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.
Table of Contents
1. Status quo
2. Theoretical Framework and Core Constructs
2.1. Self-Determination Theory
2.2. Intrinsic Motivation
2.3. Extrinsic Motivation
2.4. Work Performance
3. Evidence
3.1. The Effect of Intrinsic Motivation on Work Performance
3.2. The Effect of Extrinsic Motivation on Work Performance
3.3. The Interaction Effect and the Joint Impact on Work Performance
3.4. Related Constructs
4. Recommendations
4.1. Intrinsic Incentives
4.2. Extrinsic Incentives
Objectives and Core Topics
This paper aims to investigate the complex interplay between intrinsic and extrinsic motivation and their specific effects on work performance within the R&D environment, ultimately providing actionable recommendations for BMW to optimize its incentive structures.
- Theoretical foundations of Self-Determination Theory (SDT) in the workplace.
- Distinct effects of intrinsic versus extrinsic motivation on performance outcomes.
- Interaction effects and the potential undermining of intrinsic motivation by extrinsic rewards.
- Contextual analysis of motivational strategies within R&D departments.
- Practical management recommendations for enhancing employee performance at BMW.
Excerpt from the Book
3.1. The Effect of Intrinsic Motivation on Work Performance
As stated earlier, intrinsic motivation comprises behaviours that are engaged in for their own sake, as the activity itself is perceived to be interesting or enjoyable (Deci & Ryan, 2008a). The effects of intrinsic motivation on major business outcomes have been widely studied in the prevailing literature. Thus, positive effects on satisfaction or well-being have been validated (Ilardi, Leone, Kasser & Ryan, 1993). However, the focus of this work is on work performance.
One of the earliest studies that validates the link between intrinsic motivation and performance is the study by Kasser, Davey and Ryan (1992). They show that supervisor ratings of employees’ intrinsic motivation reliably predict their future performance in a psychiatric rehabilitation setting (Kasser et al., 1992). Confirming the importance of the SDT, they base their results on the psychological need satisfaction (Kasser et al., 1992).
Baard et al. (2004) confirm that this positive link between intrinsic motivation and work performance also holds within an organizational environment. They show that managers’ autonomy support, characterized by an interpersonal climate and managerial functions, such as decision making or work planning, promotes the employees’ intrinsic need satisfaction, which in turn has a medium, positive effect on their performance evaluations (Baard et al., 2004).
Summary of Chapters
1. Status quo: Introduces the research context and highlights the challenges of motivating R&D specialists while defining the paper's scope.
2. Theoretical Framework and Core Constructs: Establishes the foundation of the discussion using Self-Determination Theory and defines the essential constructs of motivation and work performance.
3. Evidence: Examines empirical findings regarding the effects of intrinsic and extrinsic motivation, their interaction, and related psychological constructs.
4. Recommendations: Translates the theoretical evidence into practical management strategies for BMW to foster both intrinsic and extrinsic motivation effectively.
Keywords
Motivation, Work Performance, Self-Determination Theory, Intrinsic Motivation, Extrinsic Motivation, R&D Environment, Psychological Need Satisfaction, Incentives, Cognitive Evaluation Theory, Autonomy, Performance Quality, Performance Quantity, Empowering Leadership, Creativity, Goal-Setting.
Frequently Asked Questions
What is the primary focus of this paper?
The paper examines how different types of motivation influence work performance, specifically focusing on the R&D sector and providing practical recommendations for companies like BMW.
What are the key themes addressed in the work?
Central themes include the distinction between intrinsic and extrinsic motivation, the role of psychological needs, the impact of incentives, and the moderating effects of task characteristics.
What is the research goal?
The main goal is to clarify how intrinsic and extrinsic motivational factors can be balanced to maximize performance in research and development environments.
Which scientific method is employed?
This is a literature-based study that synthesizes findings from various empirical meta-analyses and seminal studies in organizational psychology.
What is covered in the main section of the paper?
The main section evaluates existing evidence on the individual and joint effects of intrinsic and extrinsic motivation on various performance criteria.
Which keywords best characterize the study?
Key terms include Self-Determination Theory, R&D management, intrinsic and extrinsic motivation, and work performance.
How does extrinsic motivation affect intrinsic motivation in this context?
The paper discusses the "undermining effect," where certain expected, controlling extrinsic rewards can decrease intrinsic interest, though this depends on how the rewards are perceived.
What specific advice is offered to BMW?
The author recommends that BMW should adopt a dual strategy: fostering autonomy-supportive environments for intrinsic motivation while using carefully designed, non-controlling extrinsic rewards for performance-related tasks.
- Citation du texte
- Jan U. (Auteur), 2018, Motivation and Work Performance. The Effects of Intrinsic and Extrinsic Motivation on Work Performance, Munich, GRIN Verlag, https://www.grin.com/document/1034849
