What Are The Impact Of Compensation On The Motivation Levels Of Employees In The Banking Sector

883 Words2 Pages
bulb-icon

Recommended: Explain components of motivation

2.1 Introduction:
This chapter is a text of a scholarly paper, which includes the current knowledge including substantive findings, as well as theoretical and methodological contributions of the Impact of various components of compensation on the motivation level of employees in the banking sector.
2.2 Employee Motivation: The word motivation said essentially the motive which means impulse, no rhyme or reason someone put through something (Nawavi, 2011), (Armstrong, 2011) reveals the motive is the reason for somebody to do something and motivation with regard to behaviour and factor Factors that influence the actions of people in certain ways. Some experts explain the meaning of motivation. Motivation is a desire in employees to do the job …show more content…

But it can only be accomplished if that force is linked with the individual satisfaction and fulfilment of individual objective. (Asma, 2014)Compensation management is that force which motivates the employees to perform better. Compensation management has two main factors i.e. monetary and nonmonetary incentives. Employees are not satisfied with either monetary or neither non-monetary but the efficient use of both monetary and nonmonetary incentives. These motivation factors can be working hours, salary and wages, benefits, perks performance appraisal and benefits. Compensation management is a dependent variable which motivates employees and has a positive impact which contributes towards the achievement of organizational goals”. (Madan …show more content…

Incentives are rewards / punishment given to motivate employees to work productivity is high, is not permanent or at any time. In other words, as part of the profit incentive, especially once given to the workers who work in good or outstanding. Compensation as a reward given organization is made up in various forms. Dessler (2013: 352) said that divides into two forms such as compensation for financial payments directly and indirectly. Direct financial payments include wages, salaries, incentives, commissions and bonuses and indirect financial payments such as insurance and recreation. Direct financial payments made in two ways salary increases based on time or with a performance-based, but for indirect financial payments based on performance. (Dessler,

Show More
Related

  • The Will to Succeed

    1193 Words  | 3 Pages

    Motivation is the reason or reasons one has for acting or behaving in a particular way according to Google. The three milers in The Perfect Mile attempt to achieve the four-minute mile, and they each have different forms of motivation. There are two milers that achieve success because their motive impelled them to prevail. What is motivation?

    Read More

  • The Importance Of Motivation At USAA

    1042 Words  | 3 Pages

    When employees were asked, what factors could be changed at USAA to help maintain employee motivation levels, a couple of them answered with, “higher wages” and “more money”. This response corroborates other studies regarding pay which state surveys will more likely under emphasize the importance of pay relative to other motivational factors. (Rynes, Gerhart & Minette, 2004). “Financial incentives had by far the largest effect on productivity of all interventions. For example, pay was four times more effective than interventions designed to make work more interesting.” (Rynes, 2004). One reason for this phenomenon is social desirable responding. It should be noted, that although pay may be under reported, the results indicate other factors are also important for employee

    Read More

  • Incentive Scheme Case Study

    1193 Words  | 3 Pages

    An incentive or reward system refers to a program designed by an organisation to reward high performance and motivate workers on an individual and group basis (Corby et al. 2009, p. 2). Rewards are useful to a company operating in a competitive market. Although used interchangeably, rewards and recognition where the former can be monetary or non-monetary but has a cost to the company, while the latter is meant to offer psychological reward, for instance, oral public recognition or end of the year award. While the company does not provide financial incentive, it provides non-financial in the form of cars for its Sales Division consultants. This improves the working condition of the employees, but it does not improve their financial stance. Wright (2004) notes that some employees are more concerned with status, for instance, an executive desk, attractive office or business card (p. 76). Such incentive make the jobs and company attractive.

    Read More

  • Motivation Essay

    589 Words  | 2 Pages

    Motivation is defined as the process that guides, initiates, and maintains goal orientated behavior and thought (Cherry, 2013). Motivation is what drives individuals to do what they do, whether it is something as simple as getting a drink because he or she are thirsty or something as big as getting up every day and gong to work for a paycheck.

    Read More

  • Self Esteem And Self-Esteem

    1754 Words  | 4 Pages

    The concept motive is defined as a drive that leads to the motivation of employees in the

    Read More

  • The Hierarchy Of Needs, And Maslow's Theory Of Motivation

    1818 Words  | 4 Pages

    According to Robbins et al; (Robbins et al, pg 296) motivation refers to the process by which a persons efforts are energized, sustained, and directed towards a goal. This definition has three key elements: energy, direction, and persistence. Motivation is a complex and important subject, has historically been given a great deal of attention by Psychologists, who have proposed theories to explain it. (Riggio, pg 188),

    Read More

  • Motivation In Steinbeck's Of Mice And Men

    552 Words  | 2 Pages

    motivation is a behavior that makes people want to struggle all the time until he or she achieved the things that they all wanted. motivation can be divided into two ways, intrinsic and extrinsic. the intrinsic one usually comes from his or her desire and this method is really proven that it can possibly achieved if this intrinsic method is used because we do not need to rely on people around like friends mostly. the extrinsic one is the reversal from the intrinsic that we rely on the people who taught us to be motivated and this method quite or often proven or succeed because human also need a help each other.

