Post on 01-May-2023
Motivating people- Getting beyond money Case Analysis
Case # 3
Motivating people: Getting beyond money
MGT501 Management of Organization & Systems
Prepared for
Md. Tamzidul Islam
Senior Lecturer
BRAC Business School
Prepared by
Group Members
SL No ID Name1 14364042 AINUL KAMAL2 14364032 MD. IFTIAR AHMED3 14364047 MD. ARAFAT RAHMAN CHOWDHURY4 12364053 RAKIBUL ISLAM5 12364058 ISHRAT JAHAN KHAN
Semester: Fall 2014, Section: 03, Department: MBA
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Motivating people- Getting beyond money Case Analysis
Date of Submission: 10th December 2014
Introduction
Motivation is the act of giving somebody a reason or incentive to do
something. It also means giving somebody hope or support to perform
particular tasks. Motivation factor plays a vital role in business
Management. The process of employee motivation in the workplace
creates zeal and interest and commitment; energetic and unflagging
enthusiasm that makes them do something, especially something that
involves hard work and efforts. It thus must be borne in mind that a
highly motivated employee uses his potentials to the optimum level and
makes goal-directed efforts while raising the best level of efficiency
towards the accomplishment of organizational objectives, whereas the
one who’s not motivated does not do so. The impact of total
rewards including financial and non-financial rewards have on
employee motivation was chosen to be studied in this case because
both of the concepts are important; for the employees and for the
employers.
Q1.Based on the information provided and your further understanding, why is it
important to motivate employees with non-financial motivators?
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Motivating people- Getting beyond money Case Analysis
Still that money is the most important motivational factor and so are
the plans, using money incentives, bonus and the wages linked with
productivity etc. are designed in order that the employees may be
motivated to work more efficiently, yet there are some other
motivational factors that can bring positive results in the personal
development of the employees as well as in the organizational
environment. Numerous studies have concluded that for people with
satisfactory salaries, some nonfinancial motivators are more effective
than extra cash in building long-term employee engagement in most
sectors, job functions, and business contexts. Many financial rewards
mainly generate short-term boosts of energy, which can have damaging
unintended consequences. A sentence that may have commonly been heard
or overheard when a situation erodes the employee morale, “Money is not
everything.” connoting there is something that drops off behind the
situation that the person anticipates other than the money. Hence, it
is necessary for a manager to understand what motivational factors the
employees get contented with while observing both financial and non-
financial motivational factors in the workplace. In terms of a
definition, non-financial recognition can be thought of as: “…a non-cash
award given in recognition of a high level of accomplishment or performance such as
customer care or support to colleagues, which is not dependent on achievement of a pre-
determined target.”(Rose 1998).
A recent McKinsey Quarterly survey underscores the opportunity. The
respondents view three noncash motivators—praise from immediate
managers, leadership attention (for example, one-on-one
conversations), and a chance to lead projects or task forces—as no
less or even more effective motivators than the three highest-rated
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Motivating people- Getting beyond money Case Analysis
financial incentives: cash bonuses, increased base pay, and stock or
stock options.
The survey’s top three nonfinancial motivators play critical roles in
making employees feel that their companies value them, take their
well-being seriously, and strive to create opportunities for career
growth. These themes recur constantly in most studies on ways to
motivate and engage employees.
There are a number of reasons why it is important to motivate
employees with non-financial motivators. Just to name a few of the
most commonly used non-financial motivators are mentioned herein that
could stand to benefit to everyone concerned. Due to recent economicconditions, organizations and employees are focusing on financial
motivators in terms of salary increment, bonus and commission. “More
than half the employees surveyed by the Society for Human Resources
Management in 2009 said that benefits and compensation are
important ("2009 Employee Job Satisfaction")”. However, to me money is not
everything. If employers are offering financial rewards only and in
return they are expecting high productivity and low turnover rate,
their strategies are not long term. There are many other factors thatplay an important role with money in keeping an employee motivated.
Here are some non-financial motivators that are inevitable for any
organizations employees motivation and also for organization’s
success.
Recognition and Respect
According to a survey conducted by consulting company Mercer in 2011,
employees in Argentina, Brazil, Canada, Mexico and the United States
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Motivating people- Getting beyond money Case Analysis
all listed “being treated with respect” as the single most important
factor in motivation. Recognition and praise can send employees the
message that the company respects them and values their contribution.
