Intrinsic and extrinsic reward
| Intrinsic and extrinsic reward |
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As a manager, it is important to find ways to motivate your employees to perform at their best. One way to do this is by offering rewards. Rewards are incentives offered by employers to motivate their employees to achieve their desired goals. There are two types of rewards: intrinsic and extrinsic.
Intrinsic rewards are intangible incentives that are inherent to the job itself, such as job satisfaction, recognition, and feeling of accomplishment. Intrinsic rewards are powerful motivators that can be used to tap into an employee’s intrinsic motivation and to increase their job satisfaction. Intrinsic rewards can be as simple as verbal praise or recognition for a job well done, or more tangible rewards such as flexible work schedules or additional vacation days.
Extrinsic rewards are tangible incentives, such as bonuses, salary increases, gifts, and other tangible rewards. Extrinsic rewards give employees a clear and immediate reward for their performance. These rewards can be used to reinforce a desired behavior or to encourage employees to work harder.
By offering rewards, employers can encourage employees to be more productive and efficient, and increase employee engagement and morale. When used effectively, rewards can be a powerful tool for motivating employees and achieving desired results. However, it is important to remember that rewards should be used judiciously and should be tailored to the individual employee to ensure maximum effectiveness.
Types of Rewards: Intrinsic vs. Extrinsic
As a manager, it is important to be aware of the impact of both intrinsic and extrinsic rewards on motivation. Intrinsic rewards are those rewards that come from within, such as the feeling of accomplishment, satisfaction, pride, and personal growth. Extrinsic rewards are those rewards that come from outside of the individual, such as financial compensation, recognition, awards, and promotions. Both types of rewards can have an impact on motivation, and it is important to understand the situation and the individual when deciding which type of reward to use.
Intrinsic rewards are often more effective in situations where the individual has a personal stake in the outcome. This can be a great way to encourage employees to take ownership of their work and increase their motivation. Intrinsic rewards can also provide a sense of satisfaction and accomplishment that can lead to increased motivation.
Extrinsic rewards are often more effective in situations where the individual is motivated by external sources. Financial compensation, recognition, awards, and promotions can all provide a sense of recognition and appreciation that can lead to increased motivation. These types of rewards can also be used to recognize employees for their hard work and dedication.
It is important for managers to understand the impact of both intrinsic and extrinsic rewards on motivation and to know when to use each type of reward. Both types of rewards can be effective in increasing motivation and encouraging employees to take ownership of their work. By understanding the situation and the individual, managers can use the right type of reward to ensure that their employees are motivated to do their best.
Impact of Rewards on Motivation
As a manager, it is essential to understand the different types of rewards and how they can motivate employees to achieve their goals. Intrinsic rewards and extrinsic rewards both have an impact on motivation, but they differ in a few key ways. Intrinsic rewards are those that come from within, such as a sense of accomplishment or pride, while extrinsic rewards are those that are given from outside sources, such as money or public recognition.
When it comes to motivating employees to complete tasks and projects, intrinsic rewards can be more effective. These types of rewards are based on more personal and meaningful goals, and are often more valuable to employees than extrinsic rewards. Extrinsic rewards, on the other hand, can be used to reward performance and encourage employees to strive for higher levels of success.
It is important to understand the differences between intrinsic and extrinsic rewards and how they each impact motivation in order to create a successful rewards system. Employers should use a combination of both intrinsic and extrinsic rewards to ensure that employees are motivated to achieve their goals. By understanding the differences between intrinsic and extrinsic rewards and how they each impact motivation, managers can create a rewards system that will help employees stay motivated and on track.
When to Use Intrinsic vs. Extrinsic Rewards in the Workplace
Rewarding employees is a critical part of any successful management strategy. But for managers, it can be a tricky balancing act. On the one hand, you want to motivate employees and provide them with incentives to perform well. On the other hand, you don’t want to create an environment where employees feel like they are only working for the reward. To strike the right balance, it is important to understand the difference between intrinsic and extrinsic rewards.
