Concept of Motivation and Incentive

Motivation is used to explain human behavior and it is the scientific word used to represent the reasons for our actions, our desires, and our needs. Motivation is also an inducement for better performance towards goal achievement.

Human behavior is goal directed and the behavior should be motivated with the interaction between the individual, job and the situation. Motivation in organization makes employees to give more effort in work and activates their willingness to increase productivity.

According to Ricky Griffin “Motivation is the set of forces that cause people to behave in certain ways”

According to Fred Luthans “Motivation is a process that starts with a physiological or psychological deficiency or need that activates behavior or a drive that is aimed at a goal or incentive.”

The key elements in motivation are

1.       Effort: It energizes behavior and motivated people always try hard.

2.       Goals: Goals also direct the individual behavior.

3.       Needs: People have their needs. Motivation is a need satisfying process and need satisfaction enhances behavior.

An incentive is something that motivates an individual to perform an action. Incentive is central to the study of all economic activities both in terms of individual decision-making and in terms of co-operation and competition within an organizational structure. Economic analysis and the differences between societies, amounts to characterizing the differences in incentive structures faced by individuals involved in these collective efforts. Ultimately, incentives aim to provide value for money and contribute to organizational success.