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Motivation is a desire to achieve a goal and it is combined with the energy to work towards that goal. (http://www.unisanet.unisa.edu.au/motivation/Pages/What%20is%20Motivation.htm, 14 March 2011). It is described as a psychological feature that arouses an organism to action toward a desired goal. (http://www.thefreedictionary.com/motivation, 14 March 2011). Motivation can either be intrinsic or extrinsic. Intrinsic motivation refers to motivation that is driven by an interest or enjoyment in the task itself and it exists within individual. (http://en.wikipedia.org/wiki/Motivation, 14 March 2011). For example, a student may want to get good grade on assignment, but if the assignment does not interest that student, then the possibility of good grade is not enough to maintain that student motivation to put any effort into the project. (http://giftedkids.about.com/od/glossary/g/intrinsic.htm, 14 March 2011).
On the other hand, extrinsic motivation is that which comes from outside an individual. The motivating factors are external like rewards such as money or grades. For example, a student may dislike the assignment but the possibility of a good grade will be enough to keep the student motivated in order for him or her to put forth the effort to do well on task. (http://giftedkids.about.com/od/glossary/g/extrinsic.htm, 14 March 2011).
Motivation acts as fuel. It's true that a motor cannot work without a fuel. In the same way the employees cannot work in an organisation without motivation. (http://www.financialcrisis2009.org/forum/Corporations/What-is-the-role-of-motivation-in-organisation-developement-208520.htm, 14 March 2011). Motivation can be both positive and negative. Positive motivation enables people to do their work in a best way possible and also helps them to improve their performance at work. Better facilities and reward are provided under positive motivation. Negative motivation puts major emphasis in controlling negative aspects of work and looks to create a sense of fear in the minds of employee. It basically means that if an employee fails to complete a given task, he must be punished. (http://www.openlearningworld.com/olw/courses/books/Motivation%20Defined/Motivation%20Defined/Positive%20and%20Negative%20Motivation.html, 14 March, 2011)
The key to organizational success is motivating others to do their best. Work motivation is the drive to satisfy a need, ultimately comes from within an individual. Work motivation puts human resource into action, builds friendly relationship, and leads to stability of workforce. Work motivation acts as an important instrument to both individual and business. It is important to individual as it will help him to achieve his personal goals, have high level of job satisfaction. Motivation will also lead to self-development of an individual and also individual would gain by working with dynamic team. On the other hand, work motivation is also important for business firms because motivation will lead to an optimistic and challenging attitude at work place and also more number of individual employee contributions will act as profit and success for business firms. (http://www.managementstudyguide.com/importance_of_motivation.htm, 14 March 2011)
In support of these, it is believed by many organizations that employee reward could act as a major incentive for work motivation at the organization. Employee reward covers how people are rewarded in accordance with their value to an organization. It is about both financial and non-financial rewards and embraces the strategies, policies, structures and process used to develop and maintain reward system. People value makes a considerable impact on the effectiveness of the organization and is the heart of employment relationship. Integrated approaches to human resource management would mean aspects like learning and development or employee relation have to be considered together so that mutual reinforcing can be developed. It's also important for the organization to know that getting employee scheme wrong could have negative impact on the working of the enterprise. For example, if an employee has completed a task given to him by his manager and he is expecting increase in his pay from his boss but instead boss greats him only with a smile. So this could have a bad impact on employee and his effort towards work gradually decreases, which in turn causes problems to organization. Therefore, it has now become a regular practice by major companies to invest excessive amount of money in making their employee productive. (http://www.cipd.co.uk/NR/rdonlyres/DEA65372-D105-4A6B-A410-2C677F021155/0/employee_reward.pdf, 15 March 2011)
The biggest debate for an organisation at the economy level is to develop high level of work motivation among its employees. For this, many organisations have adopted the incentive of rewarding the employees in more number of ways than a normal salary. It is a belief in many organisations that employee reward schemes result in good level of work motivation from employees which inturn leads to huge contribution behind the success of the organisation. Reward schemes at good level bring huge benefit to the company or enterprise, like it helps to create a climate of healthy competition within the organisation or sometimes if the remuneration among employee is limited, then it will create competition among the staff, which inturn creates self-perpetuating increase in results. It must also be known by the organisation reward scheme could also have negative impact on working of organisation if the scheme is not implemented in a fair and thoughtful way. For example, if an organisation plans that bonus would be given only those employee who perform exceedly well in their task, keeping in mind that this will motivate the employees to perform above average level but what might happen that employees who underperform would be obsessed by pay cut and this may further demotivate them.(http://www.aboutemployeebenefits.co.uk/advantages-disadvantages-incentive-schemes.html, 15 March 2011)
