Employees' behavior mostly will lead to positive or negative outcomes; therefore, motivated employees play an important role in the workplace. According to Linder (1998), motivated employees help organizations to be survival and adapt to the rapid changing business environment. The term of motivation could be defined to reword organization goals and satisfy the employees' needs. There are two categories of motivation theories: content theories and process theories. "Content theories describe the specific factors that motivate employees, such as Maslow's hierarchy of needs, McGregor, McClelland and Herzberg. And then, process theories which are concerned with the thought processes that influence behavior, for instance, Vroom and Porter-Lawler expectancy theories and Adam's equity theory" (Hall et al, 2008:374). Due to that there is an argument of that non financial motivation method plays litter impacts in the workplace, as a result of this, "a fair day's pay for a fair day's" work has been stressed its role in the workplace. Consequently, the objective of this essay attempts to exam a number of motivation theories associated with examples, including Taylor's scientific management, Maslow's hierarchy of needs and MaClelland's managerial needs. These theories attempt to provide an explanation of financial motivation and non financial motivation.
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In order to motivate employees effectively, Taylor's scientific management theory states that high wage is the main motivator, linking to the production outputs, and an employee is to do the job according to the payment got (Tutor2u.net, 2010). Thus, the central notion of Taylor's scientific management is that the payment should be linked to the workers' amount production, which "a worker should get a fair day's pay for a fair day's work" through the piece rates reward system (Hall et al, 2008). In order to make a more specific understanding of piece rate reward measurement in Taylor's scientific management theory, an example would provide below. Firstly of all, piece rate of pay is defined as a rate of pay per output or task (fairwork.gov.au, 2010). For example, "in a manufacturing plant, workers are paid 10 cents per widget they make on the production line" (lin.wa.gov, 2010). Although Taylor's motivation approach regarded as 'the best way' to motivate employees carrying out the jobs or tasks, there are still some problems, the notion of Taylor's scientific management motivation approach does not take into account individual differences (Hall et al, 2008).
Besides the financial reward of piece rate payment, fringe benefits also is defined as a way of motivating employees through satisfying the basic physiological and safety needs, because fringe benefits is a kind of payment in form of 'in kind' rather than in cash (Hall et al, 2008). Maslow's hierarchy of needs theory would be applied to explain the fringe benefits together.
Maslow's hierarchy of needs theory presented that in a workplace employees have a pyramid hierarchy of needs which employees need to satisfy their needs from bottom line to top line, including physiological needs, safety needs, love and belong, esteem needs and self-actualization (Hall et al, 2008). And then, Maslow's hierarchy of needs is divided into two categories: deficiency needs (physiological and safety) and growth needs (belonging, self esteem and self-actualization) (yourcoach.be, 2010). As mentioned above, Maslow's hierarchy of needs has been outlined as a way of fringe benefits motivation reward. Thus, according to Maslow's hierarchy of needs model, its implication for financial incentives is that "wages are part of the deficiency needs, serving as a measure of security, because employee will feel unfulfilled in their safety needs until they own it" (yourcoach.be, 2010). For example, health plan for employees in a company, all employees in Hero Honda Company are covered under the National Insurance scheme, and then there is four percent increase in productivity since undertaking a fitness program for employees in Canada Life Insurance Company (Srivastava, 2005).
Although the financial motivations have achieve a center positive outcome, there is a number of problems that financial motivation scheme leads to, such as poor quality of products or poor quality of working life, worse relationship among employees due to jealousy, and problems are resulted from that rewards is in line with team performance based (Hall et al, 2008).
Thus, in order to enhance employees' motivation in the workplace without considering the financial motivation approach, non financial motivation plays an essential role, because McClelland's states three basic needs for employees, which are the needs for achievement, affiliation and power (Hall et al, 2008). In this case, employers should give their employees' empowerment power to reward their working performance, encouraging their employees' ability to face and solve out the problems, for example, employees should have control over how to use their time and decide the priority of tasks that need to be done (tutor2u.net, 2010). And then, due to that employees with different needs are motivated differently, such as high needs for achievement through allocating more challenging project, not reward by increasing the employee's payment and high affiliation needs associating with a friendly cooperative environment (netmba.com, 2010). Therefore, training program could be applied into McClelland's managerial needs so that it could modify each individual' needs (netmba.com, 2010), for example, IBM's training programs have been designed to specific into four categories: software, system, E-learning and business and professional, so that these could modify each employees' needs (ibm.com, 2010).
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To sum up, firstly, financial motivation approach and non financial motivation approach both have been stressed their importance in motivating employees, so that the productivity performance could be improved. Secondly, to be more effectively motivating employees, employers should pay more attention to employees' needs, as discussed above, since in the same motivation approach, different theories consider different needs, for example, Taylor suggests money is the main motivator, however, fringe benefits in Maslow's theory suggest payment reward is not mainly in cash, it is in kind reward, like welfare. Finally, according to the above discussion, a suggestion will be recommended that both financial motivation methods and non financial motivation methods are the same important, a company should combine these two together when motivating their employees, so that the firm's best performance could be delivered through efforts of employees.