Why should Management motivate employees when both parties have agreed on certain terms with reference to the performance of their duties?

The traditional performance management (TPM) process has not kept up with contemporary business challenges.

Using an outmoded performance management approach feels like driving up in a-era Thunderbird to pick up a colleague — the style may be a “classic” one, but the ride won’t be very comfortable or exhilarating.

Today’s knowledge workers are more educated than ever before and have a very different relationship with work. These smart, competent employees want to feel inspired. They want their work to have meaning and an “impact” on their organizations.

Added to the challenges of a changing workforce, companies now operate in a faster paced environment with a matrix-type of structure, and often requiring their employees to work collaboratively in globally distributed teams.

Most traditional performance management processes were designed based on the assumption that annual goal setting and adhering to employment terms is an effective way to manage the business. This assumption no longer holds true.

In today’s fast-paced, constantly changing business environment, agility is the key to success. Companies need to adopt processes that enable them to keep employees focused on the right activities and also provide them with flexibility to readjust when business needs shift.

Motivation levels within the workplace have a direct impact on employee productivity.   Motivated employees are excited about their jobs & carry out their responsibilities to the best of their ability.

Employees seek a work environment that includes clear direction, personal respect, appreciation and involvement. They need to know they make a difference. In case this is not provided quality employees will either just do their jobs well to remain employed or leave for the competition for the same terms

Also when we talk of stretch targets and goals for employees, Management must also stretch and make efforts to continuously motivate their employees.

A motivated workforce means highly productive staff. Motivated employees can lead to increased productivity and allow an organization to achieve higher levels of output. Ensure that your employees feel that their work and efforts are an important contibutions to the company's sucess. Employees feel to need recognised and appreciated. Motivating employees on a contiues basis can induce them to work hard and accomplish the challenges, thereby improving the morale levels amongst them. A motivated workforce tends to work freely and more passionately on the tasks assigned.

Employement is an investment on the medium or long term. Motivation is required to confirm the value of employees, give them self-confidence to keep them enouraged and do better and innovate. This shall have a positive return to the company's business and the employees at the end.