Monetary Means of Motivation

= Monetary Means of Motivation =

 Miller Burns 

 There are so many questions regarding the way by which we go about motivating our people, friends, associates, etc. Should it be through pay raises, praise or what kind of incentive is the best? While many companies generally combine a mix of salary, commissions and bonuses some offer differing strategies to most effectively get their employees working with the most diligence and satisfaction. Research, focusing on the sales force of a large office supply company, was conducted by Harvard Business School professor Thomas Steenburgh and Doug J. Chung and K. Sudhir of the Yale School of Management. In an attempt to gain insight on how a firm should financially motivate their employees, research suggest that financial motivation through larger annual salaries were in fact less effective for efficient productivity vs. the quota-bonus scheme. As it would turn out, employees generate more revenue for the company, build longer lasting partnerships, and ultimately achieve more success and satisfaction when they felt motivated by the quota bonus scheme. This approach served as a motivational factor that provided much more of an incentive for employees to give everything they have to achieve the most success and feel a sense of accomplishment throughout the firm. Also, according to Sudhir, quarterly bonuses seemed to act as a continuous evaluation scheme to keep sales agents within striking targets of their annual quotas. As with all areas of motivation there are multiple ways to ensure proper tactics are in place to get your employees working the hardest they can with the highest degree of personal satisfaction. You just need to know how to effectively break the bank.



 Work cited

 Steenburgh, Thomas, Doug Chung, and K Sudhir. "Harvard Business School ." A Dynamic Structural Analysis of Bonus- Based Compensation Plans 1323 (2010): 23-34. A Dynamic Structural Analysis of Bonus-Based Compensation Plans. Web. 2 Dec. 2013.



