Difference between intrinsic and extrinsic rewards

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Define the organizational reward system and distinguish between intrinsic and extrinsic rewards. What is more important to you and why?

students response


The human resource manager would typically be responsible for the organizational reward system and use it as an effective motivation tool (Rue, Ibrahim & Byars, 2016, p. 243).  The organizational reward system can be defined as an “organizational system concerned with the selection of the types of rewards to be used by the organization” (Rue, Ibrahim & Byars, 2016, p. 244).  Organizational rewards can be both intrinsic or extrinsic. Extrinsic are more tangible such as health coverage versus intrinsic which is more about feelings of accomplishment (Rue, Ibrahim & Byars, 2016, p. 244).  Rue, Ibrahim & Byars (2016) make a great point stating they are connected due to a person feeling accomplished when they receive an extrinsic reward such as a pay increase (p. 244).

Extrinsic rewards are more important for me than intrinsic because I value pay, benefits and incentives through my employer.  I agree with the author when they state that the two are connected because if I receive an incentive payment, having that tangible item makes me feel accomplished in my job.  At this time in my life, I value a job that has security and with that comes across-the-board pay increases versus receiving recognition.


Rue, L., Ibrahim, N., & Byars, L. (2016). Human Resources Management, (11th Edition). NY: McGraw-Hill.

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