Extrinsic motivation occurs when we are motivated to perform a behavior or engage in an activity in order to earn a reward or avoid a punishment. Intrinsic motivation involves engaging in a behavior because it is personally rewarding; essentially, performing an activity for its own sake rather than the desire for some external reward.

1. Intrinsic and Extrinsic Motivation
Malaysian Amway
Company’s Direct Sales
Forces

2. COMPANY INTRODUCTION
AMWAY Malaysia stands tall within the AMWAY worldwide group as one of the
top 10 performing affiliates backed by impressive indicators, such as sales
turnover, profitability, and an ever-expanding Distributor force.
Since its humble inception in 1976, AMWAY Malaysia has expanded to support
the business of its Distributors with an extensive network of AMWAY Retail
Shops and Regional Distribution Centres throughout Malaysia and Brunei.
In 1996, AMWAY Malaysia became the first-ever direct selling company to be
listed on the Main Board of the Kuala Lumpur Stock Exchange. AMWAY is also
the first direct selling company to be awarded a 10-year Direct Selling License
by the Ministry of Domestic Trade Cooperatives and Consumerism (MDTCC) in
2010.

3. FACTORS
• Job satisfaction
• Gender
• Age

4. Methodology

5. Theoretical considerations
•
•
•
•
Extrinsic and intrinsic motivation (e.g. Frey and
Oberholzer-Gee 1997): Individuals have an intrinsic value of
performing some activities (e.g. helping others, civic duty) and
external monetary compensation reduce the intrinsic value.
Incomplete contracts (e.g. Gneezy and Rustichini 2000):
The introduction of a monetary payment changes the perception
of the incomplete contract (the introduction of a fine for coming
late changes the perception of the consequences of frequent
delays).
Reciprocity (e.g. Fehr & Rockenbach 2003): The introduction
of a fine is viewed as an hostile/unfair act, and is therefore
punished by reduced generosity.
Signaling: The decision to introduce a fine or incentive signals
some private information on part of the principal. Can
incorporate all of the above explanations.

6. CONCLUSION
As a conclusion, the aim of the study is to revisit the work of Herzberg
on intrinsic and extrinsic motivation in order to consider its validity and
effectiveness when applied to the direct selling industrial institution. The
major purpose of the study was to investigate the effectiveness of
intrinsic and extrinsic motivation factors, which influenced the job
satisfaction in Amway Company’s direct sales forces. Most importantly,
these data highlight the fact that both intrinsic and extrinsic motivation
was significantly needed by Amway Company’s direct sales forces.
Under such conditions, both intrinsic and extrinsic motivations are
essential in improving the job satisfaction.

7. CONCLUSION
The research findings that reflects the result of four alternative
hypotheses are summarized;
(i)Job satisfaction can be influenced by intrinsic and extrinsic
motivations among the Amway Company’s direct sales forces. Intrinsic
motivation leads to higher job satisfaction than extrinsic motivation.
(ii)The intrinsic and extrinsic motivations both are identified as the
predictor for job satisfaction. They were significantly contributing in job
satisfaction among the Amway Company’s direct sales forces.
(iii)There is no difference between gender and intrinsic and extrinsic
motivations. Gender is not the factor that affects both of the intrinsic
and extrinsic motivations.

8. CONCLUSION
(i)
There is a difference between age and intrinsic and extrinsic
motivations. Age is the factor that influences both of the intrinsic
and extrinsic motivations. By identifying these factors, the research
is able to pinpoint areas of intervention that can help keeping the
direct sales forces deeply engaged with their performance well.

9. THANKS
Bye, bye!

10. THANKS
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