To What Extent Financial Remuneration is the Key Motivating Factor for Employee?
Financial remuneration plays an important role as a motivator in the management practice today. Generally speaking, financial remuneration is a reward for employment reward of employment, which includes all cash or cash-equivalents that are given to employees in exchange for their work or services. It can be seen as the financial part of the compensation package that is not simply relevant to salary but also contained many financial benefits, such as weekly paycheck, cash bonus and stock option (wiseGEEK.com, 2014). As pointed by Teck-Hong and Waheed (2011), motivation is an internal force, dependent on the needs that drive a person to achieve. In nowadays human resource management practice, managers or supervisors use this concept of motivation to understand people’s behavior at work in order to help “move” their employees to act (Schulze and Steyn, 2003, cited in Teck-Hong and Waheed, 2011).
Because of the tight linking between performance assessment and payment in the modern management practice, financial remuneration often has been regarded as a key motivating factor by many managers and employees themselves. But according to the Herzberg’s (1966) Motivation-Hygiene theory, financial remuneration as a hygiene factor even can hardly be defined as motivating factors. Thus, this essay is an attempt to argue that financial remuneration is not a key motivating factor for employees. In order to demonstrate this, this essay will first examine the importance of financial factors by focusing on Maslow and Herzberg’s theory of motivation. Then, it will analyze the motivating factors found in management practice based on several articles about motivation.
2.0 Tests Based on Two Theories
2.1 Financial Remuneration in Maslow’s Hierarchy of Need
Maslow’s Hierarchy of Need is a widely known theory of motivation that depicts five motivational needs as...
References: Berl, R.L., Williamson, N.C., Powell, T., (1984) “Industrial Salesforce Motivation: A Ctitique and Test of Maslow’s Hierarchy of Need”, Journal of Personal Selling & Sales Management (May), pp. 33-99.
Herzberg, F. (1966) Work and the Nature of Man. Cleveland: World Publishing Company.
Teck-Hong, T., Waheed, A., (2011) “Herzberg’s Motivation-Hygiene Theory and Job Satisfaction in the Malaysian Retail Sector: The Mediating Effect of Love of Money”, Asian Academy of Management Journal, 16(1), pp. 73-94.
WiseGEEK.com What Is Financial Remuneration? Available at: http://www.wisegeek.com/what-is-financial-remuneration.htm (no date) (Accessed: 02 September 2014)
Zweig, D. “Manage the ‘Invisibles’”, Harvard Business Review (May), pp. 97-103.
Please join StudyMode to read the full document