The paper “ Employee Compensation in the Context of Theory of Needs, Expectancy Theory, Reinforcement Theory, Utilitarian and Libertarian Theories of Justice” is a thrilling version of coursework on human resources. Each compensation element possesses a behavioral purpose and aims at fulfilling a need, either physiological or psychological, and attaining a goal. According to Luthans (1998), motivation refers to a process, which begins with a psychological or physiological lack or need, which stimulates a behavior, which is aimed at an objective. Reward systems have the objective of compensating individuals for their skill, endeavor, accountability, as well as working conditions in addition to motivating them in order to improve performance.
There are three categories of behavioral science namely content, contemporary, and process theories, from which the four major behavioral wage theories emerge: Need-fulfillment, expectancy, reinforcement, and justice theories (Allen & Sawhney, 2009). The discussion concerns the four main theories as well as how they may influence compensation policies in contemporary organizations. The Four Major Behavioral Wage TheoriesNeed FulfillmentThe theory of fulfillment can be explained by Maslow’ s Hierarchy. All human beings' needs must be met.
They cannot be explored by an average person that performs their daily activities without reflecting on the reason they do those things. Abraham Maslow categorized five needs, which reveal why people behave the way they do (Daft, 2008). First are the basic needs. These are the physiological needs that have to be met before focusing on any other aspect of living, such as social life. These needs are required for sustenance and include food, water, and air among others. When an individual lacks one among these needs, he or she attempts to obtain them at any given cost.
When these needs are satisfied, the person is motivated. From the perspective of an organization, basic needs can be said to work breaks, lunch breaks, rest periods and wages too. The second fulfillment need is safety, which cannot be a motivating goal until the basic ones are fulfilled. These need concern about security, stability, and protection in interpersonal daily life events. The third need in the hierarchy is social needs. This is the need for love and affection as well as a sense of belongingness in relationships with the others in the organization.
Exemplars include teamwork, firm’ s softball outings, and workgroups. Research shows that the promotion of social interactions increases morale and productivity. Fourth is self-esteem needs; it is the esteem for the rest, that is, prestige, respect, and need for recognition because everyone wants to always be praised for his or her performance in the organization. This motivates them in working harder for the organization. The last need in the hierarchy is the self- actualization need. This is the need to fulfill one’ s goal in growing and using his/her abilities maximally and being more creative.
That can be further explained as a promotion after graduating, which offers happiness to the intended person (Allen & Sawhney, 2009). Maslow’ s theory increases workers’ motivation due to the fulfillment of all the hierarchical needs. Therefore, remuneration to employees is often increased due to high productivity brought about by the motivation of the employees.