𝐃𝐨𝐞𝐬 𝐦𝐨𝐧𝐞𝐲 𝐦𝐨𝐭𝐢𝐯𝐚𝐭𝐞?
𝐃𝐨𝐞𝐬 𝐦𝐨𝐧𝐞𝐲 𝐦𝐨𝐭𝐢𝐯𝐚𝐭𝐞? Students of business studies usually begin their course with asserting that high pay motivates employees. As the course develops they discover more research and theories that challenge that belief.
𝐇𝐞𝐧𝐫𝐲 𝐅𝐨𝐫𝐝’𝐬 𝐞𝐱𝐚𝐦𝐩𝐥𝐞 Although the production line for the Model T - Ford was a profitable success, the soulless monotony of mass production created an annual Labour turnover of 350% for Ford. Ford doubled his employee’s pay from $2.25 a day to $5. Not enough Yet, Ford sensed that money alone would not satisfy his employees, let alone motivate them. Simultaneously, he reduced the working day from 9 hours to 8, which proved to be a significant advantage in an era when most employees worked a 60 hour week.
𝐇𝐞𝐫𝐳𝐛𝐞𝐫𝐠’𝐬 𝐭𝐰𝐨-𝐟𝐚𝐜𝐭𝐨𝐫 𝐭𝐡𝐞𝐨𝐫𝐲 Herzberg’s research led him to conclude that pay was a satisfier rather than a motivator. Low pay prompted employees to seek higher paid employment. Well-paid employees were content with their position but good remuneration did not motivate them to work harder.
𝐌𝐚𝐬𝐥𝐨𝐰’𝐬 𝐡𝐢𝐞𝐫𝐚𝐫𝐜𝐡𝐲 𝐨𝐟 𝐧𝐞𝐞𝐝𝐬 Findings from Maslow’s research suggested that employee’s motivations changed as their career developed. Initially, employees were satisfied with employment that enabled them to have shelter and meet their basic physiological needs. Ultimately they sought status and self-actualisation from their work.
𝐌𝐢𝐧𝐞𝐫𝐯𝐚 𝐓𝐮𝐢𝐭𝐢𝐨𝐧 If you would like to receive assistance with business studies or economics, Minerva Tuition has teachers who would be delighted to help.
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