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Towards Agile Public Sector: Analysing the Effects of IM and EM on WP

Most of the public managers are of the firm belief that extrinsic monetary rewards predominantly contribute to employee productivity and that the motivational strategies shall be aligned to sustain extrinsic motivation (EM) rather than intrinsic motivation (IM). A substantial body of literature on motivation does not endorse this perspective. A relook of the present motivational strategies in central public sector enterprises (CPSEs) in India and an evaluation of the suitability of these strategies as drivers of agility are quite appropriate at this juncture. The purpose of this article is to examine the effects of IM and EM on work performance (WP) in CPSEs, in the context of workforce agility. This article also analyses the relationship between EM and IM in public sector settings. Data collected from 371 employees of five selected CPSEs were analysed. We found that the effect of IM on WP is stronger than the effect of EM on WP in CPSEs. We also found that EM influences IM positively. The study offers insights to public managers to review the existing motivation strategies and to focus on enhancing the IM for an inevitable agile transformation.