Question

Differentiate tangible rewards from intangible rewards and intrinsic benefits from extrinsic benefits. Provide examples of each.

Answer 1

Tangible rewards are financial rewards or non-financial rewards that can easily be assigned a financial value e.g. a gym membership. Tangible rewards differ from intangible rewards, such as public recognition or inclusion on a new training course, which cannot be easily assigned a financial value.Tangible rewards are usually given to derive monetary satisfaction and intangible are given to maintain long term relationships with the other person. Good managers provide a mix of tangible and intangible rewards to employees; research suggests that both are necessary for long-term happiness and productivity in the workplace.

An intrinsic benefit is the benefit that is usually non physical benefit. They cannot be touched or seen but can emotionally connect with the employees. They are usually directly related to the job performance as a successful task automatically produces it. Higher the success rate higher will be the intrinsic benefit. Example can be a word of praise, recognition for certain task or work. However, an extrinsic benefit is something that comes from an external sourse only i,e employers only. They are also related to job performance but it is usually not that they are rewarded every time they finish a task. They are usually fixed in nature, Examples are pay, bonus and commission, fringe benefits etc.