Essay: Pros And Cons Of Financial Rewards To Motivate Employees In The Workplace.

You are required required to develop an arguable proposition on which to write an essay.

The purpose of this assignment is to develop/improve skills in writing, analysis, and argumentation in addition to adding to the depth of understanding about organizational behavior in the workplace.

Money and other financial rewards are a fundamental part of the employment relationship and can be used effectively in motivating employees. Discuss pros and cons of this argument.

Monetary Rewards and Employee Motivation

The behaviour that is depicted by the employees in an organization is studied with the help of organizational behaviour based theories. The interaction based levels between the employees and the management of an organization plays an important role in the successful study of organizational behaviour. The organizational behaviour related research is thereby conducted by three major ways which include, individuals in different organizations, behaviour of the organizations and different work groups. The study based organizational behaviour is thereby related to individual levels and group levels (De Wit et al. 2017).

The rewards and the incentives which are provided to different employees in an organization are able to provide huge amounts of benefits to the employers and the employees as well. The organization can thereby increase the motivation levels of employees by financial rewards that are provided to them. The levels of performance of the company are also improved due to the financial incentives which are provided to employees by the management. The analysis in the essay is related to advantages and the disadvantages which help in providing motivation to employees (Hogg and van Knippenberg 2017).

As discussed by, Güss, Burger and Dörner (2017), the monetary rewards which are provided to the employees play an important role in the improvement of the efficiency of employees in an effective manner. The rewards and the incentives that are thereby provided to the employees have an effect on the ways by which they are able to provide their services. The monetary based incentives are thereby hugely based on productivity based levels of the company in an effective manner. The optimal production based levels are thereby encouraged in an effective manner by providing the monetary rewards in an effective manner. The friendly competition based levels of the company can thereby increase in the organizational settings in order to operate in an effective and profitable manner. The different monetary rewards play a significant role in affecting the employee motivation based levels. The levels of motivation can thereby help in improving the profitability of an organization. The motivation based on monetary factors have major advantages in different modern organizations.

According to, Graham, Ziegert and Capitano (2015), the levels of motivation which is provided to employees are based on different types of the monetary motivation based activities can play a significant role in the improvement of the productivity of employees. Money can play an important role in motivating the employees who are a part of various companies. The pros which are relate to usage of monetary motivation of the employees are,

Pros of Monetary Benefits

Effectiveness – The employee effectiveness based levels can be increased by providing them with the different types of monetary rewards. The organizations are able to improve the productivity levels in an effective manner. The most efficient manner that can be used in providing motivation to the employees is thereby based on the monetary benefits.

Broad options – The usage of the monetary motivation is thereby based on the ways by which the company has huge number of options which can be used for the development of monetary incentives in an effective manner. Money can thereby be provided to the employees in the form of different gift certificates, special bonuses and cash rewards as well. The motivation that is provided to employees is based on the achievement of larger goals and the objectives (Colquitt and Zipay 2015).

Far reaching – The benefits that are based on money can thereby appeal to the different demographics and motivate employees in an effective manner. The advantage that is thereby provided to the employees plays an important role in increasing the productivity.

According to, Menges et al. (2017), the different types of monetary benefits which are provided to the employees thereby play an important role in productivity. However, the monetary benefits also have some major disadvantages which are as follows,

The significance of different monetary benefits plays an important role in the reduction of the major advantages that can be provided by different other benefits. The different non-monetary benefits that are provided by the company can affect the operations of organizations and employee work process as well.

The companies are sometimes unable to provide the appropriate monetary benefits to employees in an effective manner. The firm is thereby not capable of providing the best incentives to employees which can have a significant effect on operations of the company. The employees can be demotivated by the lack of proper incentives (Hui, Lee and Wang 2015).

The sense based on inequality which can be developed within the organizations can affect the employees in a negative manner. The different fiscal incentives which are offered to the employees are related to rewards which are provided to employees who show best levels of performance.

The organizations thereby need to develop fair structures of the developing different monetary incentives which can play an important role in the performance levels of the employees. The implementation based process of the plan can thereby play a major role in the ways of providing appropriate rewards to the employees. The management of the company can thereby create proper plans in such a manner which will be able to provide proper incentives to employees (TYLER 2014).

Cons of Monetary Benefits

Theories of organizational behaviour and motivation related to monetary benefits

Maslow’s Hierarchy of needs – motivation

As discussed by, Lazaroiu, G., (2015), the model based on Maslow’s hierarchy of needs is a motivational theory that is related to the psychology of the employees. The needs of employees can be fulfilled with the help of different hierarchies that have been described in the model. The fulfilment of these needs thereby play an important role in providing motivation to the employees. The levels of needs which have been described in Maslow’s Hierarchy are as follows,

Physiological needs – The needs based on this factor are mainly based on various biological or basic requirements of the employees. These requirements include, air, food, clothing, drink and warmth. The organization thereby needs to satisfy these needs in order to motivate the employees in an effective manner. The different monetary benefits which are provided by companies play a major role in the fulfilling these needs in an efficient manner. The company is able to motivate the employees in order to reach the next stage (Punnett 2015).

