BMIS – L1 – SA – Q15.1 – Motivation

Which one of the following statements is correct in relation to monetary rewards in accordance with Herzberg’s Two-Factor theory?

A   Pay increases are a powerful long-term motivator

B   Inadequate monetary rewards are a powerful dissatisfier

C   Monetary rewards are more important than non-monetary rewards

D   Pay can never be used as a motivator

B

Explanation:
According to Herzberg’s Two-Factor Theory, motivators (e.g., achievement, recognition) drive job satisfaction, while hygiene factors (e.g., pay, company policies) prevent dissatisfaction when adequate. Inadequate monetary rewards act as a hygiene factor, causing dissatisfaction if not met, but they are not powerful long-term motivators. Option B correctly states that inadequate monetary rewards are a powerful dissatisfier, aligning with the theory. Option A is incorrect because pay increases are not long-term motivators. Option C is wrong as the theory does not prioritize monetary over non-monetary rewards. Option D is false since pay can influence satisfaction when adequate, though it is not a primary motivator.