‘The fact remains that money can be used to motivate people’. If any organisation wants their workers to be more committed to their roles which has been appointed to them by the head of department; also they have to encourage them through cash incentives. The quality of incentives is to bring about new ideas (peter.h 2009), also most people agrees within themselves that money is very important in life. That is, for someone to get involve in day to day activities money is been needed. Moreover; if the value of money gets been increased in all over the part of the world, this those not mean that every individual will be better off.
Moreover, early theories argued about the independent from monetary factors regarding the economics analysis that shows the difference between’ monetary sector’ and the’ real sector of economics ’which take us to the view of economy which now called ‘classical dichotomy’.
DEFINATION OF MONEY
Money can be defined as anything which is generally accepted as a medium of exchange of goods and services. That is what ever everyone agreed on in a particular society to be use for the exchange of goods and services. Also money can be said to be something that can be used to pay off people regarding the work that has been done by them. This consist of coins and notes, ‘money must also be of the same size and shape all over a particular country’. Money is something which as being officially issued as a legal tendency by the government or head of the state. The economics has another way communicating when it comes to money, sometimes they describe it as what can be used as a store of value, unit of account and the exchange of goods and services; more also business men’s do agree that money should be used in exchange of their goods. The economists also accept the plainness of money to be used in term of long time equilibrium at the right time that change needs to occur.
FUNCTIONS OF MONEY
Medium of exchange;
Assuming money is not in an existence, goods and services will have been exchange for trade and barter. That is people will have been purchasing what they are in need off through barter process. For instant; if Mr. A has beans and he is in need of rice, he has to look for someone that has rice and is in need of beans at that particular period of time then swap the beans for rice, so whenever this process takes place it is called ‘trade by barter system’. One of the challenges that barter system faced is that for every transaction to takes place it required a double coincidence of wants. Goods and services can only be brought from someone who is in need of what the other person have got.
STORE OF VALUE
With money we are able to purchase whatever we are in need of and at the particular time. Money also helps us to purchase what we don’t need at the present moment which brings us about keeping or storing of what will be needed in the future. For someone to enjoy a store of value, money must be really stable in value. That is, if a particular price of a product get rise, these may bring about reduction in the purchasing level because for more goods to be purchased, it will require more money of which the purchasing power that has been given has a limit.
UNIT OF ACCOUNT
Money can be used for accounting use without been table. this can be illustrated on a paper sheet, for instant XYZ property limited as a case of study; the accountant of this company need to prepare a profit and loss account and as well as balance sheet of the organisation so as to know if the they are making more profit or not. Money can also be representing as a figure, it can also be used as a means of purchasing goods and services by credit transfer or cheques.,. Unit of account can also be describing as what can be used to know the worthy of a particular goods and services, outstanding bills and calculations.
More also, any price can be fixed on a particular goods and services by the seller, it is left for the buyer of the commodity to check the value of such goods and services whether it worth the price that has been tag on it or not.
CHARACTERISTICS OF MONEY
DURABILITY
Money must be able to last for long without been out date. That is money must not get expired easily, but the only way money can easily get damaged is when it got wear and tear off.
ACCEPTABILITY
Anything that must be called must be generally accepted by every members of the society as a means of exchange. that is, everyone in that community must believe that with the use of the money, they can be able to purchase whatever they are in need off
DIVISIBILITY
Also whatever is said to be called money must be easily be divided from higher denomination to the very smaller denomination so that goods and services needed can be able to be purchased without any worries.
PORTABILITY; money must be really be portable. That is anything called money must be easily carried from one place to another without going through any stress in other to be able to make any form of transaction at any time in any part of the world.
SCARCITY
That is anything that can be as a medium of exchange must not be unavailable. Money must be available at all times so that whenever something is being needed such thing can be easily being purchased.
TYPES OF MONEY
COMMODITY MONEY
This type of money started from the olden days at the time when trade by barter was the only means of buying and selling of goods and services. It involves the exchange of silver and gold because metals are very difficult to get damaged. As well, it is easier to know their worth. Silver and gold can only be use for the exchange of goods and services while diamond cannot.
