Expands an employee’s role by increasing the number and variety of tasks they perform. This method reduces monotony and boredom by providing employees with a broader range of activities, which can lead to increased job satisfaction and a sense of achievement.
Example: Suppose you work in a retail store, and your primary task is to stock shelves. Job enlargement might involve adding tasks such as assisting customers, operating the cash register, and setting up product displays. By doing a variety of tasks, your work becomes less monotonous, and you gain a broader range of skills.
Job Rotation:
Involves periodically moving employees between different jobs or tasks within the organization. This method keeps work fresh and interesting, helps employees develop new skills, and provides a broader understanding of the organization. It can also reduce job fatigue and increase engagement.
Example: Imagine you are employed at a manufacturing plant where you usually assemble parts. Job rotation might involve periodically moving you to different roles such as quality control, packaging, or operating different machines. This rotation keeps your work experience diverse, helps you learn new skills, and provides a better understanding of the entire production process.
Teamwork:
Encourages employees to work collaboratively in teams to achieve common goals. This method fosters a sense of belonging, camaraderie, and mutual support among team members. Teamwork can enhance motivation by creating a supportive work environment, improving communication, and leveraging diverse skills and perspectives to solve problems and innovate.
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