• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

Drawing on your understanding of the theories of motivation and using examples where appropriate, critically assess the role of money as a motivator?

Extracts from this document...

Introduction

Drawing on your understanding of the theories of motivation and using examples where appropriate, critically assess the role of money as a motivator? The basic outlook on motivation is that needs equal behaviour which in turn equals satisfaction and vice versa. I.e. you have certain needs or wants, and this causes you to do certain things (behaviour), which satisfy those needs (satisfaction), and this can then change where needs/wants are primary. 'The underlying idea is that all human beings are motivated to undertake certain actions - including purchasing goods and services and going out to work - by certain needs. Various needs come into play as motivators.'(Abraham Maslow.) Abraham Maslow suggested that we are motivated to satisfy our needs hierarchically: first is the desire to satisfy physiological needs, then the desire for security, the desire for companionship and a sense of belonging, the desire for self-esteem, and the desire for self-actualization, doing what one most wants and is best suited to do. As people's lower or basic needs are met, broader more in depth issues motivate them. A person needs to feel as if his/her needs have been met on previous level(s) ...read more.

Middle

In a company that uses a stock option policy, managers get stocks as their bonus, and this policy can lead to illegal performance and inappropriate actions as Ivan F. Boesky found out to his disadvantage. He was accused of insider trading that led to huge personal profits and eventually a $100 million fine. This scandal was described as one of the worst on Wall Street history, and unsettled public confidence with the fear that stock trading may be fixed. 'Money is often used for motivating, but it also addresses itself to human greed, which dulls the conscience and may lead to unethical and illegal behaviour.' (Weihrich and Koontz, 1988) Secondly, companies can use other low cost motivators to motivate their workforces to perform better. "A personal organiser, complete with a leather case, is one of the gifts being offered to British Telecom employees as part of BT's "Living Our Values" initiative. BT is using non-cash benefits to reward exemplary behaviour. The BT initiative is an example of an employer using gift items to enable managers to show gratitude to employees for such things as continuous improvement and teamwork." ...read more.

Conclusion

Management tend to use money as armour in their toolbox and release their 'weapon of extra incentive' when required. On the whole money is not always top employee priority although it is important, because 'the money that you bring home buys the bread.' People are also motivated by variety of items and using money as the only motivator is not as good a strategy as it should be. It can motivate people to perform better but only as the external motivator. People do not feel that they really want to work because of "intrinsic interest in a task" (Kohn, 1998) but they work just for money. This can lead to inefficiency and illusion of performance and also cause corruption and illegality in work. In fact there are many motivators that can bring about the same or even better result as money. Furthermore, using these motivators can reduce the cost of the company also. Last but not least, although money can buy many things, it cannot buy satisfaction and not all employees' needs can be satisfied by money. Therefore, monetary motivators can not motivate everybody. As seen in this essay, motivating people by money can create some disadvantages and money is not the 'be all and end all of motivation,' so the company has to be very wary when using it. ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our GCSE People in Business section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related GCSE People in Business essays

  1. Content and process theories of motivation

    These were valence, instrumentality and expectancy. Vroom describe valence, as the feeling you get from an outcome this could be satisfaction or dissatisfaction as well as the anticipated satisfaction of an outcome. Vroom's second variable instrumentality that distinguishes first level outcomes (performance related)

  2. This essay will critically compare the machine and culture metaphors described by Morgan in ...

    guidelines that they must follow which ensures the best service possible for the customers throughout the 286 stores. It would be impossible to run Pizza Express restaurants in London and Newcastle and get the pizzas to taste the same without strict guidelines.

  1. What is Motivation?

    (Paraphrased, D. Floyd, 1990 p120). Fundamentally the classical theory of motivation believed workers would always act in the organisations interests, and money is the key motivator to this belief. The classical approach to motivation at work still exists today, however more commonly, readily accepted and practiced is the Humanist or

  2. manging theories and globalization

    Between the years of 1980 and 2000, many transitions occurred. This period displayed the industrial age giving way to the economic imperatives of the information era (Hunt. 2001, p.1). Varied surrounding environments nowadays challenge management on a global scale, including Fayol's methods.

  1. Evaluate critically Quality Management theories as expounded by Deming and Juran.

    Problems arise when managements think that quality problems are due to the poor performance of the latter. Juran argues that an organisation should work together to achieve quality. I support his argument as only the top managements have the authority to make decisions and implement change.

  2. Organisations and Behaviour

    The systems approach tries to reconcile the theories of Webber and Fayol with that of Hertzberg. It focuses on the interrelationships of structure and behaviour within the organisation. There are two types of systems, an 'open' and a 'closed' system.

  1. I have decided to investigate a large hotel chain called intercontinental hotels group PLC. ...

    They will tell other people about the service if is bad. If in the holiday inn they do not get enough customers then there cash flow will be affected because they are not making enough profits. The holiday inns have to keep their customers happy and portray a good image so that they will attract more customers.

  2. Human motivation

    Maslow identified five general types of motivating needs in order of ascendance: Physiological needs: These are the most basic human physical needs, including food, water and sex. In the organizational setting, these are reflected in the needs for adequate heat, air and a base salary to ensure survival.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work