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Differences Between Intrapreneurs and Entrepreneurs


An entrepreneur is someone who, through his or her skills and passion, creates a business and is willing to take full accountability for its success or failure. An intrapreneur, on the other hand, is someone who utilizes his or her skill, passion and innovation to manage or create something useful for someone else’s business... with entrepreneurial zest. 

Though both are visionary, it is the entrepreneur who spots an opportunity in the marketplace and has the courage and zeal to turn this opportunity into a business. In contrast, however, the Intrapreneur uses his or her passion, drive and skills to manage the business or create something new and useful for the business. 

The main disparity between an entrepreneur and an intrapreneur is that an entrepreneur has the freedom to act on his or her whim; whereas, an intrapreneur may need to ask for management’s approval to make certain changes in the company’s processes, product design or just about any innovation he or she needs to implement. Since an intrapreneur acts on innovative impulses, this may result in conflict within the organization. It is important for organizations who are implementing intrapreneurship, to create an atmosphere of mutual respect among employees. 

When it comes to resources, the intrapreneur holds an advantage over the entrepreneur since the company’s resources are readily available to him or her. Conversely, an entrepreneur has the difficult task of sourcing for funding and resources on his or her own.

So, in summary…

Intrapreneurs vs. Entrepreneurs
  • Entrepreneurs provide the spark. Intrapreneurs keep the flame going.
  • Entrepreneurs are found anywhere their vision takes them. Intrapreneurs work within the confines of an organization.
  • Entrepreneurs face many hurdles, and are sometimes ridiculed and riddled with setbacks. Intrapreneurs may sometimes have to deal with conflict within the organization.
  • Entrepreneurs may find it difficult to get resources. Intrapreneurs have their resources readily available to them.
  • Entrepreneurs may lose everything when they fail. Intrapreneurs still have a paycheck to look forward to (at least for now) if they fail.
  • Entrepreneurs know the business on a macro scale. Intrapreneurs are highly skilled and specialized.


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BF Skinner's Reinforcement Theory

Reinforcement theory of motivation was proposed by BF Skinner and his associates. It states that individual’s behaviour is a function of its consequences. It is based on “law of effect”, i.e, individual’s behaviour with positive consequences tends to be repeated, but individual’s behaviour with negative consequences tends not to be repeated.
  • Positive Reinforcement- 

This implies giving a positive response when an individual shows positive and required behaviour. For example - Immediately praising an employee for coming early for job. This will increase probability of outstanding behaviour occurring again. Reward is a positive reinforce, but not necessarily. If and only if the employees’ behaviour improves, reward can said to be a positive reinforcer. Positive reinforcement stimulates occurrence of a behaviour. It must be noted that more spontaneous is the giving of reward, the greater reinforcement value it has
  • Negative Reinforcement- 

This implies rewarding an employee by removing negative / undesirable consequences. Both positive and negative reinforcement can be used for increasing desirable / required behaviour.
  • Punishment- 

It implies removing positive consequences so as to lower the probability of repeating undesirable behaviour in future. In other words, punishment means applying undesirable consequence for showing undesirable behaviour. For instance - Suspending an employee for breaking the organizational rules. Punishment can be equalized by positive reinforcement from alternative source.

  • Extinction-

It implies absence of reinforcements. In other words, extinction implies lowering the probability of undesired behaviour by removing reward for that kind of behaviour. For instance - if an employee no longer receives praise and admiration for his good work, he may feel that his behaviour is generating no fruitful consequence. Extinction may unintentionally lower desirable behaviour.

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Locke's Theory of Goal Setting

According to Locke and Latham, there are five goal setting principles that can improve our chances of success:

  • Clarity

Clear goals help identify behaviors that should be rewarded. They are also unambiguous, measurable, and have definite completion times. Clarity in goals can induce people to work to their full potential.

  • Challenge

Challenging goals enhance feelings of achievement and drive people to work harder to achieve them.

  • Commitment

Ownership of or “buy-in” to a goal increases the likelihood of its accomplishment. Within an organization, people must understand and agree upon goals in order for them to be effective. Organizations thus should encourage employees to develop goals for themselves that are consistent with the organization’s own vision.

  • Feedback

Feedback is necessary for people as they pursue a certain goal so they can judge their own progress toward achieving it. This feedback can come from self-judgment or from other people.

  • Task complexity

Highly complex goals can become overwhelming for people. For such goals, people need to be provided sufficient time to work toward the goal, improve performance, practice, or learn what is necessary for success.


