Role Perceptions: what the individual wants to do or thinks practices as means of motivation are that:

2. Role Perceptions: what the individual wants to do or thinks practices as means of motivation are that:

he or she is required to do. These are good from the view • they are, as far as possible, internally equitable as well as ‘Point of the organization if they correspond with what it

externally competitive (although there will always be a thinks the individual ought to be doing. They are poor if the

tension between these two criteria’- paying market rates may views of the individual and the organization do not

upset internal relativities);

coincide. ‘ • pay-for-performance systems are, created in the light of an

Conclusions on The Role of M oney as a M otivator

understanding that direct motivation ‘Only takes place if the oney is important to people because it is instrumental in

rewards are worthwhile, if they are specifically related to fair, satisfying a number of their most pressing needs. It is

objective and appropriate performance measures: if significant not only because of what they can buy with it but

employees understand what they have to achieve, and if their also as a highly tangible method of recognizing their worth,

expectations on the likelihood of receiving the reward are thus improving their self-esteem and gaining the esteem of

high;

others. • employees understand how the financial reward system Pay is the key to attracting people to join an organization,

operates, how they benefit from it, and how the although job interest, career opportunities and the reputation

organization will help them to develop the skills and of the organization will also be factors. Satisfaction with pay

competences they need to receive the maximum benefit. amongst existing employees is mainly related to feelings about

equity and fairness. E xternal and internal comparisons will form

Non-financial Rew ards

the basis of these feelings, which will influence their desire to Non-financial rewards can be focused on the needs most people stay with the organization.

have, although to different degrees, for achievement, recognition, responsibility, influence and personal growth.

Pay can motivate. As a tangible means of recognizing achievement, pay can reinforce desirable behavior. Pay can also

Achievement

deliver messages on what the organization believes to be Research carried out by McClelland of the needs of managerial important. But to be effective, a pay-for performance system has

staff resulted in the identification of three major needs, those to meet very stringent conditions as defined by expectancy

for achievement, power and affiliation. The need for theory. To achieve lasting motivation, attention has also to be

achievement is defined as the need for competitive success paid to the non-financial motivators.

measured against a personal standard of excellence.

Causes of satisfaction or dissatisfaction w ith pay

Achievement motivation can be increased by organizations Reactions to reward policies and practices will depend largely on

through processes such as job design, performance the values and needs of individuals and on their employment

management, and skill or competency-related pay schemes. conditions. It is therefore dangerous to generalize about the

Recognition

causes of satisfaction or dissatisfaction.

Recognition is one of the most powerful motivators. People need to know not only how well they have achieved their objectives or carried out their work but also that their achievements are appreciated.

Praise, however, should be given judiciously - it must be related to real achievements. And it is not the only form of recognition. Financial rewards, especially achievement bonuses awarded immediately after the event, are clearly symbols of recognition to which are attached tangible benefits, and this is an important way in which mutually reinforcing processes of financial and non-financial rewards can operate. There are other forms of recognition such as long service awards, status symbols of one kind or another, sabbaticals and work-related trips abroad, all of which can be part of the total reward process.

Recognition is also provided by managers who listen to and act upon the suggestions of their team members and, importantly, acknowledge their contribution. Other actions which provide recognition include promotion, allocation-to a high-profile project, enlargement of the job to provide scope for more interesting and rewarding work, and various forms of status or esteem symbols.

The recognition processes in an organization can be integrated with financial rewards, through performance management and pay-for performance schemes. The importance of recognition can be defined ‘as a key part of the value set of the organization and this would be reinforced by education, ‘training and performance appraisals.