Management Essay: Critical Thinking Assignment: Intrinsic and Extrinsic rewards

Critical Thinking Assignment: Intrinsic and Extrinsic rewards
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Module 6: Critical Thinking Assignment: Intrinsic and Extrinsic rewards
The concept of motivation is one of the most talked-about issues in the workplace. More often, people postulate dismal organizational performance when employees lack an adequate level of motivation. Motivation is considered a powerful tool and energy source that drives and excites employees, leading to optimized performance. Motivation is a broad concept that revolves around setting goals, developing expectations, and providing feedback in workplaces. Many human resources professionals and organization management are concern about how employees can be motivated to achieve better performance. The contemporary work environment is volatile and competitive (Caldwell, 2012), leading to a need to have an effective working system, including human resources department, comprising knowledge and skills. Organizations are faced with challenges of retaining competent workers, leading to an increased departure of employees, partly due to poor practice in rewarding systems. Deploying an effective system that rewards and motivates employees in an evidence-based, equitable, just, and fair approach is sure to enhance organizational performance. Financial factors such as pay, salary, bonuses, fringe benefits, life insurance are critical rewards that can bolster employee's morale and performance. Besides the financial rewards, workers deserved recognition and appreciation for his efforts
The concept of motivation is quite interesting and intriguing to most practitioners. Available literature shows that motivated employees are needed for organizational goals, but practitioners find it challenging to create the right mix of rewards that motivate their employees to enhance productivity (Eshun, 2011). Two primary forms of motivation exist depending on the trait of the motivator. Intrinsic arises from internal factors, while extrinsic emanates from external sources. Incentive theory postulates that people's behavioral patterns in workplaces are mainly extrinsically motivated. According to this theory, people are more motivated to perform if they are likely to receive a reward. Incentive theory contradicts the perception that there are people who derive motivation from work satisfaction or personal accomplishment. Incentives such as bonuses, promotion, and praise are classified as extrinsic motivators. The intrinsically motivated persons derived their motivation or morale from a sense of personal satisfaction and accomplishment. They appear to have an overarching sense of self-disciplined and self-motivation. Intrinsic motivation seems to dwindle when incentives such as attentions, bonuses, praise, and promotion begin to trickle. The efficacy of incentives that are an extrinsic source of motivation depends on diverse factors, including personal principles and locus of control, among others!
The impact of extrinsic motivators or incentives such as compensation, bonuses, and pays for performance (PFP) remained a poorly explored area in organizational culture. Most organizations deploy compensation as a primary extr...