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We hear that 'better pay motivates employees to be more productive'. We also hear that " Happy employees are productive employees'. Using motivational theory and empirical evidnce, argue which statement is more accurate.
The word argue is defined as presenting the case for or against a particular position and demonstrating weakness in the opposite argument.
Introduction
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Place Your OrderIt can be said that the theory of organisational behaviour is associated with the study of how people behave in the organization. This helps in the development of better relationships and help in achieving the social, organizational as well as human goals. There are different organisational theories that motivate the employees to perform better. The managers in different organizations must have the required skills so that they can achieve the organisational objectives. On the other hand, it can be said that motivation helps the managers to perform better and this motivation can be considered to be a dynamic force that helps the individuals to achieve their goals and objectives. The motivation of the employees plays a crucial role in the accomplishment of different tasks in the organisation. This is considered to be an integral part of fulfilling the desires and wants of the individuals and thus help in achieving their particular goals (Buckingham & Coffman, 2014).
Discussion
The motivated employees perform better in the organization and they can be considered as productive and thus help the organization to survive. Money is considered to be a crucial incentive for the motivation of the employees and thus the employees can satisfy their needs and wants. This also serves as a scorecard and thus the employees can assess their values with others on the basis of their pay. On the other hand, it can be said that money also has a symbolic value. The employees can try to maintain equity in the organisation between the inputs received in their job and thus they can compare it to the outputs. The theory highlights that the employees perceive of how they are being treated fairly and thus compare the ratio of their inputs with the outputs in the organisation (Koning & Van Kleef, 2015).
The reinforcement and the expectancy theory are also related to the motivating theory of money. The reinforcement theory states that the pay is contingent on the basis of performance. This will encourage the employees to perform better and thus they can maintain high level of efforts (Vratskikh, Al-Lozi & Maqableh, 2016). On the other hand, according to the expectancy theory, money motivates the employees to that extent where they can try to perceive the satisfying goals and thus remain dependent upon the performance criteria. It can be said that money acts a motivator of employee’s productivity and thus they are considered important to the employees. The employees consider money as a reward for direct performance and they must try to perceive the marginal amount of money to be significant and thus help in the development of their performance. It is the responsibility of the management to have discretion so reward higher pay to the better performing employees in the organisation (Olafsen et al., 2015).
However, it can be said that not all employees are motivated by money for increasing their performance level. Money only acts as a strong motivator for those individuals who are focused to meet their basic needs for their survival. For example, the relation between job satisfaction and salary is considered to be very strong. The employees who are satisfied with their job and salary level tend to concentrate more on their task and this helps them in better performance. On the other hand, the salary of the individuals are determined by the pay standards in the community, the current and the future prospect of the organization, cost of living and the performance of the employees in the organization. In many organizations, it can be said that the employees who are not getting higher pay do not get any reward for their performance. The managers only have a small proportion of amount in their discretion and thus they provide reward only to the employees with higher pay and thus motivate them to perform better. This is considered to be an unlikely condition and thus it helps in making money as a motivator of higher performance in the organisation (Nyberg, Pieper & Trevor, 2016).
The incentive acts as a motivating influence that is designed to motivate the employees and drive their behaviour so that they can produce better work in the organization. The employers also use different types of incentives so that they can increase the production level of the employees. The theory forwarded by Herzberg has helped in determining the factors in the working environment that caused satisfaction and dissatisfaction among the employees who are involved in the organization (Cerasoli, Nicklin & Ford, 2014). The factors that have satisfied the employees are called motivators and the factors that have led to dissatisfaction among the employees are called hygiene factors. The term hygiene was used by Hezerberg to explain the maintenance factors and the other factors that has not satisfied the employees and thus they have led to employee dissatisfaction. On the other hand, it can be said that the hygiene factors are not associated with the real job of the employees and thus they are not paid right salary for the right kind of work in the organisation. There are several factors that cause employee’s dissatisfaction and thus it affects the performance of the employees in the organization (Gupta & Shaw, 2014). On the other hand, it can be said that the policies of the organization also causes dissatisfaction among the employees and thus it does not help in improving the performance. This relation between the managers and the employees has led to poor relationship among the employees in the organization. Herzberg has also argued that human beings are not satisfied with the lower level of fulfilment in the organization and thus they need higher pay to fulfil their psychological needs. Moreover, they are also satisfied with the responsibilities that have been assigned to them (Bellé, 2015).
The incentives help in motivating the workers in a number of ways. The pay per piece is considered to be effective for the workers when the talents in the organization vary drastically and the workers are provided better rewards for performing well in the organization. The employees also have the option to increase their productivity and thus help them to earn more. On the other hand, the productivity of the workers is considered to be self-determined and thus they are paid for their completed work. The increasing salaries encourage the workers to perform better and thus they can work for the fulfilment of common goals of the organisation (Connelly et al., 2016). For example, the incentives, bonuses and the other opportunity to increase the wage with the help of different piecework will help in improving the morale of the employees and thus motivate them to perform in a more developed way. On the other hand, open communication, security and fairness also helps in successful teamwork and thus it helps in the development of effective managerial style that leads to higher productivity and loyalty in the organisation (Adam Cobb, 2016).
