What motivates an employee to work hard? If you ask an economist, the answer is self-interest. Work is only a means to an end and an employee will exert higher effort only to the extent that the monetary compensation for it is sufficiently attractive. If you ask a behavioral theorist, the answer is that work itself is fulfilling. Having a stimulating work environment with job enrichment and autonomy motivates an employee to work hard.
Interestingly, there is very little dialogue between these two perspectives, and Markus Christen, INSEAD Assistant Professor of Marketing, David Soberman, INSEAD Assistant Professor of Marketing and Ganesh Iyer, Assistant Professor of Marketing at the Haas School of Business, bridge the gap, combining these two perspectives. In their recent working paper, they examine the effect of various job factors on two specific criteria: a firm’s profit and an employee’s overall satisfaction or utility from the job.
Authors: David Soberman, Ganesh Iyer, Markus Christen
Source: INSEAD Knowledge
Subjects: Human Resources, Organizational Behavior
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