This essay examines the topic on ‘psychology and motivation’, where money has long been considered the most effective motivator of staff. Therefore, three specific management theories would be used in this paper to evaluate the use of monetary incentives in employee motivation. Motivation is purely a simple active process of leadership behavior. It creates conditions which drives an individual to do things right. Motivation is a built-in response in an individual and it appears within an individual instead of establishing from the outside (Baldoni, 2005). Motivation is the key to performance improvement. Unfortunately, in today’s working society, the traditional approach of monetary incentives tempts individuals only to a certain extent. Though monetary incentives are able to fulfill the basic needs (hunger, thirst and daily necessities) of an individual, it cannot ‘buy happiness’ like work satisfaction or help people attain power. Money makes people feel self-sufficient. Human beings are thus more likely to put forth effort to attain personal goals (Buchanan, 2009).
sychology and Motivation