Methods of Motivation


Business Studies - 7115

Methods of Motivation

Methods of Motivation

Motivation by

Financial Rewards 

Financial Rewards

It is the duty of an organization to motivate the employees working there. Most of the time, this responsibility is given to the Human Resources department. There are mainly two methods used to motivate people. Financial rewards and non-financial rewards. 

Financial rewards are those rewards that are directly related to money like salary, bonus, and commission, etc. which motivates the people to work hard. 


Wage is payment for work done by any worker. Basically it is considered for the payment which is given on a weekly basis. sometimes these payments are given in the form of cash while sometimes it is deposited in the bank directly.  When a person works more than usual working hours, the company pays more which is called overtime.  


Salary is also a payment for work which is given to any worker. Basically it is considered a payment that is given to workers on a monthly basis. Salary is also given to workers in the form of cash or directly deposited into the bank. In case a person works more than usual hours, he is also given more salary in the form of overtime.


Bonus is a paid to the workers when they perform a good job. This is extra money which is not included in the salary. 


The commission is also not included in the salary. It is given on meeting the sales target. 


Sometimes companies set this system to motivate employees. After achieving a set target, companies distribute some percentage of profit among the employees.   

Motivation by

Non-Financial Methods

Non-Financial Rewards

As there are financial rewards, there are also some non-financial rewards that work effectively to motivate the employees. Some of these rewards are fringe benefits, job enrichment, job rotation training opportunities, and promotional opportunities, etc. 

Fringe Benefits

When a person starts any job, sometimes a company gives him many more benefits than the basic salary. These benefits may include company transport or transport allowance, health and accidental insurance, free accommodation or house rent, etc. though these are not financial benefits like a salary directly related to financial matters.  

Job Satisfaction

If an employee is satisfied with the job, he will be motivated to the work. There are various factors that make him satisfied with the job. 

Job Enlargement

Job enlargement is assigning different extra tasks at the same level to the employees that ultimately leads towards job satisfaction.  

Job Rotation

Sometimes the employees are offered to work on different jobs in different departments. These are the same level simple tasks but rotation gives them the advantage to learn the jobs of other workers who share the department. 


Teamwork is carried out for various jobs like product design and development etc. in teamwork, employees are involved in the decision-making process.


Sometimes training facilities are arranged for the employees when they excellently perform their duties. Training helps employees to learn more and to know may other things which are new to the employees. Training prepares them for new challenges that are essential to cope with the changing environment.  It is a common practice that is carried out by the Human resource department of the company. 

Promotion Opportunities

Promotion is also an important non-financial factor that motivates a person to work hard. Employees work hard and if they are trained well, they work smart as well to carry out the given tasks. After assessing their successful performance of their given job, they are offered a promotion to the next level which gives them ultimate satisfaction.

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