2.0 The Concept of Reward Management Practices
Rewards can either be intrinsic or extrinsic which can encompass both monetary and non monetary incentives. Intrinsic and extrinsic rewards are different but they are closely associated. Often an extrinsic reward for the recipient will provide intrinsic rewards. For instance, an employee who receives a reward in the form of salary increment can also interpret the wage increase as a sign of a job well done. Extrinsic rewards include all rewards that have a monetary value such as basic pay, pay contingent on performance, contribution, competency or skills.
According to most of these theories, motivation can indeed be predicted and explained. One of these theorists is Maslow (1954), who recognized the theory of the hierarchy needs.
According to his theory, human beings have five needs and these needs must be satisfied firstly at the lower level. At this level, the individual needs are very simple such as people want to satisfy their physiological needs and their security. At the higher levels of needs, people want to satisfy their relationship, achieve self-esteem and self-actualization. To put it simply, Maslow 's work focuses on how an individual 's attitudes affect their behavior. Alderfer (Alderfer, 1969) was agreed with Maslow’s need theory, but he redesigned it in his own positions. This work is called as ERG theory of motivation. He rewrote Maslow’s hierarchy of needs into three simpler and wider levels of needs such as
Maslow’s theory of motivation is called the “hierarchy of needs”. Maslow believes that people have five main needs in the following order of importance;
Psychologist Abraham H. Maslow is the developer of Maslow’s hierarchy of needs. The theory covers human behavior in terms of basic requirements for survival and growth (Cengage, 2002). The theory was developed in the early 1960’s. During this time psychology was taken over by two different views. One side was the human behavior and the other one was the behaviorist. Maslow explained that psychoanalysts had not accomplished the task to consider the behavior of healthy humans. He also mentioned that many subjective experiences that related with human behaviors were being ignored by behaviorist. In the beginning Maslow examined motivations and experience of many healthy individuals. He recognized that there are many requirements in this theory that are important for human survival and to help motivate individuals. He conceptualized different human needs as a pyramid with five levels in
Abraham Maslow’s theory, Theory of Hierarchy Needs, is a motivational theory in psychology that has a tier model of the five things a human needs. Maslow stated that people are motivated to achieve certain needs and that some needs take precedence over others. The five stages, from bottom to top, include Physiological needs( food, water, warmth, and rest), the second stage: Safety Needs ( security and safety), third stage: Belongingness and love needs ( intimate relationships and friends), the fourth stage: Esteem Needs (prestige and feeling of accomplishment), and finally the last stage: Self-actualization ( achieving one’s full potential, including creative potential). The five stage model can be divided into
As it was mentioned before, the key idea of Maslow’s Hierarchy of Needs theory relates to the existence of several sets of motivation and needs that govern human behavior. Hence, the major concepts of this theory include certain needs that are grouped into sets based on their place within the hierarchy of all the needs. The first version of the theory has five needs, which are divided into
Abraham Maslow was an American psychologist who introduced the concept of the motivational needs in his paper “A Theory of Human Motivation” written in 1943. He explains that humans have certain needs that need to be fulfilled and when
Third possibility is the both type of motivations, intrinsic and extrinsic, are the reason for someone’s action. It is when the person is doing something knowing there is going to be a reward at the end, also during that action the person will develop in skills, professionalism, etc. The example could be taken from the essay that Kohn wrote. The reward that Kohn could have got is being paid for writing the essay, with the main back up that the action will bring development of experiences in writing professionally. Another example could be a man runs in a burning building to save his neighbor’s kid. That man
Abraham Maslow (1908–1970), some-time President of the American Psychological Association, is best known for his work on human motivation and in particular for his Hierarchy of Needs, which was first defined in a paper of 1943. Five basic needs are defined, all of which he considered to be hard-wired in the human species. They are arranged hierarchically, with self-actualization referring to people’s desire for self-fulfillment, namely, the tendency for them to become actualized in what they are potentially. This tendency might be phrased as the desire to become more and more what one idiosyncratically is, to become everything that one is capable of becoming (Maslow, 1943, p.22). Maslow’s 1943 paper mentions cognitive needs such as the desire to know and to understand, and also aesthetics, but does not place them within the hierarchy of five.
The rewards offered can be extrinsic such as wages, incentives and bonuses, or intrinsic such as job satisfaction, an internal feeling of worth and a sense of well being on the job.
Maslow (1943) stated that people are motivated to achieve certain needs. When one need is fulfilled a person seeks to fulfil the next one, and so on. The earliest and most widespread version of Maslow's (1943, 1954) hierarchy of needs includes five motivational needs, often depicted as hierarchical levels within a pyramid.
Extrinsic/External Rewards are rewards given by another person, such as company bonuses, to motivate employees.
During his lifetime, Abraham Maslow 's work revolved around studying motivation and needs. He was the creator of the theory of motivation. This theory was originated off of the idea of having self-actualizing needs that have to be fulfilled. There is a difference in classification of these needs, with there being lower and higher needs. This difference created what is known as the hierarchy of needs (Sheehy, Chapman, & Conroy, 1997; Wilson, 1972). These include physiological, safety, belongingness and love, esteem, self-actualization- holistic dynamic theory (Dobbert & Mackey, 2015; Maslow, 1971; Sheehy, Chapman, & Conroy, 1997). The lowest needs have to be satisfied to reach the higher needs (Sheehy, Chapman, & Conroy, 1997). These lower needs are known as basic needs, and they are what drive humans to self-actualize (Dobbert & Mackey, 2015; Wilson, 1972). The first of these lower needs is physiological needs, such as hunger and thirst. Next is safety needs, or desire to feel secure and free from harm. After comes love needs, which are also known as belongingness needs. These needs are met when one feels as though they have people who need them. Next, esteem needs are fulfilled when they are able to gain a satisfying image of themselves. Finally, the last need is self-actualization, or the desire to reach one 's fullest capacity in life (Sheehy, Chapman, & Conroy, 1997; Taormina & Gao, 2013; Wilson, 1972).
The ERG theory based on work, but there is slight different. Alderfer has divided his needs to three groups of needs existence needs, relatedness needs and growth needs. The definition of needs Alderfer firstly, existence needs one of the necessary needs that are physiological and security needs such as, needs for food. Secondly, relatedness needs which is about the individual and the society in which they live. Finally but not least, growth needs include the human ability and self-realization. However, Alderfer theory has a different aspect with Maslow's. That if a person failed to reach the top of that needs he have to return again to the basic needs. While Maslow's theory has focused on seeking to achieve human need one at the same time. On the other hand, ERG believes that human could achieve more than one needs at the same time (Alerfer 1972, cited in Smith and Taylor 2007). Alderfer theory is in line with the needs of Maslow's theory that the individual
Maslow’s hierarchy of needs theory was divided into five levels, and the theory was arranged ascending accordingly to human needs: physiological needs, safety needs, social needs, esteem needs and self-actualization needs.
Clayton Alderfer proposed the ERG theory of motivation. According to Alderfer, there are three groups of core needs: Existence (basic material existence, safety needs); Relatedness (social and self-esteem needs); and Growth: an intrinsic desire to grow and self-fulfillment. Contrary to Maslow’s theory, he proposed that more than one need may be operative at the same time and if the
g. Motivating reward can either be intrinsic or extrinsic. An intrinsic reward appeals to a person’s desire for self-actualization, curiosity, enjoyment, or interest in the work itself. An extrinsic reward appeals to a person’s desire for attainment distinct from the work itself: a cash bonus, a promotion, or stock options.