Role of Monetary Rewards in Employee Motivation
In the recent scenario, it has been analyzed that employees are engaged in earning more money. They get attracted to the work place where attractive package is offered to them. In the workplace, it has been seen that productive and motivated employees are an important part of the company. Every company focuses on recruiting those candidates who are efficient and dedicated towards their work (Keynes, 2018).
In this paper the emphasis will be given on role of monetary rewards in creating effective relationships with the employees. The focus will also be given on the organizational theories so that proper understanding can be made that how financial reward motivate the employees. The pros and cons of the monetary rewards will also be evaluated.
It has been analyzed that in the present scenario, due to high competition level companies focuses on motivating the employees so that they can give their best towards the overall activities of the company. It can be evaluated that if employees are not motivated then it can be difficult for them to accomplish the organizational goals. There are various theories related to organizational behavior which are considered by the management of the company so that positive impact can be seen on the overall productivity level and also on the motivation level of the employees. It also emphasizes on the behavior of the individuals and groups who are doing their routine activities in the company (Leary and Baumeister, 2017).
It has been analyzed that the main role is of human resource management in offering monetary and non-monetary rewards to their employees so that they can give their best towards the assigned activities. The rewards which are offered by the employees help to build effective relations in the workplace. It is important to design programs which emphasizes towards the factor related to motivation and retention of the employees in the workplace (Bratton and Gold, 2017).
Motivation is considered as an important factor that should be possessed in the employees of the company. If employees who are conducting the activities of the company are not motivated then negative impact can be seen on their productivity level and also it is difficult to achieve desired goals of the company. It is the duty of the management to understand that how employees are motivated. There are also many organizations that focus on giving the rewards on the basis of the overall performance of the employees (Lepper and Greene, 2015). Hierarchy of needs theory will help the company to analyze the factor of motivation. This is one of the popular theories and it was developed by Abraham Maslow. In this theory the needs of the employees are divided into five categories which are Physiological, safety, belonging, esteem and self-actualization. This theory was developed to motivate the employees by analyzing their needs and wants. When needs of the individual are satisfied then it can also enhance the satisfaction level of the employees towards their job. It has been seen that physiological needs are for the low level employees that should be fulfilled with the extrinsic rewards like bonus, salary increase and also fringe benefits (Fallatah and Syed, 2018).
Organizational Behavior Theories Related to Employee Motivation
The employees who belong from the category of middle and top level are motivated by the intrinsic rewards which are related to praise, recognition and sense of achievement. Money plays a great role in motivating the employees. The employees who are well paid have the job satisfaction and also effective relations are built with management. It is important for the company to focus on enhancing the satisfaction level of the employees so that positive environment can be created in the workplace (Olafsen et al., 2015).
There are many researchers who stated that money is considered as one of the best way to motivate the employees. It has been seen that living standard of the people has been improved by having proper earning. But it has also been evaluated that money can motivate the employees for short period. For motivating the employees for long run there are many factors on which focus is given by the employees. Like there should be positive environment in the workplace and also the activities that are assigned should enhance the satisfaction level towards job.
In context to this concept “Motivation hygiene theory” was introduced by Frederick Herzberg. This theory emphasizes on offering satisfaction of job which is affected by the motivators and dissatisfaction with the hygiene factors. Job dissatisfaction can take place because of many factors like overall process and rules of company, relation of the employees, basic salary offered to the employee and also environment of the company whereas job satisfaction can be affected by the overall duties, personal growth, achievement and recognition. Herzberg stated that if satisfier factors are improved then it can help to enhance the satisfaction level towards the job. Also if hygiene factor is improved then it can negatively affect the overall job satisfaction of the employees (Miner, 2015).
By analyzing this theory it can be seen that if there is no proper monetary reward offered to the employees then it can lead to dissatisfaction to employees but satisfier factors has an essential role in motivating the satisfaction in relation to job of the employee. So, it can be stated that through monetary rewards only the employees cannot be motivated and retained in the workplace.
