Nowadays increasing employee motivation, commitment and engagement levels are key organizational aspects. The development of compensation policies has an important role in motivating employee to deliver good levels of performance, contribution and effort. Usually the process of motivation starts with someone recognizing an unsatisfied need. Then a goal is established to be reached to satisfy the need. Rewards and incentives can be established for employee to better accomplish the company goal.
Motivation can be intrinsic or extrinsic. Intrinsic motivation can be described as the process of motivation by work to satisfy the personal needs of the employee. The factors affecting intrinsic motivation include for example responsibility, freedom to act, courage to develop employee own skills and opportunities for advancement. Extrinsic motivation is the amount of effort other people give to the person to motivate them. Extrinsic motivation is for example the bonus / benefit that company provides such as praise or promotion. Extrinsic motivators are efficient but the influence does not last long. Intrinsic motivators tend to have a longer effect as intrinsic motivators are not imposed from outside. The effect of money as a motivator is discussed later in this study.
According to Maslow, employees have five levels of needs (Maslow, 1943): physiological, safety, social, ego, and self- actualizing. Maslow argued that lower level needs had to be satisfied before the next higher level need would motivate employees. Herzberg's work categorized motivation into two factors: motivators and hygiene (Herzberg et al, 1959). Motivator or intrinsic factors, such as achievement and recognition, produce job satisfaction. Hygiene or extrinsic factors, ...
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...activities or the on-going/lifelong process of developing one’s career. It usually refers to managing one’s career in an intra-organizational or inter-organizational scenario. It involves training on new skills, moving to higher job responsibilities, making a career change within the same organization or moving to a different organization. Many employees join their organizations not just to have a job but to develop a career. Opportunities for advancement are essential to employee retention and performance. However, if these prospects exist only in theory, employee can become disenfranchised. Training helps employees realize their goals by giving them the education they need not only to do their jobs better but to learn about new aspects of business and even higher-level managerial skills they can use down the line. By set up a training, employee can learn new skill
Intrinsic and extrinsic types of motivation have been widely studied and the understanding of each has led to great changes in how organizations run their businesses. It is clear that hourly employees have many great extrinsic motivators but lack intrinsic motivation in their job assignments which is a characteristic of our work culture. Changing the culture is one of the keys to improving motivation at that level of the organization because the best motivation occurs when employees perform because they want to and not because they are being made to do so.
Maslow’s theory cultivated as a “general theory of human motivation,” but this theory is “extensively” applied to organizational behavior (Miller, 2012: 40). In this theory, Maslow proposes that five types of basic needs motivate people: physiological, safety, affiliation, esteem, and self-actualization. These needs are arranged in a “hierarchy of prepotency,” where lower-level needs must be satisfied before achieving higher-level needs (Miller, 2012; 42). The lower-level needs are the first three basic needs in the hierarchy: physiological, safety, and affiliation. The first need is physiological. It refers to the needs of the human body, such as food, water, sleep and sensory pleasure. An organization fulfills these needs by providing a “living wage” that allows individuals to acquire these necessities and creating “physical work conditions that do not violate the physical requirements of the human body” (Miller, 2012: 41). From the physiological needs, humans move to the second basic need—safety. These needs include “the desire to be free from danger and environmental threats” (Miller, 2012: 41). Once again, an organization fulfills these needs by providing wages which allow employees the ability to acquire the necessary tools to ensure safety. In addition, the provision of physically adequate work conditions within an organization fulfills these safety needs. After physiological and safety needs are attained, humans aspire for belonging and love. This third basic need is affiliation. Affiliation needs refer to “the necessity of giving and receiving human affection and regard” (Miller, 2012: 41). This need highlights one of the key findings of the Hawthorne studies-the importance of social factors within an organization. The social relationships between coworkers and managers within an organization satisfies this need for
The two main forms of motivation in the work place are exentric and incentric theory’s based on many theorists in the field. Firstly incentric motivation, this focuses’ on what motivates the individual in the working environment, it specialises in employees unique needs and focuses on their strengths and goals they pursue to satisfy their needs. One of the first to construct this theory was Abraham H. Maslow, (A Theory of Human Motivation, 1943) telling us that this idea is not a contemporary one. He created the “pyramid of requirements” or “Hierarchy of needs”, theory’s which has since been used as bases for many companies. The pyramid has five main levels :( from lowest importance to highest level), at the bottom is Physiological needs- this includes the body’s automatic attempt to maintain normal functioning, for example thirst, nourishment, clothing, oxygen, sleep an...
Monetary incentives is a great way to motivate employees to produce outstanding work performance. What better way to influence employees to do their best than by offering them extra cash. Not only does the employee get rewarded but the company is able to increase productivity. Monetary incentives not only increase employees productivity, it can also improve attitudes therefore
The first basic need is physiological need, which is essential for survival. Once the first need is met the next need is worked on Safety /security, Followed by social needs. Once these lower needs were achieved one worked for higher order of needs like self-esteem and self-actualization (Maslow, 1943.)Using the Maslow’s hierarchy of needs to motivate staff in the workplace will increase job
Research has shown that motivation in an employee is an important factor which determines his performance. Motivation is the “driving force within individuals” (Mullins, 2007, p. 285). It is the concerned with finding out the reasons which shape and direct the behaviour of the individuals. The people act to achieve something so that they can satisfy some needs (Gitman and Daniel, 2008). It is important for the manager to understand this motivation of individual employees in order to inspire them and devise an appropriate set of incentives and rewards which would satisfy the needs that they have individually (Kerr, 2003). Once these needs are expected to be met in return for some specific behaviour or action, they would work more diligently to have that behaviour in them and to achieve that objective (Meyer and Hersovitch, 2001). Since it would lead to early and fuller achievement of the company objectives as the individual would work more diligently, it would lead to better organizational performance (Wiley, 1997).
