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Importance of Motivation in Management

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Everything you need to know about the importance and significance of motivation.

The effective direction, motivation and leadership, takes a business forward. Amongst all, motivation plays the key role as it helps to identify and satisfy the needs of employees and the organisation.

Managers use various motivational programmes to encourage employees to achieve their maximum potential leading to improved organisational performance.

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Motivation is the core of Management. A team of highly qualified and motivated employees is necessary for achieving the objectives of an organization.

The importance of motivation can be studied under the following heads:-

1. Improves Performance Level 2. Indifferent Attitudes can be Changed 3. Reduction in Resistance to Change 4. Reduction of Employee Turnover and Absenteeism 5. Healthy Corporate Image

6. Productive Use of Resources 7. Increased Efficiency and Output 8. Achievement of Goals 9. Development of Friendly Relationships 10. Stability in Work Force

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11. Combines Ability with Willingness 12. Need-Based Motivation 13. Development of Leaders 14. Better Industrial Relations 15. Easier Selection 16. Facilitates Change and a Few Others.


Importance and Significance of Motivation for Workers, Employees, Organisation and Business

Importance of Motivation – In an Organisation

Motivation is an important part of managing that inspires subordinates/employees to maintain and/or improve their efficiencies.

Importance of motivation for an organisation can be examined on the basis of the following factors:

Importance # 1. Improves Performance Level:

Motivated employees have the ability and willing­ness to work and improve their performance level by obtaining relevant education and training. For example, a highly educated employee with experience of working in abroad is employed because this employee has new learning from her/his experiences to share, implement and improve performance levels of themselves and her/his colleagues.

Importance # 2. Indifferent Attitudes can be Changed:

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Motivated employees attempt to change indifferent or negative attitudes of employees by engaging in supporting conversations without resorting to belittling and complaining comments, speaking up with a dismissive employee and addressing an employee’s inability to work in a team situation. Motivated employees could also privately discuss negative attitudes, recognise HR policies and procedures and involve HR, to make them listen their problems and support them. With such high morale building exercises the possibility of conflicts and industrial disputes could be minimal.

Importance # 3. Reduction in Resistance to Change:

Changes can be uncomfortable and require employees to think and/or act differently. Changes in a business may seem as a sign of uncertainty that may further lead to anxiety among employees. Accordingly, employees should be motivated in an organisation to embrace changes (if any) positively by developing transparency and trust during the process of change in an organisation. This motivation can be created by the management along with their employees by collectively, identifying and recognising the benefits of possible changes.

Importance # 4. Reduction of Employee Turnover and Absenteeism:

Employee turnover is a measurement of the term or number of years an employee stays and/or replaced in the company. Highly motivated employees are considered to be the most reliable and valuable assets to the organisation. They are more loyal, punctual and regular in their work schedule and stay on-job for a longer period of time in the organisation. In case of poor working conditions, lack of recognition and poor relations with colleagues and superiors absenteeism could increase as these conditions demotivate employees to work harder.

Importance # 5. Healthy Corporate Image:

Motivation also helps organisations in improving their image due to efficient performance, maintenance of self-discipline and productive internal environment. It creates a good impression and enhanced image among people outside the organisation.


Importance of Motivation – For Members of an Organisation

If the members of an organisation are effectively motivated then from such motivation the expected results are that –

(1) All the members will try to co-operate and co-ordinate their activities with a view to achieve the goals which they are required to achieve.

(2) All the members will do their best to carry out the plans in accordance with the policies and programmes laid down by the organisation.

(3) All the members will also try to be as efficient as possible and will try to improve upon their skill and knowledge so that they may be able to contribute ‘to the progress of the organisation as much as it is possible.

Explaining the importance of motivation E. F. L. Brech writes- The problem of motivation is the key to management actions and in its executive form; it is among the chief task of the General Manager. We may safely lay it down that the system of an organisation is a reflection of the motivation from the top.

