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Running Head: ASSESSMENT OF INTRINSIC AND EXTRINSIC MOTIVATION IN FOR
PROFIT AND NON-PROFIT ORGANIZATIONS
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Assessment of Intrinsic and Extrinsic Motivation in For-
Profit and Non-Profit Organizations
SHELBY-LAIN BROWN
School of Social Sciences
Indiana University Southeast

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ABSTRACT
Based on Self-Determination Theory (Deci, 2000), this study examined the role of
intrinsic and extrinsic motivation on work effort and satisfaction for employees of for-profit and
non-profit organizations. Based on the results of an online survey, it was predicted that
intrinsically motivated people would more likely work for non-profit than for-profit
organizations and 2) intrinsically motivated non-profit employees would display more work
effort and satisfaction than their extrinsically motivated counterparts. This research extends
previous research by examining how intrinsic motivation serves as a critical factor in
understanding work effort and satisfaction of employees of non-profit organizations.
Key Words Extrinsic Motivation; Intrinsic Motivation; Motivation; Self-Determination
Theory (SDT); Work Extrinsic and Intrinsic Motivation Scale (WEIMS); Job Satisfaction;
Workload; Work Related Stress
Introduction
Throughout recent years, many studies have been conducted on employee
satisfaction, retention and motivation methods (Ryan & Deci, 2000, Gagn’e & Deci, 2005). A
critical factor in the relationship among employee satisfaction, retention, and motivational
methods is that of intrinsic and extrinsic motivation (Ryan & Deci, 2000). Extrinsic motivation is
defined as being a motivation gained by other reasons than from within the employee (Dyer &
Parker, 1975). Extrinsic motivation focuses more on the consequences to which the activity can
lead to rather than the satisfaction of doing a job well done on a certain task (Gagn´e & Deci,
2005). Being extrinsically motivated involves performing an activity with the intention of

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obtaining a tangible compensation, such as receiving an award, avoiding guilt, or gaining
approval from peers or employers (Deci, Ryan, & Williams, 1996, p. 167).
Intrinsic motivation is defined as an incentive that the employee can pull from within
their self (Dyer & Parker, 1975). An employee who is intrinsically motivated would pull the
drive of their work efforts from experiencing the pleasure and satisfaction no matter the activity
(Deci, Connell, & Ryan, 1989). An example of intrinsic motivation would refer to the
satisfaction an employee receives from completing a job or doing a job well done. Intrinsically
motivated employees work on responsibilities because they find them pleasurable, interesting
and that participation is its own reward (Ryan & Deci, 2000). This in turn accentuates the
employee’s efforts while doing a certain task (Ryan & Deci, 2000).
Two other important factors in motivation are the employees’ level of work effort and the
extent to which employees are satisfied with their job. Work effort and job satisfaction are
important to motivation because the amount of effort employees puts into their job reflects how
satisfied the employees are at their current level of occupation. For instance, Poulin and Walter
(1992) found that job satisfaction among social workers was related to the employee’s intentions
to say at their current job. The researchers then investigated contributing factors such as job
satisfaction with reimbursement, supervisors, coworkers and overall attitudes of satisfaction.
Poulin and Walter (1992) found that overall satisfaction was negatively associated with the
company’s turnover rate of the social workers. Satisfaction with pay or compensation may
contribute to motivation and a low turnover rate of the employees (Preyra and Pink, 2001).
In summary, although, there are many studies and theories (cf. Gagne & Deci, 2005;
Kanfer, 2009) that focus on worker satisfaction and motivation, rarely, there is research that
focuses on differences between motivational factors in non-profit and for-profit organizations.

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The purpose of the present study was to examine motivational factors non-profit and for-profit
organizations.
Intrinsic vs. Extrinsic Motivation in Non-Profit and For-Profit Organizations
Intrinsic and extrinsic motivation also plays an important role in for profit and non-profit
organizations (Lee &Wilkins, 2011). More specifically, there are important differences in how a
non-profit organization and a for profit organization operate. A non-profit organization is a
business organized for purposes other than generating a profit. The backbone of every nonprofit
organization is its mission (Angelica, 2001). The purpose of a mission statement is to help
define an organizations values and envisioning its future in a more clear and concise way
(Yoshioka, Brown & Carlton, 2003). This leaves little room for non-profit organizations to
motivate their employees with extrinsic rewards. For-profit businesses are more likely to have
extra funds built into their budget to motivate their employees with extrinsic rewards.
Self-Determination Theory (SDT)
A key to helping how non-profit organizations might motivate their employees is based
on the Ryan & Deci’s (2000) “The Self-Determination Theory.” The Self-Determination Theory
(SDT) is compiled of three major components; autonomy, competence, and relatedness. The first
component is competence. Competence involves challenging tasks that produce a “desired
outcome” (Ryan & Deci, 2000). The second component is autonomy. Autonomy refers to a
personal choice or a feeling like the originator of one’s own actions. The third component is
relatedness. Relatedness refers to being able to relate to others or having a mutual respect for
persons other than ourselves (Ryan & Deci, 2000).

