Extrinsic and intrinsic rewards
Extrinsic rewards—usually financial—are the tangible rewards given employees by managers,
such as pay raises, bonuses, and benefits. They are called “extrinsic” because they are external
to the work itself and other people control their size and whether or not they are granted. In
contrast, intrinsic rewards are psychological rewards that employees get from doing meaningful
work and performing it well.
Extrinsic rewards played a dominant role in earlier eras, when work was generally more routine
and bureaucratic, and when complying with rules and procedures was paramount. This work
offered workers few intrinsic rewards, so that extrinsic rewards were often the only motivational
tools available to organizations.
Extrinsic rewards remain significant for workers, of course. Pay is an important consideration for
most workers in accepting a job, and unfair pay can be a strong de-motivator. However, after
people have taken a job and issues of unfairness have been settled, we find that extrinsic
rewards are now less important, as day-to-day motivation is more strongly driven by intrinsic
Provide some personal examples of when an intrinsic and extrinsic motivational reward was
successful and unsuccessful either from your viewpoint or from a manager’s viewpoint. Justify
why they were and were not successful.
Working for the Department of Defense has its EXTRINSIC rewards to a certain degree as far as pay is
concerned its always in the bank never short unless you just didn’t do your time sheet correctly, your
medical benefits are a plus and then there is also a Thrift Savings Plan (TSP) a contribution plan for
United States civil service employees and retirees as well as for members of the uniformed
services. Which most employments call it a 401(k) it’s a feature of a qualified profit-sharing plan that
allows civilian employees to contribute a portion of their wages as well. Both can be withdrawn
What makes this an extrinsic there are no pay raises employees are basically given a Step
A Quality Step Increase is a faster than normal within-grade increase used to reward employees at all General
Schedule grade levels who display high quality performance. To be eligible for a Quality Step Increase, an employee
be below step 10 of their grade level;
have received the highest rating available under their performance management program;
have demonstrated sustained performance of high quality; and
not have received a Quality Step Increase within the preceding 52 consecutive calendar weeks.
or bonuses unless it’s your anniversary or your rating period. Its written in a contract upon accepting
the position that your pay will only be given on these following circumstances which are written in
format for you to clearly agree to and sign.
"Rating" means evaluating employee or group performance against the elements and standards in an employee's
performance plan, summarizing that performance, and assigning a rating of record.
Provides an in-depth explanation of time-off awards: the legal authorities, eligibility criteria, basis, major features, and
advantages and disadvantages for granting this form of award
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