Best way to increase work motivation is through employee reward schemes

Question: “ The 1 best manner to increase work motive for an organisation is through employee wages strategies ” . Discuss.


Since the set-up of organisations in our society, the purpose of employees has ever been driven towards accomplishing the set ends. The cardinal function of constructing an employee ‘s involvement and committedness to the occupation itself is motive. ( Pinder, 1998 ) said that work motive is defined as a set of energetic forces that originally comes from both within every bit good as beyond an person ‘s being, to originate work-related behavior and to find its signifier, way, strength and continuance. Research evidences has linked motive to occupation public presentation and organisational committedness. ( Colquitt, 2011 ) . Employees are motivated for several grounds as they want to pursuit their ends and aspirations towards acquiring richer, more position and more power. Work motive comprises 3 elements such as way, the way along which employees engage their attempt ; strength, sum of attempt allocated to ends and eventually continuity, uninterrupted attempt for a certain clip. The intent of analyzing work motive was to look into how employees tend to be more committed to work under certain sort of wagess.

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Wagess and Motivation

Motivation has a strong positive consequence on occupation public presentation. Employees with higher degrees of motive tend to hold higher degree of undertaking public presentation. There are a batch of surveies that support relationships between different motivation forces and undertaking public presentation. ( Colquitt, 2011 ) .

The strongest motivation force is self-efficacy. Harmonizing to ( Bandura, 1997 ) , self-efficacy refers to the belief that a individual is able to form and carry through classs of action that are required to bring forth given attainments. Self-efficacy is besides associated with undertaking attempt, undertaking pick, and continuity in undertaking accomplishment. ( Gist & A ; Mitchell, 1992 ) .

The 2nd most powerful motivative force is hard ends. Advocates of goal-setting theory argue that for employees to run into ends successfully, they should be directed in specific and ambitious ends. Harmonizing to Locke and Latham ( 2002, 2006 ) , these challenging and specific ends motivate public presentation far better than ‘doing your best ‘ . For case, Robert Ruffolo, the new head of research and development at Wyeth, Inc. , has given his squad of scientists to work on a specific end of 12 new drugs compounds every twelvemonth and would be rewarded if they achieve them. Consequently, the set mark was achieved every twelvemonth since and the Wyeth ‘s scientists have stepped up the end to the creative activity of 15 new compounds per twelvemonth. ( Colquitt, 2011 ) . This demonstrates that employees who receive such defined ends tend to make better than those with no specific ends.

The 3rd motivational force is high degree of valency, instrumentality and anticipation developed by Vroom ( 1964 ) . This shows that extremely motivated employees believe that attempt and result will ensue in successful public presentation and desired results. However, ( Porter, 1968 ; Lawler, 1973 ) developed Vroom ‘s anticipation theory which identifies factors lending to occupation public presentation. Performance may endure if an employee is asked to make a undertaking where he is non consistent with.

Finally, employees who feel a sense of equity in the occupation will prosecute in citizenship behavior which aids the organisation.

So we can presume that what actuate employees are fundamentally wagess. Take for illustration the company ‘Enterprise Car rental ‘ . It hires about 7000 fresh alumnuss to work in the company.

High motive, enthusiasm, positivism and energy are the basic profile demands for the occupation. However, the bulk of recruits left the company but for those who stayed, they are evidently motivated by great publicity chances and panoply of inducements. ( Colquitt, 2011 ) . This illustration demonstrates that extrinsic and intrinsic work motive complements each other. The pupils are extrinsically motivated because of the publicity and are besides per se motivated due to the involvement and dispute the occupation pertains to.

There are two types of wagess viz. the intrinsic and extrinsic wagess that we will look at in the following paragraphs.

Intrinsic Wagess

Intrinsic wagess are the benefits or valued results which come from the single itself. ( Buchanan, 2010 ) . Employees are motivated on the footing of what they personally gain when put to deathing a undertaking. It can be self- satisfaction, involvement, cognition addition, accomplishment development, personal look or merely happiness procured by making that peculiar work. For illustration, when creative persons finish their pictures that took months, self achievement is the intrinsic wages when they contemplate the beauty of their work good executed. Intrinsic wagess in direction can be categorized as occupation features theoretical account, occupation enrichment and occupation authorization.