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Motivation is getting the members of the term to pull weight effectively, to give their loyalty to the group and organisation, to carry out properly the activities allocated and generally to play an efficient part in the purpose or are the real assets of any organisation. Technology system and methods become ineffective in these, if the people lack zeal and enthusiasm for work.

All administrative action loses its point unless the members of the enterprise are willing to contribute their efforts for the fulfillment of their assigned tasks. To achieve organism and individual goals in an economic and efficient manner, motivation is an important tool in the hands of management to direct the behaviour of sub-ordinates in the desired and appropriate direction and thus minimise the waste of human and other resources.

The importance of motivation in an organisation may be discussed in detail as follows:

1. High Performance Level is Must for an Organisation- Motivated employees put higher performance as compared to other employees. The high performance is a must for an organisation and motivation is a vital requirement for high performance. A number of researches have proved the relationship between high performance and high motivation.

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2. A Motivated Employee Stays in the Organisation More and their Absenteeism is Quite Low- High turnover and absenteeism create many problems in the organisation. Recruiting, training and development of number of new personnel do not only take a long time but it is expensive too. In a competitive economy, this is almost an impossible task. This also affects the reputation of the firm adversely. Motivation brings these rates lower.

3. Willingness of the People to Work- Motivation influences the willingness of people to work and willingness comes from within. A man may have a capacity to work and he may be physically, mentally and technically fit for work but he may not be willing to work. Motivation creates a need and desire on the part of the workman to present his better performance.

4. Motivation is the Basis of Co-Operation to Get the Best Results Out of the Efforts of the Men on the Job- In their zeal to produce more the members work as a team to pull the weight effectively, to show their loyalty to the group and to the organisation, to carry out properly the activities allocated and generally to play an efficient part in achieving the goals which the organisation has undertaken.

5. It is Helpful in Building Good Labour Relations- In an organisation all the members of the staff make their efforts to achieve the objectives of the organisation and carry out the plans in accordance with the policies and programmes laid down by the organisation if the management introduces motivational plans. Both workers and management are benefited by such plans. While efficiency and wages of operating force increase, productivity of the organisation increases due to consolidated efforts of the motivated people.

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6. Improvement of Skill and Knowledge- All the members of an organisation try to be as efficient as possible and to improve upon their skill and knowledge so that they may be able to contribute to the progress of the organisation as much as possible because they know that they will get what has been promised and ultimately they will be able to satisfy their personal as well as social needs.

7. Motivation Builds Human Relations- As the human concept of labour has changed and now labourer is treated as a man and not a commodity. This attitude contributes towards motivating the people at work. Workers are invited to participate in the decision-making function of the management.

8. It is an Important Tool of Management- Motivation is an important tool in the hands of management to direct the behaviour of sub-ordinates in the desired and appropriate direction and thus minimising the wastage of human and other resources. It is the best way to achieve the organisational and individual goals in an economical and efficient manner.


Importance of Motivation – In Modern Organisations

The success of an organisation ultimately depends on how effectively managers are able to motivate their subordinates. In the words of Allen, ‘poorly motivated people can nullify the soundest organisation’.

The following points bring out the importance of motivation in modern organisations:

i. Productive Use of Resources:

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Motivation enables people to convert physical and financial resources into useful products. It helps management to get the best out of human as well as non-human resources.

ii. Increased Efficiency and Output:

Motivation enables people to work enthusiasti­cally. Motivation bridges the gap between the ability to work and the willingness to perform wholeheartedly and thereby, increases the overall efficiency and output. This, ultimately, helps in reducing the cost of operations.

iii. Achievement of Goals:

Motivation causes goal-directed behaviour. It helps people to move in a desired direction and earn rewards.

iv. Development of Friendly Relationships:

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Rewards, promotional opportunities, challenging work etc. are the inducements organisations offer to obtain good results from people. Employees love to work for companies that respect employ­ee contributions. Their morale would be high. This helps in developing cordial relations between management and workers.

v. Stability in Work Force:

Attractive motivational schemes satisfy the need of employees. As a result, their commitment to organisational work increases. Em­ployees do their tasks loyally and enthusiastically. They are not tempted to leave the organisation. This means reduced employee turnover.

