Introduction
Motivation is an internal engine that drives an individual’s enthusiasm, feeling, interest or disinterest in a task. It can determine how quickly or slowly someone performs a task and has different meanings for different people.
According to employment surveys compiled over 40 years, the most popular motivating factors for workers were to be appreciated and recognised, to perform interesting work, and to be rewarded in the form of good wages (Wiley, 1995, p.269). In the human resources realm staff motivation translates into compensation. Compensation not only means pay. It also relates to other entitlements such as leave flex or even perks of the job.
Compensation motivates by meeting peoples needs. However, when poorly managed, it also may discourage workers. Managers must develop appropriate ways to compensate their staff befitting of the work and the work environment.
The intention of this report is to:
• Gain an overview of compensation.
• How it meets the needs of employees.
• The importance of perceived equity.
• Specific methods of compensation and the impact compensation might have on employees.
Motivation
For employees to achieve their maximum productivity within an organisation, motivation towards employees must be applied. Deci states that there are 2 types of values by individuals; being intrinsic and extrinsic (2004). Intrinsic refers to personal intangible values such as an interest in the industry, achieving goals and self satisfaction. Extrinsic values refer to physical rewards that employers can give, such as money and promotions.
Intrinsic
Phillips reveals that many strategies can be adapted to acco ...