The Effects of Intrinsic Motivation and Extrinsic Incentives on Employee Performance

The Effects of Intrinsic Motivation and Extrinsic Incentives on Employee Performance
Author: Jan U.
Publisher: GRIN Verlag
Total Pages: 35
Release: 2021-07-21
Genre: Business & Economics
ISBN: 3346442276

Bachelor Thesis from the year 2016 in the subject Leadership and Human Resources - Employee Motivation, grade: 1,3, University of Mannheim, language: English, abstract: The motivation for this work is a result of several factors. At first, the topics of motivation and work performance represent core areas in the fields of management and leadership with essential theoretical and practical implications. Second, various studies have been undertaken in order to examine the direct effects of motivation on work performance showing the high relevance of this issue. For example, the work of Jenkins, Mitra, Gupta and Shaw (1998) verifies a positive link between extrinsic motivation and work performance. Such performance improvements may be essential for companies trying to bet the competition. However, comparable studies examining the effects of intrinsic motivation on work performance tend to be rare. Thus, another reason for this present thesis is to close this substantial research gap. The topic of motivation has been widely studied from various researchers in several areas. It represents an essential part in multiple research fields, including the ones of management and psychology. Rani and Lenka define motivation as “a process that elicits, controls, and sustains certain behaviors”. Thus, motivated employees are activated to engage in a certain behaviour in an energized way, whereas unmotivated employees may not have any incentive to act. Ilardi, Leone, Kasser and Ryan (1993) validate a positive relation between high levels of motivation and positive work outcomes, such as job satisfaction or well-being. The importance of motivation becomes clear in light of the recent Gallup-study, which states that unmotivated workers lead to substantial losses for businesses. Until now, a significant number of studies have focused on the effects of motivation on well-being or job satisfaction. However, this thesis has a slightly different focus. It examines the effects of motivation on work performance of employees based on the self-determination theory (SDT) from Deci and Ryan (1985). Therefore, it distinguishes between two types of motivation, namely intrinsic and extrinsic motivation, which will be defined later. This distinction allows to separately examine the effects of intrinsic and extrinsic motivation on work performance as well as the interaction of those two variables and the joint impact of both motivational constructs on work performance.

Motivation and Work Performance. The Effects of Intrinsic and Extrinsic Motivation on Work Performance

Motivation and Work Performance. The Effects of Intrinsic and Extrinsic Motivation on Work Performance
Author: Jan U.
Publisher: GRIN Verlag
Total Pages: 28
Release: 2021-07-21
Genre: Business & Economics
ISBN: 334644225X

Seminar paper from the year 2018 in the subject Leadership and Human Resources - Employee Motivation, Employee Satisfaction, grade: 1,3, University of Mannheim, language: English, abstract: The purpose of this paper is to investigate the effects of intrinsic and extrinsic motivation on work performance within the R&D environment and provide practical recommendations. Substantial research has been conducted to investigate the construct of motivation and to validate its impact on core business outcomes within varying environments. According to Rani and Lenka (2012), the motivational process affects an individual’s strength and persistence of behaviour. Thus, motivated individuals are activated to behave in a more creative, productive and persistent way. Prevailing literature validates this positive effect. For example, Deci and Ryan (2008a) argue that there is a significant link between motivation and positive work-related outcomes, such as psychological well-being and work performance. Considering this convincing evidence, further research tried to investigate this relationship within varying settings. An area that has aroused major attention is the R&D environment. Within this context managers face several obstacles in establishing high levels of motivation. Clarke (2002) mentions, for example, the differing values and expectations of R&D specialists, the uncertainty of outcomes and the difficulty in measuring the results. For high levels of motivation and performance to occur, managers need to respond to the needs of the R&D professionals without losing sight of the company’s major objectives. Based on the work of Deci, Vallerand, Pelletier and Ryan (1991) and their distinction between intrinsic and extrinsic motivation, studies in the R&D management literature validate the importance of both motivational constructs within this context. However, in practice, organizations like BMW may be incentivized to primarily focus on extrinsic rewards. Extrinsic incentive systems, such as salary increases or bonuses, can easily be established, fairly measured and provide a clear link between the employees’ monetary motives and the organizations objectives. Further, intrinsic motivation may be neglected due to difficulties and increased efforts of implementing such incentives. As a result of this neglect of their workers' intrinsic needs and desires, the motivation within the R&D department and in turn the work performance may decline.

