Importance of Motivation – For Members of an

Organisation
If the members of an organisation are effectively motivated then
from such motivation the expected results are that –
(1) All the members will try to co-operate and co-ordinate their
activities with a view to achieve the goals which they are required to
achieve.
(2) All the members will do their best to carry out the plans in
accordance with the policies and programmes laid down by the
organisation.
(3) All the members will also try to be as efficient as possible and
will try to improve upon their skill and knowledge so that they may
be able to contribute ‘to the progress of the organisation as much as
it is possible.
Explaining the importance of motivation E. F. L. Brech writes- The
problem of motivation is the key to management actions and in its
executive form; it is among the chief task of the General Manager.
We may safely lay it down that the system of an organisation is a
reflection of the motivation from the top.
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Motivation is getting the members of the term to pull weight

effectively, to give their loyalty to the group and organisation, to
carry out properly the activities allocated and generally to play an
efficient part in the purpose or are the real assets of any
organisation. Technology system and methods become ineffective in
these, if the people lack zeal and enthusiasm for work.
All administrative action loses its point unless the members of the
enterprise are willing to contribute their efforts for the fulfillment of
their assigned tasks. To achieve organism and individual goals in an
economic and efficient manner, motivation is an important tool in
the hands of management to direct the behaviour of sub-ordinates
in the desired and appropriate direction and thus minimise the
waste of human and other resources.
The importance of motivation in an organisation may be
discussed in detail as follows:
1. High Performance Level is Must for an Organisation- Motivated
employees put higher performance as compared to other
employees. The high performance is a must for an organisation and
motivation is a vital requirement for high performance. A number
of researches have proved the relationship between high
performance and high motivation.
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2. A Motivated Employee Stays in the Organisation More and their

Absenteeism is Quite Low- High turnover and absenteeism create
many problems in the organisation. Recruiting, training and
development of number of new personnel do not only take a long
time but it is expensive too. In a competitive economy, this is almost
an impossible task. This also affects the reputation of the firm
adversely. Motivation brings these rates lower.
3. Willingness of the People to Work- Motivation influences the
willingness of people to work and willingness comes from within. A
man may have a capacity to work and he may be physically,
mentally and technically fit for work but he may not be willing to
work. Motivation creates a need and desire on the part of the
workman to present his better performance.
4. Motivation is the Basis of Co-Operation to Get the Best Results
Out of the Efforts of the Men on the Job- In their zeal to produce
more the members work as a team to pull the weight effectively, to
show their loyalty to the group and to the organisation, to carry out
properly the activities allocated and generally to play an efficient
part in achieving the goals which the organisation has undertaken.
5. It is Helpful in Building Good Labour Relations- In an
organisation all the members of the staff make their efforts to
achieve the objectives of the organisation and carry out the plans in
accordance with the policies and programmes laid down by the
organisation if the management introduces motivational plans.
Both workers and management are benefited by such plans. While
efficiency and wages of operating force increase, productivity of the
organisation increases due to consolidated efforts of the motivated
people.
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6. Improvement of Skill and Knowledge- All the members of an

organisation try to be as efficient as possible and to improve upon
their skill and knowledge so that they may be able to contribute to
the progress of the organisation as much as possible because they
know that they will get what has been promised and ultimately they
will be able to satisfy their personal as well as social needs.
7. Motivation Builds Human Relations- As the human concept of
labour has changed and now labourer is treated as a man and not a
commodity. This attitude contributes towards motivating the people
at work. Workers are invited to participate in the decision-making
function of the management.
8. It is an Important Tool of Management- Motivation is an
important tool in the hands of management to direct the behaviour
of sub-ordinates in the desired and appropriate direction and thus
minimising the wastage of human and other resources. It is the best
way to achieve the organisational and individual goals in an
economical and efficient manner.

