The paper "Advantages and Disadvantages of Using Money and Other Financial Rewards to Motivate Employees " is a perfect example of business coursework. Human resource management in the 21st century is moving more towards behavioral management as opposed to the traditional model of management which was centered on the perception that employees are simply factors of production (Aswanthappa, 2005). The modern concept of managing human resource recognizes that employees are humans whose productivity largely depends on how motivated they are to work and deliver maximum efficiency at the workplace (Briscoe, Schuler, & Claus, 2008). Many practitioners may be of the opinion that money and other financial rewards are not necessarily very instrumental in motivating employees to deliver but rather job satisfaction and non-cash benefits are what motivates the modern employee in many workplaces.
However, it is not right to state so since the salary scale is used by many employees especially high achieving top talents as a tool to gauge their importance in the organization and also rank themselves amongst their peers (Edvinson & Camp, 2005; Marescaux, Winne, & Sels, 2013).
In light of this understanding, this paper seeks to shed more light into the debate on whether cash and other financial benefits are indeed effective in motivating employees and what are the benefits and disadvantages of using such instruments to motivate employees. Arguments for using cash and monetary rewards to motivate employees Need for achievement According to Maslow’ s hierarchy of needs, the fourth level indicates that humans need to feel appreciated and respected. This boosts their self-esteem and they hold themselves in high regard once they have fulfilled these needs. After an employee has received enough remuneration to solve his/her immediate needs such as food, housing, mobility and others, the focus then shifts to achieving benefits that boost his/her ego amongst peers.
Remuneration is one factor that has been used to describe just how worthy an employee is (Latham, 2007). Longenecker (2013) observed that well-paid employees are regarded as highly qualified and very essential employees to the organization. The employees also know this and are always enquiring to know how much their peers are getting so that they can compare with it. if an employee feels they are being underpaid not because they can't take care of their personal expenses but rather because their peers receive more, they are likely to feel less motivated to work and may consider moving to another place that appreciates their qualification and competence. The universality of money as a reward Many things in society are valued within the context of monetary value today.
What someone receives from the employer seems only important when its value can be quantified in financial terms. Some employees feel shortchanged when non-cash benefits replace monetary and financial benefits when companies want to motivate their employees.
This is true mostly for employees that receive just above average pay in different industries. Such employees may be still in need of better remuneration to improve their lifestyle and take care of their immediate expenses (Briscoe, Schuler, & Claus, 2008). Cash increment is, therefore, a very important factor to motivate them apart from job satisfaction and other issues such as work-life balance. For these employees, the only high impact strategy will be to increase their pay and is almost certain that their morale will be boosted.
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