(Solution) 5HR03 Question 2. AC 1.2: Assess how extrinsic and intrinsic rewards could improve employee contribution and sustained organisational performance at Mercy Frontier
Solution
Extrinsic rewards:
Employee contribution
Extrinsic rewards are those rewards given by the employer like salary, benefits, bonuses and Rewards can incentivize effort to specific measurable tasks and enhance team productivity (Garbers and Konradt, 2024). Competitive salary, healthcare and additional leave will take away financial pressures, and give employees at Mercy Frontier the motivation to apply their skills uniformly across the operations.
Sustained organisational performance
Rewards might sustain performance with regard to attracting less abundant specialists, retaining experienced personnel and establishing that hard work in humanitarian services is paid. But there are indications that incentives are more effective when they stimulate rather than supplant intrinsic motivation (Cerasoli et al., 2014). The parameters of base pay and equity of benefits offered to Mercy Frontier should be established with solid principles, with the emphasis placed on the limited nature of rewards for accomplishments.
Intrinsic rewards: Employee contribution
Intrinsic rewards are related to the nature of the work such as purpose, autonomy, mastery, achievement and meaningful recognition. Self-determination research discovered that encouragement of autonomy, competence and relatedness fosters motivation (Deci et al., 2017). There is a need to embed commitment by employees to human rights values and values in general – involving workers in decision making, allowing development opportunities, and communicating the impact of their work.
Sustained organisational performance
Intrinsic motivation is linked with Employee Outcomes, while controlled extrinsic motivation also results in less robust links (Kuvaas et al., 2017)….
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