Managing People and Organisations - Essay Example

Topic Motivation is best achieved through offering employees a monetary reward for working harder. Discuss to what extent do you agree with this ment. No of Words - 2,373 Thesis Statement Employees do not work harder because of monetary rewards. If this was the case, then there would have be a direct correlation between salary increases and productivity, which experiments in the past have failed to prove. Although employees need money to live, they are not always persuaded to first satisfy their physiological needs. Further, money hardly sometimes influences their decisions to move from one job to the next. On most occasions, employees are often persuaded to move because of other reasons. Therefore, any argument to suggest that motivation is best achieved through offering employees a monetary reward for working harder should be dispelled. Employees may be motivated by some other factor, perhaps passion for the job, or good relations with fellow employees, but its clearly not money. Workers Searching for Opportunity Money isn't everything--but it's a long way ahead of what comes next. - Edmund Stockdale Frederick Taylor, father of Scientific Management believes that workers were only motivated by money. His claim came about after conducting an "experiment on immigrant labourers, both from Hungary and Germany" (Gabor 2000). Scores of Europeans flood the western shores "bringing with them a hunger for opportunity and the energy to fuel a young nation's growth" (Gabor 2000). For the immigrants, there was a need to seek a better standard of living in a more peaceable environment. This was absent in Europe at the time. Europe was experiencing changes in its systems of governance, and during the period, the new "German Emperor, William II, favoured out right hostility towards Russia" (Thompson 1982). Therefore, to avoid antagonism, many workers migrated from Europe with the desire to work in the western world. The railroad was a common form of employment for both skilled and unskilled workers. At the same time Frederick Taylor was about to test Adam Smith's belief that men wanted financial gain. His findings would come to be known as the scientific approach to management studies. However, further evidence and careful examination would reveal shocking results. The Experiment Taylor observed the men for a period of time and after much days came up with a concept to increase productivity. He believed if the workers are paid more they may be willing to work harder. Very aware of these workers financial circumstance and their desire to seek betterment, Taylor took advantage by setting an unreasonable quota and offering "them higher wages if they were able to meet it" (Gabor 2000). The response was not what he may have expected since many workers resisted and call the quota "unreasonable." He managed to get one German immigrant "Schmidt" to meet the quota and who in return "was very happy to collect a few extra cents of extra pay at the end of each day" (Nelson pg 92). Taylor later admitted that this was the kind of "ox like" mentality he sought. The truth, however, is that the majority of workers were either physically incapable of doing the job or simply made no attempt to meet Taylor's demands. The increase bonus did nothing to alter worker's performance. Even their financial circumstance did not provided a strong enough desire for them to work. Taylor did not realized that his method of motivation to increase output was ineffective. Therefore, according to the book The Capitalist Philosophers many of the workers "were fired either way. (2000)" Jobs were loss by the dozens. Even Edward E. Lawer in his book Treat People Right argued that "expectancy theory places great emphasis on the importance of goals in motivation. When employees commit to a goal they are highly motivated to achieve it. However if goals are too difficult workers' motivation is weaken." This was clearly because of the unreasonable quota. To many workers the chance of achieving the quota was "very unlikely" (2003). In later years Taylor himself admitted that it was a "horrid experience not to look in a workers face without seeing hostility" (Gabor 2000). Taylor and the Union Organizer Mr. Portenar have been communicating for weeks since the introduction of Taylor's scientific management approach. After much deliberation Portenar wrote: I have read another third of one of your books. It depresses me horribly. The whole thing looms up vaguely before me as an unhuman, inexorable machine, gliding smoothing on its way, but crushing not only all in its way, but sapping the vitality of all connected with it. A machine geared to its highest specs, and calculating flesh and blood, as it calculates the tools and materials it works with I have tried to read and think about it without prejudice. I have tried to be impersonalBut sitting at my machine, and noting the variations in my hourly output, I felt that it would be terrible to know that I am in the grip of a remorseless, unfeeling, unknowing system, that has set me a task that taxes my powers at their best, while realizing that I am not always able to do my best. There are days when I can with ease do much more than on other days I can do with effort. But nervous energy is sure to be burned more rapidly than it can be replaced under artificial stimulus of your task and bonus." Portenar's description of Taylor's strategy to increase productivity is exactly why the workers retaliated. Maybe if the quota was more reasonable workers may have worked harder. If this was the case, surely it was not because of the money but the satisfaction of achieving the target. Peoples desire to work harder stems from their passion towards the job and their confidence to perform it, not by mere intrinsic reward. There must be some level of satisfaction when a man completes his job with skill, care and a high degree of "artistry". Somehow Portenar in his letter to Taylor echoed these sentiments. Taylor's method did not consider the behavioral aspects of his workers. According to Andrea Gabor in the book The Capitalist Philosophers, despite the fact that Taylor believed in Adams Smith proposition, that "men were motivated largely by financial gainhe was wrong in assuming that a man will willingly sacrifice his soul for a bigger paycheck"(2000). For some money may have been the by-product of the job. Even with increase wages people were not prepared to work. The unreasonableness of the task caused most workers to seek alternative employment. Consequently the experiment that workers were motivated by money was an outright failure. It was clear from the findings and from Portenar's observations that increase monetary reward offered to employees does not necessarily lead to increase productivity. As a result, it cannot be concluded without reservations that there is a correlation between money motivation and productivity Why Money Not best Motivator Many theorists recognized the error of Taylor's work. Psychologist Abraham Maslow purported an alternative view. He believes employees are motivated by their needs and once satisfied it no longer acts as a motivator. This theory is quite similar to the economic law of diminishing marginal utility. According to this law as more and more of a commodity is consumed, the additional satisfaction derived from the consumption of each