Darla, with my students I emphasize that managers should do what they
can do to make a job intrinsically motivating because intrinsic
motivation should lead to more satisfaction and lower turnover, etc.
However, to effectively direct behavior to specific activities, it is
hard to imagine how one would use intrinsic motivation. For example, if
I want to increase the intrinsic motivation of an individual, I might
look at giving them greater autonomy in how they do their work, or
showing how the work they are doing is making an impact. Presumably,
this would make the task more rewarding in and of itself. This I would
expect to increase satisfaction and reduce turnover and the like.
It is possible that allowing them to work the way they like to would
result in greater output, but I would be more inclined to trust putting
a bonus for achieving a target if my goal was to increase production.
The problem with extrinsic rewards are that people end up doing what
they are rewarded for and not doing what they are not rewarded for.
What often happens is that the people who design the reward systems do a
poor job. Tying executive salaries to stock price seemed like a good
idea until people realized that laying off hundreds of people would
create a bump in the stock's value. The problem wasn't using extrinsic
versus intrinsic rewards, it was using extrinsic rewards poorly.
I suggest to my students that they assess what they are trying to
accomplish and then determine if there are intrinsic solutions. If not,
then move to extrinsic solutions, but make sure you do so with a systems
mentality so that you think about what things people will do in response
and what things they won't do in response. Part of the reason that I
suggest this is because often when you tie extrinsic rewards to
intrinsically rewarding tasks, it tends to ruin the intrinsic reward. I
don't like to think of this as an either/or, but as a contingency
questions of when each is right.
Jeff
Darla Paulson wrote:
> I understand we receive plenty of email, so I will keep this brief. In
> light of what is going on in the world, this is an important
> discussion. Real estate agents are rewarded based on the value of the
> homes that they sell. Workers in the finance industry are rewarded
> based on the dollar values of their sales as well. Executive
> bonuses/stock options often encourage focus on short-term equity
> performance. In these systems, what type of people advance into
> leadership roles? People differ in the extent to which they are
> intrinsically motivated, will those love helping their customers
> advance in these systems? Will those who have the long-run best
> interests of the firm (or who consider the ethical implications of
> their deeds) advance? What is performance?
>
> How do we, as the teachers of the next generation of business leaders,
> teach our students about intrinsic and extrinsic motivation?
>
> Thanks for considering my thoughts.
>
> On Mar 4 2009, John D. Kammeyer-Mueller wrote:
>
>> This is just a small sampling of the literature, but I was thinking
>> of the following reviews that show that performance levels and
>> commitment to goals are higher when rewards are used:
>>
>> Locke, E. A., Shaw, K. N., Saari, L. M., Latham, G.P, (1981). Goal
>> setting and task performance: 1969?-?1980. Psychological Bulletin,
>> 90, 125-152.
>>
>> Locke, E. A., Latham, G. P., & Erez, M. (1988).The determinants of
>> goal commitment. Academy of Management Review, 13, 23-39.
>>
>> Contingent pay also increases performance at the organizational level:
>>
>> Gerhart, B., & Milkovich, G. T. (1990). Organizational differences in
>> managerial compensation and financial performance. Academy of
>> Management Journal, 33, 663-691.
>>
>> And contingent pay is more attractive to good performers and those
>> who are more achievement oriented:
>>
>> Harrison D.A., Virick M., & William S. (1996). Working without a net:
>> time, performance,
>> and turnover under maximally contingent rewards. Journal of Applied
>> Psychology, 81, 33145.
>>
>> Cable D.M., & Judge T.A. 1994. Pay preferences and job search
>> decisions: a personorganization
>> fit perspective. Personnel Psychology, 47, 31748.
>>
>> So, whether intrinsic motivation is affected or not, *performance* is
>> higher when rewards are established for meeting performance goals.
>> For the classic demonstration showing even intrinsic motivation may
>> not be undermined if rewards are presented in the right context:
>>
>> Eisenberger, R., Rhoades, L., & Cameron, J. (1999). Does pay for
>> performance increase or decrease perceived self?-?determination and
>> intrinsic motivation? Journal of Personality and Social Psychology,
>> 77, 1026-1040.
>>
>> The alternative evidence on rewards reducing self-reported motivation
>> found by Deci, Ryan and colleagues is far weaker among college
>> students, and was not found for performance contingent rewards. So,
>> not to put too fine a point on it, the dangers of extrinsic rewards
>> have been amply demonstrated for children finishing puzzles when
>> reward is independent of performance, whereas the benefits of setting
>> rewards for achieving performance targets have been amply
>> demonstrated among working adults.
>>
>> -----Original Message-----
>> From: Organizational Behavior Division Listserv on behalf of Bateman,
>> Thomas
>> Sent: Wed 3/4/2009 4:08 PM
>> To:
OB@AOMLISTS.PACE.EDU
>> Subject: Re: Intrinsic and Extrinsic Motivation
>>
>> May I ask, what sources are discussants in this email stream thinking
>> of when they suggest that the real-world evidence does not support an
>> undermining effect of extrinsic rewards on intrinsic motivation? I
>> also suspect that people often overstate the presumed undermining
>> effect in business applications, but am not sure where the best
>> evidence lies. Thanks...
