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Performance bonus is an example of :

  • A.Intrinsic reward
  • B.Extrinsic reward
  • C.Intrinsic wage payment
  • D.Extrinsic wage payment

Answer: B

A performance bonus is an extrinsic reward.

Extrinsic rewards are tangible rewards given to the employee by someone else, usually the organisation: pay, bonuses, promotions, benefits and recognition. A bonus paid for performance is a classic example.

Intrinsic rewards come from the work itself, such as a sense of achievement, challenge, autonomy and growth, and are not handed out by the organisation. 'Intrinsic wage payment' and 'extrinsic wage payment' are not standard categories; the established distinction is between intrinsic and extrinsic rewards.

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