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Recongnising the work of the employees and motivating them with rewards is one of the effective motivational strategy used by the businesses. One of the most important thing which is having an affecting the motivational level of the employees is considered to be the money or the pay which is being offered by the businesses. Companies needs to focus on motivating the employees with both the financial and non-financial rewards for motivating the employees in an effective manner.


For understanding the implementation of this motivational strategy let us take the example of Amazon which is a retail company and using this strategy for motivating its employees. Amazon is focusing on offering both the financial rewards such as increments and the monetary incentives for the employee and the company is offering promotions and better recognition as well. It can be said that the company is using this strategy in an effective manner for motivating the employees to deliver high quality performance to the company.


This strategy is considered to be effective as the money is an important factor which motivates the employees. When the employees work hard in the company then they expect recognition and if their work is being recognised that it motivates them to deliver better performance in the company, this is also mentioned in the Vroom Expectancy theory of motivation.


The major challenges which are being faced by the firms while applying this strategy is that it is difficult to analyse that this strategy is helping the company or not. If the employees are inspired and motivated after applying this strategy then it is an better motivational strategy for the firm. The effecitvness of this strategy depends on the organsiational culture of the firm.

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