One of the most
important tasks of managers in organizations is to identify potential employees’
talents and provide the situation for their growth and achievement, which
prepares the basis for productivity improvement. Nowadays, without considering
to the level of productivity in production and knowing the affecting factors to
increase it, is impossible to take sustainable development. Since human plays a key role in development of the organization, fulfilling
the mental and psychological needs of individuals is an essential. Therefore, one of the important duties of the manager is to motivate the
individuals. Harry Truman said that organizational
leadership means being able to force employees to do something they do not
like. As an organizational leader, it is your job to
empower and encourage people to implement your strategy. if you want employees
to be fully involved in implementing a strategy, you should motivate them.
However, these questions arise that what factors provoke the employees to do
their job? Is money can be an incentive factors to stimulate them? Or other
factors such as recognition and appreciation of people, participation in
decision making and so on can encourage them? Answer to these question is the
essential sources for managers to maintain their staff happy and achieve to the
best result.

Theoretical foundation

money as an economic stimulator can play an important role in meeting the needs
of mankind. getting higher salaries also has more satisfaction. In
many companies, money is used as an incentive factor.

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One of the traditional model of motivation and the school of management is
Frederick Taylor theory. Taylor considered management art as a tool for shaping
the relationship between executives and workers. He believed
that motivating factor is merely based on more
skill and efficiency, and emphasized on encouragement and punishment. Taylor recognized reward as the only stimulus to produce efficiency. This school believed that one of the important aspects of the manager’s job
was to ensure that repetitive and tedious tasks would be most productive. Managers set out how to do the work and use the incentive wage system to
get employees excited. This model was based on monetary motivators like
paid salaries, bonuses and rewards for more production. According to this theory, managers believed that workers had intrinsic laziness,
only by economic factors they can be stimulated to produce more. Based on the Mayo discovery for each worker,
there are other key factors that the name implies is the group in which it

Money is a complex motivator because it intertwined with other needs,
including the needs of physiology, which can be acknowledged about the importance
of it in many ways. William F. White made a research on money motivation, It has come to the conclusion that money as an
old tool, trusted and motivator, as they thought is not a powerful tool for
motivation especially for productive workers. Based on the Mayo discovery for each worker,
there are other key factors that are the name of the group in which it

Generally, Financial rewards encourage short-term behavior, not long-term investments. Payments which based on the performance of individuals
can eliminate intrinsic motivation because people believe that they are doing
something just for money, not because they enjoy it. Good performance depends
on two things: Motivation and ability. Research shows that committed and motivated employees
stay 44% more at work,50 percent more productive and, 56% receive higher
advantage of customer loyalty. They have an average of 33 percent more profit for their organization.

Everyone’s work environment is his second home. In this environment, he must meet his minimum
mental and psychological needs to reach the organization to their benefit. The level of awareness of individual’s
occupation is in fact one of the most important factors in creating satisfaction,
which also provides the promotion of the occupation for individuals. Earlier, managers believed that the best way
to motivate employees was to have three common causes of job security,
financial rewards and career progression. While this can be easily achieved under today’s working conditions. What encourages staff today in the
organization? Empowering employees means respect to employees as a human being,
flexibility to meet their needs, encourage them for learning and new skills.

Content theorists seek to identify the factors that motivate humans to
work. In other words, content theories focus more on the inner issues of man and
the motivating factors, and are looking for things that activate the behavior
of the individual to do their work. Abraham Maslow presented his model of human motivation based on his own
clinical experience in 1943. He divided human needs into five classes and called it the hierarchy of
needs, which are: Physiological needs – Satisfaction of thirst, hunger and
sexual desire, Safety Needs – Escape from the fear of external damage, extreme
external changes, Necessities of belonging – the desire to have emotional and
caring relationships – to receive kindness and personal support from other ,self-esteem:
respect and positive respect from people, self- actualization:  morality, creativity, problem solving, lack
of prejudice.   

Classical followers believe that if their physical needs are met, they will
do their maximum effort to achieve the organization to their goals. Such managers often ask themselves why
organizational efficiency is not added? While we pay a lot of money and the job is excellent. In fact, the money which paid to employees to meet their physical needs, such as food,
clothing and housing, they consumed it when they are outside of their
organization, and usually no one spends money at work.



Motivation in organizations has a significant
role in achieving success and gaining their competitive advantage. It’s almost said that the first thing that comes
to our minds is that money makes people
motivated. It may even happen for you that if we expect something from a child,
we try to persuade a child with an incentive like a child’s money. For example,
we promise to our child to buy a toy for you if you do it. And maybe that’s why
the motivating factor in our minds is external rewards. When we read that exorbitant external rewards
exacerbate corruption, we might be surprised to wonder if anyone can lose his
incentive with money and rewards. But various research and experiments show
that yes it can. In environments where external rewards are more common, many people work
only to the rewards which are earned not more it, they only work to the rewards
that are rewarded, not more. Money alone can ‘not create an incentive for
employees of the organization. The satisfaction of the need for pride and
dignity creates emotions such as self-esteem, worthiness, qualification and
ability, and the like in a person, while the lack of satisfaction of these
needs causes a person to feel numb, weak, and helpless. Probability, Nervous
incontinence occurs in person and it does not allow a person to be a useful
person and increase the efficiency in the organization. money in a short term
can be a good motivator but in the long term cannot be as an essential factor
for staff to increase their quality and productivity.


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