Understanding Theories Of The Financial Motivation Commerce Essay

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This hierarchy includes different kind of requirement of employee. In this point, Taylor's theory is much similar to hierarchy of the lowest and the fourth level on Maslow's theory. Moreover, Hall et al (2008) stated that McGregor has a theory that is similar to Maslow and Taylors' theory. In McGregor's theory, the theory x is about a kind of employees who are so lazy and lack of motivation. Furthermore, they are motivated by finance or money. Nevertheless, some staff is not motivated by money. They have aim and want to meet challenge. According to Hall et al (2008), these employees cannot only be motivated by money. Manager should use some non-financial motivation to encourage these staff. In short, a part of employee is lack of motivation and be motivated by money. The other employee, they are different from the first part of employee. They should be motivated by non-financial factor.

First of all, financial motivation is the most traditional way to motivate employee. Hall et al (2008) report Taylor's scientific management has similar theory for staff. In his theory, employees are motivated by financial factories. According to Hall et al (2008) Taylor promoted a type of management in his book in 1911, which is financial motivation. In addition, NetMBA (2010) report Taylor is the first man who theorizes financial motivation and strong way in business area. Ford Company is a good example, which used well financial motivation, of increasing output. According to TopSynergy (2011) in 1923, Ford Company use $2.6 hourly firstly; consequently, Ford's output was increase over 30%. Ford is the first company which using wage is higher than $2.5 in U.S. Moreover, Maslow's hierarchy has similar needs for employees. Hall et al (2008) stated the lowest and the fourth level of hierarchy is about employee's basic requirement in working. The lowest level is physiological needs, such as food, drink or rest etc. The fourth level is safety needs. For example, the job is safe or not. In addition, job has others security problem..

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In financial motivation, it is not only having salary increase. According Hall et al (2008), piece rate, commission, fringe benefits and performance related pay (PRP) are common financial motivations. RAO RAMA (2011) stated that piece rate is an old motivation. In addition, it is very useful for motivating employees, who are lazy and selfish. Commission is one way to motivate staff. According to Therainmakergroup (2005), commission often use in sale or product department of company. According to GM.com (General Motors Corporation) (2011), GM even used commission in its sale department in U.S. In 1987, sales volume of GM boom over 25% in one year, such as Chevrolet, Cadillac and Buick. Another motivation method is fringe benefits, which employee can use some series or goods of company. Encyclopædia Britannica (2010) reported many companies tend to use fringe benefits to motivate staff. For example, Sony (2011) state its staff is allowed to use car and product of company. It is free. Moreover, PRP is very similar to commission. According to Hall et al (2008), staff has basic wage in his job. If staff wants to earn more money, they must achieve some targets in work. For example, PayScale (2010) report, in Siemens, staff of product department has a basic wage €980, but they make more 15 products, they can earn more €20.

However, financial motivation cannot encourage all of staff. In some statement, non-financial motivation is more useful than money. According to Hall et al (2008), Maslow's hierarchy stated some non-financial factor would affect staff. From the highest to the third level, these are analyses employee were motivated by what factor is, such as love, esteem and self-actualization etc. In McGregor's theory y, he thought some staff is not motivated by fiancé. They have others reason to do their job, such as dream, challenge and aim etc. According to NetMBA (2010), staff has more non-financial needs for company and their job. Scorecard Metrics for HR (2011) state non-financial motivation is very important to a large company. According to Toshiba official website (2011), Toshiba is very good in non-financial motivation. In 1994, Toshiba start to collect suggestion from its employees. Furthermore, manager give staff more right to make decision. In this year, Toshiba research 3 more new products. Similarly, Businessballs.com (2010) report that theory y is about staff, who is not lazy and have aim and dream, they cannot motivate by only financial motivation. This staff has so strong motivation and enjoys their job. For example, famous game companies Blizzard Entertainment's staff all of enjoy their job and manager makes sure it. According to Blizzard official website (2011), manager would make sure every staff to be a game player and enjoy playing and making game before hire every staff. Every employee can join in every meeting and have right to make decision.

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In non-finical motivation, it has many different ways to use non-financial motivation. According to Hall et al (2008) job design, job enlargement or job enrichment, empowerment or quality control circles and achieving a work-life balance, these are usual way of non-financial motivation. The first one, BusinessDictionary.com (2011) expound that employee have right to design their job and do not need to worry about too many force works. For example, Goldman Sachs Company is very large investing company. According to Goldman Sachs official website (2011), its staff has enough right to design their job, especially trader. They can design invest different share or stock. They do not need to follow manager's decision.

