Essay On Extrinsic Rewards

Rewards are positive outcomes that are earned as a result of an employee’s performance. Some researcher agreed that employees are motivated to achieve organizational goals if there are high rewards as an outcomes. Extrinsic motivation is based on tangible rewards. Unlike intrinsic motivation that is self-administered, extrinsic motivation is external to the individual and is typically offered by a supervisor or manager who holds all the power in relation to when extrinsic rewards are offered and in what amount. Extrinsic rewards are usually financial in nature, such as a raise in salary, a bonus for reaching some quota or paid time off. However, extrinsic rewards can also be as simple as getting the better office, verbal praise, public recognition or awards, promotions and additional responsibility. These material rewards can be motivating to employees because pay, time off, advancement and recognition are important to most workers. Just imagine how de-motivating it would be to underpaid, overworked and unappreciated, and you can quickly see how important extrinsic rewards are to organizational success. An extrinsically motivated person will work on a task that they do not particularly care for simply because of the anticipated satisfaction that will come from some extrinsic reward. For example, employee may not be interested in the product he is

A lot of work has been done on evaluating the relationship between rewards and employee motivation and there exist a large number of studies in the literature describing impact of reward on employee motivation. In order to maximize the performance of the employees organization must make such policies and procedures and formulate such reward system under those policies and procedures which increase employee satisfaction and motivation. (Hafiza, Shah, et al., 2011 : Carraher