The Importance of Motivation in Business Organizations
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The Importance of Motivation in Business Organizations
Alejandro Erasmo Torres-Vielmas
University of Texas at Brownsville and Texas Southmost College
Abstract
As the business world moves into the information era, the locus of profit has shifted from capital-intensive industries to information-intense industries, where the employees are the profit lever instead of large amounts of physical assets, and as a result, the human resources have become a key factor in organizations. This new trend has new challenges to management due to this new profit lever (human resources). It is very complex compared to the old profit lever (physical assets), and it requires different approaches in order to attain its maximum performance. Now, human resources are a critical element, in fact, they are the difference between successful organizations and mediocrity. It is important that organizations know how to manage human resources. The purpose of this paper is to show how motivation is important in the organizations since it can help management to boost the performance and reduce the costs of human resources.
The Importance of Motivation in Business Organizations
The role of employees in the business organization has been transformed throughout history; the industrial era was a physical world, companies made and distributed things, the philosophy to increase profit was to invest large amounts in tangible assets such as buildings, machinery, land etc. So, if a company wanted to increase profit, the company used to invest large amounts in physical assets to increase its productive capacity, increase the number of units produced, and a result, increase sales which consequently leads to an increase in profit. In that era, management approaches ignored the importance of human resources as a key factor in organizations, management was focused on physical assets, and the competitive advantage was the efficiency to manage the physical assets. Michael R. Tyran argued that ‘‘how...
Alejandro Erasmo Torres-Vielmas
University of Texas at Brownsville and Texas Southmost College
Abstract
As the business world moves into the information era, the locus of profit has shifted from capital-intensive industries to information-intense industries, where the employees are the profit lever instead of large amounts of physical assets, and as a result, the human resources have become a key factor in organizations. This new trend has new challenges to management due to this new profit lever (human resources). It is very complex compared to the old profit lever (physical assets), and it requires different approaches in order to attain its maximum performance. Now, human resources are a critical element, in fact, they are the difference between successful organizations and mediocrity. It is important that organizations know how to manage human resources. The purpose of this paper is to show how motivation is important in the organizations since it can help management to boost the performance and reduce the costs of human resources.
The Importance of Motivation in Business Organizations
The role of employees in the business organization has been transformed throughout history; the industrial era was a physical world, companies made and distributed things, the philosophy to increase profit was to invest large amounts in tangible assets such as buildings, machinery, land etc. So, if a company wanted to increase profit, the company used to invest large amounts in physical assets to increase its productive capacity, increase the number of units produced, and a result, increase sales which consequently leads to an increase in profit. In that era, management approaches ignored the importance of human resources as a key factor in organizations, management was focused on physical assets, and the competitive advantage was the efficiency to manage the physical assets. Michael R. Tyran argued that ‘‘how...