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Extrinsic And Intrinsic Motivation- A HRD Tool For Promoting
Desired Organisational Performance – A Case Study Of ONGC
J. P. Kukreja*, R. P. Uniyal
Institute of Reservoir Studies, ONGC, Ahmedabad-380005, India
Email: kukreja_jp@ongc.co.in **KDMIPE, ONGC, Dehradun-248195, India

ABSTRACT
Productivity of the organisation depends upon its manpower. With the same inputs, people can deliver
more if they put extra efforts thus increasing the productivity of the organisation. Similarly with the
marginal increase in the input, people can deliver better in higher proportions. This requires an
understanding of what motivates people to work more or better. A behavioural scientist Herzberg
differentiated the intrinsic & extrinsic motivation. Research has shown that adequate earnings, perks,
good working conditions, job security & the quality of supervision all contribute to the job satisfaction of
the employees. Factors such as respect & recognition, status, opportunity for advancement, nature of
work, responsibility, independence & challenge of the task have been found to play an important role
in creating motivation to work on part of the employees. The first set of factors that prevent job
dissatisfaction have been called ‘Hygiene’ or ‘Extrinsic motivation factors’. The second set of factors is
called ‘Motivators’ or ‘Intrinsic motivation factors’. Both sets need to be considered in order to improve
employee productivity. ‘Hygiene’ factors are essential for people to work but ‘Motivators’ play an
important role in helping people to work more & better.
The study presents the analysis of the primary data collected through the survey of standard
questionnaire. The instrument measures the intrinsic and extrinsic motivation. It contains fourteen
items, seven related to intrinsic and seven to extrinsic motivation. Rank order technique was used for
analysis of the responses. Multistage stratified proportionate sampling of 106 employees of ONGC
Dehradun centre was used in order to have appropriate representation from different hierarchical
levels.
The study revealed that intrinsic motivation would be more effective in bringing the desired results in
comparison to extrinsic motivation for ONGC employees in general. Based on the responses, the
ranking of different items starting from most important to least important are as follows: Job security,
adequate salary, respect and recognition, opportunities for promotion, interesting work, responsibility
and independence, sound company policies and practices, doing something worthwhile, comfortable
working conditions, fringe benefits, pay according to ability and competence, technically competent
supervisor, considerate and sympathetic supervisor, restricted hours of work.
The paper presents an in depth analysis of the existing intrinsic & extrinsic motivation profile of the
employees and suitable motivational strategy have been suggested in order to increase the
productivity of the individual as well as organisation as whole.

INTRODUCTION
Maslow’s famous theory of hierarchy of needs drew attention to different types of motivation. This
theory distinguishes between self-actualisation, which is the need characterized by development and
growth of the individual, and the needs, which make up for some deficiency. This distinction was
sharpened by Herzberg, whose theory of work motivation is most widely known and applied. His
theory is also known as two- factor theory of motivation, as he discusses two main classes of the
deficit and developments needs. The analysis of collected data about people’s satisfaction and
dissatisfaction led him to two sets of factors: one set of needs that caused dissatisfaction if they were
not met; and other set, which provided positive satisfaction to people. He classified the various needs
into, what he called, the hygiene or maintenance factors (those which may prevent dissatisfaction) and
the motivators (factors may provide satisfaction). According to Herzberg, the former needs are
contextual (external or extrinsic) and the latter relate to the content of the job (internal or intrinsic). As
per Herzberg’s Two –factor Model of work motivation, hygiene factor includes
salary, working
conditions, company policy, supervision, work group while motivators comprises of advancement,
development, responsibility, recognition, work itself. Both sets need to be considered in order to
improve employee productivity, however managers should approach the two needs differently. Beyond
a reasonable level, further, increase in hygiene factors do not necessarily motivate. Having satisfied
the lower needs, the managers should build motivation through building higher level needs into the job
like giving people challenging jobs that appeal to their self actualization and esteem needs. Also
preventing dissatisfaction is not the same as including satisfaction, which can be brought about only
through motivation. Without motivation, creative work can not be done.

