Types of employee motivation

The employees of any company can be defined as the real assets to the company where they decide the degree of success that the entity is going to achieve (Mohsan, et al., 2004).Since the employees like engine of the entity, the employees need to be given with a proper environment and stimulus to work within the organization for better execution of tasks of their jobs in order to achieve the organizational objectives (Faisal, et al., 2017), Superior manager’s tasks are to get the operations done by the employees. In order to perform such activities, the manager ought to motivate employees, making them satisfied and committed to take their maximum contribution for a sustainable competitive advantage (Tella, et al., 2007)

According to many researchers the employee motivation can be categorized into two categories based on the fact that the employee motivation is from inside or outside factors,

1.     Intrinsic employee motivation
2.     Extrinsic employee motivation (Armstrong , 2006) (Faisal, et al., 2017)

Intrinsic Motivation 

Intrinsic motivational factors can be considered as the factors that generated within of employees which affects employees to behave in a certain way and to direct themselves to a specific direction (Armstrong , 2006). Thomas & Velthouse (1990) defined intrinsic motivation as, “the positive value experiences that an employee obtains from the tasks of the job” i.e., intrinsic motivation deals with performing specific tasks since such tasks personally rewarding the employees other than doing a task for reward or punishment by third party (Sennett, 2021). The intrinsic motivation within an employee may occur from inherited interest in the specific task which provides and enjoyment to the employee by performing such activity, carrying the skills and abilities to perform job tasks meanwhile it is demanded by the employer (Bontempi, 2019). When intrinsic motivation is taken place, the employees are considered to be self-motivated since they enjoy the task or the challenge by completely finishing the tasks (Faisal, et al., 2017). Intrinsic employee motivation includes,

•      Responsibility (Feel that the task is important and having control on the available resources to perform that task)
•       Autonomy (The employees are feeling free to act with freedom)
•       Opportunities for developing skills and abilities
•       Tasks that are interesting and challenging
•       Advancement opportunities for employees (Armstrong , 2006)

There are four intrinsic rewards that increases the employee engagement of an entity towards the organizational goals. When the employees are feeling satisfied on their contribution towards the goal achievement The employees get to know that they are worthwhile (meaningful) to the business and given with the capability to change the process or implement a new change which is right (choice) in sight of employees including the capability to perform the job in good manner (competence) and making a continuing progress (progress) to achieve the ultimate goal of an employee creates the four intrinsic rewards that give rise to the intrinsic motivation (Thomas, 2009). A study carried out by Danish, et al.,(2015) states that there is the positive correlation between the intrinsic rewards and the job performance of the employees meanwhile it has an effect on the intrinsic and extrinsic motivation.  

As an example, an employee newly recruited to the organization may found himself enthusiastic to learn the processes and the functions allocated to him from a superior or with the help of colleague which can be considered as intrinsic motivation.

Extrinsic Motivation

Extrinsic motivational factors may persuade an employee to do a specific task or to behave in a certain way in order to receive a reward or to avoid any kind of punishment that is subjected to non-performing of task (Sennett, 2021). Reinforcement or the rewards offered to get a specific task done includes verbal praise from superiors, recognition and awards, monetary rewards, prestige, higher job titles and popularity within the entity (Bontempi, 2019). Further, outside effects may also include punishments including disciplinary actions, criticisms and holding pay of salaries and benefits (Armstrong , 2006). The difference between extrinsic and intrinsic motivation is that intrinsic motivation comes inside from the attitudes of the employees meanwhile extrinsic motivation is from outside (Sennett, 2021). Extrinsic motivation can have a great impact on the behaviors and way of work of employees in order to get the works done. However, due to its nature, it is considered to be having short term effect on employee’s job performance and organizational performance rather having a longer-term effect (Armstrong , 2006). As per Reiss (2012, the extrinsic motivational incentives to motivate employees like financial rewards undermines the intrinsic motivation of an employee, where the employee behaves in a specific way or engaged in particular task not for the interest that risen from inside, but for the extrinsic incentive provided by outsiders citing the self-determination theory.

For an example for extrinsic motivation, an employee who is newly recruited may be provided with financial benefits, Overtime for working. In such case, the employees are motivated due to the benefits not by his attitude which can be considered as extrinsic motivation.

In conclusion, intrinsic motivation is suggested to be most appropriate in long-term direction as it is self-directed motivation occurs from the inside of people and it does not depend or contingent on level of rewards or punishments given to employees due to the inclusive characteristic of perceived control of employees themselves (Bontempi, 2019). Extrinsic motivation is useful when the employees are not motivated intrinsically, but extrinsic motivation undermines the intrinsic motivation (Armstrong , 2006).

Source - (Blades21, 2018) - https://www.youtube.com/watch?v=-kqaXEw1zao&t=156s

References

Armstrong , M., 2006. Human Resource Management Practices. 10 ed. London: Cambridge University Press.

Blades21, 2018. Types of Motivation. [Online]
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[Accessed 04 05 2022].

Bontempi, E., 2019. Intrinsic and Extrinsic Motivation: Implications in School, Work, and Psychological Well-Being. [Online]
Available at: https://www.excelsior.edu/article/types-of-motivation/
[Accessed 03 05 2022].

Danish, R., Khan , M., Shahid, A. & Raza, I., 2015. Effect of intrinsic rewards on task performance of employees: Mediating role of motivation. International Journal of organizational leadership, Volume 4, pp. 33-46.

Faisal, N., Assal, H., Shrafat, F. & Zeglat, D., 2017. The Impact of Employee Motivation on Organizational commitment. European Journal of Business and Management, 9(15), pp. 134-146.

Mohsan, F., Nawaz, M. & Khan, M., 2004. Are Employee Motivation, Commitment and Job Involvement Inter-related: Evidence from Banking Sector of Pakistan. International Journal of Business and Social Science,, 17(2), pp. 226-233.

Reiss, S., 2012. Intrinsic and Extrinsic Motivation. The Generalist’s Corner, 39(2), pp. 152-156.

Sennett, P., 2021. Understanding intrinsic and extrinsic motivation. [Online]
Available at: https://www.rochester.edu/emerging-leaders/understanding-intrinsic-and-extrinsic-motivation/
[Accessed 01 05 2022].

Tella, A., Ayemi, C. & Popoola, S., 2007. Work Motivation, Job Satisfaction, and Organisational Commitment of Library Personnel in Academic and Research Libraries in Oyo State, Nigeria. Library Philosophy and Practice.

Thomas, K., 2009. Intrinsic motivation at work. 2 ed. San Fransisco: Berrett-Koehler Publishers.

Thomas, K. & Velthouse, B., 1990. Cognition Elements of Empowerment: An "Interpretive" Model of Intrinsic Task Motivation. Academy of Management Review, Volume 15, pp. 666-681.