Best Way to Increase Work Motivation Is Through Financial Rewards

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For today’s organizations, the problem of how to effectively motivate staff has become an increasingly important issue. “At one time, money was considered the best employee motivation technique. But today, the use of money as motivation has several strikes against it” (Zani, Rahim, Junos, Samanol, Ahmad, Merican, Saad, and Ahmad, 2011, p331). Money is one of they most common and quickest ways of motivation but not very effective as employees now need more than just money. This essay discusses that financial rewards may not be the best option to motivate employees in an organization. Evidence will be provided to support the argument with along with their advantages and disadvantages. Here motivation will be defined as a stimuli acting on, or within, a person that cause the arousal, direction, and persistence of goal-directed, voluntary-effort. (Buchanan and Huczynski, 2010, p267). Motivation is concerned with what gets some one going to make a choice to act, selecting between alternatives, ad the sustained focus of action. (Buchanan and Huczynski, 2010, p267). Motivation theory is thus concerned with explaining why and how behavior is activated and sustained, If this understanding can be ascertained, it follows that, in relation to employee motivation, and better-informed performance and rewards management may be undertaken. (Perkins and White, 2008, p50) Motivation is broad concept, which includes preferences for particular outcomes such as straight of effort and persistence. These factors should be understood by a manager in order to motivate employees. According to Lord motivation of workers can lead to accomplishment, job responsibility, recognition and much more, it improves job satisfaction and increase productivity that leads not only to high profits but also a better image of the company (Ciorbagiu-Naon, 2010,p42). It shows that the company is a place with a good environment and even better work relationships between employers and their employees (Ciorbagiu-Naon, 2010, p42). According to Anda Racsa, motivating employee’s become a lot easier when the organization is well strategized, has a clear set of objectives and realistic deadlines (Ciorbagiu-Naon, 2010, p42). Management should understand and consider employees’ needs and wants before deciding on what tool to use to motivate them.

Motivation is determined by both monetary and non-monetary factors. In Roderic Gray’s (2000) own research he found that incentive payments may motivate people to do more that standard performance but then it become regarded as a part of the normal pay expectation. The possibility of not receiving them comes to be seen as a threat more like a punishment for not doing as well as expected. (Gray, 2004, p21) Whereas non-monetary rewards work in the long run because the encourage workers to be more efficient and productive. ‘Non financial reward is a non cash award given in recognition of high level of accomplishments or performance such as customer care or support to colleagues, which is not dependent on achievement of a pre determined target.’ (Sliverman, 2004, p7). They provide employees with something tangible that they can remember such as a special day or a great meal can enforce much more positive effect, than a sum of money paid into a bank account, as it makes them feel appreciated. Although non-financial rewards have the word “non cash” defined in it, it does not mean it has no financial value, it simply means that whatever the reward is, it is not just money. There is a wide variety of ways and theories in which non-financial rewards can work in practice. Some for them shall be listed and discussed below. One theory put into practice, by organizations, is the Expectancy theory. This theory, based on the works of Victor Vroom, states that behavior results from a conscious design making process based on expectations or subjective probabilities, that the individuals has about the results of different behaviors leading to...
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