MOTIVATIONANDCOMPENSATION

Definition of motivation: * The driving force within individuals by which they attempt to achieve some goal in order to fulfill some needs or expectation.

Motivation is…

PsychologicalPhysical Unique to each and every personContext sensitive

Qualities of Motivation:

Energizes behaviorDirects behaviorEnable persistence towards a goal

Process Theories of Motivation:

Emphasis on actual process of motivation.

Three needs Theory ( McClelland) Goal-setting Theory Reinforcement Theory Designing Motivating theory Equity Theory Expectancy Theory

Maslow’s Hierarchy of needs theory

*Lover order ( External ) : Physiological and safety needs

*Higher order ( Internal ) : Social, Esteem, and Self-actualization

Physiological needs

Safety Needs

Social Needs

Esteem Needs

Self-Actualization Needs

COMPENSATION

‘ Compensation’ in other terms also called as ‘Employee Remuneration’. Remuneration is the compensation; an employee receives in return for his or her contribution to the organization. Remuneration occupies an important place in the life of an employee. His or her standard of living, status in the society, motivation, loyalty, and productivity depend upon the remuneration he or she receives. For the employer too, employee remuneration is significant because of its contribution to the cost of production.

AIMS OF EMPLOYEE COMPENSATION

Attract capable employees to the organization.

Motivate them toward superior performance.

Retainment of their services over an extended period of time.

COMPONENTS OF COMPENSATION Direct- Wages, Salaries, Commissions,

Bonuses Indirect- Insurance plans, Social Assistance,

Educational Assistance, Paid Absences The Job- Interesting Duties, Challenge,

Responsibility, opportunity for recognition, feeling of advancement, achievement opportunity

The Environment- Sound policies, Competent supervision, Congenial coworkers, Appropriate status symbol, Comfortable working conditions, flexi-time, Job sharing, Cafeteria compensation

FACTORS INVOLVED IN DETERMINING SALARY Kinds and Levels of Required Skills.

Supply and Demand of Labor

Geographic Location

Employment Stability

Compensation Philosophy

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