Extrinsic Rewards vs. Intrinsic Rewards

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

Definition of Extrinsic Rewards

Extrinsic rewards are tangible rewards given to individuals by someone else as a result of their performance or behavior. These rewards can include bonuses, promotions, salary increases, or even material possessions like cars or vacations. Extrinsic rewards are typically external motivators that encourage individuals to achieve specific goals or outcomes set by others.

Definition of Intrinsic Rewards

Intrinsic rewards, on the other hand, are internal rewards that come from within an individual. These rewards are driven by personal satisfaction, a sense of accomplishment, or the enjoyment of the task itself. Intrinsic rewards are often associated with feelings of pride, fulfillment, or happiness that come from engaging in an activity that is personally meaningful or enjoyable.

Motivation

Extrinsic rewards are often used as a form of motivation in various settings, such as the workplace or in educational environments. These rewards can incentivize individuals to work harder, meet deadlines, or achieve specific targets. However, research has shown that while extrinsic rewards can be effective in the short term, they may not always lead to sustained motivation or long-term engagement.

In contrast, intrinsic rewards are considered to be more powerful motivators because they come from within the individual. When individuals are intrinsically motivated, they are more likely to be engaged, persistent, and creative in their pursuits. Intrinsic rewards can lead to a deeper sense of satisfaction and fulfillment, as individuals are driven by their own values, interests, and passions.

Impact on Performance

Extrinsic rewards can have a significant impact on performance, especially in tasks that are repetitive, mundane, or uninteresting. These rewards can provide a short-term boost in motivation and productivity, as individuals strive to earn the rewards offered to them. However, research has shown that over-reliance on extrinsic rewards can lead to a decrease in intrinsic motivation and a reliance on external incentives to perform well.

Intrinsic rewards, on the other hand, have been found to have a positive impact on performance in the long run. When individuals are intrinsically motivated, they are more likely to be creative, innovative, and persistent in their efforts. Intrinsic rewards can lead to higher levels of job satisfaction, engagement, and overall performance, as individuals are driven by their own internal desires and values.

Psychological Effects

Extrinsic rewards can have both positive and negative psychological effects on individuals. While these rewards can provide a sense of validation, recognition, and accomplishment, they can also lead to feelings of pressure, stress, or dependency on external validation. Individuals who are motivated primarily by extrinsic rewards may experience a decrease in self-esteem or a lack of fulfillment in the absence of rewards.

Intrinsic rewards, on the other hand, have been associated with positive psychological effects, such as increased self-esteem, autonomy, and well-being. When individuals are intrinsically motivated, they are more likely to experience a sense of personal growth, mastery, and fulfillment in their pursuits. Intrinsic rewards can lead to a greater sense of purpose, meaning, and satisfaction in one's work or activities.

Long-Term Effects

Extrinsic rewards are often used as a short-term strategy to motivate individuals to achieve specific goals or outcomes. While these rewards can be effective in the short term, they may not always lead to sustained motivation or long-term engagement. In some cases, individuals may become dependent on external rewards and lose their intrinsic motivation to perform well.

Intrinsic rewards, on the other hand, have been found to have long-lasting effects on individuals' motivation, engagement, and performance. When individuals are intrinsically motivated, they are more likely to be persistent, creative, and resilient in the face of challenges. Intrinsic rewards can lead to a deeper sense of satisfaction, fulfillment, and well-being that can sustain individuals over the long term.

Conclusion

In conclusion, both extrinsic and intrinsic rewards play a significant role in motivating individuals and influencing their performance. Extrinsic rewards can provide external incentives that encourage individuals to achieve specific goals or outcomes, while intrinsic rewards come from within the individual and are driven by personal satisfaction, fulfillment, and enjoyment. While extrinsic rewards can be effective in the short term, they may not always lead to sustained motivation or long-term engagement. In contrast, intrinsic rewards have been found to have a more lasting impact on individuals' motivation, engagement, and performance, as they are driven by personal values, interests, and passions.