The Importance Of Monetary Rewards In Motivating Employees

The Role of Monetary Rewards in Employee Motivation

The above statement states that Money and Financial rewards are an important part that focuses on maintaining the relations of the employees. It is one of the major factors that help to motivate the employees in the workplace. It can be evaluated that the main focus of the employees is on money or the salary which is offered by the company. In motivating the employees, money is one of the factors that also give impact on the overall productivity level. It is important for the company to motivate the employees so that they can achieve the targets which are set for them. If the employees in the company are not productive then negative impact can be analyzed on the overall profits of the company. In this paper the discussion will be made on the given statement and also various organizational concepts will be considered to motivate the employees.  When monetary rewards are considered then there are pros and cons of the same (Ganta, 2014).

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In the recent case, it has been seen that there are many competitors in the market who are focusing on offering same types of products and services in the market. So, customers have a wide choice to choose the products and services. Just because of the high competition level it is the responsibility of the company to emphasize on motivating the employees so that the operations can be completed with efficiency. Organizational objectives and goals are important to be considered by the employee so that they can complete their activities accordingly.  There are many organizational behavior theories on which the focus should be given by the management so that productivity level can be maintained and goals can be accomplished. Organization behavior takes into consideration the behavior of the people and groups who are focusing on managing the overall operations of the company (Smith and Wiggins, 2017).

Financial and non-financial rewards are managed by the HR team of the company. The overall pay which is offered to the people is managed by the HR of the company. The rewards which are given to the employees focus on enhancing the relationship in the organization. It is essential to consider programs which focus on motivating the employees so that people can give their best towards the operations which are given to the employees (Shahzadi et al., 2014).

Motivation is related with the desires and wants of the individual. If the wants and needs of the individual are satisfied then it can be easy to motivate them. It is the duty of the top management to focus on motivating the employees so that they can give their best and the overall performance of the team can be maintained. Motivation gives positive impact on the entire operations of the company and if it is not there then it can give negative impact on the entire outcome. There are many companies who emphasizes on performance based rewards. Like on the basis of performance the rewards are given to the people. They earn by focusing on the incentive procedure which is set by the company (Healy, 2016).

Organizational Concepts and Behavior Theories to Maintain Relations with Employees

One of the theories of the organizational behavior is Maslow hierarchy of needs.  It has been analyzed that this theory emphasizes on the five factors which are physiological, safety, belongingness, esteem and self-actualization. The main focus of this theory is to motivate the employees so that their satisfaction level towards the job can be enhanced. Physiological needs is one of the need in which the focus is given by the low level employees and in this it is important to consider extrinsic rewards like bonus, salary increase and fringe benefits (Deci and Ryan, 2014).

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Through intrinsic rewards the employees who are form the middle and top level management feel good. The intrinsic rewards are related with praise, recognition and also with achievement. It has been analyzed that money has an important role in enhancing the motivation level of the employees. If the employee is satisfied with the salary then they can do their job with more efficiency as compared to the people who are not satisfied with their salary. The satisfied employees will also emphasize on creating good relations with the people. Positive environment can be created if the employees are satisfied towards the job (Menges et al., 2017).  

It has been stated by the researchers that without money, individual will not be willing to do any of the activities. Money is only the source that can help to enhance motivation level within the people. But through various researches it has also been seen that money is only the factor that can motivate for short period. To motivate the employees for a long period of time there are also many aspects on which emphasis should be given by individuals. Employees now days more on the factors like working environment and also on the overall satisfaction level in context to the assigned operations (Yoon et al., 2015).

The next theory which is given by Frederick Herzberg emphasizes on the overall satisfaction level towards job. This theory is named as “Two factor theory”.  The motive of this theory is to motivate the employees towards their job and it is impacted motivators and dissatisfaction with hygiene factors. Dissatisfaction towards job can take place because of the policies of the company and also with the salary which is given to employees. Job satisfaction can be affected because of the personal growth, recognition and achievement. It can be seen that if focus is given on bringing improvisation in satisfier theory then it can be easy to increase the overall level of satisfaction towards the assigned task. It can be seen that factor related with hygiene if improved can give impact on the job satisfaction of the employees (Tu and Lu, 2016).

Pros and Cons of Monetary Rewards on Employee Motivation

By evaluating the entire theory it can be said that if there is no effective monetary reward is given then it can enhance the dissatisfaction level of the employees towards their job but the factor related to satisfier has an important role in maintaining the relation of the employees in the workplace. So, it can be analyzed that monetary rewards motivate and enhance the retention of the employees in the workplace.

