Differences between 'intrinsic' and 'extrinsic' rewards in relation to employment

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There is nothing harder than influencing the others to behave the way you want them to, and this is exactly the duty of every manager. His/her job is to make people perform in the best interest of the organization which is quite a challenging objective. While aiming at maximum productivity, management should be well aware that job performance is a function of ability and motivation ( And though the process of improving qualification is time consuming and expensive as it involves training, education and experience, the motivation on the other hand may be enhanced quickly and efficiently.

Nevertheless, motivation is a complex issue as "individuals differ enormously in what make them happy- for some
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It is usually easier to set up or arrange extrinsically motivating conditions than to increase one 's intrinsic interest and satisfaction in some behavior. So, it isn 't surprising that our culture attends more to providing social-economic pay offs than to increasing intrinsic satisfaction at work.

Managers are usually aware to some extent of the ways in which both intrinsic and extrinsic types of motivation affect performance and work satisfaction, but there are many complexities in how these different types of motivations and their relevant rewards affect behaviour. One of the most subtle and demanding complexities has been found to occur when extrinsic rewards are given for performance in a task which would otherwise have been undertaken purely out of interest ( But effects of the interaction are not simple and have been a subject of extensive debate in recent years. How extrinsic rewards affect intrinsic motivation obviously has many implications for the management of incentives for work and study where both extrinsic rewards and intrinsic motivation are very often found together.

When people are intrinsically motivated they tend be more aware of what they are doing, while giving careful attention to complexities, inconsistencies, novel events and unexpected possibilities. They need time and
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