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Intrinsic and Extrinsic Motivation

Malaysian Amway Companys Direct Sales Forces

AMWAY Malaysia stands tall within the AMWAY worldwide group as one of the top 10 performing affiliates backed by impressive indicators, such as sales turnover, profitability, and an ever-expanding Distributor force.
Since its humble inception in 1976, AMWAY Malaysia has expanded to support the business of its Distributors with an extensive network of AMWAY Retail Shops and Regional Distribution Centres throughout Malaysia and Brunei. In 1996, AMWAY Malaysia became the first-ever direct selling company to be listed on the Main Board of the Kuala Lumpur Stock Exchange. AMWAY is also the first direct selling company to be awarded a 10-year Direct Selling License by the Ministry of Domestic Trade Cooperatives and Consumerism (MDTCC) in 2010.

Job satisfaction Gender Age


Theoretical considerations
Extrinsic and intrinsic motivation (e.g. Frey and Oberholzer-Gee 1997): Individuals have an intrinsic value of performing some activities (e.g. helping others, civic duty) and external monetary compensation reduce the intrinsic value. Incomplete contracts (e.g. Gneezy and Rustichini 2000): The introduction of a monetary payment changes the perception of the incomplete contract (the introduction of a fine for coming late changes the perception of the consequences of frequent delays). Reciprocity (e.g. Fehr & Rockenbach 2003): The introduction of a fine is viewed as an hostile/unfair act, and is therefore punished by reduced generosity. Signaling: The decision to introduce a fine or incentive signals some private information on part of the principal. Can incorporate all of the above explanations.

As a conclusion, the aim of the study is to revisit the work of Herzberg on intrinsic and extrinsic motivation in order to consider its validity and effectiveness when applied to the direct selling industrial institution. The major purpose of the study was to investigate the effectiveness of intrinsic and extrinsic motivation factors, which influenced the job satisfaction in Amway Companys direct sales forces. Most importantly, these data highlight the fact that both intrinsic and extrinsic motivation was significantly needed by Amway Companys direct sales forces. Under such conditions, both intrinsic and extrinsic motivations are essential in improving the job satisfaction.

The research findings that reflects the result of four alternative hypotheses are summarized; (i) Job satisfaction can be influenced by intrinsic and extrinsic motivations among the Amway Companys direct sales forces. Intrinsic motivation leads to higher job satisfaction than extrinsic motivation. (ii) The intrinsic and extrinsic motivations both are identified as the predictor for job satisfaction. They were significantly contributing in job satisfaction among the Amway Companys direct sales forces. (iii) There is no difference between gender and intrinsic and extrinsic motivations. Gender is not the factor that affects both of the intrinsic and extrinsic motivations.

(i) There is a difference between age and intrinsic and extrinsic motivations. Age is the factor that influences both of the intrinsic and extrinsic motivations. By identifying these factors, the research is able to pinpoint areas of intervention that can help keeping the direct sales forces deeply engaged with their performance well.

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