Financial and Non Financial factors of motivation

Financial factors of motivation are monetary rewards which are given to the workers in order to improve their motivation. The most commonly used financial motivators are:

• Salary given to White Collar/Theory Y workers
• Wages given to Blue Collar/Theory X workers
• Commission received by sales agents
• Performance Related Pay(PRP) sets targets for workers
• Profit share - Companies may want to share profit with employees as a financial reward, making the employees shareholders
• Fringe Benefits - Ancillary benefits received by employees other than basic salary

Wages can be of two kinds: Time rate for quality
                                             Piece rate for quantity

Non Financial Factors of Motivation

1. Job Enlargement - Increasing the authority of workers in the same department
2. Job Rotation - Changing workers'tasks to prevent monotony
3. Job Enrichment - Increasing authority of workers in more than one department
4. Empowerment - Delegating authority to lower level workers
5. Encouraging teamwork