Lowering salary or salary demotion can significantly de-motivate employee’s enthusiasm. Herzberg (1993) believes that salary belongs to hygiene factors and can prevent job dissatisfactions. A team leader can use salary/pay rise, bonuses or stock options to get people motivated within a team or organisation.Īccording to Maslow’s hierarchy of needs theory (1943) salary increment is a proactive way to motivate employees. On the other hand, monetary motivational factors have a substantial cost of extrinsic value. Such rewards can leave a symbolic effect on employees and group solidarity, which may ultimately enhance team performance (Lawler, 1990). A leader can use this approach to motivate team members as the need for employee recognitions are crucial. Non-monetary motivational factors simply refer to symbolic issues such as work promotion, rewards, development training courses, health benefits etc.
Monetary & non-monetary motivational factors When regard as such, an individual employment is merely a tool of satisfying direct or actual need by means of the money it generates (Frey and Osterloh, 2002). Extrinsic motivational factors serve mainly through monetary compensation, where wage, bonuses and result sharing are main applicators. Noels (2002) cited Deci & Ryan’s (1985a) self-determination theory which suggested that the external goals you strive for vary as to the extent of how much they are in fact self-determined. Extrinsic motivational factorsĮxtrinsic motivational factors refer to the performing of an activity in order to achieve an external goal.
Extrinsic motivation comes from outside a person, such as reward, promotion, or deadline (Amabile, 1997). More straightforwardly expressed, intrinsic motivation is driven by a person’s internal interest and desire to do something, such as curiosity, enjoyment, and sense of challenge. The concept of extrinsic and intrinsic motivation is quite problematic simply because the two theories work in opposition (Deci & Ryan, 1985a). The concepts of these two theories (intrinsic and extrinsic motivations) explain in details why a task is carried out and what type of motivational drive causes certain behaviours. Studies done by Deci and Ryan (1985a) classify human motivations into two aspects, intrinsic and extrinsic motivation. Theoretical discussions gathered from the generalised conceptions of motivation argued how a team of people in different circumstances can meet with different stimulus and what are the factors that energizes human behaviors and how these behaviors can be manage or channels to different directions.ĭuring the 1930s, Lewin (1938) attempted to analyse some of the factors that affected employees degree of motivation, amongst the divergent set of factors examined, he came up with a suggestion that subject perceptions is the main cause for employees motivation and de-motivations. The unpredictability of human character and variegated mind-sets in human nature has made this phenomenon a challenging philosophy for every manager and researchers. The pursuit for higher motivations at all levels of works has seemed treacherous in almost every organisational perspective. Motivation is the inner drive that makes people act in a certain way (Herzberg, 1987), and it goes by the saying that “a well motivated and satisfied employee performed better than unsatisfied employees”. Leaders can use motivation to improve the physical and well-being of the organisation and its human capital, as a logical approach to enhance productivity and profitability (Hatch, 2002). Motivating people at work is a crucial component of organisational behaviors and psychology. The different theories and conceptions about employee motivations and how leaders can use the available literatures to enhance their employee’s performance have been discussed by many researchers (e.g Krueger, 1996, Herzberg, Mausner & snyderman 1993). Since the 21th century, the study of motivation became one of the most complex and fascinating topics in organisational psychology (Muchinsky 1996). The outcome of the research suggested that there is no cohesive strategy, or “strategic fit” that would apply directly to a specific situation, instead it was conclude that in organisation creative people are motivated from within and respond better to intrinsic rewards than extrinsic ones. Numerous theories were scrutinised in order to analyse the two theoretical concepts and their applicability to organisations. perceived usefulness) motivations can be use by team leaders to empower and motivate their teams to reach their fullest potential. The aim of this study is to explore how both intrinsic (i.e.
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