Motivation - Extrinsic and Intrinsic

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Motivation: Extrinsic to Intrinsic

Motivation is a key factor in determining business success or failure. Successful organizations relentlessly seek to operate with a clear understanding of employee needs , and develop specific focus’ on how to meet them. Two key theories in organizational motivation are expectancy theory and equity theory. Both theories focus on the outcomes of a given decision or system rather than on individual employee needs. The goal of both process theories is to increase output.
Some industries are better at applying process theory than others. In high pressure sales industries process theory is evident. Computer companies run operations based on equity and expectancy theory. The
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Positive feedback cycles occur when sanction is properly implemented.
Extrinsic reward for incorrect reasons is deadly to organizational value creation systems. Extrinsic reward provided for performance of expected task decreases the value of future extrinsic reward and creates expectation of future extrinsic reward for routine tasks. Expectation created through over rewarding ends in withholding of high levels of extrinsic reward for average performance and is perceived as sanction. Instrumentality is decreased as effort is perceived as unrewarded. Effort is reduced to poor performance levels so that effort is matching perceived instrumentality. Successful organizations implement highly structure extrinsic reward systems that deliver consistent feedback regarding instrumentality to avoid over rewarding.
Improperly controlled sanction is deadly to organizational efficiency. Sanction that is implemented through withholding of extrinsic reward destroys intrinsic reward and motivation if applied incorrectly. Sales teams that do not have the appropriate materials, knowledge, or support structure to perform at a high level should not be sanctioned. If groups are sanctioned through withholding of extrinsic rewards in situations in which other factors are the key reasons for failure group motivation is annihilated. Sanction for failure to attain success that is not attainable removes all intrinsic motivation.
Successful organizations focus on
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