What Role Would Money Play in the Hierarchy-of-Needs Theory
(a) For the Hierarchy-of-needs Theory, Maslow has set up a hierarchy of five levels of needs. Physiological Needs These are biological needs which are the strongest. Since this is the basic level for human being to survive and search for satisfaction before we move up to second level. In this level, money plays a significant role as we need money to support our physiological needs. Safety Needs When all physiological needs are satisfied, the needs for security become active. Money also plays its role as we need money to increase our security.
Social Needs When the needs for safety and physiological are satisfied, we will try to satisfy social needs. Money takes role as we need to overcome feelings of loneliness and alienation. Esteem When the first three levels of needs are satisfied, the needs for esteem can become dominant. These involve needs for both self-esteem and for the esteem we get from others. When these needs are satisfied, we feel self-confident. Self-Actualization When all above needs are satisfied, then the need for self-actualization is activated. In the levels of the five needs, people cannot move up to a higher lever if the lower level cannot be satisfied.
Money decreases in importance as we move up the Maslow’s Pyramid. (b) For the Motivation-hygiene Theory, which is also called two-factor theory, Herzberg found that job satisfaction and job dissatisfaction acted independently of each other. Besides, there are certain factors in the workplace that cause job satisfaction, while a separate set of factors cause dissatisfaction. Motivators which give positive satisfaction, arising from intrinsic conditions of the job itself, such as Achievement, Recognition, Work itself, Responsibility,Advancement ,Growth.
Hygiene factors which do not give positive satisfaction, although dissatisfaction results from their absence. These are extrinsic to the work itself, such as Company policy, Supervision, Relationship with boss, Work conditions, Salary, Relationship with peers, Security. According to Herzberg, individuals are not satisfied with lower-order needs at work, for example, those associated with minimum salary levels or safe and pleasant working conditions. Theses individuals look for the gratification of higher-level psychological needs such as achievement, recognition, responsibility, advancement, and the nature of the work itself.
Motivation-hygiene theory, based on the presence of one set of job characteristics or incentives lead to worker satisfaction at work, while another and separate set of job characteristics lead to dissatisfaction at work. Moreover he found that job characteristics related to what an individual does is the nature of the work he performs, having the capacity to gratify such needs such as achievement, competency, status, personal worth, and self-realization, leading to satisfaction. However, the absence of such gratifying job characteristics does not lead to dissatisfaction.
Instead, dissatisfaction results from unfavorable assessments of such job-related factors as company policies, supervision, technical problems, salary, interpersonal relations on the job, and working conditions. As we know that physiological needs can be fulfilled by money, however, psychological needs is fulfilled by activities that cause one to grow. Therefore, we can conclude the money really takes role in Motivation-hygiene theory as it is one of factors affecting job attitude, however, money is less important when we want to achieve our psychological needs.
c) For the Equity Theory, employees seek to maintain equity between the inputs that they bring to a job and the outcomes that they receive from it against the perceived inputs and outcomes of others. The belief is that people value fair treatment which causes them to be motivated to keep the fairness maintained within the relationships of their co-workers and the organization. The structure of equity in the workplace is based on the ratio of inputs to outcomes.
Inputs are the contributions made by the employee for the organization; this includes the work done by the employees and the behavior brought by the employee as well as their skills and other useful experiences the employee may contribute for the good of the company. Individuals who perceive themselves as either under-rewarded or over-rewarded which leads to efforts to restore equity within the relationship. It focuses on determining whether the distribution of resources is fair to both relational partners. Equity is measured by comparing the ratios of contributions and benefits of each person within the relationship.
Payment whether hourly wage or montly salary is the main concern and cause of equity or inequity in most cases. Actually, an employee think that their contributions and work performance are being rewarded with their pay. If an employee feels underpaid then it will result in the employee feeling hostile towards the organization and perhaps their co-workers, which may result the employee not performing well at work anymore. Therefore, we can conclude that money has an important role to equity theory as empolyee hopes that with their contribution on work, they can receive rewards which is usually in relation to money. However, other than mony, recognition from others towards the empolyee’s performance also have an essential role.
(d) For the Expectancy Theory, it is an Integrative approach to indicate that level of effort of individuals depends on the strengths of their expectations that the relationships can be achieved such as Effort-performance, Performance-reward and Rewards-personal goals. Firstly, for Effort-performance, this is a person’s estimation of the probability that effort will lead to successful performance. This estimation is based on the confidence a person has in his/her own capacities to have outcomes.
Secondly, for Performance-reward, this refers to the person’s perception of the probability that performance will lead to a specific outcome Thirdly, for Rewards-personal goals, rewards are whatever might result from a given performance. The reward of personal goals refers to the relative attractiveness or desirability of that rewards to the individual. For example recognition, promotion, or pay raise. Money plays role in expectancy theory as it is one part of the rewards such increasing salary of an employee due to his or her good performance on work.