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Self-Determination Theory

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Sansone & Harackiewicz (2000). He also mentioned that pay structure in retail business gives a motivation to salesperson to sell the products as much as possible without taking care of methods or principles of selling. Thus, it shows that incentive programs may promote dishonest or deceptive behavior both for employees and managers. Besides, Blumberg (1991) also argued that employees who are engaged in deceitful practices are likely to mention that it was the structure of rewards that forced them to behave against their inner values and that they did not personally consent.
Despite, non-positive consequences of contingent extrinsic rewards in the nowadays business world, that rewards are the main natural outcomes of work. Even when workers …show more content…
This view is related to the studies about the consequences of rewards on individual’s motivation (Ryan, Kasser, Sheldon & Deci 1996). From this viewpoint, the basic psychological needs for autonomy, relatedness, and competence are expected to be directly met by intrinsic strivings and goals (Deci & Ryan 1991; Ryan 1995). Those inner psychological needs are the assumed source of a genuine sense of personal welfare or eudaimonia (Ryan & Deci 1995; Ryff 1995; Waterman 1993). In contradiction, strong emphasis on reaching extrinsic aims and rewards such as bonuses, social recognition, and status can meet these basic needs indirectly and may truly distract from their implementation. Besides, extrinsic strives, when they are predominant priorities, may result in engagement of egoistic behavior of an individual accompanied with stress and pressure (Ryan 1982; Ryan, Koestner, & Deci 1991), which another study indicates to be associated with low level of vitality and well-being rather than self-determined involvement in the task (Nix, Ryan, Manly, & Deci …show more content…
In social psychology, that phenomenon was mentioned as "the corruption effect of extrinsic motivation" or "the hidden costs of reward". This idea was presented in economics by Bruno Frey, who referred to the phrase as "crowding out". A tangible reward will have a bigger crowding-out effect than a symbolic reward. Besides, an expected reward will have more crowding-out effect than an unexpected one. In the case of complex problems the trade-off between reward and accomplishment is stronger than those of simpler problems. That is why a bonus system will mostly - although not always - cause employees to lose their interest in the immediate purpose (e.g. enhanced satisfaction of customer needs). The two follow illustrations below give insight into this

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