odel, which has since long dominated the people management strategies adopted by managers in workplaces to constantly keep their employees motivated in order to derive better performances. However, during the past couple of years organizational management has undergone significant transformation in the manner in which it seeks to motivate its employees. The traditional methods of offering extrinsic rewards or economic benefits to the employees in order to keep them motivated and garner higher productivity and hence revenues, has become obsolete ever since the introduction of the concept of intrinsic motivation, which is required in today’s workplace.
One of the most commonly discussed economic ideologies is the fact that it emphasizes on the aspect of personal economic gain as a key motivating factor within an organizational environment. Various eminent theorists and authors such as Ed Schein, Abe Maslow and the likes have stated that employees have a higher-order personal needs which govern their behavior. There is a wide amount of literature which claims economic rewards as a key motivator however the evidence on higher employee productivity on account of intrinsic rewards has been mounting in the past couple of decades (Thomas, 20022).
Extrinsic benefits or rewards commonly include monetary compensation as a primary tool of enhancing employee performance. However, despite its widespread acceptance, especially among the managers who view it as a most effective means of improving worker productivity, this method has attracted severe criticisms recently. A significant proportion of these criticisms are mainly on account of wide spread research, which offers empirical evidence regarding the failure of extrinsic motivation to ensure and sustain, long term organizational performance (Perry et al. 20093; Ingraham 19934; Kellough and Lu 19935; Milkovich and Wigdor 19916). Furthemore, it has also been observed in past researches that debates concerning employee