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CHAPTER 8: MOTIVATION AND EMPOWERMENT 227

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television talk show host and is personally worth an estimated $1.5 billion. Yet
Winfrey says she has never been motivated by money or a desire for power and
prestige. Instead, she is driven to high performance by a personal mission to serve
others by uplifting, enlightening, encouraging, and transforming how people see
themselves. 6
Conversely, extrinsic rewards are given by another person, typically a super- Extrinsic rewards
Extrinsic rewards
visor, and include promotions and pay increases. Extrinsic rewards at United rewards given by another
rewards given by another
person, typically a supervisor, ,
person, typically a supervisor
Scrap Metal, for example, include annual bonuses, a 401(k) plan, and an annual
such as pay increases and
such as pay increases and
$2,000 tuition-reimbursement program. Because they originate externally as promotions
7
promotions
a result of pleasing others, extrinsic rewards compel individuals to engage in a
task behavior for an outside source that provides what they need, such as money
to survive in modern society. Think about the difference in motivation for pol-
ishing a car if it belongs to you versus if you work at a car wash. Your good
feelings from making your own car shine would be intrinsic. However, buffi ng
a car that is but one of many in a day’s work requires the extrinsic reward of a
paycheck. 8
Rewards can be given systemwide or on an individual basis. Systemwide Systemwide rewards
Systemwide rewards
rewards that apply the same to
rewards apply the same to all people within an organization or within a specifi c rewards that apply the same to
all people within an organization
all people within an organization
category or department. Individual rewards may differ among people within the or within a specifi c category or
or within a specifi c category or
same organization or department. An extrinsic, systemwide reward could be in- department
department
surance benefi ts or vacation time available to an entire organization or category
Individual rewards
of people, such as those who have been with the organization for six months or Individual rewards
rewards that differ among
rewards that differ among
more. An intrinsic, systemwide reward would be the sense of pride that comes individuals within the same
individuals within the same
organization or department
from within by virtue of contributing to a “winning” organization. An extrin- organization or department
sic, individual reward is a promotion or a bonus check. An intrinsic, individual
reward would be a sense of self-fulfi llment that an individual derives from his
or her work.
Although extrinsic rewards are important, leaders work especially hard to
help followers achieve intrinsic rewards—both individually and systemwide. We
all know that people voluntarily invest significant time and energy in activities

they enjoy, such as hobbies, charitable causes, or community projects. Similarly,
employees who get intrinsic satisfaction from their jobs often put forth increased
effort. In addition, leaders genuinely care about others and want them to feel
good about their work. Leaders create an environment that brings out the best in
people.