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Vroom's Expectancy Theory

The Expectancy theory states that employee’s motivation is an outcome of how much an individual wants a reward (Valence), the assessment that the likelihood that the effort will lead to expected performance (Expectancy) and the belief that the performance will lead to reward (Instrumentality). In short, Valence is the significance associated by an individual about the expected outcome. It is an expected and not the actual satisfaction that an employee expects to receive after achieving the goals. Expectancy is the faith that better efforts will result in better performance. Expectancy is influenced by factors such as possession of appropriate skills for performing the job, availability of right resources, availability of crucial information and getting the required support for completing the job.
Instrumentality is the faith that if you perform well, then a valid outcome will be there. Instrumentality is affected by factors such as believe in the people who decide who receives what outcome, the simplicity of the process deciding who gets what outcome, and clarity of relationship between performance and outcomes. Thus, the expectancy theory concentrates on the following three relationships:
  • Effort-performance relationship: What is the likelihood that the individual’s effort be recognized in his performance appraisal?
  • Performance-reward relationship: It talks about the extent to which the employee believes that getting a good performance appraisal leads to organizational rewards.
  • Rewards-personal goals relationship: It is all about the attractiveness or appeal of the potential reward to the individual.
Vroom was of view that employees consciously decide whether to perform or not at the job. This decision solely depended on the employee’s motivation level which in turn depends on three factors of expectancy, valence and instrumentality.


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John Rawls's Theory of Justice

A Theory of Justice(1971)
Rawls's theory of justice revolves around the adaptation of two fundamental principles of justice which would, in turn, guarantee a just and morally acceptable society. The first principle guarantees the right of each person to have the most extensive basic liberty compatible with the liberty of others. The second principle states that social and economic positions are to be (a) to everyone's advantage and (b) open to all.
A key problem for Rawls is to show how such principles would be universally adopted, and here the work borders on general ethical issues. He introduces a theoretical "veil of ignorance" in which all the "players" in the social game would be placed in a situation which is called the "original position." Having only a general knowledge about the facts of "life and society," each player is to make a "rationally prudential choice" concerning the kind of social institution they would enter into contract with. By denying the players any specific information about themselves it forces them to adopt a generalized point of view that bears a strong resemblance to the moral point of view. "Moral conclusions can be reached without abandoning the prudential standpoint and positing a moral outlook merely by pursuing one's own prudential reasoning under certain procedural bargaining and knowledge constraints."


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Adam's Equity Theory

Equity Theory proposes that a person's motivation is based on what he or she considers to be fair when compared to others (Redmond, 2010).  As noted by Gogia (2010), when applied to the workplace, Equity Theory focuses on an employee's work-compensation relationship or "exchange relationship" as well as that employee's attempt to minimize any sense of unfairness that might result.  Because Equity Theory deals with social relationships and fairness/unfairness, it is also known as The Social Comparisons Theory or Inequity Theory (Gogia, 2010).


Equity theory of motivation, developed in the early 1960’s by J. Stacey Adams, recognizes that motivation can be affected through an individual's perception of fair treatment in social exchanges.  When compared to other people, individuals want to be compensated fairly for their contributions (the outcomes they experience match their inputs).  A person's beliefs in regards to what is fair and what is not fair can affect their motivation, attitudes, and behaviors. Equity theory helps explain why highly paid union workers go on strike when no one else but the members understand why and why millionaire athletes feel that they are underpaid and don't feel they make enough money.

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Need Theory by David McClelland

Psychologist David McClelland developed Need Theory, a motivational model that attempts to explain how the needs for achievementpower (authority), and affiliation affect people's actions in a management context. Need Theory is commonly often taught in management and organizational-behaviorclasses.
  • Achievement

People who are strongly achievement-motivated are driven by the desire for mastery. They prefer working on tasks of moderate difficulty in which outcomes are the result of their effort rather than of luck. They value receiving feedback on their work.
  • Affiliation

People who are strongly affiliation-motivated are driven by the desire to create and maintain social relationships. They enjoy belonging to a group and want to feel loved and accepted. They may not make effective managers because they may worry too much about how others will feel about them.
  • Power


People who are strongly power-motivated are driven by the desire to influence, teach, or encourage others. They enjoy work and place a high value on discipline. However, they may take a zero-sum approach to group work—for one person to win, or succeed, another must lose, or fail. If channeled appropriately, though, this can positively support group goals and help others in the group feel competent about their work.

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