Money Motivation at Workplace - Coursework Example

MONEY AS A MOTIVATOR AT WORKPLACE Name: Course: College: Tutor: Date: DOES MONEY MOTIVATE? To motivate is to give a reason behind an action by a person in their struggles to satisfy their desires or needs. At a workplace, the definition provided is the process of maximising profits through improving and efficiency of the employees by motivating them to be at their best. Different individuals have different driving force when it comes to being efficient in their performance at work. Does money fall under the motivation factor when it comes to employees and the workplaces? The answer to the question varies depending on the approach of an employer, but in this case, the argument is based on the fact that money does provide a good motivation source when it comes to company’s point of view in the achievement of the set goals and the maintenance of the workplace. Nelson (2006) states that motivation after the industrial revolution took place was all about the interaction between those who surrender their will for money and those who impose their will on other by providing money. The best motivational factors as argued by different scholars vary depending on different factors to be considered in business. One of this scholars is Maslow who provides a discussion with an explanation that human needs and the drive for motivation under five hierarchical levels. The five levels of needs include; psychological, safety and security, social needs, esteem, and self-actualization. The satisfaction of some of the needs are tied to money, and thus evident that money can be a good motivator. Another scholar who argues on motivation factor is Herzberg (1959) who grouped motivation factors into two; extrinsic and intrinsic. The extrinsic factor is tied to job context and comprises of the salary, working condition, status, regulation, supervision and job security, whereas the intrinsic factors also known as motivational factor deals with job content comprising of achievement, growth, recognition, the work itself and responsibility. Money Motivates The most common methods of motivation using money are either in the form of a cash bonus, benefits, commissions or a raise in the pay. Some firms go to the extent of sharing profits with the employees after completion of a project on top of their basic salaries. Money under the scope of an economic perspective of motivators as argued by different scholars has its background on the statement, ‘everything has a price’, and from that declaration alone, money is seen as a good motivator since it is what rules the business world in this century. Herzberg (1959) states that the extrinsic motivation, as defined by the economic theory and economists, is a major factor in the determination of behaviour at work. A good example of the author’s idea is in the principal-agent theory by Jensen and Meckling which states that a firm is an agency of contracts and calls for the control and monitoring of the agent's behaviour using negative sanctions as well as financial incentives as a means of reward. The above scholars pave the way using intrinsic motivators on a general term and money as a particular name in the efforts of motivating workers. Money in its different form is the best means of exchange for the acquisition of goods and services in the effort of providing security for the future and comfort now. Herzberg (1959) in his theory of two factors states that the satisfaction of the extrinsic needs, even when acceptable, do not leave the employee satisfied but rather leaves them ‘not dissatisfied.' Adequate extrinsic needs do not motivate the employees to put an extra effort in their daily routine whereas the intrinsic do since they encourage the fulfilment of psychological needs on a personal level for the purpose of self-development. Self-development in many cases, such as achievement, recognition, responsibility and growth opportunity, require money to acquire. In this era, money is an important aspect in the factors that lead to appreciation in the society, that is, the acquisition of expensive goods and services which go hand in hand with the growth opportunity. Another economic reason for money being the best motivation factor for employees is that it provides security and comfort for an individual who in most cases needs it to cater for their families. A raise in the salary for such a person paves the way to the extra effort being employed to satisfy comfort and have extra for other personal growth reason. A group of analysts which include Jenkins and Gupta, in their analysis of about forty studies of the last forty years clearly reveal that workers motivation is dependent on money despite the level of excitement or boredom experienced in jobs, in both the real world and in a lab. Gupta and his group continue to argue that even though money is a good incentive, it should not be little because the reward should reflect the effort for motivation to take place. Ferraro, Pfeffer, and Sutton (2005) argue that the theories of economics have an influence on the human behaviour. It is affected by the theories which include, the agency theory, self-interested behaviour, and free market efficiencies which have a link directly to the institutional design, language, and social norms. They continue to argue that most of the firms have a model in place with the assumption that the extrinsic incentives are the only motivators and that persons will only be narrowly self-interested. These mechanisms and processes are assumed to produce the same behaviours and thus becoming institutionalised. This process is defined as the double hermeneutic mechanism which functions under social institutions and with professionals. They believe that the characteristics of all managers are of self-interest and who need to be continually be checked upon and whether their interests is similar to that of the goals of the shareholders through mechanisms such as profit sharing and even the option of owning stocks. Krishnan (2003) in a report of their two-year program proved that values which are self-oriented such as a comfort and pleasures of life were more important than other oriented interest such as being polite or helpful. The interests lost their importance over the period of study, thus proving that money is the most efficient method of motivation in the struggles of life. Williamson (1975) explains that transaction is the ultimate consideration in the analysis of an economy which includes the factor of self-interest as a major one and thus every firm should align its goals with that of the employees. The author continues to paint the picture of employees who are opportunistic and willing to work to achieve their set goals which when considered should align with that of the owner who