INTRINSIC REWARD SYSTEM AND EMPLOYEE PERFORMANCE

Abstract

Reward systems are central to the human resource management because it attracts talented individuals, motivate them and retain those that have a better fit with the organization. Organizations need to review their systems in order to improve employee motivation, increase performance and stay competitive. The objective of this paper is to examine the effect of intrinsic reward on employee performance. It additionally reviewed other research findings in the range of intrinsic reward systems. It employed Victor Vroom’s Expectancy theory to investigate the effects of intrinsic factors on employee’s performance. This paper concludes that intrinsic reward system plays an essential role in motivating workers to perform innovatively and remain committed to the growth of the organization and recommends that organization should implement intrinsic reward package that will continue to enhance the motivational spirit of the employees such that it will make the work environment more challenging and interesting because it leads to better employees’ performance which in turn results in organization performance.