EMPLOYEE MOTIVATION ON FINANCIAL AND NON-FINANCIAL REWARDS IN APPAREL INDUSTRY
Figure 1 (Kumar,
D., Hossain, M.Z. and Nasrin, M.S., 2015)
Motivation is the inducement of a desired behavior with in subordinates with a view of channeling their efforts and activity to achieve an organization’s goals. He adds that it’s an internal drive to satisfy an unsatisfied need in an organization and is also known as an incentive action. (Balunywa, 2005)
TYPES OF MOTIVATION
Figure 2 (Benabou, R. and Tirole, J., 2003)
1. Intrinsic Motivation: - individual motivated from his life system
2. Extrinsic Motivation: - individual motivation is stimulated by external factors
TYPES OF REWARDS FOR EMPLOYEE MOTIVATION
Figure 3 (Killeen, P.R., 1985)
1. Financial Rewards:-
Financial rewards are identified as the most functional tool for managers to motivate employees in order to influence their behavior positively to attain organization goals.
E.g.:- Cash, Bonus, profit sharing and share options
2. Non-financial Rewards: -
Rewards enhance the level of productivity and performance at job whether it’s a first time performance or repeated activity at the job in a progressive way.
E.g.:- Recognition, Flexible work
schedule, Feedback and praising
MEASURING THE EMPLOYEE MOTIVATION ON FINANCIAL AND NON FINANCIAL REWARDS BY HERZBERG TWO FACTOR THOERY TO APPAREL INDUSTRY
Figure 4 (Hertzberg, 1966)
There are two type of factors mainly
influence on employee motivation according to the Herzberg theory
1. Motivational factors
The motivational factors which include the
non-financial factors of achievement, Recognition and advancement. According to
(Herzberg, 1966) these factors directly influence on the motivation of
employees.
2. Hygiene factors
When these hygiene factor not present it
will demotivate the people. These factors are financial factors of Salary and
base wage. According to the theory these Hygiene factors also directly impact
on the employee motivation.
CONCLUSION
According to the Herzberg two factor theory
the financial and non-financial rewards are directly influence the employee
motivation in the apparel firm.in according to that the industry should have to
provide the proper rewards for the employees to make them motivate and make
more profit on it.
REFERNCES
Benabou, R.
and Tirole, J., 2003. Intrinsic and extrinsic motivation. The review of
economic studies, 70(3), pp.489-520
Kumar, D.,
Hossain, M.Z. and Nasrin, M.S., 2015. Impact of non-financial rewards on
employee motivation. Asian Accounting and Auditing Advancement, 5(1),
pp.18-25.
Killeen,
P.R., 1985. Incentive theory: IV. Magnitude of reward. Journal of the
experimental analysis of behavior, 43(3), pp.407-417.
Herzberg, F., 1966. Work and the nature of man.
Cleveland: World Pub. Co
Balunywa,
T., 2005. An examination of leadership and employee creativity: The relevance
of traits and relationships. Kampala: Makerere University.
Not only for apparel industry good thought for all other industries as well. Financial and non financial benefits is the most important point to reduce employee turnover. Motivated employee will not leave the organisation.
ReplyDeleteAgreed with your comment. thanks for the feedback!
DeleteI would like to add Non financial one of the biggest factor is how much distance or closer with non management & management. Thks
ReplyDeleteYah that's right. thanks for adding more knowledge.
DeleteMotivation is the key factor influencing people in organizations, and people motivation is achieving what management expects from them. Thanks for sharing this, it's a good one.
ReplyDeleteThanks for your valuable comment!
DeleteMotivation is very important to keep people satisfaction , good article
ReplyDeleteThanks for your valuable feedback!
DeleteSince I'm also from the apparel industry, thought of giving a comment on your blog. Honestly we are practicing this "Financial Rewarding" in our company. Not only for the junior level, but even the senior managers. We are doing a profit sharing in every year depending on the profitability of the company. So every one will look after the business as their own home. They will think twice before they spend even single rupee. Cutting our operation cost is also important similar to earn profit. Otherwise, no matter how much we earn, our profitability will not increase. You selected the good topic for the blog. Cheers !
ReplyDeleteThanks for sharing your thoughts brother. Really appreciate!
DeleteEmployee mortivation is very important topic for every industry not only apparel side.
ReplyDeleteImportant blog thank s for sharing
Thanks for your feedback!
DeleteEmployee motivation one of key factor to retain trained workforce. Management need to understand the satisfactory level of employee from the motivation activities .Otherwise it can be negative impact
ReplyDeleteagreed with you.Thanks for the feedback.
DeleteIn any organizer if employees are motivated and satisfied, they will do their jobs well and actively. Here you have mentioned financial and non-financial rewards for motivation of employee. This is help me to improve my knowledge. Good article.
ReplyDeleteglad to hear that and thanks for the feedback.
DeleteIn apparel industry, the financial and non financial benefits directly influence to motivation.
ReplyDeleteexactly. thanks for the comment.
DeleteMotivation is playing a leading role in every organization which directly affect organizational success and employee job satisfaction. This helps with reducing embezzlement in financial institutes as well. As I'm not quite aware of non-financial businesses, It must be helping with conducting a reliable workforce.
ReplyDeleteFinancial rewards and non-financial rewards are direct influence to employee motivation Lakshmi. Thanks for your feedback.
DeleteGood topic for make better discussion. By using financial or non financial reward method for motivating the workers is must needed fact in apparel industry. because without proper motivated team members company will not grow up as superiors wish.
ReplyDeleteagreed. Thanks for your feedback sampath.
DeleteEmployee motivation in either form will have positive pay off. Motivated employees will always stretch to deliver and will be asserts.
ReplyDeleteAgreed with you. Thanks for the comment!
DeleteEmployee motivation determines how hard they are eager to work for an employer and how productive it is. An organization can use both financial and non-financial incentives to inspire its staff Thank you for sharing.
ReplyDeleteAgreed with you. Thanks for the comment!
DeleteNot only apparel industry, staff motivation is very important in all organizations.Employee motivation will enhance productivity. Motivated employees do things without any command. Got knowledge about apparel industry staff motivation. Thank you
ReplyDeleteyes I'm agreed with you. Thanks for the comment!
DeleteRewarding take a great part of employees motivation in any industries. Rewarding may boost the the enthusiasm and energy particular employee and it leads to deliver best output to the organisation.
ReplyDeleteExactly! agreed with you. Thanks for the comment!
DeleteIt is essential that an organisation keep their employees satisfied and motivated in order to achieve their organisational objectives meaningfully. Rewarding system is one way of keeping the employees motivated. You have focused on non financial rewards as well, which is indeed a very essential part of the rewarding mechanism, since it helps improve the well being of an employee. This is a very interesting article!
ReplyDeleteAgreed with you and thanks for your comment!
DeleteAll Employees need recognition because it is a strong non-financial motivator. Most of the employees are working because their Leaders always appreciate. They do well and also encourage them when they face some challenges. Individuals also like to share their achievements with others and have them recognized and celebrated. When this need is satisfied, it works as an excellent motivator. If employers attached to financial incentive alone contribution and achievement it is most possible that the employee’s objective will become modified to secure the pay and nothing more. Money motivates for little when the requirement of money increase again the financial motivation becomes as demand.
ReplyDeleteAgreed with you and thanks for your comment!
Delete