When it comes to designing a reward system for an organization many factors come into play. “Different people have different values, needs, wants and expectations, and unless the conditions can be addressed satisfactorily the outcomes can prove to be disastrous” (Making Recognition and Rewards a “Whole-Person” Experience, 2009). The reward system needs to meet two main factors, intrinsic rewards and extrinsic rewards. I will first briefly describe the positive and negative aspects of intrinsic reward and extrinsic rewards. Then I will explain my plan for a Reward System to be used in the Human Service field.
First I would like to talk about extrinsic rewards. “Extrinsic rewards tend to leave people feeling controlled by the rewards” (Intrinsic Motivation and Self Determination, 2004). This type of a reward tends to be more of a monetarily based rather than a non-monetarily based. They can include such things as pay raises, profit sharing, stock options, and company paid vacations. Though the monetary reward shows the employee that they are appreciated, it is only a temporary reward, and begins to become something that is expected. Extrinsic rewards can also effect intrinsic motivation.
Intrinsic rewards offer a more sustainable compensation for a job well done. “Employees would like to be recognized for their efforts and know their actions are appreciated” (Kranzusch, 1997). The chart below shows different factors that external motivators have on an employee’s intrinsic motivation.
External Motivators | Effect on Intrinsic Motivation |
Monetary rewards | Tend to decrease intrinsic motivation |
Other tangible rewards | Tend to decrease intrinsic motivation |
Deadlines | Tend to decrease intrinsic motivation |
Threats of punishment | Tend to decrease intrinsic motivation |
Competition against others | Tends to decrease intrinsic motivation |
Directives and evaluations | Tend to decrease intrinsic motivation...