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Project Team Rewards
Literature Review
(Mansfield & Odeh 1991). These differences explain why different people behave
differently in the same situation (Deci 1992 and Parkins 1996). Modest reward proponents
argue these differences also influence employees’
reward preferences. Many of the
motivation theories support this argument (see Table 5,
p. 15,
and Table 6,
p. 17,
for a
complete overview of all theories). 
Table 5: Motivation Theories I
Developed by Taylor in 1911. Employees are seen as rational "human men" who
only care about money. The work itself is not important. Accordingly rewarding
(and punishing) is the best an employer can do. The concept is criticised but still
(successfully) applied on simple piecework jobs in development countries or in
call centres.
Armstrong (2002)
Beardwell et al. (2004)
Taylor (1911)
Wright (2004)
Developed by Mayo 1933. The theory focuses not only on the economic needs
such as money but on social needs too. Work has to be interesting and attractive
to get high employee motivation.
Beardwell et al. 2004
Hierarchy of
Developed by Maslow 1943. Humans have 5 basic needs classified into two
categories. Psychological Needs, Safety Needs and Social Needs are the
Deficiency Needs. Esteem Needs and Self Actualisation are the Growth Needs.
These needs are hierarchically ordered and the lowest need has to be completely
satisfied before the next higher one can be satisfied etc. Most of the needs can
be but not have to be satisfied by money.
Armstrong (2002)
Furnham (1997)
Maslow (1943)
Developed by Alderfer 1972. Similar to Maslow's Theory. Humans want to satisfy
their three needs Existence (similar to psychological and safety needs),
Relatedness (similar to social needs) and Growth (similar to self-actualisation
and growth needs).The three needs do not have to be satisfied in a specific
Armstrong (2002)
Furnham (1997)
Needs and
Developed by Murray 1938. Humans have 20 different needs. These needs can
support each other or conflict. That means be satisfying one need (e.g.
affiliation) a conflict arise with another need (e.g. domination).
Furnham (1997)
Need Theory
Developed by McClelland 1975. Humans have the three needs Achievement,
Affiliation, and Power. Different individuals have different levels of these needs.
Related to rewards the implication is that different people probably need different
Armstrong (2002)
Rad & Levin (2003)
Developed by Herzberg 1968. Six factors can motivate employees:
1. Achievement 2. Recognition 3. Work Itself 4. Responsibility
5. Advancement and 7. Growth. On the other hand so called hygiene factors can
only make people satisfied but not motivated. These factors are 1. Company
Policy and Administration 2. Supervision 3. Relationship with supervisor, 4.
Work Conditions 5. Salary 6. Relationship with peers 7. Personal Life 8.
Relationship with subordinates 9 Status and 10. Job Security. The theory is
often cited by reward opponents but highly criticised from reward proponents.
Armstrong (2002)
Beardwell et al. (2004)
Furnham (1997)
Herzberg (1968)
Wright (2004)
Table 5: Motivation Theories I
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