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Types of Motivation

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Helna is a postgraduate in Commerce who is working as a Manager. She loves sharing informative information with her readers.

Extrinsic Motivation

Extrinsic motivation is the motivation that comes from outside factors like benefit of wages, medical reimbursement, fringe benefits etc. They are generally associated with financial or material benefits.

Extrinsic motivation is the motivation that comes from outside factors like benefit of wages, medical reimbursement, fringe benefits etc. They are generally associated with financial or material benefits.

Types of motivation

Motivation can be classified on the following basis.

1. Negative or positive motivation
2. Financial or Non-financial
3. Extrinsic and intrinsic

Positive motivation:

Positive motivation is a process though which attaining the organizational goal by influencing the employees behavior through recognition and appreciation of employees efforts and contribution. Motivated for a reward or an appreciation can be treated as a positive motivation. An example of positive motivation is that students studying to get a play station from his father for achieving higher grade in the school.

Examples of positive motivations are - taking interest in subordinates benefits, appreciation and credit for work done, delegating the authority and responsibility of subordinates etc.

Negative Motivation:

On the other hand Negative motivation is the process of influencing the employees behavior by giving warnings or imparting a sense of fear in the mind of employees, which he has to suffer for lack of good performance. The process is that, if an employee fails in achieving the desired results, he should be punished by demotion or termination.

Negative motivation is based upon fear i.e. demotion, lay off, punishment etc. Fear of punishment or insult in front of co-workers may bring behavioral changes. But it is to be kept in mind that, Poor performance and lower productivity could be the result of negative motivation even though it controls the misbehavior and contributed towards the positive performance.

Extrinsic motivation is the motivation that comes from outside factors like benefit of wages, medical reimbursement, fringe benefits etc. They are generally associated with financial or material benefits. Extrinsic motivation drives one to do things for tangible rewards or compulsion, rather than for the fun of doing it.

Intrinsic motivation is the motivation which comes from doing the work itself. Intrinsic motivation occur on the job and provide satisfaction during the performance of work itself. Intrinsic or internal motivation include recognition, authority, participation, status etc. The reward of intrinsic motivation is the pleasure in doing the work rather than working towards an external reward. Intrinsic motivation drives one to do things for the fun/pleasure of doing it rather than the tangible rewards or pressure.

Financial Motivation

Money plays an important role in motivation. To motivate the workers, management generally make use of financial incentives like bonus, retirement benefits, wages and salaries, medical reimbursement etc. However, such incentives may not always prove to be motivating factor. To keep the workers with the organization, in many cases, management may have to increase the financial incentives regularly. To attract and maintain good workforce, organizations have to maintain attractive wages and salaries. These monitory rewards should be competitive between various enterprises to attract good workforce.

Money plays a significant role in satisfying physiological and security needs of the employees. So, money is a real motivating factor till the physiological and security needs are met. Therefore, management can use financial incentive for motivation. Money also helps in satisfying the social needs of employees to some extent because money is often recognized as a symbol of status, power and respect.

Besides, money is an important means of achieving a 'minimum standard of living' although this 'minimum' has the tendency to go up as people become more affluent. But this should not lead one to conclude that money will always be a motivating factor to all people. After a certain stage, to some people, importance of money may be reduced and non-financial rewards may become more important.

Money provides for the satisfaction of physiological and safety needs only which have been called hygienic factors by Herzberg. Hygienic factors include wages and salaries and other fringe benefits. The presence of these factors at a satisfactory level prevents job dissatisfaction. According to Herzberg, in order to motivate the employees, it is necessary to provide for the satisfaction of ego and social and self actualization needs.

But these needs are present generally in the case of employees in the higher positions, who get higher monetary rewards and are not motivated by increased monetary benefits. In case of employees at the operative levels, money certainly plays a significant role in motivating them because their survival and safety depend on it.

It is to be noted that money is not the only motivator and it is not always a motivator. Management should, therefore, establish a motivational system which is efficient in helping different kinds of human needs. On the job, by helping themselves to develop in different areas of work can increase the satisfaction of employees. Recognition, job enlargement, participative management, status symbols and making the job challenging are some of the other non-financial incentives which also motivate employees.

Non-Financial Motivation

When the physiological and security needs are satisfied with the help of money, money stops to be a motivating force. So money is regarded as a maintenance factor. Employees have other needs like status and recognition in society. When survival needs are satisfied by money, people look for satisfying their ego needs. They want to achieve something in their lives. In order to motivate the employees, management may use the following non-financial incentives.

1. Praise or appreciation of work done: Since it satisfies one's ego needs, recognition of satisfactory performance acts as a non-financial incentive. Sometimes, appreciation of work done is more effective than any other incentive. It should be done with great care because praising an incompetent employee creates resentment among competent employees.

2. Competition: If there is healthy competition among individual employees or between groups of employees, It leads them to achieve their group goal or personal goals,. Therefore, competition acts as a non-financial incentive.

3. Rating of performance: Knowledge of rating of the work accomplished leads to employee satisfaction. The production workers normally do not have contact with the consumers. A worker would be happy to know about the response from the consumer. A worker gets satisfaction by knowing the comments of a satisfied consumer. So rating of performance by consumers or by the higher officials of the organization would be a great motivator for employees.

4. Workers' participation in management
: By participating workers in making decisions will be a strong motivator for employees. It gives them psychological satisfaction that their voice is heard. Participation in management provides for two-way communication and so imbibes a sense of importance.

5. Opportunity for growth: Opportunity for growth is another kind of incentive. If the employees are provided with opportunities for their advancement and growth and the development of their personality, they feel very much satisfied and become more committed to organizational goals.

6. Suggestion System: It is an incentive which satisfies some needs of an employee. Many organizations provides a platform for suggestions as it improves the working procedure and reduce waste and cost of production. Some organizations make use of cash awards for useful suggestions. They sometimes publish the worker's name with his photograph in the company magazine. This motivates the employees to be in search for something which may be of great use to the organization.

This content is accurate and true to the best of the author’s knowledge and is not meant to substitute for formal and individualized advice from a qualified professional.

© 2012 Helna


Akash Reddy on April 21, 2015:

Great work

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