Intrinsic Reward Theory

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According to the social exchange theory, an employee shall portray in increased affective commitment to the organization if the expectations of the employee regarding attaining their need is met (11). The theory is based on psychological contract an employer and employee have on the concept of reciprocity. Literature has shown to contribute to strengthening linked goal oriented culture between employer and employee (11). There are two facets that are crucial to the interest of employees to the work they perform (14). The quality of work itself and benefits or rewards the work offers (14). Interdependence between the quality of work performance and rewards and recognition is pivotal to the success of an organization (). Synergy between the …show more content…
Intrinsic reward practices include (11).
• Non-monetary forms of recognition to identify attainment of goals for quality improvement.
• Celebrations in respect of recognition of achieving set objectives, (e.g.) dinners and special events.
• Regular expressions of appreciation by management. It is essential to an employee to be told and recognized the work performed. It reinforces psychological factors of the employees.
• 360⁰degree performance appraisals from internal (co-workers management) and external (customers).
• Quality based promotions- promotions when achievement of organization’s set objectives.
Intrinsic motivational characteristics are namely: role clarity, participation in decision-making, skill variety, autonomy, feedback and training (12). All these contribute significantly to the development of intrinsic rewards and will encourage employee motivation and commitment to the organization (12). Intrinsic incentives appeal to motivation mechanism of self-regulation
…show more content…
They are concepts that should in essence boost employee morale, values and attitudes towards their work. Reward systems based on the changing needs of employees seem to be more effective at influencing motivation, commitment and quality work performance. Ideally studies have shown that money is not the only motivator (). Rewards have to bring change to the organizational culture of an organization, and in order for organizations to constantly improve organizations should stop rewarding old behaviour and focus in the culture change. With the numerous amounts of reward systems used by organizations, is of paramount importance to any organization to grasp the concept that an employee that has attained job satisfaction will perform. Rewards systems objectives with in any organization is for the reward systems to retain skilled, motivated and high performing

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