median. 11 and 13).75 3 Fringe benefits 9.60 5.10 6.20 6.16 5. E1.70 7.57 2 Adequate salary 4.80 8.32 9.70 10.36 8 Respect and recognition 5. 9. mode.39 8. Dehradun. adequate earning. coefficient of variation.40) by E4 level officers. or what Herzberg called motivators and hygiene. and restricted hours of work. The instrument contains fourteen items.10 9 Responsibility and independence 6.RESEARCH METHODOLOGY Research design: It was decided to use a) rank order method in administered instrument b) various statistical measures like mean.10 7.61 8. standard deviation.30 6.50 7.75 4.00 10.82 8.70 7. Seven intrinsic motivational factors are: advancement.00 5. The instrument and its administration: What do we look for in a job? measure intrinsic and extrinsic motivation.75 6. seven related to intrinsic and seven to extrinsic motivation.50 8. Institute of Drilling Technology.50 3. achievement.24 5 Comfortable working conditions 9.62 6.75 8.60) by E5 .40 5.50 10. while E1 level officers give least importance (score 4. 2. We can easily infer that E1 level officers have shown greater readiness to face the present liberalized.90 3.75 3.12 7.60 6.32 3.52 11.12 6 Interesting work 7.11 11 Considerate and sympathetic supervisor 9. a considerate and sympathetic supervisor.40 10.60 9.00 6. Respondents were asked to rank-order the fourteen items depending on their importance to them: from 1 (highest) to 14 (lowest rank). while it gets maximum importance (score 4.57 3.00 9. The respondents were the executives of Keshava Deva Malaviya Institute of Petroleum Exploration (KDMIPE). The lower the score.79 10 Doing something worthwhile 7. respect and recognition.96 8. Udai Pareek.33 5.40 10.35 5. sound company policies and practices. 12 and 14) and for extrinsic motivation (item numbers 1.50 6.60 10.25 8.00 4. The ranks given are added for intrinsic motivation (item numbers 4. but only 106.33 8.90 5. E4 and E5 were found to number 8.25 8.25 8. the higher is the value given to the concerned motivational factor. 10.90 8.78 7. a technically competent supervisor and equitable pay. which requires employability rather than employment security. The hierarchical level-wise responses of E0. 28.00 11. Frontier Basin. E3.62 6. 7. correlation factor and its statistical significance using ‘Student’s t’ value for testing of hypothesis comprising relationships between intrinsic and extrinsic motivation with hierarchical levels.32) to job security.00 5. Exploration and Development Directorate. was administered.54 E3 level officers give highest importance (score 3.50 8.60 6.83 8. 6.50) to it among all hierarchical levels. ONGC Academy.39 6. duly completed were received back.00 6.14 11.48 7 Sound company policies and practices 7.16 7. Geodata Processing and Interpretation Centre (GEOPIC).80 7. Reliability and validity of the instrument: The standard instrument compiled by Mr.60 10.50 10.20 6. RESULTS AND DISCUSSION The item wise analysis has been carried out across different hierarchical levels & it is given in table -1. The adequate salary draws the least importance (score 6. 12. 8.16 8. comfortable working conditions. 3.85 8.25 8. The seven extrinsic motivational factors are: security.40 8. The reliability and validity of the instrument is proven.30 10. Sampling method and sample size: Keeping in view the monetary requirements.80 8. This instrument is used to help respondents become aware of their motivational profile.50 6.25 4 Opportunities for promotion 5.59 7.30 6.50 4.57 8. skewness.00 6. time constraints and accuracy of sampling.25 8.65 13 Restricted hours of work 11. responsibility and independence.46 6. More than 150 questionnaires were given for administration to the respondents. Table-1: Average response of various hierarchical level respondents for different items Hierarchical level (Nos of respondents) All Item E5 E4 E3 E2 E1 E0 (106) Item no (10) (42) (28) (12) (6) (8) Average score 1 Job security 3.87 14 Pay according to ability and competence 5. 5. Further it was decided to go for multistage stratified proportionate sampling in order to have appropriate representation from different hierarchical levels. Tel Bhavan.05 12 Technically competent supervisor 9.69 6. E2. globalise and competitive environment. the Dehradun work centre is considered as a cluster or a mini population of ONGC.50 10.70 3. 6. fringe benefits.75 7. interesting work. 42 & 10 respectively.00 10.00 8.

