Relationship Between Compensation And Motivation

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A Study of Relationship between Satisfaction with Compensation and Work Motivation


The present study while smearing the theoretical outline based on expectancy theory studied the relationship between satisfaction with compensation and work motivation. The dimensions i.e. fixed pay, flexible pay, and benefits were studied with regard to satisfaction with compensation. The work motivation on the other hand was studied using the effort and performance dimensions. Literature research as well as practical survey consisting of self-administered questionnaire was used to study professionals in general.

The relationships between satisfaction with compensation and work motivation were examined by using Regression Analysis. The major outcomes
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Why it is important for management of an organization to consider work motivation as an important marvel. The reason is that the main goal of the management is to raise efficiency by receiving the greatest output at the lowermost cost. Therefore, any performance that contributes to better efficiency will be actions that organization will want to inspire. These actions might be being punctual, or exerting a lot of effort or coming to work. In order to make sure that an organization gets best out of its personnel it will have to accept such a reward plan that motivates the personnel to keep performing for the best interest of the…show more content…
As far back as 1911, Frederick Taylor and his scientific management associate described money as the most important factor in motivating the industrial workers to achieve greater productivity. Taylor viewed compensation and performance based pay as one of the major tools management had at its disposal to motivate personnel and to increase their productivity and reduce turnover Dulebohn, Ferris, & Stodd (1995). Money possesses significant motivating power in as much as it symbolizes intangible goals like security, power, prestige, and a feeling of accomplishment and success. Sinclair, et al. (2005) exhibits the motivational power of money with the process of job choice. They explains that money has the power to attract, retain, and motivate individuals towards higher performance. For instance, if an employee has another job offer, which offers greater financial rewards and has identical job characteristics with his current job, that worker would most probably be motivated to accept the new job

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