Non-financial incentives are as strong motivators as the financial ones. Critically examine this statement in the light of need priority model and two factor theory of motivation.
Non-financial incentives are as strong motives as the financial ones this statement is valid and true only to an extent and is subject to fulfillment of need priority model and two factor theory of motivation. Fulfillment of Physiological needs is primary and basic and once this is achieved then other two needs becomes very important. The last need of self realization or actualization can be objectives of non financial motivation. Actually, non-financial motivation factors cater to the self-actualization needs to a greater extent and esteem needs to an extent. Need priority hierarchy’s two basis needs and the two factor theory’s maintenance factor does not leave any scope for non-financial motivation.
As money can not be replaced with intangible incentives, non-financial incentives do not hold much water. A majority of people being given a chance and choice between a financial reward and non-financial incentive will opt for financial reward. Maslow’s theory of need and its Heriarchy hold good and non financial incentives can not over turn them, same is true of the two factor theory of Herzberg. Non-financial incentives work well at higher level of management where in even the ends of Maslow is need theory and Herzbergs two theory factor have since been fully achieved and have lost much of relevance in practical sense.