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The Role of Financial Compensation in Employee Motivation and Performance in The Financial Services Industry

Carroll, Geraldine (2000) The Role of Financial Compensation in Employee Motivation and Performance in The Financial Services Industry. Undergraduate thesis, Dublin, National College of Ireland.

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Abstract

This study undertook an examination of the potential role that money plays in employee motivation and performance, but in particular in the financial services industry. At the beginning of this dissertation, the personal assumption of the author was that money has the potential to motivate employee performance, but only on a short-term basis. Individual needs should be taken into consideration when deciding what motivators to use for staff. After reviewing the literature already available on this subject and the primary research carried out, the researcher found that this view on the potential of money to motivate employee performance did not change, but was enhanced by some other interesting facts.

To begin the research, the author used secondary data which included several , published books, journals and articles which were retrieved from libraries. The secondary data used also consisted of articles from on-line databases and the Internet. The researcher then began to research using primary data. In the data gathering phase, surveys were conducted with a sample of employees in the financial services industry, in conjunction with two structured interviews held with Human Resource Development Managers from two banks.

Based on the results of the surveys and the two structured interviews, this dissertation concludes with an evaluation of the importance of money in employee motivation and performance to a certain extent, while at the same time recognising that money can not be the only motivator. Money can be effective as a motivator to some, but this will only happen if it is perceived as a reasonably certain means of
achieving a goal, there has to a be a definite link between effort and reward. This is why money is such an important factor in attracting people to join an organisation
and, to a lesser extent, in dissuading them from leaving. It is sometimes easier for people to find out what they are worth by making the effort to join another company than for them to learn how their pay is likely to progress in relation to their performance within the organisation.
"To some people money seems to represent social respectability; to others it may mean recognition for achievement; to still others it stands for worldliness, materialism, and the root of all evil". ( Gellerman, 1968 : 65)

For the purpose of this dissertation the author has defined "money" as the means, by which individuals are remunerated for the services they render to a company, in addition to any bonuses received for good performance.

Item Type: Thesis (Undergraduate)
Subjects: H Social Sciences > HG Finance > Financial Services
H Social Sciences > HD Industries. Land use. Labor > HD28 Management. Industrial Management > Human Resource Management > Performance Management > Motivation
H Social Sciences > HF Commerce > Personnel Management
Divisions: School of Business > BA (Honours) in European Business and Languages
Depositing User: Tim Lawless
Date Deposited: 02 Jun 2010 12:20
Last Modified: 19 Aug 2014 16:25
URI: http://trap.ncirl.ie/id/eprint/223

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