Difference Between Intrinsic And Extrinsic Reward

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Reward systems offered by organisations are vital when it comes to encouraging team members to improve the way in which the team operates; rewards have the ability to influence motivation as well as the level of coordination and the quality of the group work within work teams (Levi, 2014). The rewards are considered to be positive outcomes that are aligned with the performance in reaching the organisational goal; one needs to consider the two general types of reward systems that motivate employees. These are known as intrinsic and extrinsic rewards (Nujjoo & Meyer, 2012). Intrinsic reward systems are regarded as a reward internal to an individual for example the feeling of personal achievement, professional growth or a sense of pleasure and accomplishment (Nujjoo & Meyer, 2012).…show more content…
Extrinsic rewards are known as tangible rewards typically offered by the organisation. These rewards are often monetary such as a salary raise or a bonus for reaching a goal, however extrinsic rewards can also be as simple as getting a better office, verbal praise or public recognition or awards as well as additional responsibility and promotions (Nujjoo & Meyer, 2012). It is important to consider that an extrinsically motivated individual or team is most likely to perform exceptionally in a task because of the anticipated satisfaction that will come from the extrinsic reward (Nujjoo & Meyer, 2012). Levi suggests three approaches to rewarding performance; these are known as individual rewards, team rewards and organisational rewards (Levi,

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