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Intrinsic and Extrinsic Motivation in Different Sectors

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Motivation has depicted a huge administrative issue for a considerable length of time, worker commitment has generally as of late been distinguished as a point of developing prevalence in the realm of business and the board examine. This audit would interface with ideas of worker inspiration and commitment in various divisions. Survey was created for more profound comprehension of how supervisors in the associations see the impact of outward and characteristic inspiration at the work environment.

  • Concept of Motivation

Motivation refers to the reasons underlying behaviour. Motivation is the energy that moves employees forward towards performing a certain action; motivation will strengthen the willingness of employees to work , and in turn it will increase the organizations effectiveness and competence. Employees that are motivated are more ambitious, innovative, creative, and are more persistent to achieve desired goals, which in turn implies that a motivated workforce will work more efficiently.

Authentically motivated employees show higher interest, excitement and confidence for their work and their organization. This typically results in higher performance, persistence and creativity and compared to employees with same level of perceived competence.(Ryan&Deci,2000)

Over the last decades, different models of theoretical theories were developed and are still discussed. As a matter of fact, none of them made it to become a universal theory applicable to all human beings and especially to all kind of employees. Individuals are too complex in their behaviour and in their attitudes, for one single theory to be able to explain these behaviours.

Despite the existing complexity of the human beings and their attitudes, four different approaches characterize the general framework of the theoretical motivational theories. These are the Maslow’s Need Hierarchy Theory, Equity Theory, Expectancy Theory, Vroom’s Original Theory, Two – Factor theory, Self – Determination Theory.

General motivational theory

  • Maslow’s Need Hierarchy Theory:

Over the last decades, Maslow’s need Hierarchy Theory was the most influent and as of today still the most cited theoretical motivational theory. Maslow achieved fame with his theoretical model of the Pyramid of Needs. The categories are the physiological needs(ex. Food, drinking, basic needs for the self-regulation of the human body), the needs of security(ex. Basic protection from the environment, stability and explainability of everyday life), social needs(ex. Friends, family, partner, having an integral role in a social group), needs of self-esteem or individual needs(e.g. prestige, reputation, success in every sense)and finally the stage of self-actualization(the absolute maximum of what a specific individual can reach in his life) ( Viorel, Aurel, Virgil & Stefania, 2009).

Maslow describes the pyramid as a linear process. According to his theory, an individual will not strive for the next stage, as long as the previous stage is not satisfied. Different levels describes the different human needs which is to be fulfilled.

  • Adam’s Equity Theory [ Process Theory]

Describes that employees (as a specific form as the general human beings) compare the ratio between their input (their work effort) and the output they receive from their employer. At the same time, theory states that while looking at their own ratio, employees do compare their ratio to the ratio of other employees. Balance between inputs and outputs in fair way.

  • Vroom’s Expectancy Theory:

‘Anticipation hypothesis holds that individuals are persuaded to carry on in manners that produce wanted blends of expected outcomes'(kreitner &Kinicki, 1989)

Valence is characterized as the abstract enthusiastic worth an individual dispenses to a specific result. As indicated by his definition a result is emphatically valent if the individual would like to have a particular result or not. ( Ramlall,2004).

Effort , performance and desired outcomes are linked to person’s motivation. Therefore, the conclusions is, the higher the expectancy of a positively valent outcome is, the higher the motivation of an individual to perform in an appropriate way in order to achieve the desired outcome.

  • Herzberg’s Two Factor Theory:

In Herzberg theory, hygiene factors are extrinsic motivators which are not directly connected to the content of the job itself. When all possible hygiene factors are satisfied, the employee will feel treated appropriate. On the other side, Herzberg theory describes intrinsic stimuli which are called Motivators. If these factors are positively satisfied, the employee will experience a high level of intrinsic motivation. (Ramlall,2004)

Intrinsic and extrinsic motivation in different sectors

One of the basic distinction that can be made between extrinsic and intrinsic motivation is that while extrinsic motivation is driven by forces that are external to an individual, intrinsic motivation is driven by forces that are internal and within that individual. Intrinsic and extrinsic motivation influence employee intentions regarding activities and behaviours.