Further, satisfaction on the job means reduced absenteeism. Employees attend to their work regularly and sincerely so as to earn rewards. The organisation benefits because it is able to maintain a stable workforce. The skill and competence of employees continue to be available to the organisation. This enhances the image of the firm and helps it to secure the services of competent people.


Importance of Motivation – For Workers

1. Increase in Efficiency:

When workers are motivated to satisfy their lower and higher- order needs, they work to satisfy the organisational needs also. This increases the efficiency of organisational activities.

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2. Communication:

Motivation promotes communication between managers and workers. Both try to understand each other’s needs and satisfy them to the extent possible.

3. Need-Based Motivation:

Managers ascertain prime needs of the employees, physiological or psychological and help them fulfill those needs through motivation. Motivation, thus, helps workers satisfy their personal needs.

4. Combines Ability with Willingness:

Workers are sometimes able but not willing to perform organisational tasks, for lack of motivation. Effective motivation combines ability of the workers with willingness to work and maximises their potential to work.

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5. Reduction in Labour Absenteeism and Turnover:

Workers who are satisfied with their work and work environment contribute positively towards organisational goals and objectives. The rate of absenteeism and turnover, thus, gets reduced.

6. Development of Leaders:

Motivation helps managers know the needs of employees. It helps them guide and lead their behaviour in the right direction. Efficient leaders, thus, develop as a result of effective motivation.


Importance of Motivation – For Employees

1. Higher Efficiency:

Motivation is an effective instrument in the hands of management to maximize efficiency of operations. A worker may be very competent but no activity can take place until the individual is willing to perform that activity. What employees do depends largely on how much and why they want to do. Motivated employees give greater performance than demotivated ones.

2. Optimum Utilization of Resources:

Motivation inspires employees to make possible use of different factors of production. They work whole-heartedly to apply their abilities and potential in minimizing waste and cost. The enterprise can make maximum use of its physical and financial resources.

3. Reduction in Labour Turnover:

Higher motivation leads to job satisfaction in workers. Opportunities for need satisfaction make employees loyal and committed to the organization. As a result labour absenteeism and turnover are low.

4. Better Industrial Relations:

Increased labour productivity in turn results in higher wages for employees. Motivational scheme create integration or individual interests with organizational objectives. There arises a sense of belonging and mutual co­operation at all level. Motivation will foster team spirit among workers. This will reduce labour unrest and create better relations between management and workers.

5. Easier Selection:

An enterprise that offers abundant financial and non-financial incentives enjoys reputation in the labour market. Therefore, it can easily attract competent persons for filling various vacancies.

6. Facilitates Change:

High Motivation helps to reduce resistance to change. An organization has to incorporate changes to cope with environmental changes. Properly Motivated employees accept, introduce and implement these changes keeping the organization effective.


Importance of Motivation – In Management

Management tries to utilise all the sources of production in a best possible manner. This can be achieved only when Employees co-operate in this task. Efforts should be made to motivate employees for contributing their maximum. The efforts of management will not bear fruit if the employees are not encouraged to work more. The motivated employees become an asset to the organisation.

The following is the importance of motivation:

1. High Performance:

Motivated employees will put maximum efforts for achieving organisational goals. The untapped reservoirs of physical and mental abilities are taped to the maximum. Better performance will also result in higher productivity. The cost of production can also be brought down if productivity is raised. The employees should be offered more incentive for increasing their performance. Motivation will act as a stimulant for improving the performance of employees.

2. Low Employee Turnover and Absenteeism:

When the employees are not satisfied with their job then they will leave it whenever they get an alternative offer. The dissatisfaction among employees also increases absenteeism. The employment training of new employees costs dearly to the organisation. When the employees are satisfied with their jobs and they are well motivated by offering them financial and non-financial incentives then they will not leave the job. The rate of absenteeism will also be low because they will try to increase their output.