Financial incentives and bonuses were number 13 on the list in all
five countries. American employees rated “base pay” fifth on the list,
so although financial rewards remain important they actually have less
importance for most employees than respectful treatment and
recognition.
Encouraging strategic behavior
Non-financial motivators gives an organization the opportunity to
highlight desired actions and behaviors. In the process, role models
are created for other employees. The thinking behind this is that by
recognizing outstanding achievement and certain behaviors, other
employees will aim to imitate such ways of performing. In addition,
the whole process of recognition can be used explicitly as a method of
contributing to the achievement of organizational objectives.
Organizational Climate
Organizational climate means the working system within the
organization. This includes individual freedom, receipt of awards, the
importance of employees, etc. Every person likes to work in a better
organizational climate. The manager can motivate the employees by
providing a better organizational environment.
Cost efficiency
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Motivating people- Getting beyond money Case Analysis
Non-financial motivators can help fulfill organizational objectives at
a relatively low cost. This was supported by a research conducted by
Industrial Relations Services (1999):
“One of the key attractions of recognition-based schemes is the cost efficiency. The most obvious
benefit is that awards made under recognition schemes need not be expensive, as it is their
symbolic value and not their cost which is important.”(IRS 1999)
A report by Income Data Services (1999) makes the same point. The
awards given under the banner of non-financial motivation scheme are
typically worth a lot less than the value of those in any financial
motivation scheme. But, as the monetary value of the award is less
important than the act of recognition itself, these sort of schemes
offer good monetary value. Since their symbolic (as a visible sign
that individual contribution is being acknowledged) is greater than
their monetary worth, organizations get a ‘bang for their buck’. Without
using financial motivators only non-financial motivators can achieve
cost efficiency for any organization with a full motivated workforce.
Employees Participation:
Employees get encouraged to notice their participation in managerial
works. Therefore, they offer their full cooperation in making
successful the policies prepared with their help.
Employer branding
The thinking behind employer branding is that if an organization has
an external brand to attract and retain customers, then why not do the
same internally so that not existing and potential employees can
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Motivating people- Getting beyond money Case Analysis
identify with the brand. Non-financial recognition links with the
concept of total reward here, as organizations can use the whole range
of benefits, both financial and non-financial, to make a statement
about the organization and its culture. This can be employed to
promote a more positive organizational image.
Retention & Job Security
There is little doubt that focusing solely on financial rewards
creates instrumental relationships – “I work for you just because you
pay me”. In such a situation, it becomes easier for competitors to
lure away experienced and important staff – they just have to pay them
more money. In terms of retaining key talent, building affective
relationships between employer and employee binds the two more closely
together. This makes the individual less likely to leave and makes it
harder for rival organizations to compete. Non-financial motivators
help reinforce affective relationships. And they are more difficult
for other organizations to match compared to extrinsic forms of
reward. Job security is an important non-monetary motivator. Security
of job means a feeling of permanence and stability. For example, if an
employee has a sense of fear or insecurity in his mind, that he can be
removed from his job any time, he will never work wholeheartedly and
this worry continues troubling him.
On the other hand, if he has a feeling that his job is secure and
permanent and he cannot be removed from his job easily, he will work
without any worry and with an easy mind. Consequently, his efficiency
increases. This is the reason why people prefer a permanent job with
less salary to a temporary job with more salary.
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Q2.How non-financial motivator does help an organization to motivate its employees?
Motivation is very important for any organization to increase the
productivity and the ability of the employees for that specific
organization. The use of non-financial methods of motivation is
attempts by employers, to apply in the workplace the ideas behind the
theories of Mayo, Maslow and Hertzberg. Examination of these theories
has shown us that motivation to achieve quality of output is best
achieved through satisfaction of higher needs (Maslow), awareness of
the role of groups in the workplace (Mayo), and the need to provide
Motivators (Herzberg). It is not about the money all the time, it can
be any other things which can enhance the ability of the employee.
Non-financial rewards can have an even more substantial impact on
employee satisfaction and motivation than traditional financial
rewards. A study by the Hay Group involving around four million
employees found that employees listed work climate, career
development, recognition and other non-financial issues as key reasons
for leaving a job. Even well-compensated employees may leave a company
if dissatisfied with these aspects. Companies with excellent non-
financial incentive plans can attract motivate and retain talented
people. In the past, many companies relied on money almost exclusively
to motivate their workforce, but employees often rate other aspects,
such as recognition and flexibility as more important. The problem
with relying too much on money as a motivator is that it can encourage
employees to focus on whatever will earn an immediate incentive rather
than on finding long-term solutions or creative new approaches. It can
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also lead employees to see each other as opponents in a competition
rather than working together for mutual benefit.
