Financial Motivational Theory Effect On Business Commerce Essay

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Motivation has an effect on the output of business and concerns quantity and quality of production. Developed with humanity's increasingly education level, fair payment is not only the influential factor. Individuals' needs are different. In addition, employees are the best asset and no matter how efficient technology and equipment could be, it is no match of the positives and productive for staff (bizhelp24, 2010). Therefore, motivation is becoming increasingly significant in 21st century. Motivation can be divided into financial and non-financial rewards. Poor payment could lead employees to be inactive. Financial methods of motivation can be defined it by using money to arouse employees' enthusiasm (Dixon, G, 2011). Nevertheless, money is not the only way, which non-finance is also important. Non-financial motivation theory is using non-monetary factors. The important of motivation consist of Taylor's scientific Management, Herzberg's two-factor theory, job enlargement, team working, and quality control circles. (Dixon, G, 2011) This essay will analyze how financial and non-financial motivations determined to affect the worker.

Financial motivation includes Taylor's scientific management. Taylor's scientific management theory shows clearly that what will motivate workers, "a fair day's pay for a fair day's work." The pay is connected with the quantity of production (Taylor's, 1899). Workers will be motivated by receiving the highest wages through working in the most efficient way. For this reason, the more money employers received, the harder they will be work (123helpme, 2011). According to humenresources (2010), making researching about salary ranges easily helping a company motivation employees. For instance, one of the biggest supermarkets in UK, which called Tesco also use Taylor's scientific motivation theory to motivate their employees. "When I first started working for Tesco, my basic hourly price was £4.79, was better than any other supermarket in Britain." said the Tesco's worker. Employees get a pay rise after working with the company forĀ 6 months, and the company has a pay review every year to make sure they are keeping up with inflation and various factors. It means that after first year, basic hourly price rise to £5.55. In the 3 years employees been with the company, it has risen further to £5.84. Tesco is proud of staying the highest paying in Britain. (Ciao, 2006) In addition, in the sales marketing, salesperson takes a cut of percentage as profit. Therefore, there are money-changing hands. However, financial motivation also has negative effects, which trigger increasing health and quality problem. According to The New York Times (2011) Foxconn, the company produced Apple production, employees can earn as much as 2400 Yuan per month. It is a high pay in China. Although the overtime was always voluntary, at least 20 workers tried to suicide in the year of 2010. (Euforum, 2011) The reason for this is stress. Moreover, financial motivation could ensure the quantity of production instead of quality. Workers would likely earn a higher pay ignore the quality.

On the other hand, there are two famous non-financial motivation rewards, which are Hertzberg's two theory and Maslow's. It revealed that certain characteristics of a job are consistently connect with job satisfaction, which including the work and organization environment. (Accel-team, 2011)

Figure1: Learn How to Motivate Your Team (mindtools,2011)

In thetimes100 (2011), as can be seen in figure 1,(mindtools,2011) it is said that non-financial rewards can motivate employees to be more responsible and well organized. To support its growth, Tesco gives employees response for staff the motivation, which flexible and well trained with customers. It means that Tesco support their employees with various roles and at different levels to customers, which form customer assistants in stores to department managers. For this reason, workers are encouraged to work as efficiently as possible they can. Meanwhile, it is full experience for recognition, job satisfaction and target setting. It is not only an important way for company motivate the employees but also the growth of the company. Team working is an important way to motivated employee. Team working is setting up teams of 8 to 10 skillful workers and work out problems and discuss how to distributed the work together(hall et al ,2008). Google, one of the successful company in the world, which not just use financial theory to motivate employees, but also provide a reward target at a small team. Each team has different missions. At the final year, Google give reward which the most efficiency team. Rewarded can develop departments, free style of work, and company car. (Financialexpress, 2010) it is not only help employee easily to build friendship and a sense of belonging but also make the company operate efficiently, which finish to target in a short time. Nevertheless, teamwork defects some employees to have a feeling of powerlessness. While employee discussing with teammates, they will argue with each other may to frustrate an opponent. This will result in lose confident and power which reduce effectively in firm.

Compare with financial and non-financial theory, both of them have negative and positive effects. For example, Foxconn, not only 2400 Yuan per month salary was provided to employee, but also entertainments are offered for them such as swimming pool and touch-screen, computers. Foxconn tried its best to build a better workplace than what workers would afford on their own. (Euforum, 2011) However, it is confused that why nearly 20 workers want to jump down form a high building to suicide. According to (2011) is analysis regarding wage, working hour, healthy, safety, and Management system, the causes many include long working hour and too many people in one company. Therefore, company should really take care about its employees rather than just using theory to motivated workers.

In conclusion, according to the study of the non-financial (Hertzberg's two theory and Maslow's) and financial (Taylor's scientific management theory) motivation, there is no most suitable way to motivation workers, which means that companies should take action based on difference situation for motivation. Therefore, companies should combine financial and non-financial motivation theory to achieve the biggest benefit. However, with the case of Foxconn, companies should really care about employees, not just simply use financial or non- financial theory to motivate staffs.