Maslow needs theory has received wide recognition particularly among practicing managers. Perhaps it could provide some valuable insight in motivation. Maslow’s hierarchy of needs “hypothesized that within every human being there exists a hierarchy of five needs. Maslow separated the five needs into higher and lower orders. Physiological and safety needs were described as lower-order needs and social, esteem, and self-actualization as higher-order needs. As each of these needs becomes substantially satisfied, the next need becomes dominant. So if you want to motivate someone, you need to understand what level of the hierarchy that person is currently on and focus on satisfying the needs at or above that level.” (Robbins & Judge, 2007, p.187)
In today’s world, there are many reasons which have led to people getting a paid job. Amongst the various articles, many authors argued that money remains the main motivator underlying the reason why people work, since people need money to meet their basic needs and to ensure survival. According to Ramlall (2004) motivation can be defined as “the willingness to exert high levels of effort towards organizational goals, conditioned by the effort’s ability to satisfy some individual need.”
Furthermore, there are three theories which explain the different factors in how employees are motivated based on their needs. The first theory, Maslow’s Hierarchy of Needs, was proved by Abraham Maslow in the years of 1943 and 1954 (McLeod, 2013). Maslow believed that society developed their motivations depending on their needs. Maslow’s Hierarchy of Needs is a theory in which five motivational needs( self-actualization,esteem, belongingness and love, safety, and psychological) are demonstrated in a hierarchy pyramid. The five motivational needs are divided into three categories(basic, psychological, and
In daily life, we need motivation to improve our performance in our job or in studies. Motivation is an internal force, dependent on the needs that drive a person to achieve. In the other words, motivation is a consequence of expectations of the future while satisfaction is a consequence of past events (Carr, 2005). We need to give reward to our self when we did correctly or we has achieve our target. Reward is something that we are given because we have behaved well, worked hard, or provided a service to the community. Theories of motivation can be used to explain the behavior and attitude of employees (Rowley, 1996; Weaver, 1998). The theories include content theories, based on assumptions that people have individual needs, which motivate their action. Meanwhile according to Robbins (2001), motivation is a needs-satisfying process, which means that when a person's needs are satisfied by certain factors, the person will exert superior effort toward attaining organizational goals. Schulze and Steyn (2003) affirmed that in order to understand people’s behavior at work, managers or supervisors must be aware of the concept of needs or motives which will help “move” their employees to act.Theories such as Maslow (1954), McClelland (1961), Herzberg (1966) and Alderfer (1969) are renowned for their works in this field. The intrinsic reward or also be known as motivators factors is the part of Herzberg motivation theory. Motivators are involve factors built into the job or the studies itself such as achievement, recognition, responsibility and advancement. Hygiene factors are extrinsic to the job such as interpersonal relationship, salary, supervision and company policy (Herzberg, 1966. There have two factors that are called hygiene fac...
Money is an important factor in the motivation of employees, as profit acts as a
Management spends a huge amount of time to design incentive systems and schemes to motivate their workers and to ensure they work in their best possible manner. Motivating workers by giving them decent pay helps in winning employees heart to make the work done efficiently, significantly and effectively. The most effective way to motivate people to work productively is through individual incentive compensation (Pfeffer, 1998). An attraction of getting more is a powerful incentive to people for high performance. While most people agree that money plays a major role in motivating people, in organizations there is a widespread belief that money may also have some undesirable effects on morale.
Motivation is an important function in organizations to motivate their employees for their ability to perform well, improving their skills, increasing productivity, job satisfaction and employee extension. Employees also are not a machines that we could just program their task in their brain and they will do it automatically, they require motivation to actually do their job properly. And so, after discussing the process models of the Maslow’s “Hierarchy of needs”, Douglas McGregor theory X and Y, and also the Herzberg’s “two factor motivation hygiene theory.” understanding the ways of motivating people, the human nature, and the substance of nature. I believe that the true motivation can only come from within and also managers can actually motivate all of their employees.
Although few individuals are motivated intrinsically from the pleasure or enjoyment an individual gets while performing the activity or by completing it, the majority of people are motivated extrinsically when they are rewarded by money, promotion, or bonus. For example, by linking motivation to one of the most famous motivation theories which is "Maslow hierarchy of needs theory", it's important that leadership understands the needs for employees' motivation for adequate workplace motivation. Maslow's theory states that people have a pyramid hierarchy of needs that they will satisfy from bottom to top. Starting from mere physiological subsistence the Maslow hierarchy of needs covers belonging to a social circle to pursuing your talent through self-actualization. Unfulfilled needs lower on the ladder would inhibit the person from climbing to the next step. The pyramid of needs is divided into two categories: deficiency needs (physiological and safety) and growth needs (belonging, self-esteem and self-actualisation). If the deficiency needs aren't satisfied, the person will feel the deficit and this will stifle his/her development. When Maslow's theory is applied to work situations, it implies that line managers have the responsibility, firstly, to make sure the deficiency needs are met. This means, in broad terms, a safe environment and proper wages. Secondly, it implies creating a proper climate in which employees can develop their fullest potential. Failure to do so would theoretically increase employees' frustration and could result in poorer performance, lowers job satisfaction, and increased withdrawal from the
Motivation, as defined in class, is the energy and commitment a person is prepared to dedicate to a task. In most of organisations, motivation is one of the most troublesome problems. Motivation is about the intensity, direction and persistence of reaching a goal. During the class, we have learned a substantial theories of motivation and many theories of motivations are used in real business. Each theory seems to have different basic values. But, they all have been analysed for one reason, recognising what motivates and increases the performance of employees. Ident...