1. 20th Century Controversies

2. 20th century
Four controversies dominated research and theory throughout the 20th century
Importance of money as a motivator
The distinction between extrinsic and intrinsic motivation
The causal relationship between job satisfaction and job performance
The importance of participation in decision making as a motivational technique.

3. Money
Job choice literature shows that pay is among the most important that people take into account in seeking and accepting a job offer (Barber & Bretz, 2000).
Engineers concluded that money is the primary incentive for engaging in efficient and effective behavior ( Taylor, 1911).
In the second quarter of 20th century Viteles (1932) showed that money is only one of many motives of the worker.
The primary thing is “wish to enjoy the feeling of worth, recognition, and respect on the part of the others.
HAWTHORNE STUDIES

4. Money
Herzberg (1966) stated that money can have an adverse effect on job dissatisfaction but no effect on job satisfaction.
Both equity and expectancy theories explained how money affects performance as well as job satisfaction.

5. Money
Edward Lawler interested in the influence of money on employees’ behavior.
He presented a model that stated pay is important to the extent it is perceived to be instrumental in satisfying a person’s needs.
Pay motivates employees when it is tied to employees’ perceptions of performance.

6. Money
Pay motivates employees when it is tied to employees’ perceptions of performance.
Thus he argued for employee participation in decision regarding job evaluation
The resulting decision is improved by the infromation contributed by job incumbents.
Because job incumbents are more likely accept decisions if they are involved in making them

7. Money
A zero relationship between job satisfaction and performance is an indicative of poor reward system.
He also concluded satisfaction can be both a cause and a result of performance.

8. Money
Edward Deci claimed that money can kill a person’s intrinsic motivation.
INTRINSIC MOTIVATION: Continuing to perform in the absence of extrinsic rewards.
If extrinsic rewards are excessive that are given for performing tasks that are intrinsically valued are perceived as “controlling” by an individual.
Self determination theory states that when this perception occurs motivation and satisfaction decreases.

9. MONEY
Locke and Latham (1984, 1990) stated that money has no effect on behavior if it does not lead to setting and commitment to the high specific goals.
Bandura (1989) stated that a focus on monetary incentives neglects the affective self-evaluative rewards of goal attaintment

10. MONEY
Rewards that are related to performance increase a person’s performance only if they increase satisfaction with the job, commitment to the organization, and acceptance of future challenges ( Latham, Locke, & Fassina, 2002).
Extrinsic rewards are not inherently demotivating for people- a meta analysis conducted by Cameron (1996).

11. INTRINSIC VERSUS EXTRINSIC MOTIVATION
Emprical research conducted by Michigan’s Survey Research showed that – the use of external sanctions, of pressuring for production may work to some degree but not to the extent that more internalized motive do.

12. INTRINSIC VERSUS EXTRINSIC MOTIVATION
Extrinsic incentives decrease intrinsic motivation because they create the impression for people that their behavior is externally trigered.
This weakens feelings of competence and self determination.
This inference is drawn by studies...

13. INTRINSIC VERSUS EXTRINSIC MOTIVATION
Bandura (1977) argued that there are deficiencies in this reasoning
Motivation is an vague concept.
Identifying the existence of intrinsic motivation is not an easy task.
Deci’s study has a methodological flaw.
How incentives are presented is really important
You will not get any money unless you do X
This is a recognition of doing X
This is what the performance is worth to us
So the pianist does not loose interest in playing the piano just because she is offered high recital fees.

14. INTRINSIC VERSUS EXTRINSIC MOTIVATION
Locke and Latham have also criticized Deci’s conceptualization of intrinsic motivation as well as the inferences he has drawn regarding the negative effects of monetary rewards.
Deci’s study the behavior is the DV
Monetary reward is the IV
However there may be some mediators such as
Feelings of competence and self-determination

15. INTRINSIC VERSUS EXTRINSIC MOTIVATION
Locke and Latham have also criticized Deci’s study
Deci did not distinquish between liking the activity for its own sake and liking it because it makes one feel competent.

