Extrinsic Reward vs. Intrinsic Reward

Attribute	Extrinsic Reward	Intrinsic Reward
Motivation	External factors drive behavior	Internal factors drive behavior
Source	Comes from outside the individual	Comes from within the individual
Examples	Money, prizes, awards	Enjoyment, satisfaction, personal growth
Longevity	May not be sustainable in the long term	More likely to be sustainable over time

Definition of Extrinsic Reward

Extrinsic rewards are tangible rewards given to individuals by someone else as a result of their performance or behavior. These rewards are external to the task or activity itself and are typically provided as a form of motivation or reinforcement. Examples of extrinsic rewards include bonuses, promotions, praise, and recognition.

Definition of Intrinsic Reward

Intrinsic rewards, on the other hand, are internal rewards that come from within the individual. These rewards are derived from the satisfaction and enjoyment that a person experiences while performing a task or activity. Intrinsic rewards are often associated with feelings of accomplishment, mastery, and personal growth.

Motivation

Extrinsic rewards are often used to motivate individuals to achieve specific goals or objectives. These rewards can be effective in encouraging desired behaviors and increasing performance levels in the short term. However, research has shown that over-reliance on extrinsic rewards can lead to a decrease in intrinsic motivation over time.

In contrast, intrinsic rewards are more sustainable and can lead to long-term motivation and engagement. When individuals find personal meaning and fulfillment in their work, they are more likely to be intrinsically motivated to perform at their best. Intrinsic rewards can also foster a sense of autonomy and self-determination, which are important factors in maintaining motivation.

Impact on Performance

Extrinsic rewards can have a positive impact on performance, especially in tasks that are repetitive or uninteresting. By offering external incentives, organizations can encourage employees to meet specific targets and achieve desired outcomes. However, research has shown that extrinsic rewards may not always lead to improved performance, especially in tasks that require creativity, problem-solving, or critical thinking.

Intrinsic rewards, on the other hand, have been found to have a more significant impact on performance, particularly in tasks that are complex or require higher-order thinking skills. When individuals are intrinsically motivated, they are more likely to be creative, innovative, and persistent in their efforts to achieve goals. Intrinsic rewards can also lead to higher levels of job satisfaction and overall well-being.

Psychological Effects

Extrinsic rewards can have unintended consequences on an individual's psychological well-being. When individuals are solely focused on external rewards, they may experience feelings of pressure, stress, and anxiety. This can lead to a decrease in job satisfaction, burnout, and disengagement from work. Additionally, extrinsic rewards may undermine intrinsic motivation and diminish the enjoyment that individuals derive from their work.

Intrinsic rewards, on the other hand, have positive psychological effects on individuals. When individuals experience intrinsic rewards, they are more likely to feel a sense of purpose, fulfillment, and satisfaction in their work. This can lead to higher levels of engagement, commitment, and resilience in the face of challenges. Intrinsic rewards also promote a sense of personal growth and development, which can enhance overall well-being.

Long-Term Effects

Extrinsic rewards are often used as a short-term solution to motivate individuals and achieve specific outcomes. While extrinsic rewards can be effective in the short term, they may not lead to sustained performance improvements or long-term behavior change. In some cases, individuals may become dependent on external rewards and lose intrinsic motivation to perform tasks.

Intrinsic rewards, on the other hand, have lasting effects on individuals' behavior and performance. When individuals are intrinsically motivated, they are more likely to engage in tasks willingly, persist in the face of challenges, and seek opportunities for growth and development. Intrinsic rewards can lead to a sense of mastery, autonomy, and competence, which are essential for long-term success and well-being.