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Define the organizational reward system and distinguish between intrinsic and extrinsic rewards. What is more important to you and why?
The organizational reward system consists of all types of rewards, to include intrinsic or extrinsic, which are offered and distributed to employees (Rue, Ibrahim & Byars, 2016, p. 244). Intrinsic rewards are those internal to the individual and are normally derived from involvement in certain activities or tasks, while extrinsic awards are those directly controlled and distributed by the organization and are more tangible in nature (p. 244).
Receiving these types of awards are critical to an employee’s performance, morale and feeling of self-worth. I think everyone wants to be recognized for their work and what they bring to the table. Although tangible awards in the form of pay and health benefits are examples of extrinsic awards, and are certainly important, they are basic parts of the employment package. However, intrinsic awards are different. From this, an employment may feel job satisfaction or feelings of accomplishment. Secondly, receiving appreciation from your boss through forms of a pat on the back, a firm handshake or through the spoken words of “thank you” or “good job” will go along way. In fact, studies have shown that lack of recognition is the most probable reason good employees quit their job; receiving pay as a job incentive ranked 16th (Rue, Ibrahim & Byars, 2016, p. 244).
Bottom line is I think employees who inspire teamwork, camaraderie and unit cohesion, typically perform at a higher level than other employees. Because of their productively and ability to achieve at unprecedented levels of success, they may crave the recognition through intrinsic awards which ultimately is a win-win situation for both the employer and employee. Receiving the pay is simply not always enough….as aforementioned, employees want to be recognized for what they do and role in helping grow the organization.
Rue, L., Ibrahim, N. & Byars, L. (2016). Human Resource Management (11th ed.). New York: McGraw-Hill
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