Under what Circumstances do Extrinsic Rewards Decrease Intrinsic Motivation?

Abstract

The effects of extrinsic rewards on intrinsic motivation have long been an area of interest for organizational psychologists and researchers. There are two conflicting views on the effects of extrinsic rewards (e.g., money) on motivation. One position is that for tasks that are already interesting, intrinsic motivation is reduced with extrinsic rewards; the second position is that intrinsic and extrinsic motivation are independent and additive, thus when combined, motivation increases. The current study examined how several variables (i.e., perception of control, appropriateness of rewards, and task-liking), along with extrinsic rewards, affect intrinsic motivation. 16 vignettes were developed to assess these factors. A 4-way interaction was found among these variables which raises important implications concerning the choice of organizational rewards. While inappropriate extrinsic rewards in a high-control situation reduced task attractiveness, appropriate extrinsic rewards did not decrease task attractiveness.