Motivation means stimulus

Motivation means stimulus to achieve goals set out for them by the management. Compensation as a reward for services rendered by sales force to a company serves as a financial incentive. It motivates them to give out their best to the company; Compensation undoubtedly provides a strong stimulus to salesman to vibrate, i.e. To work harder, because largely all physiological needs of salesman are served by the money which they get out of the financial rewards. It is precisely to motivate salesmen that composition and methods of compensation are varied to suit their specific needs. Both managerial experiences and studies have shown that these financial rewards go a long way in motivation salesman to give out their best to the company. It is particularly relevant to developing countries where even physiological needs are not fully satisfied in a number of cases.

  

However, money alone does not ensure consistent motivation to salesmen beyond the point where physiological needs are satisfied, both managerial experience and studies have also corroborated this phenomenon. A salesman who is not earning enough money to meet his and his family’s basic requirements of food, clothing and shelter is not likely to be much concerned about other needs in the hierarchy so long as these remain unsatisfied. But once these physiological and security needs are satisfied, the belongingness, esteem and status, and self-actualization needs become pre-potent and emerge more or less in a sequential order. Money, thus, ceases to be much relevant and loses much of its motivational force. A recent study, according to this study, the importance of certain needs or derives changes as one advances from a bare subsistence level, where survival weight most heavily, to needs of higher and higher orders. The diminishing importance of money in the executive’s advancing years is to be expected, not only because money becomes merely a ‘score card’ to those who have already enjoyed substantial success in their careers but also because the senior executive is usually better paid and finds the utility of additional money minimal.