There is a controversy whether money is a Motivator or not. Many people argue that the traditional carrot and stick method of motivation still workers today. They carrot has been considered as money and the stick has be~n taken in the form of physical, financial orsocial punishment.
' Money is often more than monetary value. It is a social'medium of exchange. It can also mean status or power. Mariy people in Bangladesh wete engaged ,in insider irading that resulted in his personal profit. Classical JDanagement thinkers and scholars like Taylor, Polock have -tended_ to place money high on the scale of motivators. They consider employees as economic men gain is every one's primary motivation, They designed reward systems for encouraging high performance by workers and mangers, Money is motivator if it fulfills at least three conditions. (a) Money, as money, is likely to beniore important to. people who do ye'! meet their monetary needs. The money' needs of some·people are very urgent. Money is an urgent means of achieving B. minimum stan,dard of living. Money is important because of goods and services that it will purchase. This is the economic value:'of money, For some people money will always be of utmost importllnce, while for others I( may never be. . (b) It is' quite tru~ that; in mosticinds of .0rganiZlltions, meney is ~sedas a means of attracung and. holding qualified people. This is why organizations make their wages and salariCli comPetitive within their industry. Katz and Khan 0')76) maintain that the . money reward must be pe'rceived a~ f!lir anll equitable by the majority organizational member's even those whci 'will never seek the extra i1lCOrne. This is clearly explain"" by 1. Stacy Adans (1983) in the equity theOry of motivation, .' (c) TIie money must be Perceived as directly related to the required extras performance' and . must be received immediately upon completion. ' .. ' (d) It is almost certainly true that, money can motivate only when prospective payment is , hrrge relative to aperson's income, But employees differ in the amount of money .they ' want. Behavioral. scientists; like Elton Mayo, ort the. other hand, tend to place money low, They give argu'ments against money as.a 1J10tivator, Mayo 'and his associates .. foilndthat better physical facilities or increased economic benefit in it were not sufficient motivators in increasing productivity,-. · . '. . ' ' . . There . lire many non::financ'ial incentives such as .employee satisfaction, morale. motivation interpersonal relationships; effectlve ·supervision, and group. dynamic 'might increase productivity, These social needs are 'more'important than money in motivating employees, . . . In reality, however, it may be more advantageous notto view money as the supreme motivator may; but as· one of the many' factors, in, the work environment that affects 'emploYee motivatiOJI, Even though money isn'ot the only motivating force, it has been and . ' will con~inue to be an important·one. Money can be a motivator but not to the exclusion of . other factorS, including the job itself.