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1187 Words Sep 27th, 2014 5 Pages
Literature review on motivation and reward theories


Companies might obtain enormous benefits and enhance their performance by motivating employees appropriately. Motivated staff are likely to work harder in a shorter period of time. The supervision is also required less. As a result, the cost of labour is likely to reduce significantly. While the motivated workers retain the stronger loyalty, make fewer mistakes, and impact positively on customers, the unmotivated employees, on the other hand, usually express poor performance, or tend to change jobs occasionally ().

Motivation is defined as personal interest which forces “the direction, intensity, and persistence of voluntary behaviour” (textbook pg 170). In other word,
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The Two-factor or Motivation-Hygiene theory which was first introduced by Herzberg (1957) is the applied such approach. According to Herzberg, while internal factors or motivators like work achievement, accountability are related to job satisfaction, external or hygiene factors such as work condition, salary, security cause job dissatisfaction. The two sets of factors act separately of each other. Unlike Maslow’s theory which is based on the set of human needs and every need is taken into account as motivator as long as it has not been satisfied yet, according to Herzberg’s theory, only equivalent needs classified in higher level of the Maslow’s hierarchy act as motivators, the hygiene factors (security, condition) which are similar to lower levels of needs are not identified as motivators. Therefore, the applicability of Maslow’s theory are likely in organisations where money is the significant concern for employees, while Herzberg’s theory tends to be applied in affluent and developed countries and organisations where money is the less essential factor of motivation.

The third approach attempt to explain the derivation of motivation based on employee’s evaluation and comparison between their effort with the outcome. Expectancy Theory of Motivation suggests process of behaviours based on three key elements: expectancy, instrumentality, and valence. Expectancy is the

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