62) by E0 level.62) by E0 level officers and lowest (score 9.8) for the intrinsic motivation is for E0 level officers.5) for technically competent supervisor is for E5 level. Thus any efforts in raising the intrinsic motivation in E5 level officer will bring desired results.33) importance to company policies and practices in comparison to other levels. Thus E5 level officer gives higher importance to pay according to ability and competence in comparison to other levels.16 and 8. The maximum score (54. while it is reverse in the case of extrinsic motivation.996 22.25) E0 level.10) by E1 level.8 54.6 49. Thus higher-level officers are motivated by intrinsic factor. It is obvious that lower level employees seek more technical guidance from their superiors. It indicates that respect and recognition is the highest motivating factor for E1 level. It may be. To test that the relation between the two variables. Correlation coefficient (r) and Student's t value for intrinsic and extrinsic motivation Hierarchical level (Nos of Correlation respondents) t table value coefficient (degree of E5 E4 E3 E2 E1 E0 All Sl between freedom=4) Item Student's (10) (42) (28) (12) (6) (8) (106) intrinsic & no at t value extrinsic significance motivation Average score (r) 1 Intrinsic motivation 46. It indicates that lower level officers give highest importance to technically competent supervisor in comparison to higher levels.25) by E2 level and lowest (9. probably by virtue of this quality. probably. while E1 level (entry level) officers are more ambitious and they give highest importance to opportunities for promotion and self growth.level officers. It may be probably due to reason that E2 level officers are overloaded with work or they may have to perform shift and field duty frequently.996.8) for E5 level.5) for E1 level.6) by E2 level and lowest (10.4 respectively. The E1 level officers are among the young work.6) for E5 level officers as indicated in table-2. The score for pay according to ability and competence is maximum (10. while it is minimum (score 8.66 and 53.0) by E5 level.33) to the opportunities for promotions.7 54. The item-comfortable working conditions has been rated highest (score 6.0) by E2 level and lowest (score 11.5 53.5) for E0 level officers. Doing something worthwhile is rated highest (score 6. . which indicates that there is direct inverse relation between them.0) by E1 level. E1 level officers give highest importance (score 5. Restricted hours of work is rated highest (score 10. the following null and alternate hypothesis has been formulated for testing.0) by E2 and E0 level officers. Table-2: Average response of various hierarchical level respondents. The maximum score (9.6 52. The maximum score (57. The fringe benefits is rated highest (score 6.40 -0.604 The correlation coefficient between intrinsic motivation and extrinsic motivation has been found to be (–) 0. probably due to the reason that lower level officers (E0) may have to perform the routine and repetitive work.7 51 54 50.2) by E5 level. while lower levels are motivated by extrinsic factor. Considerate and sympathetic supervisor is rated highest (score 8. It is evident from the data in the table-2 as well.13 2.7) for the extrinsic motivation is for E5 level officers.60) by E1 level and lowest by (score 9.3 48. The weighted average score of the intrinsic and extrinsic motivation are 50. which reveals that the ONGC officers give higher importance to intrinsic motivation relative to extrinsic motivation in general. while it is minimum (46. H0: “The correlation between intrinsic motivation and extrinsic motivation is not significantly different from zero” The alternate hypothesis H1: “The correlation between intrinsic motivation and extrinsic motivation is significantly different from zero” or alternatively there is statistically significant association between the intrinsic motivation and extrinsic motivation. Interesting work has been rated highest (score 4. that there is decrease in the score of intrinsic motivation with increase in hierarchical level from E0 to E5 with some deviation at E1 level.force of the organization and they want to devote enough time with their family. This may be probably due to small difference in the salary of E4 and E5 level officers. Respect and recognition has been rated highest (score 3.0) by E1 level and lowest (score 11.7) by E5 level. Responsibilities and independence draws minimum importance (score 7. ClassIII level and they have completed the major part of their service and give least importance to the promotion.8 50. while it draws least importance (score 8. is statistically significant or not.8) by E1 level and lowest (score 7. E1 level officers give highest (score 4.75) by E2 level and maximum importance (score 6. they have risen to corporate level.66 5% 1% 2 Extrinsic motivation 57.3 54. It may be due to the fact that E0 level officers have risen from the lower levels viz. mobility due to promotion hinders their future personal plans or they may not be ready to take higher responsibilities.16) for E1 level. as most of them have been given the higher responsibilities and challenging assignments. while it is minimum (48.8 49.776 4. thus they give higher importance to the interesting work.5) for E1 level while it is minimum (5. It indicates that it is highest motivating factor for E2 level.

