Motivation is one of the most crucial factors that determine the efficiency and effectiveness of an individual in organisation. All organisational facilities will remain useless unless people are motivated to utilise these facilities in a productive manner. Motivation is an integral part of management process and every manager must motivate his subordinates to create in them the will to work. High motivation provides the following advantages:
- Higher efficiency– Motivation is an effective instrument in the hands of management to maximise 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.
- Optimum utilisation of resources– Motivation inspires employees to make best possible use of different factors of production. They work wholeheartedly to apply their abilities and potential in minimising waste and cost. The enterprise can make maximum use of its physical and financial resources.
- Reduction in labour turnover– High motivation leads to job satisfaction of workers. Opportunities for need satisfaction make employees loyal and committed to the organisation. As a result labour absenteeism and turnover are low.
- Better industrial relations– Increased labour productivity in turn results in higher wages for employees. Motivational schemes create integration of individual interests with organisational objectives. There arises a sense of belonging and mutual co-operation at all levels. Motivation will foster team spirit among workers. This will reduce labour unrest and create better relations between management and workers.
- 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.
- Facilitates change– High motivation helps to reduce resistance to change. An organisation has to incorporate changes to cope with environmental changes. Properly motivated employees accept, introduce and implement these changes keeping the organisation effective.