The Interrelationship of Intrinsic and Extrinsic Motivation

Abstract

The article discusses the interrelationship of intrinsic and extrinsic motivation. In many organizations, budget performance is used as the basis for allocating extrinsic rewards while budget motivation is motivation for performance-contingent rewards. The author suggests that intrinsic motivation is not reduced in the presence of performance-contingent extrinsic rewards, as it is a necessary prerequisite for performance-contingent rewards to be motivating. The general assumption of many motivational researchers is that intrinsic and extrinsic motivation are independent of each other. A study is looked at with the purpose of aiding management in resolving performance rewards problems through the context of a budget system.