c

 


 
c 
 



BY:

ALEN SAM

YASH MEHTA

VINAY DESHMUKH

ABHISHEK ROKADE

SUSHANT KAYENDE

MADHAVI NARVANKAR

 
Table of Contents
Employee Motivation........................................................................................................................... 3
Intrinsic & Extrinsic Motivation ............................................................................................................ 4
Intrinsic Motivation (Non Monetary Incentives) ................................................................................... 4
Extrinsic Motivation (Monetary Incentives) .......................................................................................... 4
Comparison of monetary and non-monetary incentives ....................................................................... 5
Problems with monetary incentives ..................................................................................................... 5
Advantages of non-monetary incentives .............................................................................................. 6
Different generations of employees ..................................................................................................... 7
Differences in perception of rewards ................................................................................................... 8
Non-monetary incentives existing in organizations .............................................................................. 9
Examples of non-monetary rewards in some organizations ................................................................ 11
Developing non-monetary incentive schemes .................................................................................... 12
Tips for No-Money Reward and Recognition ...................................................................................... 15
Conclusion ......................................................................................................................................... 16
Case studies ....................................................................................................................................... 17
Survey questionnaires........................................................................................................................ 19
References......................................................................................................................................... 28
Contribution by team members ......................................................................................................... 28

 
›
loyee Motivation

Motivation is one of the most important aspects of an individual͛s R
 that determines not only
how individual behaves and thinks but also ways in which he / she interacts with others and influences
them. Motivation is derived from the word motives. The word motive is derived from Latin word
͞movere͟, which means to move or to energize. Thus motivation actives us and directs our behavior to a
particular goal.

There have been many classical definitions of Motivation, like the ones given by Atkinson in 1964, Jones
in 1955, Vroom in 1964 & Campbell & Pritchard in 1976. Summarizing these definitions, it can be said
that Motivation is the process that accounts for an individual͛s intensity, direction, and persistence of
effort toward attaining a goal. The primary concerns while discussing motivation are what energizes,
channelizes, and sustains human behavior. By definition, managers are individuals who achieve goals
through other people. The saying ͞If you want something done right, do it yourself͟ is very true as it is
very difficult to find people who could do a challenging job well than to do it yourself. But unfortunately
managers can͛t step in for their employees who are not performing well. They have the unenviable task
of nurturing necessary competencies and commitment in their employees. More often the employees
are competent enough to complete a task but they don͛t have the motivation to do their job to their
potential.

The necessity to motivate the employees is inherent in the primary objective of any organization-
increasing profit. It is an established fact that satisfied and highly motivated employees contribute their
best in the workplace. Thus the profits are maximized. Research findings have found many ways to
motivate the employees in their workplace. Apart from deploying financial and physical resources, every
organization must utilize its human resources effectively. Motivation enables an organization to do so.
Employees must be attracted to remain in an organization. They must perform the tasks for which they
have been hired must do so in a dependable manner. They must go beyond this dependable role
performance and engage in some form of creative, spontaneous, and innovative behavior at work-a set
of behaviors commonly called ͞extra-role behavior.͟ So for all these we need motivation. Motivation can
be achieved extrinsically by monetary incentives, or through punishments and intrinsically through non-
monetary incentives. We will mainly discuss the scope of non-monetary incentives in motivation of
employees.

 p
Êntrinsic & ›trinsic Motivation
Intrinsic Motivation: it is an internal motivation. When a person is motivated on his / her own, out of his
/ her interests, desires or likes which originate from within him / her. This motivation is said to be
intrinsic. People may motivate here by the inherent nature of the activity, pleasure of mastering
something new or the natural consequences of the activities.

Extrinsic Motivation: When human motives are stimulated by external rewards we say that the
motivation is extrinsic. Extrinsic motivation is directed towards goals, which are external to person, such
as money, grade in school, higher designation in the organization, promotions etc.

Êntrinsic Motivation (Non Monetary Êncentives)

It means that the employees are motivated because of the satisfaction they get while doing their job. It
comes from within him rather than from any extrinsic rewards such as monetary incentives. An
employee who is motivated intrinsically is mostly motivated by non monetary factors like responsibility,
growth, recognition etc. Intrinsic motivation also shows that the employee is more interested in the job
which interests him with a good working environment and a sense of responsibility to perform that task.
An individual who is intrinsically motivated will excel in his task either because he finds it challenging or
else interesting enough to give him satisfaction after completing it. This type of motivation is considered
to be very much effective in the long run of the company as the employees do their work according to
their own will as it interests them than just merely trying to escape from it once the task allotted is
done. So these are basically non monetary rewards which an employee wants if he is intrinsically
motivated. But the only concern in non monetary rewards is that it varies according to the career stage
and age. The older the employee the more focus on retirement or related to retirement income with
temporary jobs, while the younger the employee the more focus on job satisfaction and work
environment. So this also shows that the needs of incentives should be according to the needs of the
employee rather than having a uniform approach for all, which is then impersonal and sometimes
ineffective. Non monetary incentives include flexible work hours, training, and sabbaticals.

