Modelling factors of motivation in a not-for-profit organisation

This paper reports on a study undertaken in an organisation providing services for people with disabilities. The organisation in which this research was undertaken is facing a changing funding model. The essential research issue of the paper is an understanding of the influence of both intrinsic and extrinsic rewards on the motivation of not-for-profit staff. The organisation concerned is made up of two units, in one of which employees can earn a performance bonus. This situation highlights the issue of how extrinsic rewards are perceived by staff as a source of motivation. The technique of discriminant analysis was used to investigate the importance of a number of variables on staff motivation. The important findings of the study are, first, that intrinsic rewards play a significant role in motivation. Second, extrinsic rewards, but in combination with intrinsic rewards, also motivate staff.