| Summary: | Globalisation and the falling of trade barriers across the world have changed the way organisations conduct their business. Organisations have to become more competitive to compete against local rivals and imported products. Employees fulfil a vital role in this strategy and productive employees can enable organisations to accomplish this goal. Employees need to be motivated to contribute to the challenges of globalisation and ultimately the success of the organisation. Organisations therefore need to create a motivating climate wherein employees can perform. A number of motivational theories are recorded, but older theories make the assumption than an average human being exists. The more modern theories, which identify the relationship between dynamic variables, are more relevant but to a large extent do not consider the influence of trade unions. Trade unions are still very active in South Africa, and a combined effort by organisations and trade unions could result in a win-win outcome for both parties. Rewards and recognition drive behaviour which will result in enhanced productivity. Monetary rewards are the preferred incentive amongst employees, but the effect of training and development opportunities are often underestimated and under-utilised. Employees are generally eager to improve their skills levels, which could have a positive medium to long term impact on the organisation. Effective leadership is crucial to improved productivity and leaders have to create the environment for employees to perform. Traditional management styles are no longer effective and modern leaders have to develop their skills to achieve sustainability of the organisation.
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