Negative Effects of Extrinsic Rewards on Intrinsic Motivation: More Smoke Than Fire
A recurring theme in the popular management literature is that extrinsic rewards diminish intrinsic motivation, and this problem is so serious that it can render extrinsic incentives for performance of any kind as ineffective or even counterproductive. This claim has become so commonplace that many managers and employees assume that it is true and that it is proven by decades of academic research.
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