Motivation and Compensation

Extrinsic motivators are techniques used by management to stimulate an employee’s efforts toward a particular goal, for example, more profitability or greater customer satisfaction. Traditional management employs several types of extrinsic motivators, depending on the level of an employee in an organization. Management by objectives, enforced through the Performance Appraisal System (PAS), is used to motivate top and middle management. Sales quotas are used to motivate salespeople.