Motivation - Extrinsic and Intrinsic

Topics: Motivation, Reward system, Expectancy theory Pages: 3 (1025 words) Published: April 8, 2014

ESSAY #2
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 most successful companies operate with balanced systems of intrinsic and extrinsic reward. Salespeople’s outcomes are largely dependent on individual abilities and expectations. Salespeople have high levels of expectancy. Underlying all sales work is the assumption that if hard work is applied then superb performance will follow. The expectancy assumption carries further to include instrumentality, that conclusion is supported only if reward follows effort. Successful companies realize instrumentality in the sales force by providing high levels of reward for effort. Sales teams are rewarded if sales output is high. When Sales team’s output is low sanctions are enacted by withholding of extrinsic reward. Withholding extrinsic reward increases the valence perception of extrinsic reward. Organization’s that determine what extrinsic rewards increase and decrease valence the knowledge is used to leverage positive outcomes. Equity theory is constantly at play in sales. Groups not rewarded equally develop perceptions of imbalance of equity theory. Organizations work to apply reward justly and equally depending on group performance and not on group preference. Sales group perceptions of equity vary depending on many factors. Sales...
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