The Role of Financial Rewards in Enhancing Employee Motivation

Money and financial rewards

It has been analyzed that financial rewards plays a great role in enhancing the motivation level of the employees in the workplace. It is considered as one of the important aspects that are important for the employees as it enhances the willing to do complete the tasks or the activities. Employees do their job just because they want to earn more and it has been seen that they get attracted towards the company who offers high pay.  Money is one of the important factors that motivate the employees to give best towards the activities (Leary and Baumeister, 2017).

 To motivate the employees in the workplace it is important for the managers to focus on giving attractive packages so that efficiency of the employees can be maintained. If efficiency of the employees is maintained then overall productivity level can be enhanced.  Through proper motivation the employees will able to achieve their goals which are set by the company. In this paper the focus will be given on the topic related to motivation in context to financial rewards. By considering the monetary and non-monetary incentives pros and cons will be taken into consideration. Without money rewards it is not possible to motivate the employees in the workplace (Malik, Butt and Choi, 2015).

By focusing on the recent scenario, it can be evaluated that there are many companies who are focusing on offering similar type of products and services in the market. The customers can now easily select to purchase the products and services form the market. Also as there are many competitors, it is important for the company to focus on increasing the motivation factor that will directly impact the overall productivity level. It has been seen that if employees are motivated then only it can be possible to focus on the targets which are set for them (Nuttin, 2014).

There are various theories which are related with the organization and it is important for the managers to consider it so that efficiency can be maintained and growth can be achieved. Organization behavior theories help to evaluate the behavior and also motivate the employees towards the target of the organization. It is essential to consider the theories so that company can easily achieve growth and success in the market. The concepts of organization behavior also focus on the entire productivity level of the employees. The behaviors of the individuals are considered by focusing on the concept of organizational theories (Massingham and Tam, 2015).

Pros and Cons of Monetary and Non-Monetary Incentives

In organization the motive of the employees is to earn more incentives so they focus on delivering quality work so that incentives can be earned. It is important for the company to emphasize on proper management so that it can be easy for the people to conduct the operations in the right direction. Without incentives people in the workplace cannot be motivated towards the goals of the company. So, it is important for the company to focus on the overall policies of the company so that efficiency of the people can be maintained towards work (Nyberg, Pieper and Trevor, 2016).

It has been seen that management of the financial and non-financial incentives are done by the human resource team of the organization. The basic salaries of the employees are set by the human resource team and also it is set by considering the expectation level of the people. To maintain the relation it has been seen that it is essential for the human resource to focus on the level of expectation of the employees so that they cannot be dissatisfied with the pay which is offered by the company. The incentives are offered to the people according to their performance in the workplace. It is essential for the top management to have attractive scheme related to incentives so that people can give their best towards the activities and can earn incentives.

Also the management should focus on the wants and desires of the people. So, to analyze the needs and wants of the employees Maslow hierarchy theory is essential to be considered. There are five factors in this through which needs and wants of the people can be evaluated (Guo et al., 2014).

The five factors are physiological, safety, belongingness, esteem and self-actualization and these factors helps to motivate the employees towards their work. For the employees who are on low level physiological factor is important to be considered so that positive impact can be given and also their basic needs and wants can be analyzed. In this stage it is essential to focus on the rewards which are extrinsic like bonus, fringe benefits and salary.

There are also intrinsic rewards which are offered to the people who are on middle and top level of the management. If these rewards are offered to them then it can give direct impact on the overall morale of the employees. In this rewards are related to giving recognition, praise and also with discussing the achievement. In this safety and security should also be considered by the managers so that people can complete their activities with confidence (Bhuvanaiah and Raya, 2015).

The Impact of Organizational Behavior Theories on Employee Motivation

In the recent scenario, without money it is not possible for the employees to do their activities. To survive and to live a satisfied life people focus on earning money which satisfies their needs and wants. Money also helps to enhance the satisfaction level of the employees which also give impact on the overall level of motivation (Black and Allen, 2017).