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The purpose of the present study was to extend previous research by worker motivation
by assessing the extent to which employees working in non-profit organizations are more likely
to be intrinsically motivated than extrinsically motivated. This study also assesses the possibility
that intrinsically motivated employees, who work in non-profit organizations, will be more
satisfied with their efforts in their organization.
Based on the Self-Determination Theory (Ryan & Deci, 2000), it was hypothesized that
employees working in non-profit organizations would be more intrinsically motivated than
extrinsically motivated while just the opposite pattern was hypothesized for employees working
in for-profit organizations. Based on previous research, it was hypothesized that workers in non-
profit organizations would exhibit different or more expressions of work effort and job
satisfaction than those working in for-profit establishments. Employee job satisfaction plays an
important role in the overall accomplishment of the company (Ryan & Deci, 1976). As a
tributary purpose of the present study, these hypothesizes were proposed to examine more
thoroughly how and why worker motivation, job satisfaction, and work effort might vary for
employees working in a non-profit vs. for-profit organization.
METHOD
Participants
Participants consisted of males and female professionals working for profit and non-profit
organizations 18 years or older. The 201 participants were recruited and provided their responses
online.

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Measures
The principle measures used in this present study included a demographic survey, measure of
intrinsic and extrinsic motivation, and assessments of work and job satisfaction, job performance
and work effort.
Demographics Survey, part of the online survey, participants completed a 4-item
demographic questionnaire assessing their age, the nature of their employment (profit vs. non-
profit), the first asking (how old are you?) participants entered a two-digit number to answer this
question. Second, asked about the nature of employment; (profit vs. non-profit), length of
employment expressed in years and months, and yearly income.
Intrinsic vs. Extrinsic Motivation. (See Appendix A) Work and job performance survey
was assessed using the Work Extrinsic and Intrinsic Motivation Survey (WEIMS; Tremblay,
Blanchard, Taylor, Pelletier, & Vileneuve, 2009), which assess why people do the work that they
do. Work extrinsic motivation is defined as a desire to achieve a goal in hopes to receive a
reward. Intrinsic motivation is defined as gratification that comes from within the spirit and soul
of an individual. The reward is in the work itself and the person feels good for doing it. The
work extrinsic and intrinsic motivation survey consists of 18-item fixed format questionnaire
which includes the type of work, amount of income, how individuals feel about their work, if
individuals want to be good in their work, how individuals feel when completing difficult task
and if the job is a part of their life. Participants were asked to indicate these responses on a scale
of 1 to 7 (1 = most like me to 7 = not like me at all).

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Employee Job Satisfaction. Employee job satisfaction was assessed using the Job Passion
and Self – Evaluation Survey (JPSES), which focuses on positive experiences that employee,
have in their organizations (Smith, 2013); The Employee Job Satisfaction Survey is an online
survey. Employee Job Satisfaction survey is a 9-item questionnaire focusing on employee
personal growth, management leadership, reward for efforts and job satisfaction. Participants
were asked to indicate their responses on a scale of 1 to 5 (1 = strongly disagree to 5 = strongly
agree).
Work Effort. The Work Effort Survey (WES) is a unique original survey created by the
researchers for the specific purposes of this study. The WES is 13-item questionnaire, assessing
specific questions related to work effort in for-profit and non-profit organizations. Seven yes-or-
no questions pertaining to time spent at work. Participants responded to two questions related to
work stress using a validity scale ranging from 1(low stress) to 10 (high stress. Two fill-in the
blank questions related to hours worked and work schedule. One 4-point Likert scale question (1
= extremely satisfied to 4 = unsatisfied), and one 5-point. Likert scale question ( 1 = poor to 5 =
outstanding), asked participants to rate their own job performance related to the duration of being
in service at the, for-profit or non-profit organization.
Procedures
After logging on to the survey site, participants were asked to read a Study Information
Sheet describing the general nature of the survey. At the end of this information the survey read
“Are you 18 years or older?” If participants click “yes”, they were allowed to proceed to the next

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part of the survey. If participants click “no”, the survey populates to a “thank you for your
participation” conclusion statement. Participants who clicked “yes” were allowed to proceed to
the demographic questionnaire, (WEIMS), Employee Satisfaction Survey – Job Passion and Self
– Evaluation and WES. After completing all of the measures, “Thank you for your participation,
this concludes our study” statement appeared.
RESULTS
Work Extrinsic and Intrinsic Motivation Scale
Results from the Work Extrinsic and Intrinsic Motivation Scale (WEIMS) was analyzed
using an independent samples t-test. The intrinsic questions were then reverse scored with the
extrinsic answers indicating that intrinsically motivated employees in non-profit organizations
reported a higher WEIMS score (M = 73.51, SD= 7.54, N=92), t(105)= -4.54, p < .000.) The
results from the for-profit employees showed (M= 67.14, SD = 8.78, N =57, t(147) = -4.705, p <
.000.) These findings are consistent with previous research that suggests employees who work
for non-profit organizations are more intrinsically motivated individuals (Bidee, 2013).
Employee Job Satisfaction
The second hypothesis was also supported when reverse scoring the results of the
Employee Job Satisfaction survey. By reverse scoring the calculations and using the independent
sample t-test results proved that non-profit employees reported a higher mean score on job
satisfaction than employees working in for-profit companies (M=36.70, SD = 6.35, N =93, t(98)
= -3.064, p< .003.) Results from employees working n for-profit organizations showed (M=

