Reward and Recognition Systems

What is the difference between extrinsic and intrinsic rewards?

• Extrinsic rewards include financial benefits, promotions, fringe benefits, and other items visible to the employee. Intrinsic rewards are the feeling of being satisfied about a job well done and the personal enjoyment gained from the workplace.

• Extrinsic rewards are only emotional, while intrinsic rewards are always financial.

• Extrinsic rewards are only given to managers, while intrinsic rewards are for all employees.

• Extrinsic rewards are always negative, while intrinsic rewards are always positive.

Which of the following is NOT a possible criterion for a recognition and reward system?

• Skills and aptitude

• Knowledge

• Age of employee

• Effort exerted

Fill in the blank: Effective recognition and reward systems are ______ tailored to each employee.

• individually

• rarely

• randomly

• generally

Which of the following is an example of an extrinsic reward?

• A) Sense of achievement

• B) Cash bonus or sales bonus

• C) Job autonomy

• D) Saying 'thank you'

Which of the following is an example of an intrinsic reward?

• Fringe benefits

• Leave provisions

• Praise for a job well done

• Gifts, eg. watches, pens

Employee incentive schemes can only be financial.

• True

• False

What is the difference between extrinsic and intrinsic rewards for employees?

• Extrinsic rewards include financial benefits, promotions, fringe benefits, and other items visible to the employee. Intrinsic rewards are the feeling of being satisfied about a job well done and the personal enjoyment gained from the workplace.

• Extrinsic rewards are only about personal satisfaction, while intrinsic rewards are only about salary and promotions.

• Extrinsic rewards are not visible to employees, while intrinsic rewards are always tangible.

• Extrinsic rewards are related to teamwork, while intrinsic rewards are related to individual performance only.

Which of the following is NOT an example of an extrinsic reward?

• Cash bonus

• Sense of achievement

• Pay increase

• Fringe benefits

Which of the following is an example of an intrinsic reward?

• Promotion

• Insurance benefits

• Praise for a job well done

• Leave provisions

List two possible criteria for a recognition and reward system.

• Skills and aptitude, Knowledge (other correct answers: Performance and results, Difficulty of work, Effort exerted)

• Office location and parking space

• Favorite color and pet ownership

• Height and shoe size