(ii) Implication of the theory: Motivation is not a simple cause effect relationship rather is a complex
phenomenon. Porter and Lawler suggested that managers should carefully assess their reward
structure through carefull planning and careful definition of role requirements, the effort performance
- reward satisfaction system should be integrated into on overall system of managing.
(iii) Elements of sound motivational system: While adopting a motivational system. The following
important considerations should be kept in mind.
a. Adequateness: The motivational system should be adequate covering the entire workforce in an
organisation and it should cover all the activities of the employees.
b. Flexibility: The motivational system should be flexible enough to enable changes to be incorporated.
c. Related to efforts: The motivational system should be directly related to efforts. There should be
positive interconnection between efforts and rewards.
d. Analysis of motives: A sound motivational system also analyses the factors which motivate the
employees in the prevailing organisational environment.
e. Simplicity: The motivational system should be simple to be well understood by the employees as
it is designed for them.
f. Blending: A sound motivational system should be a fine blending of the requirements of the
employees, the objectives, and the philosophy of the organisation.
18.8 TYPES OF INCENTIVES The needs of individuals are varied and different. Some of them can be satisfied by money, while
others cannot be satisfied by money alone. On the basis of this, the incentives can be either in
monetary or in non-monetary form.
Incentives
Various premium
Plans by Tybr,
Halsey, Rowan
Gantt etc
1. Equal wage rates
1. Status
1. Social 1.Human relations
importance in industry
2. Wage increase
2. Promotion
2. Teamspirit 2. Participation
based on ability
3. Pension plan
3. Responsibility
3. Competition 3. Communication
4. Production Bonus 4. Pleasant and
4. Informal
4. Building morale
interesting job groups
5. Profit sharing
5. Recognition of work
6. Co-partnership
6. Job security
Financial Incentives
Non - Financial Incentives
Individual
Collective
Collective
Individual
Institutional
Fig. 18.8 Financial and Non-Financial Incentives
Centre for Distance Education Acharya Nagarjuna University 18.16
