Impact of reward on extrinsic motivation in the workplace

Impact of reward on extrinsic motivation in the work place : A case study of XYZ Company

LITERATURE REVIEW

The best way to identify and evaluate the impact of extrinsic motivation in any organization is to analyze its operational environment , and thus this review too goes for that , after covering the important areas like employee reward , and the debate associated with it . Accordingly , the situation commands introduction of some theories on motivation and leadership issues , and this review takes care of that too , before underpinning the key extrinsic drivers (like cash reward

) and evaluating their impact on staff behaviour , commitment and performance of XYZ Company

1 .0 Overview of Employee Reward

While the basic aim of any organization usually revolves around the issues of sustenance and development , the qualities of their strategy and ability determine the outcome . Thus it is understood that the organizations have to take care of several factors that are embedded with that primary goal . These factors usually have their subsets , which are no less important towards achieving the primary goal . As for example , if one of the major factors towards sustenance and development of a company happens to be the employees ' satisfaction , then the issue of employee reward features under it and the organization cannot do without fulfilling it at least to a satisfactory level . In to fulfil this important precondition , the organization has to have a reward structure that would contain a package of various types of rewards that would consistently motivate the employees to do their best It is the single word "motivation , that appears in manifold to hold the ground for reward issue

However , before going for the nuances of motivation , it would be appropriate to introduce the types of reward that do rounds in the workplaces , because the reward structure of a company can make it or break it as it is assigned to fuel the employee cooperation , effort and overall satisfaction of all members of the company Cacioppe (1999 . A host of other researchers like Hackman (1997 ) Shea and Guzzo (1987 ) too have endorsed this view , where they clearly advocated for aligning rewards with group activities

To formulate such a structure , it is important to know what types of rewards can be effective for the individuals working in a specific environment . Integration of such rewards with the overall company system is desired too as that would be complimentary to the viewpoint of the management , which would then would be counted as caring management who recognizes the importance of human components within its system

As for the formulation of a reward structure , the common logic would vote for the optimization of the group but in practice , the reward system usually goes in for optimizing the individual (Caudron , 1994 especially where the work patterns are not interdependent . Thus talking with types of reward , one arrives at two options like group incentive or individual incentive . This is important because each option can influence the nature of reward under a given circumstance - that whether intrinsic...