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Extrinsic vs. Intrinsic Rewards for Performance


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Posted by Yogesh Malhotra on March 26, 1998 at 23:20:10:

In Reply to: Sharing rewards posted by Denham on March 26, 1998 at 11:54:02:

Denham & Robbert, this is an interesting area. What seems to happen is thus: Rewards and incentive schemes provide a temporary 'carrot' for delivering 'what needs to be done.' However, problems that may occur with this logic include:

- one may like a different [bigger] 'carrot' or perhaps loose the taste for the 'carrot'

- one may realize that one really doesn't care much about the 'carrot' but about something else that is of greater personal relevance...

- 'what needs to be done' may not be the 'best thing that should be done' however that is what gets accomplished because it gets the 'carrot'... it may very well happen it may not the most desirable solution... or may even be detrimental to the long term interests given the changing contexts...

- rewards -- if given too often and too easily -- may loose their meaning or significance as rewards... and may become 'what is generally expected'

Some related links on such issues may be accessed by clicking on the following hyperlink:

http://www.brint.com/c gi-bin/tank.cgi?PA=intrinsic+motivation

Another point that comes to mind is from examples of major development efforts such as Windows95 in which software developers, maintainers and testers work round-the-clock, sleep under their office tables, may often sacrifice personal relationships (such as marriage), and develop ulcers and other health problems for ignoring their health [Details as recalled from a Wall Street Journal story and a Wired story on 'Micro-serfs'].

On the other hand, one recalls top executives giving everything away suddenly for taking care of their lives and their families... one is reminded of the stories of top execs of Coca Cola, Disney, etc., that are often recounted in the WSJ columns on career concerns...


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