43 0.11 8.88 67.11 3.5 9.776) for 4 degree of freedom and at 0.50 7.39 41.55 The mean.42 V 6 9 Responsibility and independence 6.04 X 11 14 Pay according to ability & competence 8.0 1 3.31 92.57 -0.46 0.26 6.04 XI 12 12 Technically competent supervisor 8.0 13 4.07 8. median and mode.46 55. ‘Student’s t’ value has been calculated and shown in table-2.11 10.13) is much higher than ‘t’ table value (2.65 9.50 6.28 32.06 -1.0 10 3.81 -0. the calculated ‘Student’s t’ value (22.38 XII 13 11 Considerate & sympathetic supervisor 10.75 5.0 7 3.36 6. Thus the null hypothesis H0 is rejected or the alternate hypothesis H1: “The correlation between intrinsic motivation and extrinsic motivation is significantly different from zero” is accepted.38 41.65 IV 5 6 Interesting work 6.58 2. Table –3: Rank-wise break-up of respondents for each item Rank (1-14) Item no 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Item Job security Adequate salary Fringe benefits Opportunities for promotion Comfortable working conditions Interesting work Sound company policies and practices Respect and recognition Responsibility and independence Doing something worthwhile Considerate & sympathetic supervisor Technically competent supervisor Restricted hours of work Pay according to ability & competence 1 2 43 11 0 4 4 8 7 10 4 7 0 3 0 5 15 22 4 9 4 10 7 5 11 5 3 1 4 6 3 4 5 6 7 8 9 10 11 Numbers of respondents 11 5 7 6 4 3 5 2 0 8 9 5 10 7 7 4 7 3 6 9 8 9 7 10 14 4 14 12 19 9 13 5 4 7 6 9 3 5 9 8 11 9 11 18 6 9 8 12 8 10 6 9 7 8 3 6 16 6 6 13 8 9 10 16 9 13 10 10 6 7 5 1 10 11 5 10 10 10 9 8 4 5 4 4 5 17 8 11 8 6 2 7 2 3 5 9 5 7 18 8 7 4 7 6 10 10 14 9 4 3 3 5 5 2 2 4 14 9 4 9 6 3 9 4 7 5 12 13 14 Mean 2 7 7 4 5 6 7 7 5 11 16 12 7 9 1 2 9 2 8 5 4 5 6 8 19 7 13 17 2 4 5 3 5 0 4 2 3 7 10 8 40 13 3.0 5 3.07 11.0 13 3.88 12.57 -0.77 46. investigated under the present study.65 10.56 54.13 8.devia ness varia mode tion tion 1 1 Job security 3.0 5 3.25 8. standard deviation.79 8.48 0.78 I 2 2 Adequate salary 5.) 8.60 53.5 4 3.88 8.77 0.49 0.11 5.0 3 3. The rank-wise break-up of respondents for each item is shown in table-3. The dispersion was determined by computing the most widely used statistical measure standard .78 VI 7 7 Sound company policies & practices 7.97 II 3 8 Respect and recognition 6.47 -0. Table-4: Comprehensive table indicating various statistical parameter for each item Coeffi Mode Stand cient Skew Sl Item / ard Item Mean Median Rank of no no bi.18 0.For testing of the above hypothesis.02 0. coefficient of variation and skewness have been calculated separately for all the 14 items.79 7.05 significance level.36 0. These are shown in table –4.0 2 3.36 8. mode. Thus it can be inferred that there is statistically significant association between the intrinsic motivation and extrinsic motivation for the respondents of various hierarchical levels.26 8.11 6.58 5.5 14 3.25 5.62 49.0 4 3.75 8.55 9.65 VII 8.5 10 3.30 VIII 8 10 Doing something worthwhile 9 5 Comfortable working conditions 8. The central tendency was determined by computing mean.83 XIV ----' The various statistical measures were computed to understand the central as well as dispersal tendencies in the data.75 34.13 6.28 50.57 58. median.53 40.55 IX 10 3 Fringe benefits (perks etc.87 III 4 4 Opportunities for promotion 6.90 XIII 14 13 Restricted hours of work 10.

