Theories of motivation : the role played by salary and by non-financial incentives in promoting motivation in middle managers

Résumé du document

Motivation is one of the main concerns for companies. Motivation can be defined as the factor that enables a human being to accomplish a given objective. Companies have to find a way to enhance the motivating factor to increase its managers and employees' motivation levels. First, the company has to consider the factors affecting the goals and motivation. The workplace can split the motivating factors into two parts namely the hygiene and motivating factors. Hygiene factors are primarily the financial factors that enable a human being to satisfy his / her basic needs. The purpose of such factors is to increase the employee motivation. The variables allow a firm prevent factors that lead to negative motivation. This paper focuses on the impact of incentives on the middle managers and their motivation. It is clear that financial incentives are hygiene factors and the non financial incentives are motivational factors. We have to consider that every employee or manager does not have the same perception of his job and does not have the same goals. Even if we focus on the middle managers, there are some differences. A manager may value more the financial incentives than the non financial ones.

Extraits

[...] Thus, companies should focus their efforts on the non financial incentives in order to keep the level of motivation of its managers. But as we have seen, each person has its own perception of work, so the company has to be attentive when it will choose its incentive system. Introduction The main theory of a capitalist society is to find a way to gain always more money. So the main concern in today's society is the firms' profitability. How could I produce more and spend less money? [...]

[...] Those factors are classified into two categories: Motivator factors: It is the factors that permit you to increase your job satisfaction. Those factors are related to the tasks completed in the job and your role within the company. They are related to responsibilities given, the interest of the work, and so forth. If we do the relation with the previous part, we can say that motivator factors correspond to the belongness (or relatedness) needs. Hygiene factors: Those factors are tangible aspect of the work. [...]

[...] The internal and external factors show how their motivation is influenced in their life and in their work. a. Internal factors Internal factors are the criteria which determine someone's personality. The internal factors are directing people's behaviour in their everyday choices. Indeed, internal factors are personal needs, the attitudes toward the others and the personal goals that someone wants to reach. Two major theories are classifying those needs: Maslow's hierarchy of needs[3] The Maslow theory is based on people's needs in their life. [...]

[...] Fringe benefits Fringe benefits permits to reach a win-win situation between the employer and the employee. In this case, the employee would get an increase of its salary and the company will not be taxed on this increase. Those benefits could be health insurance, company car, and so forth d. Share of the company benefits The company could offer a share of its profit. This collective bonus will enhance team work and will motivate employees to improve the company's results. [...]

[...] In the following parts, we will focus mainly on the financial and non- financial incentives in order to find out if it is possible to improve middle managers' motivation by providing him incentives. We will see how firms usually do to improve there employee's motivation and how internal and external factors are taking in count to do that. II. How to enhance motivation? According to Scott Adams, real job of a manager is not to bring motivation to its employees but to prevent obstacles”. [...]