In the current era where organizations are faced with rapid and dramatic changes, the failure to align employees’ goals and behaviors to organizational objectives face the threat of being eliminated from the business map.
This paper pays critically analyses emerging trends in employee motivation through intrinsic reward systems as an important aspect in the field of organizational behavior, where the following key points will be explored;
- Accelerated pace of change has completely transformed how work is performed in different organizations, whether in the public or private sectors. Change has become an integral part of corporations. Additionally, emerging trends are impacting organizational operations significantly.
- Many firms are facing the challenges of increased diversity, growing competition, globalization of operations, ever changing technology, and flexibility. All these changes require organizational leaders to create and implement robust plans of adapting; otherwise their organizations will be faced out.
- Many scholars of organizational Behavior as well as organizational leaders opine that human resource has become the most important asset of any company in the 21st century. For instance, Putra et al. (2017) claim that organizations must create a pool of dedicated and engaged personnel for them to thrive. Irrespective of the industry in which an enterprise operates, attracting, developing, and retaining talented staff in an important step towards adapting to the various challenges it faces.
- As opposed to earlier times when money was the primary motivator for employees, intrinsic rewards have now topped the list of motivating factors for attracting, motivating, and retaining workforce.
II. LITERATURE REVIEW
This section will critically analyze the available literature on emerging trends in the field of organizational behavior, with emphasis on the effects of intrinsic and extrinsic motivators on employees’ performance, retention rates, and job satisfaction.
The following will be reviewed;
- Yoo et al. (2012), examine the role played by both intrinsic and extrinsic motivators on promoting e-learning the workplace. The authors argue that acceptance of e-learning by employees is central to the successful implementation of technology in the workplace.
- As technology becomes integral to enhancing efficiency in organizational operations, understanding factors that encourage its smooth adoption is critical in promoting organizational success. According to Aizza Anwar et al. (2018), intrinsic motivation denotes an individual urge to work and learn. On the other hand, extrinsic motivation represents external control to employees by managers.
- At the workplace, intrinsic motivators are more effective than extrinsic ones. In the current world, employees are not highly motivated by extrinsic rewards such as increased salaries. On the other hand, intrinsic motivators could significantly improve performance, job satisfaction, and persistence in work places.
- Singh (2016) notes that employees are motivated by different factors, such as employees’ beliefs, feelings, and thoughts besides the interplay of other social factors in the workplace. Additionally, the study mentions that motivation is a complex concept that not only entails intrinsic and extrinsic motivators, but also influenced by expectations and personality of an individual.
- Although extrinsic and intrinsic motivators may appear diametrically opposite, organizational leaders can use both to create an efficient and effective organization. On the other hand, Cho and Perry (2012) argue that intrinsic motivators are associated with employee satisfaction and reduced turnover. The scholars further opine that goal directedness and managerial trustworthiness increase leverage on intrinsic motivators towards job satisfaction while extrinsic motivators reduce the leverage.
- According to Putra et al. (2017), there is a need for organizations to create a pool of dedicated human resources to make companies more competitive and productive as they operate in today’s global business world.
- Just like many other scholars in the field of Organizational Behavior, the study recognize that engaging employees lead to reduced labor costs, increased revenues, improvement in employee satisfaction, work performance, and increased employee retention rates.
- Turner (2017) examines whether intrinsic or extrinsic motivators are the driving force behind employee performance in organizations. Putra et al. (2017) and Turner (2017) bring forth a crucial revelation regarding employee motivation in organizations.
- Shahzadi et al. (2014) posits that employees of today’s world must understand why they work hard. In other words, the only way to convince people to work hard is for organizational leaders to motivate them. However, just as Singh (2016) points out, workers cannot be motivated in the same way. Kuranchie-Mensah and Amponsah-Tawiah (2016) mention that employee motivation remains a sensitive subject that determine the level of employee productivity and performance in the workplace. Therefore, motivation, whether intrinsic or extrinsic, contributes significantly towards employee satisfaction, and thus, performance.
- Studies indicate that both intrinsic and extrinsic factors play an important role in motivating employees in different organizations.
- Traditional organizations focused use pay or remuneration as their most valued scheme of motivating employees. However, things have changed significantly in the recent past.
- Although many organizations still consider remuneration and other material rewards as an important motivator, organizational leaders of today’s world acknowledge that intrinsic factors are the best at motivating employees to improve performance, job satisfaction levels, and increase employee retention level .
- Kuranchie-Mensah and Amponsah-Tawiah (2016) found out in their study that extrinsic factors are a good motivator for employees in lower organizational levels. However, once pay exceeds subsistence level, intrinsic factors become stronger motivators.
- In the recent past, organizations have changed their style of working, and most firms have ventured worldwide. Companies are motivated to go global to tap into new market, technology, cheap labor, and reduce cost through specializations.
- Seeing organizations through the different phases of change associated with globalization is not always an easy task for most organizational leaders. As Itri et al. (2019) posits, incentive plans are essential in promoting retentive behaviors.
- As employees become more informed as a result of enhanced globalization and easier flow of information and technology, companies are finding it extremely important and challenging to retain talented employees.
