Page 4 - Lesson Note 2

(i) Motivation helps to improve performance levels of employees as well as the

organization. Since proper motivation satisfies the needs of employees, they in turn
devote all their energies for optimum performance in their work. A satisfied
employee can always turnout expected performance. Good motivation in the

organization helps to achieve higher levels of performance as motivated employees
contribute their maximum efforts for organizational goals.
(ii) Motivation helps to change negative or indifferent attitudes of employee to

positive attitudes so as to achieve organizational goals. For example, a worker may
have indifferent or negative attitude towards his work, if he is not rewarded
properly. If suitable rewards are given and supervisor gives positive
encouragement and praise for the good work done, the worker may slowly develop

positive attitude towards the work.
(iii) Motivation helps to reduce employee turnover and thereby saves the cost of
new recruitment and training. The main reason for high rate of employee turnover

is lack of motivation. If managers identify motivational needs of employees and
provide suitable incentives, employees may not think of leaving the organization.
High rate of turnover compels management to go for new recruitment and training

which involve additional investment of money, time and effort. Motivation helps to
save such costs. It also helps to retain talented people in the organization.
(iv) Motivation helps to reduce absenteeism in the organization. Some important

reasons for absenteeism are–bad working conditions, inadequate rewards, lack of
recognition, poor relations with supervisors and colleagues etc. Through sound
motivational system, all these deficiencies can be covered. If motivation is

adequately provided, work becomes a source of pleasure and workers attend to the
work regularly.
(v) Motivation helps managers to introduce changes smoothly without much

resistance from people. Normally, for any change introduced in the organization,
there may be resistance for changes. If manager can convince employees that
proposed changes will bring additional rewards to employees, they may readily
accept the change.