INSTRINSIC MOTIVATION & EXTRINSIC MOTIVATION - PART II
Extrinsic Motivation
‘Extrinsic motivation is a construct that pertains whenever an activity is done in order to attain some separable outcome. Extrinsic motivation thus contrasts with intrinsic motivation, which refers to doing an activity simply for the enjoyment of the activity itself, rather than its instrumental value’. (Ryan and Deci, 2000, p. 60).
Extrinsic Motivation has been demonstrated by Minbaeva et al. (2012) as something that is done to or for the employees in the organization to motivate them. Cummings and Worley (2014) have demonstrated in their research paper that this type of inspiration has an instantaneous as well as commanding consequence; however it does not lean to last for a long time (Titi Amayah, 2013). However, this does not dictate that extrinsic motivation is less effective than intrinsic motivation (Deci, Koestner, & Ryan, 1999). There are benefits we can achieve from extrinsic motivation.
· Financial reward - Some employees satisfy with financial rewards when they achieve organization targets. In this it is clear that financial benefits are the most powerful motivator which can be used by organization because from this source many other desires are fulfilled (Cherry, 2016).The extrinsic motivation deals with the external factors like the amount of salary, bonus and incentives which help the employees to perform their duties efficiently (Youndt et al., 1996).
As an example, I am working for a leading organization in the IT industry and they give bonuses twice a year and so far it has been a major reason for the satisfaction of employees. But in recent COVID-19 pandemic period my organization couldn't manage to give bonuses and it impacted the motivation of employees seriously. Many employees resigned from the company and some even protested to do works properly.
· Competition - When employees see that their colleagues earn the recognition, they also feel motivated in working hard so that it can help them in earning the recognition as well (Judson, Vollpp and Detsky 2015).
Serino (2002) highlights efficacy of recognition based rewards, referring to a research conducted on a United States bank and saying that, the post-performance recognition programs generated 6.5 percent higher level sales per employee, compared to 4.0 percent sales per employee under cash-based incentive plan. However, the most credible empirical verification on the efficacy of recognition based programs emanated from Stajkovic and Luthans' (2003) work who found that use of recognition programs increased employee performance by an average of 17%.
Conclusion
Figure 1: Intrinsic and Extrinsic Goals
(Source – Benedict, 2018)
Based on these examples of how the different motivations appear as shown in Figure1, it would appear that intrinsic is more favorable. Though you may have noticed that extrinsic tends to favor more for the motivation of younger people to improve their scope of knowledge and disciplines, research has found that too much of the extrinsic motivations can hinder a shift towards intrinsic (Benedict, 2018).
The manager can motivate the employees by the payments, promotional activities and praise (Yidong and Xinxin 2013). Lemos and Veríssimo (2014) mentioned that if organizations do not provide proper benefit to its employees, not only it will create adverse impact on the extrinsic motivation of the employees but also will have huge amount of impact on the intrinsic motivational level as well. It has been suggested that a relationship between motivation and employee engagement exists, and, for an example the development of motivational schemes including both intrinsic and extrinsic motivational factors can improve employee engagement within an organization (Silvera, 2013).
Figure 2: A taxonomy of human motivation
Reference
Benedict, T., (2018), Extrinsic and Intrinsic Motivation: Difference, Definition and Examples, Viewed on 20 April 2021, <https://summary.org/extrinsic-intrinsic-motivation/>
Cherry, K., (2016), Cognitive Psychology, What is Extrinsic Motivation, Viewed on 22 April 2021, <https://www.verywell.com/what-is-extrinsic-motivation-2795164>
Cummings, T. and Worley, C., (2014), Organization development and change, Cengage learning.
Deci & Koestner, R., (1999), A meta-analytic review of experiments examining the effects of extrinsic rewards on intrinsic motivation. Psychological Bulletin, 125(6), p. 627.
Judson, T.J., Volpp, K.G., and Detsky, A.S., (2015), Harnessing the right combination of extrinsic and intrinsic motivation to change physician behavior, Jama, pp. 2233-4.
Minbaeva, D.B., Mäkelä, K. and Rabbiosi, L., (2012), Linking HRM and knowledge transfer via individual level mechanisms, Human Resource Management, 51(3), pp. 387-405.