varies from 3.57) and maximum (92. responsibility and independence. which shows that maximum number of respondents (14) rank this item at number nine and the equal number of respondents (14) rank it at number eleven. varies from 1 to 14 for different items. and considerate and sympathetic supervisor while E0 level officers give highest ranking to interesting work in comparison to other hierarchical levels. investigated under present study. intrinsic motivation will be more effective in bringing the desired results for E5 level officers. Thus it is proved that there is statistically significant association between the intrinsic motivation and extrinsic motivation for the respondents of different hierarchical levels.7) will be more effective in bringing the desired results in comparison to extrinsic motivation (average weighted score 53. interesting work. opportunities for promotion. sound company policies and practices.28 to 4. which is most widely used and important measure of variation. The skewness. The highest score (14) of mode for restricted hours of work.97 for the fourteen items under consideration. Thus. median and mode.88. Thus. The null hypothesis comprising relation between intrinsic motivation and extrinsic motivation has been tested and found rejected.the coefficient of variation is minimum (32. respect and recognition. The maximum value of standard deviation of 4. varies from (–) 1. restricted hours of work. ONGC employees rank the adequate salary at rank-two.5) is for restricted hours of work.a measure of symmetry. varies from 2 to 12. thus ONGC management should offer adequate salary to its employees for attracting and retaining the technically and professionally . technically competent supervisor & restricted hours of work in comparison to other hierarchical levels. As mentioned earlier. indicates that maximum number (40) of respondents rate it at rank-fourteen. It has been determined that that there is direct inverse relation between the intrinsic motivation and extrinsic motivation. comfortable working conditions. respect and recognition. A relative measure of variation. E1 level officers give highest ranking to opportunities for promotion. and job security respectively. The coefficient of variation is determined for relative measure of variation and consistency. The lowest value (2) of median for job security indicates that 50% of the respondents rank this item above two and the rest 50% of the respondents rank this item below two. by the respondents. doing something worthwhile. E2 level officers give highest ranking to fringe benefits. The mode-which occurs most often or with greatest frequency. considerate and sympathetic supervisor. lowest score indicate highest importance and highest score indicate least importance. considerate and sympathetic supervisor. responsibility and independence. These values of mode further corroborate the determined values of mean. The distribution curve for fringe benefits is bimodal with two equal modes. E5 level officers have given highest ranking to intrinsic motivation in comparison to other levels. The highest score of the median value (12.median.04 to 0. sound company policies and practices. The mean values for fourteen items vary from 3. adequate salary. The lowest score (1) of mode found for job security. sound company policies and practices. fringe benefits. median for these items. the ranking of different items starting from most important to least important are as follows: Job security.28 for the fourteen items. while restricted hours of work has maximum score for all these three statistical parameter. comfortable working conditions. E0 and below level officials give highest importance to extrinsic motivation in comparison to other levels. The distribution curve is negatively or left skewed for comfortable working conditions.28 for pay according to ability and competence indicates that there is largest variability in ranking of this among all items. Based on the score for mean. CONCLUSIONS AND RECOMMENDATIONS E3 level officers give maximum importance to job security while E5 level officers give maximum importance to adequate salary. technically competent supervisor. respect and recognition. The intrinsic motivation (average weighted score.58 to 10. which divides the distribution into two equal parts. The standard deviation. The minimum value of standard deviation of 3. responsibility and independence. ONGC employees enjoy the job security (item rank-one) so this item does not need any further attention. pay according to ability and competence. while it is positively or right skewed for job security. pay according to ability and competence in comparisons to any other hierarchical level.5 for these fourteen items. technically competent supervisor. These values of median corroborate the values of mean determined for these items. 50. The Karl Pearson co-efficient of skewness is calculated to determine the symmetry of the data. doing something worthwhile.deviation. adequate salary. interesting work.46) for considerate and sympathetic supervisor.4) for ONGC employees in general. indicates that maximum number (43) of respondents rate it at rank-one. opportunities for promotion. restricted hours of work. pay according to ability and competence. the job security has the minimum score for mean.28 for considerate and sympathetic supervisor indicates that there is least variability in ranking of this item among all by the respondents. A second measure of central tendency. doing something worthwhile.

