Economics and Business Review

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Volume 1 (15) Number 4 pp. 102-125

Orni Gov

Hadassah Academic College, Department of Management of Service Organizations,Jerusalem, Israel

The complex relationship between intrinsic and extrinsic rewards

This study aimed to determine the relationship between the two main components of the organizational rewards system; intrinsic and extrinsic rewards. Pay satisfaction was chosen to represent the extrinsic rewards whilst the Thomas et al. four intrinsic rewards represented the intrinsic rewards. A total of one hundred and fifty six self-administered questionnaires were collected from Israeli employees. Analysis using Pearson correlation indicated that there is no relationship between the two types of rewards. However, a regression analysis demonstrated that employees with temporary status, and outsourcers’ employees, are experiencing less pay satisfaction than organizations’ directly-employed staff. Another regression analysis established that a sense of choice predicted a positive correlation with pay satisfaction whilst a sense of competence predicted a negative correlation. Based on the findings it can be concluded that there is a downside to an organization’s decision to reward  employees by empowering and giving them autonomy. The empowerment process might increase the employees’ sense of competence, which may lead to a decrease in pay satisfaction.
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Keywords: employees’ motivation, extrinsic rewards, intrinsic rewards, organizational rewards, performance, pay satisfaction

DOI: 10.18559/ebr.2015.4.7

For citation:

MLA Gov, Orni. "The complex relationship between intrinsic and extrinsic rewards." Economics and Business Review EBR 15.4 (2015): 102-125. DOI: 10.18559/ebr.2015.4.7
APA O., G. (2015). The complex relationship between intrinsic and extrinsic rewards. Economics and Business Review EBR 15(4), 102-125 DOI: 10.18559/ebr.2015.4.7
ISO 690 GOV, Orni. The complex relationship between intrinsic and extrinsic rewards. Economics and Business Review EBR, 2015, 15.4: 102-125. DOI: 10.18559/ebr.2015.4.7