Non- Financial Motivators:
Now a day’s companies around the world are cutting back their
financial-incentives programs, but few have used other ways of
inspiring talent. Different studies show that for people with
satisfactory salaries, some non-financial motivators are more
effective than extra cash in building long-term employee engagement in
most sectors, job functions and business contexts. Non-financial
motivators can be
Job Enlargement
Job enrichment
Praise from immediate Manager
Leadership Attention
Chance to lead projects
Empowerment
Praise from immediate Manager
When a person get a praise for the work he or she has done, obviously
he or she get motivation or feel happy to complete that task. For
example, you are working in a incentive base company, in where your
bonus is depend on that and if you fill up your target, then you will
not get any appraisal from your manager. On the other hand if you are
working in such organization with good basic salary and there is no
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Motivating people- Getting beyond money Case Analysis
incentives for the work you done, but you are apprised for the work
you done. Between these two
scenarios, employees will choose the second one and that also helps
organization to reach its success. The purpose of performance
appraisal is to inform employees that the organization is interested
in their professional development. It signals the message that
employees contribution plays significant role in organizational
success. As a result, employees are motivated to contribute more
towards the organizational success because they are given recognition
and appreciation for their contribution. The performance appraisal
motivates the competent employees by rewarding them. This is how less
competent employees will get inspiration from competent employees and
will be motivated to perform well.
Leadership Attention
Leadership attention is another type of non-financial motivation in
where employees get motivation and think that they are the important
person for the organization. From this article we can see that one-on-
one meetings between staff and leaders are hugely motivational. A HR
director from a mining and basic material company explained it that
way- “they make people feel valued during these difficult times”.
Emphasized leadership attention as a way to signal the importance of
retaining top talent. When one global pharma company’s CEO was
crafting corporate strategies this year, he convened several focus
groups of talented managers to generate ideas about how to create more
value for the business. Besides that when a person get attention from
his or her leader than he or she wants to complete that task more
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Motivating people- Getting beyond money Case Analysis
accurately. It brings a huge motivation and determination to complete
the job in the finest way.
Chance to Lead projects
It is another kind of non financial motivators in where employees are
encouraged to lead the work done by them. It increases the will power
of the employee to do the job more perfectly. And they think they are
the valuable part of the organization. From this case we can see the
scenario that a chance to lead projects is a motivator that only half
of the companies in our survey use frequently, although this is a
particularly powerful way of inspiring employees to make a strong
contribution at a challenging time. Such opportunities also develop
their leadership capabilities, with long-term benefits for the
organization. One HR director in the basic-materials industry
explained that involvement in special projects “makes people feel like
they’re part of the answer—and part of the company’s future.” A
leading company from the beverages industry, for example, selected 30
high-potential managers to participate a leadership program that
created a series of projects designed and led by the participants. So
it is another great non financial motivator.
Job Enrichment
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This means giving workers more control over the tasks that they
complete. Allowing workers to complete tasks that have a meaning, and
are complete in themselves. For example a worker who has a job fitting
the tube to a TV, may have his job enriched by testing that the tube
works, and being able to make adjustments so that the required level
of quality is achieved. The ability to do this range of tasks means
that the worker becomes more committed to achieving quality. The cost
associated with this method, are of course, the time spent training
the worker to complete these extra tasks. Effective job enrichment
depends upon workers having interesting tasks to complete. Job design
is a key part of Herzberg's ideas.
Job Enlargement
Job enlargement means increasing the number of tasks completed by a
worker. So a secretary previously employed to answer calls might now
have duties, which include, filling, letter writing etc. This adds
interest to the job, and involves the employee in a more complete role
within the business.
Empowerment
This means giving workers the power to control their own jobs, make
decisions, and implement their own ideas. It is often used in an
artificial way, for example allowing counter workers in burger bars to
decide the greeting they use when they meet customers. By doing that
organization get its work done more naturally.
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Motivating people- Getting beyond money Case Analysis
Identifying motivational factors of employees in the company, to
increase professional performance;
Aligning individual objectives to general objectives of the
society and establishing the means by which they will be
achieved;
Cultivation of the spirit of cohesion, belonging and shared
responsibility for the success or failure of the team.
