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The Influence of Intrinsic and Extrinsic Rewards on Employee Results: An Empirical Analysis in Turkish Manufacturing Industry

Keywords: Reward systems , intrinsic rewards , extrinsic rewards , TQM , EFQM.

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Abstract:

The study discussed in this article questions whether certain reward practices used by organizations are better than others when comparing the employee results based on TQM. We first examine reward systems and TQM relevant literature. After related literature review, reward practices have been handled in two groups as intrinsic rewards and extrinsic rewards. In the sample, which consists of 217 businesses that operate in Turkish manufacturing industry and apply TQM, intrinsic and extrinsic reward practices of firms on people results have been analyzed. The results of this survey are analyzed through descriptive analysis, ANOVA and MANOVA analyses. As the main finding of the research, it has been determined that application level of intrinsic and extrinsic rewards in Turkish manufacturing industry is not high. It has been identified that intrinsic rewards have a significant influence on employee results; however extrinsic rewards do not have a significant influence on employee results in Turkish manufacturing industry. This study highlighted the importance of the intrinsic reward system for implementing TQM.

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