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The extrinsic incentives bias is an attributional bias according to which people attribute relatively more to "extrinsic incentives" (such as monetary reward) than to "intrinsic incentives" (such as learning a new skill) when weighing the motives of others rather than themselves.
It is a counter-example to the fundamental attribution error as according to the extrinsic bias others are presumed to have situational motivations while oneself is seen as having dispositional motivations. This is the opposite of what the fundamental attribution error would predict. It also might help to explain some of the backfiring effects that can occur when extrinsic incentives are attached to activities that people are intrinsically motivated to do. The term was first proposed by Chip Heath, citing earlier research by others in management science. [1]
In the simplest experiment Heath reported, MBA students were asked to rank the expected job motivations of Citibank customer service representatives. Their average ratings were as follows:
Actual customer service representatives rank ordered their own motivations as follows:
The order of the predicted and actual reported motivations was nearly reversed; in particular, pay was rated first by others but near last for respondents of themselves. Similar effects were observed when MBA students rated managers and their classmates. [1]
Heath suggests trying to infer others' motivations as one would by inferring one's own motivations. [1]
In general, incentives are anything that persuade a person to alter their behavior in the desired manner. It is emphasized that incentives matter by the basic law of economists and the laws of behavior, which state that higher incentives amount to greater levels of effort and therefore higher levels of performance.
Content theory is a subset of motivational theories that try to define what motivates people. Content theories of motivation often describe a system of needs that motivate peoples' actions. While process theories of motivation attempt to explain how and why our motivations affect our behaviors, content theories of motivation attempt to define what those motives or needs are. Content theory includes the work of David McClelland, Abraham Maslow and other psychologists.
Personnel economics has been defined as "the application of economic and mathematical approaches and econometric and statistical methods to traditional questions in human resources management". It is an area of applied micro labor economics, but there are a few key distinctions. One distinction, not always clearcut, is that studies in personnel economics deal with the personnel management within firms, and thus internal labor markets, while those in labor economics deal with labor markets as such, whether external or internal. In addition, personnel economics deals with issues related to both managerial-supervisory and non-supervisory workers.
The overjustification effect occurs when an expected external incentive such as money or prizes decreases a person's intrinsic motivation to perform a task. Overjustification is an explanation for the phenomenon known as motivational "crowding out". The overall effect of offering a reward for a previously unrewarded activity is a shift to extrinsic motivation and the undermining of pre-existing intrinsic motivation. Once rewards are no longer offered, interest in the activity is lost; prior intrinsic motivation does not return, and extrinsic rewards must be continuously offered as motivation to sustain the activity.
Self-determination theory (SDT) is a macro theory of human motivation and personality that concerns people's innate growth tendencies and innate psychological needs. It pertains to the motivation behind people's choices in the absence of external influences and distractions. SDT focuses on the degree to which human behavior is self-motivated and self-determined.
Motivation crowding theory is the theory from psychology and microeconomics suggesting that providing extrinsic incentives for certain kinds of behavior—such as promising monetary rewards for accomplishing some task—can sometimes undermine intrinsic motivation for performing that behavior. The result of lowered motivation, in contrast with the predictions of neoclassical economics, can be an overall decrease in the total performance.
The desire to learn is often related to the concept of ‘motivation’. Motivation is the most used concept for explaining the failure or success of a language learner. Second language (L2) refers to a language an individual learns that is not his/her mother tongue, but is of use in the area of the individual. It is not the same as a foreign language, which is a language learned that is not generally spoken in the individual's area. In research on motivation, it is considered to be an internal process that gives behavior energy, direction and persistence in research . Learning a new language takes time and dedication. Once one does, being fluent in a second language offers numerous benefits and opportunities. Learning a second language is exciting and beneficial at all ages. It offers practical, intellectual and many aspirational benefits. In learning a language, there can be one or more goals – such as mastery of the language or communicative competence – that vary from person to person. There are a number of language learner motivation models that were developed and postulated in fields such as linguistics and sociolinguistics, with relations to second-language acquisition in a classroom setting. The different perspectives on L2 motivation can be divided into three distinct phases: the social psychological period, the cognitive-situated period and the process-oriented period.
Managerial psychology is a sub-discipline of industrial and organizational psychology that focuses on the effectiveness of individuals and groups in the workplace, using behavioral science.
Determination is a positive emotional feeling that promotes persevering towards a difficult goal in spite of obstacles. Determination occurs prior to goal attainment and serves to motivate behavior that will help achieve one's goal.
