For whichever business extrinsic motivation is highly important factor to determine a succesful company. Motivation is the methodology that leads to a win-win situation between the organization and the employees. (Megan,Rowe,2001). Extrinsic motivation is usually offered by supervisor or manager who holds power to provide rewards. Extrinsic motivation is usually monetary or related with money in nature, like a raise in salary, benefit package, or a bonus for reaching some target or bonus for reaching high rank when it comes to employee appraisal. However extrinsic motivation an also be verbal praise, awards, promotion, additional responsibility or clear ogantizational policies.
Extrinsic motivation is external …show more content…
To control extrinsic motivation,HRM practioner can use performance appraisal system. Performance appraisal system is evaluation of past performance, gaps between employees performance and management expectation and solution to fulfill the gaps. The most used tool to measure performance is Key Performance Indicator (KPI). KPI is a quantifiable tool to measures employees performance. KPI is vary to many companies, industry and organization, depending on their performance criteria and targets. HRM practioners should make a well defined and quantifiable KPI and also thoroughly communicated through entire company. HRM practioner should discuss quarterly reviews on employee’s performance based on their KPI rating with management then a full review at the end of the year. The result is employee’s rating performance throughout the year agreed by their supervisor and management. Different rating also comes with different reward and punishment. If the rating result is below average every year, then management should considering dismissal of …show more content…
Work Preference Inventory is the most used tools designed to asses individual difference in intrinsic and extrinsic motivation because not every individual have the same motivation, they have different personal needs and preferences for rewards.
Fey et al. (2009) said that HRM practices are lever through which employee motivation can be increased but they have included only few variables such as training, competence and performance appraisal, merit based promotion, performance based compensation and internal communication) as the indicator of HRM that misses a number of important factos. Vermeeren et.al (2009) revealed that HRM practices influences organizational performance through job satisfaction and motivation positively.
Not every company have big resource to made a huge equity right now, this is where HRM practioners play their roles to make smaller gestures to increase employee’s extrinsic motivation. Below are examples that can be used by HRM practioners to motivate their employees if the company is having difficult time to give big reward to their employees.
1) Gamification.
Gamification is used by company to motivate their employee by creating healthy competive among