3. Better Organisational Image:

Those enterprises which offer better monetary and non-monetary facilities to their employees have a better image among them. Such concerns are successful in attracting better qualified and experienced persons. Since there is a better man-power to development programme, the employees will like to join such organisations. Motivational efforts will simplify personnel functions also.

4. Better Industrial Relations:

A good motivational system will create job satisfaction among employees. The employment will offer those better service conditions and various other incentives. There will be an atmosphere of confidence among employers and employees. There will be no reason for conflict and cordial relations among both sides will create a healthy atmosphere. So motivation among employees will lead to better industrial relations.

5. Acceptability to Change:

The changing social and industrial situations will require changes and improvements in the working of enterprises. There will be a need to introduce new and better methods of work from time to time. Generally, employees resist changes for fear of an adverse effect on their employment. When the employees are given various opportunities of development then they can easily adapt to new situations. They will think of positive side of new changes and will co-operate with the management. Motivation will ensure the acceptability of new changes by the employees.

6. Creates Supportive Work Environment:

When the needs of employees are satisfied and they get proper recognition, then they will have positive attitude towards work. The relations between superiors and subordinates will be cordial and working environment will improve. Motivation will help in improving co-operation and co-ordination in the organisation and employees will work in a team-spirit.

7. Helpful in Changing Attitude of Employees:

In the absence of motivation, the employees will be taking the work in a routine way and will not think of doing their best. Motivation will help in changing the attitude of employees from negative to positive. The motivated employees will be using business resources properly and will improve their performance.


Importance of Motivation – In an Organisation

Importance # 1. Improves the Efficiency of Work:

Motivation influences the level of performance of employees, which depends not only on individual’s abilities but also on his/her willingness to achieve a high level of performance. Motivation fills the gap between the ability to work and willingness to work. Thus, it leads to increase in productivity, reducing the cost of operations and seeming overall efficiency.

Importance # 2. Sets in Motion the Action of People:

In every organisation, there are physical, financial and human resources. The utilization of physical and financial resources depends on the ability and zeal of people to work. Motivation puts human resources into action. Motivation builds die will power to work among employees and enables the management to secure the best possible utilization of all resources.

Importance # 3. Ensures Achievement of Organisational Goals:

Management can achieve the goals effectively by motivating subordinates to put in their best efforts towards the fulfillment of the assigned tasks. If people are not motivated, no purpose can be served by planning, organizing and staffing functions. By meeting individual needs through a satisfactory system or rewards, the management can secure the cooperation of subordinates for the accomplishment of organisational goals.

Importance # 4. Helps in Creating Friendly and Supportive Relationships:

Motivation brings about employee satisfaction through financial aid or reward, recognition of good work and promotional opportunities. Hence, it leads to cordial and friendly relationship between the employer and the employees. Industrial disputes are reduced and there is high morale. Effective motivation helps management to win resistance to change. Motivated employees support all changes that are in the organisational interest as they identify their own advancement with the prosperity of the enterprise.

Importance # 5. Motivation Leads to the Stability in the Work Force:

Motivation builds confidence among subordinates, improves work performance, secures their loyalty, and reduces absenteeism and labour turnover. It improves the image of the organisation and consequently, attracts competent personnel in an organisation.

Importance # 6. Acceptance of Organisational Changes:

Organisations are created in the society. Because of changes in the society, changes in technology, value system, etc. Organisation has to adapt to those changes to cope up with the requirement of the time. When these changes are introduced in the organisation, there is a tendency to resist these changes by the employees. However, if they are properly motivated, they accept, introduce and implement these changes keeping the organisation on the right track of progress.


Importance of Motivation – Briefly Discussed

A manager guides the people in a desired manner in order to achieve organisational objectives. Two important things are necessary to perform any job. People should have ability to work and willingness to work. Unwillingness to work is of no use. Hence, there is a need for motivation to create willingness in the minds of workers to do a job.

