Certified Building Official Management Practice Exam

What term describes the rewards an employee receives from salary and benefits or status related to their job?

1. Intrinsic rewards

2. Extrinsic rewards

3. Internal bonuses

4. Public recognition

The correct answer is: Extrinsic rewards

The term that describes the rewards an employee receives from salary, benefits, or job-related status is extrinsic rewards. These are tangible rewards that come from external sources, primarily focusing on the financial and status-related aspects of a job. Salary and benefits are direct financial compensations that employees receive as part of their employment, reflecting the economic value of their work. Extrinsic rewards can create motivation through recognition of the employee's contribution in a measurable form, which includes not just cash payments but also bonuses, benefits packages, and promotions that elevate their status within the organization. These types of rewards are often emphasized in corporate environments, where performance evaluation may link closely to financial incentives, making them significant in employee retention and attraction strategies. While intrinsic rewards refer to non-physical and emotionally satisfying aspects of a job, like personal growth and fulfillment, they do not encompass the tangible elements mentioned in this context. Internal bonuses are a form of extrinsic rewards but do not cover the full range of salary and benefits. Public recognition involves acknowledgment of achievements but is not necessarily tied to direct financial compensation or job-related status. Thus, understanding extrinsic rewards is essential for both employers looking to motivate staff and employees assessing the offered compensation package.