International Journal of Business and Management
March, 2009
Employee Rewards and Motivation in Non Profit Organisations: Case Study from Australia
John Tippet (Corresponding author) Centre for International Corporate Governance Research Victoria University PO Box 14428, Melbourne 8001, Australia Tel: 61-3- 9919-1058 E-mail: john.tippet@vu.edu.au Ron Kluvers Faculty of Business and Enterprise Swinburne University Hawthorn, Melbourne 3122, Australia Tel: 61- 3-9214-8435 Abstract This paper is a study designed to understand how intrinsic rewards, as compared with extrinsic rewards, are perceived as sources of motivation by staff of NFP organisations. Data was gathered through a survey featuring a number of statements about intrinsic and extrinsic rewards. The small-sample t-test was used to determine the significance of responses, and hence test the hypothesis that employees are motivated by intrinsic rewards. The findings of the study are that significant t-test p-values highlighted intrinsic rewards – in particular, the achievements of employees’ clients, work/life balance, and having fun at work – as being important staff motivators. Keywords: Intrinsic rewards, Extrinsic rewards, Motivation, Context, Not-for-profit organisations 1. Introduction The aim of this study is to understand what motivates employees to work in Not-for-Profit (NFP) organisations; in particular, to consider the importance of intrinsic factors in the motivation of people to work in and remain in the NFP sector despite being paid less than their private sector counterparts. The hypothesis to be tested is that employees are motivated by intrinsic rewards. Frey (1997), whilst essentially concerned with the crowding-out effect extrinsic incentives may have on intrinsic work motivation, suggests that when employees’ income rises above subsistence level, they seek meaning in work; that is to say, intrinsic motivation becomes more important. Since employees in the organisation that is the... [continues]
March, 2009
Employee Rewards and Motivation in Non Profit Organisations: Case Study from Australia
John Tippet (Corresponding author) Centre for International Corporate Governance Research Victoria University PO Box 14428, Melbourne 8001, Australia Tel: 61-3- 9919-1058 E-mail: john.tippet@vu.edu.au Ron Kluvers Faculty of Business and Enterprise Swinburne University Hawthorn, Melbourne 3122, Australia Tel: 61- 3-9214-8435 Abstract This paper is a study designed to understand how intrinsic rewards, as compared with extrinsic rewards, are perceived as sources of motivation by staff of NFP organisations. Data was gathered through a survey featuring a number of statements about intrinsic and extrinsic rewards. The small-sample t-test was used to determine the significance of responses, and hence test the hypothesis that employees are motivated by intrinsic rewards. The findings of the study are that significant t-test p-values highlighted intrinsic rewards – in particular, the achievements of employees’ clients, work/life balance, and having fun at work – as being important staff motivators. Keywords: Intrinsic rewards, Extrinsic rewards, Motivation, Context, Not-for-profit organisations 1. Introduction The aim of this study is to understand what motivates employees to work in Not-for-Profit (NFP) organisations; in particular, to consider the importance of intrinsic factors in the motivation of people to work in and remain in the NFP sector despite being paid less than their private sector counterparts. The hypothesis to be tested is that employees are motivated by intrinsic rewards. Frey (1997), whilst essentially concerned with the crowding-out effect extrinsic incentives may have on intrinsic work motivation, suggests that when employees’ income rises above subsistence level, they seek meaning in work; that is to say, intrinsic motivation becomes more important. Since employees in the organisation that is the... [continues]
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