Does Money Motivate?

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Does Money Motivate?

        Many people believe that they are motivated by earning money, but this is not always completely true as there are many other factors such as the conditions of the workplace and the need to be appreciated. There are many arguments that are both for and against money being the key motivator in the workplace.

Some argue that being paid a good salary is important in attracting employees to a job and helps to keep them in the job. Although this money can become less of a motivator once the employee has been working for a time and the pay has become routine and expected. Although money may not be the only motivator in the workplace, it is the basis for the attitudes and behaviours of employees. If an employee feels they are being well paid and rewarded financially for their hard work and any extra effort, then they will be more likely to work hard and strive to gain these financial rewards. However if an employee is unhappy with the money that they are receiving for their work then it will be very difficult for them to be motivated in their work.

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        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 ...

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