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Question 5

As a Senior HR Professional, you should be familiar with intrinsic rewards and extrinsic rewards that your company provides for its employees. Which of the following is an example of an extrinsic reward?

    Correct Answer: B

    Extrinsic rewards are tangible, external rewards provided by the employer, often in the form of monetary or physical incentives. Cash compensation is a clear example of an extrinsic reward as it directly involves financial payment from the employer to the employee. This distinguishes it from intrinsic rewards, which are non-tangible and internally satisfying, such as personal growth or job satisfaction.

Discussion
DonRichyOption: B

B. Cash compensation Extrinsic rewards are tangible rewards given to employees for their performance or adherence to company standards. These rewards are usually monetary or physical, such as bonuses, salaries, benefits, or other tangible perks. Cash compensation fits this definition, as it is a direct financial reward provided by the employer.