Motivation is a fundamental aspect of organisational behaviour. It drives demanding work processes towards the accomplishment of work tasks and the realisation of organisation goals. Company X is looking into ways to motivate their employees. They are thinking of giving EQUAL annual pay increments to all staff irrespective of their performance and position in the company. They feel that this would be a fair and inclusive way for motivating all their employees.

1. Do you think EQUAL annual pay increments as proposed by Company X will motivate all their employees? Explain your answer with TWO reasons. (10 marks)

2. Assume that you have been appointed as a consultant to advise Company X on how they could increase motivation of their employees. Using a suitable OB theory discussed in our lecture, explain THREE ways on how this could be accomplished.