Motivation, as defined by Gupta (as cited by Mohommed, 2016), is the process of inspiring or inducing people to take the desired action. It's also the act of motivating people to work hard in order to achieve the organization's goals. Employee motivation requires in-depth insight from both the employer and the employees. In this regard Ajila,(2004) argued that the best means of understanding workers' attitudes towards rewards and performance is to consider the social meaning of work. Employees' and employers' short and long-term goals may have varying effects on performance and performance in this regard. For employees to give the best of their effort, they have to be rewarded. Rewards are regarded as the best way to achieve this. According to Aktar,(2012) rewards are one of the important elements used to encourage employees to contribute their best effort to generating innovation ideas that lead to better business functionality and furthermore, improve companies' performance both financially and non-financially. Organizations can also gain more overall performance benefits from their rewarded employees.
Figure 1.0 : Conceptual framework
(Edirisooriya, 2014)
Business organizations use many types of rewards to enhance the workers performance. However, it is not yet clear as to which type of rewards in particular has the most effective impact on people reactions and performance (Mohommed, 2016). Rewards have two broad types; extrinsic and intrinsic rewards are also called financial and nonfinancial rewards (Zeeshan & Zain, 2013)
Intrinsic rewords - Non-physical rewards are defined as intrinsic rewards. They can't be seen or touched, but they have a strong emotional bond with the employees (Ayesha, 2015). To look at it another way, intrinsic rewards are the feelings of satisfaction that come with completing tasks. Intrinsic reward is related to job performance since it is provided when a task is completed successfully. The rate of intrinsic rewards depends on the success rate. Different people perceive things differently, hence there are several types of intrinsic rewards, including,
• Sense of achievement
• Words of praise from the seniors
• Recognition
• Taking pride from the job
• Work freedom or autonomy
Extrinsic rewards - These rewards are the physical ones that come from an external source (employers) only & that have a financial weight. A properly designed extrinsic reward can also be emotionally attach the employees to the organizational goals (Morgan, 2013). Employee job performance is directly related to extrinsic rewards; however, it does not mean that employees receive the rewards at every time they meet their goals. It is governed by the company's policies. An organization can reward their employees by many of formats. Some examples of extrinsic rewards are:
• High salary packages
• Bonus or commission
• Fringe benefits
• Improved working condition
• Promotion
• Profit sharing
Appropriate, effective and timely reward increases employees and managers' motivation (Cock, 2008). Ali & Ahmad, (2009) investigated that there is positive relationship between “recognition and reward”, “motivation and satisfaction”. They stated that if reward and recognition are given to employee then there is a huge change in their motivation and satisfaction.
In the organization which I work, there has two appraisals in mid and end of the finance years & pay bonus for the employees accordingly their achievements. Further all senior managers are eligible for the fringe benefits like, vehicle and health insurance packages with OPD bill claims as the extrinsic rewards. As intrinsic rewards, my organization is more focusing on employee recognitions. Identifying the employees who over achieved the assigned goals as “start champions” & recognize them at the annual award night.
Video 1.0: Intrinsic vs Extrinsic Rewards: What’s the Difference?
Video 1.0 is illustrating that differences between the intrinsic & extrinsic reward types with considering the motivational theories.
Most managers tend to believe, rather erroneously that they can adequately motivate their workers by offering rewards such as higher pay, bonuses, and paid vacations. Morse (2003) notes that, in most cases there exist an ‘extrinsic incentive bias’s which is perpetuated by both managers and employees. As noted by Atchison (2003), this bias does not stem from reality but are rather rooted in myths surrounding employee satisfaction. According to the research done by Shanks (2007) has shown that such monetary incentives do not motivate workers and may in certain circumstances become demotivators. Further he asserts that monetary reward motivates only to a point, that is when compensation isn’t high enough or is considered to be inequitable, it’s a demotivator.
References
Ajila, C. &. A. A., 2012. Influence of Rewards on
Workers Performance in an Organization. Journal of Social Sciences, 8(1),
pp. 7-12.
Aktar S, S. M. A. M.,
2012. The impact of rewards on employee performance in commercial banks of
Bangladesh: An empirical study. IOSR Journal of Business and Management
(IOSR-JBM), 1(2), pp. 09-15.
Atchison, T. A., 2003.
Exposing the myths of employee satisfaction. Healthcare excecutive, 18(3),
pp. 6-24.
Ayesha, A. &. M.
B., 2015. The Effects of Intrinsic and Extrinsic Rewards on Employee
Attitudes; Mediating Role of Perceived Organizational Support. Journal of
Service Science and Management, 8(4), p. 9.
Edirisooriya, W. A.,
2014. Impact of Rewards on Employee Performance:. Matara, Faculty of
Management and Finance, University of Ruhuna.
Mohammed, R. A. S.,
2016. The Influence of Rewards on Employees. British Journal of Economics,
Management & Trade, 13(4), pp. 1-25.
