Introduction
As the organizational theory asserts, motivated employees actualize their potential and firms can use ways to empower and enable their workers to do so. One of the ways of motivation employees and creating an effective organizational culture is through the reward system Baijumon, P. (2015. Reward systems play a significant role in ensuring that employees are motivated both extrinsically and intrinsically. The essence of this essay is to discuss two motivational theories, extrinsic and intrinsic reward systems, and how businesses can use them to motivate employees.
Motivation Theories
Abraham Maslow’s hierarchy of needs theory is a need-based theory which suggests that the best way to motivate employees is to ensure that an organization meets their needs, right from physiological to self-actualization. However, Maslow’s theory has disadvantages and advantages (Baijumon, 2015). The theory allows firms to understand the needs of their employees; enable employees improve their performance and outcomes. It helps firms to create friendly environment and offer better benefits for quality results. However, the theory does not consider cultural and individual differences that may exist among employees in organizations.
Delegate your assignment to our experts and they will do the rest.
Stacy Adams’s equity theory is a process-based design suggests that employees expects their actions to satisfy their needs and assesses if these actions lead to fair or equity outcomes. Therefore, employees compare the potential reward to the effort that they expend (Baijumon, 2015). Imperatively, equity is achieved if worker feel that the rewards they get from work is equal to their efforts. The advantages of the theory include motivation as if employees feel that they are treated equally, they perform better. The theory also allows firms to create equitable workplace environment and seek opportunities to reward their employees. However, the theory fails to acknowledge that employees have different abilities and cultural backgrounds such they may have favors due to their situation. For instance, a lactating mother may have preference because of her situation yet the theory does not consider such factors.
Reward (Extrinsic and Intrinsic)
Rewards denote to positive results that are earned due to an employee’s performance. Most rewards are aligned with organizational goals and employees who help their organizations in attaining these goals are rewarded (Cherry, 2017). Two types of rewards are used to motivate employees: extrinsic and intrinsic. Extrinsic motivation occurs through social and material rewards in an organization. These rewards are external and include financial reward through a raise in salary, bonuses, getting a better office, recognition and awards and promotions. They may also include time off, paid vacation and verbal praise. On its part, intrinsic motivation is derived from the internal benefits that an employee acquires in the workplace. Achievement of intrinsic motivation does not rely on others and are directly associated with job performance (Baijumon, 2015). Employees get intrinsic motivation when they achieve in their career advancement, professional growth, and feel that they work in a comfortable environment that offers them pleasure and a sense of accomplishment.
Using Motivation and Rewards in Business
Employee motivation is essential to the performance of a business organization since motivated employees have increased output and productivity. Businesses can motivate their employees by ensuring that they have an effective and responsive reward system which offers both extrinsic and intrinsic employee motivation (Davoren, 2018). For instance, better wages, benefits and allowances and recognition can improve extrinsic motivation. However, most employees feel that they feel better when they work in places where they can gain career progression and personal growth. Imperatively, businesses need to use both extrinsic and extrinsic motivation to increase and improve their employees’ performance.
Conclusion
Effective organization behavior and culture relies on how employers create reward systems that motivate their employees to perform. As demonstrated, they need to apply both need and process-based theories to understand their employees and how they can motivate them through effective reward systems.
References
Baijumon, P. (2015) Organizational Theory and Behavior; Retrieved from
http://www.universityofcalicut.info/SDE/I_MCom_Organizational_theory_and_behaviour_on16March2016.pdf
Cherry K. (2017) What is Extrinsic Motivation? Accessed from
https://www.verywellmind.com/what-is-extrinsic-motivation-2795164
Davoren, J. (2018) What Types of Rewards Would Motivate Workers in an Organization?
Retrieved from http://smallbusiness.chron.com/types-rewards-would-motivate-workers-organization-18650.html
