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The Effects of Intrinsic Motivation and Extrinsic Incentives on Employee Performance

Titre: The Effects of Intrinsic Motivation and Extrinsic Incentives on Employee Performance

Thèse de Bachelor , 2016 , 29 Pages , Note: 1,3

Autor:in: Jan U. (Auteur)

Gestion des ressources humaines - Motivation des employés
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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.

Extrait


Table of Contents

1. Introduction

2. Theoretical Background

2.1. Self-Determination Theory

2.2. Constructs

2.2.1. Intrinsic Motivation

2.2.2. Extrinsic Motivation

2.2.3. Work Performance

2.3. The Effects on Work Performance

2.3.1. The Effect of Intrinsic Motivation on Work Performance

2.3.2. The Effect of Extrinsic Motivation on Work Performance

2.3.3. The Interaction of Intrinsic and Extrinsic Motivation and their Joint Impact on Work Performance

3. Discussion

3.1. Theoretical Implications

3.2. Practical Implications

3.3. Limitations and Future Research

Objectives and Topics

This thesis investigates the impact of intrinsic motivation and extrinsic incentives on employee work performance, grounded in the Self-Determination Theory (SDT). The primary research aim is to analyze how these two motivational constructs influence performance individually and how they interact to affect joint outcomes, while identifying moderators such as incentive contingency and performance type.

  • Analysis of Self-Determination Theory and psychological needs
  • Distinction between intrinsic and extrinsic motivation
  • Examination of motivational effects on task and contextual performance
  • Investigation of the "undermining effect" and synergistic interactions
  • Practical implications for management and incentive design

Excerpt from the Book

2.3.1. The Effects of Intrinsic Motivation on Work Performance

As mentioned earlier, intrinsically motivated employees tend to engage in a task out of the inherent value of the task itself and the positive feelings that stem from the satisfaction of their needs for autonomy, competence and relatedness (Deci & Ryan, 2008b). Further, several studies argue that, based on this need satisfaction, there is a positive link between intrinsic motivation and work performance (Deci et al., 1991; Gagné & Deci, 2005; Ilardi et al., 1993).

However, these studies do not validate this link with reliable data. In fact, studies that investigate the effect of intrinsic motivation on work performance are rather rare resulting in a substantial research gap. In their early work, Kasser, Davey and Ryan (1992) validate a positive link between intrinsic motivation and performance of chronic psychiatric patients. In their opinion, this finding is based on a high degree of participation (Kasser et al., 1992). In accord to this, Baard et al. (2004) confirm a positive relation between worker’s intrinsic motivation and their performance in two work settings. They argue that intrinsic need satisfaction on the job results in job satisfaction, internalization of external factors, adjustment and high levels of intrinsic motivation, which in turn leads to enhanced work performance (Baard et al., 2004). As a result, satisfaction of the basic psychological needs tends to be the basis of the positive link between intrinsic motivation and work performance (Baard et al., 2004). Black and Deci (2000) support this suggestion by showing that, in an educational environment, autonomy support is positively related to students’ course performance. Deci and Ryan (2008b) state that this link also holds for the work environment by showing higher performance ratings for employees in an autonomy supportive work environment. Thus, facilitated need satisfaction tends to result in enhanced intrinsic motivation, which in turn predicts better work performance (Baard et al., 2004).

Summary of Chapters

1. Introduction: Outlines the research scope regarding motivation and work performance and identifies the research gap addressed by this study.

2. Theoretical Background: Establishes the framework using Self-Determination Theory and defines the core constructs of intrinsic and extrinsic motivation alongside work performance.

3. Discussion: Synthesizes the findings to provide theoretical insights and practical recommendations for organizational management while noting research limitations.

Keywords

Intrinsic motivation, Extrinsic motivation, Work performance, Self-Determination Theory, Incentive contingency, Psychological needs, Autonomy, Performance type, Undermining effect, Employee engagement, Pay-for-performance, Management, Motivation-performance link, Organizational behavior, Job satisfaction.

Frequently Asked Questions

What is the core subject of this thesis?

The thesis examines the relationship between intrinsic motivation, extrinsic incentives, and their combined effect on employee work performance within an organizational context.

What are the central thematic fields?

The central fields include management, psychology, and organizational behavior, specifically focusing on motivational theories and performance management.

What is the primary research goal?

The primary goal is to close the research gap regarding the impact of intrinsic motivation on performance and to critically analyze how intrinsic and extrinsic factors interact.

Which scientific methodology is employed?

This work is a literature-based thesis that conducts a theoretical analysis and synthesis of existing academic journal articles, books, and studies, including meta-analyses.

What is covered in the main section?

The main section details the Self-Determination Theory, defines core motivational constructs, discusses individual and joint effects on performance, and evaluates theoretical and practical implications.

What are the defining keywords of the work?

Key terms include intrinsic and extrinsic motivation, Self-Determination Theory, work performance, incentive contingency, and psychological need satisfaction.

What is the "undermining effect" discussed in the text?

The undermining effect describes the phenomenon where the introduction of tangible, controlling extrinsic rewards can decrease an individual's pre-existing intrinsic motivation for a task.

How does performance type moderate the effects of motivation?

The text notes that intrinsic motivation is more strongly linked to quality-based and complex tasks, whereas extrinsic motivation is often more effective for algorithmic, quantity-based tasks.

Fin de l'extrait de 29 pages  - haut de page

Résumé des informations

Titre
The Effects of Intrinsic Motivation and Extrinsic Incentives on Employee Performance
Université
University of Mannheim
Note
1,3
Auteur
Jan U. (Auteur)
Année de publication
2016
Pages
29
N° de catalogue
V1034846
ISBN (ebook)
9783346442277
ISBN (Livre)
9783346442284
Langue
anglais
mots-clé
Motivation incentives Führung intrinsic intrinsisch extrinsisch extrinsic
Sécurité des produits
GRIN Publishing GmbH
Citation du texte
Jan U. (Auteur), 2016, The Effects of Intrinsic Motivation and Extrinsic Incentives on Employee Performance, Munich, GRIN Verlag, https://www.grin.com/document/1034846
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