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Money As A Primary Motivator Business Essay

It is of extreme importance that employees should wish their several occupations. It can non be denied that most of the clip of human existences is spent at work. If employees like the work they do, they would be motivated to be regular at work and bask what they are making. This would turn out to be an advantage for the company every bit good since this would hike up productiveness degree and the committedness of employees. If employees do non wish their work, the absence rate may lift, persons would be dissatisfied and disappointed with about every minor issue that arises. Their motive degree will fall, therefore doing a ruin in productiveness degree for the administration since the overall public presentation of the employees will fall.

Numerous research workers have defined the term ‘motivation. ‘ Buchanan and Huczynski ( 2007 ) have described it as a determination devising procedure that enables the individual to take the coveted result and adopts the appropriate behavior and actions to make it. Daft and Marcic define the term as ‘ the force or forces that arouse enthusiasm and continuity to prosecute a certain class of action. ‘ Basically motive is a driving force that drives employees in a company to persist and work hard in whatever occupation they are making.

Motivation attributes to the elements that make the individual act, react or move. It is a term that is widely used in psychological science. Motivated people work with the purpose of making specific ends and marks. For case, there are jocks who work and train hard on their activities to make their ends and aspirations. It can be said that the persons have the aim and motivation to accomplish and get. They are motivated by their ain aspirations or ends and they can travel to any extent to accomplish their purposes. Some pupils besides work hard for the scrutinies since they are motivated to win in their academic consequences. McGregor ( 1960 ) found two theories to depict motive viz. theory X and Y. Theory X says that employees should be managed and controlled in the proper manner to be motivated to work, which can besides be called the external ( environmental ) simulation. However, Theory Y says that people will be more motivated if they are given freedom and liberty, this can be termed as the internal ( physiological ) simulation. Nevertheless, some motivations or ends have to be present for these to go on. The individual can non be motivated without any end or intent. The employees need to happen the motivations, and the directors have to elicit them in order to actuate the employees. Hence, motive can besides be defined as the the undertaking of eliciting, keeping and directing a individual ‘s behavior in a manner that will assist in achieving a specific end. One this has been achieved, the procedure is frequently stopped.

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As mentioned above, assorted and mitigated theories have been founded with regard to motive. Some different theories have been developed further in this survey so as to acquire a better apprehension of the subject and its deductions.


A research was carried out by Herzberg, Mausner and Synderman in 1959 with respect to the motive associating to work. They interviewed around 200 applied scientists and comptrollers working in the similar companies in the Pittsburgh Industry country. They discovered the hygiene factors and developed a theory on them, that could besides be called the two-factor or double factor theory. They believe that hygiene factors are factors that do non actuate the employees work harder but are however of import to enable the employees to work. These factors should be present else the employees would non be truly willing to work. Herzberg ( 1959 ) explained that hygiene factors could be an person ‘s relationship with the environment in which he/she operates. These indispensable factors nevertheless deal merely with the occupation context.

Hygiene factors do non hold a direct nexus with the work but can take to occupation dissatisfaction refering to the work state of affairs if the hygiene factors are non good. When the hygiene factors are present and acceptable, the employees would non be satisfied but would merely be ‘not disgruntled. ‘

Additionally, some common facets have been found by Herzberg and his co-workers that determine the hygiene factors:

Associating to the company ‘s policy and disposal ( which besides implies the companies ‘ norms and values ) , the organizational civilization and the shared beliefs inside the administration, the later should hold a sound communicating system inside the administration, a sensible degree of liberty should be given to the employees and besides all regulations should be explained every bit viewed as just by the employees.

The 2nd 1 is the supervision-technical facet which is the employees ‘ relationship with the directors and higher governments. The supervisors should be willing to learn and depute duties to subsidiaries. The supervisors should be just and should expose proficient ability.

The 3rd one being salary, including all signifiers as remuneration/compensation every bit good as wagess and fillip systems. It places high importance on pay and salary increases. Employees would non be satisfied if they are non allocated the just increases.

The 4th facet is the interpersonal relationships inside the administration. If the interpersonal relationships are sound, people would wish to work in the company. It may be linked to work or the societal interactions that happen within the company. It involves the relationships between employees, employees and higher-ups and the latter with their subsidiaries.

The last 1 is the on the job conditions. The physical conditions should be sound and the necessary equipments should be available so as to enable the workers to work decently. It includes proper lighting, the right tools, proper airing in the workplace and so on.

All of the above listed factors initiate short term alterations with respect to the occupation attitude of employees. The short term can here be defined as non more than two hebdomads. The double factor theory besides has another angle which is termed as the incentives which can in bend be straight linked to a individual ‘s public presentation. These factors give rise to the demand for personal growing and self-actualisation in work ( Pugh, 1990 ) . Self-actualisation is another actuating factor as per Maslow ‘s hierarchy of demands.


