Many experts argue that people do their best work when they are

motivated by a sense of purpose rather then the pursuit of

money. Do you agree? Critically evaluate and explain your
position.

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 TABLE OF CONTENTS

1.0 Introduction

2.0 Theories
2.1 Maslow’s Needs Hierarchy
2.2 Herzberg’s two-factor Theory
2.3 David McClelland’s theory

3.0 Survey of job satisfaction

4.0 Money and Motivation

5.0 Conclusion

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 Many experts argue that people do their best work when they are motivated by a
sense of purpose rather then the pursuit of money. Do you agree? Critically evaluate
and explain your position.

“Can’t buy me love” (Filipczak & Bob, 1996, p. 29)

This statement was mentioned in the magazine “Training”, which is related to the
thoughts of the motivation. People look for job and want to work in satisfaction. Some
people believe that the factor of the job satisfaction is money, which means employees
are motivated to do their work by money and do their best work. However, through
money, we cannot buy a motivated, committed, productive, enthusiastic, and creative
work force (Filipczak & Bob, 1996, p. 29). Researchers who study of motivation for
job satisfaction introduced the theories like Herzberg’s two-factor Theory, Alderfer’s
ERG Theory, Equity Theory McClelland’s Theory, Expectancy Theory, McGregor’s
theory X and Y,. All the theories, which were mentioned above, have been used to
prove that employees are motivated other factors not money and factors of motivation
(Sarin, 2009, p. 237). According to the studies of experts, people made the best
performance in their job when they are motivated by intrinsic matters which are
making job satisfaction, rather then extrinsic matters. (Filipczak & Bob, 1996, p. 29). I
strongly agree with this notion regarding relationship between money and motivation
for job. This article will provide the reasons why money is neither a factor of
motivation nor a factor making good performance. The article shows what the
function of money in organization is.

According to the Maslow’s Needs Hierarchy, human basic needs are divided into five
levels, and are arranged in a hierarchy. First is the physiological need; basic physical
needs or drive, such as hunger, thirst, and sex. Second is The safety need; the need to
feel secure, to feel free from threats, to feel that the world has some order so that one
can cope with events. Third is the belongingness need; to belong, to be accepted, to
give and receive love. Forth is the esteem need; the need for respect and esteem, in the

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eyes of both oneself and others. Needs for self-respect includes a desire for
achievement, confidence, and independence. Finally, the self-actualization need; need
to fulfill one’s potential (Rolfe et al. 1983). Among these levels of needs, Maslow
regards the money as a lowest level, which is just basic physical need. Once it is
satisfied, it does not give influence to motivate person’s behavior any more (Sarin,
2009, p. 237).

Herzbug suggests and argues that there are tow factors those are motivating factor
and hygiene factor. Herzbug’s tow-factor theory was drawn from Maslow but focuses
on the question of job motivation. Motivators, intrinsic reward produces job
satisfaction while hygiene factors, or extrinsic rewards produce job dissatisfaction.
Motivators are Personal Growth, Advancement, Recognition, Achievement, nature of
the work itself, and Responsibility. The hygiene factors, the extrinsic, are company
policy and administration, salary, supervision, job security, working conditions, and
interpersonal relationship. In other words, extrinsic factors indicate the two highest
needs in Maslow’s hierarchy (Rolfe et al. 1983). As mentioned, salary is included in
the hygiene factors, which causes job dissatisfaction. Herzberg(1968) said, “Money is
not a motivator”. However, there is a misinterpretation of which Herzberg’s opinion
that “Do not use money to motivate employees” (Herzberg, 1968). In fact, it did not
mean that. He offers three warnings of using the hygiene factors to their employees.
First, do not expect that employees may be excited by using the hygiene factors for
job motivation. Second, the manager who uses hygiene, extrinsic factors must be rich
because employees would want more and higher rewards to be satisfied. Third, the
manager who uses the hygiene factors should be aware of that employees might
believe they can find their job satisfaction with only extrinsic factors such as good
bonuses, company cars, and nice offices (Daniel & Sachau 2007). Herzbug emphasize
that offer of hygiene factors such as money just get rid of worries on absent of hygiene
factors. However, it does not give satisfaction and motivation to employees.
Satisfaction will be given to them only with motivators increasing responsibility,
achievement, and advancement (Baldonado & Janice, 2009)

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 David McClelland argued, in his theory, that people experience three dimensions
such as the need for achievement, the need for power, and the need for affiliation.
Managers need to put some efforts to find out what employees regards as the
important in their work to motivate staffs. If authority and power is the person’s goal,
he may do his work best when the reward is to higher his position like a promotion in
the fields. Unlikely this, to those ho seek affiliation are suit to be a team player who
can unite the group members. However, achievement-oriented person needs feedback
and the sense that progress is being made (Stern, 2008, p. 12). If managers who want
to motivate staffs just simply think that staffs make high performance when they are
rewarded with good salary or more bones, they could make great mistake.

