Issues That Affects Management Accounting Research in Regards to Motivation - Example

Student’s Name: Professor’s Name: Course: Date: MOTIVATION Nothing else is near the money, and that is a quotation that reflects the dominant view in the literature of management accounting that compensation for-performance frameworks have a motivational impact. It is worth stating that some researchers attest that the essential point of incentives is to improve extraneous motivation by indirectly fulfilling an individual worker's needs through method for pay and bonuses rewards. Similarly, Expectancy theory states clearly that for employees to improve their performance they have to be motivated. A large number of research that focus on economics incentives have been at the CEO level, and few studies have been aimed at examining the incentives for top-level employees in the firm. An opposition to the perspective that pays enhances an individual's motivation to work originates form cognitive evaluation theory. According to the theory, motivator pay negatively affects intrinsic motivation. This is to some extent resulting to a crowding-out effect. There are likewise suggestions for pay-for-performance systems where pay is seen as biased as people are constantly comparing themselves to other people. The paper is mainly aimed at addressing three issues that affects management accounting research in regards to motivation. (Stringer et al., 16). Which are, to understand the design implications that are associated with pay-for-performance arrangements at lower levels in a firm. Secondly, the study aims at examining the relationship amongst extraneous and intrinsic motivation and to undertake an organizational psychology and literature that focuses on human resource to build up further on the current management accounting literature People should, therefore, be paid based on how they perform as this is the only way to merit the sacrifice of hard workers. Agency theory concentrates on extrinsic rewards that are substantial and quantifiable. Actions are compensated and rebuffed, thus this decides workers' amount of effort, performance, and activities. A few researchers have inferred that work related motivation and proper job satisfaction ought to be dealt with independently so that factors of influence can be promptly recognized and hence a better understanding. Motivation-hygiene theory recognizes the significant intrinsic motivators, for example, accomplishment and cleanliness elements which have a tendency to be extrinsic factors like compensation. These factors have been argued to lead to job fulfillment since they fulfill an individual's need for self-realization. Employees frequently make value judgments taking into account comparisons with other people who might be colleagues, or in different perspectives, for example, organizational status. For instance, the recognition that one was overpaid or underpaid may result to lower intrinsic motivation. There should be goals which are well stated and defined, and employees should always be motivated to achieve the goals. Behaviors that are linked to particular organizational objectives can enhance the performance of the firm and can likewise give more significant intrinsic meaning to the work that is undertaken by the individual. This case study has been undertaken at a retailer context that is an unlimited and quickly developing non-food retailer in Australasia since it has a compensation-for-performance arrangement for highly-ranked employees. One of the strengths of the study is the researchers had the opportunity to access the organization. This retailer pays a performance motivation reward (bonus) to every single employee employed on a permanent basis, regards of whether the employee is full-time or part-time. The short form Minnesota Satisfaction Questionnaire was utilized to quantify work satisfaction model by Nadler and Lawler and the Pay Satisfaction Questionnaire (PSQ) created by Heineman and Schwab were utilized as a measure for satisfaction that originates as a result of payment. Examining the individual scores demonstrates that the larger part (87 percent) of employees neither "very satisfied" nor "very dissatisfied" with their remuneration packages (ratings between 2 and 4). Pay and bonuses are key things which contribute to the motivation of employees, and an employee will be motivated to work when the organization pays well. Their job should also be secured to drive them into working hard and achieve the goals. This insinuates that very few people will completely be comfortable with the salary they get at their working stations (Stringer et al., 165). Therefore, the employer should try to ensure that the working condition favors the workers so as to allay dissatisfaction. It is also important that an organization motivates employees with bonuses when it is very necessary like when they work over time or those who report to work earlier than others. Every employee should experience job satisfaction, and this is the only way an organization can keep its employees. The team should be mindful of those who are not satisfied and act accordingly towards ensuring they are comfortable at their respective workplaces. Results and discussion Those who are extrinsically motivated find it very comfortable in living on their minimum wages, and they can meet their domestic responsibilities with the wage they get. This is provided that they are determined to help the organization realize its goals. The motivation here will enable the employees to work hard and not mind about any reward at all. It is usually important that workers do not rely on gifts from their employers to work. The companies should also think about appreciating their employees by surprising them with gifts. According to the results, there is a positive correlation between job satisfaction and pay satisfaction, and intrinsic motivation. However, after controlling age, sex, store, length of service, and part/full time, the extrinsic motivation exhibited negative relationship with job satisfaction. The consequences of extrinsic motivation could be withdrawal from working, and the company should always ensure it is mindful of the welfare of the employees. In my view, this is a good basis upon which performance can be measured since these are the real challenges which are experienced by different firms in our contemporary societies(Stringer et al., 162).. A good firm should always put the interest of its employees ahead of its interest and always try to ensure it meets the expectations of its employees as much as it hopes to achieve its goals. The study examines this group of 42 employees who are high on both intrinsic and extrinsic work motivation to examine whether this might be better understood by idiosyncratic qualities, for example, sexual orientation, age, store, or whether they are full or part time. One merit of a single case is that fairness is guaranteed on the side of employees, and consideration is usually given to them based on their level of motivation (Stringer et al., 165). For an organization to perform well, the employees should be motivated both extrinsically and intrinsically. The organizations must always be mindful of what might block extrinsic motivation from its employees as this is a serious threat to achieving the organization’s goals The methodology used in this evaluation is highly recommendable because it is a transparent reflector of the challenges which are faced in most organizations. The management should always be mindful of the workers welfare and always be there to correct any situation which might hurt the employees’ motivation. An organization should consider the interest of its employees as much as it is concerned with its interest since it is only through a favorable working condition that the organization’s goals can be achieved. This is therefore a good job which companies and various firms can adapt to use in evaluating the performance of their organizations since it is through evaluating the situation of the employees that an organization can improve its performance (Stringer et al., 169). When the management is mindful of the employees regardless of their ranks then the employees also feel happy and comfortable at their work places. Companies which have time of evaluating the performance of their employees, motivating their employees by reorganizing their efforts and rewarding them usually make great strides as far as development is concerned. Conclusion The results of the study indicates “crowding in" occurs with an increase in intrinsic motivation but with a decreasing rate of extrinsic motivation. These findings contradicts the literature that focused on "crowding out" and to self-determination, the theory that ascertains that intrinsic and extrinsic based motivations are on a continuum from self-sufficient to controlled motivation. Therefore, the relationship between intrinsic and extrinsic motivation needs to be the focus of future studies. References Stringer, Carolyn, Jeni Didham, and Paul Theivananthampillai. "Motivation, pay satisfaction, and job satisfaction of front-line employees." Qualitative Research in Accounting & Management 8.2 (2011): 161-179. Read More