(9.8.

607)
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
Maslows 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 peoples 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 Herzbergs 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.

RESEARCH METHODOLOGY
Research design: It was decided to use a) rank order method in administered instrument b) various
statistical measures like mean, median, mode, standard deviation, coefficient of variation, skewness,
correlation factor and its statistical significance using Students t value for testing of hypothesis
comprising relationships between intrinsic and extrinsic motivation with hierarchical levels.
Sampling method and sample size: Keeping in view the monetary requirements, time constraints
and accuracy of sampling, the Dehradun work centre is considered as a cluster or a mini population of
ONGC. Further it was decided to go for multistage stratified proportionate sampling in order to have
appropriate representation from different hierarchical levels. More than 150 questionnaires were given
for administration to the respondents, but only 106, duly completed were received back. The
respondents were the executives of Keshava Deva Malaviya Institute of Petroleum Exploration
(KDMIPE), Geodata Processing and Interpretation Centre (GEOPIC), Institute of Drilling Technology,
ONGC Academy, Exploration and Development Directorate, Tel Bhavan, Frontier Basin, Dehradun.
The hierarchical level-wise responses of E0, E1, E2, E3, E4 and E5 were found to number 8, 6, 12, 28,
42 & 10 respectively.
Reliability and validity of the instrument: The standard instrument compiled by Mr. Udai Pareek,
was administered. The reliability and validity of the instrument is proven.
The instrument and its administration: What do we look for in a job? measure intrinsic and extrinsic
motivation, or what Herzberg called motivators and hygiene. The instrument contains fourteen items,
seven related to intrinsic and seven to extrinsic motivation. Seven intrinsic motivational factors are:
advancement, interesting work, respect and recognition, responsibility and independence,
achievement, a technically competent supervisor and equitable pay. The seven extrinsic motivational
factors are: security, adequate earning, fringe benefits, comfortable working conditions, sound
company policies and practices, a considerate and sympathetic supervisor, and restricted hours of
work. Respondents were asked to rank-order the fourteen items depending on their importance to
them: from 1 (highest) to 14 (lowest rank). The ranks given are added for intrinsic motivation (item
numbers 4, 6, 8, 9, 10, 12 and 14) and for extrinsic motivation (item numbers 1, 2, 3, 5, 7, 11 and 13).
The lower the score, the higher is the value given to the concerned motivational factor. This instrument
is used to help respondents become aware of their motivational profile.

RESULTS AND DISCUSSION

The item wise analysis has been carried out across different hierarchical levels & it is given in table -1.
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
3.70
3.57
3.32
3.50
4.50
3.75
3.57
2 Adequate salary
4.60
6.40
5.20
6.10
6.00
5.00
5.75
3 Fringe benefits
9.00
8.61
8.46
6.25
8.16
7.80
8.25
4 Opportunities for promotion
5.60
5.90
5.85
8.16
5.33
8.00
6.24
5 Comfortable working conditions
9.90
8.50
7.39
6.60 10.10 7.25
8.12
6 Interesting work
7.50
6.30
6.60
6.00
9.00
4.62
6.48
7 Sound company policies and practices
7.70
7.59
7.57
8.75
4.33
5.12
7.36
8 Respect and recognition
5.00
6.30
6.35
5.90
3.80
7.62
6.10
9 Responsibility and independence
6.20
6.69
6.78
7.75
7.00
6.50
6.79
10 Doing something worthwhile
7.70
7.83
8.39
8.75
6.60
9.25
8.11
11 Considerate and sympathetic supervisor
9.30 10.00 10.82 8.00 11.50 10.50 10.05
12 Technically competent supervisor
9.50
8.40
8.96
8.25
8.16
8.75
8.65
13 Restricted hours of work
11.70 10.52 11.14 11.40 10.00 10.60 10.87
14 Pay according to ability and competence 5.80
8.50
8.32
9.40 10.50 10.25 8.54
E3 level officers give highest importance (score 3.32) to job security, while E1 level officers give least
importance (score 4.50) to it among all hierarchical levels. We can easily infer that E1 level officers
have shown greater readiness to face the present liberalized, globalise and competitive environment,
which requires employability rather than employment security. The adequate salary draws the least
importance (score 6.40) by E4 level officers, while it gets maximum importance (score 4.60) by E5

