Author(s): Ilie Popa Georgiana-Florina, Tanase Veisa Alina and Bacanoiu Vaduva Cecilia
Understanding intrinsic and extrinsic motivation is the key to performance management. If a manager spends all his time trying to stimulate extraordinary performance through external motivations when an employee’s motivation is inside, he will not only lose time and money but also lose the interest of the best performers. In our modern knowledge society, using money or any other reward similar to financial ones without proper recognition increases the extrinsic motivation of the employee and erodes intrinsic motivation.