Money Is The Biggest Motivator Commerce Essay

coin Is The Biggest Motivator Commerce EssayMoney is the biggest motivator of volume at the break awayplace. Most great deal are do by bills. correspond to Alison Griffiths, journalist of Metro Canada, survey showed that 53 percent of cosset boomers in Canada did compliments to earn much cash while 32 percent of them did plan to open a own business after privacy to earn more property too. Besides that, Reuters (2012) similarly stated that 31.4 percent of Americans aged from 65 to 69 were still working in year 2010, compared to year 1990 with a lower percentage which is 21 percent. These showed that Baby sweep throughers value property as an master(prenominal) motivation factor. For example, A Generation X employee tells a Boomer passenger vehicle that he had been working too hard and request for taking an off for family vacation. Instead of adage thanks, the Boomer replies, I work to get ahead, to get a packaging, not for a vacation. The Boomer manager then gave the employee a bonus, rather than a vacation (Hammill, G., 2005). In contrast, Generation X seek a work-life balance where they go forth take less bills if they are given opportunity to work lesser hours and have snip off to spend with family or take a vacation. For them, money act as an incentive or recognize but it does not add value to the moving in. Whilst, Boomers are attracted to office staff and flush more money rather than placing value on vacation time or flex time. According to Mcshane (2010), Generation X and Generation Y employees expect a more egalitarian workplace. For them, money is an profound factor but it is not a standalone. A study by Accenture consulting firm found that 50% of middle managers were interested in virgin job that provide benefits much(prenominal) as more time off rather than more pay (Williams, R., 2010) Thus, money is precise important to employees for number of reasons. I hard intrust that money is the major and biggest motivator a t the workplace. Some of the motivation theory model likewise explains the importance of money as a major motivator factor such(prenominal) as Maslows inescapably Hierarchy Theory, ERG Theory, Equity Theory and etc.2.0 ContentMaslows unavoidably hierarchy theoryAccording to Maslow, the to the proudest degree basic needs on the needs hierarchy had to be satisfied before the next train of needs emerge (Mcshane, 2010). Maslow stated that mortal needs are arranged in a hierarchy from the lower level to the high level of needs. It separate individual needs into 5 levels which is physiological needs, guard needs, belongingness needs, measure needs and self-actualization. Money which is a basic needs for survival, as stated by Maslow, it is very important as money can get shelter, food, clothing, water and other(a) necessaries of life to satisfy individual basic physical needs such as physiological and security needs. As a head of fact, p use is motivated to work in the ag reement to receive economic rewards to meet his basic needs. Whilst, the organization services an individual to satisfy their basic needs by providing obedient salaries, benefits and good working condition. Besides that, the about general theoretical explanation for moneys importance is the fact that it is useful for obtaining many other things that we want and handle for because of its symbolic value (Davis, K. and raw(a)strom, J. W., 2002). Thus, money or pay did satisfy individual drives and needs. Company and organization such as Royal Bank of Scotland (RBS), Tesco, Kelloggs, Siemens motivates its workers by providing these basic needs wherever they create job (McShane, 2010). Furthermore, money or pay is frequently used as a standard used for likeness for social status and personal accomplishment (Davis, K. and new-sprung(prenominal)strom, J. W., 2002). In addition, money or pay can help an individual to acquire a higher level on Maslows motivational needs hierarchy, in cluding social esteem and self-actualization (Davis, K. and Newstrom, J. W., 2002). For instance, money can carve the path towards social recognition, making it possible for early retirement, a good education for ones children as healthy as free time for enjoyment. For example, a manager motivate his worker by raises his workers pay because the worker had done a good job. The worker felt he was reckon and rewarded as well as more security and was highly pleased with this recognition (Davis, K. and Newstrom, J. W., 2002). Hence, money or pay did push ones self-esteem as well as self-respect.ERG TheoryIn ERG theory, needs affect an individuals behavior as described by Maslow. Alderfers ERG theory reorganizes Maslows five groups into three which is mankind, relatedness, and growth (McShane, 2010). Existence needs are the selfsame(prenominal) as physiological and safety needs as Maslow. Relatedness needs are the same as belongingness needs as Maslow. Growth needs are the same as se lf-esteem and self-actualization needs. irrelevant Maslow, which only explained how people progress up the hierarchy, ERG theory also describes how people regress down the hierarchy when fail to fulfills a higher needs (McShane, 2010). In another word, Alderfer suggested that more than one needs whitethorn be operative at the same time. Likewise, assume that a nurse who is seeking a promotion because the promotion will raise her pay. This promotion will promote her to a head nurse position would help meeting the nurses needs for growth as well. After a prolonged wait, she learned that she was dropped from gain ground consideration. She becomes frustrated, disappointed, and concerned about her future. Her supervisor and her co-workers talk with her assuring her that other opportunities will occur and her value to other co-workers is immeasurable. After few days of feeling frustrated, she redirected her need for the promotion to the relatedness category and seems to enjoy her work and her colleagues. Furthermore, Alderfer also suggested that the failure to satisfy relatedness or growth needs will cause renewed interest in existence needs. For instance, this might increase the desire for more money or for expose working condition. Likewise, money or pay which is the factor of existence needs. It drives people to go to work for survival. Individual at the existence level who is given the opportunity to earn additional $100 will be more motivated compare to someone earning $100,000 per year. This can be explained with McClellands