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Research proposal on effect of employee motivation on organization performance
Research proposal on effect of employee motivation on organization performance
Motivation theory for employees in practice
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What Motivates Employees? (Hint: It Isn 't Money!)
For years, businesses have operated under the assumption that money was the primary motivation for employees to remain with an employer, dedicate themselves to the company 's success and strive to produce exemplary work. Managers have dangled merit increases, bonuses and other financial incentives in front of their employees in the belief that the pursuit of money would result in greater productivity, reduced turnover, improved product quality, better customer service and even lower rates of absenteeism. If money is such a great motivator, why are so many companies still plagued by low productivity, high turnover, plummeting quality, disappointing customer service and high absenteeism despite
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The "SHL Workers and Good Management Study" asked respondents what inspired them to work harder. The study found that only 20 percent of the workers surveyed reported that they found motivation in money and bonuses. (2)
3. Researcher Susan David conducted a study of business units that had extremely engaged employees. When she asked the employees what was behind their outstanding engagement scores, only 4 percent mentioned pay. (3)
Why Money Does Not Matter More
Naturally, employees are individuals who are motivated by different things. Even the same employee can have motivations that change over time. However, for more than 70 years, Maslow 's hierarchy of needs and its revised models have been used to demonstrate what motivates people. The concept is typically illustrated as a pyramid with five to eight tiers. Only after the needs defined in the lower tiers have been met does the motivation for the next tier become relevant. (4)
1. The bottom tier represents the basic physiological needs that are required for survival. These include sleep, shelter, food, warmth, air and water.
2. The second tier represents the desire to be safe. This tier includes needs such as freedom from fear, protection from the elements, law and order, stability and
When employees were asked, what factors could be changed at USAA to help maintain employee motivation levels, a couple of them answered with, “higher wages” and “more money”. This response corroborates other studies regarding pay which state surveys will more likely under emphasize the importance of pay relative to other motivational factors. (Rynes, Gerhart & Minette, 2004). “Financial incentives had by far the largest effect on productivity of all interventions. For example, pay was four times more effective than interventions designed to make work more interesting.” (Rynes, 2004). One reason for this phenomenon is social desirable responding. It should be noted, that although pay may be under reported, the results indicate other factors are also important for employee
The performance of employees will make or break a company; this is why it is important to find a variety of methods of motivating employees. The most obvious form of motivation for an employee is money; however, there are other motivation factors that must be considered. Every employee within a company is different and, therefore, is motivated to perform well for different reasons. Conversely, due to the differences within an organization, it is important for a manger to get to know their employees and understand what motivates their performance.
The second level is the need for physical and psychological safety and security. It consists of need for stability,
Mullen, P. (1993). EMPLOYEE MONETARY SYSTEMS: THE PAST OR FUTURE IN EMPLOYEE MOTIVATION. Industrial Management,35(6), 6.
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.”
One way to understand the individual and motivational methods is to revisit Maslow’s hierarchy of needs (Maslow 1954). In business it is approached as a model for defining motivation. A model for understanding the needs of the individuals, considerate to all disciplines. It continues to be utilized for understanding the driving forces and what is important to the individual.
Often monetary incentives (i.e. raises) will provide an increase in motivation; however, Dholakiya states that, “The happiness linked to a pay raise wears off quickly. At best, it will have a passing impact on motivation. It’s common human tendency to want more, especially when it comes to salary” (Dholakiya). The reality of monetary
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.
Ability in in turn depends on education, experience and training and its improvement is a slow and long process. On the other hand motivation can be improved quickly. There are many options and an uninitiated manager may even know where to start. As a guideline seven strategies for motivation.
Often, money encourages employees to work better. This is known as extrinsic rewards. Extrinsic rewards are given by a manager to increase pay, promotions, and praise. Sometimes, depending in the work place, managers are not able to motivate employees with a raise. Every employee would want an increase in salary to make them want to work harder and give good work. However, managers can praise their employees for the good work. Rather than involving money in motivation, managers can give feedback, recommendations and opportunities to their workers. It gives their employees a sight that their managers care. In other words, McClelland 's needs theory also describes this type of scenario. These types of people actually like the feedback, and they strive to do better to achieve the company 's
They therefore value the opportunity to increase their learning perience. (Turner,2009, p88). Money is not the only motivator and it is not the primary motivator for everyone. However, there is overwhelming evidence that money is an important motivator for most people. The idea that motivation at work is driven by more than one need was explored by Maslow's hierarchy of needs which classifying human needs. Maslow's physicogial , security, social, esteem and self actualization sets of need, where in physiological need can be met through good working conditions, attractive wage or salary, subsidized housing and free or subsidized catering,(Huczynski, Buchanan,
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
An important part of the retention of staff, reducing staff turnover and minimising absenteeism at work is ensuring that staff are properly motivated. This is not as easy as it sounds. At first glance, you might be tempted to think that merely increasing wages is the way to motivate! Not so. Most thinkers on the subject would argue that motivation is a far more complex issue than merely 'money'.
Money is an important factor in the motivation of employees, as profit acts as a
As a manager, a major factor in your success is your ability to motivate the employees that work for you. If you cannot motivate your employees, you will most likely be an ineffective manager. Motivations are complex, resulting in a variety of theories focused on the topic. Content theories of motivation focus on the individual needs of people being the driving motivational force (Kreitner & Kinicki, 2013). These theories fail to account for individuals’ interactions with their environments and how they influence motivational factors, process theories of motivation attempt to encompass these influences (Kreitner & Kinicki, 2013). A myriad of factors influence what motivates individual employees, but often financial compensation is a huge motivating factor and the perceived fairness of that compensation.