Importance Of Both Financial And Non Financial Motivation Commerce Essay

Importance Of Both Financial And Non Financial Motivation Commerce look forIt is widely believed that an effective management system of motivation in a company will instanter influence employees to achieve their goals and businesses objectives (Accel-team, 2010). According to Accel-team (2010), motivation privy be explained in fiscal and non-financial aspects. Financial rewards can be defined as using m angiotensin-converting enzymey as an incentive to employees for improving productivity. In contrast, non-financial rewards locomote employees by job elaboration, team accomplishmenting, and bore control circles etc. The below argument will taper that financial and non-financial motivations atomic number 18 both determinants which affect employees through investigation.Taloy year pointed out that the offend(p) way to impel people at pay off in is by money. In other words, those workers who produce much in a fair day can receive more payment (Accel-team, 2010). The main f lat coat for workers to go to work is that they can earn money to consume (Accel-team, 2010). Thus, workers are 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 rattling difficult to organize hearty (Thetimes100, 2011). However, Tesco makes good use of incentive payment to incite employees (Thetimes100, 2011). Tesco not scarce give employees increased income, but also use targeted benefit to support the varied lifestyles of employees (Thetimes100, 2011).Furthermore, Fringe benefits pick out to provide their worker some in kind rather than in crash (Accel-team, 2010). For instance, company cars and cloak-and-dagger health insurance 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 c ompanies to best work for (Ezinearticles, 2008). Google provide 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 series of Fringe benefits not only reduces the number of sick-leave days, but also can bring a good surround for workers.Nevertheless, financial rewards are not the only method that satisfies employees. There are non-financial rewards, which are as cardinal as financial reward (Changingminds, 2011). Fredrick Herzberg of contracts has claimed that both financial and non-financial rewards fulfill significant roles in motivation (Changingminds, 2011). This is show in Figure 1, physiological need is at the basis of the pyramid, such as wages for worker to be used each week or providing workers a good working environment (Changingminds, 2011). If the physiological needs are satisfied, employees needs will move to the contiguous level which is called s afety needs, such as living in a safe area or 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 necessary for business to consider more in non-financial rewards such as job enlargement and team work persona control circles. Job enlargement involves giving 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 tone bored. For example, KFC invested more than 240 million Yuan 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 train their employees is that it aims to improve employees ability to slew with different jobs and tasks ( Robroad, nd).Meanwhile, team work is anothe r good way to combine polled talents 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 consequently 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 approach pattern by using ultimate driving machine (Swampfox, nd).Finally, quality control circles are able to improve the nature of job directly. Staff can meet on a regular basis to study and solve production problems. 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 making 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 t he problem (Ocities, nd). Therefore, non-financial motivation such as job enlargement, team work and quality control circles are also effective ways to motivate employees.In summary, it is necessary 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 clap 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 most use of them to motivate the staffs.References regionAccel-team (2010) Online Employee Motivation Theory and practiceAvailable athttp//www.accel-teamHYPERLINK http//www.accel-team.com/motivation/index.html.com/motivation/index.htmlAccess determine 12, March, 2011Changingminds (2011) Online Maslows hierarchyAvailable athttp//changingminds.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 carrying into action Center in GreerAvailable at http//www.swampfox.ws/bmw-delivers-teamwork-at-performance-center-in-g reerAccess Date 12, March, 2011Thetimes100 (2011) Online 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