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Money Is Not Everything

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Money Is Not Everything
Money isn’t everything … or is it? A preliminary research study into money as a motivator in the licensed house sector
Karen Meudell Department of Business and Management, University of Portsmouth, Southsea, UK Karen Rodham School of Management Studies for the Service Sector, University of Surrey, Guildford, UK
The aims of this paper are to consider the role of money as a motivator for managers and staff in the licensed house sector of the hospitality industry and to consider the implications of the findings from both an academic and an industry viewpoint. As part of a one-day training event, a pilot study was undertaken with 57 managers and employees of an independent public house operator in an attempt to establish what makes people work and what makes them work harder. The research was then transposed into an academic context and related to underlying theories and research studies. Initial findings indicate that the traditional approaches to motivation do not necessarily apply to this particular industry sector. There are marked differences between managers and staff and these differences appear to be influenced by demographics and level in the organisation.

Theoretical background
“One more time: How do you motivate employees?” is, as Herzberg delighted in telling us, the most reprinted article in the history of the Harvard Business Review (Herzberg, 1976, p. 49). Although there have been criticisms of Herzberg’s theory (see, for example, King, 1970), whatever the answer, Herzberg, like so many behavioural scientists tends to lessen the comparative importance of money as a major motivator, preferring to concentrate on issues such as challenging jobs, the provision of feedback, a contribution to decision-making and the like. Kohn (1993a; 1993b; 1993c), echoing a point made previously by Lee and Lawrence (1985), argues that incentive pay schemes produce only temporary compliance and are ineffective at producing long-term attitudinal and behavioural changes;



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