Financial reward as an external motivation
Posted: Thu Jan 23, 2025 8:26 am
Financial incentives, including salary (rate, profit share, cash bonuses, stocks) and additional benefits (paid vacations, health insurance, reimbursement of expenses for using a car or mobile phone, etc.), are external positive motivation, as they directly satisfy various needs of the staff. Material rewards can be a goal that many employees strive for, as well as a means of achieving the required results or expressing the value of encouragement and recognition of success.
Some researchers in their works expressed jamaica mobile phone numbers database doubts about the effectiveness of monetary rewards as a motivational tool. Thus, F. Herzberg pointed out that external motivation through material stimulation is temporary. At the same time, the absence of financial rewards can lead to individual dissatisfaction.
Alfred Kohn believed that there was no scientific evidence to support the long-term impact of material incentives on employee productivity and quality of work. In his opinion, the more financial rewards are used to motivate employees, the less interested they are in the need to do what leads to receiving such benefits. In addition, A. Kohn argued that increasing the significance of material incentives leads to a stronger destruction of intrinsic motivation.
Financial reward as an external motivation
Source: shutterstock.com
Steve Jobs agreed that some people value money above all else, but in his opinion, those who become rich are talented, lucky, and not fixated on financial issues. Edwards Deming believed that monetary rewards, as the simplest management decision, are chosen by managers who do not have the knowledge and skills to manage internal motivation.
In assessing the importance of financial incentives as a source of motivation, the subjectivity of their perception by different people plays a major role. At the same time, a well-thought-out system of calculating wages, as well as a positive assessment by subordinates of fair, in their opinion, wages also play an important stimulating role.
Along with monetary rewards, external motivation of employees includes various non-financial methods of increasing employee satisfaction and productivity. In most cases, it is the skillful combination of financial and non-monetary rewards that provides a positive motivational effect in working with personnel.
Some researchers in their works expressed jamaica mobile phone numbers database doubts about the effectiveness of monetary rewards as a motivational tool. Thus, F. Herzberg pointed out that external motivation through material stimulation is temporary. At the same time, the absence of financial rewards can lead to individual dissatisfaction.
Alfred Kohn believed that there was no scientific evidence to support the long-term impact of material incentives on employee productivity and quality of work. In his opinion, the more financial rewards are used to motivate employees, the less interested they are in the need to do what leads to receiving such benefits. In addition, A. Kohn argued that increasing the significance of material incentives leads to a stronger destruction of intrinsic motivation.
Financial reward as an external motivation
Source: shutterstock.com
Steve Jobs agreed that some people value money above all else, but in his opinion, those who become rich are talented, lucky, and not fixated on financial issues. Edwards Deming believed that monetary rewards, as the simplest management decision, are chosen by managers who do not have the knowledge and skills to manage internal motivation.
In assessing the importance of financial incentives as a source of motivation, the subjectivity of their perception by different people plays a major role. At the same time, a well-thought-out system of calculating wages, as well as a positive assessment by subordinates of fair, in their opinion, wages also play an important stimulating role.
Along with monetary rewards, external motivation of employees includes various non-financial methods of increasing employee satisfaction and productivity. In most cases, it is the skillful combination of financial and non-monetary rewards that provides a positive motivational effect in working with personnel.