Research on Humanities and Social Sciences www.iiste.org ISSN (Paper)2224-5766 ISSN (Online)2225-0484 (Online) Vol.6, No.5, 2016 47 Role of Intrinsic Rewards in Employee Perception and Motivation Qamar Farooq 1 Muhammad Nouman Shafique 2* 1.Lecturer, IMIT, Rawalpindi 2.Ph.D Scholar Preston University, Islamabad Introduction Employee Motivation has always been the central point of organizations while formulating and designing reward strategy and programs. Rewards carry planned objectives of employee motivation and performance growth completely and clearly set in the purpose behind what organizations achieve through rewards system. Employees tend to gain motivation for a defined intent while organizations focus performance growth and enhanced efficiency by rewarding employees. This study is revolved on the Motivation that employees perceive from different kinds of rewards given by the organizations to its employees. This is a conceptual paper focusing on the different rewards that may affect the performance of employees. Sample employees here taken are managers working in multinational environment from Banks, Government Organizations and LLC companies from the population on the basis of simple random sampling. Basing on dimensions of rewards (i.e. Salary, Promotion, Empowerment, and Recognition) and perceived performance of employees analysis is to be made. Keywords: Intrinsic Rewards, Extrinsic Rewards, Motivation Problem Statement In recent time, the scheme of salary continues to grow as part of a system of all the combined rewards that employers offer to employees. Salary (also now known as fixed pay) is coming to be seen as part of a "total rewards" system which includes bonuses, incentive pay, commissions, benefits and a range of other tools which help employers to link rewards to an employee's measured performance. However, need is to differentiate between intrinsic and extrinsic rewards and the cost and value associated to these. Research Questions 1. What is the level of impact of different rewards on the perceived Motivation of employees? 2. How intrinsic rewards differ from extrinsic and whether intrinsic rewards more cost effective and work better for employee perceived motivation in multinational environment or extrinsic? Research Objectives 1. To determine if there is a relationship between rewards and the perceived Motivation of employees 2. To describe the difference between two rewards, cost associated with them and the level of impact of intrinsic rewards on the perceived Motivation of employees Significance Importance of rewards system cannot be denied in any field of organizational life. If rewards system has not been designed properly, it can demotivate employees and resultantly may decrease the employees‟ Performance. If rewards system is designed and aligned properly, it motivates employees and resultantly increases employees‟ performance. This study will be helpful to find out about the importance level of different rewards as per the perception of employees. As explained earlier, no study so far has exclusively and exhaustively identified the clear cost and value associated with intrinsic and extrinsic rewards and to conclude about rewards and employee’s perception and motivation, this study is aimed to describe the finding of different studies in elaborating the phenomena of intrinsic and extrinsic rewards and to compare their cost and value towards employee’s perception and motivation. Literature Review and Theoretical Framework There are two broader forms of rewards. Rewards can be either intrinsic or extrinsic (McCormick and Tifflin 1979). Intrinsic rewards stalk from the ways that are inbuilt in the job and which the individual enjoys as an effect of successfully carrying out the task or accomplishing own goals. While extrinsic rewards are those which are external to the task, such as salary, fringe benefits, security, promotion, work condition, contract of service and the work environment. Intrinsic reward are those rewards that can be said as „psychological rewards‟ and examples are empowerment, receiving appreciation, positive recognition, and being treated in a caring way. An individual who is motivated intrinsically will be devoted to his work to the extent to which the job intrinsically contains tasks that are rewarding to him or her. And similarly an individual who is motivated extrinsically will be devoted to the extent that he can gain or receive external rewards for his or her job (Ajila 1997).