Business: Motivation in an Organization, Essay Example

Motivation in an organization is very essential. Employers need to device ways of motivating their employees to improve individual performance. There are several incentive approaches that can be applied to motivate individuals. These include commissions, bonuses profit – sharing plans, referrals and piecework plans.

Referral is an approach that involves recruiting of new personnel into an organization. Employees are encouraged to recruit new workers and they earn a certain amount of money after their recruited staff get through their probation period. In sales, a sales person would earn a commission depending on the amount of sales made by the staff he recruited.

A company can also give a portion of its profits to employees with an aim of increasing their productivity. This method is known as profit-sharing plan. It can also be used to limit or reduce waste or even recruit new employees. Commission is an incentive method commonly applied to sales people. This is where a sales person earns income depending on their level of sales.

Between the three approaches, the best could be the issue of commission. This is because productivity will be directly tied to commission. This means that the company is at win – win situation since it does not spend much incase there is low productivity. Incase of high productivity, the company will gain more profits and pay commissions which is an advantage to the company. The individual is also motivated to work extra to earn that extra coin hence increasing performance.