In our review we are exploring how managers within the different sectors perceive the influence of intrinsic and extrinsic motivational factors on employee engagement.

Motivational factors

Intrinsic factors

Relationship with co workers

  • Relationship with managers
  • Employee well-being EXTRINSIC FACTORS
  • Organizational Policies
  • Training and career development
  • Compensation
  • Work environment
  • Managers, Motivation and Employee at Work:

There are certain aspects that managers must take into consideration when motivating their employees. Managers of all organizations should also be careful in assigning the cause of low performance to low employee motivation, and the cause of high performance to high employee motivation.

One key challenge that managers are facing is how to encourage employees to contribute inputs to their job and the organization. It is important for managers to treat all employees equally and with courtesy, politeness, respect and dignity in order to promote interpersonal justice as defined in organizational justice.

  • Motivation and Employees at workplace:

This review shows that both extrinsic and intrinsic motivational factors had an impact on employee’s work. Intrinsic and extrinsic motivation, we can distinguish the nature of our chosen motivational factors with the motive of investigating how the influence of these intrinsic and extrinsic motivational factors on employee’s performance is perceived by the managers.

Outcomes from reviewed journals

It has suggested that privately employed individuals are motivated by advancement opportunities, autonomy, high monetary rewards, and status, and are less concerned with importance and contribution with their work. For public employees on the other hand, research has suggested that motivation is mainly found in job stability, job security, teamwork, and their contribution to society. Monetary rewards were of higher importance in the motivation of public sector employees, it was also found that employees equally valued the desire for teamwork, contribution to society and advancement opportunities.

These intrinsic and extrinsic motivations provide a stimulus that can include autonomy, feelings of accomplishment, job security, benefits, and vacation time. It also states that those within lower level positions of an organizations are more prone to extrinsic motivation factors, than higher level positions. Lower level positions tend to have lower wages than higher level positions, which explains the need for extrinsic motivational factors that have some form of monetary component. While researched has shown that different types of employee do tend to prefer different types of intrinsic and extrinsic motivational factors.

The lack of direction in determining whether or not intrinsic or extrinsic motivation in some organizations is what drives employees performance is major concern. Failure to fully understand, this can result in unmotivated employees. This can lead to the failure of an organizations. It needs to be determined whether or not there is significant difference between the two types of motivation. It is still unsure on what specific level each intrinsic and adventitious psychological feature factors have among the organizations. However is has been shown that there’s if truth be told a motivational component.

  • Search strategy

The complete search was conducted by me. Based on the progress and current development state of the internet. I decided to conduct the complete research online. A significant portion of all the relevant books from the past are available online. Because so much of the research on motivational theories was conducted within the last few decades, it is common to find books online. The search of articles, peer- reviewed was made from the EBSCO service databases and Google Scholar. The research timeframe criteria was made fixed as in exploring the journal articles from last 7 years data. In addition all used searched also through Google Scholar. The following EBSCO Service databases were used:

  1. Library Catalogue
  2. Business Source Complete
  3. Psychology Articles


Extrinsic motivation is commonly used to entice employees. Organization will manage the utilization of accidental motivation by deciding the simplest methodology of inculcation them. Employers needs to make sure that it is known to employees what factors needs to be met in order to obtain these extrinsic motivations. This will help in aiding the proper utilization of an employee’s skill within the workplace.

Intrinsic motivational factors, motivation that is internal to the employee, generally have a larger influence on the psychological aspects of employees. Employees must feel psychologically safe and comfortable at work in order to be able to openly communicate with their co-workers and superiors.

Finally the differences in motivation in different sectors employees , we can conclude that these difference are not reflected in the perceptions of managers. As groups of mangers, the perceptions of managers in different sectors were very similar. Certain smaller differences exist between individual managers, perhaps attributable to personality, experience , or leadership style, rather than the sector in which they work. 

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