literature review

Malallah

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 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 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 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.

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.

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.

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.