Rewards

Rewards and Intrinsic Motivation

Introduction

Employee motivation is a very important aspect a manager has to take into consideration. The most famous motivation technique, also known as “carrot and stick”, refers to a combination of reward and punishment to motivate one’s behavior. In recent years intrinsic motivation, motivation that comes from inside an individual rather than from material rewards, has brought a new insight into such motivational techniques.

Psychologists state that, in order for a person to perform at work, an adequate environment is required. Intrinsic motivation is part of that environment – an employee that enjoys his work is motivated from inside, as well as by extrinsic rewards, to perform better and do their job properly. Despite the fact that intrinsic motivation plays a big role, one cannot completely omit extrinsic motivation. These considerations beg the following questions:

1. What is the effect of extrinsic motivation on intrinsic motivation?

2. How does one use both intrinsic and extrinsic motivation to ensure optimal performance?

This paper will discuss and answer the above mentioned questions.

The effect of extrinsic motivation on intrinsic motivation

The supporters of “No Significant Effect”

Ryan and Deci (1999) have conducted several experiments and studies on the effects of reward on intrinsic motivation. They have underlined that positive feedback tends to increase intrinsic motivation while tangible rewards have the opposite effect. The results of their studies have shown that controlling people’s behavior using incentives undermines their intrinsic motivation, no matter how appealing the rewards are.

In her work, “Rewards and Creativity”, Beth Hennessey states that the conditions under which an individual works can significantly affect the creativity produced, no matter what are the skills and abilities of that individual, thus supporting the contention that a high quality working environment is...