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?

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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.

References:

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

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