Employee Motivation: Is Money Key to Employee Performance?

This essay delves into the critical role of employee motivation in organizational success, exploring whether monetary compensation is the primary factor in attracting, retaining, and motivating high-performing employees. The essay begins by establishing the importance of employee motivation, highlighting its impact on productivity and goal achievement, and then discusses various motivational theories, including Taylorism, the Hawthorne Effect, the ERG Model, and the Achievement Motivation Theory. It analyzes the significance of money as an incentive and a means of meeting employees' needs, while also acknowledging the influence of other factors, such as work environment and employee satisfaction. The essay concludes that while money is a key component of employee motivation, it is not the sole determinant, and other factors such as communication and work environment play important roles. The essay provides insights into the complex dynamics of employee motivation and offers valuable perspectives for organizational management.

Running head: EMPLOYEE MOTIVATION
Is Money the Key to Attracting, Retaining and Motivating High Performing
Employees?
Name of the Student
Name of the University
Author’s Note:

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EMPLOYEE MOTIVATION
Introduction
Employee motivation is an important aspect at work place that can lead to better
performance of department and also for the entire organization (Dobre, 2013). Motivating the
employees requires to be a regular routine. There are various significant reasons for
understanding the importance of employee motivation. The main reason is that it enables
management for meeting the organizational goals and objectives (Lazaroiu, 2015). The
following essay outlines a detailed description of the topic that whether money is the key for
attracting, retaining and motivating the high performing employees within any organization
with proper details.
Discussion
Importance of Employee Motivation for Better Performance
The employee motivation is an internal and intrinsic drive for putting forth the
required effort as well as action towards the work related activities. This motivation is
broadly stated as the psychological forces, which determine the overall direction of an
individual’s level of effort and persistence (Shahzadi, Javed, Pirzada, Nasreen & Khanam,
2014). It is the willingness for expending energy for subsequent achievement of a reward and
goal. It is the summation of processes, which are responsible for influencing the direction,
maintenance and arousal of behaviours that are relevant to the work settings. The motivated
employees are important for the organizational success since motivated employees are
extremely productive at their respective work place. This motivation is the core impulse,
which any individual has in an activity for reaching the end goal (Njoroge & Yazdanifard,
2014). Several theories are present for motivating the employees since a well motivate work
force refers to a more productive work force.

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The various theories for understanding employees’ needs and motivational factors are
as follows:
i) Taylorism: As per Fredrick Taylor, it is important to understand employee
motivation (Ahmad, Abbas, Latif & Rasheed, 2014). This particular theory analyses the work
force productivity. This basic theory of motivation states that employees are derived and
motivated by money and monetary benefits. He has viewed his employees not only as
individuals, but also as pieces of a larger work force. The several individual tasks of the
employees are being emphasized in this scenario and this is done by supplying them with the
most significant tools and even by paying them on the basis of productivity (Njoroge &
Yazdanifard, 2014). Taylorism involves the core principles and practices of scientific
management as well as work efficiency as practiced within a specific system called the
Taylor System.
This type of management theory, which is responsible for analysing and synthesizing
the workflows. A better analysis, rationality, work ethic, waste elimination and efficiency,
standardization of the best practices, synthesis and logic for the protection of social status of
workers with subsequent set of skills (Ahmad, Abbas, Latif & Rasheed, 2014). A proper
transfer of knowledge within the workers is required for ensuring that every employee has
equal knowledge and is using their knowledge for the betterment of employee.
ii) Hawthorne Effect: This is the second significant theory of employee motivation. It
is a type of reactivity, where individuals modify as aspect of the behaviour in respect to
awareness for being observed (Cherian & Jacob, 2013). This was proposed by Elton Mayo
and hence the workers’ requirements will be improving the productivity. The environment of
the respective work place is being checked and analysed based on the Hawthorne effect and
the other changes like maintenance of clean work places, clearing mental barriers and also

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relocating the work stations can lead to increased productivity within shorter period. It helps
in identification of any type of short lived increment within productivity.
The entire motivational factor of an employee can be easily understood by this
particular Hawthorne effect. An internal state is being considered for making the major
outcomes or results appear attractive. The unsatisfied requirement creates a major tension,
which stimulates the drives in the person (Kim & Scullion, 2013). Each of these drives would
eventually generate a significant search behaviour for finding out of specific objectives that
when attained would fulfil the requirements and the lead to the tension reduction.
iii) ERG Model: The ERG motivational theory provides a major impact of three types
of human needs, which are existence needs, relatedness needs and growth needs. The first
and the foremost type of need is existence need that includes each and every physiological
and material desires like food, water, air, clothing, affection and safety (Naile & Selesho,
2014). This particular need is often termed as the most important need for any employee or
staff. An employee can be motivated by fulfilling this particular need and hence he or she
would be able to provide better effectiveness and efficiency to the work place and in the job.
The second important and significant type of need that is quite common for the employee is
relatedness need. This type of need encompasses the external and social esteem and the
relationships with other members like friends, family, employees and co workers (Kuranchie-
Mensah & Amponsah-Tawiah, 2016). It even refers to the fact that is needed to be identified
and then feel safe and secured as the part of a family or group.
The final type of need that is required for the motivation of employee is growth needs.
The self actualization and internal esteem eventually impel any individual for making the
most creative and productive effects on environment and himself or herself (Gupta & Shaw,
2014). The most significant example of environmental effect is to progress towards one’s

