Finance
that all companies wish not to happen in their firms. Money is often used for motivating, but it also addresses itself to human greed, which dulls the conscience and may lead to unethical and illegal behavior. Also money can motivate only those who don’t have money. Money would be a bad motivator for a person who has already crossed that line and expects much more than just money.
Karan Goenka College: NMiMS, Hyderabad Batch: 2012-2014 MONEY AS MOTIVATOR
There are various factors that lead to success of an organization. Some people might say that a good product or service is the main factor as it generates profit while some might think that innovation is more important. One very important factor that people tend to miss out is good staff. To have potential in the workforce, the organization needs effective human resource management. One of the crucial tasks in managing people is making them work efficiently. To deal with this job, a human resource manager needs tools: motivators. What are the effective motivators that the organization should use? The first answer that might come up in people's mind would be money. People usually think that monetary reward is a very good motivator. Actually, there are some drawbacks of using cash to motivate people. Using money as a motivator is like double edged sword. Though it can motivate employee to be a good workforce, it can make them greedy which might lead people to move away from organizational objectives. Moreover, there are other ways to motivate people which may give the same or even better results as using money. Money can buy almost everything people want, but only almost. There are many things that cannot be traded for money. Due to these weak points, money is not as good a motivator as it is viewed. Firstly, money can lead to bad or unethical performance. Money can really motivate people because, as we all know, money can buy satisfaction. Theoretically, workforces will perform better as they know that they will get more money from bonus or a raise. The problem is that in the real world, they do not perform "better" but perform to "look better" in their boss' eyes. Moreover, if the company implements this program for a long time, it might become company culture: money-oriented. Employees will only be concerned only about how to make more money. They might perform better as that can generate more earning but they will do something to get more money also. These "other things" are things
There are many motivators that can motivate workforces better than money. Money isn't the only motivational tool at your disposal. In fact, studies have found that non-monetary compensation is an even more important factor for many people. Money can be better motivator as it can indicate the status of the person. This statement is true but not for all situations. There are many people who gain respect from other people because of their good and honest habit though they earn little money. In the meantime, some who are rich but have bad reputation might be considered as dirty people or of a very bad character/ people of low caliber. However, there is another argument that an increasing salary is an indicator of success. It might be true but there are many things that can also lead to success such as more participation and more responsibility. If the company wanted their employees to perform better, instead of luring them with higher bonus which make them greedy, the company might give them more freedom to work, one of the ways to enrich jobs, or enlarge the scope of their jobs. To use these motivators instead of money, the company can save cost and also receive at least the same quality of result.
6
iNM - Magazine Vol. 4