Intrinsic rewards come from within an individual, such as a sense of personal accomplishment or satisfaction from a job well done. These rewards can be highly motivating, as they increase the individual’s sense of self-worth and purpose. Extrinsic rewards, on the other hand, come from outside an individual, such as monetary rewards or recognition from an employer. These rewards can be highly motivating as well, providing tangible incentives for employees to perform well.
When deciding which type of reward to use in the workplace, it is important to consider the type of work that is being done. Intrinsic rewards may be more appropriate for creative or knowledge-based tasks, while extrinsic rewards may be better suited for more mundane, repetitive tasks. Additionally, it is important to consider the individual preferences of employees. Some employees may be more motivated by intrinsic rewards, while others may prefer extrinsic rewards. Understanding individual differences is key to creating an effective reward system.
Lastly, it is important to consider the overall goals of the organization when deciding which type of reward to use. If the goal is to promote more innovative and creative thinking, intrinsic rewards may be more appropriate. If the goal is to increase productivity and efficiency, extrinsic rewards may be more effective.
In the end, choosing the correct rewards for employees is a critical part of successful management. By understanding the difference between intrinsic and extrinsic rewards, and considering the type of work being done and the overall goals of the organization, managers can create a reward system that is both motivating and effective.
Examples of Intrinsic and Extrinsic Rewards in the Workplace
It’s no secret that a motivated and engaged workforce is essential for any business to succeed. As a manager, you have the power to influence your employees and create a positive working environment. One of the most effective ways to do this is through rewards.
Rewards can come in the form of both intrinsic and extrinsic incentives. Intrinsic rewards are the non-financial rewards that come from feeling valued and respected, such as recognition and praise from managers and peers, autonomy and responsibility to make decisions, opportunities for growth and learning, and a sense of accomplishment from meeting goals. These rewards are important for employees to feel appreciated and respected in their workplace.
Extrinsic rewards are the financial incentives such as monetary compensation, bonuses and raises, and benefits such as health care and vacation time. These rewards are important for employees to feel that their work is valued and compensated accordingly. Other extrinsic rewards include promotions and job titles, company-sponsored events and activities, and training and development programs.
No matter the type of reward, it’s essential for managers to understand how to use rewards effectively to motivate and engage their employees. By creating a positive work environment with both intrinsic and extrinsic rewards, managers can ensure that their employees are motivated and productive.
Conclusion
Managers are often tasked with the difficult job of motivating their employees to remain engaged and committed to the company’s goals. One of the most effective tools for motivating employees is the use of rewards. Rewards can come in two different forms—intrinsic and extrinsic—and different types of rewards can be more effective than others in different situations.
Intrinsic rewards usually involve recognition or acknowledgement of employees’ efforts, such as praise or awards. By recognizing their accomplishments, managers can boost employees’ morale and encourage them to keep working hard. This type of reward is especially effective for employees who are passionate about their work and take pride in their accomplishments.
Extrinsic rewards, on the other hand, are usually monetary in nature. By offering incentives in the form of a bonus or pay raise, managers can motivate their employees to work harder and achieve better results. This type of reward is especially effective for employees who are motivated by financial incentives.
It is important for managers to consider which type of reward is most appropriate for the situation and for their employees, as each can be more effective than the other in certain situations. Rewards can be a powerful tool to motivate employees and ensure that they remain engaged with the company’s goals. By offering the right kind of reward, managers can help their employees feel valued and appreciated, and make sure that they remain motivated and productive.
Suggested literature
- Özutku, H. (2012). The influence of intrinsic and extrinsic rewards on employee results: An empirical analysis in Turkish manufacturing industry. Business and Economics Research Journal, 3(3), 29-48.
- Bates, J. A. (1979). Extrinsic reward and intrinsic motivation: A review with implications for the classroom. Review of Educational Research, 49(4), 557-576.
