What Is Motivation And How It Works?

How are businesses successful? What lies at the core of an efficient and productive workforce? How do
we ensure the work of a business is optimally performed? Why do employees do what they are asked to
do?

Motivation

These are pertinent questions that need answers to. Many people can and may give a single answer to
all these questions. It may be a broad answer that it is efficient management. While the answer is good,
the answer to questions such as these requires depth and specification.

At a deeper level, one may answer supervision. While it may be hard to say it’s wrong, it’s not hard to
advocate any equally compelling answer to these questions. The answer is motivation.

Motivation is incitement or inducement to act or move. It is the process of inducing the employees of an
organization to act in a predetermined desired manner so as to achieve organizational goals. At the core
of this concept, lies three important sub-concepts. They are Motive, Motivation, and Motivator.

Motive refers to the inner state of mind that initiates and controls behavior towards business goals.
They directly correspond to the needs of individuals.

Motivation is the process of stimulating action by understanding the needs of employees and by utilizing
their motives. The motivator is the technique used for motivation such as pay bonuses, promotion
among others.

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READ What is Motivation and Features of Motivated Behavior

Importance of Motivation in an Organisation.

The process of motivation plays a very important role in any organization, profit, or non-profit. The
managerial process of direction is driven primarily by the process of motivation as it creates within the
mind of an employee the desire to work in the direction determined by the manager. The following
aspects may be considered under this head:

1. Increases Productivity

Motivation is a process that leads to an increase in the productivity of the employee. Motivation meets
the needs of the employee and thereby creates the drive to work to the best of his abilities. A well-
employee will be willing to put in more effort towards the betterment of the organization than another
disheartened employee.

2. Ensures Organisational Efficiency

Motivation plays an important role in changing the attitudes of the employees in the organization. An
Indifferent attitude is extinguished most efficiently by motivation. The presence of such a favorable
attitude allows the organization to thrive and be successful.

3. Ensures Loyal Workforce

A well-motivated workforce is a loyal workforce. Motivated employees have high levels of morale and
commitment towards the organization and its goals and objectives. Motivation thus reduces employee
turnover and reduces the need for constant induction of new employees.

4. Ensures a Reactive Workforce

Adapting to changing business environments is an important feature of any successful business. In order
to react to changes easily and to continue smooth functioning, an organization requires extensive loyalty
and commitment of its employees. This reduces resistance to the changes that the organization intends
to make. This in effect makes the organization efficient in adapting to changing needs.

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5. Facilitates Direction

Direction is an important managerial function and forms one of its core functions. Motivation as already
mentioned is a vital part of the direction. The direction is a process that involves directing or initiating
action according to a plan drawn up requires the employees to work wholeheartedly with commitment
and loyalty. The process of direction is thus possible only when the employees proceed in the direction
that the manager determines and this requires a motivated workforce.
Conclusion

The role of motivation cannot be understated in an organization. It is a simple process that requires an
understanding of the human mind and behavior. Such an understanding and proper action thereby
stimulating the motives of an employee help in initiating and maintaining action and helps extensively in
satisfying organizational objectives.

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

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
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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 Motivation – According 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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Motivation is a very important for an organization because of the following benefits
it provides:

1. Puts human resources into action

Every concern requires physical, financial and human resources to accomplish the goals. It is
through motivation that the human resources can be utilized by making full use of it. This
can be done by building willingness in employees to work. This will help the enterprise in
securing best possible utilization of resources.

2. Improves level of efficiency of employees

The level of a subordinate or a employee does not only depend upon his qualifications and
abilities. For getting best of his work performance, the gap between ability and willingness
has to be filled which helps in improving the level of performance of subordinates. This will
result into-

a. Increase in productivity,
b. Reducing cost of operations, and
c. Improving overall efficiency.
3. Leads to achievement of organizational goals

The goals of an enterprise can be achieved only when the following factors take place :-

a. There is best possible utilization of resources,

b. There is a co-operative work environment,
c. The employees are goal-directed and they act in a purposive manner,
d. Goals can be achieved if co-ordination and co-operation takes place simultaneously
which can be effectively done through motivation.
4. Builds friendly relationship

Motivation is an important factor which brings employees satisfaction. This can be done by
keeping into mind and framing an incentive plan for the benefit of the employees. This could
initiate the following things:

a. Monetary and non-monetary incentives,

b. Promotion opportunities for employees,
c. Disincentives for inefficient employees.

In order to build a cordial, friendly atmosphere in a concern, the above steps should be
taken by a manager. This would help in:

a. Effective co-operation which brings stability,

b. Industrial dispute and unrest in employees will reduce,
 c. The employees will be adaptable to the changes and there will be no resistance to
the change,
d. This will help in providing a smooth and sound concern in which individual interests
will coincide with the organizational interests,
e. This will result in profit maximization through increased productivity.
ii. Leads to stability of work force

Stability of workforce is very important from the point of view of reputation and goodwill of
a concern. The employees can remain loyal to the enterprise only when they have a feeling
of participation in the management. The skills and efficiency of employees will always be of
advantage to employees as well as employees. This will lead to a good public image in the
market which will attract competent and qualified people into a concern. As it is said, “Old is
gold” which suffices with the role of motivation here, the older the people, more the
experience and their adjustment into a concern which can be of benefit to the enterprise.

From the above discussion, we can say that motivation is an internal feeling which
can be understood only by manager since he is in close contact with the employees.
Needs, wants and desires are inter-related and they are the driving force to act.
These needs can be understood by the manager and he can frame motivation plans
accordingly. We can say that motivation therefore is a continuous process since
motivation process is based on needs which are unlimited. The process has to be
continued throughout.

We can summarize by saying that motivation is important both to an individual and a

business. Motivation is important to an individual as:

1. Motivation will help him achieve his personal goals.

2. If an individual is motivated, he will have job satisfaction.
3. Motivation will help in self-development of individual.
4. An individual would always gain by working with a dynamic team.

Similarly, motivation is important to a business as:

1. The more motivated the employees are, the more empowered the team is.
2. The more is the team work and individual employee contribution, more profitable and
successful is the business.
3. During period of amendments, there will be more adaptability and creativity.
4. Motivation will lead to an optimistic and challenging attitude at work place