    Read More

  • The Value Of Performance-Related Pay

    1642 Words  | 4 Pages

    A number of motivational theories explain how rewards affect the behavior of individuals and teams. Performance related pay can have a motivational effect. Employees are motivated to increase prod...

    Read More

  • The Importance Of Job Evaluation

    1078 Words  | 3 Pages

    The foundation for effective job performance and compensation system can be traced to effective job analysis process. Fundamentally, a job analysis should consist of a thorough examination of the job 's duties and knowledge, skills, abilities, and qualities that are required in order to be successful in a specific position, upon which appropriate rewards or compensation can be determined. For many perspectives, jobs are usually made up of requirements and rewards, where rewards may be regarded as a major recruitment strategy for motivating potential employees in order to influence them to stay the organization for a longer period as well as enhance their performance. The most common or basic form of rewards which attracts employees is extrinsic

    Read More

  • Theories of Motivation

    473 Words  | 1 Pages

    What is motivation? According to text, motivation is defined as a set of factors that activate, direct, and maintain behavior, usually toward a certain goal. Motivation is the energy that makes us do things: this is a result of our individual needs being satisfied so that we have inspiration to complete the mission. These needs vary from person to person as everybody has their individual needs to motivate themselves. Depending on how motivated we are, it may further determine the effort we put into our work and therefore increase the standard of the productivity. There have been a wide variety of theories about motivation developed over the years. Several are drive-reduction theory, arousal theory, psychosocial (both incentive and cognitive) theory, and Maslow’s H...

    Read More

  • Motivation, Organizational Behavior and Performance

    525 Words  | 2 Pages

    Research has shown that motivation in an employee is an important factor which determines his performance. Motivation is the “driving force within individuals” (Mullins, 2007, p. 285). It is the concerned with finding out the reasons which shape and direct the behaviour of the individuals. The people act to achieve something so that they can satisfy some needs (Gitman and Daniel, 2008). It is important for the manager to understand this motivation of individual employees in order to inspire them and devise an appropriate set of incentives and rewards which would satisfy the needs that they have individually (Kerr, 2003). Once these needs are expected to be met in return for some specific behaviour or action, they would work more diligently to have that behaviour in them and to achieve that objective (Meyer and Hersovitch, 2001). Since it would lead to early and fuller achievement of the company objectives as the individual would work more diligently, it would lead to better organizational performance (Wiley, 1997).

    Read More

  • Compensation System Analysis

    893 Words  | 2 Pages

    A well-structured compensation system could have a major impact on employee’s behavior, performance and effectiveness in that company. Most compensation systems reflect the value of the company and how the company treats their employees. Employees look at the pay system of any company and they get a general idea about the company. A well strategist compensation system will bring in the right kind of employees because it says a lot about the organization values and practices. The company has to show in their compensation system that they help motive employees by offering some sort of security, advancement opportunity, and ...

    Read More

  • Is Money Really an Effective Motivator?

    1057 Words  | 3 Pages

    Management spends a huge amount of time to design incentive systems and schemes to motivate their workers and to ensure they work in their best possible manner. Motivating workers by giving them decent pay helps in winning employees heart to make the work done efficiently, significantly and effectively. The most effective way to motivate people to work productively is through individual incentive compensation (Pfeffer, 1998). An attraction of getting more is a powerful incentive to people for high performance. While most people agree that money plays a major role in motivating people, in organizations there is a widespread belief that money may also have some undesirable effects on morale.

    Read More

  • Money Is The Only Thing That Really Motivates People

    1868 Words  | 4 Pages

    ¡§Motivation¡¨ derives from the Latin verb ¡§movere¡¨ which means ¡§to move¡¨. Beck (2004, p.3) defined Motivation as an internal state which is the driving force that activates behaviour or gives directions to thoughts, feelings and actions of an organism.

    Read More

  • Strengths And Weaknesses Of Motivation Essay

    1364 Words  | 3 Pages

    There are many different ways of interpretation of the concept of motivation. To define motivation in general I relied on Oxford Dictionary (2017): “A reason or

    Read More

More about What Are The Impact Of Compensation On The Motivation Levels Of Employees In The Banking Sector

Open Document