how can u increase employee motiivation with financial or non-financial incentives??

This not an objective question to answer in yes or no manner to this issue. It depends on lot of other factors  Like there are two sides to the coin, first we have to understand who gets this feedback? is it employer who thinks his employee is not contributing 100% or Employee feels it is not worth contributing 100%.like why an employee starts behaving less motivated? At what stage of his career  he is? Is it because of his peer pressure that he feels he is left behind in his career that is why he feels de-motivated? Is it because there is a substantial gap between his expectation from his life and reality? is it because he feels he is not being Recognised for his contributions?

According to me it is an organisations responsibility after having recruited a person how to deal with him. No body joins an organisation to get demotivated. it is only after joining the person becomes demotivated. The responsibility is with organisation to select right candidate and treat him properly after words.

For anybody most important thing in life is his Recognision. Most important thing Emploer should understand that people donot only join for money(even though it is one of the important factor) So in absence of other recognision factors money can not become instrument for motivation.

AN EMPLOYER CAN MAKE AN EMPLOYEE COST CENTER BY IGNORING HIS PSYCHOLOGICAL ASPECTS  OR MAKE HIM PROFIT CENTER BY FULLY CATERING TO HIS OTHER THAN FINACIAL NEEDS.

Yes, its not always money that employees look for. We need to support and give them their spaces and higher management should spend some time with them to understand their needs. It really cheers them up when a Sr.Mgr takes a coffee break with an associate.