Personal Causation

Personal Causation
Author: R. de Charms
Publisher: Routledge
Total Pages: 413
Release: 2013-10-31
Genre: Psychology
ISBN: 1317838467

First published in 1983. This book is primarily intended to make a theoretical contribution, to suggest a somewhat novel way of approaching the problems of human motivation, to break from tradition. The aim of this work is to stimulate the reader to think on a broad scale about big problems and to temper these thoughts with the detailed facts of empirical investigations.

Successful Management by Motivation

Successful Management by Motivation
Author: Bruno S. Frey
Publisher: Springer Science & Business Media
Total Pages: 324
Release: 2013-03-09
Genre: Business & Economics
ISBN: 3662101327

Motivated employees play a crucial role in creating a companys sustainable competitive advantage. Successful Management by Motivation shows that in a knowledge-based society, this goal cannot be achieved by extrinsic motivation alone. Pay for performance often even hurts because it crowds out intrinsic motivation. To succeed, companies have to find ways of fostering and sustaining intrinsic motivation. With the help of in-depth case studies, representative surveys, and analysis based on a large number of firms and employees, this work identifies the various aspects of motivation in companies and shows how the right combination of intrinsic and extrinsic motivation can be achieved.

Changing Employee Behavior

Changing Employee Behavior
Author: Nik Kinley
Publisher: Springer
Total Pages: 225
Release: 2015-03-31
Genre: Business & Economics
ISBN: 113744956X

An important part of every manager's job is changing people's behavior: to improve someone's performance, get them to better manage relationships with colleagues, or to stop them doing something. Yet, despite the fact that changing people's behavior is such an important skill for managers, too many are unsure how to actually go about it. This book reveals the simple, but powerful techniques for changing behavior that experts from a range of disciplines have been using for years, making them available to all managers in a single and comprehensive toolkit for change that managers can use to drive and improve the performance of their staff. Based on research conducted for this book, it introduces practical techniques drawn from the fields of psychology, psychotherapy, and behavioral economics, and show how they can be applied to address some of the most common, every-day challenges that managers face. #changingpeople

Intrinsic and Extrinsic Motivation

Intrinsic and Extrinsic Motivation
Author: Carol Sansone
Publisher: Elsevier
Total Pages: 513
Release: 2000-09-12
Genre: Psychology
ISBN: 0080509096

In understanding human behavior, psychologists have long been interested in what motivates specific actions. Debates have pitted extrinsic motivators (e.g. rewards/punishment) against intrinsic motivation in attempting to determine what best motivates individuals. This book provides a summary view of what research has determined about both extrinsic and intrinsic motivation, and clarifies what questions remain unanswered. Divided into three sections, section I revisits the debate about the effects of extrinsic incentives or constraints on intrinsic motivation and creativity, and identifies theoretical advances in motivational research. Section II focuses on the hidden costs and benefits of different types of achievement goals on motivation and performance. Section III discusses theory and research findings on how extrinsic and intrinsic motivators may work in everyday life and over time. This book is of interest to researchers in psychology, education, and business, as well as to a wider audience interested in promoting optimal motivation and performance.Coverage in this book includes:* Debates and controversies in motivational research* Developmental nature of intrinsic and extrinsic motivation over time* Influences of parents, educators, and employers in facilitating motivation* Effect of achievement goals on learning and performance* The role of intrinsic and extrinsic motivation in self-regulation Key Features* Brings together major figures in the fields of motivation, education, and social psychology* Provides a mix of theory, basic and applied research* Presents research conducted both in laboratories and educational settings* Comprehensive chapters provide excellent reviews of previous literature as well as outlines important new directions* Provides different perspectives on controversial debates in a balanced, constructive manner