Importance of Motivation – In Modern

Organisations
The success of an organisation ultimately depends on how
effectively managers are able to motivate their subordinates. In the
words of Allen, ‘poorly motivated people can nullify the soundest
organisation’.
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The following points bring out the importance of

motivation in modern organisations:
i. Productive Use of Resources:
Motivation enables people to convert physical and financial
resources into useful products. It helps management to get the best
out of human as well as non-human resources.
ii. Increased Efficiency and Output:
Motivation enables people to work enthusiastically. Motivation
bridges the gap between the ability to work and the willingness to
perform wholeheartedly and thereby, increases the overall efficiency
and output. This, ultimately, helps in reducing the cost of
operations.
iii. Achievement of Goals:
Motivation causes goal-directed behaviour. It helps people to move
in a desired direction and earn rewards.
iv. Development of Friendly Relationships:
Rewards, promotional opportunities, challenging work etc. are the
inducements organisations offer to obtain good results from people.
Employees love to work for companies that respect employee
contributions. Their morale would be high. This helps in developing
cordial relations between management and workers.
v. Stability in Work Force:
Attractive motivational schemes satisfy the need of employees. As a
result, their commitment to organisational work increases. Em-
ployees do their tasks loyally and enthusiastically. They are not
tempted to leave the organisation. This means reduced employee
turnover.
Further, satisfaction on the job means reduced absenteeism.
Employees attend to their work regularly and sincerely so as to earn
rewards. The organisation benefits because it is able to maintain a
stable workforce. The skill and competence of employees continue
to be available to the organisation. This enhances the image of the
firm and helps it to secure the services of competent people.

Importance of Motivation – For Workers

1. Increase in Efficiency:
When workers are motivated to satisfy their lower and higher- order
needs, they work to satisfy the organisational needs also. This
increases the efficiency of organisational activities.
2. Communication:
Motivation promotes communication between managers and
workers. Both try to understand each other’s needs and satisfy them
to the extent possible.
3. Need-Based Motivation:
Managers ascertain prime needs of the employees, physiological or
psychological and help them fulfill those needs through motivation.
Motivation, thus, helps workers satisfy their personal needs.
4. Combines Ability with Willingness:
Workers are sometimes able but not willing to perform
organisational tasks, for lack of motivation. Effective motivation
combines ability of the workers with willingness to work and
maximises their potential to work.
5. Reduction in Labour Absenteeism and Turnover:
Workers who are satisfied with their work and work environment
contribute positively towards organisational goals and objectives.
The rate of absenteeism and turnover, thus, gets reduced.
6. Development of Leaders:
Motivation helps managers know the needs of employees. It helps
them guide and lead their behaviour in the right direction. Efficient
leaders, thus, develop as a result of effective motivation.

Importance of Motivation – For Employees

1. Higher Efficiency:
Motivation is an effective instrument in the hands of management
to maximize efficiency of operations. A worker may be very
competent but no activity can take place until the individual is
willing to perform that activity. What employees do depends largely
on how much and why they want to do. Motivated employees give
greater performance than demotivated ones.
2. Optimum Utilization of Resources:
Motivation inspires employees to make possible use of different
factors of production. They work whole-heartedly to apply their
abilities and potential in minimizing waste and cost. The enterprise
can make maximum use of its physical and financial resources.
3. Reduction in Labour Turnover:
Higher motivation leads to job satisfaction in workers.
Opportunities for need satisfaction make employees loyal and
committed to the organization. As a result labour absenteeism and
turnover are low.
4. Better Industrial Relations:
Increased labour productivity in turn results in higher wages for
employees. Motivational scheme create integration or individual
interests with organizational objectives. There arises a sense of
belonging and mutual cooperation at all level. Motivation will foster
team spirit among workers. This will reduce labour unrest and
create better relations between management and workers.
5. Easier Selection:
An enterprise that offers abundant financial and non-financial
incentives enjoys reputation in the labour market. Therefore, it can
easily attract competent persons for filling various vacancies.
6. Facilitates Change:
High Motivation helps to reduce resistance to change. An
organization has to incorporate changes to cope with environmental
changes. Properly Motivated employees accept, introduce and
implement these changes keeping the organization effective.

Importance of Motivation – In Management

Management tries to utilise all the sources of production in a best
possible manner. This can be achieved only when Employees co-
operate in this task. Efforts should be made to motivate employees
for contributing their maximum. The efforts of management will
not bear fruit if the employees are not encouraged to work more.
The motivated employees become an asset to the organisation.