>>
>> -----Original Message-----
>> From: Organizational Behavior Division Listserv
>> [mailto:
OB@AOMLISTS.PACE.EDU] On Behalf Of John D. Kammeyer-Mueller
>> Sent: Wednesday, March 04, 2009 3:39 PM
>> To:
OB@AOMLISTS.PACE.EDU
>> Subject: Re: Intrinsic and Extrinsic Motivation
>>
>> Although I'm usually loathe to get involved in this sort of
>> discussion, I have to agree with Ed Locke on this issue. Is there any
>> field that has fewer direct consequences for performing well or
>> poorly than education? The system provides guaranteed employment with
>> no measurement of any kind, which means that our education system is
>> often set up around the preferences of teachers independent of the
>> needs of students. Moreover, the evidence for the performance
>> damaging effects of extrinsic rewards in work settings has not been
>> very persuasive, whereas the evidence that concrete measurable goals
>> coupled with appropriate cash incentives can improve performance is
>> abundant.
>>
>> As an example of empirical data specific to this issue, David Figlio
>> and Lawrence Kenn provided an overview of research on incentives and
>> school performance and concluded that student test scores are higher
>> in schools that offer individual financial incentives for teacher
>> performance, especially in schools where parents are unlikely to be
>> involved in student education. In other words, it is the students who
>> are in the most disadvantaged homes who get the most benefit from
>> teacher incentives.
>>
>> Figlio, D.N., & Kenny, L.W. (2007). Individual teacher incentives and
>> student performance. Journal of Public Economics, 91, 901-914.
>>
>>
>> -----Original Message-----
>> From: Organizational Behavior Division Listserv on behalf of Karl
>> Strandberg
>> Sent: Wed 3/4/2009 2:48 PM
>> To:
OB@AOMLISTS.PACE.EDU
>> Subject: Re: Intrinsic and Extrinsic Motivation
>>
>> Edwin, I thought that Martin Evans' article was an important
>> contribution, both to one's understanding of intrinsic, as compared
>> to extrinsic, rewards/motivation.
>>
>> I agree with you that many college/university students are
>> ill-prepared. However, I don't blame all of that on poor teaching or
>> inadequate evaluation systems (of teachers), as, it appears, that you
>> do. And, while I agree that the level of exhibited morality, across
>> our nation, has diminished, I think the problem is far deeper than
>> putting the blame on the teachers. I do hope, however, as it seems
>> that you are suggesting, that teachers put a high value on teaching
>> ethics in each of their classes. The Bernard Madoff case is a prime
>> example of the low level of morality that is being practiced, by
>> many, in our society.
>>
>> Sincerely,
>>
>> Karl Strandberg
>> Lecturer in OB & Leadership
>> California State University Dominguez Hills
>>
>> -------Original Message-------
>>
>> From: Edwin Locke <mailto:
elocke@RHSMITH.UMD.EDU> Date: 3/4/2009
>> 11:21:56 AM
>> To:
OB@AOMLISTS.PACE.EDU
>> Subject: Re: Intrinsic and Extrinsic Motivation
>>
>>
>> In reply to Martin Evans:
>>
>> I don't have a solution for a single best way to motivate teachers,
>> but it is very clear that incompetent teaching is rampant in our
>> culture--students come to college who are virtually illiterate. They
>> cannot write, cannot read (except for 4 letter words--I don't just
>> mean swear words), cannot spell and do not even know basic grammar.
>> And they think cheating is normal and acceptable.
>>
>> The bottom line is that teachers are not properly trained, not
>> properly evaluated, and thanks to the NTU they know that it is almost
>> impossible to get fired.
>>
>> To think that "intrinsic motivation" is going to solve this is like
>> thinking the tooth fairy will change your flat tire.
>>
>> At deepest root all this represents the decline of our culture,
>> especially the gradual destruction of all standards in almost every
>> field.
>>
>> As a minimum we need to insist on much higher standards in our
>> schools and some form of merit system. It is no accident that we are
>> pretty much at the bottom compared to all advanced countries in terms
>> of student competence.
>>
>>
>>
>> Edwin A. Locke
>> Dean's Professor of Leadership and Motivation (Emeritus)
>> Robert H. Smith School of Business
>> 32122 Canyon Ridge Drive
>> Westlake Village, CA 91361
>> 818 706 9361 (in CA) TEL
>> same FAX
>>
elocke@rhsmith.umd.edu <mailto:
elocke@rhsmith.umd.edu>
>>
http://www.rhsmith.umd.edu <http://www.rhsmith.umd.edu/>
>>
http://edwinlocke.com <http://edwinlocke.com/>
>>
>>
>> <http://www.incredimail.com/index.asp?id=109094&rui=104440663>
>>
>