5 main Importance of Motivation in Modern Organisations

1. Productive use of resources:

Modem organisation work through physical, financial and human resources. The utilisation of physical and financial resources depends on the willingness of people to work.

Motivation enables people to convert physical and financial resources into useful products. It helps management to get the best out of human as well as non-human resources.


2. Increased efficiency and output:

Motivation enables people to work enthusiastically. Performance is a product of not merely ability to do a task but the willingness to do the same with zeal and enthusiasm. Motivation bridges the gap between the overall efficiency and output. This, ultimately, helps in reducing the cost of operation.

3. Achievement of goals:

Motivation causes goal directed behaviour. It helps people to move in a desired direction and earn rewards. In organisations where managers try to understand the needs of employees and institute appropriate incentive systems, accomplishment of goals in fairly easy. If people are not properly motivated, no useful purpose can be served be planning, organising and staffing functions.


4. Development of friendly relationships:

Motivation brings employees closer to organisation. The needs of employees are met through attractive rewards, promotional opportunities, etc. employees begin to take more interest in organsiational work.

Their morals are high. They begin to think that the enterprise belongs to them and the interests of the enterprise are their interests and there is no difference between them. This helps in developing cordial relations between management and workers.

5. Stability in workforce:


Attractive motivational schemes satisfy the needs of employees. As a result, their commitment to organisational work increases. Employees do their tasks loyally and enthusiastically, they are not tempted to leave the organisation. This means reduced employee turnover. Further, satisfaction on the job means reduced absenteeism.