Intrinsic Reward Theory

Improved Essays
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

Related Documents

  • Improved Essays

    Performance-dependent rewards, or incentives, provide the impetus for the alignment of employees’ natural self-interests with the organization’s objectives. (Merchant, Wim A Van der Stede, 2011, p368) Therefore, by the compensation system that might allows the physicians obtained the reward, to put zip into…

    • 468 Words
    • 2 Pages
    Improved Essays
  • Improved Essays

    ASSESSMENT TASK 1: Q1 A1: Organisational design is the way by which an organisation should be structured and operated by its member, it’s both a plan and process. Q2 A2: Element One: Structure: It’s the main part of organisational design.…

    • 651 Words
    • 3 Pages
    Improved Essays
  • Decent Essays

    Belonging: A Case Study

    • 144 Words
    • 1 Pages

    Once the sense of belonging and love need had been satisfactorily met, people tend to develop positive feeling of self-worth and foster pride in their work and themselves as person. In real life situations, it is such normal matter when people want themselves to be respect in whatever they do and appreciated in whatever they achieved (Kaur, 2013). Basically in work environment, every employee wants themselves to be considered as good and talented workers. In order to fulfill this kind of needs, usually organization introduced an awards banquet to appreciate their workers for good achievement and performance in the organization (Kaur, 2013). It is seems very important to ensure the workers feel appreciated and valued as sign of recognition for…

    • 144 Words
    • 1 Pages
    Decent Essays
  • Superior Essays

    Today workers are motivated by many different forms and intentions. The cause of motivation may be considered as desire or need. All over the world, there are many organizations that have researched types of motivations that will motivate employees to the best of their ability and to help them perform to the upmost quality in the delivery of health care. Many organizations have done this because employee performance and productivity relates and defines who and what there organization is all about, but most importantly the organizations profitability. There are numerous ways to motivate employees, but the most rewarding way to motivate employees to enhance their performance, is to suggest a pay-for-performance program.…

    • 1098 Words
    • 5 Pages
    Superior Essays
  • Improved Essays

    Two of the most common practiced theories are those of extrinsic and intrinsic motivation (Deeb, 2012). Extrinsic motivation is motivation that arises from external stimuli, in that, it is controlled by some sort of external reinforcement or reward such as time off, notoriety, or a pay raise. Intrinsic motivation is behavior that roots itself from within the individual and is compelled by internal rewards. This behavior is exhibited when individuals have a desire to complete a task simply for the enjoyment of the activity itself. Rewards may come from within such as a feeling of accomplishment after a challenging task or sharpening a particular skill (Deci et al.,…

    • 1676 Words
    • 7 Pages
    Improved Essays
  • Improved Essays

    Intrinsic motivation functions with productivity and is self-sustaining. It is enhanced by social contexts but can unravel with punishment, evaluations and controlling rewards. Extrinsic motivation has four subcategories: external, introjected, identified, integrated, and regulation. Extrinsic motivation often is maintained by intrinsic motivation. The effects of extrinsic motivation diminish with controlling cold or critical social environments.…

    • 768 Words
    • 4 Pages
    Improved Essays
  • Superior Essays

    If fact, more energy should be placed on intrinsic rewards. These are realized when an individual feels prideful, satisfied, or feel their self-esteem has inflated (Spector, 2013, p. 142). In fact, people have an affinity to find new skills and challenges, to learn and grow their abilities. Is this not exactly what leaders attempt to do when they align people with the firm’s purpose? For illustration, when we select a candidate to come on board with company, if pay is equitable, they will be intrinsically motivated as they will want to grow and prosper.…

    • 1027 Words
    • 4 Pages
    Superior Essays
  • Improved Essays

    Office Space Analysis

    • 705 Words
    • 3 Pages

    Moreover, an organisation must give suitable award and punishment to the employees as a motivation. Without motivation, employee could not perform well in the work place and they will try to reduce quality…

    • 705 Words
    • 3 Pages
    Improved Essays
  • Decent Essays

    Costco’s strategy as a retailer demonstrates that it values its employees as much as its customers. In chapter eight it states that an organization which supports employee development creates a system where employees can meet their goals, as well as, giving them the opportunities to select activities which develop their job skills and relationships within the company. (Chapter 8, page 2). The executives of the corporation have confidence in the structure of their company and their top down methodology.…

    • 329 Words
    • 2 Pages
    Decent Essays
  • Improved Essays

    Age Group Case Study

    • 728 Words
    • 3 Pages

    CONCLUSION An effective reward system can act as an aid I'm boosting staff moral, retaining efficient human resources and creating positive organisation culture. Companies should take in consideration their market position and financial situation while designing the reward system. In order to make an ideal reward system, the organisation have to make alignment of reward system with its core principle, features of process involved and general practice of system. Employees are encouraged to perform better through hard work and sharp there skills. Our reward system states clearly the targets of the company for its…

    • 728 Words
    • 3 Pages
    Improved Essays
  • Improved Essays

    Employee reward systems refer to programs set up by a business to reward performance and encourage employees on individual or group levels. Although various fundamentals of designing and preserving reward and recognition systems are the same, it is useful to keep this change in mind, particularly for business owners concerned in motivating employees while keeping costs low (Heneman, 2015). Jiffy needed to design some sort of a reward program for its employees including the key items as follows; must classify the goals that will incentive the employer along with rewarding the encouragement team, identify the desired employee performance behavior which will reinforce the company’s goals, determine key measurements of the performance of behavior,…

    • 1771 Words
    • 7 Pages
    Improved Essays
  • Improved Essays

    The intrinsic rewards that ACI should encourage should include challenges, creativity as well as competitiveness (Phillips &Gully, 2014). The extrinsic rewards, those that are related to the actual results of performance, should include incentives such as: Flexible schedules, paid time off and monetary bonuses. Rewards do not always motivate employees and in some can even hinder motivation, therefore, regardless of which reward method ACI decides to use, I suggest that a system to monitor the positives and negatives be put in place. By using a monitoring system ACI will be assured that the system is working and the system has a balance that works for all employees (Phillips &Gully, 2014). Organizations can use a variety of methods to reward performance.…

    • 843 Words
    • 4 Pages
    Improved Essays
  • Improved Essays

    In our personal experiences, we have seen that employees who are underpaid according to their efforts or who are not provided appropriate opportunities for growth end up leaving the company. Employees who are rewarded in relation to their efforts remain committed and encouraged to work well and may even take on additional responsibilities. Leaders are responsible for ensuring that people are rewarded according to their efforts. In some cases, employees are even willing to accept lower wages as long as they are appreciated for their efforts and given a chance for personal…

    • 1046 Words
    • 4 Pages
    Improved Essays
  • Improved Essays

    The Master of Strategic Leadership program has provided me a wealth of invaluable knowledge that can be effectively implemented in any organization to produce positive change. I have already utilized this knowledge to implement successful changes within my own agency that has produced positive outcomes. This program has taught me how to improve upon my own leadership skills by developing the right perspective to perceive situations in a different light. If we view every idea or situation through one lens, we are limiting our capabilities, therefore degrading our ability to realize different options or alternatives. Multi frame expands our perception, therefore providing unlimited possibilities in analyzing a situation, (Smith, 2011).…

    • 1684 Words
    • 7 Pages
    Improved Essays
  • Improved Essays

    LITERATURE REVIEW 2.1. BASIC CONCEPTS 2.1.1. INCENTIVES, REWARDS AND RECOGNITION The concepts of “incentive”, “reward” and “recognition” are quite interrelated and complementary in the context of employee motivation. It is difficult to draw a line among them.…

    • 731 Words
    • 3 Pages
    Improved Essays