Pushing the employees into action during peak periods or in
critical moments of the company when there is a need for
additional force and the company's budget doesn't allow
additional staff hiring;
Employees determination to get involved in objectives realization
of development of the company and their awareness of the role
they have in it.
Reducing staff turnover in key functions of the company and
increasing loyalty to it.
Competitive business environment by developing staff desire to
Increasing the quality of products / services, especially of
sales, succeed.
Improving the internal and the external image of the company and
building an internal climate of valuing work well done.
Motivational techniques, regardless of how their classification or
their use, is based on the following premise: the greater the feelings
of belonging and involvement in that firm, the greater the
responsibility, recognition, respect or status granted employees.
A sentence that may have commonly been heard or overheard when a
situation erodes the employee morale, “Money is not everything.”
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Motivating people- Getting beyond money Case Analysis
connoting there is something that drops off behind the situation that
the person anticipates other than the money. Hence, it is necessary
for a manager to understand what motivational factors the employees
get contented with while observing both financial and non-financial
motivational factors in the workplace. Just to name a few of the most
commonly used non-financial motivators are mentioned herein that could
stand to benefit to everyone concerned.
Evidence reveals that the employee morale is a vital element of an
organizational development and success. Having been enhanced to the
extensive extent, it leads to the considerable improvement in
inefficiencies and organizational competencies. It is therefore by
means of boosting employee morale is to get success in terms of
overall organizational development and competence. The higher the
morale, the greater will be success and vice- versa. Considering the
factors affecting employee morale, a manager must come out with
positive and constructive suggestions, ideas and plans which may be
beneficial to both organization as well as the employees. Managers
must adopt such motivational methods as to boost employee morale at
all times.
As regards the employee morale, moving back to see how it is,
connected with quality of work delegated and being considered as one
of the non-financial motivational factor, supportive to both
management as well as employees.
Quality of work is an important factor for the employees who are
qualified and skilled and capable of performing better and challenging
tasks than those that are done every day as a routine - such tasks may
sooner or later become real chore for them. Employees begin to lower
their morale and get frustrated if they are not provided the right
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opportunities and assignments matching with their skills and
professional credentials. What in such situations a manager needs to
do is that he can suggest plans and ideas to benefit those employees.
In order to ensure without any prejudice in the assessment of such
employees, one of the modern methods of performance appraisal, a new
approach to business management, having been termed as Management by
Objectives is very much helpful in this way. It is through the process
of management by objectives that the objective of each employee is set
having been mutually agreed upon and the Key Results areas (KRA) and
Key Performance Indicators (KPI) are indicated accordingly. Not only
does this process help the manager to evaluate the performance of each
employee but also enables him to propose for any further development
of the employee in respect of his designation and the assignments. In
this way, a manager could support those employees, by enhancing their
morale, who are true in their claim that they can handle better
assignments than those that are being carried out currently.
Next in importance comes the good deed of praise and recognition - Who
on earth does not have a wish to win praise? Who does not want that he
be expressed one’s approval and admiration and recognition in the
tasks that are done by the sweat of his brow? Even to smile a small
smile makes a big difference, then, what to speak of the admiration
and recognition? The effect of admiration and recognition in lieu of
the loyal and sincere services of the employees is such that it
becomes a stimulus that sets off a positive behaviour triggering their
minds to work more effectively and efficiently to the extent of their
diligence. At this point, a religious saying is worth mentioning that
could be so interpreted - or the words to that effect: If one cannot
help others with money, then one must help them at least with a
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pleasant smile. It thus suggests how important it is for a manger to
make a smile appear on his face. It may be rightly said that a broad
grin wins the assent of the employees to motivate them towards their
efficient performance. The actions relating to praise and recognition
may thus be demonstrated as and when needed, such as, patting at the
back of the employees, entrusting them advance assignments and
recommending them for promotions.
Mention must be made about the provision of the place and the
furniture as these symbolize the status and the level of authority and
responsibility being associated with the designation of the employees.
Having been provided costly furniture with well-decorated and
furnished office, employees take great pride in their work as this
method of motivation creates the correct level of respect for the
importance and value of their character, efforts and achievements.