›trinsic Motivation (Monetary Êncentives)

Extrinsic motivation on the other hand means that the employees are motivated by means of external
rewards i.e. monetary rewards, grades etc. In this case the employees perform their tasks in return to
the external rewards they get which satisfies them and gives them pleasure and not because they are
interested in that task. So in other words we can say that extrinsic factors drive an individual to perform
a task for the sake of tangible rewards rather than their interest in it. These factors can be positive or
negative, positive motivators being monetary rewards and negative ones such as threats or bribes. So
extrinsic motivators focus on rewards rather than actions. However in reality this type of motivation is
only for short term. This is because the extrinsically motivated individuals will only perform their task as
long as they are been awarded and later on they won͛t perform their task if the rewards are not given.
And since employees do things only for monetary rewards, it can disrupt good relations between the
associates as they are transformed from co-workers to competitors, which then disrupts the workplace
environment. So basically in extrinsic motivation there may be some employees who are not quite
interested in their job but are motivated because of the rewards involved in it. Monetary incentives also
include profit sharing, project bonuses, stock options, scheduled bonuses (e.g. Christmas and
performance linked), and additional paid vacation time.

Co
arison of onetary and non- onetary incentives

Monetary and non monetary incentives differ in their roles, effectiveness and appropriateness. From the
above mentioned intrinsic and extrinsic motivation, it can be seen that intrinsic motivation is much
stronger than extrinsic one when it comes to motivating employees in the long run. And this is because
of the fact that the employees under intrinsic motivation will keep on performing better day by day as
long as they find their work interesting and satisfying at the same time. But this does not mean that
extrinsic motivation should not be used completely but it is just not the way for the long run. It is
because that extrinsically motivated employee will only find their job interesting as long as they are
been rewarded which can be either positive or negative. Also if you want to increase their performance
then they need to be given more rewards than before which if not given, they get de-motivated. Also if
an employee is given extrinsic reward then they will be no longer intrinsically motivated. Thus is really
vital to motivate employees intrinsically by explaining them that how the work will help them develop
and by encouraging them by giving challenging work, in a way by giving responsibility and recognition
for any work done. This will in turn motivate and enhance them for their future tasks and to meet long
term goals successfully. So it can be concluded that a balance between monetary and non monetary
incentives should be used to satisfy the varied needs of the employees.p

The purpose of monetary incentives is to reward associates for excellent job performance through
money. Monetary incentives include profit sharing, project bonuses, stock options and warrants,
scheduled bonuses (e.g., Christmas and performance-linked), and additional paid vacation time.
Traditionally, these have helped maintain a positive motivational environment for associates. Monetary
incentives can be diverse while having a similar effect on associates. Because it has been suggested that
associates, depending on their age have different needs pertaining to incentives, traditional incentive
packages are being replaced with alternatives to attract younger associates.

On the other hand, the purpose of non-monetary benefits is to reward excellent job performance
through opportunities. Non-monetary incentives include flexible work hours, training, pleasant work
environment, and sabbaticals.

ãroble s with onetary incentives

1.p Monetary incentives usually encourage compliance and achievement of difficult targets instead
of encouraging creativity, innovation and foresight which are more important in the long run.
2.p Employees lose their creativity in the long run in situation of excessive monetary rewards.
 3.p Employers also may use monetary incentives as an extrinsic rather than an intrinsic motivator. In
other words, associates are driven to do things just for the monetary reward versus doing
something because it is the right thing to do. This can disrupt or terminate good relationships
between employees because they are transformed from co-workers to competitors, which can
quickly disrupt the workplace environment.
4.p Monetary incentives can even drive the employees to falsely reporting their achievements.
5.p Huge monetary incentives given to middle managers are seen as a hook to retain them which
may make them work counterproductively.

