The Effect of Intrinsic and Extrinsic Rewards for Developers on Information Systems Project Success

Abstract

Project failure in information sytems development continues to plague organizations. A lack of intrinsic and extrinsic rewards for developers may be a cause of such failure. A survey instrument was created using existing project success scales and items based on structured interviews with 12 IS project managers. Two hundred two members of the Project Management Institute completed the survey. After rigorous validation, path analysis (an extension of multiple regression that simultaneously tests more complex relationships) showed that use of intrinsic rewards predicted client satisfaction and perceived quality (but not on-time and within-budget implementation success), whereas use of extrinsic rewards predicted implementation success (but not satisfaction or quality). Future researchers might investigate reasons for these complementary findings. Managers might use the findings in efforts to improve information systems project success.

The Effects of Intrinsic and Extrinsic Rewards on Employee Attitudes; Mediating Role of Perceived Organizational Support

“…According to [8], commitment is a belief and perception of employee about the receiving of organizational values and goals as their own goals and values, employees shows acceptance to organizational policies and values to keep themselves attach with organization. Extrinsic compensation includes wages, promotion at job, social climate of organization, and job security, bonuses, increments, and overtime payments also comes under the domain of extrinsic rewards [9].…”

The complex relationship between intrinsic and extrinsic rewards

“…Intrinsic motivation is experienced when a person is moved to act for the 'fun' or challenge entailed rather than because of external pressures or rewards. Employees are thought to be motivated to work hard to produce quality results when they have pride in their work, they believe their efforts are important to the success of the team and their jobs are fun, challenging, and rewarding [Mahaney and Lederer 2006]. Having intrinsically motivated employees can be the greatest asset for any organization [Masvaure, Ruggunan, and Prowse 2014].…”

“…Extrinsic rewards include elements such as pay, fringe benefits, job security, promotions, private office space, social climate [Ozutku 2012]. Mahaney and Lederer [2006] claim that of all the extrinsic rewards pay is the most significant to employees. They give some examples of types of pay as extrinsic rewards such as competitive salaries, pay rises, merit bonuses, and indirect forms of payment as compensatory time off.…”

“…Organizations spend significant parts of their budgets offering intrinsic and extrinsic rewards to members aiming to improve human resources outcomes [Mahaney and Lederer 2006]. Work rewards, meaning all the benefits that workers receive from their jobs [Bratton and Gold 2012], are considered one of the most important factors that encourage workers to invest extra effort and work more efficiently.…”

Considerations for Effective Requirements Analysis in Offshore Software Development Projects: Lessons from Multi-Method Research

“…Research has examined project success as an aggregate of two or more of the following factors: system quality, information quality, user satisfaction, service quality, use, and net benefits (Delone & McLean, 2003, 1992. Mahaney and Lederer (2006) identify three dimensions of software project success: client satisfaction, perceived quality of the project, and success with the implementation process. Similarly, Baroudi and Orlikowski (1988) develop a short-form measure of user information satisfaction (UIS) that measures the success or effectiveness of a management information system (MIS).…”