Showing posts with label Economics. Show all posts
Showing posts with label Economics. Show all posts
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What is motivation??it's features,importance and factors


What is Motivation? Meaning

Motivation is next to directing / leading. Managers can motivate their subordinates while guiding them. Motivating means encouraging people to take more initiative and interest in the work assigned. It is an art of getting things done willingly from others.
Motivation avoids clashes and non-cooperation and brings harmony, unity and co-operative outlook among employees. Managers have to work as motivators of their subordinates. For this, effective communication, proper appreciation of work done and positive encouragement are necessary and useful. Motivation is inspiring and encouraging people to work more and contribute for achieving the objectives of the company The creation of the desire and willingness to perform the job efficiently is known as motivation.

Motivation is a psychological and sociological concept as it relates to human behavior and human relations. It is the most fundamental and all pervasive concept of psychology. For motivation, sweet words are useful but are certainly not adequate. Motivation basically relates to human needs, desires and expectations. In other words, these factors suggest the measures which can be used for the motivation of employees.
In motivation, efforts should be made to satisfy the different needs of employees so that they will be satisfied, happy and away from tensions. This creates favorable environment because of which employees take more interest and initiative in the work and perform their jobs efficiently. Motivation is a technique of creating attraction for the job. It is encouraging employees for better performance in order to achieve the goals of an Organization. The process of motivation is a continuous one (circular one) and is beneficial to both - employer and employees. It is a key to improve work performance of employees.
The term 'motive' is derived from the Latin word 'emovere' which means to move or to activate. Motivation is the act of making someone to act in the desired manner through positive encouragement. It is through motivation that employees can be induced to work more, to earn more and to give better results to the Organization.


Definition of Motivation

According to W. G. Scot, "Motivation means a process of stimulating people to action to accomplish the desired goals."
According to Michael J. Jucius, "Motivation is the act of stimulating someone or oneself to get a desired course of action, to push the right button to get a desired results."

Features of Motivation

Psychological Process : Motivation is a psychological process useful for encouraging employees to take more interest in the work assigned. It relates to human relations.
Initiative by Manager : The initiative for motivation is by the manager by offering guidance and also by other methods like appreciation of good work or offering incentives. Management has to adopt special measures for motivating employees. They include monetary as well as non-monetary.
Continuous activity : It is a continuous and circular process. Subordinates need motivation in a continuous manner as their needs and expectations change from time to time. A manager has to study the needs of workers and use the technique of motivation accordingly. The process of motivation must be made a regular and continuous one.
Goal-oriented and action-oriented : Motivation diverts human behavior towards certain goals. Attainment of organizational and individual goals depends on the motivational plans.
Broad concept : Motivation covers needs, human relations and satisfaction of employees. For employee motivation, monetary and other incentives need to be offered. Job satisfaction is one such need and is useful for their motivation.
Essence of management process : Motivation is an essential function of a manager. He has to motivate his subordinates for achieving organizational objectives. Motivated labour force is an asset of a business unit. Motivated employees bring prosperity to a business unit.
Beneficial to employees and management : Motivation offers benefits to employees and Organization. It avoids crashes and encourages cooperative outlook among employees. Motivation leads to cordial labour-management relations. It provides more profit to management and better welfare to employees.
Varied measures available for motivation : For motivation, various monetary and non monetary incentives can be offered to employees by the management. Attractive wages, welfare facilities, job satisfaction, appreciation of good work, encouragement to self-development, job security and fair treatment are some measures of motivating employees.
Motivation is different from satisfaction : Motivation implies a drive towards a result while satisfaction involves result already experienced and achieved. 'When desire is satisfied, employee is motivated'.
Related to a person in totality : An employee is motivated in totality and not in part. Employee's basic needs are interrelated. Management must fulfill all the needs through monetary and non-monetary incentives.

Importance of Motivation

Motivation occupies an important place and position in the whole management process. This technique can be used fruitfully for encouraging workers to make positive contribution for achieving organizational objectives. Motivation is necessary as human nature needs some sort of inducement, encouragement or incentive in order to get better performance. Motivation of employee’s offers may benefits to the Organization and also to the employees. This suggests the importance of motivating employees. Motivation acts as a technique for improving the performance of employees working at different levels.
Motivation of employees is one function which every manager has to perform along with other managerial functions. A manager has to function as a friend and motivator of his subordinates. Motivation is useful in all aspects of life and even our family life. The same is the case with business. This dearly suggests that motivation is extremely important. It is an integral part of management process itself.

