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Organizational behavior - Payment as motivation

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  1. Pay has no effect or a negative impact on increasing employee motivation
  2. The vital role of pay in motivation

Motivation, which can be defined as a psychological feature that drives an individual to act toward desirous goals, is a major topic of organizational behavior. With the increasing importance of work efficiency, more managers start to realize the existing issue of employee motivation. According to research, above 70 percent of employees in America are not highly engaged in workplace (Wagner & Harter, 2006). Hence, various motivators are applied by managers to enhance employee performance. Payment, which is a significant work attribute, has been considered as a controversial motivator of employee behavior. Although many people believe payment is not an effective incentive, it is true that it can to some extent motivate employees.

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