The seniority of an employee in itself encompasses an additional
implied meaning that extolls the employees’ loyalty, patience,
truthfulness and trustworthiness, sense of responsibility and
steadiness. When an individual makes a start his career wishing for
his professional progress and becomes a part of an organization,
brings along him a bundle of hopes and ambitions and commitments. In
order that he could take care of his family members satisfactorily, he
regards the means his livelihood as valuable to fulfil his
responsibilities and personal goals. Such employees are responsive and
meticulous in doing their duties. Hence, in view of the aforementioned
facts, the assurance of job security with economic measures within the
organization plays a significant role while motivating them to
continue extending their earnest services.
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Motivating people- Getting beyond money Case Analysis
Now looking to the other side of the coin, evidence suggests that non-
financial motivational technique has a favourable effect on the
process of job enrichment or job enlargement entitling those employees
who are desirous. They would rather want professional development than
adhere to the routine job activities. To them job enrichment or
professional success in terms of higher positions is more important
than maintaining seniority level with the same nature of job. Yet
again, there is a need of a fair assessment so that the employees who
deserve may be benefited.
As a final point, motivation should not be taken in isolation. It is
integral to the success of a business. Motivation is solely a
psychological process being originated from the needs and drives and
actions of the employees. There are various factors to be construed in
the process of motivation. It is thus necessary for a business or
Human Resource Management to understand the situations consenting to
give encouraging response while offering financial or non-financial
incentives that the employees can be gratified and take pride in being
associated with the organization.
Q3.Explain the challenges to implement non-financial motivators in an organization.
Explanation
The relationship between the employer and the employee is a maximum
motivation factor for the employee. Motivational methods used by a
manager, through which the managers shows that he cares about his
employees are the following (without limiting only to financial
motivators): Page 17 of 31
Motivating people- Getting beyond money Case Analysis
Effective communication: an active listening of the manager to
messages sent by the caller, followed by a clear feedback from
him;
Positive Feedback: "praise in public and correct in private";
Extension/enrichment of the job: potential noting from the
manager of each employee and encourage their development;
Management by objectives: joint participation in setting goals,
achieving them and evaluation of performances of each employee;
Quality circles: the manager proposes to employees to form teams
to provide solutions in solving a problem which considers product
quality;
Clarity of the tasks: the manager must provide sufficient
information on the tasks assigned to employees to understand what
is desired of them;
Brainstorming: a group specific technique designed to generate a
range of ideas to solve problems;
Delegation: the manager can empower a person / group of
persons,time-bound execution, supervision or an organization of a
project.
Results of implementing:
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Motivating people- Getting beyond money Case Analysis
In the current economic context, the optimal solution for a certain
class of problems arising in the work of an organization.
At the organizational level the practical application of non-financial
motivation can bring the following results:
Identifying motivational factors of employees in the company, to
increase professional performance;
Aligning individual objectivs to general objectivs of the
society and establishing the means by which they will be
achieved;
Cultivation of the spirit of cohesion, belonging and shared
responsibility for the success or failure of the team;
"Pushing" the staff into action during peak periods or in
critical moments of the company when there is a need for
additional force and the company's buget doesn't allow
additional staff hiring;
Employees determination to get involved in objectives
realisation of development of the company and their awareness of
the role they have in it;
Reducing staff turnover in key functions of the company and
increasing loyalty to it;
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Motivating people- Getting beyond money Case Analysis
Competitive business environment by developing staff desire to
succeed;
Increasing the quality of products / services, especially of
sales,without the need for additional production costs and
marketing expenses;
Improving the internal and the external image of the company and
building an internal climate of valuing work well done.
Motivational techniques, regardless of how their classification
or their use, is based on the following premise: the greater the
feelings of belonging and involvement in that firm, the greater
the responsibility, recognition, respect or status granted
staff. Non-financial motivation Policy should stimulate
recognition not only vertically but also horizontally (manager-
employee and employee-employee).employees in creating the
evaluation grid, after which staff will be rewarded,
acknowledging their employees their importance within the team
and organization.
Non-financial motivation versus financial motivation
Considering that every person is motivated by different things,
according to individual circumstances and the situation it's in at a
certain moment, managers must be able to identify motivational factors
which to accommodate their wishes and needs.
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Motivating people- Getting beyond money Case Analysis
It is clear that, in an organization which wants performance, we can't
have just a single type of motivation, but comparing with financial
motivation, the non-financial one represents a series of benefits:
Low costs;
It has a stronger effect and remains longer embedded in the mind
of the employee as it appeals in its 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.
