The Importance of Financial Motivation

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INTRODUCTION
One of the main responsibilities of the manager is to motivate people in the organisation to perform above par at what they have been asked to. It is believed that the more accurately managers find the ways to motivate their employees, faster they would be able to get the jobs done with maximum efficiency and productivity and with minimized loses. It is said that 10% of a manager’s time is spent on developing motivational tactics (Locke 1982) but it is the established conclusion that managers in general do not have an accurate idea as to what really motivates their employees (Locke 1982). It is for this reason research on motivation has been a continual process. This essay is aimed at introducing pragmatic evidence into the thus far findings, research, practices and conclusions surrounding the employee motivation. Further, different motivational theories will be discussed to conclude which theory best fits in the respective organization and the environment within. This study holds great significance as to it would assist decisions on motivation, and how in different sectors set motivational goals and how with respect to people, strategies change. Further, readers would be able to conclude the effectiveness of either financial or non-financial motivation or both, depending on the structure of the job and the organisation. Theorists and research often have argued whether it’s the financial rewards that pull the best out of their employees or has it been the non-financial benefits that have motivated the employees thus far. In conclusion, it has been a race between financial aspects and the non-financial aspects and so far, different organizations have argued differently on the issue. This study aims to analyse both forms of motivational strategies by comparing F.W Taylors theory and research on it to what other theorists like Maslow, Mayo and Herzberg has urged upon. Thus, the essay is structured in such a way that it is a comparison between the two strategies. Since research on motivation has been a continual process and to understand motivation, one must have a good understanding on human-nature. As it is believed that organization with different employees would have employees of different nature, it is clear that every employee would be motivated through different, many ways. This is why, first part highlights the importance of financial motivation within an organization while the second part discusses the impacts of non-financial motivation on the employees. The theories are then applied to a case study, where comparisons of the two banks is conversed. In order to conduct proper research, I was able to extract information through phone and email contact with Mr. Ali Rizvi (Relationship manager at Barclays) and Mr. Abdul Razaq (Vice President Faysal Bank). Further, my own experience working at both the banks has also been an integral part of the information provided in the case study. Further, Mr. Rehan, the business manager at McDonalds was kind enough to let me conduct short interview with its employees for the financial motivational aspects. ANALYSING THE INFLUENCE OF FINANCIAL MOTIVATION ON THE PERFORMANCE AND COMMITMENT OF EMPLOYEES The concept of money as a motivational tool was first brought in by Frederick Taylor in 19th century, where through an experiment, Taylor concluded that workers would put in extra efforts into their job to maximise their gains (Opsahl and Dunnette 1966). It has been an important motivational tool since the start of 19th century and experiments have proved how effective money plays its role in motivating the employees, however, it has been deeply criticized as not being the prime tool for motivation. In order to analyse that, Rynes Colbort and Brown presented conducted a survey and found out that pay is more imperative in employees’ actual choices than it is in their reports of what motivates them. It means, the behavioural aspect greatly supports motivation. The finding...
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