ESSAY QUESTION:
"Monetary compensation is the most powerful stimulus for improving employee productivity."

Discuss the extent to which you agree or disagree with the position stated above. Support your viewpoint using reasons and examples from your own experience, observations, or reading.


MY RESPONSE:
Monetary compensation is an important stimulus for productivity, but it is not the most powerful. Other important parameters are career aspirations, flexibility,work atmosphere,mentoring etc

When a tree grows, it keeps on growing the direction of the sun. Similarly a human beings child learns from his surroundings. An employee will get a salary in month end. But getting the most out of it before the month end depends a lot on the surroundings.


The concept of brain drain come's to my mind when we talk about money. Today also dollar rules and most of people in the 1950-1990 have gone to US for making money. If such was the case still today, then how come BRIC countries have resisted the recession. It is just because people of this countries have thought something behind money and each country is prospering.

Finally lot of people move out because they do not get proper role or work atmosphere they wish too. A recent monster.com survey states that matching right aspiration with candidates is the most important parameter for HR and leads of a company apart from the salary

I might be criticized for saying that money is not the important parameters. Some might also give a statistics on the attrition rate of people who have quit for the sake of money. The question over here is employee productivity. A person who just works for a money and is ready to jump to another place for a better money, can never be part of future of a company.


To conclude money is a necessity for a bread earner. Thats where the necessity of it ends. An employee with lots of money and with no respect, can never be truth to himself or the company. The best results are achieved when u believe in your self and there is proper guidance. A money without a vision can never serve the purpose. the best example is the dacoits who do not have any money but their leader guides them to get their work done