COMPENSATION

Compensation: Extrinsic and Intrinsic



Compensation: Extrinsic and Intrinsic

Introduction

When employees are intrinsically motivated, they derive motivation from the job itself and will persist in the absence of supervision or contingent rewards (Deci, 1975). Managers can prompt intrinsic motivation through careful job design (Giancola, 2011) or tangible incentive programs (Jeffrey & Shaffer, 2007). However, there are many instances where it is difficult to redesign a job, and budgets may be too restricted to provide tangible incentives. This paper discusses the concept of compensation in motivating employees extrinsically and intrinsically.

Discussion

For most people, pay is a primary reason for working. Indeed, compensation is at the ...