The effect on motivation of a change in rewards

Abstract

This paper reports on the impact of the introduction of a bonus scheme - to some employees - on a Not-For-Profit (NFP) organisation providing services for people with disabilities. This situation raises the question of how an extrinsic reward impacts staff of NFP organisations, and, particularly, how it changes organizational culture. Data was gathered through semi-structured interviews with employees of the organisation about intrinsic and extrinsic rewards. Responses of staff are reported in this study. The important findings of the study are that intrinsic rewards play a significant role in the motivation of staff in NFP organisations; that a bonus scheme does not cause tension between its recipients and non recipients; and that the culture of the organisation is not affected, particularly with respect to camaraderie between staff, the relationship of trust between management and staff, and the maintenance of an attitude of service to clients.

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