Which theory suggests that higher pay leads to increased employee motivation?

Taylor's Theory of Scientific Management suggests that higher pay can lead to increased employee motivation. This theory posits that financial incentives are a key driver in enhancing productivity and efficiency in the workplace. Taylor believed that workers are primarily motivated by monetary compensation and that by paying them more, they will be encouraged to increase their output and performance.

This approach emphasizes the importance of establishing clear tasks and providing appropriate rewards for performance, which can lead to higher levels of motivation as workers seek to maximize their earnings. In a broader context, this theory laid the groundwork for understanding the relationship between remuneration and employee motivation within organizations, highlighting the role of economic factors in influencing work behavior.

Other theories, such as Herzberg's Motivation-Hygiene Theory, primarily focus on intrinsic factors and suggest that job satisfaction comes from fulfilling higher-level psychological needs, rather than just financial rewards. Similarly, Maslow's Hierarchy of Needs prioritizes the fulfillment of various human needs, and Pink's Drive Theory emphasizes intrinsic motivation driven by autonomy, mastery, and purpose, rather than external rewards like pay. Thus, while other theories offer valuable insights into motivation, Taylor's framework explicitly establishes the connection between higher pay and increased motivation.