The one best way to increase work motivation for an organisation is through financial rewards.
It is awell-known fact that organization which have a motivated workforce are performing at soaring levels. There are many ways to motivate employees such as: promotion prospects, job security, status symbol, fringe benefits and satisfaction. But nowadays the conceptual organisation framework has changed. Studies are showing that societies are changing in terms of goals, attitudes and behaviour. Materialism and consumerism, dominates the mind-set of the modern society and this affects the overall growthand approach to the working environment. One core question comes to mind; in today’s world, one of the best ways to increase work motivation for an organization is through financial rewards? In the first part of essay, I would like to build an understanding of the key aspects of the topic. What is motivation and financial rewards means? Most scientists and managers see employee motivation as one of the key aspects which make an organisation successful. Also motivation is defined as a set of forces that imitates directs and makes people persist in their efforts to accomplish a goal.Motivation is what causes us to act, whether it is getting us to write an essay or to reach goals at work. Of course to motivate a person you need to know her or him needs. For instance, in 2008 Heat company had been identified like the best place to work, because they are carrying how staff are feeling about stress, pressure ,how happy is workforce with their payments and benefits. Also there are two types of motivation – extrinsic which involves rewards such as trophies, money, social recognition or praise and intrinsic rewards which is related to feelings of satisfaction and achievement. I would like to expand more about extrinsic rewards. There are many ways of financial rewards such as: bonuses, piece- rate pay, time- rate pay, commissions, benefits in kind and pensions. Although it is very important to be paid. People could feel financial security also they could satisfy many needs. For business it’s important because of legalization (regulation of minimum wage, equal opportunities) also it helps to save their employees. There are few ways in which business regulate how much to pay and which methods to use: individual performance, negotiated pay rates, job evaluation, market rates and fairness. However, financial rewards are big motivator but not the only one. According to Dan Ariely a behaviour economist at Duke University Fuqua Florida school of business has studied the question of how effective bonuses are. Students of Massachusetts Institute were offered to earn higher and lower bonuses. One of the tasks was adding numbers (for higher pay) and another one just taping a key as fast as possible (for lower bonuses). They found that as long as the task involved only mechanical skill, bonuses worked as was expected: the higher the pay, the better the performance. But when they included a task which required even elementary skill everything chanced: the offer of a higher bonus led to poorer performance. This example has showed that financial rewards are important motivator but just for short term tasks. In the other part of essay I will discuss what kind of motivation employee need to reach job satisfaction. Now according to basics of motivation theory all people have different motivational factors. However there is a hierarchy of needs which states that there are 5 needs that motivating people: self-actualization, esteem, love/belonging, safety and physiological. Maslow‘s model of motivation has very clear message - if manager could see in which emotional position his worker is standing he could find suitable reward. But the problem is that same needs for different individuals could cause quite different behaviour also its shows just middle-class employees in USA and UK behaviour. However, there are many different views how to motivate...
Please join StudyMode to read the full document