Incentivisation or incentivization is the practice of building incentives into an arrangement or system in order to motivate the actors within it. It is based on the idea that individuals within such systems can perform better not only when they are coerced but also when they are given rewards.
Goal orientation, or achievement orientation, is an "individual disposition towards developing or validating one's ability in achievement settings". In general, an individual can be said to be mastery or performance oriented, based on whether one's goal is to develop one's ability or to demonstrate one's ability, respectively. A mastery orientation is also sometimes referred to as a learning orientation.
Compensation and benefits (C&B) is a sub-discipline of human resources, focused on employee compensation and benefits policy-making. While compensation and benefits are tangible, there are intangible rewards such as recognition, work-life and development. Combined, these are referred to as total rewards. The term "compensation and benefits" refers to the discipline as well as the rewards themselves.
Warm-glow giving is an economic theory describing the emotional reward of giving to others. According to the original warm-glow model developed by James Andreoni, people experience a sense of joy and satisfaction for "doing their part" to help others. This satisfaction - or "warm glow" - represents the selfish pleasure derived from "doing good", regardless of the actual impact of one's generosity. Within the warm-glow framework, people may be "impurely altruistic", meaning they simultaneously maintain both altruistic and egoistic (selfish) motivations for giving. This may be partially due to the fact that "warm glow" sometimes gives people credit for the contributions they make, such as a plaque with their name or a system where they can make donations publicly so other people know the "good" they are doing for the community.
Work motivation is a person's internal disposition toward work. To further this, an incentive is the anticipated reward or aversive event available in the environment. While motivation can often be used as a tool to help predict behavior, it varies greatly among individuals and must often be combined with ability and environmental factors to actually influence behavior and performance. Results from a 2012 study, which examined age-related differences in work motivation, suggest a "shift in people's motives" rather than a general decline in motivation with age. That is, it seemed that older employees were less motivated by extrinsically related features of a job, but more by intrinsically rewarding job features. Work motivation is strongly influenced by certain cultural characteristics. Between countries with comparable levels of economic development, collectivist countries tend to have higher levels of work motivation than do countries that tend toward individualism. Similarly measured, higher levels of work motivation can be found in countries that exhibit a long versus a short-term orientation. Also, while national income is not itself a strong predictor of work motivation, indicators that describe a nation's economic strength and stability, such as life expectancy, are. Work motivation decreases as a nation's long-term economic strength increases. Currently work motivation research has explored motivation that may not be consciously driven. This method goal setting is referred to as goal priming. Effects of primed subconscious goals in addition to goals that are consciously set related to job performance have been studied by Stajkovic, Latham, Sergent, and Peterson, who conducted research on a CEO of a for-profit business organization using goal priming to motivate job performance. Goal priming refers to the achievement of a goal by external cues given. These cues can affect information processing and behaviour the pursuit of this goal. In this study, the goal was primed by the CEO using achievement related words strategy placed in emails to employees. This seemingly small gesture alone not only cost the CEO very little money, but it increased objectively measured performance efficiency by 35% and effectiveness by 15% over the course of a 5-day work week. There has been controversy about the true efficacy of this work as to date, only four goal priming experiments have been conducted. However, the results of these studies found support for the hypothesis that primed goals do enhance performance in a for-profit business organization setting.
Employee motivation is an intrinsic and internal drive to put forth the necessary effort and action towards work-related activities. It has been broadly defined as the "psychological forces that determine the direction of a person's behavior in an organisation, a person's level of effort and a person's level of persistence". Also, "Motivation can be thought of as the willingness to expend energy to achieve a goal or a reward. Motivation at work has been defined as 'the sum of the processes that influence the arousal, direction, and maintenance of behaviors relevant to work settings'." Motivated employees are essential to the success of an organization as motivated employees are generally more productive at the work place.
Reward management is concerned with the formulation and implementation of strategies and policies that aim to reward people fairly, equitably and consistently in accordance with their value to the organization.
The 3H-model of motivation was developed by professor Hugo M. Kehr, PhD., at UC Berkeley. The 3C-model is an integrative, empirically validated theory of motivation that can be used for systematic motivation diagnosis and intervention.
Intrinsic motivation in the study of artificial intelligence and robotics is a mechanism for enabling artificial agents to exhibit inherently rewarding behaviours such as exploration and curiosity, grouped under the same term in the study of psychology. Psychologists consider intrinsic motivation in humans to be the drive to perform an activity for inherent satisfaction – just for the fun or challenge of it.
Employee motivation, also known as work motivation, is a feature of employees that refers to how motivated they are to work. It has a significant impact on employee productivity and efficiency." While motivation is defined as why individuals do or participate in certain behaviors.