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Rewards are positive outcomes that are earned as a result of an employee’s performance. These rewards are aligned with organizational goals. When an employee helps an organization in the achievement of one of its goals, a reward often follows. There are two general types of rewards that motivate people: intrinsic and extrinsic. Intrinsic rewards are internal, psychological rewards such as a sense of accomplishment or doing something because it makes one feel good. Extrinsic rewards are rewards that other people give to you such as a money, compliments, bonuses, or trophies. An intrinsic reward is an intangible award of recognition, a sense of achievement, or a conscious satisfaction. For example, it is the knowledge that you did something right, or you helped someone and made their day better. Because intrinsic rewards are intangible, they usually arise from within the person who is doing the activity or behavior. So “intrinsic” in this case means the reward is intrinsic to the person doing the activity or behavior.

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