First created in 1943, a theory associating to single development and motive was developed by Maslow. Maslow ‘s Hierarchy of demands has five degrees. The first 1 is physiological demands. These are the basic demands of an single such as hungriness, thirst, the demand for O and the innate demands. The following 1 is the safety demands of a individual such as security and comfort, physical onslaught, freedom from hurting etc. The 3rd one is the love and societal demands. Peoples need to experience a sense of belonging ; they need to hold friends and form portion of societal activities in their surrounding. It needs to be a bipartisan traffic, that is give and receive. Fourth one is the esteem demands. Peoples have to experience respected, they need to hold assurance and experience strong. Employees want to obtain a prestigiousness position and want to get regard for the places they occupy. Last and concluding 1 is the self-actualisation demands. This happens when or if one has reached their full potency and gain it. The individual wants to be all that he/she can be. For case an single working as a manager wants to be the best 1 and will work towards accomplishing that end ( Maslow ( 1943 ) cited in Mullins, L. 1996:40 ) .

Equally shortly as the lower degrees of the hierarchy have been reached, they do non actuate persons any longer as these lower demands are largely seen as a individual ‘s demand to last. However, non everyone can make the top degrees. Thomas ( 2000 ) added that some of Maslow ‘s motivational factors arise from assisting others and fulfilling the societal demands of work forces.


As mentioned above McGregor ( 1960 ) made up two theories of human behavior at work viz. Theory X and Theory Y. These theories did non connote that everyone had to needfully belong to another of those two groups but those two groups were seen as two extremes and a set of possible behaviors could go on between them.

Theory X workers could possess the properties such as they would non wish their work and would seek to hedge it whenever possible. They would non be ambitious, would detest duty and would prefer to be led by others. They are non leaders. These persons like and want security. This peculiar group would necessitate administrations to enforce a direction system of coercion, control and penalty.

Theory Y workers can be characterised as difficult workers, people who like to work and if the work conditions are good, it would take to occupation satisfaction for them. Motivated people in this group like to take duty. They like to work in environments where they can be originative.

VROOM ‘S Position

A well-known professor, Victor H.Vroom ( 1995 ) has done much research in the field of administration and direction. He founded the anticipation theory which is based on motive to work, being a cognitive theoretical account. The equation that Vroom adopted for ciphering the degree of motive is: M = ( E ) ten ( I ) x ( V ) , where E stands for anticipation, I stands for instrumentality and V stands for valency ( Schermerhorn et al. , 2005 ) . This theory states that people are motivated to work when their work is acknowledged. Expectancy signifies that an person can anticipate an result when the latter has accomplished a undertaking. An action will take to an result. Instrumentality means if a individual performs better, it will take to a better result. Vroom inside informations it as an outcome-outcome association. Valence means different results have different values depending on the employee. One may prefer something than another individual would non want ( Vroom, 2005 ) .

Drafke and Stan ( 1998 ) believe that any incentive, be it money, accomplishment or position, must be can actuate people but they must desire it and experience that they can accomplish it. The anticipation theory implies that people can be motivated merely by things they want and desire.


Another research worker, David McClelland has carried out surveies refering to motive to work. It resulted in a theory based on three demands: accomplishment, power and association. These demands differ from individual to individual such as a director and a worker.

The demand for achievement refers to people who want to make occupations where they have personal duty and those occupations should neither be easy nor difficult. They should hold a 50-50 % chance of wining.

The demand for power relates to people who like to hold power over others and in determination devising. These people are more concerned about prestigiousness and non efficient public presentation.

The last one, demand for association is when the people need to experience liked by others. They expect friendly relationship and cooperation.

Harmonizing to McClelland, directors and enterprisers are goal-oriented and deliberate risk-takers. Hence they are more likely to be motivated by the demand for accomplishment. The demand for power is present in managerial and prima places. Stephen ( 2005 ) says that worker places prefer association as they desire friendly relationship and being in good footings with co-workers.


The traditional methods of organizational apprehension have been questioned in Jackson ‘s and Carter ‘s book viz. Rethinking Organisational Behaviour. These two said that people are motivated merely by money since it is a pay labour economic system ( Jackson and Carter, 2000 ) . They besides add that people will ne’er work without a salary but can work without occupation satisfaction.

To sum it up, people work because of the wagess and fillips. They believe that demand theories with respect to motive hold been misjudged. They besides add that it is non possible for a individual to actuate another one since it is a merchandise of the human head.

However, an employee can be demotivated by a director, if inducements are non plenty, or if the worker failed in a undertaking, or if the work environment is non sound. The book besides says that rich people have to be rewarded more to do them work harder and the hapless have to be rewarded lesser to do them work harder. The rich should be able to expose their assets and demo off their profusion.

