Part 3: Managing Motivation through Extrinsic and Intrinsic Rewards - Principles of Management

The third part of the motivation puzzle considers what employees receive or experience from their effort and accomplishments. These outcomes can generally be divided into two types: extrinsic rewards and intrinsic rewards. An extrinsic reward is anything received from another person that the recipient values and is contingent on his or her behavior or results.

Extrinsic rewards include paychecks, performance bonuses, praise, or some other form of recognition. Extrinsic rewards don’t occur naturally with the behavior or result; instead someone introduces these rewards. An intrinsic reward , on the other hand, is a positive emotional experience resulting directly and naturally from the individual’s behavior or results.

This would include the enjoyment of learning a new task, a feeling of accomplishment from performing a job well, and a sense of flow or engagement when work is performed smoothly. Notice that these emotions arise naturally from performing the task.


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