Impact of Reward System on Employee Motivation

Maslow’s theory of motivation is called the “hierarchy of needs”. Maslow believes that people have five main needs in the following order of importance;

Abraham Maslow’s theory, Theory of Hierarchy Needs, is a motivational theory in psychology that has a tier model of the five things a human needs. Maslow stated that people are motivated to achieve certain needs and that some needs take precedence over others. The five stages, from bottom to top, include Physiological needs( food, water, warmth, and rest), the second stage: Safety Needs ( security and safety), third stage: Belongingness and love needs ( intimate relationships and friends), the fourth stage: Esteem Needs (prestige and feeling of accomplishment), and finally the last stage: Self-actualization ( achieving one’s full potential, including creative potential). The five stage model can be divided into

As it was mentioned before, the key idea of Maslow’s Hierarchy of Needs theory relates to the existence of several sets of motivation and needs that govern human behavior. Hence, the major concepts of this theory include certain needs that are grouped into sets based on their place within the hierarchy of all the needs. The first version of the theory has five needs, which are divided into

Salaries play an important role especially in the first two stages of the hierarchy; we all need money to survive. Another theory is the Alderfer's ERG Theory; Alderfer has modified Maslow's hierarchy and has shortened the five needs into three, existence, needs, relatedness needs and growth needs, existence needs: refer to basic survival needs that everyone needs to satisfy. Relatedness needs: relate to interpersonal contact, social and emotional acceptance, status and caring. Growth needs: are development and sense of self worth. Herzberg’s Theory of Motivation Herzberg's theory of motivation is quite different than the other motivational theories. Herzberg stated that there were only to kinds of factors in any job, hygiene and motivation, the motivation hygiene model is based on the idea that one set determines dissatisfaction (hygiene) and the other set determines positive satisfaction (motivational theory). The hygiene set contains the company policy, administration, working conditions and job security. According to Herzberg’s findings he suggests that if these conditions were unsatisfactory they would most certainly be heading towards physiological or psychological withdrawal from the job. These conditions must be met for an individual to be motivated in work, however, other conditions and factors must be met, this proves that in order for an employee to perform his or her work in an

Employees are motivated by both intrinsic and extrinsic rewards. In order for the reward system to be effective, it must encompass both sources of motivation. Studies have found that among employees surveyed, money was not the most important motivator, and in some instances managers have found money to have a de-motivating or negative effect on employees.  This research paper addresses the definition of rewards in the work environment context, the importance of rewarding employees for their job performance, motivators to employee performance such as extrinsic and intrinsic rewards, Herzberg’s two-factor theory in relation to rewarding employees, Hackman and Oldman model of job enrichment that

In 1954, psychologist Abraham Maslow created a theory of a hierarchy of 5 needs that should be met before a person is complete (“Maslow’s Hierarchy of Needs”). He said that a person must fulfill each need before he could move onto the next one (“Maslow’s Hierarchy of Needs”). These 5 needs have been formed into a pyramid where the bottom identifies the

Biological and Humanistic Approaches to Personality Personality is a pattern of relatively unique characteristics and permanent traits. Personality has been not only studied but explained for many years and it has been linked to Maslow’s biological and humanistic theories. This author will use Maslow’s hierarchy of needs to discuss the extent to which growth needs influence personality formation; she will also describe biological factors that influences the formation of personality. This author will also examine the relationship of biological factors to Maslow’s theory of personality. Finally she will explain the basic aspects of humanistic theory that are incompatible with biological explanations of personality.

(a) For the Hierarchy-of-needs Theory, Maslow has set up a hierarchy of five levels of needs.

Employee equality, job security, and fair wages are considered some of the hygiene factors that exist in a workplace environment (O. Ferrell, Hirt, & L. Ferrell, 2009). Frederick Herzberg used these elements along with motivational factors to create a theory of motivation, known as Herzberg’s Two-Factor Theory.

So often we find that unsuccessful firms have staff that does not perform well according to their bad working conditions. The motivation factors include a sense of achievement, recognition, advancement, enjoyment of the work itself, the possibility of personal growth, and a sense of responsibility. Increasing job satisfaction and motivation and improving mental health, therefore, lead to increase productivity. Herzberg has called for attention to the need for increased understanding of the role of motivation in work organizations. He advanced a theory that was simple to understand and offered managers specific recommendations for actions to improve employee motivational levels. He also argued that money is not the most potent force on the job. According to this theory the most effective way to stimulate motivation is to improve the work itself. Herzberg argues that the most appropriate technique for building in motivation factors to enrich jobs. Job enrichment means expanding the critical functions and challenges of individual jobs (2/205). There are so many different ways to motivate employees. Employers can motivate their workers as individuals, groups, teams, or the organization as a whole. Motivation takes forms like offering rewards and employee recognition. Team-based reward systems have been raised as an issue in work management areas. Many employees prefer team-based reward systems to an individual approach. In a business journal in San Diego published an

Moreover, motivation occurs when a consumer has his/her need, desire, or wants something (Solomon, Polegato & Zaichkowsky, 2009). According to the theory of Maslow hierarchy needs, the needs can be divided into five groups: physiological needs, safety needs, love and belonging needs, esteem needs and self-actualization needs (Maslow,1943).

A monetary incentive can be described as a fiscal price given to top performers in a company. It is a fact that these top performers are an asset to the business and should be treated well for them to stay longer. The prize is awarded in the form of project bonuses, health insurance agendas courtesy of the company, program bonuses, profit sharing and paid vacation time among others. The bottom line here is to ensure that the company’s objectives are observed. As an organization, you cannot expect a worker with financial problems to concentrate on his job but once you take care of the problem and the employee is happy, the employer will gain, and this can be evidenced in the profits the company receives. The purpose of the assignment would offer a persuasive debate on the pros and cons of Monetary incentive plan from employee motivation perspective. Additionally, the paper would discuss two companies that have implemented successful motivation plan that does not involve Monetary reward or compensation.

The Hierarchy of needs theory is a formation of the needs of an individual person. Basically this hierarchy are based on five level which is classified into Physiological needs, Safety needs, Love/Belonging needs, Esteem needs and Self-actualization needs. It can be illustrated with a diagram 1.0 The Diagram of Maslow’s Hierarchy of needs.

Herzberg’s two-factor theory Psychologist Frederick Herzberg developed a ‘two-factor’ theory for motivation based on ‘motivators’ and ‘hygience factors’. Hygience factors are basic human needs at work. It do not motivate but failure to meet them causes dissatisfaction. The hygience factors

Being rewarded and recognised for their work or contribution is what keeps an employee motivated to work towards achieving the organisational as well as personal goals. When the employees is motivated by rewards, they will have job satisfaction consequently increasing the productivity of the organisation. It necessitates the need of managers to pay more attention in understanding their employees and come up with suitable types of reward systems for the organisation so that the employees are intrinsically and extrinsically motivated all the time. The hypotheses that I put forward here is to support this statement that effective reward management is critical to