Compare and contrast the benefits of intrinsic rewards,such as recognition,and extrinsic rewards,such as pay,as form of motivation.Explain ( 10 marks )
ANSWER FOR Q2.
Definition Of Motivation
Motivation is defined as the incentive that is given for inspiration to accomplish something. Motivation can persuade someone to think a certain way or a drive that moves them to do a certain thing.Definitions of motivation abound. One thing these definitions have in common is the inclusion of words such as "desire", "want", "wishes","aim","goals", "needs", and" incentives". Luthan (1998) defines motivation as, "a process that starts with a physiological deficiency or need that activates a behaviour or a drive that is aimed at a goal incentive". Therefore, the key to understanding the process of motivation lies in the meaning of, and relationship among, needs, drives, and incentives. Relative to this, Minner, Ebrahimi, and Watchel, (1995) state that in a system sense, motivation consists of these three interacting and interdependent elements, i.e., needs, drives, and incentives.
Managers and management researchers have long believe that organizational goals are unattainable without the enduring commitment of members of the organizations. Motivation is a human psychological characteristic that contributes to a person's degree of commitment (Stoke, 1999). It includes the factors that cause, channel, and sustain human behaviour in a particular committed direction. Stoke, in Adeyemo (1999) goes on to say that there are basic assumptions of motivation practices by managers which must be understood. First, that motivation is commonly assumed to be a good thing. One cannot feel very good about oneself if one is not motivated. Second, motivation is one of several factors that go into a person's performance. Factors such as ability, resources, and conditions under which one performs are also important. Third, managers and researchers alike assume that motivation is in short supply and in need of periodic replenishment. Fourth, motivation is a tool with which managers can use in organizations. If managers know what drives the people working for them, they can tailor job assignments and rewards to what makes these people "tick." Motivation can also be conceived of as whatever it takes to encourage workers to perform by fulfilling or appealing to their needs. To Olajide (2000), "it is goal-directed, and therefore cannot be outside the goals of any organization whether public, private, or non-profit".
Definition of Rewards
Rewards are positive results or benefits obtained as a result of an employee's performance. This consideration is consistent with the goals of the organization. Employees who help the company or an organization to achieve the rewards will be given.Rewards may be considered as a form or a tool used by a company or an organization to motivate employees to work more diligently and earnestly to achieve a goals required by a company or a organization.Rewards may be given in the form of bonuses or remuneration system , interest, insurance, allowances and certificates.
Rewards as a motivation at workplace ( Intel )
There is a many recognition given by Intel to the employees who work with outstanding or successfull.
Goodie Drawer Awards are used to recognize people who live and breathe the Intel values. People who in their manner of work and attitude demonstrate those qualities that make us all cheer. People who do unusually well things like:
ECBP - Employee Cash Bonus Program
The Employee Cash Bonus Program is a bonus through which Intel shares profits with employees by paying a cash reward twice a year. The ECBP encourages Intel employees to focus on company profitability.
Birthday Recognition
Purpose:
Provides a form of informal recognition to employees on their birthday.
Provides the employee’s direct manager a heads up notice and reminder on their direct staff’s incoming birthday.
Intel Service Award "Service awards are one important way Intel says 'thank you' to the dedicated employees whose talents and commitment are the basis for our success each day." —Paul Otellini, President and Chief Executive Officer.
Intel recognizes employees who have reached their 5, 10, 15, 20, 25, 30, 35 and 40 year anniversaries with Intel in the form of a cash award as a token of appreciation.
The main objectives behind the Service Award Programs are to:
Reinforce Intel values and good performance by recognizing career accomplishments
Demonstrate Intel’s respect for individuals with long service
For example, Intel will give RM200 cash to employees who have served for 5 years,RM500 to employees who had served 10 years and RM750 to employees who had served for 15 years.
There are two general types of rewards that motivate people there is Intrinsic Rewards and Extrinsic Rewards
Intrinsic Rewards
Intrinsic motivation is that it occurs naturally from internal stimuli. It consists of the individual's motivation and self-interest to engage in an activity or work without expecting or asking for any reward.
