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Extrinsic rewards, in terms of appreciation, encouragement and praise, actually increases the intrinsic motivation.
Many OB experts believe that in the case of cognitive evaluation theory, extrinsic rewards can be categorized into two types: verbal and tangible;
the verbal type of extrinsic motivation (appreciation, praise and encouragement) increases the overall level of intrinsic motivation. On the other hand, tangible extrinsic motivation (money, rewards, demotion) damage the intrinsic motivation
Theory says that the introduction of extrinsic rewards and punishment may hurt the intrinsic motivation, and therefore, the overall level of motivation.
When the extrinsic rewards are offered, the individual himself loses a lot of control on the task. This loss of control results in lower intrinsic motivation.
Secondly, the presence of extrinsic rewards changes the perception of the individual. The very reason, why he was performing the task in the first place, changes. This results in a shift from intrinsic motivation to extrinsic motivation. When the focus of the individual changes, so does his motivation
For managers, the CET suggests never to use extrinsic rewards and punishment, where intrinsic motivation is already available. But CET does encourage the use of verbal extrinsic rewards, such as, appreciation, recognition and praise.
CET suggests to pick up a job that you really love and care about. You will be able to perform significantly better than the rest of your colleagues
Presented by Oluwatobi Ogunmokun (15500595)