Cognitive Evaluation Theory
- Allocating extrinsic rewards for behavior that had been previously intrinsically rewarding tends to decrease the overall level of motivation.
- Historically, motivation theories generally assumed that intrinsic motivations such as achievement, responsibilities and competence were independent of extrinsic motivators such as high pay, promotions, good supervisor relations and pleasant working condition.
- Cognitive evaluation theory argues that when extrinsic rewards are used by organization as payoffs for superior performance, the intrinsic rewards, which are derived from individuals doing what they like, are reduced.
- When extrinsic rewards are given to someone for performing an interesting task, it causes intrinsic interest, itself to decline.
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