If monetary rewards are considered by the companies then there are many positive impacts which can be analyzed. It has been seen that through monetary reward employee will feel happy and conduct the activities with proper dedication and efficiency. Also, company can easily attract talented candidates by giving them more salary as it can be evaluated that basic need of every employee is salary. If company focus on monetary rewards it has been seen that effective relations can be maintained in the workplace. Therefore, it can be seen that if effective monetary rewards are given to employees then it motivate them to give their best towards the overall operations of the company. Also monetary benefits enhance their own level of confidence towards work (Reeve, 2014).
Pros of Using Monetary Rewards for Employee Motivation
It has been analyzed that there are many advantages of monetary rewards but there are also many disadvantages. There are many people who are not motivated with the monetary rewards. It is simple for the employee who is capable to get the high paying jobs in any industry so they focus on the other aspects like environment, culture and polices. If the working environment is not good employee will not be satisfied in giving their best towards the activities of the company. Also if financial incentives are the given to the employees then it can give negative impact on the employees. It has been seen that there are many employees who are indulged in unethical operations just because they want to achieve their targets. There are many employees who are irritated by doing monotonous work and they start focusing on the environment and maintaining relationship with the others. When financial incentives are given to the employees, it also enhances the feeling of jealously among other employees which directly impact the overall environment of the company (Tanford, Hwang and Baloglu, 2018).
Therefore, it can be analyzed that there are pros and cons of monetary rewards on motivation level. So, in this case it has been evaluated that managers should focus on managing the operations. It is the duty of the managers or top management to consider the theories related to organizational behavior.
The theories that can be considered by the managers can be the theory which is given by Vroom. Vroom introduced the theory named as expectancy theory in which the level of motivation is related with the overall results which is achieved. If employees are enjoying doing their work they will continuously work and achieved their outcome (Parijat and Bagga, 2014).
The needs should be also considered by the managers of the employees so that employees can be motivated and maintain proper relationships with the other employees. Also analysis of the performance should be done and reward should be based on that only so that employees give their best towards activities with job satisfaction (Barba-Sánchez and Atienza-Sahuquillo, 2017). So, it is essential to consider the organizational theories so that wants of the employees can be analyzed and rewards can be given accordingly by focusing on all the factors.
Therefore, by analyzing the paper it has been concluded that theories related to organizational should be considered so that employees can be motivated and proper relations can be maintained. Also it can be stated that monetary rewards are considered the best way to motivate the employees and also to create better relations with the other employees. It is important for the management to consider the organizational behavior theories which can help in satisfying the wants of the people. If there proper management of the monetary and non-monetary rewards then it can help the organization to expand their business operations.
References
Barba-Sánchez, V. and Atienza-Sahuquillo, C., 2017. Entrepreneurial motivation and self-employment: evidence from expectancy theory. International Entrepreneurship and Management Journal, 13(4), pp.1097-1115.
Bratton, J. and Gold, J., 2017. Human resource management: theory and practice. Palgrave.
Fallatah, R.H.M. and Syed, J., 2018. A Critical Review of Maslow’s Hierarchy of Needs. In Employee Motivation in Saudi Arabia (pp. 19-59). Palgrave Macmillan, Cham.
Keynes, J.M., 2018. The general theory of employment, interest, and money. Springer.
Leary, M.R. and Baumeister, R.F., 2017. The need to belong: Desire for interpersonal attachments as a fundamental human motivation. In Interpersonal Development (pp. 57-89). Routledge.
Lepper, M.R. and Greene, D. eds., 2015. The hidden costs of reward: New perspectives on the psychology of human motivation. Psychology Press.
Miner, J.B., 2015. Motivation-Hygiene Theory: Frederick Herzberg. In Organizational Behavior 1 (pp. 77-90). Routledge.
Olafsen, A.H., Halvari, H., Forest, J. and Deci, E.L., 2015. Show them the money? The role of pay, managerial need support, and justice in a self?determination theory model of intrinsic work motivation. Scandinavian journal of psychology, 56(4), pp.447-457.
Parijat, P. and Bagga, S., 2014. Victor Vroom’s expectancy theory of motivation–An evaluation. International Research Journal of Business and Management, 7(9), pp.1-8.
Reeve, J., 2014. Understanding motivation and emotion. John Wiley & Sons.
Tanford, S., Hwang, E. and Baloglu, S., 2018. Evaluation of reward programs based on member preferences and perceptions of fairness. Journal of Hospitality Marketing & Management, 27(1), pp.106-126.
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