Motivation and emotion/Book/2024/Intrinsic rewards and motivation

Intrinsic rewards and motivation:
How do intrinsic rewards affect motivation?

Overview

Scenario

Sebastian is a behaviour analyst who has been hired at a new company to boost motivation. He has to determine what it means to be motivated, what intrinsic rewards are, and how they are interrelated. As Sebastian conducts interviews with all of the employees at the company, he finds that when employees have intrinsic rewards (e.g., fulfilment from work, finding their work meaningful, striving to develop their skills and competence) there is a positive correlation with their motivation at work (Manzoor, Wei & Asif, 2021).

Alternatively, Sebastian found that when employees had low or no intrinsic rewards but focused on extrinsic rewards (e.g., financial bonus, meeting KPIs, praise from managers) their motivation in the workplace was negatively correlated with their motivation at work (Manzoor, Wei & Asif, 2021).

Motivation has been studied for [how many - since when?] decades in the hopes to harness research to help various groups increase motivation, and thereby increase engagement and performance. Intrinsic rewards is a reoccurring theme that comes up in research for motivation, particularly how it affects motivation and why. Intrinsic rewards has a positive affect on motivation and can be explained through several research studies and psychological theories on motivation.

Focus questions

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1. What are 'Intrinsic Rewards'?

2. What is 'Motivation'?

3. How do intrinsic rewards increase and decrease Motivation?

4. Which kind of reward creates more motivation?

What are intrinsic rewards?

Intrinsic rewards are internal goals, achievements or desires of said person that are not influenced by any external factors. They are rewarding in and of themselves (Blain & Sharot, 2021).

Some intrinsic rewards include: doing meaningful work, developing competence and skill, exercising the ability to chose, fulfilment, satisfaction in practicing skills/work/activities/learning and rising to a challenge.

Extrinsic Versus Intrinsic
	Reward	Motivation
Extrinsic	Money Salary Financial bonus Praise Recognition Prize Good grades/passing a test	Outside of oneself
Intrinsic	Doing meaningful work Learning Developing a skill Fulfilment Satisfaction Enjoyment Sense of achievement	Inside oneself, separate from external factors

What are extrinsic rewards?

Extrinsic rewards are things like a pay rise, a lolly, going on a holiday, money, a medal, financial bonuses. Extrinsic rewards have been found to motivate people, but significantly less than intrinsic rewards (Goyal, 2015; Deci & Ryan, 2013; Mazoor, Wei & Asif, 2021).

Specific extrinsic rewards like a salary is more of a motivator to employees in the workplace until their salaries are sufficient enough to support themselves, then intrinsic rewards (such as satisfaction with their work and having a sense of meaning and purpose in their work) have more of an effect on motivation (Mazoor, Wei & Asif, 2021).

Figure 1. Extrinsic rewards, such as money, according to motivational theory is negatively correlated with motivation.

What is motivation?

Motivation is promoted through energy, direction and drive seen through human behaviour (Deci & Ryan, 2012; Deci & Ryan, 2013).

Energy in terms of motivation is representative of needs that are required to be met. Direction or drive in terms of motivation is representative of the processes and structures that give meaning to internal and external stimuli (Deci & Ryan, 2013; Goyal, 2015).

Intrinsic versus extrinsic motivation:

Intrinsic motivation is motivation to achieve intrinsic rewards, and are motivated by their goals and desires (Cameron & Pierce, 1994). Extrinsic motivation is motivation to achieve extrinsic rewards, or motivation outside of oneself (Stumpf, Tymon, Favorito & Smith, 2013).

For example, someone who is extrinsically motivated to study is because they have an exam coming up[improve clarity]. Someone who is intrinsically motivated to study is because they love learning and enjoy gaining more knowledge (Deci & Ryan, 2013)[improve clarity].

Self-determination theory (SDT)

SDT is a theory about motivation and how it is affected by different people and their characteristics, such as self-determination (Deci & Ryan, 2012).

Figure 2. Maslow's Hierarchy of Needs: As stated in SDT, it is hypothesised that all humans have an intrinsic need for growth.

SDT makes the assumption humans are inherently active in their decision-making and behaviour, and they are intrinsically motivated (Deci & Ryan, 2012; Dysvik, 2013). The theory also suggests that humans are innately motivated to self-improve and grow, or are innately motivated by achieving intrinsic rewards (Dysvik, 2013; Goldman et al., 2017). This can be seen in figure 2 of Maslow's Hierarchy of Needs, where need for growth is at the top half of the pyramid.

