Rewards characteristics and intrinsic motivation: An exploratory study on homeostatic mechanisms

A limited number of studies have addressed the effects of pay characteristics on both intrinsic and extrinsic types of motivations within an organizational setting. While the relationship have been documented in a number of studies, research has been confined to academic and laboratory settings and a number of key questions remain unanswered, Based on a sample of 400 employees from a large Swiss financial institution, quantitative and qualitative results show that a material rewards have no unilateral effect on intrinsic/extrinsic and total motivation. Instead, homeostatic mechanisms keep the intrinsic/extrinsic and total motivation. Instead, homeostatic mechanisms keep the intrinsic/extrinsic and total motivational level from varying beyond an equilibrium, while the structure of motivations among employees differs significantly depending on pay characteristics. A new conceptualization of motivational phenomena is presented.