Employee and Organisational Performance: Employees Perception of Intrinsic and Extrinsic Rewards System.

Main Article Content

Noko Emmanuel
Nwuzor Joseph


The study aimed to evaluate the perception of employees on both intrinsic and extrinsic reward system and whether reward system impact their performance and the organization performance at large. To achieve the objective, the study employed Structural Equation Modelling (PLS-SEM) approach to test six hypothesis. The study sampled 400 employee of Zenith Bank Plc using questionnaire send to the respondent emails. PLS-SEM result revealed that both extrinsic and intrinsic rewards have positive and significant impact on employee performance, although, extrinsic appear more potent than intrinsic rewards. It was further revealed that three of the four measure of employee performance; quality job, effective service delivery, customer rating has positive significant with organization performance while time management was unable to explain organization performance. We discovered also that gender does not play any significant role on employee performance, but age does. The study therefore concluded that rewards play an important role in both employee performance and organization performance.

Article Details

How to Cite
Emmanuel, N., & Nwuzor, J. (2021). Employee and Organisational Performance: Employees Perception of Intrinsic and Extrinsic Rewards System. Applied Journal of Economics, Management and Social Sciences, 2(1), 26–32. https://doi.org/10.53790/ajmss.v2i1.5


Armstrong, M. (2009). A handbook of human resources management practice, 10th ed edn, London: Kogan Page.

Armstrong, M., Brown, B. and Reilly, T. (2011). Increasing the effectiveness of reward management: An incentive based approach, Human Relations 33(1): 106–20. DOI: https://doi.org/10.1108/01425451111096668

Bratton, J. and Gold, J. (2003). Human Resources Management: Theory and practice, 3rd ed edn, New York: Palgrave- MacMillan.

Cao, X., Khan, A. N., Ali, A. and Khan, N. A. (2019). Consequences of cyberbullying and social overload while using snss: A study of users’ discontinuous usage behavior in snss, Information Systems Frontiers 3(1): 1–14.

Fay, C. H. and Thompson, M. A. (2001). Contextual determinants of reward’s system success: An exploratory study, Human Resources Management 40(3): 213–226. DOI: https://doi.org/10.1002/hrm.1012

Gerald, K. and Dorothy, K. (2004). Rewarding success and failure: Performance incentives use, Personnel Review 26(3): 187–200.

Gerhart, B. and Fang, M. (2004). Creating an effective total reward strategy: Holistic approach better supports business success, Benefits Quarterly 20(3): 7–12.

Gerhart, B. and Fang, M. (2015). Pay, intrinsic motivation, extrinsic motivation, performance, and creativity in the workplace: Revisiting long-held beliefs, Annu. Rev. Organ. Psychol. Organ. Behav 2(1): 489–521. DOI: https://doi.org/10.1146/annurev-orgpsych-032414-111418

Greenspan, A. (2005). The age of turbulence, 2nd ed edn, New York: Penguin.

Guest, D. (2017). Human resource management and employee well-being: Towards a new analytic framework, Human Resource Management Journal 27(1): 22–38. DOI: https://doi.org/10.1111/1748-8583.12139

Hair, J. F., Hult, G. T., Ringle, C. and Sarstedt, M. (2016). A primer on partial least squares structural equation modeling (PLSSEM), Thousand Oaks: Sage Publications. DOI: https://doi.org/10.15358/9783800653614

Hatice, O. (2012). The influence of intrinsic and extrinsic rewards on employee results: An empirical analysis in turkish manufacturing industry, Business and Economic Research Journal 23(3): 29–48.

Khan, F., Yusoff, R. and Khan, A. (2014). Job demands, burnout and resources in teaching a conceptual review, World Applied Sciences Journal 30(1): 20–28.

Kumar, R. (2014). The challenges to the implementation of lean manufacturing., International Journal of Engineering Science, Advanced Technology 4(4): 307–312.

MacKenzie, S. B., Podsakoff, P. M. and Podsakoff, N. P. (2011). Construct measurement and validation procedures in mis and behavioral research: Integrating new and existing techniques, MIS Quarterly 35(2): 293–334. DOI: https://doi.org/10.2307/23044045

Mahaney, R. C. and Lederer, A. C. (2006). The effect of intrinsic and extrinsic rewards for developers on information systems success, Project Management Journal 37(4): 42– 54. DOI: https://doi.org/10.1177/875697280603700405

Malhotra, N., Budhwar, P. and Prowse, P. (2007). Linking rewards to commitment: an empirical investigation of four uk call centers, International Journal of Human Resources management 18(12): 2095–2127 DOI: https://doi.org/10.1080/09585190701695267

Murphy, B. (2015). The impact of rewards system on employee performance., School of Administration and Business Management: Dublin Business School. ployees job satisfaction, Middle-East Journal of Scientific Research 21(9): 1533–1540.

Nnaji-Ihedinmah, N. and Egbunike, F. C. (2015). Effect of rewards on employee performance in organizations: A study of selected commercial banks in awka metropolis, European Journal of Business and Management 7(4): 80–89.

Onashile, A. (2017). Impact of performance appraisal on employee productivity: A case of unilever nigeria plc.

Osabiya, B. J. (2015). The effect of employees’ motivation on organisational performance, Journal of Public Administration and Policy Research 7(4): 62–75. DOI: https://doi.org/10.5897/JPAPR2014.0300

Osibanjo, O. A., Adeniji, A. A., Falola, H. O. and Heirsmac, T. (2014). Compensation packages: A strategic tool for employees’ performance and retention, Leonardo Journal of Sciences 25(1): 65–84.

Puwanenthiren, P. (2011). Reward system and its impact on employee motivation in commercial bank of sri lanka plc, Global Journal of Management and Business Research 11(14): 312–333.

Qureshi, M. I., Iftikhar, M., Abbas, S. G., Hassan, U., Khan, K. and Zaman, K. (2013). Relationship between job stress, workload, environment and employees turnover intentions: What we know, what should we know, World Applied Sciences Journal 23(6): 764–770.

Raya, R. L. (2015). What’s in it for me? using expectancy theory and climate to explain stakeholder participation, its direction and intensity, International Journal of Project Management 33(1): 3–14. DOI: https://doi.org/10.1016/j.ijproman.2014.03.003

Rehman, T., Schmidt, W., Trittel, N. and Muller, A. (2010). Performance related pay in german public services, Employee Relations 33(2): 140–158. DOI: https://doi.org/10.1108/01425451111096686

Ryan, C. and Pointan, R. (2005). Management learning, performance and reward: Theory and practice revisited, Journal of Management Development 33(4): 342–356. DOI: https://doi.org/10.1108/JMD-08-2012-0110

Samnani, A. and Singh, P. (2014). Performance-enhancing compensation practices and employee productivity: The role of workplace bullying, Human Resource Management Review 24(1): 5–16. DOI: https://doi.org/10.1016/j.hrmr.2013.08.013

Thomas, K. (2008). Human Resources Management, 7th ed. edn, Edinburgh: Pearson Education Limited.

Thomas, K. (2009). The four intrinsic rewards that drive employee engagement, Global Journal of Management and Business Research 9(6): 101–109.

Yapa, B. (2002). An examination of the relationship among job satisfaction, rewards, and organizational commitment, Journal of the Management Sciences 1(1): 46–66.