Content area
Full Text
Abstract
In a competitive business environment, the concept of rewards and employee motivation has become a popular point of discussion in many successful organisations. Companies need to review their reward systems in order to improve emplo yee motivation, increase performance and stay competitive. The main purpose of this research was to investigate the role that intrinsic and extrinsic rewards play in motivating employees. This study in assessment of this problem adopted an explanatory research design using quantitative methodology and a survey strategy carried out among employees at a medical devices company in South Africa in order to assess these. The research had the following three essential objectives: to ascertain whether employees value rewards as motivation factors, to establish the extent to which employees are satisfied with current reward systems, and to identify which rewards (extrinsic or intrinsic) emplo yees consider most beneficial. Forty (40) questionnaires were collected from respondents in order to explore and analyse their opinions on these topics. The analysis of the data collected from the questionnaires suggested that rewards are highly valued as a motivating factor by respondents. The research further suggested that employees were generally satisfied with, and benefited from the current rewards offered by the company. Additionally, it was found that employees were more motivated by intrinsic rewards rather than extrinsic rewards, although a thirteenth cheque and annual salary increases (extrinsic rewards) were the most ranked rewards for employees at the company.
Key Words: Impact, Intrinsic, Extrinsic, Rewards, Employee Motivation, Medical Devices, Business Environment
INTRODUCTION
Research has proven that continuing business success depends significantly on highly motivated employees who are productive and creative (Boyne and Hood, 2010); (Kohn, 1993). It is important for companies to understand the link between rewards and motivation and uncover what motivates their employees. The big challenge is to create an environment that allows all employees to feel valued, perform at their best, and achieve goals (Ward and Werner, 2004:201)
Prior research in the field accentuates the importance of determining the link between reward systems and emplo yee motivation and how they subsequently affect the productivity of employees and the success of the company (Boyne and Hood, 2010) (Kerr, 1995). The purpose of this research study is to explore the relationship between reward and motivation...