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

Motivation often is classified as intrinsic or extrinsic. Students who are motivated intrinsically have an internal drive to succeed and a personal interest in the material. Students with extrinsic motivation engage in activities to obtain external incentives, such as grades or rewards (Sedden & Clark, 2016). Although, instructors note that intrinsic motivation is best for students, many

of us prefer to be intrinsically motivated. We like to have fun on what we do instead of being

Of the many mini theories developed, intrinsic motivation plays a role in workplace situations I have personally experienced. Factors that encourage intrinsic motivation include challenge, curiosity, control, fantasy, competition, cooperation, and recognition. Intrinsic motivation challenges the way we learn, our purpose, interests, and meaning. Intrinsic motivation occurs when there is a generalized interest in a goal and it benefits us when the behavior to achieve the goal is self-imposed (Reeve, 2009).

A situation where I was intrinsically motivated was during school when I did a project I did not have to do. I did the project because I felt it was interesting and that it would be a perfect use of time. The

Intrinsic motivation is the engagement in a behaviour as it is self-rewarding; essentially, executing an activity for its own sake rather than the expectation of a reward. Examples of intrinsic motivation can be applied to various sports and activities, such as: participation in a sport or physical activity because you find it enjoyable, or enjoying the sense of a challenge when completing a puzzle.

Motivation is a key driving force in most human beings and lies hidden to be discovered

Chapter 12 of our textbook is titled “Motivating Employees,” and it encompasses much of what was in Drive. An extrinsic reward is defined as the “payoff, such as money, a person receives from others for performing a particular task.” Extrinsic rewards are what drive the old economy and still influence management techniques within organizations today. These rewards have many benefits but are becoming more and more obsolete in the twenty-first century workforce. The textbook defines intrinsic rewards as the “satisfaction, such as a feeling of accomplishment, a person receives from performing the particular task itself.” Offering only extrinsic rewards is what Pink refers to as “carrots and sticks.” These rewards work well for routine tasks. However, these rewards often stifle creativity (as seen in the candlestick experiment). Modern jobs are increasingly relying on creativity and innovation. Managers can use this knowledge by acknowledging the importance of intrinsic rewards when dealing with employees engaged in more complex

Motivation is an important aspect of everyday life. "Researchers have consistently found that an approach based on extrinsic rewards and consequences actually reduces children's intrinsic motivation to learn" (Solley). Motivation is lost due to the pressure

According to Bateman & Snell (2009), Motivators to employee job performance are centered on extrinsic and intrinsic rewards. Extrinsic rewards are characteristics of the workplace that attract and retain people. They revolve around organization and management policies, working conditions, pay, benefits, and other so-called “hygiene” factors. Intrinsic rewards are motivators that provide employees personal satisfaction in the performance of their jobs such as opportunities for personal and career growth, recognition and the feeling of achievement in the successful completion of a task. (p. 486). Herzberg’s two-factor theory suggests

Pay and Rewards – pay and rewards attract, motivate and retain staff. The employment contract which lists rewards, whether it be pay, bonus or benefits, can remove animosity amongst employees and employers. However, recent research reveals that employees are no longer motivated by a financial reward alone, but

Those that are intrinsically motivated have a bit of advantages over workers who are more predominantly extrinsically motivated. For instance, intrinsically motivated people work on job tasks because they find them enjoyable and interesting. Additionally, there is evidence showing that intrinsic motivation is positively correlated with learning, achievement, perception of competence and self-efficacy. At the same time, it is negatively correlated with anxiety, depression, and frustration. An intrinsically motivated individual will be committed to his or her work to the extent to which the job inherently contains tasks that are inherently rewarding to him or her (Lei, 2010).

Motivation is the number one driving force behind anything and everything an individual does each day. “Motivation is the desire to do the best possible job or to exert the maximum effort to perform an assigned task. Motivation energizes, directs, and sustains human behavior directed towards a goal.” (Honor, 2009). Motivation can determine the outcome of projects, goals, and can set limits on what an individual can obtain or what they believe they can obtain. Motivation often is the deciding factor on how successful a project in an organization is, and an individual’s needs and desires can both influence a person’s motivation greatly. Motivation can also determine how well an individual does in school, college, or university.

Keeping employees motivated in addition to creating incentives and/or additional ways for employees to receive more compensation will create better performance overall within an organization. Contrary if company B gives their employees incentives to perform, without any motivational tactics they probably will not have as many top performances as company A, in addition the company may only seek short term rewards verses have long term success. Lack of motivation for employees within an organization, can cause long term damage for the company’s success. Different things motivate everyone; therefore there should be a system in place to keep employees motivated for the long term success of the company. In the MBM textbook under the concept of incentives, compensation, and motivation, there are a couple of different views of how it should be applied within an organization. We will discuss The Social Role of Profit, Personal Profit and Losses, and the way Market-Based Management view how incentives, compensation, and motivation should be applied and the things that effectively drive employees’ actions while at work.

One of the first authors that dealt with the sources of motivation was Frederick Taylor who focussed on the overall productivity of an organisation. He linked this productivity to the effort an employee puts into their work which in turn is dependent on monetary rewards (Taylor, 1911). This theory was established in the context of the industrial age and thus is outdated for today’s analysis but it still provides a basic assumption which is often referred to by other authors. The total neglecting of a worker’s intrinsic motivators is a starting point for discussion for authors that conducted research in that area after Taylor.

Being rewarded and recognised for their work or contribution is what keeps an employee motivated to work towards achieving the organisational as well as personal goals. When the employees is motivated by rewards, they will have job satisfaction consequently increasing the productivity of the organisation. It necessitates the need of managers to pay more attention in understanding their employees and come up with suitable types of reward systems for the organisation so that the employees are intrinsically and extrinsically motivated all the time. The hypotheses that I put forward here is to support this statement that effective reward management is critical to