16. INTRINSIC VERSUS EXTRINSIC MOTIVATION
Locke and Latham have also criticized Deci’s study
Deci defined intrinsic motivation – as time spent on a task during free time.
This is not relevant for the workplace because ...

17. INTRINSIC VERSUS EXTRINSIC MOTIVATION
Cameron and Pierce (1994) reached following conclusions from the studies they conducted between the years 1971 and 1991.
If a person is rewarded for completing a task – if the reward is stopped then the person turns back to his/her initial performance. BASELINE
When the reward is verbal praise, people spent more time on a task despite the termination of the praise, than they did prior to the introduction of praise in the experiments.

18. INTRINSIC VERSUS EXTRINSIC MOTIVATION
Cameron and Pierce (1994) reached following conclusions from the studies they conducted between the years 1971 and 1991.
People reported that they like the task more after receiving the praise or money.
Reward for high creativity in one task enhances creativity in entirely different task.
The only reliable effect of a reward having a detrimental effect on a person’s performance occurred when an anticipated reward was presented on a single occasion without regard to quality of performance or task completion.

19. INTRINSIC VERSUS EXTRINSIC MOTIVATION
In response to the critics Deci and Ryan (Deci, Koestner, & Ryan, 1999) conducted a meta analytic review of 128 experiments. The primary measure of intrinsic motivation was the degree to which college students of children return to or persist at a target activity during free choice period subsequent to the experimentaş phase.

20. INTRINSIC VERSUS EXTRINSIC MOTIVATION
The results showed that
Tangible rewards had a significant negative effect on intrinsic motivation of interesting task
Participants are ranging from pre-school to college students
Interesting activities are world games, puzzles
Rewards are ranging from dollar bills to marshmallows.

21. INTRINSIC VERSUS EXTRINSIC MOTIVATION
Intrinsic motivation refers to motivation that is driven by an interest or enjoyment in the task itself, and exists within the individual rather than relying on external pressures or a desire for reward. |

22. INTRINSIC VERSUS EXTRINSIC MOTIVATION
Students who are intrinsically motivated are more likely to engage in the task willingly as well as work to improve their skills, which will increase their capabilities. Students are likely to be intrinsically motivated if they:
attribute their educational results to factors under their own control, also known as autonomy
believe they have the skills to be effective agents in reaching their desired goals, also known as self-efficacy beliefs
are interested in mastering a topic, not just in achieving good grades

23. INTRINSIC VERSUS EXTRINSIC MOTIVATION
Extrinsic motivation refers to the performance of an activity in order to attain an outcome, whether or not that activity is also intrinsically motivated. Extrinsic motivation comes from outside of the individual. Common extrinsic motivations are rewards (for example money or grades) for showing the desired behavior, and the threat of punishment following misbehaviour.
Competition is in an extrinsic motivator because it encourages the performer to win and to beat others, not simply to enjoy the intrinsic rewards of the activity. A cheering crowd and the desire to win a trophy are also extrinsic incentives.[7]

24. INTRINSIC VERSUS EXTRINSIC MOTIVATION
Social psychological research has indicated that extrinsic rewards can lead to overjustification and a subsequent reduction in intrinsic motivation. In one study demonstrating this effect, children who expected to be (and were) rewarded with a ribbon and a gold star for drawing pictures spent less time playing with the drawing materials in subsequent observations than children who were assigned to an unexpected reward condition.[8]

25. INTRINSIC VERSUS EXTRINSIC MOTIVATION
While the provision of extrinsic rewards might reduce the desirability of an activity, the use of extrinsic constraints, such as the threat of punishment, against performing an activity has actually been found to increase one's intrinsic interest in that activity.
In one study, when children were given mild threats against playing with an attractive toy, it was found that the threat actually served to increase the child's interest in the toy, which was previously undesirable to the child in the absence of threat.

26. INTRINSIC VERSUS EXTRINSIC MOTIVATION
For those children who received no extrinsic reward, self-determination theory proposes that extrinsic motivation can be internalized by the individual if the task fits with their values and beliefs and therefore helps to fulfill their basic psychological needs.