Teamwork:
Teamwork in a company is vital for the success of a company. Financial incentives like bonuses can inhibit teamwork since under such schemes, individuals may be rewarded rather than teams. For example, several firms give bonus on bases of the amount of work performed by the individual (Roland, 2003). This means that employees would eventually learn to hoard work than to share it for the welfare of the organisation and in this way, the overall productivity of the company may be affected.
Burn-out of employees:
Another disadvantage associated with the financial reward system is that it may lead to physical and moral burnout where the employees may work extra hours to earn the money and may eventually be frustrated by the monotony of the work situation.
The above discussion shows that money and hence intrinsic reward may serve as a motivator to certain extent, but eventually it would lead to a saturation point where the
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These can be achieved by developing a high-engagement culture in an organisation. This can be achieved by setting-up a meaningful purpose of an organisation where the line-managers are involved in the decision making and the contribution of the employees at all levels are equally recognised and rewarded.
A culture of mutual-inclusion with intrinsic motivation can be built by holding trainings on intrinsic motivation and focusing upon the need for employee engagement. It is important to understand that a company fosters the values of intrinsic motivation more, if it understands the fundamentals of it and hence it is necessary to hold trainings on the importance of intrinsic motivation and hence develop an innovative and cohesive culture within an