Problem:
The main purpose for organizational leaders to utilize the system of rewards and punishments for their subordinates is to establish a structural system of expectations. The author describes the distinction between intrinsic rewards and extrinsic rewards. An intrinsic reward for an individual really identifies that person's level of self-satisfaction and self-gratification
(Greenwald, 2008). Extrinsic rewards consist of work benefits, bonuses, and pay (Greenwald, 2008). Different rewards fancy different people more than others two (Greenwald, 2008). Of course, extrinsic rewards are far more popular than intrinsic rewards because they are most definitely more readily available as well as more visible (Greenwald, 2008). The discussion then went on to provide explanations of socioeconomic rewards versus instrumental rewards. Whereas socioeconomic rewards is a gratisfaction, instrumental rewards are tangent. There are many incentives out there that senior leaders use to attract talent. Whenever incentives are placed in the organization, there will most likely be some conflict between players. My organization seems to have decent extrinsic benefits, while intrinsically, it is up to the individual (Greenwald, 2008).
Reference:
Greenwald, 2008. Reward and punishment. Organizations: management without control.