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32.71, SD = 8.62, N =59), t(150) = -3.28, p <.001.) These results help support the fact that if an
employee is intrinsically motivated and working in a non-profit organization they are more likely
to be satisfied doing their type of work.
Work Related Stress and Workload
The results also showed that employees who work in non-profit organizations reported a
higher level of work stress. This was analyzed by the work effort survey. Researchers conducted
an independent sample t-test and the results showed for non-profit employees ( M = 5.94, SD =
2.166, N =93) t(113) = 1.230, P <.236). Results for employees who work in for-profit
organizations showed (M = 54.47, SD = 2.5, N = 60) t (151) = -1.230, P < .221.) These results
mean that even though employees working in non-profit organizations reported higher work
related stress they were still more satisfied in their line of work than for-profit employees.
Results were similar when testing non-profit vs profit work load. Results for non-profit
employees showed (M = 7.53, SD = 1.99, N = 94), t(107) = -2.87, p < .005). Results for-profit
employees showed (M = 6.45, SD = 2.45, N = 60) t (152) = -3.004, p < .003). These results mean
that even though employees working in non-profit organizations are receiving or creating a
higher workload and are more stressed out they are still more satisfied with their jobs than
employees who work in for-profit organizations.
DISCUSSION
The present research attempted to investigate the differences in intrinsic and extrinsic
motivation in non-profit and for-profit organizations. This research also attempted to assess work

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stress and workload in employees that work for non-profit organizations and for-profit
organizations.
Intrinsic Motivation in Non-Profit Employees
The investigation of intrinsically motivated employees was supported by the WEIMS,
which consisted of 18 questions designed to measure intrinsic motivation and extrinsic
motivation (Tremblay, 2009). The analysis of the WEIMS proved the hypothesis that people that
work for non-profit organizations are more intrinsically motivated than their counterparts that
work in for-profit organizations.
Employee Job Satisfaction- Job Passion
The Employee Job Satisfaction-Job Passion and Self-Evaluation questionnaire,
employees that worked in non-profit organizations reported a higher mean score on employee
job satisfaction than employees that work for for-profit organizations. Employees who are
genuinely interested and satisfied in their work are going to produce better results and put forth
more effort in their job (Valencia, 2004). As proved by this study, employees who are motivated
by intrinsic rewards are going to be more satisfied with their job. Unlike intrinsically motivated
individuals, extrinsically motivated individuals would not be as satisfied in the non-profit field.
This may be due to the fact of low pay or a lack of other monetary rewards (Ziegler, Hagan
&Diehl, 2005).

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Work Related Stress and Workload
The Work Stress and Workload questionnaire was designed to measure the level of stress
and employee encounters at work. The Work Stress and Workload questionnaire helped
distinguish if an employee working in a non-profit organization would be more stressed at their
job than an employee working in a for-profit organization. This was important to the present
study because it helped identify if stress was a factor in job satisfaction. The results of the
present study showed that employees working in non-profit and for-profit organizations showed
similar levels of work related stress and having a similar workload. This is interesting because
even though employees working in non-profit organizations show the same level of stress as
their for-profit counterparts they are still more satisfied with their job.
Limitations and Suggestions for Future Research
In interpreting the results of the present study, a number of limitations must be
considered. Although the WEIMS (Tremblay, 2009) has been shown to be reliable and have
valid self-report measures associated with extrinsic and intrinsic motivation the present study
used this questionnaire to an all online audience. This could cause problems with distracted
patrons answering the questions or lying. Another limitation with using an online audience was
that, 40% of the participants worked for a for-profit organization while 60% of the audience
currently worked for a non-profit organization.
Another limitation of this study was that the operationalization of the job characteristics
was limited. Several job characteristics are likely to influence an employee’s work effort.
Therefore, it would be valuable for future research to examine the impact of other job
characteristics on work effort.

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Forthcoming research should look into intrinsic motivation in hourly and salaried, non-
profit employees. This research could be beneficial to companies looking for a resolution to a
high turnover rate.
Future research should also look at the different levels of motivation and level of current
work position, pay and years spent at their current job. An employee working for a non-profit
organization may be upper management and bringing home a substantial amount of money or
working toward other extrinsically motivated goals.
CONCLUSION
In conclusion, this research is important because organizations can use the results to
change the way they run their company. For example, non-profit organizations can change their
hiring process to include motivational factors on their applications. Organizations can include a
WEIMS (Tremblay, 2009) based scale to figure out if an employee is intrinsically motivated or
extrinsically motivated. By using the results of this research, we now know that employees
working in non-profit organizations are more likely to be satisfied with their job if they are
intrinsically motivated. This could not only save trouble for the potential candidates of the
organization, but also the organizations.

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