Non-Monetary Rewards and Employee Motivation
What are rewards and incentives given to employees that are not financial in nature called?
A. Monetary rewards
B. Extrinsic rewards
C. Intrinsic rewards
D. Non-monetary rewards
What impact do non-monetary rewards have on employee motivation?
Answer:
D. Non-monetary rewards
Non-monetary rewards, including intrinsic rewards, are recognized as important elements to boost an employee's motivation.
Explanation:
Rewards and incentives given to employees that are not financial in nature, including intrinsic rewards received from the job itself or from the work environment, are called Non-Monetary Rewards. These rewards can be intangible such as praise or recognition. The way these rewards affect an individual varies. When the employee does not expect such a reward and receives it as a surprise, it can boost their intrinsic motivation to carry out their tasks. For instance, a businessman may not ask for a raise, but find reassurance and motivation in the belief that hard work is its own reward.
On the other hand, the anticipation of a non-monetary reward may lead to a decrease in intrinsic motivation according to some research. However, other studies suggest that intrinsic motivation may increase when verbal praise is given. For example, if a baker like Odessa receives regular compliments on her baking or cake decorating skills, her motivation to bake in her free time might remain high.
Non-monetary rewards, such as verbal praise or recognition, play a crucial role in boosting employee morale and motivation, which in turn can contribute to increased productivity and job satisfaction.
Non-monetary rewards are a key aspect of employee motivation in the workplace. While monetary rewards like bonuses and salary increases are important, non-monetary rewards can have a significant impact on employee engagement and satisfaction.
Non-monetary rewards can take various forms, including verbal praise, recognition, opportunities for career growth, flexible work arrangements, and a positive work environment. These rewards help create a positive and motivating atmosphere where employees feel valued and appreciated for their contributions.
Research has shown that non-monetary rewards can enhance intrinsic motivation, which is the internal drive to perform well and find fulfillment in one's work. By acknowledging and rewarding employees for their efforts and achievements, organizations can cultivate a culture of appreciation and excellence.
Moreover, non-monetary rewards can foster a sense of belonging and loyalty among employees, leading to higher levels of engagement and commitment. When employees feel motivated and valued, they are more likely to be productive, innovative, and dedicated to their work.
In conclusion, non-monetary rewards play a vital role in boosting employee motivation and morale. By recognizing and rewarding employees for their hard work and dedication, organizations can create a positive and motivating work environment that can lead to improved performance and job satisfaction.