Does intrinsic or extrinsic motivation work?

Topics: Motivation, Employment, Reward system Pages: 13 (3255 words) Published: September 22, 2013
Introduction There are various types of rewards to motivate employees in today's workforce. Organizations are interested in understanding the ways to recognize and reward employees so as to sustain and improve employee’s performance in the long run. Hence, the research question that our group came up with would be: “Does extrinsic rewards motivate people?”

The objective of the report aims to gain a detailed understanding of the underlying reasons that motivates the employees by researching on their thinking and behaviours. The report will cover four main sections namely; Introduction, findings, analysis and conclusion and recommendations. The findings section was derived from literature review and survey. Literature review will consist of the current knowledge to extrinsic and intrinsic rewards that help motivate people. It includes the additional findings and provides substantial in depth evaluation of secondary data to the research question. Upon gathering of results, data were analysed through their similarities, differences or by identifying the pattern of responses. We interpret the data collected and identify the underlying reasons that motivate employees and provide recommendations for organization to counter the underlying problem. Literature Review

Motivation is an extra boost that keeps an individual driven to act in a certain way in attaining goals. Work motivation is certainly an important phenomenon as it strongly influence various work related (Karatepe and Uludag, 2007) and attitudinal outcomes (Majid et al, 2010).

Most organizations implement extrinsic value such as tangible money as reward. It is believed that it will help to motivate employees but in the long run, intrinsic rewards such as sincere praise and personal gestures are far more effective and  economical than money alone. Intrinsic program has a greater impact; ‘the level of motivation of employees increases when employees get unexpected recognition, praise and salary increment.’ (La Motta, 1995). It is also recommended that organization should focus on intrinsic motivation, as this is usually associated with relatively highly valued constructs, such as competence, personal causation, and self-determination and autonomy (Carton, 1996). According to self-determination theory (Deci & Ryan, 1985), autonomy, relatedness and competence are three intrinsic needs that will lead to greater satisfaction, performance, and general well-being if fulfilled. Herzbeg’s two factor theory proves that motivation is intrinsic and job content factors such as achievement, recognition and advancement have to be present for satisfaction to take place. Job context factors such as working condition, fair policies and security would lead to dissatisfaction if intrinsic rewards are absent. Money is considered as a hygiene factor that does not motivate. Hygiene factors are equally important. Without hygiene factor, the absences (of money) lead to dissatisfaction at work. Organizations often misunderstand and claim that employees are motivated to do something in return for incentive but they in fact are motivated for movement. The desire to move is a built-in drive, coming from within the employee. Motivating employee intrinsically would stimulate creativity, flexibility and spontaneity (Deci & Ryan, 1985) However, money is also considered as the strongest motivators by Mani and aids as a short term incentive, pushing employees to work hard as there is strong linkage between performance and result. Providing pay for performance compensation enhance employee motivation and performance (Delaney and Huselid, 1996). It was suggested that the decision of an employee to join an organization and perform well depends, upon the prevailing rewards and incentives system (March and Simon 1966l Rosenstiel 1975; Weinert 1998) Robbins (2001) asserts that promotions create the opportunity for personal advancement and increase their level of responsibility. This conveys that rewards...

References: Article 5
Judy Cameron, (1994) “Reinforcement, Reward, and Intrinsic Motivation: A Meta-Analysis
Article 6
Joanna Danish, Rizwan Qaiser, (2010), "Impact of Reward and Recognition on Job Satisfaction and Motivation: An Empirical Study from Pakistan", in International journal of business and management (1833-3850), 5 (2), p
Article 7
Md Zani, Rosliza, (2011), “Comparing the Impact of Financial and Non-
Yurtseven, Gulten and Halici, Ali, (2011), “Importance of the Motivational Factors Affecting Employees Satisfaction”, in International Business Research, Volume 5 Issue 1, p72-79
Article 9
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