3.1. Job features theoretical account

The occupation features theoretical account is the footing of the occupation enrichment scheme of the anticipation theorists Richard Hackman and Greg Oldham ( Hackman, 1974 ; Purdy, 1975 ) . It features the occupations, person ‘s experience and results in footings of motive, satisfaction and public presentation.

This theoretical account proposes that occupation can be analyzed in footings of ‘five nucleus dimensions ‘ as follows.

a ) .Skill assortment refers to the usage of different accomplishments and abilities to make a assortment of occupation activities.

For illustration, a flight attender that announces and demonstrates safety and exigency processs every bit good as administering nutrient and drinks to riders.

B ) .Task individuality refers to the extent where a occupation requires completion of a whole piece of work.

For illustration, the collection of an full computing machine theoretical account.

degree Celsius ) .Task significance refers to which a occupation affect the whole of an organisation.

For illustration, a infirmary.

vitamin D ) .Autonomy refers to the degree of independency and freedom to make undertakings that a occupation provides.

For illustration, Best Buy brought up the construct ROWE ( Result Merely Work Environment ) where they believe that if they let their employees do their ain work direction, they would be more productive. So far, this thought resulted positively by increased productiveness and committedness among the Best Bargain employees.

vitamin E ) .Feedback refers to the grade where employees are told how good they are making based on old public presentation. For case, acquiring either a positive or negative response from the lector after presenting the presentation.

3.2. Job enrichment

Frederick Herzberg was the first to develop the construct of occupation enrichment to detect what factors influenced occupation satisfaction and dissatisfaction. ( Buchanan, 2010 ) . Job enrichment is defined as a occupation design pattern whereby employees are given multi-responsibility such as programming, organizing and be aftering their work. Herzberg came up with the ‘two factor theory of motive ‘ viz. the incentive and hygiene factors. To increase motive and public presentation, we should concentrate on the incentive factors. Herzberg ( 1968 ) argued that bettering hygiene factors will merely take dissatisfaction but will non increase motive. To accomplish occupation enrichment, he advocated the application of perpendicular burden factors which consists of bettering motive by taking controls, increasing answerability, supplying direct feedback, presenting new undertakings and particular assignments and eventually allowing extra authorization.

3.3. Job authorization

( Ford, 1969 ) have complained that they have lost their employees that are still with them. AT & A ; T employees expected interestingness and valued work but due to miss of occupation authorization, their public presentation has accordingly suffered. Empowerment gives employees more autonomy, way and decision-making duty. Harmonizing to Wall and Wood ( 2002 ) , authorization is non considered as actuating but instead as an effectual direction tool. It has more important impact on public presentation than new engineering by promoting new thoughts and effectual work.

Extrinsic wagess

Extrinsic wagess are the valuable benefits provided by others which comprise salary additions, publicity, fillips, occupation security, congratulations, acknowledgment, periphery benefits, dividends and company autos. Research suggests the power of the incentive wage is underestimated by employees. When employees rank the importance of extrinsic and intrinsic wagess, they normally put money at the 5th topographic point. However, other research surveies show that wage has a greater impact on motive than any other signifiers of wagess. This is so because money helps to fulfill the being demands and besides contributes to a sense of regard that makes employees experience well-regarded and competent. ( Colquitt, 2011 ) .

4.1. Honoring employee equitably

Adam ‘s equity theory ( 1965 ) is based on perceptual experiences of just and unjust interventions. Employees are motivated to move when unjust interventions help. The more intense the sensed unfairness, the stronger we are motivation to move. From a direction position, perceived equity seems to take to greater occupation satisfaction and organisational committedness. ( Sweeney et al. , 1990 ) . However, if for illustration, the inputs and results of employee Tens are lower compared to those of employee Y, there is under-rewarded unfairness. Employees tend to either demand a rise in salary or merely shrivel the inputs. Therefore to avoid counterproductive behavior among employees, the likely solution would be pay secretiveness.

