Extrinsic motivation results from our desire to gain rewards or avoid punishment for fulfilling a behavior or activity. A company’s motivation for forcing employees to behave in a particular way does not originate from their own desires; it comes from either their desire to receive something in return, or to avoid reprimands or losing their jobs. The importance of money cannot be denied. A poorly managed remuneration plan will dissatisfy and demotivate employees. The bottom line is that monetary reward no matter whether that is salary or bonus does not motivate people intrinsically or meaningfully. For employees to achieve and sustain self-motivation, compensation alone cannot satisfy their needs, even as an external motivator. There is no doubt that money motivates employees; however, to say that it is the primary motivation is controversial. To find answers, it is important to put this discussion in perspective. A variety of factors must be considered, including the scope of the analysis, the types of employees, and their basic needs. There is a divide between critics and experts on this issue. According to the classical school, motivation can still be achieved using carrots and sticks. Physical, financial, or social punishments have been used as the carrot and the stick. Because it’s a necessity, it’s important. It is impossible to have anything without money. To be happy you need money, even if it’s just the sense to have a roof over your head and pay your electric bill. Even simple things require money. For example. If someone loves reading and reading brings them happiness… Well they need money to buy the books.