literature review

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Hashim Malallah

Money as the Ultimate Motivator for Employees

It is worth noting that motivation has numerous features that make employees uniquely

different when performing their daily tasks in their respective organizations. Undeniably,

motivation is a psychological phenomenon which converts abilities into performance. It can

therefore be seen to be goal-oriented. Many times motivation is positive when it is monetary in

nature. It is good to delve into the literature that dissects the topic money as the ultimate motivator

for employees. The literature is drawn from various valid and credible sources that shed a lot of

light in light of the topic drawn from various search engines like google scholar being but an

example.

Motivation in the workplace can be defined as the processes that account for employees’

intensity, direction, and persistence of effort toward attaining individual and organizational goals.

Motivation stimulates, inspires, encourages and impels employees to take the required action. This

therefore means that motivation is the “dynamic of behavior”. In this regard, money has been

identified as an effective, powerful and simple motivator. Imperatively, money talks, it talks loudly

and even clearly. Theoretically, most if not all workers are motivated primarily by the need

for money. Therefore, if organizations want to get the most out of their workforce, money whether

as salaries, wages or bonuses must be involved to motivate them as noted by Lyons (2007).

In this regard, Tthere are numerous studies that have been asked byconducted by

researchers and business people alike, regarding money as a motivator of employees. Some have

asked how important salary/wages is in motivating employees. Others have sought to know to

what extent money is a primary motivator in the workplace. Moreover, questions have also been

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asked on whether money make jobs more enjoyable and makes worker engaged or not. There is

also a theoretical underpinning by Herzberg and Taylor's that money is among the great motivators

for employees and workers.

According to Stunkel, and Grady (2011), motivated individuals stay with a task long

enough to achieve their goal. They also assert that the objective of motivation is to create

conditions in which workers are willing to work with zeal, initiative, interest, and enthusiasm.

Monetary motivation creates conditions in which workers work with a sense of responsibility,

loyalty, discipline and with pride and confidence so that the goals of an organization are achieved

effectively. There are numerous arguments that have been put forward alluding that money is not

enough to motivate employees as noted by Meudell, and Rodham (1998). Fischer, Malycha, and

Schafmann (2019) on their part are of the opinion that, while many people argue nevertheless that

money is a primary motivator, others think that money is not a motivator as they believe that there

are bigger more sustaining motivators than money

Mitchell, and Mickel, (1999) however believe that this a double standard argument given

that those who argue so do not realize that they have bills to pay. They query the essence of people

seeking employment in the first place if they are not motivated by the pull factor of money in the

form of bonuses, salaries and wages to settle their bills. It is worth noting that money cannot be

overlooked as a motivator. It is a representative of many things including status and power. Well

remunerated with money one gains an achieved status of being the highest paid and this comes

with power. It is therefore justified to assert that money is the ultimate motivator in the workplace.

Mitchell, and Mickel go further to defend their argument noting that there are numerous

reasons that money is important to employees. It is the only urgent means of achieving a minimum

standard of living. It is the same money from remuneration salaries or wages that can get

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employees higher in standards of living as they become more affluent. It is also imperative that

employees can be motivated if money is used to add more staff in areas where there are additional

responsibilities. It does not necessarily mean that people must be given the money to be motivated.

When money is used by most kinds of businesses and enterprises as a means of keeping the

businesses adequately staffed there is an overall increase in motivation among the employees

(Mitchell, & Mickel, 1999).

According to Mitchell, and Mickel, there is no doubt that money is not only a motivator

but a great motivator. It cannot be taken away from the equation of work and remuneration. It must

be part of the equation. Otherwise, why else would people wake up or move from their comfort to

go to work and be strained and exhausted. This therefore justifies that money rises above every

other motivation of working.