|dvantages of non- onetary incentives

1.p c p 
pThe value of an honorary or informal recognition award, whether it's a plaque, a
mug, or a similar item, is longer-lasting than cash since cash is spent and gone, whereas the
recognition items remain on employees' desks or in their homes.
2.p 
p 
pNonmonetary awards can often be shown to co-workers and friends as a trophy
given in appreciation of good work. A check or a bank statement is generally something that
employees don't display.
3.p î R pThe type of nonmonetary recognition given can be designed to emphasize particular
organizational or team goals. For example, a mug or a tee-shirt with the team's logo could be
awarded to a team that has accomplished a short-term goal on time. The award recognizes good
performance and promotes teamwork.
4.p O
p
p Op c pA study of private sector awards found that employers spent less
money on nonmonetary awards than cash awards. However, the survey also found that
employers reported about the same level of performance improvement with cash and
nonmonetary awards and that the awards held approximately the same perceived value.
5.p c p  p
 R p p
  p Most people are uncomfortable bragging about
cash, but enjoy talking about their new golf clubs or trip. With tangible non-cash incentives
being visible and socially acceptable to praise, question, or bring up, there is no need to go out
of one͛s way to call attention to them. By providing a better means to indirectly call attention to
the award and what was accomplished to earn it, the value of earning a non-cash incentive is
enhanced relative to the cash value of the incentive.

 
ifferent generations of e
loyees
meneration is defined as a group of people with same years of birth. meneration is also defined by
common tastes, attitudes and experiences. Moreover, generations share a place in history; they have
common events and images which makes them unique personalities.

The majority of the world͛s population is divided into 3 generations: the Baby Boomers, meneration X
and meneration Y. Today͛s organization consists of a diversified workforce, hence it is common to find all
generations working side by side. Today͛s workplace is mainly dominated by 2 generations i.e. Baby
Boomers and meneration X. since each of these generations was raised in different times and with
different conditions, they want different things.

Rp  According to majority of the American authors, Baby Boomers are born approximately
around 1946 to 1964. They are the largest population of today͛s workers. After the Second World War,
more children than ever before were born. These children grew up in the 1940s and 1950s which were
optimistic and positive times. The belief in a bright future and expectations of new technology were
great. No problems were too big for the people of this generation. The children born in this era were
seen as the fruits of their parent͛s victories. It was the start of a great economic expansion.

  p  the people of this generation were born between 1964 and 1976. They are called
meneration X, men X or simply Xers. This generation consists of a lot less people compared to their
previous generation. meneration X grew up during a darker period. They thought that things would
never be as good as they were before. They grew up in times where divorces and absenteeism from
parents started to become common. This induced characteristics such as self-reliance and
independence. This was also the first generation that had both their parents working. The parents
devoted their lives to work. In their children͛s eyes, the parents ͚lived to work͛ unlike the Xers who
͚worked to live͛. This generation remained for a longer period in the school system giving them more
theoretical knowledge. They were also part of the IT bubble making them confident around technology.

  p Born in the mid-1980's and later, meneration Y legal professionals are in their 20s and are
just entering the workforce. With numbers estimated as high as 70 million, meneration Y (also known as
the Millennials) is the fastest growing segment of today͛s workforce. meneration Y grew up with
technology and rely on it to perform their jobs better. Armed with BlackBerrys, laptops, cellphones and
other gadgets, meneration Y is plugged-in 24 hours a day, 7 days a week. Nurtured and pampered by
parents who did not want to make the mistakes of the previous generation, meneration Y is confident,
ambitious and achievement-oriented. They are team oriented. They value teamwork and seek the input
and affirmation of others. Part of a no-person-left-behind generation, meneration Y is loyal, committed
and wants to be included and involved. meneration Y craves attention in the forms of feedback and
guidance. They appreciate being kept in the loop and seek frequent praise and reassurance. meneration
Y may benefit greatly from mentors who can help guide and develop their young careers.
ifferences in
erce
tion of rewards
Different generations perceive motivation in a different way. The things that motivate the people of one
generation need not motivate those of a different generation.

Baby boomers have a competitive nature and enjoy winning. They are known for their want to be in
charge, to make an impact and their focus on personal development. They are motivated by factors such
as being given a chance to prove themselves, gaining name and recognition in the company, public
recognition, different kinds of perks like company car and health insurance. Further, the feeling of being
needed and valued by the company, and development opportunities given by the company are highly
motivating factors for them.

meneration X is known to be self-reliant and independent. They all dislike rules; they prefer doing things
in their own way and are motivated by freedom to act. They like to have several projects allowing them
to prioritize, giving them the feeling of being in control. This group seeks a workplace that is challenging,
exciting and meaningful. They are highly motivated by fun office events and sporting events organized
by the company. To have a career is something important for them, and they want to be perceived as
successful.

The table below mentions some of the non-monetary rewards that appeal to the different generations.

p
 
Non- onetary incentives eisting in organizations
Various non-monetary incentives in Table 1 are affected by career stage and proximity to retirement.
The older the associate, the more the focus is placed on retirement or supplementing retirement
income with part-time or temporary jobs. The younger the associate, the more the focus is placed on
job satisfaction and the work environment.

