Motivation is one of the main factors that determine the work performance of employees. A person is motivated when he or she wants to do something but notice that the reason to do something does not represent the same thing as the stimulus.
The most influent theory is the one of Maslow´s hierarchy of needs, which classifies people’s needs in 5 levels:
Source:Maslow´s hierarchy of needs. Retrieved February 28,2011, From:http://www.selfmademiracle.com/prosperity/maslow
Frederick Herzberg´s two factor theory: He found out that satisfaction factors were related to elements of professional activity (achievements, promotions, responsibility). Dissatisfaction factors involved the context of their work: company policy, management, salary, work conditions. (This theory was criticized because it does not make any evaluation of the relationship between satisfaction and performance)
Theory X and Theory Y (Douglas McGregor): Separates employees in two categories. The following chart shows the difference of x and y theory:
Source: Theory X & Theory Y. Retrieved February 28, 2011, From: http://www.ccel.us/hans.ch5.html
The 2 theories above are content theories; they actually focus on specific factors that motivate the employees regarding certain necessities and aspiration.
The following theories are focus theories this means that are concentrated on the process, on the psychological forces that have an effect on motivation. These theories are more useful to managers because they offer more realistic principles regarding motivation techniques.
The expectancy theory (initially elaborated by Vroom, and then developed by Porter and Lawler): The motivation is only possible when there is a clear relation btw the work performance and its results, and the results are means to satisfy a certain need.
The goal setting theory (Lotham and Locke): motivation and performance is higher when there are specific objectives that even if difficult are accepted and receive performance feedback.
The fifty-fifty rule (new theory of motivation): The theory says that a substantial part of motivation lies within a person while a substantial part lies outside and beyond its control. The 50-50 rule covers both the 1) Internal perspective of an individual and its inner motivational factors and also the 2) External perspective, when the employee motivation is influenced by others and the instant.
DISCUSSION: is economic retribution enough to motivate employees?
I believe that economic retribution is a huge step to motivate employees but is not enough, since from one side is very difficult to keep that kind of arrangements with all the employees plus not everyone has the same interests, maybe some of them want to ensure self-actualization or physiological needs, it all depends of the person its personality, behavior and needs.
Reference:
Viorel, Lefter, Manolescu Aurel, Marinas Cristian Virgil and Puia Ramona Stefania. 2009. "Employees Motivation Theories Developed At An International Level". Annal of the university of Oradea, Economic Science Series 18.
Even if economic retribution is indeed important at the time of motivating employees, it is also very important to analyze the cultural factors that affect motivation. Like it was explained in the motivation presentation at class, belonging to an individualist or collectivist culture, the meaning of work, level of uncertainty avoidance, religion and power distance are other elements that affect how people are motivated.
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