So, the performance may be expressed in the following formula:

Performance = ability x motivation (willingness)

E. F. L. Brech has explained the importance of motivation as “The problem of motivation is the key to management actions and in its executive form, it is among chief tasks of the general manager. We may safely lay it down that the tone of an organisation is the reflection of the motivation from the top.”

The importance of motivation is briefly discussed below:

1. Maximum utilisation of factors of production – Workers perform the work sincerely through the inspiration of motivation. This creates the possibility of maximum utilisation of factors of production viz., labour and capital.

2. Willingness to work – Motivation influences the willingness of people to work. A man is technically, mentally and physically fit to perform the work but he may not be willing to work. Motivation creates a willingness on the part of workers to do the work in a better way.

3. Reduced absenteeism – Financial incentive schemes coerce the workers to work more. Financial incentive scheme is framed in such a way that monetary benefits are given on the basis of number of hours engaged. This reduces absenteeism.

4. Reduced labour turnover – Motivation has both financial and non-financial incentive schemes. This helps to retain the existing labourers. The enterprise can plan its activities on long-term basis with the help of reduced labour turnover.

5. Availability of right personnel – Financial and non-financial incentives not only retains the existing employees but also attract the employees from outside the enterprise. In other words, right people are attracted from outside to work for the enterprise.

6. Building of good labour relations – Motivation helps to solve the labour problems of absenteeism, labour turnover, indiscipline and grievances. This ensures building of good labour relations.

7. Increase in the efficiency and output – Both workers and management have got benefits from motivational plans. On the one hand, wages of the workers increase corresponding to the increase of output and efficiency. On the other hand, the productivity of the organisation and its profits increases due to consolidated efforts of the motivated people.

8. Sense of belonging – A proper motivation scheme promotes closer rapport between enterprise and workers. The workers begin to feel that the enterprise belongs to them and consider its interests as their own. Thus there is no difference between workers and enterprise.

9. Basis of co-operation – Efficiency and output are increased through co-operation. The co-operation could not be obtained without motivation, so, motivation is a basis of co­operation.

10. Helps in realising organisational goals – Organisational goals are achieved quickly through motivation. Motivated employees have a feeling of total involvement in the performance of organisation task. Employees may work whole-heartedly for the realisation of organisational goals.

11. Improvement upon skill and knowledge – Employees have promised efficient job performance or completion. Hence, the employees may improve upon their skill and knowledge required for the job.


Importance of Motivation – In Business

The effective direction, motivation and leadership, takes a business forward. Amongst all, motivation plays the key role as it helps to identify and satisfy the needs of employees and the organisation. Managers use various motivational programmes to encourage employees to achieve their maximum potential leading to improved organisational performance.

Let us review the importance of motivation:

1. Motivation Improves the Performance of Employees and the Organisation:

A manager through motivational techniques satisfies the needs of employees. A satisfied and content employee is able to use his/her energies and potential optimally leading to higher levels of performance. The improved performance of individual employees contributes towards performance of the organisation.

2. Motivation Develops Positive Attitude:

Motivational techniques like rewards, appreciation, recognition etc. create desire amongst employees to perform to their maximum potential. In the absence of motivation, employees may be indifferent towards organisational goals and may perform at minimum level. Motivation eliminates this negative attitude and develops the positive attitude towards work leading to effective realization of organisational goals.

3. Motivation Reduces Employee Turnover:

A good manager identifies the motivational needs of employees and provides suitable opportunities to satisfy them. A satisfied employee prefers to remain loyal to the organisation and work hard to achieve greater heights. The reduced employee turnover saves cost related to recruitment and training of new staff and helps management to retain talented staff.

4. Motivation Reduces Absenteeism:

A sound motivational system satisfies needs and motives of employees making workplace a source of pleasure and work a pleasant experience. On the other hand, an employee with unsatisfied needs lacks commitment to work which may lead to frequent absenteeism. Thus, motivation while keeping employees happy and satisfied reduces absenteeism leading to increased productivity for the organisation.

