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Group 6
Q1. Explain clearly intrinsic reward and extrinsic reward.
Intrinsic rewards are the satisfactions a person receives in the process of performing a particular action. In
other words, it is believed that when our employees have completed a challenging task, they will feel
success and get motivation. Thus, as a manager, we must assign some meaningful tasks to our employees
to accomplish for making them feel inspired to be more responsible. In addition to this, the employees will
be willing to keep staying on their own jobs and learn more skills.
Extrinsic reward is typically offered by a supervisor or manager who holds all the power in relation to
when extrinsic rewards are offered and in what amount. Extrinsic rewards are usually financial in nature,
such as a raise in salary, a bonus for reaching some quota or paid time off. It can also be as simple as
getting the better office, verbal praise, public recognition, promotions and additional responsibility. An
extrinsically motivated person will work on a task that they do not particularly care for simply because
of the anticipated satisfaction that will come from some extrinsic reward. For example, the employee
may not be interested in the product he is selling, but reaching the quota means the bonus, therefore
he is motivated to put forth the effort he needs to meet the sales quota.
Group 3
Q2. Explain the following two content theories of motivation – Maslow hierarchy of Needs and Alderfer
ERG Theory.
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Abraham Maslow’s hierarchy of needs theory proposes that humans are motivated by multiple
needs, existing in a hierarchical order. There are five basic human needs which are physiological
needs, safety needs, social needs, esteem needs and self-actualization needs. As we satisfy these
basic needs, we start looking to satisfy higher order needs. In other words, once a lower level need is
satisfied, it no longer serves as a motivator.
The most basic of Maslow’s needs are physiological needs. Physiological needs refer to the
need for food, water, and other biological needs. These needs are basic because when they are lacking,
the search for them may overpower all other urges. Imagine being very hungry. At that point, all your
behavior may be directed at finding food. Once you eat, though, the search for food ceases and the
promise of food no longer serves as a motivator. Once physiological needs are satisfied, people tend
to become concerned about safety needs. Are they free from the threat of danger, pain, or an uncertain
future?
On the next level up, social needs refer to the need to bond with other human beings, be loved,
and form lasting attachments with others. In fact, attachments, or lack of them, are associated with our
health and well-being.The satisfaction of social needs makes esteem needs more salient. Esteem need
refers to the desire to be respected by one’s peers, feel important, and be appreciated. Finally, at the
highest level of the hierarchy, the need for self-actualization refers to “becoming all you are capable of
becoming.” This need manifests itself by the desire to acquire new skills, take on new challenges, and
behave in a way that will lead to the attainment of one’s life goals.
ERG theory was developed by Clayton Alderfer and is a modification of Maslow’s theory in an
effort to simplify it and respond to criticisms of its lack of empirical verification. Instead of the five needs
that are hierarchically organized, Alderfer proposed that basic human needs may be grouped under
three categories, namely, existence, relatedness, and growth. Existence corresponds to Maslow’s
physiological and safety needs, relatedness corresponds to social needs, and growth refers to
Maslow’s esteem and self-actualization.
The ERG model and Maslow’s need hierarchy are similar as both are hierarchical and presume
individuals move up the hierarchy one need at a time. The ERG model contains a frustration-regression
principle, suggesting that failure to meet a higher-order need may trigger regression to an already
fulfilled lower-order need. For example, a worker who cannot fulfill a need for personal growth may
revert to a lower-order social need and redirect his or her efforts toward making a lot of money. The
ERG model suggests that individuals may move down as well as up the hierarchy depending on their
ability to satisfy needs.
Group 5
Q3. Explain Herzberg Two Factors theory.
Herzberg Two Factor theory is known as Herzberg’s motivation-hygiene theory and the dual-factor
theory. Herzberg Two Factor theory separates job satisfaction and job dissatisfaction and suggests that
