Employee Reward

Assess the extent to which money is the primary motivator for all employees

Table of Contents

TOC \o "1-3 " \h \z \u HYPERLINK \l "_Toc1 " Introduction PAGEREF _Toc1 \h 3

HYPERLINK \l "_Toc2 " Theories of Motivation PAGEREF _Toc2 \h 3

HYPERLINK \l "_Toc3 " Discussion PAGEREF _Toc3 \h 5 HYPERLINK \l "_Toc4 " Bibliography PAGEREF _Toc4 \h 7

Motivation

Introduction

Motivation determines goal-directed behaviour of an individual . As defined by Mullins (1985 ,

. 480 , some driving force within individuals by which they attempt to achieve some goal in to

br fulfil some need or expectation ' Motivation can be classified as intrinsic or extrinsic . Intrinsic (psychological ) motivation results from job satisfaction through responsibilities , freedom to act , scope to develop skills and abilities in the workplace . Extrinsic (tangible motivation is influenced by external factors like pay raise , promotion praise , etc . While intrinsic motivation is long lasting , the effect of extrinsic motivation can be limited (Armstrong , 2004

Theories of Motivation

Many theories have been put forward to explain the approach towards motivation . The approaches to motivation can be economic , social , self actualizing and complex

The economic approach /motivation hinges on the idea that money is the more important to employees than the job they are performing . This forms the basis of scientific management ' theory put forward by Frederick Taylor (1911 . This approach is based on assumption that employee motivation is directly linked rewards and penalties to the results . This kind of motivation is widely practiced still but has severe limitation of being controlled by external factors and fails to recognize a number of human needs (Armstrong , 2004

The social approach /motivation emphasises the role of social processes in an organization and is of the view that sense of belonging and being a useful part of the organization is more important than money as the motivational factor . This theory is the result of the study carried out by Elton Mayo and the Hawthorne studies and the focus of motivation shifted from technological improvement to human improvement as a way to increase productivity

The self actualizing approach /motivation concept explicitly linked pay and behaviour . It is based on Maslow 's hierarchy of five needs arranged in a hierarchy (lower- needs should be first satisfied physiological , safety , social , esteem , and self-actualization . An effective manager should be able to recognize the motivational needs and create a work environment that helps them meet those needs (Maslow 1962 . Yet another need based approach can be explained through Herzberg 's two factor model . Herzberg et al (1957 ) identified satisfying and dissatisfying factors in a working environment . He comments that money acts a hygiene factor ' which could be a potential dissatisfier when present inadequately , but not necessarily acts as a potential satisfier or motivator . Herzberg regarded economic rewards as the factor that prevents disease rather than promoting health

The complex motivation /approach places much importance to external influences that motivate people to achieve their needs . One such example of this process based approach is Instrumental theory which states that money is means...