Money as A Motivating factor

(An analysis of the case study)

Submitted to: Ms. Lisha Diwan

Submitted by: shailesh gururani

Does Money Motivate??

Most people will say money is a motivating factor which will have most influence on work performance. In any society, to determine the status of any person, money plays an important role. People generally perceive money as a standard. In my view, money is a hygiene factor than a motivator. When you pay less than some healthy level expected by people they start looking for another job. In organizational context, money doesnt seem to make people work better. As far as my observation money can make people happy not motivated, somehow they dont seem to be motivated better. Motivation and performance are very complex issues affected by many factors. No one factor can guarantee motivation or performance in the absence of other critical factors People should earn amount they expect or they get frustrated Well, yes, sort of. We come back to the discussion over a healthy level of salary. If I get paid above some expected minimum, which is a very individual thing, I would always want a hike in my

salary but I wouldnt get frustrated about money. However if you asked me how much I wanted to earn my answer would be likely something more than I get. Thats how humans work we always want more than we have. However I do agree that once we dont get the amount we expect theres always a risk that the other company would offer us more and then wed be really incentivized to make a move. I guess thats the risk most of companies tend to accept.

Times Changing In a very alarming and dangerous trend, getrich-quick is fast becoming the sole motivating factor for most of the urban youth and, parents need to counsel their children on this aspect before it spirals out of control. Money is an important factor for motivation to lead a luxurious life in todays world, moreover money is a indication of ones status in the society and primarily the society identifies any human being with amount of money he possess. Many eminent persons are rated based on their value that is in terms of capital, assets and resources which are converted to monetary

terms and graded and compared with other individuals of the same caliber.

People differ in great respects as not all the people are motivated through same factors. Some people value money more so to them money will play a significant role in motivating them, but on the other hand, some people perceive their values as more important so they will be driven more by other factors like giving them authority. In fact, to the latter kind of persons money can sometimes act as a demotivator as well. Some of the strongest motivators in the work place environment include the opportunity for personal accomplishment, growth, social relationships as well as cultural factors. Programs aimed at improving work motivation have taken a number of forms. Some have concentrated on enriching the work environment though providing opportunities for growth and to develop different skills. Some schemes have concentrated on rewards such as extra time off or increased pay for desired behaviour. Setting objectives and goals has worked as a strong motivation technique. Each of these techniques adds something personal to

each individual. However, some techniques work well with some people but not with other as different people have different motivating factors

Does the stand change due to age ??

Well, the answer is sort of Yes, As the age of a personnel increases, the money works less as a motivator in that persons life. I think there is a negative relationship between the growing age and money factor working as a motivator. When a management graduate joins an organization as a fresher, he will certainly go for a bigger package and will stick to that organization till he thinks he is getting enough. For instance, if there are two options for him to choose. One company is providing a bigger salary package and another is providing better status, it is more likely that this person will choose the company with bigger package because at this point of time in his life money will certainly play a significant role in his choice of the job. He will definitely remain loyal to the organization and will work effectively and efficiently till he finds he is compensated fairly well in the organization. If he thinks that he is not compensated enough for whatever he is contributing

towards the company it will hamper the efficiency of him and will be dissatisfied. As he grows older the money will cease to be a good motivator and is going to play a less significant role as a motivator. Now he is more likely to go for a status. Employees who are relatively new in their careers are interested in establishing a career path to greater pay and responsibility. Because of that, they generally are willing to work long hours and to sacrifice personal wants or needs in order to get ahead. Most older workers have been there, done that. The worker who is at or near retirement is motivated by a different set of needs. Those set of needs include recognition, retirement benefits, and security needs and many more. Ensuring that older workers still have opportunity to grow within the business and rewarding and recognising their contributions is important to ensure that they are happy at work. It is important not to assume older workers are motivated by money as they have the life experience which enables them to appreciate saving schemes and benefit programs. Implementing an effective benefit and reward program can boost the overall morale of older workers and give them reassurance that they are not excluded from the business.

These days the workforce is getting older and its causing a lot of old related changes in the workplace. We are also living healthier, and the percentage of older workers who need to work is growing and even they dont have to work, its just they want to keep themselves busy; 80% would say that they would work even if they were set for life- not to work for money but to stay active. Learning how to work with all the generations in the workplace is important for employers, but with a growing older workforce, its even more important that we examine what older workers actually want, as mentioned above, its not really about the money. Studies show following revealations:

A friendly environment 94% The chance to use their skills 94% The chance to do something worthwhile 91% To feel respected by coworkers 90% The opportunity to learn something new 88% The ability to help others 86% Adequate paid time off 86% Health care and insurance benefits 84% A flexible schedule 76%

To do something theyve always wanted to do 75%

Hence, we can say that money doesnt play a significant role in motivating old aged employees.