Is It Really All About The Money - Motivating Employees in The 21
Is It Really All About The Money - Motivating Employees in The 21
Is It Really All About The Money - Motivating Employees in The 21
Volume 6 Article 18
2006
Stacy Novotny
Minnesota State University, Mankato
Seth Larson
Minnesota State University, Mankato
Part of the Business Administration, Management, and Operations Commons, and the Performance
Management Commons
Recommended Citation
Randall, Joshua; Novotny, Stacy; and Larson, Seth (2006) "Is it Really all about the Money?: Motivating
Employees in the 21st Century," Journal of Undergraduate Research at Minnesota State University,
Mankato: Vol. 6 , Article 18.
Available at: https://cornerstone.lib.mnsu.edu/jur/vol6/iss1/18
This Article is brought to you for free and open access by the Undergraduate Research Center at Cornerstone: A
Collection of Scholarly and Creative Works for Minnesota State University, Mankato. It has been accepted for
inclusion in Journal of Undergraduate Research at Minnesota State University, Mankato by an authorized editor of
Cornerstone: A Collection of Scholarly and Creative Works for Minnesota State University, Mankato.
Randall et al.: Is it Really all about the Money?: Motivating Employees in the 21
Published by Cornerstone: A Collection of Scholarly and Creative Works for Minnesota State University, Mankato, 2006 1
Journal of Undergraduate Research at Minnesota State University, Mankato, Vol. 6 [2006], Art. 18
https://cornerstone.lib.mnsu.edu/jur/vol6/iss1/18 2
Randall et al.: Is it Really all about the Money?: Motivating Employees in the 21
Goals play a role in motivation in that they clarify what each employee needs to do in
order to reach the set outcome. Goal setting is a tool for management to increase productivity
and to increase performance over a long period of time (Thurmes, 1987). Gary Latham and
Edwin Locke describe goal setting as a motivational technique. They emphasize that the goals
having the greatest positive effects on performance are those that are both specific and
challenging (Steers and Porter, 1991). McShane and Von Glinow (2005) listed six
characteristics of goals that maximize task effort and performance; these characteristics are
setting specific, relevant, and challenging goals, having goal commitment, participation in goal
formation, and goal feedback.
Having goals helps employees by directing effort intensity and persistence to one or more
objectives. Goals help minimize distractions and make it easier for the employee to get back on
track if distracted. According to McShane and Von Glinow (2005) direction helps improve work
performance by focusing the employee’s effort intensity and persistence.
Goal setting has limitations. If used incorrectly, goals may make more problems then
they solve. If goals are tied to monetary incentives, employees tend to choose easier goals
(McShane & Von Glinow, 2005). Goals that are unfair, arbitrary, or unreachable may result in
dissatisfaction and poor performance (Latham and Locke, 1979).
Published by Cornerstone: A Collection of Scholarly and Creative Works for Minnesota State University, Mankato, 2006 3
Journal of Undergraduate Research at Minnesota State University, Mankato, Vol. 6 [2006], Art. 18
attempt to increase interactions with those around him or her in the hope of achieving the goal of
receiving friendship and support (Steers & Porter, 1991).
Goals play a part in motivation and continued motivation. Thurmes (1987) states that
people who set their own goals or accept the goals set by someone else will put forth the level of
motivation that seems reasonable to attain these goals.
Feedback, whether good or bad, contributes to motivation because it reduces employee
uncertainty, and the employees know where they stand.
https://cornerstone.lib.mnsu.edu/jur/vol6/iss1/18 4
Randall et al.: Is it Really all about the Money?: Motivating Employees in the 21
technology’s role in a job is increasing. Sidler said that it is important to let the employees know
what tasks the technology in their jobs will be performing in an attempt to ease the thoughts of
the employees and tell them that they are “not going to be replaced by a computer” (1984, p. 11).
This is especially important today as technological advances are making it possible for fewer
individuals to accomplish a task, as well as the growing issue of outsourcing jobs, which has
many people fearing for their jobs. Sidler said that if the employees have been prepared for
technology entering their workplace then their “motivation to work on the computer will be
high” (p. 11). Sidler continued by stating, “Motivation will result because [the employees] will
know that they have upgraded themselves with the technical movements of the marketplace by
adding a new dimension to their job description” (p. 11). This also shows that their supervisor
“respect[s] their abilities to perform their jobs on a new level” (p. 11).
