In Tata Steel several initiatives have been taken to further improve the motivation levels and participation in the decision making process of the officers, greater impetus to training through a formalised system of a personal development programme, talent review and job rotation systems, compensation linked to the performance management system, formal rewards and recognition systems, knowledge management systems linked with appraisals, leadership opportunities in quality circles, continuous improvement and value engineering programmes and an extremely transparent and credible multi-path communication system to address queries and concerns of all employees through various dialogues both formal and online, with such tools as video conferencing, ‘MD Online’, special dialogues with senior management, meetings, conferences and seminars. These initiatives have helped to build a homogeneous and focused team in Tata Steel, increasing motivation and binding to the vision of the company and spurred employees to deliver targets on a participatory management basis leading to ownership of processes.

In the example of Tata Steel you have seen how the direction, motivation and effective leadership has taken the company forward. According to you, which of the following is the importance of motivation?

• Motivation helps to improve performance levels of employees as well as the organisation.
• Motivation helps to change negative or indifferent attitudes of employee to positive attitudes so as to achieve organisational goals.
• Motivation helps to increase employee turnover and thereby saves the cost of new recruitment and training.
• Motivation helps to increase absenteeism in the organisation.

1 and 2

Motivation helps to reduce employee turnover and thereby saves the cost of new recruitment and training. The main reason for high rate of employee turnover is lack of motivation.

Motivation helps to reduce absenteeism in the organisation. Some important reasons for absenteeism are–bad working conditions, inadequate rewards, lack of recognition, poor relations with supervisors and colleagues etc.