Use of Intrinsic and Extrinsic Rewards on Improving Job Performance in an Organization

Universiti Malaya
Faculty of Business And Accountancy
Master of Business Administration
Semester 2, Session 2012/2013

CSGB6101 Human Capital Management
Group Assignment

Title:
The Use of Intrinsic and Extrinsic Rewards on Improving Job Performance in an Organization

Date of Submission:
18 May 2013
Word Count:

Introduction
In the world of rapid changing environment and globalization, for an organization to compete favourably and competitively, the performance of their employees goes a long way in determining the success of an organization (Ajila and Abiola 2004). Both public and private sectors organizations are putting increasing attention on human resource management to maintain and motivate its most valuable and worthy assets, the employees. According to Catalini
(2012), organizations are taking more of a proactive stance towards ensuring employees are satisfied with their place of employment and feel a level of commitment and connection to employers. Back then, employee satisfaction is often not a primary focus of an employer.
Organizations routinely focus on finances, production, and pleasing customers and neglect the impact their actions or lack of action has on employee satisfaction. The consequences may be seen in products or services that are not up to standards and an increase in turnover and increase in cost for employers. Hence, finding the right balance between employee satisfaction and its enhancement of employee motivation and performance is imperative as it will have positive effects on several aspects of an organization, including lowering turnover rates and increasing productivity and profit.

The use of rewards has been found over the years to be one of the management tools in the organization to increase job performance. Besides, it is common to offer employees attractive, lucrative and competitive remuneration packages. For example, an attractive reward packages has been a norm of any employment

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