To what extent financial remuneration

Better Essays
Topics: Motivation
To What Extent Financial Remuneration is the Key Motivating Factor for Employee?

1.0 Introduction
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 hierarchical levels



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.

You May Also Find These Documents Helpful

  • Good Essays

    Employee Remuneration

    • 13556 Words
    • 55 Pages

    rendered. It is a monetary compensation for the services rendered [1]. A worker may be paid Rs. 100 per day or Rs. 4500 per month. This is wage payment. The worker gives his services and takes payment called wage payment. Industrial workers are paid remuneration for their services in terms of money called wage payment. Wages are usually paid in cash at the end of one day, one month or one week. Money wage is the monetary compensation or price paid by the employer to his employee for the services rendered…

    • 13556 Words
    • 55 Pages
    Good Essays
  • Good Essays

    Directors Remuneration

    • 1417 Words
    • 6 Pages

    GUIDELINES FOR DIRECTORS’ REMUNERATION The board of directors has both executive and non executive directors. Executive directors have both executive and board duties to perform while non executive directors have only board responsibilities. Therefore both types of directors vary in the responsibilities and authority they have in the company affairs. Thus the non executive directors devote very little time to company affairs ( only attend board meetings, committee meetings of which they are…

    • 1417 Words
    • 6 Pages
    Good Essays
  • Better Essays

    To What Extent?

    • 4231 Words
    • 17 Pages

    To What Extent Should Government Control National Healthcare? The general health of the population today must be considered one of the greatest marvels of human civilization and ingenuity. Pregnant women no longer have to dread the 10 percent risk of death at childbirth that used to be usual; a newborn in Canada today can expect to live 80 years; death related to childhood infections is now rare; the long-term outcome of childhood leukemia has changed from 85 percent mortality to 85 percent survival;…

    • 4231 Words
    • 17 Pages
    Better Essays
  • Powerful Essays

    To what extent

    • 9405 Words
    • 42 Pages

    THE UNIVERSITY OF HULL SCHOOL OF POLITICS, PHILOSOPHY AND INTERNATION STUDIES being a dissertation submitted for the Degree of Politics To what extent were private rented sector policies in Britain and Germany between 1914 and the early 1970s consistent with the characteristics set by Hall and Soskice’s ‘Varieties of Capitalist’ typology? A meso-level empirical comparison of predominantly rent control and regulation in the private rented sector between 1914 and the early 1970s in Britain and Germany…

    • 9405 Words
    • 42 Pages
    Powerful Essays
  • Good Essays

    Remuneration of Salesman

    • 1463 Words
    • 6 Pages

    Remuneration of Your Sales Force and Customer Service Team Members How do you decide what remuneration packages to adopt? How do you ensure that your remuneration packages incentivise and motivate the right people? How do you make sure that the amount of pay helps your staff with their lifestyle requirements? These questions are vital ones to anybody trying to run a sales team or customer service team, when you have a look at how you can actually reward personal effort as well as maintain service…

    • 1463 Words
    • 6 Pages
    Good Essays
  • Better Essays

    To what extent

    • 1508 Words
    • 4 Pages

    To what extent was Austria responsible for the failure of the Italian revolutionaries in the years 1820-1849? Austria played an integral part for the failure of Italian revolutionaries in between the years 1820-1849, due to their incredible influence throughout Europe at that time, being known as a superpower. Their military strength shone through, and crushed every revolution between 1820 and 1849. However, they are not the sole reason for failure. There are also other important factors that…

    • 1508 Words
    • 4 Pages
    Better Essays
  • Good Essays

    Remuneration Strategy

    • 920 Words
    • 4 Pages

    organizational remuneration strategy. Based on the case study “Remuneration as an Attraction Factor”, we can identify that remuneration is the key to draw and attract employees towards an organisation or a profession. Public sector organisations usually reward employees mainly for the job performed including the period of service and experience gained. On the other hand, private sector organisations combine basic pay with the skills, expertise and the performance of the employee. Remuneration is a reward…

    • 920 Words
    • 4 Pages
    Good Essays
  • Good Essays

    EQUAL REMUNERATION ACT

    • 3569 Words
    • 12 Pages

    EQUAL REMUNERATION ACT, 1976 [Act 25 of 1976 amended by Act 49 of 1987] CONTENTS CHAPTER I PRELIMINARY 1. Short title, extent and commencement. 2. Definitions. 3. Act to have overriding erect. CHAPTER II PAYMENT OF REMUNERATION AT EQUAL RATES TO MEN AND WOMEN WORKERS AND OTHER MATTERS 4. Duty of employer to pay equal remuneration to men and women workers for same work or work of similar nature. 5. No discrimination to be made while recruiting men and…

    • 3569 Words
    • 12 Pages
    Good Essays
  • Powerful Essays

    this report we have aimed to compare and contrast the remuneration plans and sustainability reporting between three companies, CRH, Kingspan and Marshalls. In doing this we aim to devise an appropriate remuneration plan and suggest sustainability reporting practices for Carminho Building Products considering Watts and Zimmermans Positive Accounting Theory and in line with the cultural and financial reporting context of UK. 2.0 Remuneration Comparison We aim to compare and contrast both the similarities…

    • 1623 Words
    • 7 Pages
    Powerful Essays
  • Best Essays

    | Remuneration and Reward for Graduates | | HRM 301 | Research Report | | | | | | Contents 1. Introduction 3 1.1 Graduate programs 3 1.2 Y Generation 4 2. Remuneration and Rewards 5 2.1 Base Salary 5 2.2 Incentives 6 2.3 Travel 7 2.4 Employee Benefits 7 3. Employee Engagement 8 4. Career Advancement 8 5. Training and Development 9 6. Conclusion 9 7. References 11 8. APPENDIX. Chart 1 13 Remuneration and Reward for Graduates…

    • 3646 Words
    • 15 Pages
    Best Essays