Organization Reward and Motivation

Organization reward and motivation Introduction Motivation Definition Motivating behaviors Individual characteristics and motivation Money as motivation Pay and motivation Pay administration Pricing job Wage and salary surveys Pay range 10.Evaluating the results of pay for performance Reward Definition Equity in reward Compensation as reward Objectives of compensation management Basic aspects of compensation Challenge affect compensation Merit of reward Relationship between reward and motivation Conclusion Reference Money as motivator The issue on money as a motivator first needs clear understanding on what we mean motivation. Motivation is defined as a process which account for a person's intensity, direction, and persistence of effort toward attaining a goal. (S Robins, 2004) As an extrinsic rewards and one of the well known motivational techniques, money is proved to be a well-accepted motivator for a long history. It is normally reflected in pay rise, bonus or share option. It is an effective motivator but not in all cases. There are different studies, ideas, and motivation theories regarding the effectiveness. One of the famous motivation theories is Herzberg’s motivation theory which focused on two factors, Motivation and Hygiene. Hygiene factors such as pay if perceived as unacceptable lead to job dissatisfaction, if perceived as acceptable lead only to a state of no dissatisfaction. Hence, a large raise may result in a temporary excitement, but would not lead to job satisfaction. The second important theory is Adams’s equity theory and Homan’s distributive justice or exchange theory which states that an employee’s productivity and satisfaction arise from the degree of fairness (equity) or unfairness (inequity) that an employee perceives in the work place, in comparison with others. The degree of equity is defined as