Advantages of Motivation

(A) Advantages of Motivation to Management / Organization
Increase in the efficiency and productivity of employees. Motivation ensures a high level performance of employees.
Better co-operation from employees and cordial labour-management relations.
Reduction in the rate of labour absenteeism and turnover.
Reduction in the wastages and industrial accidents.
Improvement in the morale of employees.
Quick achievement of business/corporate objectives and favorable corporate image.
(B) Advantages of Motivation to Employees / Workers
Employees get various monetary and non-monetary facilities/benefits which provide better life and welfare to them.
Security of employment and other benefits due to cordial relations with the management.
Job attraction and job satisfaction.
Higher status and opportunities of participation in management.
Positive approach and outlook of employees towards company, management and superiors.
Reduction in the rate of labour turnover which is harmful to employees and management.
Better scope for improvement in knowledge and skills of employees.

Motivational Factors / Incentives


(A) Monetary or Financial Incentives
Monetary incentives are offered in terms of money. Such incentives provide more cash or purchasing power to employees. Monetary incentives are extremely attractive to employees (particularly those working at lower levels) as they get the benefit quickly and in concrete terms. At the higher levels of management, non-monetary incentives are more important than monetary incentives. Workers prefer monetary incentives as compared to non-monetary incentives. Managements also offer liberal monetary incentives to all categories of workers.

Monetary incentives may be further classified as following :-
Individual Monetary Incentives : The benefit of individual monetary incentive is available to concerned worker only. For example, F. W. Taylor suggested differential piece rate system which offers different wage rates to different workers as per their production efficiency. Different incentive wage plans are the examples of individual monetary incentives as the benefit is offered individually to every worker. Here, a worker is paid as per his efficiency, productivity or as per the production given by him. Efficient/sincere workers give more production and get higher reward in terms of wage payment.
Group Monetary Incentives : In the group monetary incentives, the monetary benefit is not given individually but to a group of workers or to all workers in the Organisation. Workers have to work jointly/collectively as a team in order to secure the benefits of group monetary incentives. Bonus payment, pension, P.F, production/productivity bonus, profit sharing, etc. are the examples of group monetary incentives. For the employer/management, group incentives are more important as they offer many benefits to the management.
(B) Non-monetary Incentives for Employee Motivation
Job security and job enrichment : Job security is useful for the motivation of employees. Such security keeps the employee away from the tension of becoming unemployed. Job enrichment provides an opportunity for greater recognition and advancement. Job enrichment refers to redesign of jobs.
Fair treatment to employees : Employer should give attention to the needs, difficulties and grievances of employees. Small work groups and effective communication are useful for solving the problems of workers. Employees must be given decent treatment. They will be co-operative only when they are treated with sympathy and love, affection and dignity. Employees should also be given help in personal matters.
Recognition of good work : Recognition of good work at an appropriate time gives encouragement to employees to show better performance in future. As an appreciation of good work, prizes, rewards, promotions, etc. should be given.
Encouragement to self-development and career development: Employees should be given varied training facilities. Training facilitates self-development and also provides opportunities for career development. Every employee has a desire to grow, develop and rise higher. This desire should be exploited fully for motivating employees. For this, training as well as management development programme should be introduced.
Delegation of authority : Due to delegation of authority, a subordinate employee feels that superior has faith in him and also in his ability to use authority in a proper manner. Employees get mental satisfaction when authority is given to them. They take interest and initiative in the work and try to prove that they are competent to work at the higher levels. Thus, delegation of authority becomes a motivating factor.
Congenial working conditions : It is a non financial incentive for motivation. Employees should be given various facilities and conveniences at the work place. The work environment should be pleasant and safe. This creates desire to work efficiently.
Helpful attitude of management : The helpful attitude of management towards its employees creates a sense of affinity for the Organization. Fair treatment to workers creates better understanding among workers. Cordial industrial relations also motivate employees. Thus, enlightened and pro-employee attitude of management acts as a motivating factor.
Fair opportunity of promotion : Fair opportunity of promotion to all eligible workers is one more method useful for motivating employees. They take interest in the work as they feet that they will be rewarded in the form of promotions. Training facility should be provided to employees in order to make them eligible for promotion.
Labour participation in management : Labour participation in management is useful for the motivation of employees. Workers get higher status and better scope for expressing their views through such participation. Even the formation of quality circles or joint management councils is useful for motivating employees.


