Final answer:
Praise from peers is an intrinsic reward, which is related to the internal fulfillment from achieving a goal. While extrinsic rewards like money might sometimes undermine intrinsic motivation, praise can enhance it. The balance between intrinsic and extrinsic motivations can be complex and changes with context.
Step-by-step explanation:
Praise received from an employee's peers is best described as an example of an intrinsic reward. This type of reward pertains to the internal satisfaction and fulfillment that one gets from performing a task or achieving a goal. Unlike extrinsic rewards, such as money or physical prizes, intrinsic rewards are intangible and come from within the individual as a response to a job well done.
Various studies have shown that not all rewards affect motivation in the same way. While tangible rewards can sometimes undermine intrinsic motivation, verbal praise and recognition can potentially increase it. For example, if an individual, such as Odessa with her baking, regularly receives compliments and positive feedback, this can boost their intrinsic motivation for the activity.
It is important to note that our motivations are often nuanced and can encompass both intrinsic and extrinsic factors. Situations and contexts can influence the balance between these motivations, and even activities we love to do for intrinsic reasons can feel different when they also bring extrinsic rewards, which might diminish our intrinsic enjoyment over time. In business settings, understanding the nuances of motivation can help in structuring work environments and incentives that align with individual and collective motivations for optimal job satisfaction and productivity.