Navarro, Yhara Nicole C.
BSPSY-A-STEM3
HRM ACTIVITY: compensating human resources
1.)Differentiate between Intrinsic and Extrinsic Motivation. Why is it important for
organizations to consider both when designing reward systems?
In Human Resource Management, understanding motivation is essential for designing
effective reward systems. There are two main types: intrinsic and extrinsic motivation.
Intrinsic motivation comes from within the individual. It refers to doing work because it is
personally rewarding, such as enjoying problem-solving or feeling a sense of achievement.
Employees driven by intrinsic motivation often show long-term engagement and creativity.
On the other hand, extrinsic motivation is based on external rewards like salary, bonuses,
or promotions. It is effective in encouraging short-term goals and performance, especially in
structured or repetitive tasks.
Organizations should consider both types when creating reward systems. Relying only on
extrinsic rewards may lead to short-term gains but can reduce internal motivation over time.
Meanwhile, focusing only on intrinsic rewards without fair compensation can lead to
dissatisfaction. A balanced approach—offering fair pay, recognition, growth opportunities, and
meaningful work—encourages both high performance and long-term commitment.
2.)Explain Victor Vroom’s Expectancy Theory. How can a manager use expectancy,
instrumentality, and valence to improve employee motivation?
Victor Vroom’s Expectancy Theory explains that motivation depends on an individual’s
expectations about their effort, performance, and outcomes. It includes three elements:
expectancy, instrumentality, and valence.
Expectancy is the belief that effort will lead to performance. Managers should support this
by offering training and resources. Instrumentality is the belief that performance will be
rewarded. Managers must ensure that high performers are fairly recognized to strengthen this
link. Valence is the value an individual places on the reward. Managers should understand what
each employee values—whether it's bonuses, career growth, or flexibility.
By applying all three elements, managers can boost motivation. If employees believe their
efforts will pay off, that good work leads to rewards, and the rewards are personally meaningful,
they are more likely to stay engaged and perform well.