REPRESENTATIVE MONEY
This means money can be represented with something else, which has been accepted by the people of the society as a means of exchange or purchasing of goods and services. For instant, during the colonial days anyone that is in need of any commodity has to look for he has to search for who has got the commodity and give back tobacco in place of the goods and services.
FLAT MONEY
This is the type of money which got intrinsic value. However, this can be changed into different types of resources. Flat money can be defining as a tax rate that as to be paid naturally from every transaction that takes place. Moreover, the government must make sure that the money impose on it is not too high so that the people in the society will be able to pay without affecting them.
PAPER MONEY
This do not have any intrinsic value. This type of money is being approved by the government as a legal tendency which can be used for purchasing of goods and services. Paper money can also be defining as a type of currency which can be used for transaction to take place.it can only be printed by the central bank so as to be able to control the way is been release to the public as well for it to be of the same size and shape all over that particular country.
MOTIVATIONAL INCENTIVE
These can be describing as what that can be given to someone so as to appreciate and encourage the good works that has been done by such individual. Also motivational incentives can be defining as what can encourage people to go extra mind whenever they are at the place of work, so as to be able to deliver their best at all times.
More also, it can be defining as something that can forcefully drive an employee to engage in more hard work. As well, it can help someone to change from the bad behaviour to a very good one. For instant, if a lecture tells his/her student that anyone that scored the highest grade will be awarded and be given a particular amount of money, by doing this the lecture has given them a very good reason to study more. Motivational incentives can also define be define as an act of promising an employee to be rewarded for their hard work. It can be describing as something that can be given to Individual in other to appreciate their hard work so that such individual can be more committed. The needs of incentive can be
To make the employee to bring out more from them.
To make them to be more committed to their job.
To also make them to focus more on what they are doing without having any side distractions. Along these lines, administration brings to the table the accompanying of two classes of motivational incentives that can encourage an employee to do more with all their strength. They are;
MONEY RELATED MOTIVATIONAL INCENTIVES
These is process where by those motivators which fulfil the subordinates by giving the reward for all their good work. Cash is very important to every individual. that is with money someone can be able to purchase what so ever is been needed be it social need, physical needs and soon. More also, in some organisation the board of director do organise a different way in which the company do compensate every individual for their hard work. For example; a tux company desired to increase Mr abs salary or wages due to the hard work and commitment towards the organisation.
NON MONEY MOTIVATIONAL INCENTIVES
This can be called a fiscal motivation. Also these are sure non-monetary driving force which can be use to encourage an employee. It is also a type of motivation which cannot be measured with cash. Similarly, it is a means of encouraging every workers of a particular organisation to be able to do more. As well whatever the director wants to use in order to compensate the employee must not be money.
TYPES OF NON MONEY RELATED MOTIVATING FORCE
HIGH LEVEL PROMOTION
Promotion is one of the great thing that can make a worker to be so happy at the place of work, that is if someone is been promoted this will make the employee to be more committed.
ACKNOWLEDGEMENT
This is another thing that can encourage an employee to do more. For instant when someone is being praised for the good work that has been done.
SUGGESTION SCHEME
This is also important for employee, when an employee brings up a new and reasonable ideas that can benefit the company, by doing this; the company can decide to publish the workers picture and name on the company magazine so as to encourage such individual.
JOB SECUREMENT
That is if an employee job is been secured for sure, this will make such employee to be more committed. Such individual will be far from mental worries. And will make sure that the organisation is making progress in all areas.
JOB ENRICHMENT
This is another motivational incentive that can drive every employee to put more effort to their work. That is, every job should be renew and redesign always so as to make it more interesting for the workers. i.e. new ways of doing things should be applied and this can be done by increasing the employee responsibilities. Also some employee like to be challenge so that they will be improvement on their performance. As well, when the tasks of an employee is been increased, this will drive the employee to put more effort and work very hard.
Conclusion
I will come to the end part of this research by saying that money reward is more superior than any other motivational incentives because we all know that everyone is likely to interested in money than any other thing. It has been noticed that with money, individuals can be able to purchase what so ever is been needed. more also, as a hardworking employee in an organisation, if there is an increase in the wages or salary or bonus due to how committed the employee is, this will automatically help the worker to be more hard working and committed more than before.