Some of the non-monetary incentives existing in organizations are as follows:

] p 
pp  p   p p
 p p p   : Employees understand they need to
grow, learn and develop new skills in order to advance. The organization gives employees the ability to
be able to choose their assignments and rise to new challenges offered by new responsibilities.

p
î R p p 
p Family, children, friends, church, sports, hobbies and other activities all have
demands on today's employees. A flexible schedule or the occasional afternoon off can help employees
meet some of these obligations. By allowing some flexibility in an employee͛s schedule you can increase
their desire and motivation. This, to some, is considered the most important of the non-monetary
rewards in the workplace.

p  : In today's high paced work environment it is reported that employees consider it very
rare and infrequent that they receive recognition of their work and efforts. Think about it - What better
way to have employees continue their good work and success then to offer them praise-verbal, written
or ideally a public announcement or employee award? Recognition is probably the most sought after of
the non-monetary rewards in the workplace.

 p 
p 
p p OR
 p The opportunity to be part of the team, to work closely with
managers and management, to be involved in key decisions, to be listened to and heard.

 p    pp

 Employees want to be able to work independently. They do not want
someone constantly watching over them and questioning their every move. They like to receive their
assignments -preferable with the time frame required for completion and then have the independence
to complete the work given the guidelines and framework you have set on their own merits. This may
not be seen as one of the more obvious non-monetary rewards in the workplace, but it is definitely an
important one.

 p î Rp 

  Organizations are adopting feedback culture. It is the culture wherein all the
employees are taught the skills of effectively receiving and giving feedback which is the degree to which
carrying out the work activities required by the job results in the employee obtaining direct and clear
information about the effectiveness in their job performance. This includes telling each other frankly,
honestly and effectively what they think about their behavior, job performance, ideas etc. Employees
prefer being told what others think about them directly instead of in the roundabout way and they like
being given feedback to self evaluate their performance. They also would like to frankly tell their bosses
the various problems and issues faced by them. Feedback is of two types positive and negative. Positive
feedback improves the morale of the receiver and negative feedback improves the performance of the
receiver.
± p
  p    Employees want their bosses to be attentive to their complaints, concerns and
proactive in management rather than waiting for the event to occur. They want recognition for the work
that they do. Employee recognition programmes like ͞Employee of the month͟, even a spontaneous or
private ͞thank you͟ and other widely publicized formal programs that encourage specific type of
behavior and the procedure to attain recognition is clearly defined. In Nichol Foods Ltd., a British
bottling company there is a different kind of employee recognition programme known as ͞bragging
boards͟, where the accomplishments of various individuals and teams are regularly updated. Monthly
rewards are given on the basis of peer evaluation. In another company Applebee͛s restaurants, the
president herself leaves appreciation notes and voice messages on the employee desks if the employee
performs well. Simple things like sending personalized birthday cards, anniversary cards etc signed by
the highest official can work wonders in increasing the morale of the employees.

 p  ppR This is designing of already existing routine jobs into more creative or at least not
a boring one. Various ways of redesigning the jobs are as follows

pRp It is the periodic shifting of an employee from one task to another. This ensures that the
employee doesn͛t do the same thing again and again for a considerably long period of time.

 p Rp     It is the process of increasing the number and variety of tasks that an individual
performs results in jobs with more diversity. This increases the scope of the job and makes it more
interesting.

O p Rp 
  It is the vertical expansion of jobs, increasing the degree to which the worker
controls the planning, execution and evaluation of the work.

 pRp
 It is the arrangement that allows two or more individuals to split a traditional 40-hour-a-
week job. This promotes co-operation amongst the employees.

p  
 It refers to employees who do their work at home at least two days a week on a
computer that is linked to their office.

In most of the organizations, the employees are rewarded for their contribution through four categories
of awards:

ppp  Appreciation of good work done within the Department that sets an example for
the rest of the employees, done by highlighting the contributions through an appreciation letter by the
HOD and display on the Notice Boards.

p  pp
p

  These Awards are given for contributions that have a significant impact
on the function/business of the company.
Op  p
 As and when any cross-functional team working on an assignment exceeds the
requirements laid down for the work or achieves a milestone, the team may be sent out for a dinner or
an outing.

p

 p
 The purpose of this award is to recognize the ͞Best Performer͟ of the year.
Informal or spontaneous rewards can be implemented with minimum planning and effort by almost any
manager.

