Money, Motivation, and Management

As we talk about motivation and money, let us think about what drives people to perform well; and the role of money in stimulating people to do their job. We discuss two opinions on the topic. First, Daniel Pink, an American author of the book “Drive,” helps us understand money’s place in terms of motivation. Then, we consider the concept suggested by a business owner from the HR library HR 360 and look closely at the money and motivation relationship.

Daniel Pink investigated how motivation depends on task complexity and found out that external stimuli such as biological, punishment motivation, or interests drive people to achieve simple goals. While inner motivation is prioritized in completing complex assignments. There are two tips for managers:
_ Focusing on external stimulation is a shortcut to inspire employees to do their job. It works very quickly; although, in the short term;
_ Based on research, most complaints refer to low pay and work is not attractive. Ergo, the top priority is an inner sense of making progress, especially for complicated tasks;
_ Back to money motivation, it does not always inspire people to do the right thing. The financial stimulus could motivate them to chit; besides, it has a negative effect on creative tasks.

The second opinion we consider belongs to a business owner from the HR library HR 360, Inc., who highlights three concepts that make the capital a powerful leverage:
_ Calculate (use salary data for an occupation to know the market value and pay respectfully);
_ Compensate (design a compensation plan that generates additional effort);
_ Communicate (provide annual rewards statement of compensation, benefits, and work/life programs).

To sum up, there are three key points:

1. Indeed, “money is only a piece of the puzzle” and cannot be a sole motivator (HR360Inc, 2015). Remember, motivation is a trigger that clicks personal and professional attitudes, values, and perceptions. As we just learned from Unit 2, the diversity of the characteristics is endless. Therefore, the manager’s responsibility is “to find an appropriate balance for an employee and budget” (HR360Inc, 2015).
2. Making progress is vital in job satisfaction. That’s where managers can interact to help make progress or inspire and recognize the progress when made (Moneywatch, 2010).
3. Employees don’t leave companies, they leave managers. “Gallup research shows that a mind-boggling 70% of an employee’s motivation is influenced by his or her manager” (Bradberry, n.d.).

The role of the management is instrumental for an organization. While the role of money is supplemental; it can become crucial when handled correctly, but never the only component.


Bradberry, T. (n.d.). 7 ways managers motivate and demotivate employees. Talentsmart.

HR360Inc. (2015, November 13). Money and motivation [Video]. YouTube.

Moneywatch (2010, January 30). Daniel Pink: What Really Motivates Workers
[Video]. YouTube.

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