Money motivates Essay
Recent events in the banking sector have brought the issue of bonus payments into the spotlight. With reference to appropriate motivation theories, critically evaluate the statement the “money motivates”. Writing One of the most crucial features of a successful manager is the capacity to fulfill the continuously changing needs of employees and organizations. The organization always anticipates its employees to follow the regulations and have the highest performance at work. Besides, the employees also expect a good working condition, highly promotional opportunities and career secure involved in its decisions.
Therefore, in order to reach the organizational approach, the manager need to perceive the key factors enhancing the workforce’s efficiency. In the other words, the understanding the employees’ work motivation is the basic requirement for the success of a company. However, it’s rather difficult for the manager in this competitive world to fairly motivate the employment for their best attempts.
The common method applied by most of companies today is to provide the suitable rewards to people who have the best achievement. These rewards can be the position promotion, the salary appraisal and the extra bonus on payment. Money, apparently, becomes the common measure to assess how effectively they work. It also comes out the
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According to Ray French et al, 2011, “ Motivation to work refers to the forces within an individual that account for the level, direction and persistence of effort expended at work”. Besides, The dictionary of Business and Management defines “Motivation may stem from processed taking place within an individual (intrinsic motivation) or from the impact of factors acting on the individual from outside (extrinsic motivation); in most cases these two influences are continually interacting”. Pinder (1998, p.11) describes ‘motivation’ as: “a set of energetic forces that originate both within as well as beyond an individual’s being, to initiate work-related behavior, and to determine its form, direction, intensity and duration”. This definition regards motivation at work as an “invisible, internal, hypothetical construct” (Ambrose & Kulik, 1999, p231).
The individuals motivate themselves to achieve their personal goals; therefore, they invest their time and their attempts to accomplish the work that also meets the organizational approach. Therefore, the motivation that the organization inspires its employees’ job satisfaction subsequently enhances the organizational satisfaction. In addition, we can deny the important role of money related to the working goal of individual employees. Many workers consider money as an assessment of their achievement at workplaces. High position at work means high salary, better achievement related to higher promotion opportunities or extra higher bonus payment.
Therefore, these typical questions such as:“ How much we can get from that work?” “Can you have stable promotion or salary appraisals” or “Whether my current salary is enough for us to meet our necessary needs and afford our entertainment-related services” are thoroughly considered whilst making decision to get a new job or transfer to other workplace. In spite of some popular opinions on the side of money as a motivator at work, some people insist that there is no need to emphasize the important role of money because there are still other valuable things beside it.
On the research of Ephraim R. Mclean, Stanley J. Smits and John R. Tanner (1996) on “The importance of salary on job and career attitudes of information systems professionals”, this group of authors also mentions the relationship between money and work motivation, representing the study of McNeil and Kimmel as an experimental example for the uselessness of money to enhance the efficiency of the employment at work. This study examines the reaction of individuals to the problem-solving task with an incentive bonus.
The results of this study surprisingly assumes that the offer of money have no positive effect on their work, on the contrary, reducing their motivation and their actual performance. “ Pay does not motivate people. People need enough money to live, but they need more than money to thrive. When polled on what matters most in a job, employees consistently cite half – a – dozen priorities, such as interesting work, before they mention pay. In contrast, when asked what employees care about, employers consistently rank money first” (Alfie Kohn, National Report on Human Resource, 1994, p.3).
Work motivation cannot properly be seen, having no direct measurement method. Therefore, we have to use established theories to perceive the understanding of this aspect as well as in order to figure out the relationship between money and work motivation. According to Maslow’s hierarchy of needs theory, he assumed that money is only necessary to support the lower – needs in his hierarchy of needs – physiological needs which is considered as the most basic needs of human beings: food, water, entertainment and all of biological needs.
If the employees’ salary does not support their basic satisfaction, their performance at work might be hindered, leading to diminish the organizational capacity as well as they will find more difficult to achieve the higher level of needs: safety need, social needs, esteem needs and self-actualization needs. Therefore, having an extra bonus payment for the employment not only encourages them to invest more attempts to concentrate on their tough task at workplace but also results in the upward in the company’s achievement.
In the two – factor theory called the ‘motivator – hygiene theory’, Herzberg also has disapproval of money as a motivator at work. His theory emphasized to distinguish the satisfaction (known as motivators) and dissatisfaction (hygiene factors). According to his study, ‘hygiene’ was defined as working environment, supporting to individuals’ personal performance. Hygiene factors, which consist of salary, job security, interpersonal relationships and working conditions can play crucial role to prevent the employment from being stress and dissatisfied at work for higher achievement, thus they might not completely give every individual satisfaction. In his term, salary or money is considered as a hygiene factor.
Herzberg assumes that a low salary makes the employment feel discouraged and have no inspiration to achieve more; however, even giving them the higher payment also cannot satisfy them and motivate them at workplace. The explanation given for this situation is these hygiene factors including money, organizational policies, working conditions or interpersonal relationships are not directly related to the job itself, but related to the working environment surrounding workplace.
According to Herzberg’s the study, these factors might results in job – related dissatisfaction when not satisfied or just prevent these dissatisfaction when satisfied (Herzberg, 1971; Herzberg, Mausner, & Bloch Snyderman, 2005). However, Herzberg’s two – factor theory also caused the controversy by most business and employees (Dawson P.P, 1985). Money as salary and pay is criticized as the most confusing factor in his theory, because it provides the means for meeting lower-order needs – ability to afford the daily needs’ human beings: food, clothing and shelter and also provides a quantitative index which can be applied to measure the job performance at work: achievement, recognition and advancement. (Ephraim et al, 1996).