SDT suggests there are three intrinsic and universal psychological needs in all humans: need for competence, relatedness and autonomy[factual?]. When they are achieved or in the process of being achieved, it is hypothesised a human would be able to function at their highest capacity and potential (Deci & Ryan, 2012; Goldman et al., 2017). It is also suggested that when having the belief of achieving and attempting to achieve the three psychological needs, humans have better wellbeing and mental health (Dysvik et al., 2013; Sheldon & Niemiec, 2006). Competence is demonstrated through successful social encounters and facing difficult situations where skills are shown. Relatedness is the desire to feel bonded to those around us, respected by them and feel a sense of belonging in our community. Autonomy describes the human desire to believe that their decisions are an expression of their own free will and that their behaviour is not influenced or controlled by someone else (Goldman, et al., 2017).

In Goldman et al. (2017) wrote a literature review on academic performance in college students when they are motivated by psychological needs or intrinsic motivation in comparison to extrinsically motivated students[grammar?]. It was found that students who were intrinsically motivated performed better academically and had higher memory retention in comparison to students who were extrinsically motivated. It was suggested this was because intrinsically motivated students in completing assignments, studying, participating in classes and receiving feedback, were achieving intrinsic rewards and their psychological needs were being met, continuing to increase their motivation (Goldman et al., 2017). Therefore, intrinsic rewards or psychological needs of competence, relatedness and autonomy are primary drivers for motivation in all human-beings (Deci & Ryan, 2012). It was found that achievement of intrinsic rewards was a main driver of motivation, and a higher predictor of motivation compared to the process of achieving extrinsic rewards (Sheldon & Niemiec, 2006).

Cognitive evaluation theory (CET)

CET is sub theory of SDT, and it suggests that intrinsically motivated behaviour is behaviour that causes the person to feel competent and self-determining (Deci & Ryan, 2012; Riley, 2016). CET focuses on variables that would increase or decrease intrinsic motivation, specifically through rewards (Deci & Ryan, 2012; Riley, 2016).

CET proposes that extrinsic rewards negatively impact motivation in changing the perceived locus of control and by lessening one's perception of their own competence and self-determination (Deci & Ryan, 2012). Research has instead found intrinsic rewards cause the locus of control to be within oneself and thereby have a positive increase in motivation. This means intrinsic rewards enforce intrinsic motivation by reinforcing the feelings of competence and self-determination (Deci & Ryan, 2012). However, CET proposes expected rewards (either intrinsic or extrinsic) change the perceived locus of control and lowers intrinsic motivation. For example, if a person expects a reward when deciding to complete an activity, their locus of control changes to them completing an activity for the purpose receiving a reward, therefore lowering intrinsic motivation (Deci & Ryan, 2012).

Expectancy theory

Originally created by Viktor Vroom in 1964, expectancy theory hypothesises that motivation is driven by three aspects: expectancy, instrumentality and valence (Chiang & Jang, 2008; Goyal, 2015; Vroom et al., 2015). Expectancy is the amount of effort the person amount puts into the activity or task will be direct influence of the outcome. Instrumentality is the person's perception of whether the activity or task will result in reward or punishment. Valence is the perceived amount of reward or punishment that will come from the activity or task (Goyal, 2015). These three aspects determine the amount of motivation someone has before participating in said activity or task.

${\textstyle ExpectancyxInstrumentalityxValence=Motivation}$

Chiang and Jang (2008) conducted a study on hotel employees using the expectancy theory to determine the performance outcome of employees, particularly which type of reward was more potent: intrinsic or extrinsic rewards (e.g., instrumentality and valence). The study found that when employees believed their instrumentality and valence will result in large intrinsic rewards (e.g., positive self-image, feelings of accomplishment, rising to a challenge), motivation to perform at work and complete tasks was higher than all other variables (Chiang & Jange, 2008).

Conclusion

Intrinsic rewards are internal goals, desires and behaviours that are rewards in and of themselves, such as fulfilment, satisfaction, rising to a challenge and mastering a skill (Blain & Sharot, 2021; Chiang & Jange, 2008).

As can be seen through self-determination theory, cognitive evaluation theory and expectancy theory, intrinsic rewards have been found to have a stronger positive correlation with motivation than extrinsic rewards, or any other variable (Cameron & Pierce, 1994; Deci & Ryan, 2013; Jovanovic & Matejevic, 2014; Stumpf et al., 2013). Striving to achieve intrinsic rewards, according to SDT and CET, is a constant, innate motivation for all human beings (Deci & Ryan, 2015; Riley, 2016), and the processing of achieving them and receiving the intrinsic reward increases motivation (Goldman et al., 2017; Dysvik et al., 2013; Sheldon & Niemiec, 2006). Intrinsic rewards has a direct, positive influence on motivation, and as aforementioned through research, continues to be shown that it can make employees engage in their work and make them feel more fulfilled (Chiang & Jang).

