Employee Motivation: Approaches, Advantages, and Disadvantages

This report delves into the critical topic of employee motivation within organizations, exploring various approaches to enhance workforce commitment and productivity. It categorizes motivation into monetary and non-monetary incentives, analyzing the strengths and weaknesses of each. Monetary incentives, such as bonuses and commissions, are examined for their ability to increase employee happiness, retention, and organizational performance, while the report also acknowledges potential drawbacks like creating inequality and being less effective in certain situations. Non-monetary approaches, including training and flexible work hours, are presented as alternatives, offering cost-effectiveness and the attraction of fresh talent. The report further discusses incentive programs, intrinsic motivation, extrinsic motivation, and McClelland's theory, providing a comprehensive overview of how different motivational strategies can be applied to foster a productive and engaged workforce. The report concludes by offering a practical understanding of how to implement and evaluate these strategies within a business context.

Motivation

Table of Contents
INTRODUCTION..............................................................................................................................3
TASK.................................................................................................................................................3
Motivation and its approaches ......................................................................................................3
.........................................................................................................................................................10
CONCLUSION ...............................................................................................................................10
REFERENCES.................................................................................................................................11

INTRODUCTION
In organizations, employee motivation is a level of the commitment, innovation and energy
that a firm's workforce hold during their working days. Improving and maintaining motivation at
workplace can be an issues for many organizations, as not every task will be interesting. Thus,
businesses find the ways to keep their employees involved (Al‐Ghazali and Afsar, 2021). Well
motivated employees or workers stay within the business organization through company's think
and thin. At workplace, motivation is an essential element to establish an effective relationship
between employees and employers. In modern management system, various motivational methods
have been put into practices to increase employees productivity. This report will be based on the
different motivational approach along with advantages and disadvantages. There will as discussion
on how various approaches can help the organization to motivate their employees.
TASK
Motivation and its approaches
Motivation can be divided into two categories monetary and non-monetary motivation. Monetary
benefits are the financial rewards which are given to the workers by the management of the
organisation to keep them motivated and for meeting the goals and targets of the business. These
involves commission, bonuses, cash awards, gift cards and many more. As the name suggests
monetary incentives have a monetary value and the workers can instantly evaluate their exact
worth (Alfes, Veld and Fürstenberg, 2021). This benefits are the most direct method of displaying
appreciation and encouraging motivation. Money is considered an effective motivator for
improving the productivity and overall performance of the employee's. The purpose of monetary
benefits is to reward associates for excellent job performance through money.
Strengths of using money as a motivation:
Money is considered a very essential aspect in enhancing the performance of the workers. The
advantages for using money as a motivator are discussed below:
 Happier Employee's: It is very important for the organisation's to keep their workers
happy in order to increase the moral and job satisfaction. The productivity of the
employee's are dependent on the motivation. Every company should try to give monetary
benefits in order to encourage the workers to give their best. This way the goals and

objectives of the organisation are achieved on time. Implementing the employee incentive
plans increases the personal happiness and job satisfaction of the workforce.
 Better Employee Retention: The workers seek monetary benefits and other programs
when they look for a new job. It has been seen that giving incentives to the workers help in
retaining the existing employee's in the organisation. The workers are unlikely to leave a
workplace shortly with the increased motivation. It reduces the recruitment cost of the
company which will improve the current position of the business in the market.
 Better Organisational Performance: Every company realises the importance of high
performing employee's for the success of the business. The managers prepare various
strategies in order to properly manage the workers which help them to improve the quality
and contribution of the employee's. The more the workers are provided with monetary
incentives, they will likely to work according to their potential. This will ultimately make a
positive impact on the sales and profits of the organisation.
 Encourage Team Environment: When all the workers are provided monetary benefits, it
will lead to creation of a collaborative and en-richening workplace. All the employee's will
feel comfortable working with each other. This helps the management of the organisation
to properly implement business strategies (Amin and et. al., 2021).
 Increase Employee Engagement: The companies try to make the workforce involved in
various activities so that they do not feel ignored. The monetary benefits which are
provided by the organisation increases the engagement of the workers. The employee's will
work by keeping in mind the objectives and goals of the business. This make a positive
impact on the overall performance of the company. This also helps in creating a good
image of the organisation in the market.
Limitations of using money as a motivation:
Money is not everything when it comes to job satisfaction and motivation. There are other factors
which are considered by the employee's in their working condition. The employee's are attracted
to the incentives only up to an extent which needs to be understand by the organisation's. The
disadvantages of using money as a motivation are discussed below:
 Creates Inequality: Sometimes the management of the organisation make incentives plan
only for the best employee's. This affects the performance of the other workers due to the

