Intrinsic and Extrinsic Rewards



Introduction1

Discussion1

Review of Literature1

Intrinsic Rewards2

Extrinsic Rewards3

Problem Statement and Its Analysis3

Responsibility4

Recognition4

Job Enlargement4

Job Rotation4

Implementing the Solution4

Conclusion5

Recommendations5

References6

Intrinsic and Extrinsic Rewards

Introduction

This assignment is focused on developing the proper balance or reward system in an organization which will consist of both intrinsic and extrinsic rewards. The organization selected in Berry Plastics whose overview is mentioned below.

Berry Plastics headquartered in Indiana, is a marketer and global manufacturer of plastic packaging products. It has more than eighty global manufacturing facilities and has almost twenty five thousand employees. Their annual sale exceed $5 billion and is one of the largest plastic packaging producers of the world. The company began almost three decades ago having a very clear vision which was to become the top manufacturer of injection molded packaging in America. The company has been able to not only achieve but exceed this mission (www.berryplastics.com). Presently, the company consists of four main divisions which are:

Rigid Open Top

Rigid Close Top

Flexible Packaging

Engineered Materials

Discussion

Review of Literature

Rewards can work successfully because the opportunity to receive something that you want is placed in front of you, you will have the willingness and the motivation to work for it. This belief is supported by economical theory because as the people are rational decision makers, they will perform in a way for avoiding disutility and seeking utility. This approach has proved to be effective in developing compliance. The initial reason for using the rewards system is that when the goal moves beyond compliance, the rewarder develops a positive change that can persist (Edward & Johansen, n.d.).

Motivation plays a very important role in influencing the performance of employees and being engaged and driven requires a high level of support. There have been many theories that have mapped the universally applicable drives such as ERG theory and Maslow's Hierarchy of needs for creating practical models regarding what should be done and should not be done in motivation. The most common motivational instrument is money which is used in the form of stock options, provisions and bonuses. According to Herzberg, money is an important factor which is needed to fulfill so that the employees do not feel dissatisfied (Edward & Johansen, n.d.).

A new area of research has been conducted to clarify the way externally controlled rewards can effect motivation and it was revealed that I some circumstances, rewards results in a decline in level of motivation. After that, there have been many empirical studies that have worked on this theory; the extrinsic rewards reduce the intrinsic motivation and also cause different negative effects (Edward & Johansen, n.d.).

At this point it is very important to understand both intrinsic and extrinsic rewards:

Intrinsic Rewards

The intrinsic rewards have a direct impact on the self management of employees. They are also a relatively healthy and a sustainable source of motivation for the employees. The employees that have a high level of satisfaction have more positive feelings about their job and their level of job satisfaction is also higher along with lesser symptoms of ...