"Managers who rely on pay to motivate their employees to higher levels of job performance will always be disappointed with the results." Critically evaluate this statement.

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“Managers who rely on pay to motivate their employees to higher levels of job performance will always be disappointed with the results.”  Critically evaluate this statement.

Organisational Behaviour

Organisational Behaviour Behaviour


Broadfield, A & Rollinson, D.  (2002).  Organisational Behaviour and Analysis: An integrated Approach, 2nd Edition, P.197, 203, 204, 209.

Kohn, A.  (1993).  Why incentive plans cannot Work, Harvard Business Review, September – October, P.54.  

Marsden, D & Richardson, R.  (1994).  Performing for Pay?  The Effects of ‘Merit Pay’ on Motivation in a Public Service.  British Journal of  Industrial Relations, 32, 243-261.

Retrieved on 15th October 2004 from: http://www.tutor2u.net/business/people/motivation_theory_taylor.asp

Humans are always affected by their surroundings.  Motivators try to overcome barriers, which stop people being motivated.  Certain theories suggest people work harder under certain conditions. (Broadfield & Rollinson 2002).  

One of the most adopted theories by managers, is Maslow’s Hierachy of Needs.  Maslow’s theory assumes that:

“human needs are inexhaustible: as one set of needs is satisfied, another rises in its place, which means that needs are arranged in a hierarchy.”  (Maslow, 1954).  

Maslow’s Hierachy, includes: physiological, security, affiliation, esteem needs, and self-actualisation.  Maslow believes that people start with security needs, and work their way up, until they reach self-actualisation.  

Maslow’s Theory suggests that the needs, which are satisfied no longer, have a motivational effect, which would relate to increasing pay.   Satisfying an employee in the short term, but in the future, their needs will increase.  (Maslow 1954).

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Critics have argued that Maslow’s theory is arrogant, meaning it is impossible to make generalisations about needs and strengths, because every individual is unique.  Maslow’s use of “armchair theorising” resulted in often-contradicted evidence.  His theory explains what motivates staff, but what does it motivate staff to do? Hopefully increase standard of work, output, human relations, resulting in completion of manager objectives. (Cullen, 1997).  

Herzberg’s Radical, and widely used Two-Factor Theory, avoids using the term “need”, and divided the work environment in to two main groups: “hygiene factors and motivators.” The Hygiene Factors simply assume that these are ...

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