​Intrinsic and Extrinsic Rewards

User Generated

Nfu011

Business Finance

Description

For this assignment, imagine that you are an organizational change consultant who has been asked to propose intrinsic and extrinsic reward plans to an organization (of your choice).


In your proposal, you will not only formulate the plans but also analyze their worth to the organization as part of the firm’s implementation of a new social responsibility change plan. That change plan will task employees with new or additional duties; thus the reward plans should aim to support employee attitude and behavior including increasing creativity and problem-solving skills.

Spector (2013) says this about reward plans: “Incentive pay, regardless of the specific design, is an extrinsic reward: a reward external to the individual and provided by the organization. Money is the most obvious and prevalent example of an extrinsic reward. Motivational theory tells us that extrinsic rewards, although powerful, may not be terribly effective in driving long‐term behavioral change” (p. 142).


The following resources might provide you with additional ideas for your analysis:

The puzzle of motivation https://www.ted.com/talks/dan_pink_on_motivation?l...

Motivational theories https://www.verywell.com/theories-of-motivation-27...


Requirements:

  • Your paper should be 5 double-spaced pages including introduction and conclusion.
  • In this assignment, you need to back up your ideas and claims with scholarly sources. Please cite at least two scholarly sources that are not required readings in the course.
  • Remember, you must support your thinking/opinions and prior knowledge with references.
  • In-text citation used throughout the assignment and APA-formatted reference list.
  • Please no plagiarism and sources should not be older than 5 years.
  • Include headings organize the content in your work.

User generated content is uploaded by users for the purposes of learning and should be used following Studypool's honor code & terms of service.

Explanation & Answer

Attached.

Intrinsic and Extrinsic Rewards – Outline
Thesis Statement: It is this understanding that served as the underlying principle of the
proposed reward system for your organization because of its significance in the successful
execution of your new social responsibility plan. Furthermore, it is not just the required
instrument for talent management but a model for tasking employees with additional
responsibilities and supporting attitudinal changes that increasing their level of creativity and
problem-solving capabilities.
I.
II.
III.

Introduction
Overview of Reward Systems
The Intrinsic Component of the Reward Plan
A. Achievement
B. Career Development
C. Learning Opportunity
D. Responsibility

IV.
V.

The Extrinsic Component of the Reward Plan
Conclusion


Running head: INTRINSIC AND EXTRINSIC REWARDS

Intrinsic and Extrinsic Rewards
Name
Institution

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INTRINSIC AND EXTRINSIC REWARDS

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Intrinsic and Extrinsic Rewards
Introduction
Highly successful organizations attain their status because their leaders understand the
imperatives of attracting and retaining high-performing employees that are effective and efficient
in the performance of their duties. One of the strategic approaches used by these corporations
regardless of the size is a reward system that is aligned with the expectations of the workers and
the performance objectives of the company as illustrated in its vision and mission statements.
Also, the leadership of these organizations places great emphasis on the establishment of critical
success factors for the effective implementation of all the components of their reward systems. It
is this understanding that served as the underlying principle of the proposed reward system for
your organization because of its significance in the successful execution of your new social
responsibility plan. Furthermore, it is not just the required instrument for talent management but
a model for tasking employees with additional responsibilities and supporting attitudinal changes
that are increasing their level of creativity and problem-solving capabilities.
Overview of Reward Systems
A comprehensive reward system includes all types of benefits that enhance human
resource outcomes and are aligned with the company’s strategy for motivating its workforce. It is
a system that promotes a working environment that fosters the expression of skills and
competencies through the application of knowledge and information on the key areas of the
company operations. Therefore, the system for recognizing the quality of outcome from the
execution of tasks and assignments should be linked to activities that can serve as metrics for
measuring the value of work outcomes, especially when the feedback from the assessment can

INTRINSIC AND EXTRINSIC REWARDS

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contribute to employee development and growth in the company (Bergström, & Garcia Martinez,
2016). While a variety of formal and informal, monetary and non-monetary reward systems are
used by different organizations to motivate and increase the level of employee productivity,
intrinsic and extrinsic rewards are the two major categories that are analyzed and discussed by
scholars.
The Intrinsic Component of the Reward Plan
The proposed intrinsic elements of the reward system for your organization is designed to
reflect the reality of today’s highly competitive and dynamic business environment where the
meaning of job satisfaction vary from employee to employee. According to Sajuyigbe, Olaoye,
and Adeyemi (2013), change agents that intend to improve organizational performance through
the use of intrinsic reward must recognize the paradigm of self-management that is used by
employers to make their workers deliver value. A failure to do this would limit the beneficial
effects of the implementation of the system because of the lack of basic elements that include a
commitment to a meaningful purpose, best ways for fulfilling them, and the assurance that work
activities are performed competently, especially as they relate to progress towards the purpose.
Therefore, the intrinsic reward that we propose for your organization is designed to accomplish
the primary goals in addition to four other objects. It is considered that these intrinsic rewards are
the most appropriate for the implementation of a new social responsibility change plan and the
need to support positive employee and attitude in the workplace.
Achievement
It is a self-administered reward that highlights the importance of the purpose that
employees have fulfilled. Achievement is necessary for making people commit themselves to the

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completion of challenging tasks because of the sense of accomplishing something valuable and
contributory to corporate objectives (Sajuyigbe et al., 2013). Also, this intrinsic reward is the
assurance required by employees that they are part of the integral component of larger things that
would worth their time and energy both in the short- and long-term perspective.
Career Development
This intrinsic reward is a reflection of the sense of progress that workers require to make
the necessary attitudinal and behavioral changes to accomplish major goals in their duties. It is
the evidence that the employees need to convince themselves that they are on the right path to
completing their personal and professional goals. Agwu (2013) opined that career development
is one of the common intrinsic reward used by organizations because of the important role it
plays in retaining talented staff and attainment of corporate sustainability goals, as well as
succession planning. Therefore, the deployment of workers to projects and assignments that
expand their skills and competencies is an example of the approaches used for the
implementation of this reward system.
Learning Opportunity
Employees consider this type of intrinsic reward as a sense of competence that is derived
from their work activities, especially when performance is based on the application of their
knowledge and utilization of the company’s support system. The advantage of learning
opportunity is that it enhances the development of other major intrinsic motivational factors that
are essential for job satisfaction and organizational commitment (Agwu, 2013). When additional
duties are designed to test and improve the creativity and problem-solving skills of workers, they

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develop attitudes and inculcate behavioral practices that are only beneficial to them but their
employers.
Responsibility
A sense of choice is the hallmark of today’s work environment due to its positive
reinforcement attributes and relevance to the principle of self-management. As an intrinsic
reward, responsi...


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