Monetary Compensation

Research Paper # 62799

Business > Human Resources
Business > Management
Psychology > Motivation Studies

This paper discusses the use of monetary compensation as a motivation tool in the workplace and alternatives to monetary compensation to improve performance without increasing costs.

4,610 words () | 7 sources | APA | 2005 United States

Paper Summary:

This paper explains that motivation, defined as a force that affects behavior, influences behavior (1) by energizing, changing or initiating behavioral patterns, (2) by determining the behavior a person chooses and (3) by sustaining behavior or determining the individual levels of effort with respect to behavioral patterns. The author point out that pay appears to be a motivator in short-term situations but is ineffective as a long-term solution to reducing costs and increasing productivity. The paper concludes that, by implementing appropriate pay structures, incentive plans and motivation programs; management professionals may be able to shift the focus of employees from the extrinsic reward of pay to the intrinsic rewards of job satisfaction and recognition.

Table of Contents
Introduction
Motivation
Theories Related to Pay and Motivation
Research Conclusions
Incentive Plans
Non-Monetary Motivational Programs
Management Implications
Conclusions

From the Paper:

"A similar needs-based theory was outlined by Clayton Alderfer (1969). Alderfer condensed Maslow's five levels into three levels and designated them as his ERG theory. The first, existence needs, encompasses physiological needs as well as safety and security needs. Belongingess and external esteem needs make up the second level of relatedness needs. The third and final level, growth needs, consists of self esteem and self-actualization. This model is very similar to Maslow's as it is hierarchical in nature. That is, lower-level needs must be met before higher-order needs can be fulfilled."