We have seen that from a very long time businesses and employers have tried to motivate their employees with the carrot and stick method. Apparently, this may look like a good method to manage your employees and get good results. This method which is known as transactional leaderships is no doubt an effective method, but there are also other methods of motivating employees which are quite successful. Transactional leadership is a type of leadership in which the leader gets the work done through rewards and punishments. This is quite opposed to transformational leadership which increases motivation, morale, and performance of the employees through different methods.

We all know that satisfied and happy employees are very important for the success of the company. Let us examine what is it that employees desire from their employers? What are their expectations? How do you motivate your employees and how do you tell them that you appreciate their work and their work is valued? Most of the businesses or organisations use bonuses or raises to motivate them, but some experts are of the opinion that motivating your employees with money may not be really effective. We all know that most of the employees look forward to monetary gains, rewards, better salaries, better positions, and better offices. And, it definitely goes without saying that all the employees would certainly like a good job with a good salary without getting fired.

Though transactional leadership does work, there are other methods which can work better when combined with some other leadership styles and motivational tools. When employees know that they are included in any program, it provides greater motivation and overall satisfaction to them. Studies have revealed that though the transactional style has been effective, it has been overused by many companies.

There are limitations to transactional leadership which are given below:

  • Employees aspire for an enthusiastic leader. It has been observed that purely transactional leaders do not create enthusiasm for their work.
  • Employees contribute better when they belong to a project. Employees feel happier and motivated when they are involved and committed to their work. Every employee possesses some unique or special skills that can add value to the team and the organisation.
  • Most of the time, employees cannot work without direction – they need guidance or direction from their leaders to go forward.
  • Sometimes, transactional leadership can cause unethical behaviour. It is seen, at times, that employees do resort to unethical means to achieve results. They do not look at the means – they just look at the ends and they feel that the ends justify the means. The temptation of reward or the fear of punishment compels them to do that.

Here a few tips which suggest ways and means that can boost employee morale and happiness.

  • Individuality and autonomy: Allow your employees some independence to enable them to feel motivated. You could give your employees a bit of freedom and help them achieve their goals. Create a pleasing and cheerful environment in the office and you will see that the office attendance immediately goes up. You need not force people to come to the office. This system could work better than motivation created through cash awards and bonuses.
  • Rewards: You could also try individualised rewards tailored for the employees’ performance.
  • Be a true leader and emphasize on the company’s goals and objectives. Reward those people who fulfil these goals.
  • Employee recognition is an easy and fast way to increase employee-performance along with company performance. This is one way of motivating and retaining efficient employees.

We often ask the question why employee motivation is necessary and important, and how it affects the company performance? It is very simple – Rewarding the employees and their hard work is very important and essential. Rewarding the employees not only boosts the employee performance but, in turn, boosts the company performance and image.

Entrepreneurial Learning

Most of the businesses or organisations use bonuses or raises to motivate them, but some experts are of the opinion that motivating your employees with money may not be really effective. We all know that most of the employees look forward to monetary gains, rewards, better salaries, better positions, and better offices. And, it definitely goes without saying that all the employees would like a good job with a good salary without getting fired.

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