Money and Motivation
Money is the most obvious way in which an organization rewards its people.
The controversy over the extent to which money is capable of providing
motivation goes back to the rise of the human relations movement.
Human relations activists contended that a person's social needs were of primary importance, as opposed to the scientific management view that economic rewards would always increase motivation.
The scientific management view has been backed by behavioral scientists who
devoted large amounts of time to investigate
the expectancy theory.
They have found that pay will lead to greater performance
provided certain conditions exist.
The first is that the person must place a high value on pay.
The second is that the person must expect that pay and performance are related, meaning if they work harder they will get pay raises.
It is clearly desirable for employees
to perceive a direct correlation between pay and performance.
In general, money
is a proven motivator in most cases, but is certainly not the only motivator,
and often times not the most important motivator.
Don’t cry on
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