›a
les of non- onetary rewards in so e organizations

p Petroleum marketers have used informal rewards to recognize their employees' good works.
Chevron (San Francisco, CA) keeps a large box, secured with a padlock, filled with gifts. An
employee being recognized on the spot for some accomplishment is brought to the "Treasure
Chest" by his or her supervisor, who holds the keys. The employee gets to choose an item from
the box, which could be anything from a gift certificate, to a coupon for lunch or dinner, to
movie tickets.
p Mobil (Fairfax, VA) has formed a partnership with Carlson Marketing mroup where employees
can go on shopping sprees inside Carlson's distribution centre in Dayton, Ohio. Mobil officials
consider the program an exciting alternative to employees selecting merchandise from a
catalogue.
p Microsoft mainly uses the following three non-monetary rewards: recognition and praises,
flexible working hours and occasional Friday afternoon offs.

evelo
ing non- onetary incentive sche es
In order to make the system of non-monetary rewards in an organization useful and effective, the right
incentive must be chosen and the program must also be implemented correctly.

The incentives chosen should be unique and the award must be changed over time; if the item is given
frequently, it may quickly become ͞more of the same͟, making it subject to the value reducing effects of
diminishing marginal utility.

To increase the perceived value of earning the award, the prize should be something that is infrequently
purchased. If the employee is less likely to purchase the item on his or her own due to justifiability
concerns, this will increase the value of earning the award, and thus increase effort expended in pursuit
of that award. Social reinforcement can also be increased by using an infrequently purchased item or
service as an incentive. Since these items are not frequently purchased, these types of award are easier
to use as a means to discuss the performance that led to their receipt. In addition, items that are not
frequently purchases are likely to attract the attention of colleagues, increasing the so-called ͞trophy
value͟ of the award. Since the employee͛s colleagues, friends and family will admire the award, it will be
easier to use that award to broach the subject of the performance that led its receipt.p

To encourage an emotional rather than cognitive evaluation of the prize, employees should not be told
the market value of the prizes for which they are working. Knowing the value of the prize also makes it
more difficult for the employee to psychologically alter the predicted utility of the award. This will
reduce the ability of the employee to mentally increase the value of the award while working towards it
or to decrease the value when it appears that the award will not be earned.

The SMART concept

Use Jim Brintnall͛s description of ͞What Makes a mood Reward?͟ Jim says it͛s got to be SMART! That
means that rewards should be:

   Above all else, a good reward should reflect a genuine expression of appreciation. Token
acknowledgements leave something to be desired.

c 
 To endure a motivating influence, rewards should be aligned with the values, goals, and
priorities that matter the most.

R  The diverse workplace demands alternatives. Consider creative options to keep your
program fresh. No single reward format works for everyone all the time. [Recognition should be adapted
and valuable to the receiver.

  Some personal dimension is essential to a good reward. No matter how formal or informal,
expensive or affordable, the relevance of any recognition will be improved with a personal touch - - it͛s a
little thing that makes a big difference. (Recognition should be provided by someone of significance to
the receiver.)
  It is important that rewards respond to the behavior they are intending to reinforce. Don͛t let
too much time pass or the reward may be devalued and credibility eroded.

The Three P's of Reward and Recognition

Rewards should be:

   by determining whether they prefer private or public recognition and communicating with the
individuals involved to see what they prefer, whether it is an award, a gift, time-off, or money.

  by balancing the size or type of reward with the individual or group contribution and
accomplishments as it relates to organizational goals.

 
R  means making things fun and entertaining through the event in which rewards are given or
by the selection of a creative reward.

Recognition should be:

   by giving individual or group detailed information on relevancy of what was done, as well as
acknowledging when, where, why, and how it was done.

  by showing sincere and honest acknowledgment of an individual or group that supports
organizational beliefs and values through their commitment and accomplishments.

 by giving well-timed acknowledgment as soon as possible after the event has occurred or
action has been completed.

Total reward concept

Bearing this in mind, employers frequently consider both financial and non-financial rewards together
as means of attracting and retaining employees. Holistic rewards packages of this type are described as
Total Reward. At it͛s simplest; Total Reward can be described as ͞all the investments an organization
makes in its workforce and everything that the employees value in working for the employer͟. And, in
that respect, it could be said that all employers have a total reward package of sorts. However, Total
Reward is about maximizing the benefits of rewards packages for employers and employees alike.
Thus, Total Reward is better defined as:

|

 
 
 
       
 
      



  
 
   
     
          


 
  
  
  
              


  

  



       

  (CIPD 

 
, Revised April 2008).

However, while it is recognized that an holistic approach to rewards is necessary, this report has a
specific focus on the tangible non-monetary benefits that reward employees for their service and are
aimed at reaping benefits for employers in terms of improved recruitment, retention, performance and,
in the case of local authorities, better outcomes for service users. The report does not therefore
consider remuneration or those benefits in relation to building skills and creating direct opportunities
for progression, but deals solely with those rewards that focus on the health and wellbeing of the
individual.

