Role of Non-Financial Incentives in Motivation

Role of Non-Financial Incentives in Motivation

Financial incentive do not work for always to motivate the people at work. Infect, when the psychological and security needs are satisfied with the help of money, money ceases to be the motivating force; it becomes the maintenance factor according to Herzberg. Therefore the workers do not ever run after money. They have other needs also. They need status arid recognition in the society; they want to fulfill their egoistic needs and they want to attain something in their lives. In order to motivate the workers having these needs, management may take the help of following non financial incentives:

Competition

Competition is a kind of non financial incentive. If there is a healthy competition among the individual workers or groups of workers, it will lead them to get their personal or group goals in a better way.

Praise

Praise satisfies one’s needs: infect, praise is more effective than any other incentive2 However, this incentive should be used with great care because praising an incompetent worker would create resentment among competent workers. Of course, occasionally,, a pat on the back of an incompetent worker may act as an incentive to him for improvement.

Knowledge of the Results

Knowledge of the results leads to worker satisfaction. A worker desires to know the result of his performance. A worker gets satisfaction when his superior appreciates the work the has done. In today’s industry, the production workers have no contact with the consumers and so they cannot get the reaction of their efforts from the consumers. However, they can be motivated to much extent if they are told the rating of their performance.

Workers Participation in Management

Workers participation in management provides a significant incentive to, the workers. It gives them psychological satisfaction that their voice is being heard as workers’ participation in management provides for two way communication.

Suggestion System

Suggestion system is an incentive which fulfils many needs of the workers. Many organizations which use the suggestion system make use of cash awards for useful suggestions. They, sometimes, publish the worker’s name with his photograph in the company’s magazine. This motivates the workers to be in search for something which can be of greater use to the organization.

Opportunity for Growth

Opportunity for growth is another incentive. If the workers are provided opportunities for their advancement and growth and to develop their personality, they feel very much satisfied and become more committed to organization objectives.