Motivation and performance are very complex issues affected by many factors.

No one factor can guarantee motivation or performance in the absence of other critical factors see my article on Managing for Peak Performance at http: Money cannot be effectively substituted for good management.

Some people think that money can't be used to motivate employees and that is true for some employees, but for a large percentage of the workforce it does not have to be that way.

How I made over $ last month with EzineArticles | hubpages

Studies show almost everyone is motivated by money to some degree, many to a moderate degree, and most to a great degree when compensation is properly designed. Some psychologists would argue that money doesn't change behavior because they do not consider it properly termed a "motivator", but rather they call it a "director" of behavior.

This is a semantic argument. The idea is whether money can be used as a tool to change employee behavior in a desirable direction.

How to make money out of Ezinearticles? - Internet Marketing Forum

It is unfortunate that in most companies and for most jobs, pay is a small factor in managing and changing employee behavior. However, inadequate use of incentive plans and problems with compensation design and strategy are usually to blame. Behavioral scientists, employee and management surveys, and my client experiences show compensation can be a strong driver of employee behavior under the right circumstances when properly designed.

Top 5 Places to Work Online and Make Money – Jamie Northrup

In a national survey of randomly selected U. When stratified ezinearticles how to make money age should i buy genesis energy shares there was statistically insignificant difference by age group. Gen X and Gen Y were no different than Baby Boomers in this respect source: In a study of companies with performance reward compensation plans covering 1.

In jobs where significant variability in pay occurs in compensation and where it is closely related to key performance factors, then pay can be a big motivator. Many companies that put in company-wide incentive plans have gotten great productivity results with well-designed plans.

Clients of mine that have gotten a big change in behavior following the implementation of the incentive plan include PacifiCare Health Systems about claims processorsthe sales force for a wholesale steel distributor, the sales force for an air conditioning manufacturer, and the Juanita's Foods executive team.

These clients have told me that they attribute much of the change in behavior to the incentive plan. The head of claims processing at PacifiCare said that some of their slowest processors quickly became cse stock brokers the fastest processors because of the incentive plan.

Most though admittedly not all are money motivated when they perceive the target is achievable and within their reach and where the rewards are also significant for target achievement. It is a shame for an employer to ignore the motivational effect that can be achieved with payroll dollars since it is such a large expense item for most businesses.

Failure to tie pay closely to achievement of objective and realistic performance measures. Failure to design variances in pay related to performance that are large enough to be perceived by the employee as worth the effort.

Nevertheless, company wide incentive plans can be powerful in the right circumstances. Another major impediment is when employee motivation and effort, is overwhelmed by the impact of poor business strategy or poor business environment i.

Compensation design which goes far beyond the issue of labor market competitiveness is not a panacea for performance problems nor is it the silver bullet for business success. However a well-designed incentive plan has the potential to be a powerful tool not just a "hygiene factor" that businesses should not ignore.

National survey of employees attitudes about work and pay. David Pierce ACA Journal, Winter An excellent article that summarizes a large body of research on the impact of rewards on employee behavior.

Reviewed effectiveness of variable pay plans in companies over a 3 year period. Mae Lon Ding, CCP, MBA President Personnel Systems Associates E. Moonridge Lane Anaheim, CA.