Intrinsic and Extrinsic Motivation

Intrinsic and Extrinsic Motivation
Author: Carol Sansone
Publisher: Academic Press
Total Pages: 514
Release: 2000-07-24
Genre: Education
ISBN: 0126190704

In understanding human behavior, psychologists have long been interested in what motivates specific actions. Debates have pitted extrinsic motivators (e.g. rewards/punishment) against intrinsic motivation in attempting to determine what best motivates individuals. This book provides a summary view of what research has determined about both extrinsic and intrinsic motivation, and clarifies what questions remain unanswered. Divided into three sections, section I revisits the debate about the effects of extrinsic incentives or constraints on intrinsic motivation and creativity, and identifies theoretical advances in motivational research. Section II focuses on the hidden costs and benefits of different types of achievement goals on motivation and performance. Section III discusses theory and research findings on how extrinsic and intrinsic motivators may work in everyday life and over time. This book is of interest to researchers in psychology, education, and business, as well as to a wider audience interested in promoting optimal motivation and performance. Coverage in this book includes: * Debates and controversies in motivational research * Developmental nature of intrinsic and extrinsic motivation over time * Influences of parents, educators, and employers in facilitating motivation * Effect of achievement goals on learning and performance * The role of intrinsic and extrinsic motivation in self-regulation Key Features * Brings together major figures in the fields of motivation, education, and social psychology * Provides a mix of theory, basic and applied research * Presents research conducted both in laboratories and educational settings * Comprehensive chapters provide excellent reviews of previous literature as well as outlines important new directions * Provides different perspectives on controversial debates in a balanced, constructive manner

Effects of rewards on employee motivation

Effects of rewards on employee motivation
Author: Getaneh Abebaw
Publisher: GRIN Verlag
Total Pages: 73
Release: 2021-12-23
Genre: Business & Economics
ISBN: 334656164X

Master's Thesis from the year 2020 in the subject Leadership and Human Resource Management - Employee Motivation, , language: English, abstract: The general objective of this study is to assess the effect of reward on employee motivation in Kirkos sub city administration, Addis Ababa. The study aims at assessment of the effect of reward on employee motivation in selected Kirkos sub city administration. Descriptive and inferential analysis was used to describe the effect of intrinsic and extrinsic rewards on employee motivation. Out of a total target population of four hundred fortify one administrative employee; two hundred ten samples were taken in probability sampling more specifically, stratified sampling, technique from the Kirkos sub city administration chief executive pool. Questionnaire was developed and distributed to the administrative employees. The finding of the study indicated that administrative employees of the administration have moderate satisfaction with the total reward practices. However; employees are motivated better by intrinsic rewards than extrinsic rewards. When each extrinsic reward items were computed, employees showed dissatisfaction from bonuses, similarly, when variables of each intrinsic reward were examined employees have moderate satisfaction the relationship of manager.

Intrinsic Versus Extrinsic Motivation and the Effects of those Types on Employees

Intrinsic Versus Extrinsic Motivation and the Effects of those Types on Employees
Author: Muhammad Naeem
Publisher: GRIN Verlag
Total Pages: 108
Release: 2015-09-29
Genre: Business & Economics
ISBN: 3668056951

Master's Thesis from the year 2014 in the subject Leadership and Human Resources - Miscellaneous, grade: A, University of Sunderland (MBA), course: MBA HRM, language: English, abstract: The general aim of this research is to examine the differing effects of intrinsic and extrinsic motivation in the company PEL, Punjab, Pakistan. The findings can be used by the company in order to enhance the extent of motivation at their workplace. Both primary and secondary data will be used while looking at the various elements of the two types of motivation, and the differing effects they have on employees. Furthermore, the positive and negative sides of the two types of motivation will be discussed in the literature review. In order to gather primary data, sets of questions have been outlined and answers have been collected from the employees at the firm. The questions revolve around different elements of motivation, and hence allow that the effectiveness of both the methods is thoroughly examined. The main conclusion is that it is not one of the two types of motivation that gives fruitful results, nor is there a combination of the two that works universally.