Publishing Company Limited. Caring and father figure supervisor enjoys the loyalty of his subordinates. 2. R. creed. ONGC management should make efforts for job enrichment. fourteen. Thus. Responsibility and independence has been ranked at number six. Pay according to ability and competence has been ranked at number eleven. 1997: Training Instrument For Human Resource Development. one-stop accountability and commensurate authority. . 1985:Effect of extrinsic rewards on performance: an intrinsic motivational analysis. The salary should be adequate and comparable with other national and multinational oil companies of India. Restricted hours of work gets least ranking i. so that he feels himself as an important member of the team. job rotation for making the work interesting (item rank-five). ONGC offers good fringe benefits and perks. Virtual Corporate has been conceptualised so that each Asset/ Basin/Institute/Plant is a self-contained enterprise.Head IRS. Technically competent supervisor has been ranked at number twelve. The ONGC management should make efforts to make the working conditions comfortable and safe in the all its work areas. ONGC management should make more effective reward system. The authors are also grateful to the management of ONGC for granting permission to present and publish this paper. Ahmedabad for their motivation and guidance. It will be good motivation tool for ONGC employees. This is in practice in some of the private company but its administration in the large public sector undertaking for the individual employee is little difficult. 1999: A study of motivation profile of managers of Indian railways. The opportunities for promotion has been ranked at number four by ONGC employees. Considerate and sympathetic supervisor gets ranking at number thirteen. job enlargement. R. Marathe General Manager. There is empowerment down the line. Abivaykti. Fringe benefits have been ranked at number ten. Every employee should be made aware about the significance of his job and its use in the overall objective of the company.e. it will not be motivating factor for the ONGC employees. Sound company policies have been ranked at number seven. Tata McGraw Hill. race or gender.competent. Doing something worthwhile has been ranked at number eight. Meshram et al. and trained manpower. April-June 1999 Tripathi K. The top/outstanding performer should be suitably awarded. Technically competent supervisor will be able to set an example in profession before his subordinates and work as role model for them. with clear.. It will also be effective motivating factor for the employees. befitting accountability in the asset-based management. 143-146). based on the achieved targets for the work centre. Mishra. Indian Dissertation. Comfortable working conditions have been ranked at nine. ONGC has sound policies and there is no discrimination based on cast. 3. therefore its need was ranked low. One of the objectives of ONGC is “Develop scientifically oriented and technically competent human resource through motivation and training”. University of Gorakhpur. M. New Delhi (pp.N. Better opportunities for promotion will be effective motivating strategy for ONGC employees. abstracts. Deputy General Manager (Reservoir) and Dr. ONGC employees are working at base offices of 5 days week pattern. The respondents rank the respect and recognition at number three. It will work as a tool for motivating employees and will result in productivity improvement of the employees.. January-March 1989 Udai Pareek. Although ONGC gives incentive. ACKNOWLEDGEMENT The authors are grateful to Shri T. Following independence with the responsibility in its true spirit will be an effective motivational strategy for the ONGC employees. while the employees in the field are working in 8 hours shift or 14 days ON/OFF pattern.V. REFERENCES 1.