Reward schemes could vary from individual to individual depending on their task performance. Reward incentives granted to employees well may depend on the type of jobs. In case of extreme jobs, it is seen that employees do not expect extra incentives from their company, because the people associated with these jobs are paid very highly, so they don't demand their company or boss for any more rewards. Employees in such jobs work for almost 18 hours a day and there is other demand with what their company approach to them, for example - 24/7 service to clients, frequent travel to different countries which involves adjusting to different time zones. But these people are usually classified as top earning person of society or community. For these individuals their salary or pay acts as a major bonus to them to keep their motivational level high. A survey conducted by Sylvia Ann Hewlett and Carolyn Buck Luce (2006) suggest that people in extreme jobs enjoy their work and feel fulfilled by what they are rewarded. As stated in (Buchanan and Huczynski, 2010, p264)
On the other hand, people who consider their job boreout, needs to be given or told about the various reward schemes that the organisation is looking to implement. The organisation must also look that employee themselves feel beneficial on introduction to new schemes. In the situation of boreout jobs, the organisation needs to come up with various incentive schemes for the employees, so that unchallenging and monotonous work turns challenging and interesting for the employees. For example, if a new sales target level is planned by the company but no extra pay or reward is provided to employees then this task would act as demotivation to them. But if the company manager promises bonus or other rewarding incentive, then employees would not hesitate to put extra effort into it as they know that their extra effort would inturn bring them more rewards and in this way organisation too benefits. As stated in (Buchanan and Huczynski, 2010, p265)
For an individual to gain motivation into work, it's important that the individual acquires the characteristics of self-actualization within himself. It means that an individual work upto his full potential when performing a task. This is the quality which every organisation wants its employees to develop. As stated in (Buchanan and Huczynski, 2010, p268). For implementing proper motivation it is necessary that an enterprise plan a process. Theories of motivation that focus on how choices are made with respect to goals are known as process theories. An organisation needs to keep theories of work motivation in mind when putting the reward scheme into action. There are two important theory of motivation which relates to reward schemes. Firstly, the process theory of motivation is equity theory. It means an individual must receive the reward equal to the amount of effort put by him into his work. It is based on perception of fair treatment. Therefore, this theory tells that employee reward should be just and equitable to the amount of work put up by him. As mentioned in (Buchanan and Huczynski, 2010, p271).
Secondly, the process theory of motivation is expectancy. This theory holds a high position for work motivation. It's the process through which outcomes become desirable. But this could sometime be misunderstood. For example, an employee would have worked day and night in accomplishing a huge task keeping in mind that his boss would increase his pay on completion of project. But it may happen that boss delivers a few words of appreciation to him rather than increasing his pay. So in this case employee morale goes down as it was totally not what he expected. This also has a negative impact on his character and it inturn harms the organisations success. As published in (Buchanan and Huczynski, 2010, p273). Thus, it is important for organisation to understand its employees and make them feel that their success depends on the organisations success.
It is true that there is no simple answer to the question of how to motivate people. Money act as an important incentive for employee motivation, but it always does not help. It is important for the organization to know few of the pertinent theories bearing on human motivation and it could be balanced by some of the practical factors like good working condition, company loyalty to employees etc, which could lead to excellence. Motivation to success is paramount to employee success. The sources of motivation are complex. Every organization wants success to stand in the market or economy. For this it adopts various methods, one of which is employee motivation. It adopts different strategies to maintain motivation among its employees. (http://www.usask.ca/education/coursework/802papers/Frith/Motivation.HTM, 16 March 2011)
But this act may prove to be useless if the leaders do not understand how to recognize and reward the individuals who are under them. A good leader is always required by the organization so that he could use his ability to make his followers feel important. In order to be a good leader, inspiration to follower is necessary. One of the major characteristics required by leader is to fulfill any promises made by him. For example, never scheduling a meeting with the employees that the leader might not be able to attend. Failing to make promises indicate a weak leader who does not stick to his commitments. On the other hand, fulfilling a promise creates a positive domino effect. Therefore it is said, the motivation to learn is personal and comes from within and individual, but it can be affected by external factors. (http://www.nwlink.com/~donclark/leader/leadmot.html, 16 March 2011)