This paper argues that money is a good motivator and stands against the claim that money cannot motivate employees. It also elaborates how money motivates the employees and increases their work efficiency. The paper utilises the Herzberg Two Factor Theory and Expectancy Theory while explaining the arguments in the favour and against the effectiveness of money as a good motivator.
The importance of money as a motivator over other factors has always remained to be a debatable issue. There are views that suggest the significance of money as a dominating motivator, whereas there are also some instances that provoke one to think about the other factors and their power to motivate people to work and perform in a better manner. The view that 'money cannot motivate employees' is based on the idea that employees can be motivated to work if the job enhances their satisfaction, social status, responsibility and achievement etc with the help of better working environment, company policies, promotion and growth prospects etc, rather than just money.
Herzberg describes this approach in the two factor theory (motivation and hygiene) which supports such a point of view. He elaborates that there are factors that in actuality lead to satisfaction (motivators) and other ones are the factors which preclude dissatisfaction (hygienes). ...Show more