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In any organisation employee motivation is the key factor for
organizational performance. Companies are spending huge
amounts of money on their reward programs which aim to
motivate, retain, commit and attract new employees but fails
to motivate the employees. The research is conducted to
measure the impact of non financial rewards on employees
Motivation is the word derived from the word ’motive’
which means needs, desires, wants or drives within the
individuals. It is the process of stimulating people to
actions to accomplish the goals. Motivation is defined as
the process that initiates, guides, and maintains goal-
In the work goal context the psychological factors
stimulating the people’s behaviour can be
Desire for money
Team work, etc
"The term motivation refers to factors that activate, direct, and
sustain goal-directed behaviour... Motives are the "whys" of
behaviour - the needs or wants that drive behaviour and
explain what we do. We don't actually observe a motive;
rather, we infer that one exists based on the behaviour we
observe." ( Nevid, 2013)
The motivational factors that motivate a person to work and which can be
used to enhance their performance can be classified into two categories:
Any benefit an employee receives from an employer or job
that is above and beyond the compensation package (salary,
insurance, etc) for the specific purpose of attracting to the
company as well as retaining and motivating the employees.
The non financial motivators include:-
Workers participation in management decision
It has a stronger effect and remains longer embedded in the mind of the
employee as it appeals in it's emotional state;
Can be applied to a longer period of time;
If it's interrupted it doesn't generate resentments among those targeted;
Promotes membership in that team;
Raises the employee's fidelity for the organization
To better understand employees attitudes and motivation, In
1959, Frederick Herzberg, a behavioural scientist proposed a
two-factor theory or the motivator-hygiene theory.
According to Herzberg, there are some job factors that result in
satisfaction while there are other job factors that prevent
dissatisfaction. According to Herzberg, the opposite of
“Satisfaction” is “No satisfaction” and the opposite of
“Dissatisfaction” is “No Dissatisfaction”.
The Two-Factor theory implies that the managers must stress
upon guaranteeing the adequacy of the hygiene factors to
avoid employee dissatisfaction.
Also, the managers must make sure that the work is
stimulating and rewarding so that the employees are motivated
to work and perform harder and better.
This theory emphasize upon job-enrichment so as to motivate
the employees. The job must utilize the employee’s skills and
competencies to the maximum. Focusing on the motivational
factors can improve work-quality.
The two-factor theory overlooks situational variables.
Herzberg assumed a correlation between satisfaction and productivity. But
the research conducted by Herzberg stressed upon satisfaction and ignored
The theory’s reliability is uncertain. Analysis has to be made by the raters.
The raters may spoil the findings by analyzing same response in different
No comprehensive measure of satisfaction was used. An employee may
find his job acceptable despite the fact that he may hate/object part of his
The two factor theory is not free from bias as it is based on the natural
reaction of employees when they are enquired the sources of satisfaction
and dissatisfaction at work.
This research is conducted to know how Organizations
are using non-monetary rewards to motivate their
Is non monetary rewards helps to improve employees
The objective of our study is to find out for the company that
whether non financial rewards are motivating the youth
employees and measuring the impact on employees.
The hypothesis of the study are-
H1: Better training opportunities leads to higher level of
H2: Job enlargement has positive effect on employees
H3: Providing fair recognition on performance to the
employees motivate the employees.
H4: Communication with employees guides in decision
H5:Motivation factors has more impact on employees
performance than hygiene factors.
The study covers the area of BIHAR and JHARKHAND.
Exploratory and descriptive
Primary data is collected through Questionnaires from different
employees and telephonic interview with various employees
working in different sectors.
Secondary data is collected through different sites available on
the internet and we have also referred to various journals,
newspapers and magazine.
100% employees like to be recognized
100% employees think that they should be rewarded
45% employees agree with this
Job enrich is mostly used followed by job engagement
45% respondents agree that rewards are encouraging
Job responsibility highly satisfy the employees
24% employees like to be supervised
75% employee are highly motivated
90% employees agree with this
65% want combination of both finan. and non-finan
75% agree with this
45% employees are motivated more through non-financial
Training as a non financial tool has less effect than financial
100% employees liked to be recognized at the work place and
it has positive relation with employee motivation.
Only 10% employees does not have positive effect of non
financial rewards on performance.
Opportunity to achieve and advancement has negative
correlation(-0.198) with security and company policy and
Other motivating factors are positively co-related with
Given the context and results of this study, it is safe to
say that there is a place for non-financial rewards.
It is recommended that organizations continually
review their reward practices to ensure alignment with
the potential impact of changes in the macro
environment and to make allowance for different
requirements based on the demographic factors of their
The fact that most of the employees differed in their
opinions , some rewards may not satisfy them
therefore, an employer should diversify their rewards to
include the different demographics of his employees .
Non financial factors (Rewards) motivate the employee
performance and increase productivity of organisation.
Herzberg motivation theory has high impact on the employees
Non financial rewards has equal importance as that of