Extrinsic rewards

Definition

Extrinsic rewards are external incentives given to individuals to motivate them to perform a task or behavior. These rewards can include tangible items like money, bonuses, promotions, or other forms of recognition. While extrinsic rewards can boost performance and satisfaction, they may also overshadow intrinsic motivation, which comes from within a person and is driven by personal interest or enjoyment.

5 Must Know Facts For Your Next Test

1. Extrinsic rewards can take many forms, including financial bonuses, awards, praise from supervisors, and promotions.
2. While these rewards can lead to improved performance in the short term, reliance on them may diminish intrinsic motivation over time.
3. Research shows that individuals who receive extrinsic rewards might focus more on the reward itself rather than the underlying task.
4. Extrinsic rewards are often used in workplaces and educational settings to encourage desired behaviors and enhance productivity.
5. Balancing extrinsic rewards with opportunities for intrinsic motivation can lead to sustained engagement and satisfaction in both personal and professional contexts.

Review Questions

• How do extrinsic rewards impact an individual's intrinsic motivation?
  • Extrinsic rewards can significantly impact an individual's intrinsic motivation by providing external incentives that may initially enhance performance. However, over time, excessive focus on these rewards can lead individuals to prioritize the reward itself over the activity they are engaged in. This shift in focus may reduce their intrinsic motivation, as they might become less interested in the activity unless a reward is present.
• Evaluate the effectiveness of extrinsic rewards in workplace settings compared to intrinsic motivation.
  • Extrinsic rewards can be effective in workplace settings for driving short-term performance and achieving specific goals. However, when used excessively, they may create a work environment focused solely on rewards rather than fostering a culture of genuine engagement and satisfaction. In contrast, intrinsic motivation promotes long-term commitment and creativity as employees find personal meaning in their work, suggesting that a balance between both types of motivation is crucial for optimal outcomes.
• Synthesize how the concepts of extrinsic rewards and reinforcement theory interact within organizational behavior.
  • Extrinsic rewards are closely linked to reinforcement theory as both emphasize the role of external factors in shaping behavior. In an organizational context, when positive behaviors are followed by extrinsic rewards such as bonuses or recognition, those behaviors are likely to be reinforced and repeated. Understanding this interaction helps leaders design effective incentive programs that not only motivate employees through extrinsic means but also create an environment where intrinsic motivation can thrive, ultimately enhancing overall organizational effectiveness.

Related terms

Intrinsic Motivation: The drive to engage in an activity for its own sake, fueled by personal satisfaction or interest rather than external pressures.

Motivation: The process that initiates, guides, and maintains goal-oriented behaviors, influenced by both internal and external factors.

Reinforcement Theory: A psychological theory that suggests behavior can be shaped by the consequences that follow it, where positive outcomes increase the likelihood of repeating a behavior.