Mod 6: Intrinsic and Extrinsic Rewards
For this assignment, imagine that you are an organizational change consultant who has been asked to propose intrinsic and extrinsic reward plans to an organization (of your choice). In your proposal, you will not only formulate the plans but also analyze their worth to the organization as part of the firm’s implementation of a new social responsibility change plan. That change plan will task employees with new or additional duties; thus the reward plans should aim to support employee attitude and behavior including increasing creativity and problem-solving skills.
Spector (2013) says this about reward plans: “Incentive pay, regardless of the specific design, is an extrinsic reward: a reward external to the individual and provided by the organization. Money is the most obvious and prevalent example of an extrinsic reward. Motivational theory tells us that extrinsic rewards, although powerful, may not be terribly effective in driving long‐term behavioral change” (p. 142).
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