Financial Motivation Report on Advantages of Financial Motivation

This report delves into the advantages of financial motivation within an organizational context. It highlights the benefits of improved purchasing power, which allows employees to better manage their finances and make informed investment decisions. The report also emphasizes the role of financial motivation in enhancing financial management practices, including efficient resource allocation and strategic investment. These factors contribute to increased employee productivity, profitability, and overall morale within the company. The report concludes that financial motivation, through incentives and effective financial management strategies, is a crucial tool for driving employee engagement and achieving organizational financial objectives. The report uses references from journals and books to support the findings.

Advantages of financial
motivation

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Advantages of financial motivation.............................................................................................3
CONCLUSION................................................................................................................................4
REFERENCES................................................................................................................................5

INTRODUCTION
Financial management is defined as managing the financial resources associated with the
organisation. This project will reflect the various advantages associated with the financial
motivation.
MAIN BODY
Advantages of financial motivation
Financial motivation is denoted as providing right frame of suggestions to the employees
of the organisation towards utilising financial resources of company. Financial motivation
contain different advantages that can be projected in the following points.
Improve purchasing power
Improved purchasing power has been among the key advantage associated with the
financial motivation practice channelises at the organisation. AS the financial motivation serve
various decisions that support the employee of company to save money. The savings they
generate drive the employee to enhance and boost the buying capacity. Purchasing power
denoted about the buying capacity of the individual (Lyk-Jensen and Pedersen, 2019). After
deducting all the expenses of the individual the saving left is indicated as the buying power or
purchasing power associated with the individual. Financial motivation support the organisation
to boost the purchasing capacity of the individual. This improve the value of money in respect to
the individual even after the inflation and other such elements that drive the individual and
employees in organisation to utilise this concept. Improving purchasing power is the best way to
invest in various investment plans and activity to entertain further growth in organisation. This
entire concept has supported the hum,an being to achieve the best level of value of the financial
resources associated with the individual.
Improve financial management
Improved financial management is another key benefit associated with the financial
motivation. This directly allow the human being to improve the engagement of company’s
financial resources. Managing financial capability involve controlling the expenditure of the
individual, taking decisions in respect to investment in various projects, utilisation of the
financial resources of the organisation and many other approaches that can guide the individual

in utilising the financial resources in the best way possible. Even after achieving the limited
amount of salary this technique precisely project and reflect the best approaches to utilise the
financial capability of the individual. This also drive the organisation to deliver the incentive
policy in the organisation that provide advantage to the organisation in form of improved
productivity and profitability o9f the organisation along with increased morale of company’s
employees (Santos, 2019). Money is the biggest motivation employee carry and financial
motivation allow the human resources part of the organisation to deliver the best level of
financial utilisation in order to achieve the best level of financial motivation.
The above mentioned points are th two key advantages associated with the financial
motivation. The aim of the financial motivation is to raise the motivation of the employees by
allowing more effective services inn respect to incentives and financial management related
services.
CONCLUSION
Financial motivation is denoted as motivating the employees of the organisation by
allocating the financial benefits against the employment opportunity at organisation. This involve
giving incentives and other related benefits to employees.

REFERENCES
Books and Journals
Lyk-Jensen, S. V. and Pedersen, P. J., 2019. Homecoming Soldiers: A ‘before-and-
after’Analysis of Motivations, Financial Situation and Criminality. In Soldiers on
International Missions. Emerald Publishing Limited.
Santos, I. C. F. D., 2019. Divestment operations: the strategic, financial and organizational
motivations: the case of Mota-Engil (Doctoral dissertation).