Project Team Rewards
Literature Review
16
For instance, value theories explain that people value different things with a different
weight. Some people value money higher, some lower. Equity theory explains that people
have different perceptions of fairness. Some employees might perceive it as fair if all
employees doing the same job get the same salary. Others might perceive it as fair
if the
better performing employees receive a bonus. Need theories consider that people have
different levels of needs and these needs require satisfaction. Consequently, money is
more or less important, depending on how suitable money is for satisfying the currently
unsatisfied need.
Overall, motivation theories are complementary rather than contradicting. Authors such
as Porter & Lawler (1968), Katzell & Thompson (1990) and recently Locke & Latham
(2004) integrated most of the existing theories into single models of motivation. These
models are comprehensive and plausible (see
Appendix II:
Integrated Model of Work
Motivation, p. 87, for an example). Nevertheless, the fact that different integrated models
exist, all with slight variations, indicates that a holistic view on motivation is complicated.
The only theories not included in any of the three integrated models are Taylorism and
Herzberg’s two-factor theory. Taylorism is criticised by both, extreme reward opponents
and modest reward proponents as much too simplistic since it considers money as the one
and only thing that can motivate employees (e.g. Kohn 1993a, Sprenger 2002, Arthur
2001, and Wilson 2003). Herzberg’s theory is strongly criticised by the reward
proponents. They claim the theory’s empirical evidence is weak and often even wrong
(e.g. Furnham 1997 and Opsahl & Dunnette in Armstrong & Murlis 2004). In addition, the
theory ignores individuals’ personalities, needs, values, and feelings. Armstrong & Murlis
(2004:63) conclude, “Herzberg’s two factor model does not […] provide a reliable basis
for developing pay policies”. Due to time limitations, this thesis’ research could not
investigate the validity of the studies supporting Herzberg’s theory. However, the fact that
the extreme reward opponents consider only one motivation theory without justifying why
the others are widely ignored let the opponents’ argument seem weak.
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