Non financial motivator
Non financial motivators:
- Non financial motivators are ways used
by employers and managers to motivate
employees without money.
- many employers prefer non financial
motivators above financial motivators
because of several reasons
- it is cost effective for the firm
- theorists such as Maslow and
Herzberg’s findings suggested that such
motivators have long term impact in
keeping workers motivated
- not all workers are actually
motivated by money.
Non financial motivator 1: employee
participation
- Employee participation refers to allowing
employees to involve in certain level of
decision making.
- this makes employees feel more important
and hence helps them to stay motivated
with the firm.
- there are many ways a firm can introduce
employee participation
- work council: a forum for discussion
bet ween employer and employees regarding
pay, working condition and training of the
workers. (Mayo: participation motivates
worker)
- Quality circles: small teams or groups
of workers are created. They are asked to
meet in unofficial hours and provide
suggestion about how the firm can improve
the quality of their products and processes.
the best suggestions are implemented and
the circle is rewarded with team bonus as
recognition. (Maslow: recognition fulfills
esteem needs thus motivating workers)
- autonomous teamwork: allowing
teams to handle projects all by themselves
with full empowerment. The team is
provided with clear objective and budget.
The team takes the challenge to decide
their own methods and strategies to
complete the project. (Herzberg: challenge
makes a work motivating)
Employee participation is not always
possible due to confidentiality of matter.
Also employee participation might slow
down decision making. Lastly, not all
managers can take employee participation
positively due to their autocratic nature.
Non financial motivator 2: Training
- training makes a worker Skilled and
also multi skilled.
- As a result of skills upgrade, worker
might see a clear progress in his or
her job life
-workers can take up challenge,
take more responsibilities thus
getting promotion chances at work.
- worker can switch to a better
job.
- this uphold the view of Herzberg
that progress in work life motivates
workers.
Training is expensive when arranged
outside the business. Also trained
workers often leave for better job.
Non financial motivator 3: Team work
- arranging workers in team can allow
the worker
- to socialize (maslow: socializing
meets social needs of workers keeping
them motivated)
- to take up more challenge and
responsibilities, which as individuals was
impossible. (Herzberg: challenge and
responsibilities motivate workers)
- firm can provide team work in many
different ways e.g.
- Quality circles (already discussed)
- Cell production: it involves dividing
the production base into small team of
workers into different cells. Each cell
works on one complete unit of work,
where the team remains responsible from
the beginning to end of the work. E.g. in a
TV manufacturing factory a cell works
behind picture tube production with full
responsibilities.
- Management teams: often seen in
office settings, where a manager is
handed with team of workers to run a
branch, department or division.
Not every worker is a team worker. Also
a team can establish their own goals
which contradict the company goals.
Lastly, team work also enhances
employee participation which might delay
decision making in crucial situations.
Non financial motivator 4: delegation
and empowerment
- delegation involves trusting workers
with managerial task . Empowerment
involves worker freedom to do that
task in their own way.
- hence,
- delegation gives the worker
recognition that he/she is trusted by
the worker and
- empowerment allows worker
with challenge
(Herzberg: challenge makes the work
more motivating. Maslow: recognition
fulfills esteem needs)
Delegation often fails when the task is
boring. Also when delegation is coupled
with empowerment there is always a
chance of worker failing the task
hurting the reputation of the firm.
Non financial motivator 4: fringe
benefits or perks
- this involves giving works some
added benefits associated with the
work he or she is with.
- e.g. a restaurant worker might get
a free meal during lunch, a school
teacher might get 50% tuition
waived for his children in that
school, an office worker might get
car pool, accommodation, health
insurance etc
- fringe benefits might
- cover some expenses of the
worker, thus allowing the worker to
meet his/her physical needs better
- might make give the worker
more recognition of a high profile job
(Maslow: recognition fulfills esteem
needs thus motivating the workers)
The firm needs to invest money to
create the fringe benefits.
Non financial motivator 6: Job redesign
- Job redesign involves redesigning
certain aspects of work so that work
becomes more fulfilling and satisfying
- the common ways of redesigning of
job is
- Job enlargement: adding more
task of similar level of complexity to
the job. This reduces boredom of the
worker as they are doing more variety
of tasks. However, since the level of
complexity of the added tasks are same
or similar, it might not have long term
motivational impact.
- job rotation: rotating workers
form one task to another for some
time. This makes the workers multi-
skilled and reduces their boredom at
Herzberg’s suggestion as to how to
enrich a job:
- The job must have three features
installed in it to enrich a job
- complete unit of work (instead of
some unidentifiable simple tasks), so
that worker have a sense of
achievement.
- regular feedback on performance,
so that worker is recognized for his or
her achievement.
- challenging tasks, so that worker
finds the work interesting enough to
stick to, stays responsible and upon
completion of challenges can feel the
progress in work life.

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work as rotation enhances variety.
However, if the tasks in which workers
are being rotated are of similar level of
complexity the it will not provide long
term motivation. Job
Complexity

Enrichment
- job enrichment: adding more tasks
Of task

of higher level of complexity to the job.

This makes the work challenging and Job
interesting to the workers. This Enlargement
ensures long term motivation. Job
enrichment is Herzberg’s own findings
to provide motivators at work. Range of task
However, not all job can be enriched due
the simple nature of the job. Also, job
enrichment will fail to motivate
workers if there is not enough training
given to face the challenge of higher
complexities involved in the work
(Mclelland: workers who are N-ach
might be demotivated by challenge if
they become unattainable)

A conclusion on motivation in practice:

- When an employer arranges financial motivators to motivate workers, he or she should try to provide reward based (e.g.
profit sharing) financial motivators than incentive based (commission and PRP). This is to enhance team work and more
sustainable motivation and to reduce unhealthy competition bet ween workers

- when an employer arranges non financial motivators, he or she make sure that the manager responsible for the workers have
the right spirit and mindset to execute the non financial motivators. Also proper training is scheme should be given if the
employer wish to see improvement in motivation through process such as delegation, empowerment, job enrichment. Lastly,
giving challenge in work in most cases will work to motivate workers, but the challenges should be demanding but not
unattainable.