Following are some of the importance of motivation:

• Higher productivity:

Motivation induces men to work efficiently and it results in increased production and productivity. Motivation stimulates employees to work effectively and efficiently.  When employees are motivated, they will improve their working efficiency. The improvement in efficiency among workers leads to maximize production and productivity.

• Utilization of factor of production:

Motivation makes the human resource (employees) work sincerely and performing / completing task efficiently. If employees work efficiently then only there will be a possibility of utilizing of other factors of production properly and that too in maximum. Hence, motivation helps to utilize the factor of production in a managerial way.

• Best remedy for resistance to change:

An organization operates in a dynamic environment. Changes are a usual phenomenon in an organization. When any changes occur in the organization, the workers may not be happy, discomfort, assume insecurely and show their disagreement and protest against such change. But if they are properly, timely and tactfully motivated and managers give knowledge and inspiration, they will accept the change even more enthusiastically.

• Higher morale of personnel:

Motivation creates confidence among the employees. It leads to job satisfaction and high morale of employees which reduces employee turnover and absenteeism.Higher turnover and absenteeism creates many problems in the organization and affects the reputation adversely.

• Healthy Industrial relation:

Motivation helps to build the good relationship between management and employees. The employees are invited to participate in the decision-making function of the management. If the employees are properly motivated then the act of disobedience, demonstration against management, strike, lock-out etc are not shown by the employees.

• Improvement in cooperation:

Due to effective motivation, the employees will be ready to cooperate in the succession of the organization. By extending positive cooperation, employees help the organization to achieve the goals in one hand and they also solve their problem/ get satisfaction on the other. 

• Realizing organizational goals:

Motivated employees develop a feeling of total involvement in the task of organization and work wholeheartedly for the realization of organizational goals. So, motivation helps to realize the organizational goals to the employees.