Remuneration. It affects employees motivation to work and their commitment to work: A dissertation submitted in partial fulfilment of the requirements for a Post Graduate Diploma in Commerce at Lincoln University

Abstract

This study initially examines theories of motivation that have been applied to world in recent times. Following this examination, the study looks at the ways some of these theories have been applied in a work situation, by studying a small timber firm in Christchurch. The case study showed that each worker in the small timber firm was motivated to work in a different way : i) For the three 'workers' in the firm, the main motivation to work was money; yet other motivators, such as the bonus payment scheme, company t-shirts and sweat-shirts, and increased responsibilities, also act as strong motivators. Some of these were separate to each employee, and were found to be very influential in making each employee work harder. ii) The production manager was not motivated to work primarily by money. He claims that as long as he is able to meet his financial commitments he will be content with what he is being paid. However, other factors in the work environment are important in the motivation of this employee. The challenge of the job, the creativity he is able to apply to the job and the large responsibilities this employee has, are major factors in motivating this man. iii) The owner/operator cares strongly about the fate of this organisation. For this reason he is interested in money as a means of keeping this business running. Part of the motivating force behind this man is the success of his business. He wants to be perceived as a 'successful businessman'. Money in terms of profit is an important goal motivating the owner. He is very proud to be part of this organisation and is extremely glad that he chose this type of firm to operate. Despite this he does not feel totally loyal to the organisation. The main motivating force behind this man is the life style that he is able to live by owning his own business. The flexibility that this affords him is important. The owner/operator is also motivated by the success of his employees. He wants to improve their skills so they can move on to better jobs and lead better lives. Being able to influence the future success of these people, is also a strong motivator. The owner/operator is able to apply different motivating techniques to each worker. These apply to specific things that motivate each employee. The result of applying different motivational techniques to each individual has been that total production is well above that expected from 'normal' employees under 'normal' conditions. It would be expected that in larger firms, such as a national organisations (eg Ministry of Agriculture and Fisheries and the New Zealand Post Office), employers would be unable to apply strategies that appeal to individual workers. Instead 'theories' are likely to be applied that appeal to the majority. The result of this is often dissatisfaction, low worker motivation and low commitment In terms of the ability to motivate individual staff members and promote commitment to the firm, small organisations have a great advantage over large organisations. This study also examines the predictors and outcomes of organisational commitment using Porter's Organisational Commitment questionnaire to survey employees of a small timber firm. The results showed that significant predictors that could be used to assess commitment included absenteeism, desire to remain in the firm, intention to remain in the firm, education, and awareness of the economic situation. Other factors influencing commitment to the firm were aspects of the job itself, fellow workmates, promotional opportunities, supervision and pay.