• 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...


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.


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.


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

    and Pizza Express, the vision and goal is clearly stated and understood throughout the organization so each and every individual can work towards achieving it. However, the two companies differ in their method in achieving this goal. For Pizza Express, the machine metaphor is used so they can consistently provide high quality pizzas at every chain throughout the world.

  2. Improving Motivation and Job Satisfaction at the Laredo Federal Credit Union

    Merely 53.3 percent believe they can be able to move up in the organization and earn more. ANA SECONDARY RESEARCH USING PROFESSIONAL AND SCHOLARLY JOURNALS Reasons for Lack of Motivation Different theories suggest that different things motivate humans. All individuals reach a point in their work lives when they simply are not motivated.

  1. Content and process theories of motivation

    met but this goal can only be done by putting in the behaviour required to reach such a position that you have what it takes to become a supervisor when this need is achieved it will bring you satisfaction. Maslow (1943)

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

    This is a typical theory X management style assumption. Juran argues that the bulk of the responsibility for achieving quality right lies with management (Flood p.18). This is true as most quality problems are due to the 'system', not the workers and therefore management decisions are important.

  1. Organisations and Behaviour

    The chaos theory tries to make organisations emphasise on the fact that they need to prepare themselves for turbulence, rather than having a rigid, inflexible structure with fixed conditions. It incorporates the contingency approach as it suggests that you should prepare for the unexpected with contingency plans.

  2. People' Attitude Towards Work - Investigating motivation and performance.

    Would you like to be included in decision making or quality circle? Yes[] No[] Don't know[] (6) What do you enjoy most in doing your job? ...................................................................................................................................... (7) Have you had any complaint in relation to your level of participation in your job?

  1. Critically assess what is involved in the whole issue of Performance Management and motivating ...

    there be self evaluation, upward assessment by subordinates or 360 degree assessment (from all round)? Many appraisal schemes have been linked to PERFORMANCE APPRAISAL. This involves observing, measuring and developing the performance of employees. Performance can be measured against criteria's such as output, quality and speech.

  2. A Study of Motivation Theories.

    The evolution of the concept of work motivation started with Maslow's "hierarchy of needs" (1954), where Maslow has divided an individual's needs into a series of steps, each step identifying a specific need. Maslow argues that once an individual's lower level needs are satisfied, individuals tends to move up the hierarchy pyramid to seek more advanced needs.

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