Impact Of Salary On Job: Interrelationship Between Compensation, Motivation And Performance

Article 1: Monetary Affect on Motivation

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Objective:

To identify the impact of salary on job

To identify whether only money is responsible for motivating employees

To identify the interrelationship between compensation, motivation and performance

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Method:

Secondary data collection method with qualitative analysis

Deductive approach undertaken by reviewing empirical articles

Descriptive analysis was done covering two major meta-analysis-

 Meta-analysis by Tim Judge and colleagues

Classic meta-analysis by Edward Deci and colleagues

Article 1 : Monetary Affect on Motivation

Argument

After conducting the Gallup’s engagement research it was found that there was no significant impact of pay level on employee motivation

Explicit use of extrinsic rewards creates a risk of diminishing motivation

Job performance can be better predicted through intrinsic motivation´

Conclusion:

Personality of employees indicates their attitude towards job performance irrespective of pay scale

Competent manager and effective leadership style helps in creating motivation Article 2: Human Resource Management and Motivation

Objective:

To identify the HRM condition in Bosnian and Herzegovinian companies

To showcase the current human resource development status´

Method:

Primary data collection method using quantitative data analysis

Survey was conducted using 193 employees from Bosnian and Herzegovinian companies

Descriptive analysis has been done using statistical method involving SPSS tool 

Article 2 : Human Resource Management and Motivation

Argument:

Employees are not satisfied with their roles and responsibilities

Employees are not given training and development sessions

Poor leadership style and communication gap between different levels of associates creating disparity

Conclusion:

Since employees are not satisfied and well-trained, they are getting demotivated

Demotivation is impacting on job performance and ultimately job-security is hampered

Strategic human resource management concepts are to be implemented so that employees are motivated Contribution of articles to the topic

Motivation does not completely depend on pay scale

Employee satisfaction, training and development, attitudes and personality on individuals greatly construct motivation

Extrinsic motivational factors such as rewards can be considered to be short-term in restraining motivation

Compensation does not directly ensure motivation however, effective leadership style helps in developing and restoring employee engagementReferences of your two articles

Article 1: Chamorro-Premuzic, T. (2013). Does Money Really Affect Motivation? A Review of the Research. Hbr.org. Retrieved 20 January 2018, from .

Article 2: Ozlen, M. K., & Hadziahmetovic, N. (2014). The role of human resource management in employee motivation. European researcher. Series A, (5-2), 969-979.

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