Hi Sridhar,
It' s all depends on type of industries. Few employees motivates with achievement, recognition, work itself, responsibility, advancement, and personal growth. Monetary and Non monetary incentives has to parallel to each other.
Why employees work because of Money, Every employee have a life to live and his desires to be fullfilled on all fronts.
Incentives should be both like recognition and monetary rewards. Employees performance will improve if you have both. Its also depends on the industries you are working.
Every employee is not Interested in Monetary rewards because basic needs to be fullfilled.
Please Read this article :
1990's adapted hierarchy of needs including transcendence needs :
1. Biological and Physiological needs - air, food, drink, shelter, warmth, sex, sleep, etc.
2. Safety needs - protection from elements, security, order, law, limits, stability, etc.
3. Belongingness and Love needs - work group, family, affection, relationships, etc.
4. Esteem needs - self-esteem, achievement, mastery, independence, status, dominance, prestige, managerial responsibility, etc.
5. Cognitive needs - knowledge, meaning, etc.
6. Aesthetic needs - appreciation and search for beauty, balance, form, etc.
7. Self-Actualization needs - realising personal potential, self-fulfillment, seeking personal growth and peak experiences.
8. Transcendence needs - helping others to achieve self actualtization
Please Read this article for your information :
True motivators were found to be other completely different factors: achievement, recognition, work itself, responsibility, advancement, and personal growth.
People commonly argue that money is a primary motivator. It's not. Surveys repeatedly show that other factors motivate more.
For example : a survey by Development Dimensions International published in the UK Times newspaper in 2004 interviewed 1,000 staff from companies employing more than 500 workers, and found many to be bored, lacking commitment and looking for a new job. Pay actually came fifth in the reasons people gave for leaving their jobs. The main reasons were lack of stimulus jobs and no opportunity for advancement - classic Herzberg motivators - 43% left for better promotion chances, 28% for more challenging work; 23% for a more exciting place to work; and 21% and more varied work.
Please read this BASIC theory :
Maslow's hierarchy of needs -
1. Biological and Physiological needs - air, food, drink, shelter, warmth, sex, sleep, etc.
2. Safety needs - protection from elements, security, order, law, limits, stability, etc.
3. Belongingness and Love needs - work group, family, affection, relationships, etc.
4. Esteem needs - self-esteem, achievement, mastery, independence, status, dominance, prestige, managerial responsibility, etc.
5. Self-Actualization needs - realising personal potential, self-fulfillment, seeking personal growth and peak experiences.
Hope that this information will be useful for you.
Thank you
Shravan