According To McLeod

According to McLeod (2015) punishment is a consequence that weakens a behavior or makes it
less likely to be repeated. It was an aversive event that decreases the behavior that it follows. It
can involve the presentation of an unpleasant stimulus or the removal of a pleasant one
(sometimes referred to as positive and negative punishment). Based on operant conditioning
principles, an organization can use financial rewards such as bonuses as a positive reinforcement
to strengthen the act of putting extra effort among their employees (Sammons, 2012). This
theory supports the variable financial reward by positing that monetary rewards serve as a
positive reinforcement to motivate employees in order to put extra effort to improve their
performance.
2.2.2 The expectancy theory on fringe benefits
The expectancy theory is one of the motivational theories proposed by Victor Vroom in 1964. It
encompasses what motivates employees in an organization. Motivation is a force that energies,
directs and sustains behaviour (Nteere, 2012). Motivation can also be defined as the complex of
forces inspiring a person at work to willingly use his capacities for accomplishment of certain
objectives (Saleem, 2010). The expectancy is the belief that one’s effort will result in attainment
of their goals. An illustration of this in an organization is where an employee works extra hard to
attain organization targets in completing the task in order to enhance his/her performance. This
motive is propelled by the anticipation for the reward such as fringe benefit which is given to a
top performing employees in an organization. Therefore, in a firm where high performing
employees are rewarded with fringe benefits, it results to higher performance because workers
are motivated (Raheel, 2013).
According to the University of Cambrige (2015), the belief in an individual is based on one’s
past experience and the perceived difficulty of the attainment of the goal. When applied in this
study, it implied that the outcome an employee experienced when she or he accomplished task
assigned faster than expected.The expectancy theory advances that even though individuals have
different sets of goals, they can be motivated to work if they believe that there is a positive
correlation between efforts and performance (Robbins & Judge, 2012). Therefore, favorable
performance translates to a favourable rewards and may deliver to maintain the momentum.
Expectancy theory is comprised of three components such as Instrumentality, Expectancy and
Valance (Lunenburg, 2012). Valency is the value an individual places on the rewards (Sinha,
2015). There may be intrinsic such as satisfaction or extrinsic which include pay increase, time-
off, promotion, recognition or fringe benefits. Expectancy as explained above refers to level of
expectation and confidence of accomplishing a task. It was influenced by variables such as self
efficacy, goal difficulty and one’s perceived control over performance (Sanders, 2012).
Instrumentation is the belief that if one meets performance expectations, he or she will receive a
greater reward (McShane & Von Glinow, 2011). This reward may come in the form of a
promotion, pay increase or sense of accomplishment.Vroom suggests that an employee's beliefs
about Expectancy, Instrumentality, and Valence interact psychologically to create a motivational
force such that the employee acts in ways that bring pleasure and avoids pain (Hartzell, 2015).
Therefore, the interaction of the three variables leads to increased motivation and morale among
employees. When workers are motivated they will unleash their potential and the organizational
operations was efficient. They will also be willing to put extra effort in their line of duty with
others in the organization in order to improve organization performance. The theory supports the
variable fringe benefits by hypothesizing that employee was motivated to put extra effort to
improve their performance when they expect benefits such as paid holidays, health insurance,
profit sharing and extras like bestowing performance awards and prizes.
2.2.3 Cognitive evaluation theory on recognition schemes
Cognitive evaluation theory is one of the contemporary motivation theories, which explains the
relationship between intrinsic and extrinsic motivation (McLaughlin, 2015). The theory was
established in response to numerous empirical studies that showed negative effects of the
introduction of some of the extrinsic rewards on intrinsic motivation (Deci & Ryan, 2008).
Earlier, it was believed that intrinsic motivation was totally independent of extrinsic motivation.
However, the research findings affirmed that they were connected with each other. Therefore,
psychologists and organizational behaviorists arrived on the conclusion that with the use of
extrinsic motivation, it eventually diminishes the intrinsic motivation, which was present (Meer,
2013).
The Cognitive evaluation theory developed by Deci and Ryan (1985) claims that two processes
have an influence on the change in intrinsic motivation: change in perceived competence and
change in perceived locus of causality.According to Grant and Berry (2011) the perceived locus
of causality, refers to individual’s self-determination (autonomy). When a person is intrinsically
motivated the locus of causality is within himself. However, when a person receives external
rewards, one begins to perceive that he is doing the activity for the external rewards, so the
perceived locus of causality changes from within an individual to the external reward leaving one
with less intrinsic motivation. On the same note, Filak and Sheldon (2008) argue that when the
extrinsic rewards are offered, the individual loses control on the task. This loss of control results
in lower intrinsic motivation.
According to Llopis-córcoles 2013) the higher the perceived competence of an individual to

perform a given task, the higher his/her intrinsic motivation. People are intrinsically motivated to
perform activities which make them feel competent and self-determining. Therefore rewards or
feedback such as recognition can affect their intrinsic motivation by affecting their feeling of
competence and self-determination (Vansteenkiste, Simons, & Soenens, 2005). Rewards or
feedback that strengthen these feeling enhance intrinsic motivation and feedback that weakens
these feeling decreases intrinsic motivation (Vansteenkiste, Van den Broeck, & Neyrinck, 2007).
According to Meer (2013), presence of extrinsic rewards changes the perception of the
individual. This changes the reasons a person was performing the task, leading to a shift from
intrinsic motivation to extrinsic motivation. The author further argued that when the focus of the
individual changes the same applies to the motivation.
Meer (2013), contends that not all extrinsic motivators decreases intrinsic motivation. Some
extrinsic rewards such as praise, encouragement and appreciation increases the intrinsic
motivation. The author further advocated use of recognition schemes to motivate employees to
continue improving their performance. This theory supports the variable recognition scheme by
asserting that recognition boosts employee’s motivation to put extra effort since it affects the
feeling of competence and self-determination.

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According to McLeod (2015) punishment is a consequence that weakens a behavior or makes it

2.2.2 The expectancy theory on fringe benefits

2.2.3 Cognitive evaluation theory on recognition schemes

According to Llopis-córcoles 2013) the higher the perceived competence of an individual to

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