Effects Of Extrinsic Motivation

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CHAPTER - 1 INTRODUCTION 1.1 Background One of the important assets of any organizations are its human resources or employees because they are the key component in achieving organizational goals and objectives. And the only way to get employees to work hard is to motivate them.Every individual in an organization is motivated by different things. When talking in term of employee motivation it can be simply defined as “Employee motivation is a reflection of the level of energy, commitment, and creativity that a company's workers bring to their jobs.” Employee performance is significant for the success of any organization. Thus it is essential that the management of the organization should consider improving employee performance by encouraging…show more content…
Extrinsic Motivation Extrensic motivation are motivation that comes from outside an emloyee. Extrinsic motivation is driven by external (tangible) reward such as money, security, fame, promotion, contract of service and the work environment. These are what an organization need to do to motivate their employee. Extrinsic motivation are determined at the organisational level. Though extrinsic motivation has an immediate impact on the employee but will loose its effect over time (Armstrong, 2003) 2. Intrinsic Motivation According to (Ryan and Deci, 2000) (pp. 56), Intrinsic motivation is defined as the doing of an activity for its inherent satisfaction rather than for some separable consequence. When intrinsically motivated, a person is moved to act for the fun or challenge entailed rather than because of external products, pressures or reward. Intrinsic motivation is concerned with psychological reward such as a sense of challenge and achievement, appreciation, recognition and oppertunity to use one's ability. Intinsic motivation has long term effect because they are inherent and isn't imposed from outside (Armstrong, 2003) 2.4 Motivation…show more content…
Although employees were not satisfied, they could not complain because firm would lay off workers which led to an increase strikes and other form of strikes by dis-satisfied wokers. 2.5 Expectancy Theory Expectancy theory was formulated by Victor H. Vroom in 1964 and can be classified as process theory because it is only applicable in dynamic state and is based on people's expectation. This theory postulates that motivation depends on strength of an expectation that the act will be followed by a given outcome and on the preference of an individual for that outcome. There are three variables in this model and they are: Valence: Valence refers to the degree of desirability of outcomes as seen by the individual. OR Valence refers to the strength of an individual's preference for a particular outcome Other terms used for valence are value, incentives, attitude and expected utility. Valence ma vary from -1 to

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