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INTERDISCIPLINARY JOURNAL OF CONTEMPORARY RESEARCH IN BUSINESS<br />

JUNE 2011<br />

VOL 3, NO 2<br />

Deci 1971, 1972a). Performance-contingent rewards (rewards dependent on the quality of<br />

performance of tasks) or punishments decrease intrinsic motivation (Harackiewicz 1979; Deci<br />

1972b for monetary rewards), and also have a substantial effect on the intrinsic motivation of<br />

those not rewarded because of poor performance (Pritchard, Campbell and Campbell 1977).<br />

Harackiewicz (1979) found that performance-contingent rewards reduced intrinsic motivation<br />

more than task-contingent rewards. The effect of performance-contingent rewards may be<br />

mitigated or exacerbated depending on how the rewards are delivered (Deci et al. 1994; Deci,<br />

Nezleck & Sheinman 1981; Ryan, Mims & Koestner 1983)—Ryan, Mims and Koestner (1983)<br />

argued that performance -contingent rewards may be perceived as either ‘controlling’ or<br />

‘informational’, depending upon how they are administered, and found that controlling rewards<br />

decreased intrinsic motivation more than informational rewards. The studies presented were<br />

designed to investigate whether various reward contingencies (task contingent or performance<br />

contingent) and different types of feedback affected intrinsic motivation. Overall, this<br />

experimental evidence strongly suggests that task-contingent and performance-contingent<br />

rewards decrease intrinsic motivation, while positive feedback enhances it. In many situations,<br />

however, use of external rewards or controls is necessary. The critical question, then, is: how<br />

may rewards and constraints is used to maintain, or even promote, intrinsic motivation? Studies<br />

that address various aspects of this problem conclude that the effect of incentives or sanctions on<br />

recipient behavior may crucially depend upon the nature of interactions with regulators,<br />

particularly those enforcing a sanction or giving a reward. Recipients’ perceptions of agency<br />

staff, and of the wider agency/department, are also likely to influence how they respond to an<br />

incentive or sanction. On the one hand, interactions perceived as informational, and procedures<br />

that give participants choice and encourage them to work out their own strategies and solutions,<br />

may create environments in which incentives will increase motivation. On the other hand,<br />

interactions perceived as threatening and highly controlling of behavior may mean that<br />

incentives work to undermine motivation.<br />

Conceptual framework<br />

The research was carried out based on the factors affecting the Herzberg's Motivation Theory<br />

(Two Factor Theory). This theory is a theory which has been given high significance by many<br />

experts and scholars in the field of job motivation in the last three decades. In the Hertzberg<br />

theory the typical motivation factors include: achievement, recognition for achievement,<br />

responsibility for task, growth, advancement to higher level tasks and interesting job. The typical<br />

hygiene factors also include: quality of supervision, interpersonal relations, salary, and safety,<br />

working conditions and company policies and conditions.<br />

COPY RIGHT © 2011 Institute of Interdisciplinary Business Research 525

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