Does money motivate? The topic of Motivation came up in a discussion

[Kevin Mader]

I moderate a group who meet regularly to discuss what Quality is. In one meeting, the topic of Motivation came up. Interesting dialogue ensued.

The sticking point for many was the question of whether or not money is a motivator. I would like to hear the forum members thoughts on this.

Regards,

Kevin

[Jim Biz]

Hi - Kevin: Interesting question
IMHO: “it depends” – I’ve always been under the impression that the answer to money as a motivating factors is dependant upon where one falls on Maslow’s hierarchy.

1) Physiological: hunger, thirst, bodily comforts, etc.; - $ Definitely a factor & Huge motivator
2) Housing/Safety/security: out of danger; - $ Most Likely a solid Motivator
3) Belonginess and Love: affiliate with others, be accepted; - $ May or may not be a motivator
4) Esteem: to achieve, be competent, gain approval and recognition. - $ Probably plays a part in motivation
5) Cognitive: to know, to understand, and explore; - $ begins to become less of a motivator
6) Aesthetic: symmetry, order, and beauty; - $ as motivation become a small or neutral issue
7) Self-actualization: to find self-fulfillment and realize one's potential; - $ are most likely not a motivator
8) Transcendence: to help others find self-fulfillment and realize their potential. - $ Not a motivator at all.

Other interesting viewpoints and reading materials speaking to this can be found here:
Maslow's Hierarchy of Needs

Regards
Jim

[Marc]

My opinion is money is typically a temporary motivator. 'How much' it motivates and for how long is another matter. Is the person in a current financial 'hole'? How is the economy doing in general?

My experience has been that you can scratch an itch and relieve the problem for only a short period of time.

For all intents, I think Jim addressed the details. I was not thinking about Maslow's works. Good summary.

[Kevin Mader]

Good stuff gentlemen! I used Maslow and Herzberg's theories to try and explain my position. Before I do, I will throw out a contribution from Herzberg.

Salary is identified by Herzberg as a Hygiene Factor, not a Motivational Factor.

Does this change anything?

Regards,

Kevin

[Randy]

It seems to me that the lack or absence of money is more of a Motivator than actually having it.

Money does place one in a better "comfort zone", and the desire for that comfort motivates.....not the cash itself.

Kinda like a dog chasing a car. Once the dog catches it, it is no longer any fun..

Humans only have 2 real motivators and they are...

1) The acquisition of wealth or power and
2)the fulfillment of sexual/sensual pleasures or desire.

I came to that conclusion after spending many years putting people into prison.

It boils down to controlling you own destiny/being the boss (which makes #2 appropriate) and/or just feeling good. No if's, and's or but's.

Think about what really drives you in your endeavors and my theory will check out...

[David Mullins]

I always find Maslow handy to use.
Herzberg has his wires crossed.
Sex is a primary need, salary is not.
Salary (as has been pointed out here and many other places) is a temporary motivator.

There are 2 things you don't muck up on with your employees, their pay, and their pay. Try short-changing someone in their pay and see how motivated they are!


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[Andy Bassett]

All good interesting contributions, and i have been lucky enough to test and evaluate some of these theories on my employees, and i am sorry to say that theorey has sometimes fallen short of reality. Ill give you a couple of examples to pull apart.

In one particular company where i worked, when people earned more than 6000 Dm per month INCLUDING OVERTIME, after a discussion with Personnel that person was put on a fixed salary at or above 6000Dm. So what do you think happened? By my estimation more than half the people visibly reduced the overtime that they were working after obtaining a fixed salary.

Second example - I always preach that the best way to move employees or management is with money. Another company was trying to get their engineering HoDs to use Credit Cards to order Low Value Goods directly without going over Purchase. 'we are not doing Purchasings job' was the answer. By coincidence three months later a Cost Accounting System was set up whereby each dept charged each other for their services. As soon as Engieering saw how much Purchase was charging them per order they were banging at the Purchase Managers door trying to get the Credit Cards.

We live in a consumer society, everything that we want to do or have costs. The more money we have the more we can do or have. Sorry, but i beleive that money talks much louder than we are prepared to admit. I am currently in the process of building a second company. And the whole pay structure is largely based on bonuses tied to the success fo the company. I wouldnt consider to do it any other way.

And another point. The people at the top of Maslows pyramid, how do they measure or judge self-fulfilment? The best way in this modern society is wealth.

Just another view

Regards

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Andy B

It's impossible to generalize on what motivates people, because everyone is absolutely unique. Some people are highly motivated by money, but others are motiviated by the security of having enough to meet their needs.

Money, alone, it typically not a motivator.

Jerry