theory which low achiever view monetary reward as an end in itself while high achiever view monetary reward as symbol of success or achievement and feedback about job performance. In contrast, the importance of money or pay is indeed a strong motivator. It ensures an individual primary needs to be met as well as providing security and personal growth and development as the worker is assign to perform more responsibility on the job. Ot her than achievement, money can be use to buy affiliation and power. For example, people can use money to buy their way into expensive clubs as well as good-looking them the capacity to influence others such as through political contributions. Furthermore, money or pay is classified as a hygiene factors in Frederick Herzbergs motivator-hygiene theory. Herzberg suggested that manager first must improve the hygienic conditions of work before trying to increase motivation. Negative hygienic conditions distract employees because they are necessary for building a foundation on which to maintain a reasonable level of motivation in employees. Therefore, the role of money or pay must not be ignored.prediction TheoryAccording to Victor Vrooms Expectancy theory, the theory stated that work effort is directed toward behaviors that people believe will lead to desired outcomes. That is, people are motivated to achieve the goals with the highest expected payoff. For example, a person may be a h igh-performing employee because he believes that this will lead to a merit increase in pay. This means that an employee must want more pay or money which is valence, must believe that effort will be made in producing desired performance which is expectancy, and must trust that the monetary reward will follow better performance which is instrumentality. Most employees do respond to money as a reward. For instance, a person may prefer a 10 percent merit increase rather than transfer to a new department. Thus, money often has high valence. Likewise, pay or money also plays a larger role in applicants job choices. That is, a level of pay must be met before an individual will even consider accepting a job offer. Company that offer starting salary or pay below the market range will not even being considered by the applicant. In another word, money can attract employee as well as retaining the employee such as offer high salaries and increased variable pay.Equity TheoryIn equity theory, the equity principle infers that people should be paid in proportion to their contribution. The theory posits that individuals evaluate the fairness of their pay by study their own ratio of inputs and outcomes to the input and output of other person such as close coworkers, workers in other companies, or the employees past work history. In addition, the theory predicts that an individual who perceives his raise to be inequitable is likely to change his behavior in several ways like expressing dissatisfaction to his supervisor, working harder to get a bigger raise next year, working less to bring her inputs in line with his perceived outcomes, or even quit the job in disgust. Hence, money or pay level clearly becomes important as an outcomes perceived by the employees in exchange for their services. For instance, it will affect employee behaviors if it is cut. As such, employees are on high alert and sensitive for every time employers make pay changes. It reflects differences in how the employees are regarded or value by the employer. In another word, employees react strongly to changes in pay. An example of employee reaction to underpayment shabbiness occurred in a manufacturing plant that the company cut 15 percent pay of all employees because some important contracts were canceled. The affected employees reacted by doubling their normal theft rate by stealing tools and supplies from the company. derangement rate also increased from 5 percent to 23 percent. In particular, underreward seems to produce motivational accent with negative consequences. Hence, pay was a symbolic scorecard to employee that they are overreward, equity or underreward.3.0 Recommendation base on the above theory and facts, in emphasizing the importance of money as the biggest motivator, we are not saying that money is the only important motivator but money play a key role in motivating people especially among the low achiever. Indeed, it is clear that many other factors such as intere sting work, participation in decision making, flexible working hour and etc are also important motivator to many people. However, in order for money to be the biggest motivator, pay or money has to be used in a way that would produce motivation such as incentives or bonuses that boost the morale of the workers by performing better performances. This is simply because money acts as a chemical mechanism for rewarding and modifying behavior in industry. It is an extrinsic reward that encourages people to work harder, more energetically as well as motivate the employee to achieve higher level of performance. Furthermore, the effectiveness of money as a motivator depends on variety of individual and situational factors. Each individual has different perception, preferences, expectancy, and self-concept toward money. Thus, manager has to talk to their employees to check and find out which needs or preferences a particular employee is seeking.4.0 ConclusionIn conclusion, we strongly beli eve that money is indeed the biggest motivator in the workplace. Based on the points and statements above, we can clearly see that money is indeed the important factor that motivates people at the workplace. Money is regarded as a very high reward for the individuals that have worked hard for it. It is also regarded as the highest form of reward for employees. The higher the pay grade, the higher the recognition they receive from their employers as well as from the working mates. Finally, we conclude that money is indeed the just about important factor that motivates individuals at the work place.(2001 words)5.0 ReferencesMcShane, S.L. and Glinow, M.A.V. (2010) Organizational Behavior. 5th ed. New York McGraw Hill.Luthans, F. (2008). Organizational Behavior. 11th ed. New York McGraw Hill.Gibson, J.L., Ivancevich, J.M., Donnely, J.Jr. and Konopaske, R. (2003) Organizational Behavior Structure Processes. 11th ed. New York McGraw Hill.Newstorm, J.W. and Davis, K. (2002) Organizational Behavior Human Behavior At Work. 11th ed. 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