IMPACT OF NON FINACIAL REWARDS ON MOTIVATION
A STUDY ON THE IMPACT OF NON Financial REWARDS ON MOTIVATION PRESENTED BY VINEETA VATSA ANJALI PANDEY
INTRODUCTIONRESEARCH PROBLEMRESEARCH OBJECTIVESRESEARCH METHODOLOGYANALYSISFINDINGSRECOMMENDATION2CONTENTS
In any organisation employee motivation is the key factor for organizational performance. Companies are spending huge amounts of money on their reward programs which aim to motivate, retain, commit and attract new employees but fails to motivate the employees. The research is conducted to measure the impact of non financial rewards on employees motivation. 3INTRODUCTION
Motivation is the word derived from the word motive which means needs, desires, wants or drives within the individuals. It is the process of stimulating people to actions to accomplish the goals. Motivation is defined as the process that initiates, guides, and maintains goal-oriented behaviour. In the work goal context the psychological factors stimulating the peoples behaviour can be Desire for moneySuccessRecognitionJob-satisfactionTeam work, etc
"The term motivation refers to factors that activate, direct, and sustain goal-directed behaviour... Motives are the "whys" of behaviour - the needs or wants that drive behaviour and explain what we do. We don't actually observe a motive; rather, we infer that one exists based on the behaviour we observe." ( Nevid, 2013)
The motivational factors that motivate a person to work and which can be used to enhance their performance can be classified into two categories:
Financial Motivators Non-Financial Motivators
Any benefit an employee receives from an employer or job that is above and beyond the compensation package (salary, insurance, etc) for the specific purpose of attracting to the company as well as retaining and motivating the employees.
The non financial motivators include:-Job EnrichmentJob enlargementCommunicationWorkers participation in management decisionTraining
7 NON FINANCIAL MOTIVATORS
Low costs;It has a stronger effect and remains longer embedded in the mind of the employee as it appeals in it's emotional state;Can be applied to a longer period of time;If it's interrupted it doesn't generate resentments among those targeted;Promotes membership in that team;Raises the employee's fidelity for the organization 8COMPARISION BETWEEN FINANCIAL AND NON FINANCIAL MOTIVATORS
To better understand employees attitudes and motivation, In 1959, Frederick Herzberg, a behavioural scientist proposed a two-factor theory or the motivator-hygiene theory. According to Herzberg, there are some job factors that result in satisfaction while there are other job factors that prevent dissatisfaction. According to Herzberg, the opposite of Satisfaction is No satisfaction and the opposite of Dissatisfaction is No Dissatisfaction.
9HERZBERG THEORY OF MOTIVATION
The Two-Factor theory implies that the managers must stress upon guaranteeing the adequacy of the hygiene factors to avoid employee dissatisfaction. Also, the managers must make sure that the work is stimulating and rewarding so that the employees are motivated to work and perform harder and better. This theory emphasize upon job-enrichment so as to motivate the employees. The job must utilize the employees skills and competencies to the maximum. Focusing on the motivational factors can improve work-quality.
The two-factor theory overlooks situational variables.Herzberg assumed a correlation between satisfaction and productivity. But the research conducted by Herzberg stressed upon satisfaction and ignored productivity.The theorys reliability is uncertain. Analysis has to be made by the raters. The raters may spoil the findings by analyzing same response in different manner.No comprehensive measure of satisfaction was used. An employee may find his job acceptable despite the fact that he may hate/object part of his job.The two factor theory is not free from bias as it is based on the natural reaction of employees when they are enquired the sources of satisfaction and dissatisfaction at work.
12LIMITATION OF HERZBERG THEORY
This research is conducted to know how Organizations are using non-monetary rewards to motivate their employees.Is non monetary rewards helps to improve employees motivation.
The objective of our study is to find out for the company that whether non financial rewards are motivating the youth employees and measuring the impact on employees.
The hypothesis of the study are-H1: Better training opportunities leads to higher level of motivation.H2: Job enlargement has positive effect on employees motivation.H3: Providing fair recognition on performance to the employees motivate the employees.H4: Communication with employees guides in decision making.H5:Motivation factors has more impact on employees performance than hygiene factors.
GEOGRAPHICAL AREAThe study covers the area of BIHAR and JHARKHAND.RESEARCH DESIGNExploratory and descriptiveSAMPLING TECHNIQUEConvenience sampling
PRIMARY DATAPrimary data is collected through Questionnaires from different employees and telephonic interview with various employees working in different sectors.SECONDARY DATASecondary data is collected through different sites available on the internet and we have also referred to various journals, newspapers and magazine.
1) Do you like to be recognized for your efforts?100% employees like to be recognized
202) Do you think that employee should be rewarded in the organisation?
213) Non financial incentives motivates more than financial incentives?
45% employees agree with this
224) Choose the non-financial motivators used in your organization?
Job enrich is mostly used followed by job engagement
235) Please assess whether the rewards available are encouraging you to work.
45% respondents agree that rewards are encouraging
246)Please assess in a scale of 1 to5, how satisfied you are with the following being Dissatisfied, 5 being highly satisfied)
Job responsibility highly satisfy the employees
257) Please assess in a scale of 1 to 5 how satisfied you are with the following (1 being highly dissatisfied, 5 being highly satisfied)
24% employees like to be supervised
268) Please rate your current level of motivation in 1to 4 scale (1 being not motivated and 4 being highly motivated).
75% employee are highly motivated
279) Does non-financial motivators helps to improve performance?
90% employees agree with this
2810) In your opinion should the current reward practices in your organization include ?
65% want combination of both finan. and non-finan
2911) Do you find enough opportunities for advancement in this organization ?
75% agree with this
3012) Do you feel that you are unrewarded for your work?
45% employees are motivated more through non-financial incentives.Training as a non financial tool has less effect than financial tools.100% employees liked to be recognized at the work place and it has positive relation with employee motivation.Only 10% employees does not have positive effect of non financial rewards on performance.Opportunity to achieve and advancement has negative correlation(-0.198) with security and company policy and administration.Other motivating factors are positively co-related with employees performance.
Given the context and results of this study, it is safe to say that there is a place for non-financial rewards. It is recommended that organizations continually review their reward practices to ensure alignment with the potential impact of changes in the macro environment and to make allowance for different requirements based on the demographic factors of their employees. The fact that most of the employees differed in their opinions , some rewards may not satisfy them therefore, an employer should diversify their rewards to include the different demographics of his employees .
Non financial factors (Rewards) motivate the employee performance and increase productivity of organisation.Herzberg motivation theory has high impact on the employees motivation.Non financial rewards has equal importance as that of financial rewards.33CONCLUSION
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