There are a large variety of such benefits, as illustrated in the following list:

O p  p
p Holidays
p Life assurance
p Private medical insurance
p Critical illness insurance / long-term disability insurance
p Personal accident insurance

 pR  

p Bicycles
p Cars (for eligible staff) or employee
vehicle schemes
p Childcare vouchers
p Dental insurance
p Discounted services
p Financial planning
p mive-As-You-Earn charitable
contributions
p Health screening
p Home phone package
p Legal expenses insurance
p Pension
p Personal computers
p Pet insurance
p Retail vouchers
p Season ticket for travel î
 pO pp p p
p Travel insurance
p Concierge benefits (e.g. laundry service)

miven that there are a multitude of benefits that could be offered, the above list is not exhaustive, while
there could also be debate around the placement of some of the benefits listed. For instance, pensions
are very much a core benefit for local government staff and yet, the above list categorizes them as an
additional benefit. Other popular benefits which are worthy of mention include the likes of subsidized
canteens, Luncheon Vouchers and free parking. Further, there a number of permutations associated
with some of the benefits. Motor vehicles, for instance, can be purchased and provided in a variety of
ways, although it should be noted that the tax rules associated with these and, indeed, other schemes,
are often quite complex. Employers must therefore ensure that their policies and procedures are in line
with the relevant regulations.
Ti
s for No-Money Reward and Recognition
1.p Post a thank-you note on the employee's or team member͛s office door.
2.p Have your director call an employee or team member to thank him or her for a job well done, or
have the same person visit the employee at his or her workplace.
3.p mreet employees and colleagues by name when you pass their desks or pass them in the hall.
4.p When discussing an employee's or a group's ideas with other people, peers, or higher
management, make sure you give credit.
5.p Acknowledge individual achievements by using people͛s names when preparing status reports.
6.p Name a continuing recognition award after an outstanding employee.
7.p Ask five people in your department or company to go up to the person sometime during the day
and say "{your name} asked me to thank you for [the task or achievement]. mood job!"
8.p Write five or more Post-it notes thanking the person for a job well done and hide them among
the work on his or her desk.
9.p Have lunch or coffee with an employee or a group of employees you don't normally see.
10.pMake a thank you card by hand.
11.pLunch outings for the entire group as an ͚everyone-pays-his-own-way͛ event. The value is in the
going, so encourage but don't force anyone who isn't comfortable going with the group.
12.pA personal letter of thanks to the employee or team member from the CEO/senior manager for
a significant contribution (you might need to get the information to this person before the letter
can be written).
13.pLet the person you are recognizing know what you are doing or requesting on his or her behalf
(i.e., send the person a copy of your requesting memo). Even if upper management doesn't
approve the request, the person will know you were trying.
14.pClippings of special articles on a topic you know is meaningful to the individual. Attach a note to
relate the articles to something that is special to the person.
15.pShare verbal accolades. Don't forget to forward voice mail messages that compliment a team
member͛s work.
16.pAsk a person to teach or share his accomplishment with others as a way of recognizing the
person's ability and role.
17.pAsk a person for advice or her opinion; this demonstrates respect.
18.pRecognize an individual's accomplishments in front of peers -- yours or theirs.
19.pPractice positive nonverbal behaviors that demonstrate appreciation.
20.pMake a large calendar that can be posted. Call it the "celebration calendar" and use Post-Its and
written notes of recognition tacked onto specific dates to honor contributions made by team
members.
Conclusion
Motivation at workplace is very important as it increases job performance. Motivation is of two types:
Extrinsic and Intrinsic. Intrinsic motivation is better than extrinsic motivation after a certain minimum
level of the latter. Intrinsic motivation is attained through various non-monetary incentives. These
incentives aid self-management whose rewards result in intrinsic motivation. Various theories of
motivation also support intrinsic motivation over extrinsic motivation. It is found that various non-
monetary incentives given by various organizations motivate the employees intrinsically and improve
their performance. Non-monetary rewards can be particularly useful in the current financial climate as
local authorities͛ struggle, with constrained finances and increasing demand for resources, to offer the
salary increases that were once the norm.

p
Case studies

Case study 1:

 pOppp
p
  p p  pp pp  p

In the Philippines, the maling Pook Foundation and UNDP piloted a system of recognizing innovations in
capacity development undertaken by Local movernment Units (LmUs). The process involves a national
call for competitive entries from LmUs. These entries are then screened by the Foundation in the first
round and a shortlist made. The shortlist is then judged by a panel of independent, eminent citizens
against pre-set parameters. Finally, ten or fewer LmUs are chosen for the mawaad maling Pok Awards.
These awards are non-monetary and involve a citation and a trophy. The main draw of these awards is
that these are presented by the President or Vice-President of the Republic and covered widely in the
media. The Mayors of the winning LmUs are interviewed in the national press and their pictures are
circulated in the media. Being elected leaders, this creates immense political capital for the Mayors and
their staff members.

