Motivating Employees: Equitable Pay vs. Performance Scheme

Managing People And Organization

ORGANISATION BEHAVIOUR 1
This paper is about the different ways which an organisation is adopted to motivate
the employee for better performance. Equal Pay and Performance based method are the ways
from which the company motivates the employee to perform better. This paper is based on
the statement of “Providing equitable pay and meaningful work is a more effective way to
motivate employees than pay for performance schemes”. I am disagreeing with the statement
because better performers are always demotivated with the equal pay method. Meaningful
work is also important to motivate the employee to perform better in the workplace but at the
same time performance scheme is more appropriate and right way method.
Motivating the employee is a biggest challenge for the manager in the organisation.
Employee motivation is a key to achieve the success for the organisation but it is a fact that
the employees are more motivated with the rewards and compensations. Providing equitable
pay and meaningful work means to provide the equal pay and fair pay to employees. The
method of providing the equal pay is appropriate because it is necessary to provide the equal
pay to the equal position employees in the context of self-esteem (Equality and Human
Rights, 2018). It is observed that if the employees are not treated equally the performance of
employees getting down. As per the Maslow theory of Hierarchy of Human needs, the
motivation is the result of fulfilling the basic needs such as physical, safety, social, esteem
and self-actualisation. This theory states the satisfaction level of employees in the different
categories as per the hierarchy. In this hierarchy, the self-actualisation is in the higher level
which states the self-respect and equity. Equal pay is also a major concern in order to
motivate the employees. Equitable pay is the right way to treat the employee equally without
any biasness but it is also an in-appropriate way as per the best performers of the company.
There are many employees in the organisation performs well their performance but they are
treated same as the other employee then they gets demotivated.

ORGANISATION BEHAVIOUR 2
(Source: iEdunote, 2018)
Although, the method of equitable pay and meaningful work is appropriate to provide
the job satisfaction to the employees but it has some negative aspects as well. The employees
are getting demotivated by attaining the equal pay even by putting their more efforts in the
organisation. Motivation is a psychological process which is performs by the manager to
improve the performance of employees. The thoughts of the employees is change as per the
motivation, if the employees are treated equally even by putting more efforts then their
performance will goes down because they think to not put their efforts and attain the same
pay. Productivity of the employees is decreases as getting demotivated by the equitable pay.
The other negative impact of the equitable pay is decreasing the chances of employees
to stay more in the organisation. Employee retention is increases which is not beneficial for
the company in order to achieve the success. Equitable pay demotivates the employees and
encourages switching the organisation. The employees want to put their efforts in the other
organisation where they get the more advantage of their efforts in terms of rewards. Putting
the efforts in the other organisation helps them to achieve the success in the terms of money
and non–financial transaction. Reward system is an appropriate method for the best
performers to motivate them. The performance scheme method helps to identify the
performance of employees (Demirtas, & Akdogan, 2015).