The following is the importance of motivation:

1. High Performance:
Motivated employees will put maximum efforts for achieving
organisational goals. The untapped reservoirs of physical and
mental abilities are taped to the maximum. Better performance will
also result in higher productivity. The cost of production can also be
brought down if productivity is raised. The employees should be
offered more incentive for increasing their performance. Motivation
will act as a stimulant for improving the performance of employees.

2. Low Employee Turnover and Absenteeism:

When the employees are not satisfied with their job then they will
leave it whenever they get an alternative offer. The dissatisfaction
among employees also increases absenteeism. The employment
training of new employees costs dearly to the organisation. When
the employees are satisfied with their jobs and they are well
motivated by offering them financial and non-financial incentives
then they will not leave the job. The rate of absenteeism will also be
low because they will try to increase their output.

3. Better Organisational Image:

Those enterprises which offer better monetary and non-monetary
facilities to their employees have a better image among them. Such
concerns are successful in attracting better qualified and
experienced persons. Since there is a better man-power to
development programme, the employees will like to join such
organisations. Motivational efforts will simplify personnel functions
also.

4. Better Industrial Relations:

A good motivational system will create job satisfaction among
employees. The employment will offer those better service
conditions and various other incentives. There will be an
atmosphere of confidence among employers and employees. There
will be no reason for conflict and cordial relations among both sides
will create a healthy atmosphere. So motivation among employees
will lead to better industrial relations.

5. Acceptability to Change:
The changing social and industrial situations will require changes
and improvements in the working of enterprises. There will be a
need to introduce new and better methods of work from time to
time. Generally, employees resist changes for fear of an adverse
effect on their employment. When the employees are given various
opportunities of development then they can easily adapt to new
situations. They will think of positive side of new changes and will
co-operate with the management. Motivation will ensure the
acceptability of new changes by the employees.

6. Creates Supportive Work Environment:

When the needs of employees are satisfied and they get proper
recognition, then they will have positive attitude towards work. The
relations between superiors and subordinates will be cordial and
working environment will improve. Motivation will help in
improving co-operation and co-ordination in the organisation and
employees will work in a team-spirit.

7. Helpful in Changing Attitude of Employees:

In the absence of motivation, the employees will be taking the work
in a routine way and will not think of doing their best. Motivation
will help in changing the attitude of employees from negative to
positive. The motivated employees will be using business resources
properly and will improve their performance.
Importance of Motivation – In an Organisation
Importance # 1. Improves the Efficiency of Work:
Motivation influences the level of performance of employees, which
depends not only on individual’s abilities but also on his/her
willingness to achieve a high level of performance. Motivation fills
the gap between the ability to work and willingness to work. Thus, it
leads to increase in productivity, reducing the cost of operations and
seeming overall efficiency.

Importance # 2. Sets in Motion the Action of People:

In every organisation, there are physical, financial and human
resources. The utilization of physical and financial resources
depends on the ability and zeal of people to work. Motivation puts
human resources into action. Motivation builds die will power to
work among employees and enables the management to secure the
best possible utilization of all resources.

Importance # 3. Ensures Achievement of Organisational

Goals:
Management can achieve the goals effectively by motivating
subordinates to put in their best efforts towards the fulfillment of
the assigned tasks. If people are not motivated, no purpose can be
served by planning, organizing and staffing functions. By meeting
individual needs through a satisfactory system or rewards, the
management can secure the cooperation of subordinates for the
accomplishment of organisational goals.

Importance # 4. Helps in Creating Friendly and

Supportive Relationships:
Motivation brings about employee satisfaction through financial aid
or reward, recognition of good work and promotional opportunities.
Hence, it leads to cordial and friendly relationship between the
employer and the employees. Industrial disputes are reduced and
there is high morale. Effective motivation helps management to win
resistance to change. Motivated employees support all changes that
are in the organisational interest as they identify their own
advancement with the prosperity of the enterprise.
Importance # 5. Motivation Leads to the Stability in the
Work Force:
Motivation builds confidence among subordinates, improves work
performance, secures their loyalty, and reduces absenteeism and
labour turnover. It improves the image of the organisation and
consequently, attracts competent personnel in an organisation.

