Compensation Affect Employee Motivation? Motivations

¶ … Compensation Affect Employee Motivation?

Motivations of employees can have a huge effect on the health and reputation of any particular business. The employees are the face of the company, and if they are not motivated to do their job well, it is quite possible for a collapse of the entire organization. It is clear that organizations need to understand more about the workings of motivation within the workplace, "Since motivation influences productivity, management needs to understand what motivates employees to reach peak performance," (Marvel et al. 2007). One of the major factors in motivating employees is through means of compensation.

There are several major theories which posit concepts for the origin of positive and effective motivation within the workplace. One is the Expectancy Theory, in which "motivation depends on how much an individual wants something (the strength of the valence) relative to other things, and the perceived effort-reward probability (expectancy) that they will get it," (Jurkiewicz & Massey 1997). Here the concept of compensation comes directly into play, for it helps motivate how much the individual wants to work. The more one works, the more one is compensated for that work. Additionally, "The exchange is economic in nature and it is assumed that individuals will have expectations regarding the rewards they receive vs. The resources and time they must expend getting them," (Neff 2002). Thus, many workers are satisfied with only minimum effort because they perceive their rewards for that effort to be minimal. On the other hand, other employees go beyond what their job expectancy is in order to secure for them a more lucrative financial reward.

Another theory is that of Herzberg's motivational concept. Within the context of this, it is "theorized that motivation can be dichotomized into hygiene factors and motivation factors," (Marvel et al. 2007). Hygiene refers directly to the conditions of the work environment and motivation meaning the system of challenges and rewards. Creating a more facilitating work environment can then have a huge influence on the individual personal motivation of the employees (Amabile 1993). Increasing intrinsic motivational factors can have a great positive impact on the motivation of each employee within the organization (Spreitzer 1995). Such a move increases the perceived psychological power of the individual employee, making him or her believe that they are an integral part of the organization and such are directly involved in its successes and failures. Fredrick Herzberg believed that strong motivation can be channeled through providing challenging work in which each individual employee can assume a sense of responsibility in its formation and execution (Neff 2002). Challenging motivators and a feeling of ownership of their work helps to get employees excited about their work.