Second, in the book The New Workplace: A Guide to the Human Impact of Modern
Working Practices, the authors mentioned that motivation is affected by telecommuting or
teleworking, as it is called in the United Kingdom. This is an important area in technology to
examine because there are between “eight and nine million [telecommuters] in the” United States
(2003, p. 197). Organizations enjoy telecommuting because they see benefits through their work
force and accommodation costs – quite often their two largest overheads – because of these
benefits, telecommuting has been connected with “improved productivity, improved employee
retention, greater staffing flexibility and more efficient use of office space” (p. 201).
Telecommuting improves motivation for employees because it includes individual benefits of
“more flexible working hours; more time for home and family; reduced commuting; greater job
autonomy; less disturbance [while] working; and the chance to remain in work [even though
being at home more often]; becoming ill or taking on family care roles” (p. 202). Because of this
technology, employee morale and motivation is able to stay high and even possibly rise when the
employee is not even in the office, while at the same time providing benefits for the
organization’s overhead.
Finally, employee motivation can increase through the help of personal digital assistants,
cellular phones, and laptops. According to an article titled Meet the Mobile Messaging Needs of
the Modern Worker, mobile technology is helping businesses achieve goals including
“addressing employee needs and overall satisfaction through managed accessibility, and flexible
work schedules” (pp. 2, 2005). Because businesses are “recognizing that external work-related
factors can affect employee morale, more employers are looking at solutions that provide
employees with a better work-life balance” (pp. 2). The reason for looking for solutions that
create a better work-life balance is that the companies know that if they are able to provide their
employees with a better work-life balance, their employees will be happier overall, and their
productivity will be increased.
Published by Cornerstone: A Collection of Scholarly and Creative Works for Minnesota State University, Mankato, 2006 5
Journal of Undergraduate Research at Minnesota State University, Mankato, Vol. 6 [2006], Art. 18
Maslow’s safety and security needs are the desire for security, stability, and protection
from fear, which equates to employees having job security and fringe benefits.
Maslow’s needs for love and belongingness are the desire for love, affection, and
belongingness, which equates to being liked and respected by the employees, boss, peers, and
customers.
The self-esteem needs and the desire for achievement, adequacy, and competence equates
to employees having a job title, more responsibility, recognition, and promotion.
Finally, Maslow’s need for self-actualization or the desire for fulfilling oneself by
maximum uses of skills and abilities is equal to the challenging job, creativity and achievement
in work (p. 33, 1984).
https://cornerstone.lib.mnsu.edu/jur/vol6/iss1/18 6
Randall et al.: Is it Really all about the Money?: Motivating Employees in the 21
Rodgers(1996), reward programs must have frequent and fair evaluations, or feedback, to ensure
the program is functioning properly. For the reward to trigger behaviors in employees to work
toward the reward, the reward program must be designed in and around the employees it will
affect. The best way to ensure rewards fit the needs, values, and goals of the employees is to
include the employees in the planning and design process of reward programs.
If an employee has lost the intrinsic rewards, like self-gratification, and now looks for
external rewards as motivation, the employee has been over motivated. Steers and Porter (1991)
argued that an individual’s level of effort on a task is determined largely by the nature of the
rewards available for task accomplishment. If an employee’s motivation is intrinsic, the
employee will engage in activities for intrinsic rewards, but if extrinsic rewards are introduced
for an intrinsic task, the locus of causality will shift extrinsically, meaning the employee will be
motivated if an extrinsic reward is believed to be received.
This literature review reveals that while using money and rewards might be a good idea,
to truly motivate employees, managers need to realize that not all employees are the same, and
that managers need to tailor motivational strategies to their employees.