Importance # 6. Acceptance of Organisational Changes:

Organisations are created in the society. Because of changes in the
society, changes in technology, value system, etc. Organisation has
to adapt to those changes to cope up with the requirement of the
time. When these changes are introduced in the organisation, there
is a tendency to resist these changes by the employees. However, if
they are properly motivated, they accept, introduce and implement
these changes keeping the organisation on the right track of
progress.

Importance of Motivation – Briefly Discussed

A manager guides the people in a desired manner in order to
achieve organisational objectives. Two important things are
necessary to perform any job. People should have ability to work
and willingness to work. Unwillingness to work is of no use. Hence,
there is a need for motivation to create willingness in the minds of
workers to do a job.
So, the performance may be expressed in the following
formula:
Performance = ability x motivation (willingness)
E. F. L. Brech has explained the importance of motivation as “The
problem of motivation is the key to management actions and in its
executive form, it is among chief tasks of the general manager. We
may safely lay it down that the tone of an organisation is the
reflection of the motivation from the top.”
The importance of motivation is briefly discussed below:
1. Maximum utilisation of factors of production – Workers perform
the work sincerely through the inspiration of motivation. This
creates the possibility of maximum utilisation of factors of
production viz., labour and capital.
2. Willingness to work – Motivation influences the willingness of
people to work. A man is technically, mentally and physically fit to
perform the work but he may not be willing to work. Motivation
creates a willingness on the part of workers to do the work in a
better way.
3. Reduced absenteeism – Financial incentive schemes coerce the
workers to work more. Financial incentive scheme is framed in such
a way that monetary benefits are given on the basis of number of
hours engaged. This reduces absenteeism.
4. Reduced labour turnover – Motivation has both financial and
non-financial incentive schemes. This helps to retain the existing
labourers. The enterprise can plan its activities on long-term basis
with the help of reduced labour turnover.
5. Availability of right personnel – Financial and non-financial
incentives not only retains the existing employees but also attract
the employees from outside the enterprise. In other words, right
people are attracted from outside to work for the enterprise.
6. Building of good labour relations – Motivation helps to solve the
labour problems of absenteeism, labour turnover, indiscipline and
grievances. This ensures building of good labour relations.
7. Increase in the efficiency and output – Both workers and
management have got benefits from motivational plans. On the one
hand, wages of the workers increase corresponding to the increase
of output and efficiency. On the other hand, the productivity of the
organisation and its profits increases due to consolidated efforts of
the motivated people.
8. Sense of belonging – A proper motivation scheme promotes
closer rapport between enterprise and workers. The workers begin
to feel that the enterprise belongs to them and consider its interests
as their own. Thus there is no difference between workers and
enterprise.
9. Basis of co-operation – Efficiency and output are increased
through co-operation. The co-operation could not be obtained
without motivation, so, motivation is a basis of cooperation.
10. Helps in realising organisational goals – Organisational goals
are achieved quickly through motivation. Motivated employees have
a feeling of total involvement in the performance of organisation
task. Employees may work whole-heartedly for the realisation of
organisational goals.
11. Improvement upon skill and knowledge – Employees have
promised efficient job performance or completion. Hence, the
employees may improve upon their skill and knowledge required for
the job.

Importance of Motivation – In Business

The effective direction, motivation and leadership, takes a business
forward. Amongst all, motivation plays the key role as it helps to
identify and satisfy the needs of employees and the organisation.
Managers use various motivational programmes to encourage
employees to achieve their maximum potential leading to improved
organisational performance.
Let us review the importance of motivation:
1. Motivation Improves the Performance of Employees
and the Organisation:
A manager through motivational techniques satisfies the needs of
employees. A satisfied and content employee is able to use his/her
energies and potential optimally leading to higher levels of
performance. The improved performance of individual employees
contributes towards performance of the organisation.
2. Motivation Develops Positive Attitude:
Motivational techniques like rewards, appreciation, recognition etc.
create desire amongst employees to perform to their maximum
potential. In the absence of motivation, employees may be
indifferent towards organisational goals and may perform at
minimum level. Motivation eliminates this negative attitude and
develops the positive attitude towards work leading to effective
realization of organisational goals.
3. Motivation Reduces Employee Turnover:
A good manager identifies the motivational needs of employees and
provides suitable opportunities to satisfy them. A satisfied employee
prefers to remain loyal to the organisation and work hard to achieve
greater heights. The reduced employee turnover saves cost related
to recruitment and training of new staff and helps management to
retain talented staff.
4. Motivation Reduces Absenteeism:
A sound motivational system satisfies needs and motives of
employees making workplace a source of pleasure and work a
pleasant experience. On the other hand, an employee with
unsatisfied needs lacks commitment to work which may lead to
frequent absenteeism. Thus, motivation while keeping employees
happy and satisfied reduces absenteeism leading to increased
productivity for the organisation.
5. Motivation Helps to Introduce Changes Smoothly:
A motivated staff is open-minded and is able to understand that it is
important to adapt to environmental changes for future success and
growth of business. They may readily accept the change as they can
foresee additional rewards they will receive as a result of change.

