ORGANIZATION MANAGEMENT & LEADERSHIP

Organization Management & Leadership



Organization Management & Leadership

Impact Of Money On The Work Motivation Of Individuals

Money motivates some people in certain circumstances, so the issue is not whether money motivates or drives, since the answer is yes. The relevant question is whether money motivates most of today's workers. According to argue, the answer to this question is negative. You have to meet certain conditions for the money to motivate people (Pryor, Humphreys, Oyler, Taneja & Toombs, 2011). First, the money should be important to the individual, but money is not important to everyone. For example the best workers have an intrinsic motivation and the money would have little effect on them. Second, the individual should receive the money as direct compensation for their performance. However, in most organizations the relationship between money and performance is vague. The most common is that wage increases are dictated by factors that relate to performance, but things like experience, rather than wage levels or profitability of the company.

Third, the marginal sum offered by the performance must seem significant to the individual. In research indicated that merit increases should be at least seven percent of base pay for employees to receive it as an inducement (Nkomo, 2011). Finally, management should have the freedom to reward the best workers with more money, but unions and compensation rules restrict this power company. Where there are unions, such freedom is almost nonexistent in the media and non-union salary scale traditional limited impose severe restrictions on wage increases.

The complex factors that drive an individual to work can not be reduced to a purely economic motivation. A statement like this is wrong because people work despite having fully satisfied their financial needs. The motives that lead men to work include social rewards such as social interaction, respect, approval, status and sense of purpose. If economic motivation was simply to raise wages would be enough to motivate employees to raise their productivity, but the experience shows that it is (AL-Tarawneh, 2010). The work provides a way to meet many needs and feel a sense of importance in the eyes themselves and against others.

The activities and feelings that workers develop their work in and to become parties to the determination of motivation. This has been demonstrated in the famous experiment of Elton Mayo in the Hawthorne that the worker is not a standalone machine that produces results dependent only on its physical health and the conditions surrounding it, as it is a human being who participates in of a group and changes in working conditions not solve anything if the relations between labor and management are unsatisfactory.

There is no doubt that factors of home and other activities have important effects on employee motivation. Such factors as mood, conflicts, etc.. They are very important and should be considered to motivate the worker, as any effort to make the organization to increase employee motivation may not have more effective if you have problems outside the work situation, whether of a family ...