Types of Rewards and Consequences (1 min)
Rewards and consequences in the workplace will usually fall into one of two categories which are either extrinsic or intrinsic.
- Extrinsic – Extrinsic rewards are physical rewards that come from an external source such as a bonus, company car or trophy. This category also includes privileges, promotions, holidays and awards given for good performance or taken away in the case of poor performance.
- Intrinsic – Intrinsic rewards are non-physical and are internal to the individual. These include the feeling of satisfaction of doing a job well or any emotional benefits that we might get from our work such as enjoyment, pride or relaxation. Intrinsic rewards or consequences can be brought about by different forms of positive or negative feedback such as public recognition or criticism during a review.