An Investigative Study on whether Intrinsic or Extrinsic Rewards acts as a better Motivator. The need for strong and long-term motivation has, thus, become a critical issue for researchers and organisations alike.
Motivation refers to a driving force that enables people to accomplish tasks and can either be intrinsic or extrinsic (Huitt 2001). Motivation has been explained through a wide range of theories that it is primarily rooted in people’s various needs, whether these are basic or specific ones. Generally, motivation has been classified into intrinsic and extrinsic motivation (Rabey 2001). Intrinsic motivation is characterized by a motivation that is compelled by one’s pleasure and interest in a certain task, hence existing within the person instead of being influenced by external factors (Waterman et al 2003). This form of motivation has been found to improve performance, productivity, and achievement among employees and students as well. Extrinsic motivation, meanwhile, refers to the form of motivation that is brought about by factors outside of the individual that oblige them to carry out a certain task such as financial rewards or recognition (Kominis and Emanuel 2005). Because of the differences between extrinsic and intrinsic motivation, this paper aims to determine which of these classifications can provide more beneficial outcomes to the individual.
Employee motivation is known as a primary factor in achieving success or experiencing failure in organisations (Bright 2005). Without the presence of motivation in the working environment, a number on unfavorable outcomes are brought about such as a decrease in employee productivity and morale as well as reduced profits and service quality. In order to maintain a competitive advantage and an ideal reputation, there is a need for companies to place their time and efforts in implementing strategies that will increase the level of motivation among staff members (Islam and Ismail 2008).