However, not all intrinsic motivation created by nature. There is also a set of intrinsic motivation of learning, knowledge and experience that can bring satisfaction. For example, the habit of reading stories and playing a musical instrument is a movement made up of intrinsic motivation and learning experience in itself. Intrinsic rewards are those that exist in the job itself. And for examples are achievement, variety, challenge, autonomy, responsibility and personal . They also include status, recognition and praise from superiors and co-workers, personal satisfaction, and feelings of self-esteem (Mahaney and Lederer 2006: 43). Intrinsic rewards increase feelings of self-esteem and accomplishment (Honig-Haftel and Martin 1993: 261). Intrinsic motivation also can be explained as a psychological condition caused when a person consider themselves capable or competent, and can identify things by themselves. Person is experiencing high intrinsic motivation if can do something he likes, such as driving motorcycles, select the property and choose foods that she like. If she is given a gift such as visits to places determined by an organization or body organizing the accommodation and food and beverage types are also determined by the party, he could not make a decision or get the chance to decide everything for yourself then intrinsic motivation will be lacking or weak.
Intrinsic Rewards In The Workplace
Intrinsic rewards are especially very important to workers. In fact, Frederick Herzberg, who is one of the leading theorists of workplace motivation, found intrinsic rewards to be much stronger than financial rewards in increasing employee motivation and his is not to say that employees will not seek financial rewards in addition to intrinsic rewards, rather it just means that money is not enough to maximize motivation in most employees. People want to feel like their contributions matter.
Intrinsic rewards are those that exist in the job itself. Examples are achievement, variety, challenge, autonomy, responsibility, and personal and professional growth. They also include status, recognition, praise from superiors and co-workers, personal satisfaction, and feelings of self-esteem (Mahaney and Lederer 2006: 43). Intrinsic rewards increase feelings of self-esteem and accomplishment (Honig-Haftel and Martin 1993: 261). Intrinsic rewards are derived from the content of the task itself and include such factors as interesting and challenging work, self-direction and responsibility, variety, creativity, opportunities to use one’s skills and abilities, and sufficient feedback regarding the effectiveness of one’s efforts
(Mottaz 1985: 366). Employees are thought to be motivated to work hard to produce quality results when they have pride in their work, they believe their efforts are important to the success of the team, and their jobs are fun, challenging, and rewarding (Mahaney and
Lederer 2006: 50).
Extrinsic Rewards
Extrinsic motivation is based on tangible rewards or Extrinsic motivation is created from an external stimulus by moving individual purpose to do an activity that will bring benefit to him. An extrinsic reward is an award that is tangible or physically given to you for accomplishing something as recognition of ones endeavor.
For example, a person who is extrinsically motivated dislikes come early work can come early to work because we want right reward promised by the employer.
Extrinsic Rewards In The Workplace
Providing employees with extrinsic rewards is relatively straightforward and usually built into performance reviews or individual projects. They are particularly useful in the short-term for motivating employees to work towards one specific organizational goal. Extrinsic rewards on the other hand are external to the job itself. They comprise such elements as pay and promotions.Other examples include competitive salaries, pay raises, merit bonuses, and such indirect forms of payment as compensatory time off (Mottaz 1985: 366, Mahaney and Lederer 2006: 43). Firms are able to improve worker productivity by paying workers a wage. Achieve a goal target,good attendance,Meeting the sales quota for a bonus is an example of offering an extrinsic reward.If an extrinsic reward is offered, Manager in an organization must be fulfilled when the employee completes whatever was required to earn the reward in the first place.
As a result, people are attracted to well-paying jobs and extend extra effort to perform the all activities that can bring them more pay and become agitated if their pay is threatened or decreased (Stajkovic and Luthans 2001: 581). Extrinsic rewards are used to show that the company or organization is serious about valuing team or employees contributions to quality and quantity.
Strategies of Motivating Workers
Bernard in Stoner, et al. (1995) accords due recognition to the needs of workers saying that, "the ultimate test of organizational success is its ability to create values sufficient to compensate for the burdens imposed upon resources contributed." Bernard looks at workers, in an organized endeavor, putting in time and efforts for personal, economic, and non-economic satisfaction. In this era of the information superhighway, employers of information professionals must be careful to meet their needs. Otherwise, they will discover they are losing their talented and creative professionals to other organizations who are ready and willing to meet their needs and demands. The question here is what strategies can be used to motivate information professionals, the following are strategies:
Salary, Wages and Conditions of Service: To use salaries as a motivator effectively, personnel managers must consider four major components of a salary structures. These are the job rate, which relates to the importance the organization attaches to each job; payment, which encourages workers or groups by rewarding them according to their performance; personal or special allowances, associated with factors such as scarcity of particular skills or certain categories of information professionals or librarians, or with long service; and fringe benefits such as holidays with pay, pensions, and so on. It is also important to ensure that the prevailing pay in other library or information establishments is taken into consideration in determining the pay structure of their organization.