At the time of doing job, it has been seen that money is not only the factor that entertain people or motivate people but there are many other aspect which are considered like environment of the workplace, behavior of the employees which also plays a great role in motivating the employees. In the present era, employees are focusing more on maintain relations with the people in workplace so that proper mutual understanding can be maintained.

In context to organizational theories, there is also one theory which popular. The theory is named by “two factor theory”. It has been seen that this theory has main focus on motivating the employees towards their activities.  There are two factors in this which can be stated as motivators and also hygiene factors. It can be seen that people can be dissatisfied towards the job because of the implementation of the policies and also with the basic salary which is provided to the employees. If focus is given on hygiene factor then it can be seen that satisfaction level can be enhanced.

By investigating the entire theory, it can be stated that monetary rewards should be given to the employees so that they can feel motivated. Also the aspect which is related to satisfier is important to maintain the relation with the employees in the company. Therefore, it can be evaluated that monetary rewards focus on motivating the employees and also maintain the retention power in the workplace.

If focus is given on monetary rewards it has been seen that there are drawbacks which are related to it. In the company there are many employees who are not satisfied with the policies which are offered to them and also their basic salary is many a time demotivation factor.  So, it can be said that people who are talented can take job anywhere but the motivation is also related with the culture.  Culture is important part of the workplace and if it is good then motivation can be enhanced easily of the employees. When incentives are earned by the other people it creates negative feeling in the mind of people.  It is the jealously factor which is enhanced in the employees. So, it can be seen that these all are the pros and cons which are related to the monetary rewards. Therefore, in reference to this it is important to manage the activities so that growth can be achieved by the employees in the workplace. Also one of the theories is expectancy theories in which proper analysis of the needs are evaluated of the individuals (Shields et al., 2015).

So, the managers should emphasize on the requirement of the people so that motivation level can be maintained. Also, it is important to consider the performance level of the employees so that incentives can be given in accordance to that. If employee’s performance is good then they can easily earn more profits. So, it is important for the managers to focus on the organizational theories so that motivation can be enhanced of the individual. Rewards should be given if employees are giving best towards the activities of the company.

Therefore, it can be concluded that concepts of the organization is important to be considered so that motivation level of the employees can be enhanced and also rewards can be earned. Monetary benefits can induce the customers to give their best towards the organization. It is the responsibility of the top management to manage the activities so that employee relation can also be maintained.

References

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Black, S. and Allen, J.D., 2017. Part 1: Foster Intrinsic Motivation. The Reference Librarian, 58(1), pp.91-105.

Guo, Y., Liao, J., Liao, S. and Zhang, Y., 2014. The mediating role of intrinsic motivation on the relationship between developmental feedback and employee job performance. Social Behavior and Personality: an international journal, 42(5), pp.731-741.

Malik, M.A.R., Butt, A.N. and Choi, J.N., 2015. Rewards and employee creative performance: Moderating effects of creative self?efficacy, reward importance, and locus of control. Journal of Organizational Behavior, 36(1), pp.59-74.

Massingham, P.R. and Tam, L., 2015. The relationship between human capital, value creation and employee reward. Journal of intellectual capital, 16(2), pp.390-418.

Nuttin, J., 2014. Future time perspective and motivation: Theory and research method. Psychology Press.

Nyberg, A.J., Pieper, J.R. and Trevor, C.O., 2016. Pay-for-performance’s effect on future employee performance: Integrating psychological and economic principles toward a contingency perspective. Journal of Management, 42(7), pp.1753-1783.

Shields, J., Brown, M., Kaine, S., Dolle-Samuel, C., North-Samardzic, A., McLean, P., Johns, R., O’Leary, P., Robinson, J. and Plimmer, G., 2015. Managing employee performance & reward: Concepts, practices, strategies. Cambridge University Press.

Leary, M.R. and Baumeister, R.F., 2017. The need to belong: Desire for interpersonal attachments as a fundamental human motivation. In Interpersonal Development (pp. 57-89). Routledge.