Minimum wages employee’s motivation - Literature Review

BUSINESS RESEARCH AND
REPORT WRITING
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Minimum wages employee’s motivation
Literature Review
Introduction
To maintain excellence and compete, global firms must recognise that the role of
employees are key drivers behind every industrial activity and thus they must give special
attention and effort while considering employee motivation. Besides, need, feelings and
expectations can significantly affect employee motivation, commitment and love for their
job. This literature review will analyse reasons behind employee motivation and how
minimum wages employees perform in their workplaces. This report has been prepared after
analysing literature present in pee-reviewed articles to establish reasons about how
employees can develop and enhance job capabilities more optimally by organisations and to
find whether minimum wages employees gets motivated to work more or not.
Discussion/analysis
Wages and other compensation received in exchange of the contribution made
towards the organisation act as a counter-achievement received by the employees. Wages can
also be considered as rewards offered by organisations to their workforce, however, the
influence of low wages on job satisfaction in the research made by Umar (2014) shows that
wages have significant impact on industrial workers motivation level. The author conducted
an empirical study of populations in the industrial area of Makassar’s operational employees
working in 20 manufacturing industries. The sample collected by the author includes 300
workers surveyed data that is been interpreted through model data analysis and conceptual
framework using Structural Equation Modelling.

Umar (2014) reveals that wages, job satisfaction and employee motivation
significantly influence employee’s performance within manufacturing industries which
indicates that job satisfaction affects motivation among employees positively. After
conducting the research, the author suggests that appreciation may significantly affect
motivational levels among employees and act as a positive influence on workers motivation,
but wages act as prime motivator that motivates them to work more. The research conducted
by the author can be related more with Goal theory that explains how achievements or
performance of employees depend upon motivational factors while performing their job and
higher is the employee motivation, higher will be the job performance.
Another similar study has been undertaken by Sule, Amuni, Obasan, & Banjo (2015)
where the authors claim that salary or wages is mandatory by law as it is the key instrument
of motivation for the employees that keep their soul and body together and makes them one
of the organisation’s stakeholders. It can be noted here that if employees become organisation
stakeholders, they will always seek ways through which organisation survives and develops
in sustainable manner. This notion further challenges organisations to motivate their
employees as it might influence workers performance greatly and thus, to achieve
organisational objectives, many global company managers seek different ways that can
justify the existence of the employees in the organisations. The authors carry a pilot study to
justify their claim concerning vital strength of adequate wages and how labour turnover can
be reduced after making a pilot study.
The study conducted by Sule, et al. (2015) majorly indicates management theories and
find that wages have not been considerably mentioned as a significant tool which can affect
employee’s morale while performing in a workplace environment in Nigeria. Furthermore,
the economic hardship has made many employees suffer but keep smiling at work even when
they were not remunerated adequately and therefore, they pretended that they might need to