What do you see as the advantages and disadvantages of using

What do you see as the advantages and disadvantages of using money as a motivation tool for employees?

Do the shortfalls of monetary rewards outweigh their benefits?

Solution

INTRODUCTION:

To begin with let us understand the meaning of motivation. Motivation refers to the process of giving direction to the efforts of an individual and making sure they work in the right direction. Motivation is the tool that is responsible to boost up the moral of any employee and make them work with more dedication. It is the responsibility of the superiors to make sure that the employees are all time motivated to work for the betterment of the organization. There are two ways to provide motivation to the employees:

MONEY AS A MOTIVATIONAL TOOL:

Money is very important to run the life smoothly. People go for jobs in order to earn money and live their lives properly. Money serves as a motivational tool for most of the employees. Though it is not the only motivational tool. Without any salary the employees motivational level will deteriorate with time and they will lose interest in their work.

Merits of using money as a motivational tool:

Demerits of using money as a motivational tool:

DO THE SHORTFALLS OF MONETARY REWARDS OUTWEIGH THEIR BENEFITS?

According to me, paying out less monetary rewards to the employees will outweigh their benefits, but not fully. Less money means reduction in the motivational level of the employees and distraction of their efforts from work. They will not work effectively and enthusiastically for the welfare of the organization and can even think of switching the company. On the other hand if an employee is paid bit less and is also provided with non financial rewards, then also he will be motivated enough to work effectively. Non financial rewards can be paid in the form of recognition in the workplace, flexible working environment, supportive supervision, praise for the efforts put, job security, work life balance, offering leadership opportunities etc.

A balance should be maintained between the financial and non financial rewards and the superior must understand when a particular employee requires money and when he requires praise in order to boost up his motivational levels. All employees are not the same and they are not motivated by money only. For one employee money can be a motivational tool but for the other employee in the same organization recognition and status can act as a tool for motivation. So it is the duty of the superior to balance out both the tools of motivation and give importance to both monetary and non monetary rewards to motivate different employees.