When people talk about motivations in work place, relative merits of intrinsic and extrinsic rewards have been put under spotlight. In the middle of 20th century, some researchers found that sometimes people do something without apparent rewards. These observation suggested that such engagement is inherently enjoyable and satisfying. This type of motivation was intrinsic motivation(Hunt, 1965). Intrinsic motivation refers to motivation that comes from inside of an individual rather than external rewards. Extrinsic motivation refers to financial rewards, developmental rewards and social rewards which all associated with the job that employee does. Some people argue that intrinsic rewards are the most important motivators in work place. Others hold the opinion that external motivation is more powerful. This article will illustrate the effectiveness of intrinsic motivation and extrinsic motivation. Find out which one is more important when motivating employees. As a result of this study, it is found that both intrinsic incentives and extrinsic incentives are important in motivating employees. However, intrinsic motivation seems more powerful when affecting employees in course of creativity and quality of their work.
Intrinsic motivation is the energy source that motivate employees do more jobs. People with intrinsic motivation tend to excel and perform better in their tasks. Because they feel happy and satisfied with challenges and uncertainty. In other words, intrinsic motivation comes from the interests of organism. When people willing to undertake tasks, they are self-motivated by obtain goals and this will lead to a higher quality of their work compared to tasks finished by people who motivated by extrinsic incentives. As Kohn (1993) said in his article, why incentive plans cannot work, he pointed out that employees may see financial incentives as bribe. When employers required employees to do something with payment, there must be something