The effects of contingent and noncontingent rewards and controls on intrinsic motivation

Theories of management and work motivation distinguish between two kinds of rewards—extrinsic and intrinsic. Extrinsic rewards are ones such as money and verbal reinforcement which are mediated outside of the person, whereas intrinsic rewards are mediated within the person. We say a person is intrinsically motivated to perform an activity if there is no apparent reward except the activity itself or the feelings which result from the activity. All of the theories of work motivation which consider both kinds of rewards assume that the effects of the two are additive. This paper examines that assumption by reviewing a program of research which investigated the effects of external rewards and controls on intrinsic motivation. It was reported that a person's intrinsic motivation to perform an activity decreased when he received contingent monetary payments, threats of punishment for poor performance, or negative feedback about his performance. Noncontingent monetary payments left intrinsic motivation unchanged, and verbal reinforcements appeared to enhance intrinsic motivation. A cognitive evaluation theory was presented to explain these results, and the theory and results were discussed in relation to management.