Motivation Management: Intrinsic vs. Extrinsic Rewards in Workplace

This essay examines the crucial role of both intrinsic (non-financial) and extrinsic (financial) rewards in motivating employees, highlighting that different individuals respond to different motivational approaches. It presents a personal experience where intrinsic incentives failed to motivate young employees, while extrinsic rewards proved successful for an employee facing financial pressure. The essay then connects these observations to Herzberg's Two-Factor Theory, emphasizing the importance of both motivators and hygiene factors in maintaining and enhancing employee motivation. It concludes that managers should consider the significance of extrinsic motivation for the present generation and primarily adopt Herzberg's Two-Factor theory to improve employee performance.

RUNNING HEAD: MOTIVATION
MANAGEMENT
MOTIVATING EMPLOYEES

MOTIVATION 1
Both intrinsic (non-financial) and extrinsic (financial) motivational rewards are
essential to boost employee motivational level (Truong & McColl, 2011). Every individual is
motivated by different motivational means in an organization.
Previously, I worked in an organization and it has strong workforce strength
differing in age, gender and cultural background. Monthly, the organization offered
performance based intrinsic incentives to the employee delivering higher outcome. It has not
motivated the young employees as there is no improvement in their performance. Therefore,
intrinsic motivational reward was unsuccessful in this scenario.
Once a young employee has delivered high outcome to gain high monetary benefits
as he has to pay his mother medical bills. The authority was highly delighted with a sudden
rise and improvement in his performance. On one fine day, the authority has offered high
recognition to that employee in front of other employees in the organization. It has developed
a driving force within him and he has continued offering similar performance. Thus, the
given example depicts the failure of extrinsic but success of intrinsic motivational rewards.
According to Herzberg Two Factor Theory, the presence of both Motivators and
Hygiene factors are necessary to maintain and raise employee motivation. The presence of
hygiene factor will not motivate but their absence can leads to employee demotivation
(Alfayad & Arif, 2017). Therefore, the manager should devote attention towards hygiene
factors as well.
Thus, it can be stated that present generation is not motivated with mere intrinsic
rewards but extrinsic motivational attain more significance in their professional life.
Therefore, the manager should mainly opt for Herzberg Two Factor theory.

MOTIVATION 2
Bibliography
Alfayad, Z., & Arif, L. (2017). Employee voice and job satisfaction: An application of
Herzberg two-factor theory. International Review of Management and Marketing,
7(1), 150-156.
Truong, Y., & McColl, R. (2011). Intrinsic motivations, self-esteem, and luxury goods
consumption. Journal of Retailing and Consumer Services, 18(6), 555-561.