Safety needs – The safety based needs of different employees are also an important part of their effective work process. The various elements that are related to the safety needs of employees include, order, security, law and stability. These can be fulfilled by organization without the help of monetary benefits (Luthans, Luthans and Luthans 2015).

Love and belongingness based needs – After the successful fulfilment of the needs that have been described in previous levels the employees can be motivated with the help of the development of proper relationships within the organization. The different interpersonal relationships that are developed by the employees in an effective manner are a part of these needs. The monetary benefits fail to support these needs of the employees in an effective manner.

Self-esteem based needs – The needs that are related to the self-esteem of employees are divided among two parts which are, esteem for oneself and the reputation that is desired by the employees among others within the organization. The self-esteem of employees can be affected in a positive manner with the help of proper and fair monetary motivation. The company is thereby able to improve the reputation of successful employees with the help of effective rewards that are provided to them (Lu 2014).

Self-actualisation based needs – The realization which the employees have based on their effective growth based potential can further affect the work process. This realization is however helped in an effective manner by the monetary benefits that are provided to the employees. The employees are thereby able to learn their personal strengths with the help of effective recognitions and rewards that are provided to the employees (Moradi, Shekarchizadeh and Nili 2015).

Needs of Employees and Monetary Motivation

The analysis of the motivational theory and its various stages have been able depict that the different stages of Maslow’s model are not affected in a similar manner by the monetary benefits which are provided to the employees. The management can thereby think of implementing many other ways for the purpose of motivating the employees and increasing their levels of productivity as well. The over dependence on monetary benefits for motivating employees can also lead to the huge risk of losing effective employees due to the lack of proper offering of monetary benefits. The companies thereby need to provide higher levels of importance to the monetar6y benefits in order to operate in the industry in a profitable manner (Pentland and Hærem 2015).

Conclusion

The essay can be concluded by stating that the monetary benefits alone are not able to provide high levels of motivation. The different needs of employees cannot always be fulfilled with the help of monetary motivation in an effective manner. The management of different organizations thereby need to develop a positive environment within the organization in order to operate in the industry in a profitable manner. The different needs of employees can thereby be fulfilled with the help of various other techniques including monetary motivation.

References

Colquitt, J.A. and Zipay, K.P., 2015. Justice, fairness, and employee reactions. Annu. Rev. Organ. Psychol. Organ. Behav., 2(1), pp.75-99.

De Wit, F.R.C., Scheepers, D., Ellemers, N., Sassenberg, K., Scholl, A., Pickering, M.E., Windeler, J.B., Chudoba, K.M., Sundrup, R.Z., Norton, T.A. and Zacher, H., 2017. Journal of Organizational Behavior.

Graham, K.A., Ziegert, J.C. and Capitano, J., 2015. The effect of leadership style, framing, and promotion regulatory focus on unethical pro-organizational behavior. Journal of business ethics, 126(3), pp.423-436.

Güss, C.D., Burger, M.L. and Dörner, D., 2017. The Role of Motivation in Complex Problem Solving. Frontiers in psychology, 8, p.851.

Hogg, M.A. and van Knippenberg, D., 2017. Social Identifications in Organizational Behavior. In The Self at Work(pp. 92-110). Routledge.

Hui, C., Lee, C. and Wang, H., 2015. Organizational inducements and employee citizenship behavior: The mediating role of perceived insider status and the moderating role of collectivism. Human Resource Management, 54(3), pp.439-456.

Lazaroiu, G., 2015. Work motivation and organizational behavior. Contemporary Readings in Law and Social Justice, 7(2), p.66.

Lu, X., 2014. Ethical leadership and organizational citizenship behavior: The mediating roles of cognitive and affective trust. Social Behavior and Personality: an international journal, 42(3), pp.379-389.

Luthans, F., Luthans, B.C. and Luthans, K.W., 2015. Organizational Behavior: An evidencebased approach. IAP.

Menges, J.I., Tussing, D.V., Wihler, A. and Grant, A.M., 2017. When job performance is all relative: how family motivation energizes effort and compensates for intrinsic motivation. Academy of Management Journal, 60(2), pp.695-719.

Moradi, M., Shekarchizadeh, A.R. and Nili, M., 2015. Determination of Factors that Affecting on Motivation and Assessing their Impact on Employee Performance. Research Journal of Recent Sciences ISSN, 2277, p.2502.

Pentland, B.T. and Hærem, T., 2015. Organizational routines as patterns of action: Implications for organizational behavior. Annu. Rev. Organ. Psychol. Organ. Behav., 2(1), pp.465-487.

Punnett, B.J., 2015. International perspectives on organizational behavior and human resource management. Routledge.

TYLER, T., 2014. Interpersonal treatment, social identity, and organizational behavior. Social identity at work: Developing theory for organizational practice, p.155.