Herzberg's Theory Of Money And Motivation

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2.3.3 Herzberg’s two factor theory
Herzberg explained about money and motivation that make an individual satisfied. According to him as quoted by (Armstrong, 2006, p.267), He suggested that, money provides carrot that most people want. It is argued that it has something in it especially for the employees with fixed salaries or rates of pay who do not benefit directly from an incentive scheme. They will feel good when they experience an increase of it. It is highly tangible form of recognition and an effective means of helping people to feel that they are valued.
Other dissatisfaction from Herzberg’s list of hygiene factors, such as working conditions or the quality of management, can loom longer in some people’s mind when they fail to get the satisfaction they need from work itself. Furthermore the theory asserts that although money is a motivator but it will not motivate all individuals since human being needs differ. What is mostly recommended is to practice performance related pay scheme which will cause every individual to be well motivated and hence high performing individuals since money provides the means to achieve a number of different ends.
Study made by (Jacques, 1961) as quoted by (Armstrong, 2006,p.268) has got a role on this theory in which she argued that, the reward should be clearly related to effort or level of pursuing responsibilities and people should not receive less money than they deserve compared to other workers and this was named as ‘felt- fair’
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