Secondly, job enlargement or job enrichment is a so common motivation. According to Management-Hub.com (2011), manager offer more work or decision, because manager trust their employee. This act will make staff feel motivation. For instance, Smith & Wasson Handgun Company (2011) state that manager would offer new object to firearms engineers. These engineers will hand in their blueprint to manager. Manager would make decision which is suitable for this object. In other words, every staff have chance to be successful. In addition, engineers can do more interesting things, it is not only check product and sit in office, but also have more chance.

Thirdly, empowerment and quality control circles, According to Impact Factory (2011), empowerment is that manager gives more right to make decision in company. Staff is not only listening to order. In other words, employee are not tool or machine, they can make decision by themselves. For instance, According to Blizzard official website (2011), manager gives enough free time to its staff. Every employee can join in every meeting and have right to make decision. Every staff has power to affect their company.

Finally, achieving a work-life balance that according to Hall et al (2008), it means staff should balance their life between work and life. It is not working in workplace. For example, Canon company always courage their staff taking rest. According Canon official website (2011), Canon staff holidays is more than other firm 15 days per year. Manager courage that employee should take rest. It makes staff have more motivation in working.

In short, motivation is really important to every company. Firm should contra pose different staff and use different motivation. Staff who is lazy and do not want to take more responsibility. It is suitable for using Taylors' theory and McGregor's theory X.

They can be motivated by money, such as piece rate, commission, fringe benefits and performance related pay. Another kind of staff has dream and aim. They are so motivation and enjoy their job. They should be used McGregor's theory Y. They cannot be motivated by only money. Manager could should non-financial motivation, such as job design, job enlargement or job enrichment, empowerment or quality control circles and achieving a work-life balance.

Reference Section:

Blizzard Entertainment (2011) Requirement of Hiring website:

http://us.blizzard.com/en-us/company/careers/ (Access date: March 19, 2011)

Businessballs.com (2010) Douglas McGregor-theory x y website:

http://www.businessballs.com/mcgregor.htm (Access date: March 19, 2011)

BusinessDictionary.com (2011) Job Design website: http://www.businessdictionary.com/definition/job-design.html

(Access date: March 19, 2011)

Canon official website (2011) For Work website: http://www.canon.co.uk/For_work/ (Access date: March 19, 2011)

Encyclopædia Britannica (2011) Fringe Benefits website:

http://www.britannica.com/EBchecked/topic/220399/fringe-benefit

(Access date: March 19, 2011)

GM official website (2011) Inside The Company website:

http://www.gm.com/corporate/ (Access date: March 19, 2011)

Goldman Sachs official website (2011) Growth and Flexibility website:

http://www2.goldmansachs.com/careers/your-career/growth-flexibility/index.html

(Access date: March 19, 2011).

Hall, D et al (2008) Business Studies (Fourth Edition). Ormskirk: Causeway Press Ltd.

Impact Factory (2010) Empowerment website: http://www.impactfactory.com/p/empowerment_skills_training/snacks_1215-5103-69551.html (Access date: March 19, 2011)

Management-Hub.com (2011) Facilitating Job Enrichment & Enlargement in HR Management website: http://www.management-hub.com/hr-enrichment.html

(Access date: March 19, 2011)

NetMBA (2010) Frederick Taylor and Scientific Management website:

http://www.netmba.com/mgmt/scientific/ (Access date: March 19, 2011)

NetMBA (2010) Maslow's Hierarchy of Needs website:

http://www.netmba.com/mgmt/ob/motivation/maslow/ (Access date: March 19, 2011)

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PayScale (2010) Performance-Related Pay Models website: http://blogs.payscale.com/compensation/2010/04/performance-related-pay-models.html (Access date: March 19, 2011)

RAO RAMA (2011) Piece Rate System website:

http://www.citeman.com/13801-piece-rate-systems/

(Access date: March 19, 2011)

Smith & Wesson official website (2011) Design and product website: http://www.smith-wesson.com/webapp/wcs/stores/servlet/CustomContentDisplay?langId=-1&storeId=750001&catalogId=750051&content=11001 (Access date: March 19, 2011)

Sony official website (2011) Sony Department and Motivation website:

http://www.sony.net/ (Access date: March 19, 2011)

Therainmakergroup (2005) How You Can Better Motivate Your Employees website:

http://www.therainmakergroupinc.com/add.asp?ID=50

(Access date: March 19, 2011)

TopSynergy.com (2010) Henry Ford Motivation website:

http://famous-relationships.topsynergy.com/Henry_Ford/Motivation.asp

(Access date: March 19, 2011)

Toshiba official website (2011) Toshiba HR Contact website:

http://www.toshiba.com/tai/careers_contacts.jsp (Access date: March 19, 2011)