The Importance of Financial Motivation
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
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
References: Bassett-Jones, N. and G. C. Lloyd (2005). "Does Herzberg 's motivation theory have staying power?" Journal of Management Development 24(10): 929-943. Frame, D. (1996). "Maslow 's hierarchy of needs revisited." Interchange 27(1): 13-22. Gratton, L. C. (1980). "Analysis of Maslow 's need hierarchy with three social class groups." Social Indicators Research 7(1): 463-476. House, R. J. and L. A. Wigdor (1967). "HERZBERG 'S DUAL FACTOR THEORY OF JOB SATISFACTION AND MOTIVATION: A REVIEW OF THE EVIDENCE AND A CRITICISM." Personnel Psychology 20(4): 369-390. Locke, E. A. (1982). "The ideas of Frederick W. Taylor: an evaluation." Academy of Management Review: 14-24. Opsahl, R. L. and M. D. Dunnette (1966). "Role of financial compensation in industrial motivation." Psychological Bulletin 66(2): 94-118. Pritchard, R. D., K. M. Campbell, et al. (1976). "Effects of extrinsic financial rewards on intrinsic motivation." Journal of Applied Psychology 62(1): 9-15. Rynes, S. L., B. Gerhart, et al. (2004). "The importance of pay in employee motivation: Discrepancies between what people say and what they do." Human Resource Management 43(4): 381-394. Wiley, C. (1997). "What motivates employees according to over 40 years of motivation surveys." International Journal of Manpower 18(3): 263-280. Maslow, A. H. (1943). A theory of human motivation. Psychological Review, 50, 370–396. A cognitive-systemic reconstruction of Maslow 's theory of self-actualization. By: Heylighen, Francis, Behavioral Science, 00057940, Jan1992, Vol. 37, Issue 1 Journal article by Ebrahim A