Motivating Factors – Non-Financial Methods
Meaning of Non-Financial Motivation
Methods used to motivate employees without increasing pay
Focus on improving job satisfaction (enjoyment from doing the job)
Effective only after basic dissatisfaction issues are solved
Fair wages
Good management
Respectful treatment at work
Importance of Job Satisfaction
Employees cannot be positively motivated if:
Pay is unfair compared to similar jobs
Management treats workers badly
Once dissatisfaction is removed:
Motivation increases through recognition, responsibility, and achievement
Supported by Maslow’s and Herzberg’s motivation theories
Non-Financial Methods of Motivation
1. Job Rotation
Workers swap tasks regularly (e.g. every hour)
Advantages:
Reduces boredom
Increases variety
Workers can cover for each other
Disadvantage:
Tasks themselves remain simple and repetitive
2. Job Enrichment
Jobs are redesigned to include:
More responsibility
Higher skill levels
Decision-making
Often requires training
Benefits:
Greater sense of achievement
Higher motivation and productivity
Meets higher-level needs (esteem & self-actualisation)
3. Autonomous Work Groups / Teamworking
Groups are responsible for:
A product, process, or task
Organising how work is done
Advantages:
Increases responsibility and control
Improves morale and teamwork
Creates a sense of belonging
Often leads to:
Job rotation
Job enrichment
4. Training
Improves employee skills and abilities
Motivational effects:
Sense of achievement
Recognition from management
Opportunity to do more challenging work
Strong link with job enrichment
5. Opportunities for Promotion
Filling higher positions from within the business
Benefits for employees:
Recognition
Higher status
More challenging work
Benefits for business:
Motivated workforce
Employees already understand the organisation
Closely linked to Maslow & Herzberg