level officers. This may be probably due to small difference in the salary of E4 and E5 level officers.
The fringe benefits is rated highest (score 6.25) by E2 level and lowest (9.0) by E5 level. It indicates
that it is highest motivating factor for E2 level. E1 level officers give highest importance (score 5.33) to
the opportunities for promotions, while it draws least importance (score 8.16 and 8.0) by E2 and E0
level officers. It may be due to the fact that E0 level officers have risen from the lower levels viz. ClassIII level and they have completed the major part of their service and give least importance to the
promotion, probably, mobility due to promotion hinders their future personal plans or they may not be
ready to take higher responsibilities, while E1 level (entry level) officers are more ambitious and they
give highest importance to opportunities for promotion and self growth. The item-comfortable working
conditions has been rated highest (score 6.6) by E2 level and lowest (10.10) by E1 level. 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. Interesting work has been rated highest (score 4.62) by E0 level officers
and lowest (score 9.0) by E1 level. It may be, probably due to the reason that lower level officers (E0)
may have to perform the routine and repetitive work, thus they give higher importance to the
interesting work. E1 level officers give highest (score 4.33) importance to company policies and
practices in comparison to other levels. Respect and recognition has been rated highest (score 3.8) by
E1 level and lowest (score 7.62) by E0 level. It indicates that respect and recognition is the highest
motivating factor for E1 level. Responsibilities and independence draws minimum importance (score
7.75) by E2 level and maximum importance (score 6.2) by E5 level, probably by virtue of this quality,
they have risen to corporate level. Doing something worthwhile is rated highest (score 6.60) by E1
level and lowest by (score 9.25) E0 level. Considerate and sympathetic supervisor is rated highest
(score 8.0) by E2 level and lowest (score 11.5) for E1 level. The maximum score (9.5) for technically
competent supervisor is for E5 level, while it is minimum (score 8.16) for E1 level. It indicates that
lower level officers give highest importance to technically competent supervisor in comparison to
higher levels. It is obvious that lower level employees seek more technical guidance from their
superiors. Restricted hours of work is rated highest (score 10.0) by E1 level and lowest (score 11.7) by
E5 level. The E1 level officers are among the young work- force of the organization and they want to
devote enough time with their family. The score for pay according to ability and competence is
maximum (10.5) for E1 level while it is minimum (5.8) for E5 level. Thus E5 level officer gives higher
importance to pay according to ability and competence in comparison to other levels, as most of them
have been given the higher responsibilities and challenging assignments.
The maximum score (54.8) for the intrinsic motivation is for E0 level officers, while it is minimum (46.6)
for E5 level officers as indicated in table-2. Thus any efforts in raising the intrinsic motivation in E5
level officer will bring desired results. The maximum score (57.7) for the extrinsic motivation is for E5
level officers, while it is minimum (48.5) for E0 level officers. Thus higher-level officers are motivated
by intrinsic factor, while lower levels are motivated by extrinsic factor. The weighted average score of
the intrinsic and extrinsic motivation are 50.66 and 53.4 respectively, which reveals that the ONGC
officers give higher importance to intrinsic motivation relative to extrinsic motivation in general.
Table-2: Average response of various hierarchical level respondents, 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 46.6 49.7 51 54 50.3 54.8 50.66
5%
1%
2 Extrinsic motivation 57.7 54.6 52.8 49.8 54.3 48.5 53.40
-0.996
22.13 2.776 4.604
The correlation coefficient between intrinsic motivation and extrinsic motivation has been found to be
() 0.996, which indicates that there is direct inverse relation between them. It is evident from the data
in the table-2 as well, 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, while it is reverse in the case of
extrinsic motivation. To test that the relation between the two variables, is statistically significant or not,
the following null and alternate hypothesis has been formulated for testing.
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.