Incentive Incentive

Incentives are of import to hike up motive. The most normally used are: money, public presentation feedback and acknowledgment. Alexander D. Stanjkovic and Fred Luthans have researched the differential effects of incentive incentives on work public presentation. They believe the most often used one is money, peculiarly hard currency payment although this entails large costs for the company. Money is a actuating factor since it satisfies physiological and psychological demands.

As for societal acknowledgment, the work of persons should be appreciated ( Stanjkovic and Luthans, 2001 ) . They should acquire personal attending with good communicating. Everyone in the administration must do an attempt. This will profit in the manner that people will make positive actions and avoid making things that will do others dislike them.

Finally, public presentation feedback is besides a incentive. It is critical to give feedback for undertakings accomplished. This would help them to better their errors and failings. The writers add that the three incentives vary harmonizing to the person.


Sing the factors that motivate a ‘boss ‘ , Jay T.Knippen and Thad B.Green wrote an article about it. They believe it is difficult to happen out the incentives for one ‘s foreman ( Knippen and Green 1996 ) . However, it can be found by following a procedure.

It starts with the guesswork game. It is a procedure where several factors can actuate the director. These factors can nevertheless alter over clip. There should be an analysis of how the director behaves along with his/her values in life.

Then one should seek to cognize how and why the incentives motivate. The research worker should seek to inquire the director or people who know him or even watch and listen to him/her. One has to see the behavior of the director in assorted state of affairss. This might state about the existent incentives of the director.

If a certain incentive happens frequently, it will suggest that it motivates the director. One should happen out the elements that have an consequence on the director. For case, if a director in motivated by power, he/she will non trouble oneself about association ( Knipper and Green ( 1996 ) .


It is hard to measure motive these yearss. Persons prefer to be self-managed instead than being closely supervised and staying by rigorous regulations. Hence they need to introduce and be committed. This has led to the debut of new motivational factors such as intrinsic wagess and wages from the work. Thomas ( 2000 ) says that if the occupation is completed decently, it will itself actuate the employee.

Guest ( 1999 ) says that HRM has introduced a new theoretical account of pull offing people at work, an attempt made to hike up their committedness degree. Storey ( 1987 ) highlighted the ‘hard ‘ and ‘soft ‘ versions of HRM ( Storey ( 1987 ) cited in Guest, D. 1999 ) . The difficult version Judgess the efficiency of the HRM on the company ‘s public presentation standards. The soft one besides does the same but besides shows concern for employees ‘ results.

Walton ( 1985 ) sees HR as sharing common ends, influence, regard, wagess and duty. He besides says that ‘psychological contract under this unitarist, high committedness theoretical account is one of mutualness, but it is a mutualness purely bounded by the demand to run within an basically unitary model ‘ ( Walton ( 1985 ) cited in Beardwell, l. et al 2004 ) .

The construct of occupation security is no more an issue. Employees now leave their occupations for better occupation offers that they get and best executing employees have more options to make up one’s mind where to work ( Thomas, 2000 ) . Marchington and Wilkinson ( 1997 ) believe that given that there is less occupation security ; companies can hike up motive of employees by supplying them with movable accomplishments.

The best pattern rules of direction theory claim that six basic factors exist to actuate employees ( Redshaw, 2001 ) . Training can be used. Peoples want to larn new accomplishments so as to vouch that they will ever suit in administrations with new occupations. Peoples should be recognised. Outstanding public presentation should be rewarded, financially. There should be sound communicating. Alliance of the individual ‘s occupation with the organizational ends is besides of import, people should be shown how they are lending to the administration. And eventually, the leading in topographic point should be enabling.

Employees should be treated as valuable workers in the company. This will assist to make a motivation environment at the worlplace ( Thompson, P. and McHugh, D. 2002 ) . However it is no easy undertaking to actuate employees since they are motivated by different factors each.

There are employees who are self-motivated, others by the fright that they might lose their occupations, others are motivated by pecuniary wagess, hence it would be good to honor those employees with salary increases if they perform better. Beardwell and Holden ( 1994 ) say that a motivation environment can be created by giving the equipments, resources, information and emotional support to employees.

Motivation theories have changed to occupation satisfaction. Earlier it was pecuniary additions. Directors should cognize and promote behavior that goes manus in manus with employees ‘ motive, hence increasing employee morale at work. Social facets introduced by the work environment can besides move as satisfiers.

It was thought that when HR empowers workers, it would actuate them. However, this field of direction is being questioned for the control it puts frontward at work.

However, motivational subjects remain complicated even today. All theories have their pros and their cons. A worker ‘s demand should be given attending and the employee should be respected. These contribute vastly in actuating employees.


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