inequality and discrimination. This can lead to conflicts between the employee's due to any
difference in amount paid to the different workers. This also violates the National Labour
Relations Act and it is also a very bad HR practise. This develops a negative environment
in the company which is a very bad sign for the business. This impacts the overall
performance of the organisation in the market (Aristika and Juandi, 2021).
 Time Consuming: Any good thing comes with a definite price. The preparation of
monetary incentives schemes consumes a lot of time of the management of the business.
Also various other things are also need consideration with regard to providing these
benefits to the workers of the organisation. This shifts the focus of the administration from
the other essential decisions of the business. It can take away the company from the
achievement of its goals and objectives.
 Less effective in special situations: There can be various situations where the monetary
benefit plan may not work in a positive way. These situations can be project with deadline
or any extra work which requires specialisation. In this, the money cannot play a role in
motivating the employee's due to the significance of other factors (Cho and et. al., 2021).
 Creates Demotivation: It has been seen that the companies sometimes not able to reward
their workers within the specified time. It can lead to demotivation among the workforce
which directly affect their performance and quality of work. Also it is not possible to
provide the monetary benefits to all the employee's working in the organisation. This also
act as a reason for the lack of job satisfaction among the workers. Then these employee's
will work less according to their potential which will ultimately lead to reduction in the
performance of the whole business.
 Other incentives may seem an entitlement: The monetary incentives which are given to
the employee's can sometimes result in shifting of focus from achieving business objective
to personal benefit. This affects the quality of work done by them in the organisation since
the workers will only give importance to the self needs.
Non monetary approach
Main purpose of the non monetary incentives is to reward the associates for an excellent
job performance through various opportunities. These approach include training and education,
flexible work hours and pleasant work environment.
Advantages

 Good fringe advantages attract millennial- If or organizations looking to attract a fresh
talent, specially those who have complete their graduation recently from a well reputed
university fringe benefits are most suitable place to start.
 Inexpensive- Mostly non monetary motivational approach are cost effective as it doesn't
include any kind of monetary incentive, due to which company does not need to spend on
money (Jain, Tomar and Jana, 2021).
Disadvantage
 Full participation is not guaranteed- This kind of motivation ten to less persuasive. The
employees might not be motivated by rewards the company is providing and in case if it
happen, them workers involvement metrics might not change in a meaningful way.
 Less productivity- High performing workers that value the money and monetary perks
might find that the non monetary rewards system lack the incentives required to bolster
motivation and enhance their work productivity. No all the workers value handwritten
notes and walls which display employee of mouth.
Incentive programs
It is defined as a formal scheme which used by the business organization to promote and
encourage specif behavior or actions by a specific individual or group of individuals during a
defined time period (Javed and et. al., 2021). Such programs are specifically used in the business
management in order to motivate the employees and in sales for attracting and retaining the
customers.
Advantage
 Motivate the staff- Incentive programs give workers a reason to perform best. Few
employees or workers do not require need an extra push to be outstanding. By providing
the incentive to them , employer is able to induce them to perform better. It lead to a higher
output.
 Supervision does not pose problems- When a suitable incentives programs is available,
employees become more duty conscious. In this, case need or the supervision does not
arise.
disadvantages
 Work quality may suffer- Employees, those in production department in specific, may
give an undue significance to the output's quality produced neglecting the output's quality.

