Importance Of Both Financial And Non Financial Motivation Commerce Essay

Importance Of Both Financial And Non Financial Motivation Commerce EssayIt is widely believed that an strong management system of motivation in a company provide directly influence employees to achieve their goals and businesses objectives (Accel-team, 2010). According to Accel-team (2010), motivation can be explained in financial and non-financial aspects. Financial rewards can be defined as using money as an incentive to employees for improving productivity. In contrast, non-financial rewards motivate employees by demarcation enlargement, team takeing, and quality control circles etc. The below argument will show that financial and non-financial motivations argon both determinants which affect employees through investigation.Taloy year pointed step forward that the best way to motivate people at work is by money. In other words, those workers who produce more in a beauteous daytime can receive more payment (Accel-team, 2010). The main reason for workers to go to work is that they can earn money to consume (Accel-team, 2010). Thus, workers argon encouraged to work as efficient as possible they can (Accel-team, 2010). For example, Tesco is one of the top three retails in UK (Thetimes100, 2011). There are over 3700 stores and 440000 employees globally, which is very difficult to deck out well (Thetimes100, 2011). However, Tesco fixs good use of incentive payment to motivate employees (Thetimes100, 2011). Tesco not unless give employees increased income, but also use targeted benefit to stand the varied lifestyles of employees (Thetimes100, 2011).Furthermore, Fringe benefits prefer to provide their worker some in kind rather than in crash (Accel-team, 2010). For instance, company cars and private health indemnity may lead to good performance of employees in a company (Accel-team, 2010). As another example that the fortune magazine states that Google is a company which is listed on the top 50 companies to best work for (Ezinearticles, 2008). Google pro vide their staff some usual perks which certain health cares and children facilities by allowing workers to bring their pets to work (Ezinearticles, 2008). The result for these serial publication of Fringe benefits not only reduces the number of sick-leave days, but also can bring a good environment for workers.Nevertheless, financial rewards are not the only method that satisfies employees. There are non-financial rewards, which are as important as financial reward (Changingminds, 2011). Fredrick Herzberg of needs has claimed that both financial and non-financial rewards play significant roles in motivation (Changingminds, 2011). This is show in Figure 1, physiological need is at the bottom of the pyramid, such as wages for worker to be used for each one week or providing workers a good working environment (Changingminds, 2011). If the physiological needs are satisfied, employees needs will move to the next level which is called preventative needs, such as living in a safe area o r job security. As the level goes up in the pyramid, the financial factors will not satisfy the workers need while non-financial rewards motivate employees (Changingminds, 2011).Figure 1 (Changingminds, 2011)In order to motivate employees in higher levels in Maslows hierarchy of needs, it is inevitable for business to consider more in non-financial rewards such as job enlargement and team work quality control circles. Job enlargement involves fine-looking workers more jobs to avoid repeating doing the same job. In other words, they can change their jobs and tasks, so that they will not feel bored. For example, KFC invested more than 240 million kwai for 20 million employees over a 17-year period when it entered China market ( Robroad, nd).The reason for KFC to use such a large amount of money to take up their employees is that it aims to improve employees ability to deal with different jobs and tasks ( Robroad, nd).Meanwhile, team work is another good way to combine polled talent s to work more efficiently. For example, one of the worldwide leaders in luxury automobiles BMW believed that teamwork helps workers trust each other and share their ideas by brainstorming, which hence helps the company run more efficiently (Swampfox, nd). Therefore, BMW spent thousands of money to make workers learnt how to trust and communicate better through a series of practice by using ultimate driving machine (Swampfox, nd).Finally, quality control circles are able to improve the nature of job directly. Staff can meet regularly to study and solve production line of works. In addition, they also have abilities to help the company to make decisions. The well known computer company IBM does well in this area, employees in IBM can take part in decision devising and bring some useful ideas for the company (Ocities, nd). At the same time employees feel that they are trusted and powerful when they were making an attempt to solve the problem (Ocities, nd). Therefore, non-financial m otivation such as job enlargement, team work and quality control circles are also effective ways to motivate employees.In summary, it is obligatory for a company to make sure what the employees really need and choose financial rewards or non- financial rewards to encourage them. There is no doubt that fair day pay and fringe benefits are still reasons why people keep working. However, non-financial rewards which include job enlargement, team work and quality control circles are more attracted for some higher educated employees, which are equally as important as financial rewards. Therefore, businesses need to balance each of them and make the or so use of them to motivate the staffs.References SectionAccel-team (2010) Online Employee Motivation Theory and practice ready(prenominal) athttp//www.accel-teamHYPERLINK http//www.accel-team.com/motivation/index.html.com/motivation/index.htmlAccess Date 12, March, 2011Changingminds (2011) Online Maslows HierarchyAvailable athttp//changing minds.org/explanations/needs/maslow.htmAccess Date 12, March, 2011Ezinearticles (2011) Online Google sets the standard for a happy work environmentAvailable at http//ezinearticles.com/?Google-Sets-The-Standard-For-A-Happy-Work-EnvironmentHYPERLINK http//ezinearticles.com/?Google-Sets-The-Standard-For-A-Happy-Work-Environmentid=979201HYPERLINK http//ezinearticles.com/?Google-Sets-The-Standard-For-A-Happy-Work-Environmentid=979201id=979201Access Date 11, March, 2011Qocities (nd) Online IBM Ideas Program GuideAvailable athttp//www.oocities.org/keithgibby/ibm_ideas_prog_guide.htmAccess Date 12, March, 2011Robroad (nd) Online KFC restaurant managers to do what the main jobAvailable athttp//www.robroad.com/light-industry/index.php/restaurant-training-kfc/Access Date 12, March, 2011Swampfox (nd) Online BMW delivers teamwork at Performance Center in GreerAvailable at http//www.swampfox.ws/bmw-delivers-teamwork-at-performance-center-in-greerAccess Date 12, March, 2011Thetimes100 (2011) Onlin e Motivation theory in practice at TescoAvailable athttp//www.thetimes100.co.uk/case-studymotivational-theory-in-practice-at-tesco132-396-3.phpAccess Date 12, March, 2011