Is Money an Effective Motivator at Work?

Is Money an Effective Motivator at Work?Motivation is a psychological feature that arouses an organism to action toward a desired goal (Princeton University). In today’s competitive and challenging world of business, getting good and efficient people for any business enterprise is like asset building. A good management of a successful organization always retains their human assets because the success is traced back by their motivated team of staff and workers. Motivation is directly associated with the success of any business establishment.
There are many ways to motivate an employee and the business manager has to analyze what measures can encourage optimal performance and satisfy his work staff to achieve the desired objectives of the organization. Studies on motivation and man management has revealed that although money is not the only motivator at work, but money plays a major role in the motivation of an employee.
At work, money rewards are found very effective to motivate employees and can be in the form of incentives, promotions, increments in the salaries, special allowances, performance based bonus, perks, gifts, prizes, sponsoring a vacation for the family, sponsoring employee’s children for higher education, equity shares of the company etc. Business Managers cover areas like Sales, Production, Safety, Retention, Attendance, Promptness, Courtesy, Maintenance, R & D etc., to boost up morale of the employees.
Money is need of every man. An employee is encouraged when his work is recognized and rewarded. He feels that his performance is reflected and better compared to others. The reward will make him compete to put in more efforts.
Sometimes, it is not possible to promote the employees in view of the short of vacancies, but to keep their spirits high, management compensate with money rewards. Suitable rewards and incentives not only increase output but also bring down the internal monitoring costs. Motivation in the form of contests and prizes has also shown excellent growth in the productivity and efficiency of the employee. An interesting example is the race to enter the upper management levels. The structure of remuneration for top cadres is considerably higher than middle class management, which will motivate the managers to distinguish themselves in putting their conscious efforts, and become result oriented. For example, the chairperson at Bank America earned $1,600,000 in salary and bonus in 1991, while the vice-chairperson earned “only” $1,000,000 (Business Week).
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