More significantly, the awards and their corresponding high profiles these generate have created a zeal
among LmUs that is clearly driving performance and innovation going forward. A second round has been
planned for 2008-09.

The awards, called the V         

 !"# were given to
LmUs, that
        
 $ 
  %
  &
   

      More specifically, this has involved identifying local
programs throughout the country that have helped build or enhance local government or community
capacities, either in the form of a policy, program, project, process or organizational intervention, and
contributed to specific MDm targets.

 
pp pp

p Incentives don͛t have to be monetary in order to drive powerful capacity development

processes and innovations. Pride, prestige, peer recognition or recognition that bestows
prestige are powerful drivers of institutional change and reform.

p Innovation frequently cascades across a number of capacity development strategies although

there may be a single entry point. This is in fact, so by definition that incentives are meant to
spur further action. In this case, the institution of an incentives system brought to light a whole
of host of innovations in other CD strategies such as mentoring and capacities to engage with
the public.
Case study 2:
p
ppc pO
p
 p
In 1998, Jennifer Shroeger was promoted to district manager for UPS͛s operations in Buffalo, New York.
She was responsible for $225 million in revenue, 2,300 workers, and the processing of some 45,000
packages an hour. She faced a major problem when she took over in Buffalo: turnover was out of
control. Half of Buffalo͛s work forces were part-time workers who load, unload, and sort packages who
were leaving at the rate of 50 percent a year. Cutting this turnover became her highest priority. The
entire UPS organization relies heavily on part-time workers. In fact, it has historically been the primary
inroad to becoming a full-time employee. Most of the UPS͛s current executives, for instance, began as
part timers during their college years, then moved into full time positions. The part timers are treated
well by UPS. They are given substantial financial aid for college, high pay and full benefits. In spite of all
these incentives UPS were not successful in retaining their workers.
Shroeger developed a comprehensive plan to reduce turnover. It focused on improving hiring,
communication and intrinsic motivation at the work place. She began by modifying the hiring process to
screen out people who essentially wanted full time jobs. She reasoned that unfulfilled expectations
were frustrating those hires whose preference was for full time. Next, Shroeger analyzed the large
database of information which was with UPS. After studying the database she found that her workers
were diverse in age and the amount of work experience they had. So these workers had different needs
and interests. Shroeger modified the communication style and motivation techniques she was using
keeping the above mentioned diversity in view. For instance, Shroeger found that college students are
more interested in building skills that they can apply later in their career. As long as these employees
saw that they were learning new skills, they were content to keep working at UPS. So Shroeger began
offering them Saturday classes for computer skill development and career-planning discussions. Many
new UPS employees in Buffalo were intimidated by the huge warehouse in which they had to work. To
lessen that intimidation, Shroeger improved lighting throughout the building and upgraded break rooms
to make them more users friendly. To further help new employees adjust, she turned some of her best
shift supervisors into trainers who provided specific guidance during new hires͛ first week. She also
installed more personal computers on the floor, which gave new employees easier access to training
materials human resource information on UPS͛s internal network. Finally, Shroeger expanded training so
supervisors had the skills to handle increased empowerment. Recognizing that her supervisors ʹmost of
them were part timers themselves ʹ were the ones best equipped to understand the needs of part time
employees, supervisors learned how to access difficult management situations, how to communicate in
different ways, and how to identify the different needs of different people. Supervisors learned to
demonstrate interest in their workers as individuals. For instance they were taught to inquire about
employees͛ hobbies, where they went to school, their likes.
By 2002, Shroeger͛s program was showing impressive results. Her districts attrition rate had dropped
from 50 percent to 6 percent. During the first quarter of 2002, not one part timer left a night shift.
Annual savings attributed to reduced turnover, based largely on lower hiring costs, are estimated
to be around $1million.Additional benefits that the Buffalo district has gained from a more stable work
force include a 20 percent reduction in lost workdays due to work related injuries and a drop from 4
percent to 1 percent in packages delivered on the wrong day or the wrong time.