Such issue can be overcome only if the company has an effective or perfect system of the
quality control.
 Increase in the paper work- A proper administration of the incentive programs include a
lot of the paper work. This necessitates a maintenance of the proper books and records
(Rashid, Tout and Yakan, 2021).
Intrinsic motivational approach
this motivation comes from in an individual and not due to any expectaiosn of the rewards
to an individual doing that work.
Advantages-
 Working for the long hours- In this, employees work for the long hours as they are very
passionate for their work on a specific task and if there is passion then time does not
matter. Thus such workers don't need the bio metric attendance as they are motivated to
complete the give task at at any cost that makes the project of organization very easy.
 No need for control- As all the companies spend a lot of the resources whether its time,
money and individual on ensuring that workers of the organization work efficiently or
effectively. But in case of the intrinsic motivation, these needs is does not require as
workers themselves are motivated and do not require a special attention to perform their
work that save the organizational resources.
Disadvantage
 Limited use- It is very difficult to identify the workers who are intrinsically motivated
because majority of the employees work ion organization in anticipation of financial
incentives and rewards. Thus, if comp[any depend on merely intrinsic motivation s a way
of doing the work then it will find itself in such situation in which not work will be
finished timely.
 No solo use- This motivation has not nay solo use rather this require help of the extrinsic
motivation to attain a desired outcome as far as organizational working is concerned
(Smith and et. al., 2021).

Extrinsic motivation
It is form of the operant conditioning. It is when new behaviour is learned by
consequence of the another behaviour. This learning tool help individuals attain desired
behaviours.
Advantages
 It lead to a positive behavioural changes and aid in boosting productivity within
workplace. It stimulates an interest of individuals in any task which does not appeal to
them initially.
 This kind of the motivation is very effective when producing results (Tantawy and et. al.,
2021).
Disadvantage
 It does not create a passion to work. Someone who do not like what they do will just do the
bare minimum for getting their rewards.
 Offering similar rewards again and again produce a poor result every time.
McClelland's theory is closely associated with learning theory because it believe that needs are
learned by the events people experienced in their environment and culture. If business
organizations, use McCelland's theory of motivation then it will be helpful in removing the scope
of excuses by given tasks to the employees according their ability and ensure the satisfaction of
employees. This theory state three needs which influence the behaviour of an individual, they are
defined as follows:
 Need for achievement- Peoples with this need usually have a strong desire of setting up
difficulties objective for accomplishing them and prefer working alone. In this individuals
avoid the low risk situations because of the lack of real challenge and also avoid high risk
situation because they understand it to be more about luck.
 Need for power- It is concerned with making an impact on others and to influence other
with the desire to make a difference in their life. In organisations, Such type of individuals
are strong leaders and best suited to leading positions.

 Need for affiliation- There is an emotional drive towards being liked and accepted and
prefer being part of a group. People in companies, with this need desire having
collaborative working relationship with others and value the feelings of others.

CONCLUSION
Form the above report, it is concluded that motivated employees are valuable assets for
any organisation as they deliver an immense value to an organisation in maintaining and
strengthening a business and revenue growth. There are various approaches, through which,
employees can be motivated, but every employees do not get motivation by same things. For this
organisation should a suitable motivational approach like monetary, non monetary, incentives
programs, intrinsic motivation, extrinsic motivation and many more. It is very essential for every
organisation that which approach will be most effective that can encourage their employees to
perform better. Therefore, it suggested that the companies should undertake an effective
motivational theory and approach so that it can enhance the employee's productivity efficiently.

REFERENCES
Books and Journals
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creative self‐efficacy. The Journal of Creative Behavior, 55(3), pp.769-782.
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