Question

 

Intrinsic vs. Extrinsic Rewards

Managers use a number of techniques to motivate employees. One of these includes using rewards, which can be either extrinsic or intrinsic. This activity is important because managers can use both types of rewards to motivate employees and should understand the types of rewards that are most motivating to each of their employees

The goal of this exercise is to challenge your understanding of extrinsic and intrinsic rewards

Determine whether the items listed below are an extrinsic reward or an intrinsic reward

1. You received a $100 gift card to your favorite restaurant after being named employee of the quarter. (Click to select)

2. Winning employee of the month made you feel that you were special and that your work was valued. (Click to select)

3. When you got to work yesterday there was a note on your desk thanking you for your dedication. This made you feel satisfied with your work [Click to select)

4. You use the free employee financial advisor regularly, and each time you do, you feel good about choosing to work there. Click to select)

5. You get to use the best parking spot as a reward for being this month's star employee (Click to select)

6. Your new promotion includes a fancy title, which makes you feel like you are valued in your job. (Click to select)

7. Your favorite perk at your company is the complimentary membership to your local health club-it would otherwise be really expensive to join (Click to select)

8. You moved to a bigger, much nicer office when you got promoted. (Click to select)

Answer 1

Answering these questions will be much easier if we understand what is meant by intrinsic and extrinsic reward before moving ahead. An Intrinsic reward, as the name suggests is the feeling of satisfaction and motivation that a person gets within themselves after getting recognition for something that they have done. An Extrinsic reward on the other hand mostly involves something in return for a job well done. This reward is mostly financial in nature.

Now, let us move on to the questions:

1. This is an extrinsic reward as it involves something financial and physical (gift card) as a reward for being the employee of the quarter.
2. This is an intrinsic reward because this feeling of being special and knowing your work is valued is something internal to the employee who got recognized as the employee of the month.
3. This is an intrinsic reward as this gesture made the employee feel satisfied with their work.
4. This is an intrinsic reward as the employee feels good for having chosen to work with the company. Job satisfaction is a good way to ensure that an employee works efficiently.
5. This is an extrinsic and non-financial reward due to the reason that the employee got an external, physical reward for being a good employee.
6. This is an extrinsic and non-financial reward as a fancy title will be noticed by others and is external.
7. This is an extrinsic reward because it gives access to a club which would be expensive to be part of if the company did not give you this perk.
8. This is an extrinsic reward as it a physical reward that comes along with the promotion.