In the realms of management, leaders and Human Resource managers often discuss why do individuals workfor monetary benefits or satisfaction? In fact, both these factors contribute to workers’ demands which can be manipulated by managers in order to improve the performance and efficiency of the organization. Extrinsic motivation external motives for gifts, incentive and bonus connotes to the employees’ desire such as marrying someone for the attainment of money, whereas, intrinsic motivation is more related to love marriage (Adonis, 2015). In a materialistic world, an economically distressed man (except few affluent) has no passion to work voluntarily rather than economic remunerations. Thus, self respect and a sense of achievement may sometimes drive a person, but money is the primary source of employees’ motivation.
Several theories of motivation including Maslow’s hierarchy of needs, Reinforcement and Expectancy Theories along with historical evidences have established the significance of material benefits in both social and economic perspectives (http://www.saylor.org/).
To begin with, the process of motivation needs to be understood. As defined, the desires and needs that drive human behaviour towards fulfilment. For a hungry child, a loaf of bread will suffice his basic needs, while a child from a high status family requires other social benefits like good education and playing. Meanwhile, adults or employees in a cooperate-sector have also been categories on the basis of their desires: the lower level workers become happy with monetary gains, yet the high coterie might have different approachesrespect/prestige besides lucrative salary and perks and privileges.
In addition, the author discussed in his research study The Link Between Pay and Performance noted that pay most often is associated with the ruminations; with appreciations and rewards, the performance level of the employees can be raised (Peter Reilly, 2003). Ian Taylor, a renowned sociologist, also considered money as the sole motivating factor for boosting the morals of the workers in an organization to perform more efficiently.
Then, in order to enhance job satisfaction and increase productivity in organization, monetary benefits are termed amongst the most crucial factors. The primary need of a person is survival, according to Maslow’s hierarchy of need: all individuals have needs which they want to fulfil at any cost: food, water, clothing and sleep. Other needs follow suit only upon the attainment of the psychological one. As most of the workers in an organization belong to lower middle class, their goals and desires are restricted to social life; therefore, providing incentives such as a rise in the salaries, bonus and commissions might surely lead to improvement in performance and productivity.Reinforcement and Expectancy theories also give in an insight into the level of motivation associated with material gains. In the reinforcement, the employees are believed to have increased their struggle for higher growth rate owing to performance based salary.
Furthermore, when employees perceive their efficiency will provide them with more privileges and grade then they will act accordingly. As a result, the overall performance and productivity have to augment immediately. Money is amongst the fourth ways that exhort employees to perform well, as per an industrial psychologist Edwin Locke, adding the average increase in the level of performance was recorded 30 percent (from money) compared to others indicators: 13% and 17% for goal setting and job design respectively.
In the historical view, transformation has occurred in people perspectives and attitudes due to the involvement of money. Last year, The Economist unfurled the notion that people had to pass through an inhumane treatment before the industrial revolution, now working condition is far better for both the poor and the rich (C.W., 2013). Freedom and prosperity began with the introduction of paid jobs, for instance, Chinese and Indian people continued their struggle to attain a higher social mobility. The standard of education, healthcare and food calories increase precipitously. Hence, most leaders motivate their citizens to work hard so as to acquire a lifelong advantages including high quality of lifestyle. The visionary leadership of Lee Kuan Yea, the first Prime Minister of Singapure, is the classic example of motivations who transformed the poor country to a first world in a single generation.
However, using money as a motivating factor also involves negative impacts on the organization’s performance and efficiency.
One, in case of highly paid employees merely increasing the salary will not be helpful but other requirements must be fulfilled. These include a sophisticated dinner, a club membership, a travel ticket, a car, a window office. This may overburden the organization as well as the sense of alienations among the lower workers.
Two, linking pay with performance may cause controversies amongst the employees. This way a negative tendency will breed contempt and bad politics in the workplace.
Three, competition kills the cooperation or team work. Unlike the past, self-sufficiency has long evaporated and replaced with interdependence and specialization. Win-win situation, as noted by the author of the book titled Seven Habits of Highly Effective People: success at any level of the life including the organizational growth can be attained in a team work as well as cooperation.
In summary, unlike machines, human beings have inherently built system of emotions and feelings that are being driven by social, economic and psychological needs. Therefore, it is essential to understand the status and psyche of the employees. A successful manager should be a people mover, motivating employees for improved productivity.
To What Extent Is Money A Motivator For Employees?
May 5, 2016