wants to make money too. It is impossible to separate the needs of employers and that of the employees since they are both after the same thing, money. If prosperity, through efficiency, is to be achieved, then the owners need to view the employees as they would see themselves in the business of money making, that is, work hard for more money. The economic perspective of money being a motivator does not go unquestioned, but instead, different scholars have tried to show that it is not the best form of motivation. Many scholars who are against money as means of motivation are of the idea that pay is directly proportional to the performance of a task which co-relates to the decline in intrinsic interest in the job. When the salary becomes more important to the goals of an individual than the job, then there is room for inefficiency in their performance. Gold (2012) argues that using the money to motivate workers may lead to unethical demeanour and encourage dissatisfaction and resentment in the case of an ignited turnover. The author continues to insist in his arguments that the employers should focus more on the intrinsic motivation of employees, which can be achieved using making the job place friendlier offering equal chances for growth skill-wise and in performance while also building on the relational connections. Maslow hierarchy also provides a platform for the argument that money can be a motivational factor until it is satisfied and then it becomes obsolete since the next needs still have to be satisfied in the hierarchical pyramid of requirements. Another argument put forward of money as a motivator is the job enrichment programs, which according to Timple (1986) provides the employees with the necessary skills to fully be involved in their works and potentially becoming motivated adequately. The author continues to explain that the job enrichment through the different motivational technique, broken down into job design, job rotation, team effort and increased participation can easily replace money as a motivation factor. He continues to explain that when the employees get out of their work zone, they become more self-dependent and participate more in the workplace. Groups in workplaces created to tackle a problem do not only solve the problem but also makes the employees feel they are part of the company. To promote self-worth, according to Timple (1986), employer are required to allow their employees to be part of the decision-making to enable job satisfaction and in turn, also promote their motivation. The working condition, according to the author, plays a more important role than the incentives of money in motivating workers. A clean, well equipped and safe working conditions play an important part in the motivation of employees. It is because no one will work in adverse conditions just to get extra pay which will, in turn, be used in medical bills. Doyle (2004) argues that motivation should begin the process of hiring, that is, hire motivated people to create a motivated working environment. It is achievable by conducting interviews which try to tap into what motivates the employees, apart from money, and gives a clear picture of the kind of employee they are to hire. The process begins with the phone call made to the selected person to screen them to see how viable they are for the position. The second step is the one on one interview which provides the necessary information of the interviewee from the aspect of gestures and response as well as their level of knowledge of the work to be done. The environment of the workplace is also a critical dimension as dictated by Doyle (2004) which he claims should be welcome from the first day of employment. Doyle (2004) also believes that the job specification for any new employees should be accurate and precise in its description. It allows the employee to be comfortable in the environment in which they work regarding the job specification and thus motivated at the end of the day to become better. It also creates room for accountability for work done; this does not only motivate the employee but also ensures that the quality of work produced is high, which translates to efficiency. Conclusion The human nature with its complexity does not allow a single theory, approach or principle to accurately determine money as the main motivator in the business industry. The concept of motivation in itself is also complex and can be an advantage or a disadvantage depending on the method employed by a firm. To effectively motivate employees, employers are advised to take a keen interest in them and try to understand their motivation since people are very different. Motivation, though dependent on the structure and design of business, should always be aimed at improving the skill, knowledge and the performance of its employee before incentives or rewards. It is aimed at ensuring that the people grow side by side with the company. Growth personally and business wise should go hand in hand to prevent employees from slacking but instead always put them on their toes. Money does indeed provide one of the means of motivation in the twenty-first century. It is because money rules everything and goods and services, in the form of comfort and security, can only be acquired when money is available. It can also be argued that extra money in the pocket of employees create a space for personal growth regarding personal development through investments and or personal businesses. To fully understand the employees as an employer time set aside for social events or occasion is necessary. The money will motivate not everyone, but those who are proving that it is indeed one of the ways to well motivate people in a workplace where their extrinsic needs have not yet been fully satisfied. References Doyle, S. (2004). The Manager's Guide to Motivating Employees. Amherst: HRD Print. Ferraro, F., Pfeffer, J., & Sutton, R. L. (2005). Economics language and assumptions: Howtheories can become self-fulfilling. Academy of Management Review, 30. 8-24. Gold, T. (2012). Ethics in IT Outsourcing. Boca Raton: CRC Herzberg, Frederick. 1959. The motivation to work. New York: Wiley. Krishnan, V.R. (2003). Do business schools change students’ values along desirable lines? Aongitudinal study, In S.M. Natale and A.F. Libertella (eds) Business education andtraining: A value-laden process, Volume 8 (Immortal Longings), pp. 26-39. University Press of America, Lanham. Nelson, Joseph S. 2006. Fishes of the world. Hoboken, N.J.: John Wiley & Sons. Timpe, D.A. (1986). Motivation of Personnel (Art and Science of Business Management). Facts on file Publications. Williamson, O. E. (1975). Markets and hierarchies: Analysis and antitrust implications: A study in the economics of internal organization. New York: Free Press. Read More