*Extrinsic motivation* (short note)

Meaning of extrinsic motivation

Extrinsic motivation is motivation through rewards that come from outside the work itself. Extrinsic motivators are external rewards an employee receives which give no direct satisfaction at the moment the work is done; retirement plans and health insurance are examples. Keith Davis noted that Herzberg's distinction between job content and job context matches the psychologists' distinction between intrinsic and extrinsic motivators, so the extrinsic factors are those of the job context.

Forms of extrinsic rewards

• Job-context factors. In Herzberg's classification the extrinsic, or maintenance, factors include pay, working conditions, job security, the quality of supervision, status, and company policy and administration, along with relations with peers, with subordinates and with supervisors.
• Financial incentives. The monetary incentives used in organisations, such as perquisites like car or housing allowances, bonus paid over and above wages, retirement benefits like provident fund and pension, and basic pay and allowances, are all rewards given from outside the task. Money matters because its purchasing power makes it a very important incentive for every individual.

A delivery company in Bengaluru that pays riders an extra amount per order beyond a daily target, and gives them health insurance, is relying on extrinsic motivation.

Extrinsic and intrinsic motivation

The contrast rests on the study text. A software tester in Pune who enjoys tracking down a stubborn bug is driven intrinsically; the same tester working late only for an overtime payment is driven extrinsically.

Limits of extrinsic motivation

Before Herzberg, managers concentrated on the extrinsic maintenance factors, and this often gave poor results; his model led to more emphasis on intrinsic factors, which serve employees, the organisation and society better. Herzberg held that certain job factors mainly dissatisfy employees, while others act as the satisfiers or motivators. Even so, extrinsic rewards cannot be dismissed: the factors overlap, so what dissatisfies one employee may satisfy another, and for Indian industrial workers, given the economy and unemployment, the lower-order needs still play a dominant role, and these are the needs that basic salary and a pension plan serve.