Published by Cornerstone: A Collection of Scholarly and Creative Works for Minnesota State University, Mankato, 2006 7
Journal of Undergraduate Research at Minnesota State University, Mankato, Vol. 6 [2006], Art. 18
Authors’ biographies
Joshua Randall is the son of Michael and Vickie Randall. Joshua was born in Mankato in 1984;
he graduated from New Ulm Senior High School in 2003. He is pursuing Bachelor of Sciences
in Management and Speech Communication, and minors in Marketing and Business
Administration. Joshua has been a member of the Maverick Forensics team the three years that
he has been at Minnesota State University, Mankato. He is on track to graduate from MSU in
May of 2007. After graduation, Joshua plans to work towards his Master of Arts in
Communications. When not in school Joshua enjoys watching sports and staying up to date with
online news sources.
Seth Larson
Seth Larson graduated from Minnesota State University, Mankato in the spring of 2006
with a Bachelor of Science in Computer Information Sciences along with a minor in Business.
While Seth has not found a job, yet, he hopes to be able to combine his knowledge of computers
along with the knowledge that he learned while taking his business classes and compiling this
research project in his future career.
Stacy Novotny
Stacy Novotny is a senior at Minnesota State University, Mankato and will be graduating
in December, 2006. Ms. Novotny, originally from LeCenter, will be receiving her Bachelors
degree in Management, along with a minor in Minnesota’s Accounting program.
https://cornerstone.lib.mnsu.edu/jur/vol6/iss1/18 8
Randall et al.: Is it Really all about the Money?: Motivating Employees in the 21
References
Berl, R. L., Williamson, N. C., & Powell, T. (1984). Industrial salesforce motivation: A critique
and test of Maslow's Hierarchy of Need. Journal of Personal Selling & Sales Management,
4(1), 33-39.
Byrd, A. L. (2005, September 28). Meet the mobile messaging needs of the modern worker.
InternetWeek. Retrieved April 23, 2006, from http://internetweek.cmp.com/
showArticle.jhtml?articleID=171201382
Employee motivation. Motivation in the workplace- theory and practice. (2005, July 12).
Retrieved March 17, 2006, from http://www.accel-team.com/motivation/
Fisher, C. D., Schoenfeldt, L. F., & Shaw, J. B. (2003). Human resources management (5th ed.).
New York, New York: Houghton Mifflin Company.
Kelley, C., Heneman III, H., & Milanowski, A. (2002). Teacher motivation and school-based
performance awards. Educational Administration Quarterly, 38, 372-401.
Klonis, S. C., Plant, E. A., & Devine, P. G. (2005). Internal and external motivation to respond
without sexism. Personality and Social Psychology, 31, 1237-1249.
Laymond, D., Daniels, K., & Standen, P. (2003). Teleworking and virtual organisations: The
human impact. In D. Holman, T. D. Wall, C. W. Clegg, P. Sparrow, & A. Howard (Eds.), The
new workplace: A guide to the human impact of modern working practices (pp. 197-218).
Hoboken, New Jersey: John Wiley & Sons, Ltd.
McShane, S. L., & Von Glinow, M. A. (2005). Organizational behavior (3e ed.). Dubuque,
Iowa: McGraw-Hill Irwin.
Motivation. (2005). In Encarta. Retrieved March 17, 2006, from http://encarta.msn.com/
dictionary_/Motivation.html
Pincus, J. (2004). The consequences of unmet needs: The evolving role of motivation in
consumer research. Journal of Consumer Behaviour, 3, 375-387.
Rogers, R. A. (1996). User's guide to: Planning, managing, and evaluating an employee reward
program (Master's thesis, Mankato State University, 1996). 1-59.
Rynes, S. L., Gerhart, B., & Minette, K. A. (2004). The importance of pay in employee
motivation: Discrepancies between what people say and what they do. Human Resource
Management (pp. 381-394). Iowa City, Iowa: Wiley Periodicals Inc.
Sidler, M. P. (1984). High tech as a motivating force. Nonprofit World Report, 2(5), 11.
Steers, R., & Porter, L. (1991). Motivation and work behavior. New York: McGraw-Hill Irwin.
Thurmes, D. (1987). Participative versus assigned goal setting attributes and their effect on
performance (Master's thesis, Mankato State University, 1987). 1-59.
Published by Cornerstone: A Collection of Scholarly and Creative Works for Minnesota State University, Mankato, 2006 9