Designation and status : When an employee is provided with a better designation, it adds to his status. Employees are proud to reveal their attractive and high-sounding designations.
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More return from shares of medium companies


The investors have earned more from shares of the medium level companies with smaller price from the transactions in the past two and half months. The Nepal Stock Exchange (Nepse) has risen by around 200 points after the second election of Constituent Assembly (CA), while the share price of over half a dozen of 87 companies, whose shares are traded frequently, have increased by more than 100 percent. Most of the companies whose share price has increased more have a lower share price.
The Nepse index has risen by 183.49 points to 783.91 after the CA election. It is greater than that on November 14, when Nepse reached 600, by 30.56 percent. The market that crossed 800 in two and half months after that has dropped to 783.91 on Wednesday. The share price of majority of companies whose shares are frequently traded has risen during the period.
The investors who had invested in shares of Everest Bank at the rate of Rs 1,664 on November 14 have earned Rs 513 or 30.82 percent by Wednesday. Similarly, those who had invested Rs 140 for shares of United Insurance Company have earned Rs 200 or 142.85 percent. The share price of Life Insurance Corporation has reached Rs 2,450 after rising by Rs 687 in the period while the share price of Shine Resunga Development Bank has risen by 128.34 percent from Rs 170 to Rs 388. The share price of Self Employment Micro Finance Development Bank has also risen by 110.74 percent from Rs 410 to Rs 864. United Insurance has seen the biggest rise in terms of percentage while Nepal Life Insurance has seen the biggest rise in terms of rupee per unit. The share price of Nepal Life Insurance that was Rs 2,479 per unit on November 14 has risen by Rs 1,151 to Rs 3,630 by Wednesday.  
The investors investing in insurance, hydropower and micro finance companies have earned more. Though those who have invested in commercial banks, development banks, and finance companies have earned, they have earned less. Those who have invested in insurance companies have earned more than those who have invested in groups. Spokesperson of the Securities Board of Nepal (SEBON) Niraj Giri stated that investors have been attracted toward micro finance companies after a few of them provided good return. “The investors seem to be targeting greater return by making a smaller investment. This is a sign of maturity,” he said. “The majority of companies have chosen the medium companies as they provide greater return than blue-chip companies,” he reasoned. He explained that the share price of insurance and hydropower companies also rose more as they provided better return than others.
Investor Ambika Prasad Poudyal reasoned that the share price of insurance and micro finance companies has risen more as development banks and fiancĂ© companies have invested in the shares of insurance and micro finance companies. Stating that a short-term institutional investment on shares has a negative impact on the market he said, “The market will improve if it is held for a long period.” He revealed that the return provided by the insurance and micro finance companies is also comparatively better.  
Former President of the Stockbroker Association of Nepal Anjan Raj Poudyal also confirmed that investors investing in the insurance and micro finance companies have earned more. “There was comparatively under-pricing of shares of insurance companies until some time back. The share price of insurance and hydropower companies has risen now as the banks and financial institutions are investing on them,” he reasoned. He explained that the financial institutions have started to invest on insurance and hydropower companies as investing on companies of similar nature will lead to cross-holding. He explained that the price of insurance companies has risen more than others also because the Collective Investment Trust has also invested on shares of insurance companies while managing investment. He argued that attraction of insurance companies has also increased as they have distributed bonus shares in good proportion while raising paid-up capital.                 
10 companies whose share price has increased most in rupee after November 14
Company
Wednesday
Nov 14
Difference
Nepal Life Insurance Company
3630
2479
1151
Life Insurance Corporation
2450
1763
687
National Life Insurance
1840
1235
605
Everest Bank
2177
1664
513
Butwal Power Company
1270
800
470
Shikhar Insurance
1000
544
456
Self Employment Micro Finance Development Bank
864
410
454
Summit Micro Finance
890
459
431
Sagarmatha Insurance
1161
835
326
Rural Micro Finance Development Bank
880
560
320
    10 companies whose share price has increased most in percent after November 14
Company
Wednesday
Nov 14
Difference
United Insurance
340
140
142.86
Shine Resunga Development Bank
388
170
128.34
Self Employment Micro Finance Development Bank
864
410
110.74
Alliance Insurance
550
263
109.125
Triveni Development Bank
323
159
103.144
City Development Bank
385
192
100.52
Bishwo Development Bank
265
133
99.25
Summit Micro Finance
890
459
93.89
Machhapuchchhre Bank
465
250
86
Shikhar Insurance
1000
544
83.83

Continue reading More return from shares of medium companies