Intrinsic Versus Extrinsic Motivators

Part I.         

        Mr. President per our conversation this morning. I would like to remind you that the processes of motivating employees is one of the most important functions of management. One of the biggest challenges faced by us managers is getting employees to do what they are supposed to do. For some people, the rewards that employees receive from the organization are motivation enough for them to work their hardest. However, no two people are the same and what serves as motivation for one employee, could possibly be perceived by another employee as favoritism.

        Everyone has their own personal motivators, intrinsic and extrinsic. In this letter I hope to be able to differentiate between them both.  I will also discuss these motivators along with theories and perspectives (Money and Recognition) that help corporations influence employees. I will also discuss "What's In It For Me?" and how it can be used as an a motivational tool.

INTRINSIC VERSUS EXTRINSIC MOTIVATORS

        Motivation can be defined in many ways. It can be described as the drive to do well, to succeed, to please, and to perform (Peak Performers, 2001). Herzberg said that motivation is what happens when somebody changes their own batteries, meaning that motivation occurs from the inside  (intrinsic). Intrinsic motivators come from within the individual and include self-esteem and accomplishment.

        Self-esteem is an important motivator because it is strongly related to employee performance. People with high self-esteem tend to do a better job (Peak Performers, 2001). Extrinsic motivators are more money, job promotions, or special perks like individual parking spaces (Thomas, 2002). Both intrinsic and extrinsic motivators have their strengths and weaknesses.

Why Extrinsic Motivators Work

        External motivators work for several reasons. First, they allow group work habits to change and become more creative and productive. Second, they allow individuals to discover and develop their hidden talents through brainstorming, work planning, and effective communication. Next, the group learns to play as a team, to pull together toward a common goal and to win. Finally, when external motivators involve bonuses, incentives, or recognition, individuals feel honored and well compensated (Peak Performers, 2001). Extrinsic rewards can be effective, but they tend to last a shorter period of time than intrinsic rewards.

Why Intrinsic Motivators May Not Work

        While doing research, the main reason that I found for intrinsic motivation to fail is because it is undermined by the rewards given by external motivators. (Thomas, 2002). The compensation benefits from external rewards can sometimes be more appealing than internal rewards so individuals start working for them instead.

        Because intrinsic motivation comes from within the individual, it will be different for each person. This is related to the "What's In For Me" perspective and Maslow's theory of needs because each individual will have different needs that have to be satisfied for each level of the hierarchy.