Competitive compensation helps in retaining, recruiting and motivating the employees to a certain extent. The salary offerings must be considered comparable to the industry level standards and once they are established, they help in the development of better compensation packages so as to keep the employees motivated in the organisation. On the other hand, there are different traditional ways to keep the employees motivated and thus this helps in motivating the workforce to a much garter extent. It also helps in nurturing the talent so as to provide a better work environment and thus help in understanding the different factors of employee’s motivation. In certain cases, it has been found that the method of performance pay can also backfire the employees and thus it causes argumentative behaviour among the employees that leads to unequal distribution of pay, stress and overwork. The performance related pay is associated with the perception of work and this is considered to play a more intense role. The individuals who are employed might feel the pressure to work under different circumstances and thus obtain reward accordingly. The positive influences are related to performance pay and thus they can lead to job satisfaction, trust among the management and organizational commitment (Chen, Zhu & Zhou, 2015).
There must be positive relationship among the wellbeing of the individuals and the other pay related outcomes and thus this is considered to depict that it will increase the pay of the employees and there will be positive trade-offs that is contributing to the success of the organisation. The employees believe that the incentives of the organization such as profit related pay are found to have negative relationship with the well-being of the employees. In many cases, it has been found that the performance related pay may be considered to be a burden for the employees and thus it provides extra pay for the workers through the process of intensification of the work. The improvement in the engagement of the employees is determined by the different follow ups in the management process and there are volunteers from different teams who work for the development of the organisation. They help in reaching the organisational goals within the specified time and framework (Ismail, 2014).
It can be said that compensation of the employees is considered to be one of the biggest expense that is faced by the employees and thus they are motivated to contribute for the success of the organisation. One of the most important drawbacks of motivating the employees by providing proper financial rewards will lead to inconsistency in the performance of the employees. The company might perform poorly and thus they might not have enough money to pay of the bonus to the employees even if the employees work harder. The employees also receive smaller amount of rewards than they expect and thus this leads to demotivation among the workers. On the other hand, it can be said that teamwork is also considered vital for the employees and there are some workers who can work much better and thus they are not provided with different kinds of incentives and bonuses and this does not motivate them to perform better. There are many companies that pays bonuses to the employees based on their work and this also motivates their co-workers to perform in a much better way in the organisation (Bakker, 2015).
On the other hand, another important drawback of financial reward leads to burn out of the employees. The financial rewards and the bonuses will rewards the workers when they put in extra effort and this will boost their chance of receiving the reward from the employees. This overwork will lead to different types of problems like low productivity and low morale of the employees that they spend at work. For example, it can be said that the employees who are not well paid off for their work do not receive proper motivation. If they are not given proper incentives in carrying out their task, they restrict from performing well in the organisation. Moreover, performance based incentives are also provided to the employees and this might have negative effect on them. The organisation might try to push the employees to work harder but the aggressive sales can lead to turn off to the customers (Rasul & Rogger, 2018). In many cases, it has been found that there is lure for additional money and this is limited to the employees in the organisation. The employees can try to earn additional amount and this will weigh them extra money if they decide to work for extra additional hours and this will benefit the employees in the long run. The employees will also not be willing to take the money if they get paid easily and thus they will lose the zeal for working for additional hours in the organisation. Moreover, there are many such factors that will hinder the workers from receiving additional cash and thus their efforts in the organization will not be given due importance and value and they will feel demotivated to work for additional wages (Gerhart & Fang, 2015).
Conclusion
Therefore, it can be said that to motivate the workers in the best possible way, it is vital to employ the proper tools that will not only increase the salary of the workers but also help them in non-monetary rewards. The provision of providing incentive, bonus and the other opportunities that are related to increase in the wage of the workers will try to bring changes and thus provide empathetic work environment that will help in the long run development and success of the individuals as well as the organization.
References
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Bakker, A. B. (2015). A Job Demands–Resources approach to public service motivation. Public Administration Review, 75(5), 723-732. Retrieved from: https://www.isonderhouden.nl/doc/pdf/arnoldbakker/articles/articles_arnold_bakker_389.pdf
Bellé, N. (2015). Performance?related pay and the crowding out of motivation in the public sector: a randomized field experiment. Public Administration Review, 75(2), 230-241. Retrieved from: https://brainmass.com/file/1588557/Performance-Related+Pay+and+the+Crowding+Out+of+Motivation+in+the+Public+Sector_+A+Randomized+Field+Experiment..pdf
Buckingham, M., & Coffman, C. (2014). First, break all the rules: What the world's greatest managers do differently. Simon and Schuster. Retrieved from: https://s3.amazonaws.com/academia.edu.documents/42132570/First_Break_All_the_Rules.Buckingham.pdf?AWSAccessKeyId=AKIAIWOWYYGZ2Y53UL3A&Expires=1525144502&Signature=42sGGwB1EFFioHn3y9Wz%2BC%2FHGxk%3D&response-content-disposition=inline%3B%20filename%3DFirst_Break_All_The_Rules.pdf
Cerasoli, C. P., Nicklin, J. M., & Ford, M. T. (2014). Intrinsic motivation and extrinsic incentives jointly predict performance: A 40-year meta-analysis. Psychological bulletin, 140(4), 980. Retrieved from: http://unotes.hartford.edu/announcements/images/2014_03_04_Cerasoli_and_Nicklin_publish_in_Psychological_Bulletin_.pdf
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