Factors influencing Motivation

The motivational factors can be broadly divided into two groups as follows:

A) Monetary (Financial) Factors:

1. Salaries or Wages:
Salaries or wages is one of the most important motivational factors. Reasonable salaries must be paid and on time. While fixing salaries, the organization must take into consideration a number of factors such as:
– Cost of living.
– Company's ability to pay.
– The capability of the employee, etc.

2. Bonus:
It refers to extra payment over and above the salary given to an employee as an incentive. The employees must be given an adequate rate of bonus.
Normally, a bonus is paid once in a year. However, nowadays, some organizations pay a monthly bonus along with their monthly pay.

3. Incentives:
The organization may also provide additional incentives, such as medical allowance, leave travel allowance, house rent allowance, educational allowance, recreation allowance, and so on.

4. Special Individual Incentives:
The company may provide special individual incentives. Such incentives are to be given to deserving employees for giving valuable suggestions, or for special efforts on the part of the employee.

B) Non-Monetary (Non-Financial) Incentives:

1. Status or Job Title:
By providing a higher status or designation, the employee can be motivated. For instance, it is advisable to designate a service mechanic with the designation titled "service engineer". Employees prefer and are proud of higher designations.

2. Appreciation and Recognition:
Employees must be appreciated for their services. The praise should come not only from the immediate superior but also from higher authorities, especially in the case of special achievement.

3. Job Security:
Guarantee of job security or lack of fear of dismissal, etc, can also be a good way to motivate employees. Employees who are kept temporarily for a long time may be frustrated and they may leave the organization.

4. Job Enrichment:
Job Enrichment involves providing more challenging tasks and responsibilities. For instance, an executive who is involved in preparing performance reports may also be asked to frame plans. This would make the job of the employee more meaningful and satisfying.