Importance Motivation – With Factors

Motivation is the core of management. A team of highly qualified
and motivated employees is necessary for achieving the objectives
of an organization.

The importance of motivation may be judged on the basis

of the following factors:
1. Effective Use of Resources:
Motivation activates human resources and compels employees to
behave in a particular manner. In business, all physical resources
need to be used through human force. Highly motivated employees
greatly help in making optimum use of available resources.

2. Higher Efficiency of Employees:

Motivation is directly related to the level of efficiency. Motivated
employees put in their maximum effort for achieving organizational
goals. Motivation improves the work performance by bridging the
gap between the ability and willingness to work. Better performance
results in higher productivity and consequently lower cost of
production.

3. Healthy Industrial Relation:

Motivation is considered as the backbone of good industrial
relation. Motivation creates friendly and supportive relationships
between the employer and the employees. When the industrial
relation becomes better, industrial disputes are reduced. There will
be an atmosphere of confidence between the employer and the
employees.

4. Better Organizational Image:

Motivation helps in improving an image of the organization.
Employees produce more when they are properly motivated. Highly
motivated employees try to maintain a self- disciplined and
productive internal environment in the organization. This creates a
better impression to the outsiders dealing with the organization.

5. High Morale and Satisfaction:

Motivation is helpful in increasing the morale of employees. High
degree of motivation may lead to high morale. Highly motivated
employees will get higher satisfaction which may lead to higher
efficiency. Motivation improves the quantity as well as the quality of
production.

6. Reduced Labour Turnover and Absenteeism:

Motivation leads to job satisfaction of workers. Employees are
punctual and regular in their work schedule, provided they get job
satisfaction. Highly motivated employees are loyal and committed
to the organization. They are sincere and prefer to stay on the job
for longer period of time. As a result, labour absenteeism and
turnover are low.

7. Accomplishment of Organizational Goals:

Motivation helps in shaping the working behaviour of the
employees. It channelizes energy of employees for achieving
organizational goals. Highly motivated employees
are more committed and cooperative for seeking organizational
objectives. Motivation ensures achievement of organizational goals
by meeting individual needs through a satisfactory system of
rewards.

8. Introducing Changes in the Organization:

Motivation helps the management in introducing changes in the
organization. Normally, employees resist changes for fear of an
adverse effect on their employment. When the employees are given
various opportunities of development, they can easily adapt to new
situations. Motivated employees support all changes that are in the
interest of the organization.

