Introduction The purpose of the proposed study

Extrinsic rewards are external to the worker and commonly consist of such things as pay, promotion, or fringe benefits. Intrinsic rewards, on the other hand, are experienced internally; examples of intrinsic rewards include feelings of accomplishment, competence, responsibility, or personal growth. As noted by Vecchio (1992), a company can enhance extrinsic or intrinsic rewards.

In the larger companies, reward systems tend to be fairly complex and to incorporate both extrinsic and intrinsic rewards. However, in this regard, Timm and Peterson (1995) report that such reward systems, while often effective in terms of fostering high levels of motivation, can also be relatively costly. Since smaller companies have considerably less revenue to put into their reward systems, this leads to the question how the smaller company (a company of 50 employees or less) might enhance employee motivation in a cost-effective manner?

One answer to the foregoing question may be to increase the effectiveness with which managers/supe

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must be specifically applied such as when the manager states, "Charlie you did a great job handling that unpleasant customer with a complaint this afternoon." Such specificity communicates to the receive that the supervisor or manager has actually observed or heard about the action that is being praised. 2. Praise should be supported with reasoning. For example, Charley should not simply be told that he did a good job but should also be informed as to why the job was good, e.g., "The reason I think it was such a good job is because you acted interested, asked questions, wrote down the facts, asked the customer what she thought we should do to make it right." This type of job analysis, according to Morrison and O'Hearne (1990, permits the employee to internalize the learning experience. 3. Praise is maximal in impact when given for better than expected results, e.g., for coming in over quota, for exceeding the target, or for putting out extra effort. 4. Praise should be delivered without accompanying criticism. According to Morrison and O'Hearne (1990), authentic relationships develop better when people talk "straight." When positive conditional recognition is in order, it should be given and not be mixed with criticis
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Approximate Word count = 2327
Approximate Pages = 9 (250 words per page)

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