Extrinsic and Intrinsic Motivation of Employees in Organizations

Organizations are constantly challenged how to motivate their employees. Some companies may offer physical rewards to keep employees satisfied including pay raises and bonuses. Physical rewards that are offered by the employer would be considered exinitic rewards. Daft (2015) describes extrinsic rewards as external rewards given by another person and fulfill a basic need. In contrast, intrinsic rewards do not offer physical bonuses. Daft (2015) describes intrinsic rewards as internal satisfaction such as completing a mission and fulfills the need for accomplishment. Both rewards are useful to keep employees motivated This paper will highlight on extrinsic and intrinsic motivation in the workplaces, the advantages, and how I would apply rewards in the workplace.

Extrinsic and Intrinsic Motivation in the Workplace

Extrinsic and intrinsic rewards can both be applied to motivate employees in the workplace. Extrinsic rewards consist of extemal rewards such as pay raises and fulfill lower needs on Maslow’s hierarchy of needs including psychology and safety (Daft, 2015). Offering extrinsic rewards can motivate employees to perform better because they will be motivated to satisfy their needs.

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For example, if a company offers fringe benefits such as a car the employee will then fill motivated to perform well.

In addition to extrinsic rewards, intrinsic rewards can also motivate employees in the workplace. Intrinsic rewards differ from extrinsic because they are internal fulfillment however, both rewards serve same the same purpose—motivation. Gov (2015) sates, “Intrinsic motivation is about passion and positive feelings that people get from their work. These feelings reinforce and energize employees’ self-management efforts and make work personally fulfilling” (p.

104). Unlike extrinsic motivation, intrinsic motivation is internal satisfaction. There are not physical incentives with intrinsic motivation, One type of intrinsic motivation is the freedom of choice in the workplace. When an employee has the freedom to use their own judgment this is fulfills self-determination (Gov, 2015). In my workplace, | am rewarded with intrinsic rewards. When providing customer service, I am trusted to use my own judgement to make the customer happy. For example, if a customer requests a discount 1 can often apply a 10% to their invoice. My company trusts me to use my judgment to create strong relationships with our customers. Having the freedom to make choices and not always need approval is fulfilling because it makes me fee! valued.

Two Advantages for Extrinsic and Intrinsic Motivation

The first advantage of extrinsic motivation is an increase in job performance. One study on business performance and rewards show that extrinsic rewards often had a positive effect on job performance (Ozutku, 2012). | have witnessed an improvement of job performance due to extrinsic rewards in the workplace. For instance, in my company extrinsic rewards are applied monthly to keep sales reps motivated, Offering incentives such as pay bonuses motivate the employees to sell as many books as possible. When incentives are offered the overall job performance improves.

The second advantage of extrinsic motivation is it can also fulfill intrinsic rewards. For instance, when my company offers bonuses or contests it not only motivates the employees to eam the bonus but if they win, it fulfills the need of accomplishment. Suiving to sell the most books can earn the employee a bonus and acknowledgment of accomplishment.

An advantage of intrinsic motivation is self-accomplishment. As mentioned earlier, I am rewarded with intrinsic rewards in my workplace. Having the freedom of choice makes me feel of value to the company. Being of value creates overall higher job satisfaction, Studies show that employees with high levels of intrinsic rewards are highly valuable because they become internal markers for their organization (Gov, 2015). Providing intrinsic rewards create happy employees who will perform to their fullest.

Secondly, intrinsic rewards create a positive work environment and thriving workforce. Gov (2015) describes a workplace with intrinsic rewards as fun, challenging, prideful with quality results. Providing intrinsic rewards creates a healthy thriving work environment, Daft (2015) defines a thriving workforce as a satisfied and productive
environment which creates a better future for the organizations and the employees. Using intrinsic rewards will create a thriving workforce which will overall benefit the performance of the company.

Using Extrinsic and Intrinsic Rewards as a Motivational ‘Too!

As a leader, I would listen to my employees and use a combination of extrinsic and intrinsic rewards. I believe using a combination of both rewards will be most beneficial to succeed as an authentic leader, Based on a research study Gov (2015) states, “Asking employees what motivates them, listening and acting based on their responses is very
important for shaping organizational reward policies and achieving the right balance between extrinsic and intrinsic rewards (p. 122). I plan to ask employees what their feelings are and utilize active listening within my organization. Using extrinsic rewards, I would be likely to offer promotions. believe that offering promotions will motivate employees to work hard. This also can fulfill their intrinsic rewards because it is a sense of accomplishment.

Conclusion

Extrinsic and intrinsic rewards both motivate employees. The rewards differ but their purposes are similar. Extrinsic rewards provide physical incentives such as pay raises and intrinsic rewards fulfill a higher need such as sense of accomplishment (Daft, 2015). Using a combination of rewards will motivate employees in the workplace. In conclusion, rewards benefits the employees because they provide motivation and beneifit the organization because job performance increases.