Importance of Motivation – For Employees in an

Organisation
1. Best and Optimum Utilisation of Resources:
All the resources are activated by the human resources and if the
human resource is motivated then only they utilise all the other
resources in the best manner. The manpower should be motivated
to carry out the plans, policies and programmes whatever are laid
down by the organisation by utilising the other resources to the best
of their efforts for the attainment of the organisational goals.
2. Maximum Contribution:
If the employees are motivated in the right direction, they are ready
to give maximum contribution to the organisation. The motivation
bridges the gap between “capacity to work” and “Willingness to
work.”
3. Reduced Cost:
In fact the motivated employees are most cost conscious and always
try to minimize the waste, losses, damages, pilferages etc. which
ultimately results in overall lowering the operational cost.
4. Increased Level of Efficiency/Productivity:
As and when employees are motivated their level of efficiency is
increased. Such employees give high productivity and better quality
work. They work with responsibility and put their hard efforts of the
organisation. Because of this the overall operating efficiency of the
employees is increased.
5. Co-Operative Attitude:
Motivation is the basis for getting the co- operation from all the
employees. If adequate motivation is given to the employees they
are ready to co-operate with the organisation at all times.
6. Organisational Effectiveness:
Motivated employees work sincerely, honestly and with
responsibility. They are well disciplined. They maintain the
decorum and decency. All this helps in making the organisation
efficient and effective. Motivation is the powerful instrument in the
hands of the management for achieving the organisational
effectiveness.
7. Activates, Talent, Abilities and Capacities of the
Employees:
The hidden talents, abilities, capacity as well as creativity among the
employees can be activated through motivation, which can be used
for organisational purpose. Motivation causes improvement in skill
and knowledge of the employees also.
8. Timely Goal Attainment:
The organisational goals can be timely achieved if the employees are
properly motivated. In fact goals are achieved by employees alone.
9. Acceptance and Adaptability to Change:
Change is the law of nature. A number of changes takes place in and
around the business organisation and in various fields. If the
employees are adequately and effectively motivated they are ready
to accept all the changes according to the needs of the organisation.
10. Dynamic Organisation:
If employees are properly motivated they automatically keep the
organisation dynamic.
11. Reduces Labour Problems and Enhances Better
Human Relations:
Because of motivated employees the labour problems are reduced to
a greater extent. At times they do not arises at all. There by better
human relations can be developed between the management and
the employees. Chances of disputes and clashes can also be
eliminated.
12. Job Satisfaction and High Morale among Employees:
Motivation leads to job satisfaction and high morale among the
employees. Team spirit, co- operation, zeal to work, more
enthusiasm, and positive attitude etc. are reflected because of job
satisfaction and high morale among the employees.
13. Enhances Better and Sound Image:
If the employees in the organisation are motivated a good image of
such organisation is created in the minds of the people and
ultimately the organisation comes into limelight. Such organisation
enjoys good status, reputation, goodwill, credit standing in the
market and becomes able to attract more qualified, trained,
experienced, skilled, and competent personnel for the organisation.
Importance of Motivation – According to Allen
According to Allen, “poorly motivated people can nullify the
soundest organization.”
The importance of motivation can be understood with the
help of following factors:
1. Productive Use of Resources:
Motivates employees to work with zeal and willingness to give their
best. Human resource is the most important resource out of all the
available resources that include man, material, machine, money,
and methods. Therefore, it is essential for the organization to keep
this resource motivated.
2. Stability in Workforce:
Refers to designing attractive motivational measures that satisfy the
employees of the organization. As a result, their commitment and
loyalty increases towards the organization. It also increases the
efficiency of the employee, because a satisfied employee is a
productive employee.
3. Low Absenteeism and Turnover:
Requires an organization to take measures for motivating and
encouraging employees to increase their presence in the
organization. When employees start enjoying their work, the
turnover decreases markedly and performance of the organization
increases considerably.
4. Good Corporate Image:
Refers to the perspective by which the society judges the
organization. Good corporate image depends on various factors,
such as product and services of the organization, customer loyalty,
and brand image. However, there is another factor that influences
the corporate image that is employees of the organization. If the
employees of the organization are satisfied then they would satisfy
the customers of the organization, which in turn builds the goodwill
of the organization.
5. Development of Friendly Relationships:
Helps maintain cordial relationships among the superiors and
subordinates in the organization.
6. Achievement of Goals:
Motivates a goal-directed behavior that encourages employees to
put their efforts in the direction of organizational goal attainment.
Employees very well know that if they would attain their targets,
they would get rewards.
7. Higher Efficiency:
Refers to increased production of employees because of the
encouragement given to them by their superiors. Motivation serves
as an effective tool in making the employee work harder and
develops their capabilities as well as competencies.
8. Promotes Job Satisfaction:
Means that motivation helps employees in developing a positive
work attitude and they derive more satisfaction from their jobs.
9. Loyalty of the Workforce:
Means that a satisfied and secure employee would be loyal towards
the organization. This in turn promotes a long-term, employee-
employer relationship.
10. Good Interpersonal Relationships among Employees:
Refers to the level of comfort an employee shares with his/her
colleagues, subordinates, and superiors. Motivated employees
would be socially interactive, optimistic, and willing to form good
interpersonal relationships with their colleagues, superiors, and
subordinates.