Final answer:
Rewards and incentives that are not financially based and stem from the job or work environment are known as non-monetary incentives. These rewards play a key role in sustaining intrinsic motivation and can be more impactful on job satisfaction compared to financial ones.
Step-by-step explanation:
Rewards and incentives given to employees that are not financial in nature, including intrinsic rewards received from the job itself or from the work environment, are referred to as non-monetary incentives.
These can include various forms of recognition and praise, opportunities for personal growth, increased autonomy, and more.
Studies have shown that non-monetary incentives can be powerful for boosting job satisfaction and maintaining intrinsic motivation among employees. For example, a businessman who feels he deserves a raise might find comfort in the idea that hard work is its own reward, illustrating the impact of intrinsic rewards.
Considering the scenario of a person named Odessa, who enjoyed baking in her free time and later worked in a bakery, we see an illustration of the overjustification effect.
This effect implies that when extrinsic motivation, such as payment for a task we enjoy, is introduced, it can reduce our intrinsic enjoyment for that task, making it feel more like work and potentially decreasing the time we spend on it outside of work.