4.2. Employee Benefits, pensions and allowancesA

There are other types of extrinsic wagess such as occupation position, rank senior status, improved public presentation assessment and non-financial wagess. Employees that have met the ends set by the organisations are sometimes rewarded with company autos, private health care, paid vacations or salary pension strategies. However, the benefits and attraction of wagess vary among civilizations. For case, good public presentation in an American-based company may gain you a trip to Las Vegas but the ‘alcohol-and-gambling ‘ wagess may non be every bit viewed in the Middle East or in some parts of Asia. A more appropriate wages for employees in India would be free entryway tickets to the new movie in film. ( Colquitt, 2011 ) .

Critical Analysis


Harmonizing to ( Stajkovic & A ; Luthans, 1997 ) , self-efficacy has been shown to be positively and strongly related to occupation public presentation. Gist and Mitchell ( 1992 ) noted that self-efficacy involves a comprehensive judgement on an employee ‘s capableness to execute a specific undertaking. They besides point out that self-efficacy is a dynamic concept that is altered over clip and in response to new information and experiences. Self-efficacy is besides comparable to assurance. The more a individual believes he/she has the ability, the more motivated he/she will be to finish a undertaking successfully.

Goal-setting theory

The chief positive facet of goal-setting is that it helps employees to hike their public presentation and has been set frontward as a powerful motivational tool. However, it contains certain restrictions. For illustration, in 1960, the Ford Motor Company has been challenged to bring forth a inexpensive and light auto in minimal clip. To be able to run into the end on clip, they overlooked unperformed safety. This resulted in their challenges deadline being achieved but to the hurt of safety ethical behavior and the company ‘s repute. Second, end scene can degrade employee public presentation by non taking into consideration certain characteristics that are still of import. Furthermore, risk-taking behavior may be badly lowered due to inordinate focal point on ends. ( Ordonez et al. , 2009 ) stressed on the fact that end puting motivates unethical behavior. Finally, ends can advance fight among employees instead than cooperation. ( Mitchell & A ; Silver, 1990 ) .


The chief advantages of this theory are: It is believable and right because of grounds support from research and merely because it has intuitive entreaty. The theory has besides its drawbacks as it is complex and covers a scope of interconnected factors. Second, the impact of occupation insecurity on public presentation and alteration is overlooked. Furthermore, the usage of instruments and statistical methods to prove the theory may hold dubious cogency. The practical managerial effects of this theory are that the nexus between public presentation and wagess must be clear if wagess are to hold wanted motivational consequence. ( Buchanan, 2010 ) .

Intrinsic wagess

Edward Lawler ( 1973 ) argued that intrinsic wagess influence us more on our motive to work.

The five nucleus dimensions stimulate three psychological provinces critical to high work motive, occupation satisfaction and public presentation. These are experient meaningfulness, where employees consider that work has value, significance and that it is worthwhile. Second, the experient duty, where the employee feels empowered about the work input and eventually, the cognition of consequences, where employees get the feedback of how good they are executing. Tim Claydon and Mike Doyle ( 1996 ) argue that authorization is non reality-based as directors in organisations are loath to renounce power of ordering undertakings to other ordinary employees.

Extrinsic wagess

Extrinsic wagess helps to kick-start employees to work even better and accomplish higher motive. But on a critical footing, Kohn ( 1993 ) claims that incentive strategies risk to neglect because even though money may assist us run into our demands, research have demonstrated that many employees do non value money foremost. Rivalry and negative influence among employees may be triggered because of competition for wagess. Incentive schemes discourage hazard pickings and originative geographic expedition. The more we see control, the more we will be given to lose involvement in our occupation. Extrinsic wagess buy attachment of employees refering working guidelines and do non promote long-run devotedness to the organisation. It is non to be taken for granted that when paying employees more, they would execute better. In fact, sometimes they may really execute worse. Employees that feel frustrated about others acquiring wagess can show counterproductive behavior where he/she will prosecute into belongings aberrance, sabotage, larceny or waste resources of the organisation.


Taking into consideration all the facts, wages strategies are efficaciously the best manner to increase work motive between employees. If every forenoon, employees wake up and travel to work without acquiring anything in return whether it may be intrinsic or extrinsic wagess, they wo n’t experience motivated at all because, we, human existences have been brought up to give and have and we all have the common nature of successfully accomplishing our ends in life. It is surely through wagess strategies that we will turn and progress in life.

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