One other view that supports money being a key motivator is that people feel that they are highly valued if they are receiving a decent salary. The higher their salary the more valued they feel within the organisation and so the more likely they are to work hard in their job and be motivated in their work.
Cash awards can be a very effective way of motivating employees to meet targets and excel in their work. McGregor’s theory of the reasons why people work shows that using these sorts of ‘carrot’ methods of motivating employees are often successful with the Theory X type workers who are only motivated by money and do not seek responsibility or enjoy work. However cash awards are less of a motivator for the Theory Y worker who can enjoy work and have many different needs, which motivate them to work not just money such as seeking responsibility or having a meaningful interest in the work.
Herzberg’s two-factor theory splits factors people work into two groups, Hygiene factors and Motivators. Hygiene factors are those that satisfy workers but in no way motivate them these include working conditions, supervision and salary. This is a controversial theory because it says that money in the form of a salary is never a motivator and is only a hygiene factor. Herzberg’s theory lists the motivators as things such as responsibility, meaningful interest and recognition for work.
In my opinion money is a key motivator for many who work, although everyone has their own motivators that vary from person to person. The main reason why many will begin work is for money to live a comfortable lifestyle although I do think that it is true that after a while this money becomes expected and so the employees are then motivated by other things these may include recognition for their work as being important or well done, another motivator may be increased responsibility and working hard towards promotion although this can then be linked to money being a motivator as they may only be working hard towards a higher paid position.
Maslow makes a very strong case in his pyramid model as to people’s motivations. He states that people possess five levels of needs that require satisfaction. As people’s basic needs are met, more in-depth issues motivate them. A person needs to feel as if their needs have been met at a lower level before moving upward. For example, a person will not be motivated by love until they have had both their physiological and security needs met.
Maslow’s Model
So in conclusion it is not always money that motivates, as although for a lot of people it is money that drives them this is not always the case. Money does however provide people with the ability to make choices and improve their quality of life. In order to motivate people, you need to find out what their wants are. It may be money, but this may not always be the case. People are motivated by a variety of items. It is the responsibility of the manager to find people’s individual wants. In order to have motivated workers it is important for a manager to try to meet and attempt to satisfy these needs in some way.