are fulfilled with the help of money, money ceases to be the motivating force; it becomes the maintenance factor as said by Herzberg. Therefore, employees do not always run after money. They have other needs also. The want status and recognition in the society, they want to satisfy egoistic needs and they want to achieve something in their lives. In order to motivate the employees having these needs, management can take the help of following non-financial incentives:
1.Praise: Praise satisfies one’s ego needs. Sometimes, praise is more effective than another incentive. We have seen that in industry, at home or elsewhere, people respond better to praise. However, this incentive should be used with greater degree of care because praising an incompetent employee would create resentment among competent employees. Or course, occasionally, a pat on the back of an incompetent employee may act as incentive to him for improvement.
2.Competition: Competition is a kind of non-financial incentive. If there is a healthy competition among the individual employees or groups of employees, it will lead them to achieve their personal or group goals in a better way.
3.Opportunity for Growth: Opportunity for growth is another kind of incentive. If the employees are provided opportunities for their advancement and growth and to develop their personality, they feel very much satisfied and become more committed to the organizationa and become more committed to the organizational goals.
4.Feedback: Knowledge of the results/performance leads to employee satisfaction. A worker likes to know the result of his performance. He gets satisfaction when his superior appreciates the work he has done.
5.Worker’s participation in Management: Employees participation in management provides an important incentive to the employees. It gives them psychological satisfaction that their voice is being heard.
6.Suggestion System: Suggestion system in an incentive which satisfies many needs of the employees. Many organizations which use the suggestion system make use of cash awards for useful suggestions.
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They, sometimes, publish the worker’s name with his photograph in the company’s inhouse magazines/reports/brochures. This motivates the employees to be in search for something which may be of greater use to the organization.
Review Questions
1.‘Motivation is the core of management’. Comment. What practical suggestions would you offer to management to motivate its staff in an industrial organization?
2.Explain Maslow’s need hierarchy. Is this hierarchy rigid? Discuss with suitable examples.
3.Explain Herzberg’s Two Factor Theory and differentiate it from Maslow’s Theory of Need Hierarchy?
4.List out the assumptions of McGregor’s Theory X and Theory Y. Which one is applicable in India?
5.“Motivation is based on rewards”. Explain the statement and discuss various types of motivators.
6.“Money holds the key to work motivation in modern business organizations.” Discuss and give also the role of non-financial incentives in motivation.
7.“Non-financial incentives are as strong motivators as the financial ones”. Critically examine this statement in the light of Maslow’s and Herzberg’s theories of motivation.
which they welcome and accept the managerial philosophy is very crucial to the development of sound and favorable organizational climate. The climate is said to be highly favorable when the existing management techniques are such that employees goals are perfectly matched to the ideas of organizations.
Structure: Structure is the framework that establishes formal relationship and delineates authority and functional responsibility. It is generally believed that decentralized structure results in sound climate. In sharp contrast, if the management feels the necessity of maintaining greater degree of consistency in operations regarding decision-making, it will be wedded to centralized structure.
Process: In every organization certain processes are vital so that it functions. Communication, decision making, motivation and leadership are some of the important processes through which management achieves the tasks. For instance, if we consider leader-follower relationship, leadership process, it is leader’s choice whether to allow subordinates in decision-making,
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give assignments, etc. A leader has to be aware of the possible influence of his actions on the climate while deciding about the most appropriate supervisory technique for a given situation. It should be noted that failure to give consideration to the effect on climate could cause great harm to the organization.
Physical Environment: the external conditions of environment, the size, location of the work place etc., will also affect organizational climate. An employee performing his job in relatively clean, quiet, safe environment will undoubtedly have a favorable perception of the organizational climate. Noise has also been considered instrumental in influencing the climate of an organizational.
System Values and Norms: Every organization has discernible and fairly formal value system where certain kinds of behaviors are rewarded and encouraged and certain kinds of behavior forces an individual to formal sanctions. The formal value system is communicated to employees through rules, regulations and policies. But informal value system is very difficult to ascertain. But both exert influence on organizational climate.
In general, organisational climate provides certain stimuli, offers certain opportunities and raises certain expectations among its members; at the same time, it also creates certain constraints, threats, problems and frustrations. Organisational climate influences the perceived ability of the individual employee, which in turn has a decisive effect on his motivation. Perceived ability is influenced by the nature and clarity of the job, the scope of responsibility, degree of freedom, supervisory support and training, safety and other physical working conditions, previous experience and so on.
Organizational Culture
Organizational culture is the set of assumptions, beliefs, values and norms that are shared by the members of an organization. It may be consciously created by its key members, or it may have simply evolved over time. It represents a key element of the work environment in which employees perform their jobs. A culture may exist across an entire organization, or it may refer to the environment within a single division, branch, plant, or department. The idea of organizational culture is somewhat intangible, for we cannot see it or touch it, but it is present and pervasive. Like the air in a room, it surrounds and affects everything that happens in an organization. Because it is a dynamic systems concept, culture is also affected by almost everything that occurs within an organization. They give an organizational identity to employees – a defining vision of what the organization represents. They are also an important source of stability and continuity to the organization which provides a sense of security to its members.
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Characteristics of Cultures
Each organization has its own history, patterns of communication, systems and procedures, mission statements and visions, stories and myths which, in their totality, constitute its distinctive culture. Cultures are also relatively stable in nature. Most organizational cultures have historically been rather implicit rather than explicit. A defining characteristic of most culture is that they are seen as symbolic representations of underlying beliefs and values.
Measuring Organizational Culture
Systematic measurement and comparison of cultures is difficult. Most of the early attempts by researchers relied on examination of stories, symbols, rituals, and ceremonies to obtain clues. Others have used interviews and open ended questionnaires in an attempt to assess employee values and beliefs. In some cases, examination of corporate philosophy statements has provided insights into the espoused cultures (the beliefs and values that the organizations state publicly). Another approach is to survey employees directly and seek their perceptions of the organization’s culture. Another interesting method is to become a member of the organization and engage in participant observation.
Characteristics of organizational cultures
-- Distinctive -- Stable
-- Implicit
-- Symbolic
-- Integrated
-- Accepted
-- A reflection of top management
Communicating Culture
If organizations are to consciously create and manage their cultures, they must be able to communicate them to employees, especially the newly hired ones. Individuals are generally more willing to adapt when they want to please others, gain approval, and learn about their new work environment. These cultural communication acts may be lumped under the umbrella of organizational socialization, which is the continuous process of transmitting key elements of an organization’s culture to its employees. Individualization occurs when employees successfully exert influence on the social system around them at work by challenging the culture or deviating from it.
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Review Questions
1.Describe the organisational culture that seems to exist in your organisation. What are some of the implicit or explicit norms, values and assumptions?
2.Discuss the bases or forms of departmentalisation in an organisation?
3.Explain various characteristics of Organisational Climate.
4.Distinguish between
a.Horizontal & Vertical dimension of organisational structure. b.Commercial & Non – Commercial dimension of
organisational structure.
c.Traditional & Modern dimension of organisatonal structure.
5.What are the major dimensions of organisational structure?
6.Describe the factors determining organisational structure.
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