- Employees play a crucial role in ensuring that organizational dreams are met. However, to achieve such milestones, it is essential to keep the workforce focused, talented and willing to go an extra mile to differentiate success levels.
- An important factor in fostering globalization is the ability to adopt the right technology. As Yoo et al. (2012) puts it, extrinsic motivation does not have a direct effect on behavioral intention. As a result, intrinsic motivators mediate the relationship between behavioral intention and intrinsic motivation.
- Employee motivation remains one of the most important factors in improving employee performance, reducing turnover, and increasing revenues among organizations.
- Motivation is a very complex concept. Therefore, organizational leaders must understand what motivators work best for what employees and in what situation (Daspit et al., 2017).
- Constant review of employees’ needs and preferences can give leaders a hint on what motivates their employees the best therefore should be done.
- Despite the existence of extensive scientific evidence proving that organizational behavioral trends are shifting focus from extrinsic to intrinsic motivators, the situation remains complicated.
- Organizational leaders are confronted with a huge challenge of creating equilibrium between the two motivators to optimize motivation.
- As opposed to earlier studies that found extrinsic motivation to be stronger in improving employee performance compared to extrinsic motivation, recent trends and studies prove that intrinsic motivators are the effective of the two. Majorly, these trends result from tasks becoming more complicated, thus, requiring higher levels of cognitive skills.
- Extrinsic motivation would work best for tasks that are straightforward and simple. The implication of these finding is that organizational leaders have to streamline tasks with reward systems.
- As Malik and Ravinder (2017) stipulate, customization of employees’ experiences should not be ignored in the organizational behavior.
- It is now critical to tailor reward systems depending on the level of task complexity and skills needed.
- For junior employees, extrinsic motivators can be applied. However, when tasks become more complicated, embracing intrinsic motivators would prove more useful.
- Organizations have witnessed tremendous development from earlier times in respect to operations, people, and structure.
- Growth in technological know-how, cross-culture environments, and influence of multi-nationals has forced organizational leaders to re-think ways of doing things.
- knowledge management, emerging employment relationships, and changing workforce are new challenges in organization behavior. One important aspect that has remained core in organizations is employee motivation. As staff members become more informed, the factors that affect their performance, turnover, and productivity also change.
- As witnessed in many organizations, extrinsic motivators are being outdone by intrinsic motivators.
- Many employees are no longer encouraged to perform well and stay in firms by better pay or material rewards. However, today’s workforce wants to work in environments where their welfare is well taken care of, their efforts are recognized and appreciated, and they are engaged in various organizational decision making processed.
- Organizational leaders must understand why motivates their employees as a way of creating programs that best optimizes productivity, enhances employee retention levels, and improves overall organizational performance.
Aizza Anwar, A. W., Shakeel, K., & Hassan, S. S. (2018). Impact of intrinsic and Extrinsic motivation on employee retention: A Case from the call center. International Journal of Academic Research in Business and Social Sciences, 8(6).
Cho, Y. J. & Perry, J. L. (2012). Intrinsic motivation and employee attitudes: Role of managerial trustworthiness, goal-directedness, and extrinsic reward expectancy. Review of Public Personnel Administration, 32(4), 382-406.
Daspit, J. J., Chrisman, J. J., Sharma, P., Pearson, A. W., & Long, R. G. (2017). A Strategic Management Perspective of the Family Firm: Past Trends, New Insights, and Future Directions. Journal of Managerial Issues, 29(1).
Itri, J. N., Bruno, M. A., Lalwani, N., Munden, R. F., & Tappouni, R. (2019). The Incentive dilemma: Intrinsic motivation and workplace performance. Journal of the American College of Radiology, 16(1), 39-44.
Kuranchie-Mensah, E. B., & Amponsah-Tawiah, K. (2016). Employee motivation and Work performance: A comparative study of mining companies in Ghana. Journal of Industrial Engineering and Management (JIEM), 9(2), 255-309.
Malik, R., & Ravinder, K. A. U. R. (2017). Emerging trends in organizational behavior: A perspective. International Journal of Research in IT and Management, 7(2), 10-20.
Putra, E. D., Cho, S., & Liu, J. (2017). Extrinsic and intrinsic motivation on Work engagement in the hospitality industry: Test of motivation Crowding theory. Tourism and Hospitality Research, 17(2), 228-241.
Shahzadi, I., Javed, A., Pirzada, S. S., Nasreen, S., & Khanam, F. (2014). Impact of employee motivation on employee performance. European Journal of Business and Management, 6(23), 159-166.
Singh, R. (2016). The impact of intrinsic and extrinsic motivators on employee Engagement in information organizations. Journal of Education for Library and Information Science, 57(2), 197-206.
Turner, A. (2017). How does intrinsic and extrinsic motivation drive performance culture in organizations? Cogent Education, 4(1), 1337543.
Yoo, S. J., Han, S. H., & Huang, W. (2012). The roles of intrinsic motivators and Extrinsic motivators in promoting e-learning in the workplace: A case from South Korea. Computers in Human Behavior, 28(3), 942-950.