Motivation is a state of mind. High motivation leads to high morale and greater production. A motivated employee gives his best to the organization. He stays loyal and committed to the organization. A sound motivation system in an organization should have the following features:

• Superior performance should be reasonably rewarded and should be duely acknowledged.

• If the performance is not consistently up to the mark, then the system must make provisions for penalties.

• The employees must be dealt in a fair and just manner. The grievances and obstacles faced by them must be dealt instantly and fairly.

• Carrot and stick approach should be implemented to motivate both efficient and inefficient employees. The employees should treat negative consequences (such as fear of punishment) as stick, an outside push and move away from it. They should take positive consequences (such as reward) as carrot, an inner pull and move towards it.

• Performance appraisal system should be very effective.

• Ensure flexibility in working arrangements.

• A sound motivation system must be correlated to organizational goals. Thus, the individual/employee goals must be harmonized with the organizational goals.

• The motivational system must be modified to the situation and to the organization.

• A sound motivation system requires modifying the nature of individual’s jobs. The jobs should be redesigned or restructured according to the requirement of situation. Any of the alternatives to job specialization - job rotation, job enlargement, job enrichment, etc. could be used.

• The management approach should be participative. All the subordinates and employees should be involved in decision- making process.

• The motivation system should involve monetary as well as non- monetary rewards. The monetary rewards should be correlated to performance. Performance should be based on the employees’ action towards the goals, and not on the fame of employees.

• “Motivate yourself to motivate your employees” should be the managerial approach.

• The managers must understand and identify the motivators for each employee.

• Sound motivation system should encourage supportive supervision whereby the supervisors share their views and experiences with their subordinates, listen to the subordinates views, and assist the subordinates in performing the designated job.