For testing of the above hypothesis, Students t value has been calculated and shown in table-2, the
calculated Students t value (22.13) is much higher than t table value (2.776) for 4 degree of freedom
and at 0.05 significance level. 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. 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,
investigated under the present study.
The rank-wise break-up of respondents for each item is shown in table-3.
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

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

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

3.58
5.75
8.26
6.25
8.13
6.50
7.36
6.11
6.79
8.11
10.07
8.65
10.88
8.55

The mean, median, mode, standard deviation, coefficient of variation and skewness have been
calculated separately for all the 14 items. These are shown in table 4.
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- devia
ness
varia
mode tion
tion
1 1 Job security
3.58
2.0
1
3.31 92.46 0.78
I
2

Adequate salary

5.75

5.0

3.88

67.48

0.97

II

Respect and recognition

6.11

5.0

3.57

58.43

0.87

III

Opportunities for promotion

6.25

5.5

3.46

55.36

0.65

IV

Interesting work

6.50

6.0

3.56

54.77

0.42

Responsibility and independence

6.79

7.0

3.60

53.02

0.78

VI

Sound company policies & practices

7.36

8.0

3.62

49.18

0.65

VII

8.11

8.0

3.77

46.49

0.30

VIII

10 Doing something worthwhile

Comfortable working conditions

8.13

8.5

10

3.38

41.57 -0.55

IX

10

Fringe benefits (perks etc.)

8.26

8.5

9,11

3.39

41.04

11 14 Pay according to ability & competence

8.55

9.0

13

4.28

50.06 -1.04

XI

12 12 Technically competent supervisor

8.65

9.0

10

3.53

40.81 -0.38

XII

13 11 Considerate & sympathetic supervisor

10.07

11.0

13

3.28

32.57 -0.90

XIII

14 13 Restricted hours of work

10.88

12.5

14

3.75

34.47 -0.83

XIV

----'

The various statistical measures were computed to understand the central as well as dispersal
tendencies in the data. The central tendency was determined by computing mean, median and mode.
The dispersion was determined by computing the most widely used statistical measure standard

deviation. The coefficient of variation is determined for relative measure of variation and consistency.
The Karl Pearson co-efficient of skewness is calculated to determine the symmetry of the data.
The mean values for fourteen items vary from 3.58 to 10.88. As mentioned earlier, lowest score
indicate highest importance and highest score indicate least importance. Based on the score for mean,
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.
A second measure of central tendency- median, which divides the distribution into two equal parts,
varies from 2 to 12.5 for these fourteen items. 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. The highest score of the median value (12.5) is for restricted hours of work. These
values of median corroborate the values of mean determined for these items. The mode-which occurs
most often or with greatest frequency, varies from 1 to 14 for different items. The lowest score (1) of
mode found for job security, indicates that maximum number (43) of respondents rate it at rank-one.
The highest score (14) of mode for restricted hours of work, indicates that maximum number (40) of
respondents rate it at rank-fourteen. These values of mode further corroborate the determined values
of mean, median for these items. Thus, the job security has the minimum score for mean, median and
mode, while restricted hours of work has maximum score for all these three statistical parameter. The
distribution curve for fringe benefits is bimodal with two equal modes, 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.
The standard deviation, which is most widely used and important measure of variation, varies from
3.28 to 4.28 for the fourteen items. The minimum value of standard deviation of 3.28 for considerate
and sympathetic supervisor indicates that there is least variability in ranking of this item among all by
the respondents. The maximum value of standard deviation of 4.28 for pay according to ability and
competence indicates that there is largest variability in ranking of this among all items, by the
respondents. A relative measure of variation- the coefficient of variation is minimum (32.57) and
maximum (92.46) for considerate and sympathetic supervisor; and job security respectively. The
skewness- a measure of symmetry, varies from () 1.04 to 0.97 for the fourteen items under
consideration. The distribution curve is negatively or left skewed for comfortable working conditions,
pay according to ability and competence, technically competent supervisor, considerate and
sympathetic supervisor, restricted hours of work, while it is positively or right skewed for job security,
adequate salary, respect and recognition, opportunities for promotion, interesting work, responsibility
and independence, sound company policies and practices, doing something worthwhile.

