Motivation - a strong desire to achieve a certain result

Morale - a spirit of confidence and purpose within a group or individual.

Benefits of motivated employees for a business:

• Employees who are motivated have lower levels of absenteeism and lower rates of labour turnover which reduce costs
• Motivated employees will see themselves as stakeholders and not workers which will make them more productive
• Motivated employees are more committed to the tasks they are given
• High levels of motivation makes change easier to implement
• Motivated employees present a better imagine of the business to external bodies

Factors that affect motivation can be divided into two areas:

• Monetary methods - these assume that employee performance is linked to how much they get paid for their job. Such as commission, profit sharing, share ownership and bonuses.
• Non-monetary methods - these assume that motivation results from factors other than financial incentives such as increasing responsibility. Such as being given responsibility, receiving praise and being given interesting work to do.