successive unit will decreased. What this means is that employees, as their financial status improves, money will less likely be a motivator. It was not clear whether Taylor's men were economically deprived. Their desire "to earn enough money to return to Hungary and buy land" is an indicator that they sought to satisfy the basic physiological needs (Clarkson 1996). However, most of Taylor's workers left either because they were not desperate to satisfy this need or they had other alternative employment opportunities. Either way it was clear that money was not a strong enough motivator to keep them employed. Abraham Maslow is of the opinion that the lower level needs such as the need for food clothing and shelter, must be first satisfied. These needs are supported by the use of money. However, despite the fact that Taylor's men desired to satisfy their lower level needs, most were unwilling to capitalize on an opportunity to earn more by increasing productivity. The correlation between money and productivity may appear to be quite obvious to Taylor, and probably Maslow but certainly not the immigrants. However, the reason why the immigrants were not motivated by money should be further explored. Psychologist Frederick Herzberg best explains the truth to the reason why money is not the best motivator. In his book, The Motivation of Work, he explains that money in its very nature is not a motivator but rather a maintenance factor! Herzberg went on to show that true motivators are those which lead to recognition and purpose. By making employees feel responsible for their job and giving them the opportunity to grow and achieved, productivity levels would increase (Herzberg 1959). This is where Taylor's theory failed. More money given to employees would not lead to increase productivity. In fact, according to Herzberg, one of the factors which can lead to dissatisfaction is the absent of a fair wage or salary. Taylor's workers were dissatisfied not because of the money but because of the reasonableness of the job. Maslow suggestion that employees are first motivated by physiological needs which includes money and then subsequently by other needs such as security and social, esteem and self actualization, can further be refuted by reference of the "starving artist" analogy. This is so because what drives the artist is not the money, but rather the passion for his art work. This is similar to what the Germans and Hungarians may have experience when they first came to the west. However, the subsequent lost of the pleasure of work had created "a venomous atmosphere in Taylor's Midvale's shop floor" (Kanigel pg 201-202). No one can deny the fact that employees can experience some level of satisfaction from, intrinsic rewards. However, the arguments which purport motivation by money seem to be less convincing. According to an article entitled, Money not the motivator, written by Claire Heaney "more than half the people who went into business for themselves said they wanted to enhance their lifestyle or achieved personal goalsPeople want the freedom to have control and have a work/life balance" (2005) This is a clear indication that other stimuli, such as work life balance are needed for employees to be motivated enough to increase profitability. Further evidence implies that even employees who have options are less likely to be persuaded to join another company because of the money. The Business First editorial, Money not key motivator for most employees, column wrote: Hanging on to valued employees must be a top priority for any business hoping to succeed over the long term. Although money often plays an important role in someone's decision to join or leave a company, it ranks no higher than fifth among the most important factors why employees stay with an organizationAll humans have egos. We will like to think what we do at work is important and that someone appreciates it. Companies that creatively celebrate their employees' success will be best able to attract and retain the kind of talent to flourish in today's market place (2001). Herzberg theory of motivation and money is closely related to the above article extracts. In his studies he recognized that employees want to feel a sense of achievement, recognition and advancement. The treatment of humans like a machine and the mindlessness of "human nature" made Taylor's method of money motivation cannot truly motivate and can sometimes lead to demotivation. Other Tools for Motivation to Increase Productivity Herzberg indicated that employees need to feel a sense of satisfaction in their jobs. Variety of the job may assist managers to grant workers what they desire. Routine jobs are quite boring and monotonous. Because of the rigidity of the function, employees may be less likely to be motivated. According to Jerry Kennard, in a Men's Health editorial, boring jobs can affect workers' health to the extent where it shortens their life expectancy (2006). To avoid this dilemma, jobs should be enriched and enhanced. Workers need to be able to put some input or have a choice in their jobs functions. This makes workers feel that they are a part of the decision making process. Having this kind of commitment productivity will increase. Other factors which can assist management in motivating employees to work harder includes, granting workers leadership opportunities, create an environment to develop healthy working relationships, create goals for employees that challenges their expertise and finally provides lots of encouragement. These factor according to Herzberg are motivators can lead to the increase productivity management desires. Conclusion It was clear from the essay that monetary rewards do not motivate employees to increase productivity. Taylor's experiment shows that workers are not motivated by money even in financial difficulties. As a result there is no correlation existing between job productivity and motivation trough intrinsic rewards. Employees need to enjoy their job if they are to ever effectively increase productivity. Factors such as job satisfaction and encouragement can be a more effective motivator. To therefore think that offering employees more money for working harder will increase productivity is being ignorant. To simple put it human beings are not robots and money the remote control. Bibliography 1 Andrea Gabor, (2000) The Capitalist Philosophers: Frederick Wiinslow Taylor, The Father of Scientific Management, 1st Paperback Edition. Three River Press. 2 Business First of Louisville, Money not key motivator for most employees, http:www.bizjournals.com, Business First. 3 Claire Heaney (2005) Money not the motivator: Business supplement, 1st Edition. Business Owner 4 David Thomson (1982) Europe Since Napoleon: Democracy and Socialism. A Pelican Book. 5 Edmund Stockdale (need to research) 6 Edward E. Lawler III (2003) Treat People Right: What makes people effective, 1st Edition, Publishe by Jossey-Bass 7 Frederick Herzberg (1959) The Motivation of Work, http://www.netmba.com/mgmt/ob/motivation/herzberg 8 Jerry Kennard (2006), About Men's Health: Editorial, http://menshealth.about.com/b/a/182191.htm 9 Kanigel, The One Best Way, pp. 201-202. 10 Letter from A. J. Portenar to Frederick Winslow Taylor, April 28th 1914 11 Sue Clarkson (1996) History of German Settlements in Southern Hungary, http://www.feefhs.org/banat/bhistory.html Read More