Motivation at Work: a Key Issue in Remuneration

To be effective, remuneration systems should be based on sound understanding of the motivation of people at work. However, this has proved to be an extremely complex topic, and very often reward systems used by employers have been based on simplistic motivation theories and they have failed. In this article I describe the most significant contributions to the theory of motivation, leading up to a review of current understanding of this complex subject. This leads us into examining strategies for reward systems aimed at motivating better performance; and the scope for integrating reward systems into strategies for changing other human resource management systems.
Motivation Theories
Theories of motivation to work have passed through many stages, influencing and being influenced by the prevailing management ideologies and philosophies of each era. Although we can trace a sequence to this development, it does not mean that the old theories have died. There are employers and managers and employees today adhering vigorously to one or other of them, basing their belief not on research or empirical evidence but on an almost ideological framework of values and assumptions. These help them understand their own role and those of others around them. The poor quality of comprehension about how reward systems affect behaviour can be blamed partly on the confusion generated by so many conflicting theories of motivation and conflicting case examples.
During the early part of this century the predominant theory about management was the classical or "scientific" management approach. This theory portrayed working people as making rational economic calculations and following a consequent logical pattern of behaviour at work (see Taylor, 1947). Employers, who accepted this theory, believed that their workforce were driven by the desire to earn the most money possible. Elaborate financial incentive schemes were developed, based on work measurement using stop-watches to determine