5. Motivation Helps to Introduce Changes Smoothly:

A motivated staff is open-minded and is able to understand that it is important to adapt to environmental changes for future success and growth of business. They may readily accept the change as they can foresee additional rewards they will receive as a result of change.


Importance Motivation – With Factors

Motivation is the core of management. A team of highly qualified and motivated employees is necessary for achieving the objectives of an organization.

The importance of motivation may be judged on the basis of the following factors:

1. Effective Use of Resources:

Motivation activates human resources and compels employees to behave in a particular manner. In business, all physical resources need to be used through human force. Highly motivated employees greatly help in making optimum use of available resources.

2. Higher Efficiency of Employees:

Motivation is directly related to the level of efficiency. Motivated employees put in their maximum effort for achieving organizational goals. Motivation improves the work performance by bridging the gap between the ability and willingness to work. Better performance results in higher productivity and consequently lower cost of production.

3. Healthy Industrial Relation:

Motivation is considered as the backbone of good industrial relation. Motivation creates friendly and supportive relationships between the employer and the employees. When the industrial relation becomes better, industrial disputes are reduced. There will be an atmosphere of confidence between the employer and the employees.

4. Better Organizational Image:

Motivation helps in improving an image of the organization. Employees produce more when they are properly motivated. Highly motivated employees try to maintain a self- disciplined and productive internal environment in the organization. This creates a better impression to the outsiders dealing with the organization.

5. High Morale and Satisfaction:

Motivation is helpful in increasing the morale of employees. High degree of motivation may lead to high morale. Highly motivated employees will get higher satisfaction which may lead to higher efficiency. Motivation improves the quantity as well as the quality of production.

6. Reduced Labour Turnover and Absenteeism:

Motivation leads to job satisfaction of workers. Employees are punctual and regular in their work schedule, provided they get job satisfaction. Highly motivated employ­ees are loyal and committed to the organization. They are sincere and prefer to stay on the job for longer period of time. As a result, labour absenteeism and turnover are low.

7. Accomplishment of Organizational Goals:

Motivation helps in shaping the working behaviour of the employees. It channelizes energy of employees for achieving organizational goals. Highly motivated employees
are more committed and cooperative for seeking organizational objectives. Motivation ensures achievement of organizational goals by meeting individual needs through a satisfactory system of rewards.

8. Introducing Changes in the Organization:

Motivation helps the management in introducing changes in the organization. Normally, employees resist changes for fear of an adverse effect on their employment. When the employees are given various opportunities of development, they can easily adapt to new situations. Motivated employees support all changes that are in the interest of the organization.


Importance of Motivation – For Employees in an Organisation

1. Best and Optimum Utilisation of Resources:

All the resources are activated by the human resources and if the human resource is motivated then only they utilise all the other resources in the best manner. The manpower should be motivated to carry out the plans, policies and programmes whatever are laid down by the organisation by utilising the other resources to the best of their efforts for the attainment of the organisational goals.

2. Maximum Contribution:

If the employees are motivated in the right direction, they are ready to give maximum contribution to the organisation. The motivation bridges the gap between “capacity to work” and “Willingness to work.”

3. Reduced Cost:

In fact the motivated employees are most cost conscious and always try to minimize the waste, losses, damages, pilferages etc. which ultimately results in overall lowering the operational cost.

4. Increased Level of Efficiency/Productivity:

As and when employees are motivated their level of efficiency is increased. Such employees give high productivity and better quality work. They work with responsibility and put their hard efforts of the organisation. Because of this the overall operating efficiency of the employees is increased.

5. Co-Operative Attitude:

Motivation is the basis for getting the co- operation from all the employees. If adequate motivation is given to the employees they are ready to co-operate with the organisation at all times.

