Money Is Not a Motivating Factor

Money is understood to be powerful motivator for more than one reason. In the first place, money is fundamental for completion of task. Work, unless it is voluntary or “play” involves a contract between two parties “guaranteed” by the payment of money. The employee takes pay as the reward for his or her work’ and the employer views it as the price for using the services of the employee. Second, as a medium of exchange, money is the vehicle by which employee can buy numerous need satisfying goods and services they desire. Third, money is one of the hygiene factors, and improving maintenance factors is the first step in effort directed towards motivation. Fourth, money also performs the function of a “scorecard” by which employees assess the value that the organization place on their services and by which employees can compare their “values” to others. Fifth, reinforcement and expectancy theories attest to the value of money as a motivator. In the former, if pay is contingent upon performance, it will encourage workers to high levels of effort, Consistent with the expectancy theory, money will motivate to the extent that it is seen as being able to satisfy an individual’s personal goals and is perceived as being dependent upon performance criteria. Expects Pay Performance Job evaluated. Consider equity of performance pay Employee sets new expectations Employee Performance Job Evaluated Feedback to employee Based on previous expectations Pay and performance-relationship. Sixth, money acts as punctuation in one’s life. It is an attention-getting and effect-producing mechanism Money has, therefore, tremendous importance in influencing employee behavior. Seventh, money is easily vulnerable for manipulation. Other factors like satisfaction, responsibility, a challenging job and the like are nebulous. Payments and the plans with which they are linked are manipulatable. Finally, money will be a powerful motivator for a person who is tense and anxious about lack of money....