 
Vurvey questionnaires

Name : Ashish munjal

Name of the company : Tata Consultancy Services Limited

Work Experience in present organization (in months) : 22 months

1.p Two types of non-monetary rewards received in your organization?

a.p TCS mEMS - Awarded for various reasons

b.p Acknowledgement of contribution during Town Hall meetings

2.p Two types of non-monetary rewards which you feel should be given in your organization?

a.p Achievers of the week within the team

b.p Achievers of the Month @ Department Level

Name : Rhucha Kulkarni

Name of the company : Tech Mahindra Ltd

Designation :

Work Experience in present organization (in months) : 24

1.p Two types of non-monetary rewards received in your organization?

a.p Corporate award: Dronacharya award for leadership

b.p Cookie awards for new joinees to acknowledge contribution to the team

2.p Two types of non-monetary rewards which you feel should be given in your organization?

a.p Team party to the significant contributor

b. Interest group membership example club membership for contributors

Name : Dinesh Agarwal

Name of the company : Tata Consultancy Services Limited

Work Experience in present organization (in months) : 24.5 months

1.p Two types of non-monetary rewards received in your organization?

a.p Leave benefits

b.p Flexible work hour timings

2.p Two types of non-monetary rewards which you feel should be given in your organization?

a.p Personal development activities

b.p Partners in Company, equity sharing on an increased basis

Name : maurav Sharma

Name of the company : Around Cable Systems Ltd

Work Experience in present organization (in months) :

1.p Two types of non-monetary rewards received in your organization?

a.p Foreign trips

b.p Recognition

2.p Two types of non-monetary rewards which you feel should be given in your organization?

a.p Appreciation Trophy in small ceremony

b. Laptop, cheap loan for vehicle

Name : meetesh Dodwani

Name of the company : meometric Ltd

Work Experience in present organization (in months) : 24.5 months

1.p Two types of non-monetary rewards received in your organization?

a.p Promotion

b.p Trophy, appreciation

2.p Two types of non-monetary rewards which you feel should be given in your organization?

a.p An off for a day or two

b.p A casual meeting with the top management of the organization

Name : Amol Mahale

Name of the company :

Work Experience in present organization (in months) :

1.p Two types of non-monetary rewards received in your organization?

a.p The company gives its employees accessories like company t-shirts, jackets, hats, cups, desk
accessories, etc

b.p Organizations have an Employee photo boards or "Hall of Fame" ʹ with kudos provided by peers

2.p Two types of non-monetary rewards which you feel should be given in your organization?

a.p Allow the employee to work off-site if possible for a particular duration of time

b.p mive him more autonomy to determine how the work is to completed and/or give him
additional staff for project development
Name : Prina Doshi

Name of the company : Accenture

Work Experience in present organization (in months) : 11 months

1.p Two types of non-monetary rewards received in your organization?

a.p Accenture give brownie points which you can use to shop from its portal

b.p Accenture announces best employee of tech week, best team, best tester, etc

2.p Two types of non-monetary rewards which you feel should be given in your organization?

a.p Allowing work from home to women

b.p Paid holiday

Name : Naveen Mehta

Name of the company : Tata consultancy Services Limited

Work Experience in present organization (in months) : 24 months

1.p Two types of non-monetary rewards received in your organization?

a.p Appreciation

b.p Project completion parties

2.p Two types of non-monetary rewards which you feel should be given in your organization?

a.p Leaves granted when required

b.p Constructive feedback and proper career guidance

Name : Swapnil Churi

Name of the company :

Work Experience in present organization (in months) :

3.p Two types of non-monetary rewards received in your organization?

a. spot award for exceptional performance in short term

b. employee of the month award

4.p Two types of non-monetary rewards which you feel should be given in your organization?

a. Award for any innovative work done

b. Promoted for being participative like making co-coordinator

References

 !"#$" c%&'

()
'
'*&+
'*'%*
*',*&),c%&'
)(*&()(*&**&#$$-.--)(*&/#$$/-.-/-0
*0&(01*(001*22#-"##0
)&*%)'&*(0&(1+/**&**&3&*c 423.0
('*)('35
*6#4*'*06#06#
&')1*6#'6#c'*
&+6#'*'%*0
)&)7*+(*'c'*&+'*'%*0
0&11('**(*&'&)**'&+/*'*0./&+//*&
/%&*/*1+**898:;###<





Contribution by tea e bers


p
p Different generations of employees, Differences in perception of rewards, Non-
monetary incentives existing in organizations, survey
p 
pc
 Employee Motivation, Intrinsic & Extrinsic Motivation, survey
p
R

p  Advantages of non-monetary incentives, Tips for No-Money Reward and
Recognition
p 

p   Intrinsic Motivation (Non Monetary Incentives), Extrinsic Motivation
(Monetary Incentives)
p c
p Developing non-monetary incentive schemes, Examples of non-monetary
rewards in some organizations
p p 


 Comparison of monetary and non-monetary incentives, Problems with
monetary incentives