Solution

Rewards are extrinsic when they are earned from the outcome of a job or performance, for example, salary, promotion and bonuses (Malek et al., 2020). These reward are tangible and contributes to employees by helping them to meet their physiological needs and motivation. When we talk about extrinsic rewards, employees are more concerned with money as a form of motivation for their efforts. They are very important in employee lives and their standards of living. Maslow hierarchy of needs theory suggest that employee need better pay to meet their basic needs such as food, shelter, cloths and water. When employees are promised better salary and bonuses, they would be motivated to achieve organisational goals and objectives (Chantal et al., 2022). This can lead to increased revenue and profitability. However, extrinsic rewards are short-run to organisational performance. A pay cut or taking out bonuses can demotivate employees from performing well.

Intrinsic rewards arise internally and tends to be long-term. They are not associated with monetary value, but what employee feels after getting appreciated for completing a task successfully (Emmanuel and Nwuzor, 2021). They contribute to employees a sense of job satisfaction, motivation, achievement and positive emotions. They also have a positive impact on employee achieving self-actualization. They are essential in ensuring organisational sustainable performance. When employee complete a task successfully and experience a sense of satisfaction, they will continuing working hard to feel same feelings and emotions in the future. As suggested by McGregor Theory Y, employees who are driven by intrinsic motivation enjoy working for their organisation (Senarathne, 2020). This is important in achieving organisation mission and vision.

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