Application of non-financial motivation
The relationship between the employer and the employee is a maximum
motivation factor for the employee. Motivational methods used by a
manager, through which the managers shows that he cares about his
employees are the following (without limiting only to those):
Effective communication: an active listening of the manager to
messages sent by the caller, followed by a clear feedback from
him;
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Motivating people- Getting beyond money Case Analysis
Positive Feedback: "praise in public and correct in private";
Extension/enrichment of the job: potential noting from the
manager of each employee and encourage their development;
Management by objectives: joint participation in setting goals,
achieving them and evaluation of performances of each employee;
Quality circles: the manager proposes to employees to form teams
to provide solutions in solving a problem which considers product
quality;
Clarity of the tasks: the manager must provide sufficient
information on the tasks assigned to employees to understand what
is desired of them;
Brainstorming: a group specific technique designed to generate a
range of ideas to solve problems;
Delegation: the manager can empower a person / group of persons,
time-bound execution, supervision or an organization of a
project.
Motivational techniques, regardless of how their classification or
their use, is based on the following premise: the greater the feelings
of belonging and involvement in that firm, the greater the
responsibility, recognition, respect or status granted staff. Non-
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Motivating people- Getting beyond money Case Analysis
financial motivation Policy should stimulate recognition not only
vertically but also horizontally (manager-employee and employee -
employee).
“The heart of motivation is to give people what they really want most from work". --
Twyla Dell
Sustainability of the motivation is very important and to sustain its
high level organizations are required to establish reliable and
comprehensive systems, policies and processes in the workplace. Long-
term motivation of your employees will take you to the desired
organizational outcomes such as high level of productivity, high sales
and low turnover rate.
The employee's motivation depends on the influence behavior. Once
aware of this, the chance of achieving better results at both
organizational and individual levels. Managers cannot order their
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Motivating people- Getting beyond money Case Analysis
employees to be motivated, what they can do instead, is to create an
atmosphere through which to cultivate accountability, dedication and
improvement at work. Some managers choose a shorter path, but not
effective- they try to motivate trough fear. This method, however,
quickly loses the effect. True managers motivate trough their
personality and authority, not trough fear.
To use the full potential of employees and managers modern managers
and organization changed their approach from "giving orders and
control" to” consult and support" as effective ways for employee
motivation. This change of attitude began when managers understood
that recognizing achievements or recognizing the good performance is
more effective than punishment for poor performance.
Non-financial motivation is the integration of a system of reward and
recognitions (Rewards and Recognition - R & R), which doesn't involve
giving money directly to the employee. Motivational policies,
financial and non-financial, should not be designed in isolation but
in line with the organization's other policies and objectives.
Analysis of their implementation will not be limited to a short period
of time, but will take into account the effects of these on a longer
time horizon.
Q4. Can you suggest how potentially an organization can overcome these
challenges?
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Motivating people- Getting beyond money Case Analysis
Motivation is very important for any organization to increase the
productivity and the ability of the employees for that specific
organization Motivation is the act of giving somebody a reason or
incentive to do something. It also means giving somebody hope or
support to perform particular tasks. Motivation is the act of giving
somebody a reason or incentive to do something. It also means giving
somebody hope or support to perform particular tasks. The rewards can
be financial and nonfinancial. But this is very challenging for an
organization to overcome these challenge. If the employees are only
driven by money and nothing else in that case non-financial motivators
will not create any positive impact regarding their motivation level
or performance.
The most basic way is to give a verbal compliment to the
employee. This could be an acknowledgement of job well done, a
good sale, or a particular action that the employee did that
benefitted the organization. The compliment could be done in
public or in private. This gives the employee reassurance that
they are doing what their managers are looking for and that they
are paying attention to the work being done.
The manager could send the employee an E-mail that explains the
appreciation of the employee.
A manager can also publically acknowledge an employee in front of
their peers at a meeting, presentation, in the office, etc.
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To make them rationalized with non-financial motivations
organization need to have a long term plan.
The manager must provide sufficient information on the tasks
assigned to employees to understand what is desired of them;
The manager can empower a person / group of persons, time-bound
execution, supervision or an organization of a project.
