Rewards and Incentives: Understanding Non-Monetary Incentives

Rewards and incentives given to employees that are not financial in nature, including intrinsic rewards received from the job itself or from the work environment, are called ________.

a. Non-monetary Incentives
b. Performance Bonuses
c. Compensation Packages
d. Variable Pay

Final answer:

Non-monetary incentives are rewards and incentives that are not financially based and originate from the job or work environment. These incentives are crucial for sustaining intrinsic motivation and can have a more significant impact on job satisfaction compared to financial rewards.

Explanation:

Rewards and incentives given to employees that are not financial in nature, including intrinsic rewards received from the job itself or from the work environment, are referred to as non-monetary incentives.

These can include various forms of recognition and praise, opportunities for personal growth, increased autonomy, and more.

Studies have demonstrated that non-monetary incentives can be potent in enhancing job satisfaction and preserving intrinsic motivation among employees. For instance, a businessman who feels deserving of a raise may find solace in the concept that hard work is its own reward, showcasing the impact of intrinsic rewards.

Consider the example of Odessa, who enjoyed baking in her free time and later pursued a career in a bakery. This scenario illustrates the overjustification effect.

This effect suggests that introducing extrinsic motivation, such as payment for a task one enjoys, can diminish intrinsic enjoyment for that task, making it feel more like work and potentially reducing the time spent on it outside of work.