It is common to note that by congratulating the staff of the organization contributes in increasing the levels of motivation within the business at an extremely fast rate. It has been revealed by James Adonis as to what a significant role is played by the power of praising someone and using intrinsic methods of motivation in the organization (Weightman, 2008). Irrespective of the type of industry involved, engaged and motivated employees are crucial for the success of the business organization. While it is of huge importance that the plan of compensation helps in attracting and retaining the great employees in an effective manner, a number of studies have indicated that recognition is a better and improved tool of retention and a more positive motivator of performance in comparison with that of money.
It has been found in the study conducted by the Gallup Organization that approximately 69 per cent of the employees showed preferences towards appraisal and recognition from the managers even more than money (Guan, 2004). Therefore, the main key for the development and maintenance of an extremely motivated and engaged team is for using the motivators in intrinsic form rather than the motivators in extrinsic form. However, to understand the importance of intrinsic forms of motivator, it is important to consider the concept of extrinsic form of motivators in order to differentiate both of these. The extrinsic form of motivation is referred to as provision of reward such as increase in pay rate, bonus in cash, or even a gift as an incentive (Ashwood, 2008). In simple words, it is referred to as the provision of tangible rewards for the improvement in the performance of the employees. This also helps in enhancing the productivity of the organization.
However, in comparison with the extrinsic form of motivation, intrinsic form of motivation is cheaper and better as it motivates the employees for a longer duration of time due to the fact that it helps in establishing confidence amongst the employees.