6. Organisational Effectiveness:

Motivated employees work sincerely, honestly and with responsibility. They are well disciplined. They maintain the decorum and decency. All this helps in making the organisation efficient and effective. Motivation is the powerful instrument in the hands of the management for achieving the organisational effectiveness.

7. Activates, Talent, Abilities and Capacities of the Employees:

The hidden talents, abilities, capacity as well as creativity among the employees can be activated through motivation, which can be used for organisational purpose. Motivation causes improvement in skill and knowledge of the employees also.

8. Timely Goal Attainment:

The organisational goals can be timely achieved if the employees are properly motivated. In fact goals are achieved by employees alone.

9. Acceptance and Adaptability to Change:

Change is the law of nature. A number of changes takes place in and around the business organisation and in various fields. If the employees are adequately and effectively motivated they are ready to accept all the changes according to the needs of the organisation.

10. Dynamic Organisation:

If employees are properly motivated they automatically keep the organisation dynamic.

11. Reduces Labour Problems and Enhances Better Human Relations:

Because of motivated employees the labour problems are reduced to a greater extent. At times they do not arises at all. There by better human relations can be developed between the management and the employees. Chances of disputes and clashes can also be eliminated.

12. Job Satisfaction and High Morale among Employees:

Motivation leads to job satisfaction and high morale among the employees. Team spirit, co- operation, zeal to work, more enthusiasm, and positive attitude etc. are reflected because of job satisfaction and high morale among the employees.

13. Enhances Better and Sound Image:

If the employees in the organisation are motivated a good image of such organisation is created in the minds of the people and ultimately the organisation comes into limelight. Such organisation enjoys good status, reputation, goodwill, credit standing in the market and becomes able to attract more qualified, trained, experienced, skilled, and competent personnel for the organisation.


Importance of MotivationAccording to Allen

According to Allen, “poorly motivated people can nullify the soundest organization.”

The importance of motivation can be understood with the help of following factors:

1. Productive Use of Resources:

Motivates employees to work with zeal and willingness to give their best. Human resource is the most important resource out of all the available resources that include man, material, machine, money, and methods. Therefore, it is essential for the organization to keep this resource motivated.

2. Stability in Workforce:

Refers to designing attractive motivational measures that satisfy the employees of the organization. As a result, their commitment and loyalty increases towards the organization. It also increases the efficiency of the employee, because a satisfied employee is a productive employee.

3. Low Absenteeism and Turnover:

Requires an organization to take measures for motivating and encouraging employees to increase their presence in the organization. When employees start enjoying their work, the turnover decreases markedly and performance of the organization increases considerably.

4. Good Corporate Image:

Refers to the perspective by which the society judges the organization. Good corporate image depends on various factors, such as product and services of the organization, customer loyalty, and brand image. However, there is another factor that influences the corporate image that is employees of the organization. If the employees of the organization are satisfied then they would satisfy the customers of the organization, which in turn builds the goodwill of the organization.

5. Development of Friendly Relationships:

Helps maintain cordial relationships among the superiors and subordinates in the organization.

6. Achievement of Goals:

Motivates a goal-directed behavior that encourages employees to put their efforts in the direction of organizational goal attainment. Employees very well know that if they would attain their targets, they would get rewards.

7. Higher Efficiency:

Refers to increased production of employees because of the encouragement given to them by their superiors. Motivation serves as an effective tool in making the employee work harder and develops their capabilities as well as competencies.

8. Promotes Job Satisfaction:

Means that motivation helps employees in developing a positive work attitude and they derive more satisfaction from their jobs.

9. Loyalty of the Workforce:

Means that a satisfied and secure employee would be loyal towards the organization. This in turn promotes a long-term, employee-employer relationship.

10. Good Interpersonal Relationships among Employees:

Refers to the level of comfort an employee shares with his/her colleagues, subordinates, and superiors. Motivated employees would be socially interactive, optimistic, and willing to form good interpersonal relationships with their colleagues, superiors, and subordinates.


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