Extrinsic Rewards

Definition
Our textbook, Management, tells us that Extrinsic Rewards are given to people by the boss, the
company, or some other person. Examples include pay, benefits, business class airline travel or a
large office.
Summary
The companies that have adopted the use of evaluation based on R & D performance have a high
likelihood to develop new products and services. The successful introduction of such evaluation
results in the success of the product innovation following the greater superiority in technology.
The second aspect of these factors is that the compensation by the use of monetary value affects
the development of the new products through on the negative. The third finding is that the effects
that result from such factors are varied depending on the sizes of the company. Companies which
are large tend to adversely impact the development of the new products into the market. This
follows their superiority in the technological advancements and monetary compensation.
Discussion
There has been a lengthy study on the relationship that exists between rewards and the level of
motivation of the employees. The classical theory sees into it that the extrinsic rewards have a
way of motivating the individuals who receive such awards. It is very clear from the many
studies which have been conducted that extrinsic rewards might not be necessarily be expected to
be so much effective at the point when the employees are given tasks that require innovation as
well as creativity. By enhancing motivation, it is probable that managers can easily trigger

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change and thereby encourage the development of new products as made possible by the
employees. By availing rewards, much creativity is supported in the organizations, and the
outcomes are also likely to go very high. Both articles agree to the fact that rewards and
motivation are key to achieving the desired results in the organization. For the organizations to
do well and meet their objectives, they need to put proper structures of rewarding and
recognizing the input of every participant in the organization.
Biblical Integration
Motivation is not something that started in the recent times, and it has been there for a very long
time even in the Bible times. The leaders of those times knew the importance of motivation, and
hence they used such methods to encourage confidence and brevity among their subjects. An
excellent example of such leadership is found in the book of Joshua 15:16 “Caleb Said, whoever
attacks Kiriath Sepher and takes it, I’ll give my daughter Ascah to him as his wife.” With that
motivation, a young man went out in the night and attacked this city that seemed to be an
obstacle to the Israelites. Such is a perfect example of what leaders for the various organizations
can do to encourage creativity among their subjects. Indeed rewards have a miraculous outcome.

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References
Kanama, D., & Nishikawa, K. (2017). Does an extrinsic reward for R&D employees enhance
innovation outcomes? evidence from a japanese innovation survey: Extrinsic reward for R&D
employees. R&D Management, 47(2), 198-211. doi:10.1111/radm.12165
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