EMPLOYEE MOTIVATION

Performance Related Pay Motivates Employees to Improve Performance

Performance Related Pay Motivates Employees to Improve Performance

Introduction

“Having competent and well motivated employees are equally important for organizations.” Motivation of the employees is a significant factor which can lead an organization towards success. Motivation is the driving force behind every action. Human beings perform various tasks, but there is a driving force behind every task they perform. They should be motivated in order to perform their task in the best possible manner. Motivation plays a prominent role in outstanding performance. This performance can be in academics, work, house etc. All performances, whether small or big, require motivation and once an individual gains motivation he or she can perform the task in a remarkable manner.

Rationale for the Study

Some management theorists argue that today's subordinates enjoy greater autonomy and opportunity to provide professional input than ever before throughout history (Beck, 2003, pp. 67-89). However, Manville and Ober claimed that today's subordinates remain highly limited with regard to having a "voice" in decisions affecting their organizations (p. 2). This notion leads to a discussion of the motivational needs of subordinates and how they influence ultimate job performance. In his hierarchy of needs theory, Maslow claimed that all workers have several common needs such as the desire for self-respect, self-esteem, and esteem from others. He further posited that feelings of self-confidence, worth, strength, capability, adequacy, and usefulness in the world lead to subordinate satisfaction and self-actualization (Boddy, 2009, pp. 62-79). In contrast, thwarting these needs could lead to feelings of inferiority, weakness, and helplessness, giving way to neurotic and erratic behavior on the part of subordinates. Herztberg and colleagues (1959) concurred with this assessment and also believe that any threat to the basic needs of subordinates could spur resistance to organizational-change initiatives.

Today, as the environment is changing and the competition is increasing, the need for motivated employees is also increasing. Companies need to make sure that their employees are satisfied and are working towards the betterment of the company. This is how the competition is, and this is how it is affecting the working environment. If an organization fails to keep its employees motivated, it will be left far behind in the race plus it will also have a negative impact on the company (Boddy, 2009, pp. 62-79). Companies need to introduce competitive compensation packages and facilities for their employees. Employees who are not motivated will not be personally satisfied nor will they be productive. In the end, it is the company who will suffer. Personal satisfaction and productivity are two important things that are considered in motivation, and if they are not achieved the employees will not be able to achieve self actualization and will also not be prove to be beneficial for the company (Bruce & Pepitone, 2008, pp. 43-134).

Research Question

Following is the research question for this study:

Does performance related pay motivates employees to improve their performance?

Literature Review

Motivation is an internal drive to satisfy one's unsatisfied needs (Higgins, 1994) and is commonly used in ...