06. Motivation Incentives

One of the primary functions of senior management in every firm is to increase organizational productivity. Corporate culture, training and development, communications, systems and tools, motivation and incentives, control and reporting, structure, planning and programmers, staffing, process, strategy, goals and objectives are all factors that influence and determine organizational productivity (Cording, et al., 2014). However, managers believe that employee motivation is critical (Becker, et al., 2018).

All individual has his or her wishes and desires and they always try to fulfill their wishes. It is not enough for a person to be content on a materially; non-material factors are just as important, and an employee must be satisfied on both levels (Bonner, et al., 2000). His pay, incentives, allowances, job stability, and other benefits are considered material. While non-material factors such as leaves, pleasant working conditions, and good communication among coworkers and upper management are important, all of these factors have a role in employee motivation ( Mamdani & Minhaj, 2016).

Employees are usually the ones that determine an organization's fate, therefore it makes sense to learn how they might be motivated. Employee motivating incentive programs are the most widely used method in firms when it comes to employee motivation ( Mamdani & Minhaj, 2016).

The goal of a motivation plan is to reward productive achievement, reinforce positive behavior and stir employee interest ( Mamdani & Minhaj, 2016). Performance and how it could be enhanced is central to the concern of businesses and organizations, therefore many organizational experts, are very much involved in various schemes and methods linked to performance and its increased incentives are one of those methods used in workplaces to stimulate employees in order to get the desired performance (Aziri, 2019). Although money is thought to be the universal motivator, various financial and non-financial incentives and advantages create a unique relationship between the firm and its personnel. Employees perform specific activities and meet targets in exchange for monetary and other incentives (Bonner, et al., 2000).

6.1. Monetary incentives- Those incentives gratify subordinates by providing them with monetary benefits. Money has long been acknowledged as a primary source of meeting people's needs (Garbers & Konradt, 2014). Money can also be used to meet social demands by acquiring a variety of material objects. As a result, money satisfies not only psychological but also security and societal requirements. As a result, various wage plans and bonus programs are implemented in many firms to inspire and stimulate workers (Garbers & Konradt, 2014).

6.2. Non-monetary incentives- In addition to monetary incentives, non-monetary incentives may be used to assist employees in meeting their ego and self-actualization needs. The term "non-monetary incentives" refers to any inducement that cannot be measured in monetary terms. When managers wish to address the psychological needs of their employees, they use non-monetary incentives ( Mamdani & Minhaj, 2016). Non-monetary incentives can take the following forms (Shaw & Gupta, 2015):-

·         Security of service

·         Praise or recognition

·         Suggestion scheme

·         Job enrichment

·         Promotion opportunities 

6.3. Motivation Incentives in Banking Sector

Bankers in any bank require something to keep them motivated. Most of the time, a banker's wage serves as a motivator; however, various incentive packages and programs are required to keep him or her working for a bank consistently. A banker must be motivated to work for a bank; otherwise, the quality of that employee's work, or all work in general, will suffer. In today's competitive era, it is necessary and mandatory to provide various desired benefits and incentives to bankers in order to keep their target achievement on track.

As a result, incentives can help a bank achieve its objectives. Some of a bank's incentive requirements include:

1. To improve productivity

2. To run a stimulus activity

3. To improve commitment in job performance

4. To mentally satisfy a banker

5. To develop the behavior and object of bank's subordinate towards job improving efficiency

6. To instill a sense of zest and enthusiasm for work

7. To make the most of a banker's abilities so that they can be fully utilized and exploited in order to achieve personal and bank's objects.

List of Reference

Aziri, J., 2019, Employee Motivation Incentives and Their impact on the Organization's Productivity. Texila International Journal of Management, Volume 5, Issue 2, Aug 2019

Becker, T.E., Kernan, M.C., Clark, K.D. and Klein, H.J., 2018. Dual commitments to organizations and professions: Different motivational pathways to productivity. Journal of Management, 44(3), pp.1202-1225.

Bonner, S. E., Hastie, R., Sprinkle, G. B., & Young, S. M. (2000). A review of the effects of financial incentives on performance in laboratory tasks: Implications for management accounting. Journal of Management Accounting Research, 12(1), 19- 64.

Cording, M., Harrison, J.S., Hoskisson, R.E. and Jonsen, K., 2014. Walking the talk: A multitask holder exploration of organizational authenticity, employee productivity, and post-merger performance. Academy of Management Perspectives, 28(1), pp.38-56.

Garbers, Y &  Konradt, U, 2014. The effect of financial incentives on performance: A quantitative review of individual and team‐based financial incentives. Journal of occupational and organizational psychology, 87(1), pp.102-137

Mamdani, K.F. & Minhaj, S., 2016. EFFECTS OF MOTIVATIONAL INCENTIVES ON EMPLOYEES’ PERFORMANCE: A CASE STUDY OF BANKS OF KARACHI, PAKISTAN. South East Asia Journal of Contemporary Business, Economics and Law, Vol. 9, Issue 2 (Apr.) ISSN 2289-1560