Firms may have the objective of profit maximization; it would be hard to find an employee who shared the same objective as the firm all the time. There is clear conflict between the goals. This inefficiency means motivation has a big part to play and solve the problem. However, the extent to which managers can change employee’s motivation is debatable since it can be said that it is human nature to be selfish and ‘impossible’ to be altruistic especially to an organization. Thus, it is crucial to assess different mechanisms (incentives and corporate in particular) which may help improve motivation with perspectives from economists, sociologists and psychologists.
Intrinsic motivation indicates that under certain conditions, employees are prepared to undertake a task for immediate need satisfaction or for its own sake (Calder and Staw 1975). For the purpose of this report, the writer shall focus on extrinsic motivation as it links to compensation packages. Employees... ... middle of paper ... ...e more motivated and loyal they are likely to be.” The main drawback for flexible benefits is that they are usually expensive to upkeep and tedious for the management to oversee. In conclusion, money is not the only motivator and it is not the primary motivator for everyone. However there is overwhelming evidence that money is an important motivator for most people.
The better question, then, is how does one motivate, and achieve the desired results with this motivation? While motivation has often been the point of interest in experiments and studies, it is a large topic to cover and fully comprehend. For this reason, the breakdown of intrinsic vs. extrinsic motivation is helpful when determining the most efficient ways to motivate employees. Intrinsic and extrinsic motivators although both part of motivation, are ultimately opposites. Intrinsic motivation is internal and therefore often related to feelings of achievement, growth and accepting new challenges at work.
It’s the force that makes us do things: this is a result of our individual needs being met so we have inspiration to achieve a task. These needs change from each individual as everybody has their separate requirements’ to motivate themselves. “Every individual is unique and will respond differently to attempts to motivate him or her” (Bratton 2010 pg 210). When we suggest factors that determine the motivation of employees, the majority would instantly think of extrinsic motivation (higher salary). This is correct for the reason that some workers will be driven by money, but mostly wrong for the reason that it does not satisfy others as some people favour the intrinsic route were personal achievement or praise might be enough.
Although money may not be the only motivator in the workplace, it is the basis for the attitudes and behaviours of employees. If an employee feels they are being well paid and rewarded financially for their hard work and any extra effort, then they will be more likely to work hard and strive to gain these financial rewards. However if an employee is unhappy with the money that they are receiving for their work then it will be very difficult for them to be motivated in their work. One other view that supports money being a key motivator is that people feel that they are highly valued if they are receiving a decent salary. The higher their salary the more valued they feel within the organisation and so the more likely they are to work hard in their job and be motivated in their work.
The overwhelming feeling is that pay is fine as a short term motivator but when it is used continually workers can become reliant and it can put pressure on employee relations as well as encouraging them to work purely for economic reward. Managers will not always be disappointed with results as explained but there are other ways to motivate which have shown to produce continually good results such as job enrichment and making employees feel as though they genuinely matter. In my opinion, managers who use pay incentives can achieve good results but from reading the articles as evidence my advice would be to use them sparingly.  Organisational Behaviour – compiled by A. Beauregard page 201  Organisational Behaviour – compiled by A. Beauregard page 204  This study “examined the changes in needs of a group of people.” OB – A. Beauregard page 205  Organisational Behaviour – compiled by A. Beauregard page 205  Organisational Behaviour – compiled by A. Beauregard page 206  Harvard Business Review
Thus, other motivational influences can be a more advanced way to engaging employees to complete tasks relative to simply providing extrinsic rewards. Paying higher salaries for performance can make employees respond in different ways, it may make the workforce turn against one another which could destroy the team culture at the company (Frey 2002). Furthermore depending on where the worker lies on Maslow’s hierarchy of needs, they need different motivators (Maslow 1954). Increasing pay can often make the employee chase after the sum of money, rather than making them want to do
Introduction: Evidence suggests that peoples’ actions are often governed by self-interest. “The self-interest motive is singularly powerful, according to many of the most influential theories of human behavior and laypersons alike (Miller, 1999, p. 1)”. Consequently an effective and responsible manager uses rewards and punishment as a means to improve efficiency of employees and productivity of the company. Whether self-interest alone is responsible for human motivation is a debatable issue and a manager must take this factor into account. Factors other than rewards and punishment also affect motivation.
The growing trend that employees reward by cash compensation when they meet or exceed performance goals set and in fact that subordinates tend to be more satisfied and motivated when rewarded by their supervisor (Yammatino et al., 1990). It is also evident that salary and remuneration system which accentuates variable pay, flexibility and achievements based on performance are now more applied by organization than emphasize on increase to base pay (Hewitt Associates 2006). Bonuses and allowances based on profit and accomplishments are widely used by the organization, especially compensation plan based on performance, called as merit pay plan. Likewise, individuals with more achievement oriented and entrepreneurial are found to be more concerned with competency
Another reason salary surveys are used is to help determine if employers are paying equally for jobs of equal worth, as well as paying a sufficient amount for different types of jobs (BNA HR & Payroll Resource Center, N/A). Another great reason for employers to conduct salary surveys is to justify their decisions about pay rates when faced with lawsuits (BNA HR & Payroll Resource Center, N/A). Employees are able to challenge a company if it does not have a justified reason as to why they pay certain employees certain amounts. All of these reasons for conducting a salary survey provide great benefits for the company; they are able to maintain salary rates based on market data, while also obtaining justification if future problems with employees ever arise. Another benefit that comes from salary surveys is the fact that most are moderately ine... ... middle of paper ... ...yer should be very careful when researching, and he or she should also understand the rules and guidelines that apply if one is conducted by the company.