Remuneration Is the only Real Motivatr in Today's Workplace

Motivation in the workplace is a topic that has come under much scrutiny for many decades,

and for very good reason; the higher the worker’s motivation, the greater the productivity and

hence the more benefits it will bring to a firm. The concept of motivation has seen many men

come up with elaborate theories and breaking it down into further sub-categories; such as

intrinsic and extrinsic incentives. Remuneration as the chief source of motivation in a workplace

has been regularly debated due to its great importance in facilitating all kinds of lifestyle needs,

spanning from necessities such as survival to luxurious splurging. Managers therefore often use

money as reward (pay-for- performance) to motivate their employees, but depending on the

situation, it may or may not be the best method. This essay will elaborate further on the various

classifications of motivation as well as the role that money plays. Remuneration is one of the

most important motivators but it is not the only one, as factors such as workers’ personality

and position in the organization can change its importance to them.

Motivation is often dissected into two further classifications; intrinsic and extrinsic motivation.

The main difference between the two is in the source from which they are derived. For intrinsic

motivation (such as taking on additional responsibility because you enjoy it), the process of

doing the activity itself, or also the completion of it, brings one immense personal satisfaction.

The source of motivation here is thus derived internally from within oneself, and one will

actively seek to complete objectives or achieve goals for his own sake. On the other hand,

extrinsic motivation, in short, serves as a means to satisfy exterior needs. For example, a

deadline set by a boss for a project or a monetary bonus promised for completion of said

project by the deadline, or fear of failure to complete obligations on time. Following these

definitions, remuneration is therefore classified as an extrinsic motivation (Frey & Osterloh,

2002).

Money is highly desirable because it serves as an instrument through which various needs can

be satisfied; such as purchasing various lifestyle necessities or luxury items. Due to this, it is

easy to see why money is regularly argued by some to be the only source of motivation.

Without money, we are unable to achieve many of our needs and wants. Maslow (1943) talked

about a hierarchy of needs that materialize in chronological order; physiological needs, safety

needs, social needs, esteem needs and finally followed by self-actualization. One has to first

satisfy his physiological needs, such as eating and survival, before the other needs will start to

appear. In the modern day society’s workplace, this is usually true for most employees,

especially those that have only just started working life, or those who are lower in the

company’s hierarchy. Money is a scarce resource to them, so it would not be surprising to see

these employees being motivated primarily or only by money. It is their only means for survival

so their focus is to earn as much income as possible.

When a worker begins to earn larger amounts of income, his motivation can shift. Herzberg

(1966) came up with a “two-factor theory” and spoke about the distinction between not being

dissatisfied and actually being satisfied with the job, and that they were not equal. He coined

the terms “Motivators” and “Hygiene factors” and used them to explain this concept. Hygiene

factors (such as money) decreased dissatisfaction whilst motivators increased satisfaction. He

stated that examples such as achievement, recognition for accomplishment, challenging work,

increased responsibility, and growth and development were motivators while hygiene factors

were policies and administration, supervision, working conditions, interpersonal relations and

money, status and security. In today’s workplace, the incentives under motivators can be seen

more prevalently in people who are higher up in their organization’s hierarchy, as they have the

ability to afford to do so. As they climb up the ladder of power and earn more money, they may

start looking more towards those intrinsic motivations in their work. This goes along well with

the previously mentioned Maslow’s hierarchy of needs; as a lowly employee, money is the only

motivation as it is required for survival, but as one climbs higher in the organization, new needs

such as social needs, esteem needs, and ultimately self-actualization emerge (Maslow, 1943).

They then become motivated by the “true” motivators like achievement, recognition for