What are the ways you can think of that an organisation may use to motivate its employees without providing financial incentives?

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There are many, often competing, theories of motivation. Certain aspects of motivation not involving financial incentives are discussed here.


Encourage social relationships

Organisations can develop teams and good worker/manager relationships. The potential impact of work groups on individual motivation and productivity was best illustrated by the Hawthorne Studies. Social relationships between workers within a team and between workers and their managers can prove a more powerful source of motivation than financial incentives.

Structure the organisation positively

Structuring the organisation to emphasise self-directed work teams which stress employee involvement can build on this social relationships thinking to motivate the workforce.

Develop a positive culture/celebrate success

The organisation could develop a stimulating organisational culture whereby employees feel valued and are motivated to contribute positively. Such cultures take time to develop and need to be carefully maintained through supportive management approaches and by use of appropriate actions. By way of example, outstanding employee performance might be rewarded through a number of mechanisms including additional leave entitlements, flexible working conditions and public recognition of achievements.

Communicate positive messages

The organisation could develop and enhance non-financial elements of a total reward package to communicate a positive message to employees. In any case, the organisation needs to pay attention to, hygiene' factors, so is and availability of food and refreshments can impact directly on morale and motivation. Regular communication to the workforce and collaborative activity can make employees feel good about both themselves and the organisation they work for.

Effective job design

Effective job design can be used to build more interest, variety, challenge and collaborative working into jobs which might motivate employees. (This is consistent with the job characteristics model which links job characteristics, and the outcomes in terms of motivation, satisfaction and performance).
Thus special attention needs to be given to skill variety, task identity, task significance, autonomy and individual feedback.

Introduce job variety

The organisation could introduce job variety to motivate and develop individuals, overcome inertia, and help in understanding the roles performed by others. Job variety might be achieved through expanding a role by adding stimulating tasks (job enlargement) or tasks that might normally be carried out by someone on a superior grade (job enrichment) or swopping jobs for a period (job rotation).

Clear Goals

Consistent across the organisation, aligned between departments and with ongoing communication of performance.

Provide resources

Updating of equipment to enable efficient performance.

Competent management

Responsive to requests for support, sensitive and fair in issuing instructions, consistent in decisions made.

Offer training and skill development

By offering individuals an opportunity for additional training and skill development they should value the opportunity to develop their potential and consequently will be both engaged and motivated

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