Morgan, J. C. &.
J. D., 2013. The quality of healthcare jobs: can intrinsic rewards compensate
for low extrinsic rewards?. Work, employment and society, 27(5), p.
802–822.
Morse, G., 2003. hbr.org.
[Online]
Available at: https://hbr.org/2003/01/why-we-misread-motives
[Accessed 28 8 2021].
Shanks, N. H., 2007. Management
and Motivation. In Introduction to Healthcare. 1 ed. Burlington: Jones
& Bartlett Learning.
Zeeshan, F. &. Z.
U. A., 2013. The Impact of Rewards on Employee’s Job Performance and Job
Satisfaction. Management and Administrative Sciences Review , 2(5), pp.
431-442.
Yes.Specifically, because operant theory (Skinner, 1953) maintained that all
ReplyDeletebehaviors are motivated by rewards (i.e., by separable consequence such as
food or money), intrinsically motivated activities were said to be ones for
which the reward was in the activity itself. Thus, researchers investigated
what task characteristics make an activity interesting. In contrast, because
learning theory (Hull, 1943) asserted that all behaviors are motivated by
physiological drives (and their derivatives), intrinsically motivated activities
were said to be ones that provided satisfaction of innate psychological needs.
Thank you. Further, Anka (1988), emphasis motivation increase employee satisfaction .Organization can provide incentive, promotion, and opportunities for employee’s .This will create good relationship with employee and organization as a result, organization can increase the profit through increase productivity further, employee motivation leads to achieve of organization goals.
DeleteAgreed with you. Among the two types of rewards you have discussed here, I believe intrinsic rewards have more impact on employee motivation. According to the research conducted by Manzoor et al. (2021), the main results of the study have shown a positive and significant impact of intrinsic rewards on the performance of the employee. Therefore, it implies that intrinsic rewards are more effective than extrinsic rewards.
ReplyDeleteThank you. Addition to your argument, according to Atchison (2003), this bias does not stem from reality but are rather rooted in myths surrounding employee satisfaction. According to the research done by Shanks (2007) has shown that such monetary incentives do not motivate workers and may in certain circumstances become demotivators. Further he asserts that monetary reward motivates only to a point, that is when compensation isn’t high enough or is considered to be inequitable, it’s a demotivator.
DeleteI Agreed with your points. In fact, reward and recognition as per Ganta, V.C (2014) the Some employees are money-motivated while others find recognition and rewards personally motivating. Recognition in various forms is a powerful retention strategy and that it does not have to be expensive (Ongalo, E.A. and Tari, J., 2015).
ReplyDeleteThank you. The feelings and attitudes of workers to their work are significantly affected by their sources of motivation and demotivation. The attitude of employers is directly related to job satisfaction (Roos and Eeden, 2008).
DeleteAgree with you and the following can be stated as to why the monetary rewards do not lead to desired outcomes for an organization;
ReplyDelete- monetary incentives in a generous manner can fail to motivate the employee (Beer & Cannon, 2004) and might be counterproductive by financial misrepresentation (Harris & Bromiley, 2007)
- Employees can decline performance as a result of fear on failure when high amounts of monetary rewards are awarded (Chib, De Martino, Shimojo,& O’Doherty, 2012)
-Employee's feeling of entitlement for monetary rewards (Beer & Cannon, 2004)
Thank you. Most managers tend to believe, rather erroneously that they can adequately motivate their workers by offering rewards such as higher pay, bonuses, and paid vacations. Morse (2003) notes that, in most cases there exist an ‘extrinsic incentive bias’s which is perpetuated by both managers and employees.
DeleteAgreed with your argument. Luenendonk (2017) stated that if an employee feels that the management cares about his/her as a person and not just another employee, he/ she will be motivated and committed to his/her work. It is evident that employee welfare has a direct impact on employee motivation. Through that employees will highly engaged to the organizational goals and objectives.
ReplyDeleteThank you. Agreed with your arguments. Further, Organizational success depends on employees Motivation further, motivation help employees towards achieving goals, gaining positive perspective, improve their development and helping others (Osabiya,2015).
DeleteAgreed with the argument. However. Money is ranked at the top for creating motivation because people require money to fulfill the basic necessities of life so it motivates the employees more than any other incentive (Rynes et al., 2004).
ReplyDeleteThank you. Monetary and non-monetary rewards that affect the motivation of employees in Organization. Monetary rewards include rewards, bonuses, benefits, insurance, incentives, promotions and employment and non-monetary rewards motivate employees through evaluation, employer care and awareness (Yousaf, 2014).
DeleteAn intrinsic incentive is a reward that employees receive for effectively completing their jobs or projects. This intrinsic motivation then drives the employee to do that activity successfully in the future in order to continue to feel those great sensations (Parul,2021)
ReplyDelete