Money: Akintoye (2000) asserts that money remains the most significant motivational strategy. As far back as 1911, Frederick Taylor and his scientific management associate described money as the most important factor in motivating the industrial workers to achieve greater productivity. Taylor advocated the establishment of incentive wage systems as a means of stimulating workers to higher performance, commitment, and eventually satisfaction. Money possesses significant motivating power in as much as it symbolizes intangible goals like security, power, prestige, and a feeling of accomplishment and success. Katz, in Sinclair, et al. (2005) demonstrates the motivational power of money through the process of job choice. He explains that money has the power to attract, retain, and motivate individuals towards higher performance. For instance, if a librarian or information professional has another job offer which has identical job characteristics with his current job, but greater financial reward, that worker would in all probability be motivated to accept the new job offer. Banjoko (1996) states that many managers use money to reward or punish workers. This is done through the process of rewarding employees for higher productivity by instilling fear of loss of job (e.g., premature retirement due to poor performance). The desire to be promoted and earn enhanced pay may also motivate employees.
Staff Training: No matter how automated an organization, high productivity depends on the level of motivation and the effectiveness of the workforce. Staff training is an indispensable strategy for motivating workers. The organization must have good training programmed. This will give the information professional opportunities for self-improvement and development to meet the challenges and requirements of new equipment and new techniques of performing a task.
Information Availability and Communication: One way managers can stimulate motivation is to give relevant information on the consequences of their actions on others (Olajide, 2000). To this researcher it seems that there is no known organization in which people do not usually feel there should be improvement in the way departments communicate, cooperate, and collaborate with one another. Information availability brings to bear a powerful peer pressure, where two or more people running together will run faster than when running alone or running without awareness of the pace of the other runners. By sharing information, subordinates compete with one another.
Studies on work motivation seem to confirm that it improves workers' performance and satisfaction. For example, Brown and Shepherd (1997) examine the characteristics of the work of teacher in four major categories: knowledge base, technical skills, values, and beliefs. He reports that they will succeed in meeting this challenge only if they are motivated by deeply-held values and beliefs regarding the development of a shared vision. Vinokur, Jayarantne, and Chess (1994) examine agency-influenced work and employment conditions, and assess their impact on social workers' job satisfaction. Some motivational issues were salary, fringe benefits, job security, physical surroundings, and safety. Certain environmental and motivational factors are predictors of job satisfaction. While Colvin (1998) shows that financial incentives will get people to do more of what they are doing, Silverthrone (1996) investigates motivation and managerial styles in the private and public sector. The results indicate that there is a little difference between the motivational needs of public and private sector employees, managers, and non-managers.
Conclusion
Study of organizational behaviour is very interesting. It is the art on the part of manager to understand, describe, forecast and modify individual behaviour. Lot of studies has been undertaken in the field of organizational behaviour and vast literature is available.Every human being can be motivated by intrinsic or extrinsic. Intrinsically motivated individuals who possess an inner drive. They do things on their own self-awareness. They require no external elements such as other people or external events to stimulate them to achieve certain goals. They themselves determine the objectives and achieve the objective.
A person who does not have the intrinsic motivation, extrinsic motivation should be given so that intrinsic motivation over time will be developed in himself and someone who has had an intrinsic motivation, extrinsic motivation should be given so that intrinsic motivation in itself perpetual. Humans are generally not going to be on only one type of motivation. Sometimes, individual intrinsic motivation and extrinsic motivation sometimes. This depends on the situation and individual needs.
REFERENCES 1. http://education-portal.com/academy/lesson/reward-systems-employee-behavior-intrinsic-extrinsic-rewards.html 2. Organization Behaviour – AeU reference task book 3. https://employeecontent.intel.com/contentdelivery/getcontent.aspx?webpath=cn_Active/Support/HRContent/Service_Award_MYS.htm 4. Authors:Tausif, M.1.Source:International Journal of Research in Commerce, IT & Management; 2012, Vol. 2 Issue 6, p33-41, 9p.Document Type:Article.Subject Terms:*JOB satisfaction
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