If focus is given on monetary benefits then positive outcome can be evaluated. Monetary reward enhances the level of satisfaction and motivates the employees to give their best towards the organizational activities. The company can also attract employees towards the company by giving them attractive package. So, it can be said that monetary benefits if given to employees can motivate them towards the activities. The level of satisfaction can also be enhanced through monetary benefits given to employees.

There are also drawbacks which are related to monetary rewards. In the workplace there are many employees who are not satisfied with the pay only. If the employee is capable and talented then it is not difficult for them to earn more so they emphasize on the factors related to culture of the company and also with the policies. Efficiency of the employees cannot be maintained if the environment of the company is not good. There is point when people get frustrated so they focus on creating effective relations with other employees.  When incentives are offered to the employees by analyzing their performance then it can create jealously in the other members of the company which negatively affect the operations (Tsitmideli et al., 2017).

So, it can be evaluated that in context to monetary rewards there are pros and cons which are concerned. So, in this situation it is important to manage the operations and focus on the theories related to organizational behavior.

There is also one theory which is introduced by Vroom. The theory is named as expectancy theory which focuses on the need of the people. If people are performing their job then they will achieve good results (Renninger and Hidi, 2015).

The managers should focus on the needs so that motivation level can be enhanced within the employees. Performance evaluation should be made in context to job satisfaction. Therefore, it is important to consider organizational concepts so that need of the people can be evaluated and rewards can be given by emphasizing on the factors (Purvis, Zagenczyk and McCray, 2015).

So, it can be analyzed that organizational concepts should be followed so that proper relations can be built and people can be motivated towards the assigned activities. It has been analyzed that monetary benefits can give positive impact on the people and also effective relations can be maintained. It is the responsibility of the company to emphasize on managing the non-monetary and monetary benefits so that operations can be complete smoothly with proper level of satisfaction within the employees. Motivation level is important to be considered by the employees and it can be done by the managers by focusing on the organizational concepts or theories.

References

Deci, E.L. and Ryan, R.M., 2014. The importance of universal psychological needs for understanding motivation in the workplace. The Oxford handbook of work engagement, motivation, and self-determination theory, pp.13-32.

Ganta, V.C., 2014. Motivation in the workplace to improve the employee performance. International Journal of Engineering Technology, Management and Applied Sciences, 2(6), pp.221-230.

Healy, K., 2016. A Theory of Human Motivation by Abraham H. Maslow (1942)–reflection. The British Journal of Psychiatry, 208(4), pp.313-313.

Menges, J.I., Tussing, D.V., Wihler, A. and Grant, A.M., 2017. When job performance is all relative: how family motivation energizes effort and compensates for intrinsic motivation. Academy of Management Journal, 60(2), pp.695-719.

Purvis, R.L., Zagenczyk, T.J. and McCray, G.E., 2015. What’s in it for me? Using expectancy theory and climate to explain stakeholder participation, its direction and intensity. International Journal of Project Management, 33(1), pp.3-14.

Renninger, K.A. and Hidi, S., 2015. The power of interest for motivation and engagement. Routledge.

Shahzadi, I., Javed, A., Pirzada, S.S., Nasreen, S. and Khanam, F., 2014. Impact of employee motivation on employee performance. European Journal of Business and Management, 6(23), pp.159-166.

Smith, V. and Wiggins, N., 2017. Do incentive schemes encourage motivation in the workplace?. Journal of Aesthetic Nursing, 6(2), pp.104-105.

Tsitmideli, G., Sidiropoulos, G., Chalikias, M., Drosos, D. and Kalantonis, P., 2017. The relationship between subordinates and supervisors and the impact on job satisfaction and efficiency of the employees. In Strategic Innovative Marketing(pp. 57-61). Springer, Cham.

Tu, Y. and Lu, X., 2016. Do ethical leaders give followers the confidence to go the extra mile? The moderating role of intrinsic motivation. Journal of Business Ethics, 135(1), pp.129-144.

Yoon, H.J., Sung, S.Y., Choi, J.N., Lee, K. and Kim, S., 2015. Tangible and intangible rewards and employee creativity: The mediating role of situational extrinsic motivation. Creativity Research Journal, 27(4), pp.383-393.