Wages and Fringe Benefits Free Essay Example, 5250 words

The theory works well within a firm or organization. It does not explain the performance and output of new employee or any other employee of the same rank in the different organization. The supports employees get in different organizations, resources available to them, level of authority and autonomy all these vary from organization to organization. These have an impact on the performance of any employee. Greater the chances to grow within the organization greater will be the level of effort one puts in. Compensation is one of the major factors of motivation. It is the basic motive for which an employee works. Compensation provides monetary power which is required for individuals to survive and maintain social status. It can be easily explained with Maslow s pyramid of needs. At the stage of self-actualization, which is this case will be the position of CEO in a company, who usually on the basis of age, experience and achievements reach to a position near to self-actualization, it i s difficult for organizations to find things motivating a person at this category. So far the empirical test on the tournament theory has been of two main types. We will write a custom essay sample on Wages and Fringe Benefits or any topic specifically for you Only $17.96 $11.86/page The second way is that the second individuals' performance gets deteriorated and he is underperforming while the first individual has just maintained the performance but has not put any effort to improve it.