• Intrinsic Motivation: It is the Internal desires to perform a particular task, people do certain activities because it gives them pleasure, develops a particular skill, or it was raised through their mental desires.
• Extrinsic Motivation: Extrinsic motivations are those that arise from outside of the individual and often involve rewards such as trophies, money, social recognition or praise. (See appendix 2)
Motivation theory and reward structure are highly connected with each other and human resource management team at ARPICO …show more content…
Assess the effectiveness of Reward System in different context
The reward system as “The mix of extrinsic and intrinsic rewards provided by the employer ,It also consists of the integrated policies, processes, practices and administrative procedures for implementing the system within the framework of the human resources (HR) strategy and the total organizational system”. (Bratton and Gold, 2003)
There are two types of rewards: Extrinsic rewards which are tangible rewards that employee receives for their good performance, such as bonuses, salary raise, gifts, promotion, compensation and commissions. Intrinsic rewards are inclined to give personal satisfaction to an employee, such as information, feedback, recognition, trust and relationship.
Employee bonus systems are positive strategies and they can provide actual motivation. Moreover to monetary thoughts; bonus systems take into account factors such as attendance, customer service, quality, group and individual performance. Also bonuses increase employees’ motivation and output. It improves employees’ morale and increases their self-esteem. However, a carefully planned bonus scheme can improve retention which helps to preserve the best