The strategy can be initiated through some informal survey like
whether the employees are craving for a picnic or they prefer a
better recognition for their work. If the employees are standing
for the first one then an annual picnic with company’s cost can
make them motivated a lot. On the other hand, if the employees
are feeling that they are not acknowledged then the Management
will have to work a bit. For instance, a long term service award
(may be a gold medal) can be introduced who are serving the
organization for more than 15 years, a letter of appreciation by
the Managing Director for those who have not taken any casual
leave for 01 year, a dinner with the Managing Director for the
sales team who have exceeded their target sales etc.
At last we have to be pragmatic in a sense to get a clear and
accurate insight about the mind set up of the employees. Because
this is the only way through which the organization can
strategize its policy regarding the non-financial motivation. The
organization will have to read the mind first and then it will
gratify them as par their (the employees) taste and preference.
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Motivating people- Getting beyond money Case Analysis
Motivation is a complex concept and can help or harm an organization
depending on how it is used within an organization. If a manager takes
the time to understand the needs of his/her employees, then the
recognition can be extremely useful. Managers are not the only ones
who can recognize others in the workplace. Employees can recognize
each other as well. It has been proven to that one cannot directly
motivate someone else, but they can give them the tools they need to
motivate themselves. Managers are the resources for employees and they
should make sure that their work environment is pleasant and
desirable. By this way organization can overcome these challenges.
Conclusion:
Economic downturns can make for difficult human resource situations.
Apathy, reductions in workforce and high turnover can have a far
reaching impact that can spiral out of control. Business performance
can suffer because employees feel underappreciated and are worried
about whether their position will be eliminated, or whether sweeping
organizational changes will result in a loss of job status.Even
through economic turmoil, there are two types of factors thatPage 27 of 31
Motivating people- Getting beyond money Case Analysis
influence employee motivation and satisfaction – nonfinancial factors
and financial factors. Balancing these factors can be tricky, but
there is a science to improving employee morale when weighing factors
that motivate employees.For today’s organizations, the problem of how
to effectively motivate staff is becoming an increasingly important
issue. However, despite over 50 years organizational research that
demonstrates that employees are motivated by more than just money
alone, many organizations continue to rely solely on financial
rewards. It is perhaps understandable for organizations to make
simplistic assumptions about the ability of financial rewards to
influence employee motivation. Financial rewards are important as a
mechanism to aid recruit and retain talent, and as a means of
providing tangible recognition of effort or contribution. And after
all, people generally want more money, don’t they? Yet the consequence
of such an assumption has been to overemphasize the importance of
financial reward. Motivating employees is an important factor to urge
them work harder and have higher productivity. However, if use money
to motivate only, it is difficult to fair to each employee. Therefore,
employers should use non – financial motivators. Non – financial
rewards are more important than money. It is clear that there are
several factors why motivating employees. In spite of giving wages and
salaries, non – financial rewards also need to be given. As this case
study analysis will illustrate, there are a whole host of non-
financial motivators that can act to influence employee behaviour and
enhance employee motivation. As many organizations are beginning to
realise competitive difference may ultimately be made by non-financial
motivators.
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Motivating people- Getting beyond money Case Analysis
References
Works Cited
8 Helpful Factors for Motivating the Employees with Non-financial
Rewards
by Saritha Pujari
http://www.yourarticlelibrary.com/business-communication/8-
helpful-factors-for-motivating-the-employees-with-non-financial-
rewards/1008/
The Importance of Non-financial Rewards for the Organization
by Scott Thompson, Demand Media
http://smallbusiness.chron.com/importance-nonfinancial-rewards-
organization-45146.html
Burton , K. (2012). A Study of Motivation: How to Get Your
Employees Moving. PEA Honors Thesis Spring 2012 Indiana
University.
Page 29 of 31
Motivating people- Getting beyond money Case Analysis
Laakso, L. (2012). FINANCIAL AND NONFINANCIAL REWARDS ON EMPLOYEE
MOTIVATION. Bachelor’s Thesis (Turku University of Applied
Sciences).
NEAGU, A. C. (2014). Non Financial Motivation of Staff Challenges
and Solutions. University of Bucharest.
Siddiqui, F. (2014, July 6). https://www.linkedin.com/today.
Retrieved August 1, 2014, from www.linkedin.com:
https://www.linkedin.com/today/post/article/20140706140050-
59817714-non-financial-motivation-factors-how-non-financial-
motivational-factors-are-important-to-business-management
Silverman, M. (2006). Non-Financial Recognition (The Most
Effective of rewards?) Institute of Employment Studies.
http://www.employment-studies.co.uk/pdflibrary/mp4.pdf
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