CONCLUSIONS AND RECOMMENDATIONS

E3 level officers give maximum importance to job security while E5 level officers give maximum
importance to adequate salary, responsibility and independence, pay according to ability and
competence in comparisons to any other hierarchical level. E2 level officers give highest ranking to
fringe benefits, comfortable working conditions; and considerate and sympathetic supervisor while E0
level officers give highest ranking to interesting work in comparison to other hierarchical levels. E1
level officers give highest ranking to opportunities for promotion, sound company policies and
practices, respect and recognition, doing something worthwhile, technically competent supervisor &
restricted hours of work in comparison to other hierarchical levels.
E5 level officers have given highest ranking to intrinsic motivation in comparison to other levels. Thus,
intrinsic motivation will be more effective in bringing the desired results for E5 level officers. E0 and
below level officials give highest importance to extrinsic motivation in comparison to other levels. The
intrinsic motivation (average weighted score, 50.7) will be more effective in bringing the desired results
in comparison to extrinsic motivation (average weighted score 53.4) for ONGC employees in general.
It has been determined that that there is direct inverse relation between the intrinsic motivation and
extrinsic motivation. The null hypothesis comprising relation between intrinsic motivation and extrinsic
motivation has been tested and found rejected. Thus it is proved that there is statistically significant
association between the intrinsic motivation and extrinsic motivation for the respondents of different
hierarchical levels, investigated under present study.
ONGC employees enjoy the job security (item rank-one) so this item does not need any further
attention. ONGC employees rank the adequate salary at rank-two, thus ONGC management should
offer adequate salary to its employees for attracting and retaining the technically and professionally

competent, and trained manpower. The salary should be adequate and comparable with other national
and multinational oil companies of India. It will be good motivation tool for ONGC employees. The
respondents rank the respect and recognition at number three. ONGC management should make
more effective reward system. The top/outstanding performer should be suitably awarded. The
opportunities for promotion has been ranked at number four by ONGC employees. Better opportunities
for promotion will be effective motivating strategy for ONGC employees. ONGC management should
make efforts for job enrichment, job enlargement, job rotation for making the work interesting (item
rank-five). It will work as a tool for motivating employees and will result in productivity improvement of
the employees. Responsibility and independence has been ranked at number six. Following
independence with the responsibility in its true spirit will be an effective motivational strategy for the
ONGC employees. There is empowerment down the line, befitting accountability in the asset-based
management. Virtual Corporate has been conceptualised so that each Asset/ Basin/Institute/Plant is a
self-contained enterprise, with clear, one-stop accountability and commensurate authority. Sound
company policies have been ranked at number seven. One of the objectives of ONGC is Develop
scientifically oriented and technically competent human resource through motivation and training.
ONGC has sound policies and there is no discrimination based on cast, creed, race or gender.
Doing something worthwhile has been ranked at number eight. Every employee should be made
aware about the significance of his job and its use in the overall objective of the company, so that he
feels himself as an important member of the team. It will also be effective motivating factor for the
employees. Comfortable working conditions have been ranked at nine. The ONGC management
should make efforts to make the working conditions comfortable and safe in the all its work areas.
Fringe benefits have been ranked at number ten. ONGC offers good fringe benefits and perks;
therefore its need was ranked low. Pay according to ability and competence has been ranked at
number eleven. 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. Although ONGC gives incentive,
based on the achieved targets for the work centre. Technically competent supervisor has been ranked
at number twelve. Technically competent supervisor will be able to set an example in profession
before his subordinates and work as role model for them. Considerate and sympathetic supervisor
gets ranking at number thirteen. Caring and father figure supervisor enjoys the loyalty of his
subordinates. Restricted hours of work gets least ranking i.e. fourteen. ONGC employees are working
at base offices of 5 days week pattern, while the employees in the field are working in 8 hours shift or
14 days ON/OFF pattern. Thus, it will not be motivating factor for the ONGC employees.

ACKNOWLEDGEMENT
The authors are grateful to Shri T. R. Mishra, Deputy General Manager (Reservoir) and Dr. R.V.
Marathe General Manager- Head IRS, Ahmedabad for their motivation and guidance. The authors are
also grateful to the management of ONGC for granting permission to present and publish this paper.

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