External Rewards

Definition

External rewards are tangible benefits or incentives offered to individuals to encourage specific behaviors or performance, often used in various settings, including business and education. These rewards can include money, prizes, recognition, and other forms of compensation that are not inherently linked to the activity itself but are provided externally to motivate individuals. Understanding external rewards is crucial as they can influence engagement and performance levels significantly.

5 Must Know Facts For Your Next Test

1. External rewards can effectively boost performance and motivation, especially in tasks that individuals might find tedious or uninteresting.
2. While external rewards can lead to short-term motivation, they may also undermine intrinsic motivation if overused or relied upon excessively.
3. Types of external rewards include financial bonuses, gift cards, awards, public recognition, and promotional opportunities.
4. The design of an external reward system should align with the goals of the organization and the preferences of the individuals to be effective.
5. Using a mix of both external and intrinsic motivations can create a balanced approach that enhances overall engagement and satisfaction.

Review Questions

• How do external rewards influence individual behavior in a workplace setting?
  • External rewards play a significant role in shaping individual behavior within a workplace by providing clear incentives for desired actions. When employees are offered bonuses or recognition for achieving specific goals, it encourages them to focus their efforts on those tasks. However, if external rewards become the sole motivator, it might diminish intrinsic motivation, leading individuals to prioritize rewards over personal satisfaction in their work.
• Discuss the potential drawbacks of relying too heavily on external rewards to motivate individuals.
  • Relying too heavily on external rewards can lead to several drawbacks, including the potential for diminished intrinsic motivation. When individuals become accustomed to receiving rewards for their efforts, they may lose interest in the task itself and only engage in it for the sake of the reward. This shift can also result in decreased creativity and reduced long-term commitment to the organization if employees feel that their work is only valued through external validation rather than personal achievement.
• Evaluate how a well-structured external reward system can be integrated with intrinsic motivation strategies for optimal results.
  • A well-structured external reward system can complement intrinsic motivation strategies by providing tangible incentives while still fostering a sense of personal achievement. Organizations can design reward systems that recognize not only outcomes but also effort and innovation. By incorporating elements like praise and opportunities for professional development alongside external rewards, companies can create an environment where employees feel valued for both their performance and their growth. This balanced approach maximizes motivation and engagement, driving better results for both individuals and the organization.

Related terms

Intrinsic Motivation: Intrinsic motivation refers to engaging in an activity for its own sake, driven by personal satisfaction, interest, or enjoyment rather than external rewards.

Gamification: Gamification is the application of game design elements in non-game contexts to enhance user engagement and motivation through features like points, badges, and leaderboards.

Behaviorism: Behaviorism is a psychological approach that emphasizes the role of external stimuli in shaping behavior through reinforcement or punishment.