For further research to broaden the current literature, future studies can focus on how expected intrinsic rewards can influence motivation as highlighted in research for CET (Deci & Ryan, 2015; Riley, 2016), and if the processing of achieving them and receiving the intrinsic reward increases or decreases motivation. Other focuses can be on how intrinsic rewards can be used to increase motivation in different environments, such as inmates in prison being motivated to reform, players in sports teams to have a better performance, and so on.

References

Blain, B. & Sharot, T. (2021). Intrinsic reward: potential cognitive and neural mechanisms. Current Opinion in Behavioural Sciences, 39, 113–118. https://doi.org/10.1016/j.cobeha.2021.03.008

Cameron, J & Pierce, D. W. (1994). Reinforcement, Reward, and Intrinsic Motivation: A Meta-Analysis, Review of Educational Research, 64(3), 363–423. https://doi.org/10.3102/00346543064003363

Chiang, C., F. & Jang, S., C. (2008). An expectancy theory model for hotel employee motivation. International Journal of Hospitality Management, 27(2008), 313–322. https://doi.org/10.1016/j.ijhm.2007.07.017

Deci, E. L. & Ryan, R. M. (2012). Self-determination theory. Handbook of theories of social psychology, 1(20), 416–436. http://www.personpsy.org/uploadfiles/file/books/Handbook%20of%20Theories%20of%20Social%20Psychology%20Volume%20One%20(Paul%20A.%20M.%20Van%20Lange,%20Arie%20W.%20Kruglanski%20etc.)%20(Z-Library)(1).pdf#page=437

Deci, E. L. & Ryan, R. M. (2013). Intrinsic Motivation and Self-Determination in Human Behaviour, Perspectives in Social Psychology, Springer Science & Business Media, https://books.google.com.au/books?id=M3CpBgAAQBAJ&dq=Deci,+E.+L.,+%26+Ryan,+R.+M.+(1985).+Intrinsic+Motivation+and+Self-Determination+in+Human+Behavior.+New+York:+Plenum+Press.+http://dx.doi.org/10.1007/978-1-4899-2271-7&lr=&source=gbs_navlinks_s

Dysvik, A., Kuvaas, B. & Gagné, M. (2013). An investigation of the unique, synergistic, and balanced relationships between basic psychological needs and intrinsic motivation. Journal of Applied Psychology, 43(5), 1050–1064. https://doi.org/10.1111/jasp.12068

Goldman, Z. W., Goodboy, A. K. & Weber K. (2017). College students' psychological needs and intrinsic motivation to learn: An examination of self-determination theory. Communication Quarterly, 65(2), 167–191. https://doi.org/10.1080/01463373.2016.1215338

Goyal, P., K. (2015). Motivation: Concept, Theories and practical implications. International Research Journal of Commerce Arts and Science, 6(8), 71–78.

Jovanovic, D. & Matejevic, M. (2014). Relationship between Rewards and Intrinsic Motivation for Learning – Researches Review. Procedia - Social and Behavioral Sciences 149, 456–460, https://doi.org/10.1016/j.sbspro.2014.08.287

Manzoor, F., Wei, L. & Asif, M. (2021). Intrinsic Rewards and Employee's Performance With the Mediating Mechanism of Employee's Motivation. Frontiers in Psychology, 12(563070), 1–13, https://doi.org/10.3389/fpsyg.2021.563070

Sheldon, K., M. & Niemiec, C., P. (2006). It’s Not Just the Amount That Counts: Balance. Journal of Personality and Social Psychology, 91(2), 331–341. https://doi.org/10.1037/0022-3514.91.2.331

Stumpf, S. A., Tymon, W. G., Favorito, N. & Smith, R., R. (2013). Employees and change initiatives: intrinsic rewards and feeling valued. Journal of Business Strategy, 32(2), 21–29, https://doi.org/10.1108/02756661311310422

Vroom, V., Porter, L., & Lawler, E. (2015). Expectancy theories. In Organizational Behavior 1 (pp. 94-113). Routledge.

External Links

Intrinsic Motivation: Revolutionise Education, Work and Life (TEDx Talks)
Intrinsic and Extrinsic Motivation: Differences and Best Practices (Personio)
A Theory of Human Motivation (Psych Classics)
Viktor Vroom's Expectancy Theory of Motivation (Positive Psychology)