According to the latest research both Maslow and Hertzberg are no longer valid, which comes as a shock to most managers who have been trained in both theories for many years. Recent research shows that employees are motivated to perform well if there is a performance culture within the organisation and that requires:
1. That employees feel like meaningful participants in the strategic direction of the organisation, rather than victims
2. That employees embrace change, rather than fear it
3. That employees are performance and outcome focused
The proposition is that managers can't manage culture but they can manage aspirations, and that cultures are always in flux, never a steady state.
The key factors for a performance culture, where people are motivated to perform well are:
Performance pay is an important part of a performance culture BUT it must be seen to be both procedurally and distributively just and FAIR.
Relational rewards (e.g. work / life balance) may be more effective in building a performance culture (rather than transactional rewards: pay / tangible benefits).
Women are more amenable to performance pay. They value it more than men.