It is undeniable that the topic of “money as a motivator” has drawn attention from numerous

quarters of workers. There is a self-evidence and fact that money motivates and extra money

motivates people to work extra hard as Stajkovic, and Luthans (2001) note in their journal. They

allude that it is natural for workers to compete in the workplace something also noted by Singh

(2016). Undeniably, when workers are rewarded with money for better work, then productivity

and standards are raised. While it has not always been wise or possible to promote all workers,

money has been used as an equitable and very acceptable way to reward them. Importantly, money

being a motivator is also viewed as a generalized reinforce. It is always acceptable to all people

everywhere and at all times.

All these authors save for Meudell and Rodham are in support that what leads to pay

satisfaction among workers is comparative salary in monetary terms as opposed to mere absolute

salary. When workers pay or salary goes up dramatically, and that of their comparison group, does

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not change, there is change in workers’ behavior regarding work. Moreover, in regards to

performance-related pay, when workers are paid what they believe is equitable and fair, they

become highly motivated. Money however with the smallest differential can have a great effect in

motivating workers.

Further, Singh (2016) in the journal “The impact of intrinsic and extrinsic motivators on

employee engagement in information organizations” asserts that, it would be naïve and detrimental

for an organization to motivate employees differently with some being given other non-monetary

incentives while others are given more monetary incentives. For the employees to feel that they

are treated equally and fairly, they must see comparable levels or nearly the same compensation

being given to them as noted by. Undeniably, many employees usually evaluate their compensation

in light of what the others in equal positions or with the same responsibilities receive.

Singh goes on to say that it would not augur well if money is not taken or viewed as an

effective motivator. Employees in various positions, even though at a similar level can only be

motivated if they are given salaries and bonuses that reflect their individual performance. Doing

otherwise will not buy motivation from the employees. It is therefore evident that money is the

ultimate employees’ motivator in organizations and businesses as most of these authors allude.

It is no doubt that the problem related to organizational behavior of performance-related

pay has seen fights by workers to get more compensation. As noted earlier, with or without

evidence, when workers are not being paid equitably and fairly, they become demotivated. In this

regard, money in the form of wages and salaries would help motivate employees as it will eliminate

the unfairness of the wage system within organizations.

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In concluding this literature review, money has been noted by many authors to be a

motivator that makes the employees to perform effectively for their employers. This therefore

supports the Herzberg and Taylor's Theory of money as a motivator for employees and workers in

different businesses or organizations.

Hashim,

Overall this is a great start. However, you are missing two pieces of information: 1) a discussion

of how you completed your literature review research and 2) a discussion about how (or if) you

would study this issue further. If you include these two pieces of information, you should do well

on this assignment. Additionally, please see the file posted on Canvas called “Proper Paper

Formatting” to ensure that you are meeting formatting requirements.

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References

Fischer, C., Malycha, C. P., & Schafmann, E. (2019). The Influence of Intrinsic Motivation and

Synergistic Extrinsic Motivators on Creativity and Innovation. Frontiers in

Psychology, 10.

Lyons, R. G. (2007). Towards a theory of work satisfaction: An examination of Karl Marx and

Frederick Herzberg. Journal of Thought, 42(3-4), 105-113.

Meudell, K., & Rodham, K. (1998). Money isn’t everything… or is it? A preliminary research

study into money as a motivator in the licensed house sector. International Journal of

Contemporary Hospitality Management, 10(4), 128-132.

Mitchell, T. R., & Mickel, A. E. (1999). The meaning of money: An individual-difference

perspective. Academy of management review, 24(3), 568-578.

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Singh, R. (2016). The impact of intrinsic and extrinsic motivators on employee engagement in

information organizations. Journal of Education for Library and Information

Science, 57(2), 197-206.

Stajkovic, A. D., & Luthans, F. (2001). Differential effects of incentive motivators on work

performance. Academy of management journal, 44(3), 580-590.

Stunkel, L., & Grady, C. (2011). More than the money: a review of the literature examining healthy

volunteer motivations. Contemporary clinical trials, 32(3), 342-352.