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This week we are examining the relationship between motivation theory and pay structure within organizations . Employees are motivated in various ways to perform at

This week we are examining the relationship between motivation theory and pay structure within organizations. Employees are motivated in various ways to perform at work. All employees seek a certain blend of intrinsic rewards--internal motivators derived from the completion of work--and extrinsic rewards--external motivators "gifted" by employers for the completion of work. Pay structures in organizations mainly focus on the construction of extrinsic rewards to satisfy the base needs of employees, while a total rewards system offers extra opportunities for employees seeking to satisfy their intrinsic needs.

Below is a list of rewards that comprise a total rewards system in an organization:

Reward Examples
Compensation Wages, commissions, bonuses, retirement plan
Benefits Health, medical, dental, insurances; vacation time

Social Interaction & Fun

Friendly, engaging, and fun workplace
Job Security Stable, consistent position and rewards
Status & Recognition Respect, prominence within organization
Control & Autonomy Ability to influence others; support creative thinking
Career Advancement Chance to grow and develop skills and abilities
Work Flexibility Support of work/life balance; alternate work schedule

Which of these factors are the most important to you? Pick three rewards and explain your answer. Are the rewards derived from intrinsic or extrinsic motivators? Are there any other rewards that you consider crucial but not listed here? Do you think rewards change for employees over time? If so, what might trigger these changes in motivation?

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