Motivation is a combination of direction, intensity and persistence of effort towards a goal. These mean a highly motivated person putting in a lot of effort, for a long period of time at a directed task is highly desired. Unmotivated people will lack intensity of their effort/duration or a sense of direction of their efforts. Motivation has a strong relationship to performance according to the expectancy theory thus is highly important for organisations to have highly motivated workers to reduce staff changeovers keeping their employees interested, satisfied and challenged via intrinsic and extrinsic factors. Surely everyone has worked a part time job that at first they were very enthusiastic about however over time your excitement for going to work started to decline and going to work became like such a drag. Incentive pay being a good motivator for an individual worker is an extrinsic factor of motivation. But this alone is usually not enough. We have heard of many career changes especially in today’s society where people go from a job they have 3-10 years’ experience in then have them change to entry level/graduate position as they found their previous job not fulfilling. In today’s world we hear someone who has been a profession eg. accountant, engineer switch their career paths as they found their job dull/boring. High contingent pay does influence workers to stay at their job but this motivator is not as long lasting as intrinsic factors to motivate. A combination of intrinsic factors and extrinsic factors both are required to keep workers highly motivated at their jobs.
Does high contingent pay influence how workers perceive and feel about their work, and employees’ intrinsic motivation for their work? According to a study management theories and traditional practices using an extrinsic motivator to motivate workers are no longer enough to keep a worker’s loyalty and compliance. As extrinsic motivators are not from the work itself, but rather from management that allocate these motivators to ensure work is done in an efficient and proficient manner. Intrinsic motivators does come from the work itself, whether it is pride of technical accomplishment, service to a customer, or making a contribution on the team or even the world.
Over 39 studies showing 47 relationships between financial incentives had a very low correlation to performance quality. While another article showed that specific business objectives with incentive tools like commission and bonuses on top of a base salary would push individuals that “extra mile” an incentive schemes that offered peer recognition can have a greater impact on sales performances. In the short term extrinsic motivators would seem to have a greater effect than intrinsic motivators. However over time the financial and nonfinancial incentives both have an impact except in terms of employee turnover where an individual with lower intrinsic motivators to a job would lead to higher turnover. In today’s cut-throat world organizations cannot afford to keep someone simply for their worker loyalty. Therefore individuals are more responsible to develop their skills to ensure their own “employability”. This mobility has created greater competition for skilled employees amongst organizations. Talented workers have more choices than ever before, and are likely to leave if not satisfied with their employer or job content. As employees have become more likely to leave unrewarding jobs, the impact of losing individuals has become greater. With global competition and a scarcity of talent, few organizations can afford the cost of recruiting and training replacements. Managing for intrinsic rewards, then has become the crucial next step in keeping employees.
The Phenomena of Intrinsic Motivation
What motivates people to do their best work in any endeavor they undertake? Management theory and practice has traditionally focused on...