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maximising
their earnings. They may like to earn more but are probably more 
concerned about 
earning enough 
and knowing that their pay is fair in comparison with the pay of others 
both inside and outside the organisation. 
Pay is a 'hygiene' factor: it gets taken for granted, and so is more often a source of dissatisfaction than 
satisfaction. However, pay is the most important of the hygiene factors, according to Herzberg. It is 
valuable not only in its power to be 
converted
into a wide range of other satisfactions but also as a 
consistent 
measure of worth
or value, allowing employees to compare themselves and be compared 
with other individuals or occupational groups inside and outside the organisation. 
Research has also illustrated that workers may have an 
instrumental orientation 
to work: the attitude 
that work is not an end in itself but a means to other ends, through earning money. 
BPP Tutor Toolkit Copy

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PART D: LEADING AND MANAGING INDIVIDUALS AND TEAMS 
 
390
 
Pay is only one of several intrinsic and extrinsic rewards offered by work. If pay is used to motivate, it 
can only do so in a wider context of the job and the other rewards. Thanks, praise and recognition, for 
example, are alternative forms of positive reinforcement. 
QUESTION 
Pay as a motivator
 
Herzberg says that money is a 
hygiene
factor in the motivation process. If this is true, it means that lack 
of money can demotivate, but the presence of money will not in itself be a motivator. 
How far do you agree with this proposition? Can individuals be motivated by a pay rise? 
 
6.4 Performance-related pay (PRP) 
Performance-related pay (PRP
) is a form of incentive system, awarding extra pay for extra output or 
performance.