Today's work force presents management with many new problems because of the employees' socioeconomic background. An understanding of this background and of employee needs will lead to a more effective management of human resources. (AN)

Although management has built remuneration policies on the belief that money does not motivate personnel, the author states that the best way to encourage high performance is still money if administered correctly. He discusses behavior theories, incentive/contingency principles, the weaknesses of many merit pay schemes, and factors in employee…