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idea self. This particular need involves desires that are much more creative and productive
and thus helps in completing the meaningful tasks. Although the major and main priority of
the needs eventually differ from person to person, the ERG theory of Alberger subsequently
prioritizes in respect to the concreteness of the categories. The first type of need is the
existence need, which is the most concrete as well as easiest for verification (Hauser, 2014).
The second type of need is the relatedness need, which is less concrete than the existence
need, being dependent on the relationship between two and more people and finally the third
type of need is the growth need, which is the least concrete within their respective objectives
and uniqueness of every individual.
iv) Achievement Motivation Theory: According to achievement motivation theory,
there are three needs that are required to be considered for understanding employee
motivation. These three needs include n ach or achievement motivation, n pow or power and
authority motivation and finally n aff or affiliation motivated (Shields et al., 2015). Acceding
to achievement motivation, an employee can seek achievement, attainment of the challenging
and realistic objectives as well as job advancement. There is a stronger requirement for
feedback for progress and achievement as well as a requirement for the sense of
accomplishment. The individuals with a higher requirement for achievement can seek to
excel and hence tend to avoid both the high risk and low risk situations. The high n ach
employees substantially work, which has a proper success probability and they either work
alone or with the other higher achievers (Elnaga & Imran, 2013). The second type of need is
the n pow and this specific person is authority motivated and the driver produces a need to be
influential, effective and even for making an impact.
A stronger need for leading the team and even for prevailing the ideas is important. A
significant motivation and need towards the professional prestige and status is required here.
The need for power could be of two different types, which are professional and personal. The

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individuals, who require personal power wants to direct others and this specific need is being
perceived as undesirable (Van Scheers & Botha, 2014). The final type is the need for
affiliation, where a person is affiliation motivated only when he has a need for the friendly
relations and is even motivated towards better interaction with the other people. Very few
people require this type of need in the organization and they tend to conform to the principles
of work group. The high n affil employees hence prefer working, which provides significant
personal interaction and they perform well in the client interaction and customer service
situations. The objectivity of a manager is being undermined and hence the decision making
process or capability of the manager is enhanced majorly (Dasgupta, 2013). Every similarity
and highly achievement focused requirements are determined for this purpose. This type of
motivation theory is responsible for providing better effectiveness to the overall productivity
of employee.
Significance of Money for Attracting, Retaining and Motivating High Performing
Employees
The organizational management must ensure that the employees are providing
individual efforts as well as contribution is being provided for improvement of operations.
The management requires to make an effort for taking some time for suggestions (Guo, Liao,
Liao & Zhang, 2014). The employees even want to see the organization that they are working
to succeed and the overall goals and objectives are being considered and they get engaged in
the work when they are aware of employees are creating the efforts after having a major
impact on the organization. A positive work place environment is extremely effective for
resolving the various issues. The lack of a motivated work place ensures that employees
might not be providing effective productivity and thus high level of output are not achieved
(Cherian & Jacob, 2013). The most significant advantages of motivated employees include

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increased employee satisfaction, improvised employee satisfaction, ongoing employee
development, and improvised efficiency of employees and many more.
According to Frederick Taylor, money is one of the major requirements for
motivating the employees. Money is an incentive for work motivation and it is the medium of
exchange as well as the means through which the employees could purchase the things for
better satisfaction of desires and needs. It even serves as a major score card by which the
employees could assess the core value that the company places on the services (Njoroge &
Yazdanifard, 2014). Money can act as a major motivator when the company is using it as a
basic reward for better performance and the employees could expect that the good
performance would be resulting in a monetary reward for value of employee. This type of
incentive is required for attracting, retaining and even motivating the high performance
employees.
The employees are identified as the most important asset of organizations. The
employee satisfaction is emphasized on one of the most significant drivers of continuous
improvements and the satisfied customers are enhanced in total quality management. The
work behaviour of the employees is vital for organizational success since the behaviour could
directly influence productivity and profitability (Kim & Scullion, 2013). Motivation could
come from an environment in which the employee behaviour and performance is being
enhanced. Moreover, the social needs and esteem needs are fulfilled for this purpose. Money
can motivate the lower order needs of the employees and it is the basic means for achieving
the needs. Thus, it is extremely important for the organizations to ensure that each and every
employee is getting proper pay and hence is being motivated without much complexity.
When the employees will be motivated, it is evident better production and productivity is
enhanced within the business. Moreover, the employees will have a strong willing to work at
the organization and hence reducing the chance of job dissatisfaction.

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Conclusion
Therefore, from the above discussion, it can be concluded that the employees are
required to be motivated. The easiest way to increment the employee motivation is by having
better communication at work place. Money alone cannot motivate an employee to work in a
better manner, however it is an important part for motivation. This is one of the key for
attracting, retaining as well as motivating all types of high performing staff. As per some of
the major theories of organizational behaviour, the employees’ needs should be identified
properly for gaining better knowledge of the employee productivity. The above essay has
properly outlined a brief analysis on the fact that employee motivation is required and it is not
based on any type of monetary needs.

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