Ryan, R. M. &Deci, E. L., (2000), Intrinsic and extrinsic motivations: Classic definitions and new directions, Contemporary Educational Psychology, 25, pp. 54–67.
Serino, B., (2002), Non-cash Awards Boost Sales Compensation Plans, Workspan, 45,8, pp. 24-7.
Stajkovic, A.D. & Luthans, F., (2003), ‘Behavioral Management and Task Performance in Organizations’: Conceptual Background, Meta-analysis, and Test of Alternative Models, Personnel Psychology, 56, pp. 155-94.
Titi Amayah, A., (2013), ‘Determinants of knowledge sharing in a public sector organization’, Journal of Knowledge Management, 17(3), pp. 454-71.
Youndt, Mark, A., Scott A., Snell, James W. Dean, & David P. Lepak, (1996), ‘Human resource management, manufacturing strategy, and firm performance’, Academy of management Journal 39, no. 4, pp. 836-66.


Well said Indeevari, According to Nabi et al. (2017), It is important to have motivated employees in order to survive in the changing organizational environment, also motivation is an important fact towards organizational success and if it is lost it can highly influence in employee performance.
ReplyDeleteYes Pernalla and even though extrinsic motivation can work in resistance to intrinsic motivation, it can also have a reinforcing result: "once the framework of extrinsic motivation is engaged care of, intrinsic motivation can guide to high levels of satisfaction and performance". Further more both intrinsic and extrinsic principles can motivate employees to do their work. On the other hand intrinsic and extrinsic motivation can very different impacts on employees (Abiro, 2013).
DeleteAbsolutely Indeevari. The findings of the study done by Singh (2016) indicate that organizations should recognize importance of intrinsic factors in employee motivation. Further, the management should focus more on creating a culture of respect, recognition, trust, and autonomy when tailoring the strategies to tap into the emotions of the coworkers.
ReplyDeleteIndeed, Further, Turner (2017) mentions, existence of both Intrinsic and extrinsic motivation factors is vital to the organization, as employees with lower level income, would be significantly motivated with the extrinsic motivational factors such as rewards and as a result, would be more enthusiastic and productive in the job execution.
DeleteI agree indeevari, Extrinsic motivation has an immediate and powerful impact on employee's performance, which will not last for long-term, whereas intrinsic motivation have a deeper long-term impact on employee's overall satisfaction and well-begin, which engage employee to perform effectively and efficiently in order to achieve company goals (Armstrong, 2014).
ReplyDeleteYes Sujeendran, Extrinsic motivation has a big power and with write use can lead to high results. External rewards can stimulate interest and participation in which person has not had initial interest Praises are able to induce to obtain new skills or knowledges. In the moment when people have studied more they become more motivated intrinsically. External rewards can be a good sign that a worker does a good job and give a chance to understand that their performance is achieved reinforcement. (Cherry 2016).
DeleteYes Agreed Indeevari and Motivation is concerned with the factors that influence people to behave in certain ways. The three components of motivation as listed by Arnold et al (1991) are:
ReplyDelete● direction – what a person is trying to do;
● effort – how hard a person is trying;
● persistence – how long a person keeps on trying.
Absolutely Duminda, Lee (2016) suggested that, direct competition can undermine intrinsic motivation and in contrast indirect competition can increase intrinsic motivation. Further, competitiveness among employees stimulated by the motivational factor is having higher probability to be successful (Foster et al., 2010).
DeleteExternal motivators focus on doing the task themselves and doing what is necessary to be rewarded. Some of these, such as promotion and other honors, can increase internal motivation, but the initial basis itself is external.(Cooper and Jayatilaka, 2006)
ReplyDeleteIndeed Harsha, intrinsic and extrinsic motivation are not additive but instead are interactive. That is, the addition of extrinsic motivators may either diminish or enhance intrinsic motivation. Whereas intrinsic motivation is often associated with the involvement in complex tasks, extrinsic motivation is claimed to be important in relation to unattractive and simple tasks (Osterloh & Frey 2000; Gagné & Deci 2005). This shows how intrinsic and extrinsic motivation give different impacts when employees are performing the task.
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