What really motivates people at work? Is it simply the size of their paycheck? Is it
another promotion? Or is it something else? Many contrasting views of motivation
exist. However, most experts agree that motivation energizes, maintains and guides
behavior. (John, 1992, pg. 63)

Money is not a factor that gives people motivation to perform most efficiently for
their goal. There are more specific factors that motive people in organizations.
managers have to motive employees to make good performance. John (1992)
introduces, in his article “The motivation trap”, Herbert Meyer’s survey, the surveys
of managerial-level employees, with the subtitle “The Paradox of Pay”. Even though
companies and management pay employees for their performance, Meyer found
surprising result, the high levels of dissatisfaction. According to the Meyer’s research
shows that motivating with money results even opposite outcome. To motivate people
by money decreases their intrinsic interest in the job. When the goal to achieve is high
salary or bonus, people focus their mind on extrinsic factor, money rather than
performance itself. If managers really want to use money as a motivator, this payment
must be as high as employees may be
accepted.

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 There is another survey about job satisfaction, which was conducted by G. Lance
Matheny MD, MPH, MBA, CPE that is a medical consultant. The survey shows that
people feel satisfied with their job not because of money. They asked 104 people to
make the survey. As a result, 46 percent responded that improving communication and
personal relationship is important. Nine percent stated improving leadership is the
point, but only 3 percent said bonus is making high job satisfaction (Matheny &
Lance, 2008, pp. 14-15). Bonus and rewards may improve little of job satisfaction.
However, as the result of the survey shows, it is not too helpful to give motivation to
perform best. It is not a good motivator for employees.

This is a Bob Nelson’s experience showing money is not a main factor of motivator.
After his presentation regarding “Do you think money is the best reward? Many
people do”, managers and CEOs, told him that they had disagreed with what he
explained about money it is managers own view. They still believe money is most
important motivator. However, bob emphasize money is not main reason for their
work (Nelson, 2002, p. 12). It does not mean money has no value of motivation.
Money provides functions for the standard of living as Frederick Herzberg (1967)
mentioned in his hygiene Tow-factors theory. An addition, salary itself cannot become
a motivator. When it works with extra factor of how they are treated in his fields, the
money take some of functions. Nelson (2002) said that to make people do their best
work is to provide more functions of motivator including praise and recognition,
development of opportunity and challenging work.

The notion of Motivation can be divided into two groups, external motivation and
inner motivation (Rewards to Motivate (Why it's not the whole story), 2006, p. 24).
External motivation involves basic needs just like that of hygiene factors whereas the
inner motivation is the same as the motivators in Herzberg’s theory. (Herzberg, 1967).
Among these factors, inner motivation is the one that motivates employees to do work
without expecting any rewards. Therefore, the job of managers who want to give

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motivation to people for high performance is to find what creates inner motivation.
The authors of the article “Rewards to Motivate (Why it's not the whole story)“
suggest that pride of work, working with good colleagues, sense of growth, and a
sense of accomplishment are able to make inner motivation, motivators that effect
people to work with willingness (Rewards to Motivate (Why it's not the whole story),
2006, p. 24). Furthermore, recommend to create such an environment that can
promote inner motivation. There are five factors, which provide the environment.
“Goals” is a sense of what people want to accomplish, vision. “Challenge” is the
ability of own improvement. In order to achieve and reach to certain point, people
strive to get there though people have not enough ability, yet. While doing it, self-
motivation is created. Daniel and Sachau (2007) said “Moderate level of challenge
make a task enjoyable”. “Achievement” is a sense of which they are doing is very
important. After achieve the task, people are satisfied. Mark Wardell (2008) also
supports this opinion. Employees are motivated themselves when they feel they are
including in bigger picture and plans which means they are regarded as one and
important part of it, employees do their work best. If they do not have this sense, they
may work hard only when the owner is around (Wardell, 2008 p. 87). “Ownership” is
including empowering leadership. It gives a responsibility to make good performance.
Lastly, “Community” is making the motivation by having communication and
teamwork, which promotes natural accountability. Better communication is used to
improve job satisfaction (Matheny & Lance, 2008, pp. 14-15).

McClelland’s theory still applies well to organizations in order to make motivation.

Managers need to find what types of person employees are and what their preferences
are. First, preferences have to be identified to what type of task person suit and what
person prefers in projects and then what role the person favored in the group of
workers. Next, finding what person hope to get something from one another helps to
know person’s wants. Finally, knowing what skill person has and prefers to use gives
clues to make decision what position the person suits (John, 1992, p. 63). When the
person does what he likes to do and role by using his best skill with helpful colleagues

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at right position, there is no doubt that he will do his best work with willingness.

The argument that whether or not money is a factor of the motivation for the job is
still a controversial matter. Each person has his or her own opinion on relation
between money and the work performance. However, as many experts and researchers
have found, money itself is neither a motivator, which encourage people to work, nor
the main reason of which people have their job. Moreover, surveys and studies prove
that employees make good and high performance not motivated by money. Rather,
they pursuit their own sense of purpose and people regards this as more valuable
reason of their working. It does not mean that people may work without salary and
any rewards. As long as people have enough expenses, money only takes a little part
of their motivation factor. Herzberg (1967) said, “Kick n the ass” and Stefan added his
opinion to Herzberg’s word.

If I kick my dog, he will move. And when I want him to move again what must I do?
I must kick him again. Similarly, I can change a person's battery, and then recharge
it, and recharge it again. But it is only when one has a generator of one's own that
we can talk about motivation. One then needs no outside stimulation. One wants to
do it (Stern, 2008, p. 12).

Motivating by will last soon and reveal the limited power of money. Money is
necessary. However, it is not a good motivator.

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