Question

300 words

What is compensation?

What is the difference between an intrinsic reward and an extrinsic reward?

In your opinion, which is more important to an employee - an intrinsic reward or extrinsic reward? Why?

Answer 1

Compensation is what employees receive in exchange for their contribution to the organization. It includes components like salary ,wages, bonuses etc. Compensation is provided to motivating the employees in their work, and for build their career and to ensure that they are committed to achieve company goals.

Compensation is which something usually like money, which is given to employees of an organization for their loss incurred due to any organizational activities. Compensation is important for a organization to consider the mission of the organization. compensation comes under the parlance of human resources department (HR). The compensation system which company follows should be a attracting one and it should motivate the employees for their work.

Intrinsic reward vs extrinsic reward:-

Intrinsic reward is a award which is in intangible mode. It is sense of achievement or conscious satisfaction for example- it is the knowledge that you did something right or you helped someone or you make others day very special. So intrinsic reward is intangible ,they usually arise within the person who is doing the activity or behavior. So we can define intrinsic reward as behavior or activity which person do.

Extrinsic reward:-

The main difference between two are intrinsic reward is intangible and extrinsic reward is in tangible in nature. It reward which physically given to you for accomplishing something. It is tangible recognition of ones endeavor. It may be a certificate , trophy , medal for winning the race abadge something etc. It is not within the person .It is given to the person who do the particular activity.

In my case both are important to a employee but I give More prefer to intrinsic reward because when we look in the business side intrinsic reward will help to achieve more because .this reward mainly come from the internal parts of a employee...so he more committed to work...