Focus first on intrinsic and then on extrinsic motivation

Management 3.0 Module: Rewards & Incentives

How can we incentivize performance? How can we reward people for work they’ve done? More importantly how do we increase intrinsic motivation, instead of the more unreliable extrinsic motivation that rapidly fades away.

Rewarding people based on one measurement does not improve organizational performance.

There’s no doubt we have a lot to do to change incentive programs because they do nothing to incentivize creativity or innovation and tying rewards to accomplishments or numbers does not improve overall performance.

But we still want to reward our teams. And motivate them!

The Rewards & Incentives module is focused on understanding the difference between intrinsic and extrinsic motivation and it looks at how we can exploit the former. The module teaches us how to relate people’s work and roles to purpose, mastery and freedom.

Intrinsic motivation: Behavior that is triggered from within a person. In other words, the person is rewarding herself.

Extrinsic motivation: Behavior that is driven by external rewards (given by others), such as money, grades, and praise.

Read on about intrinsic motivation and play Moving Motivators

Management 3.0 Energizing People Workshop

This module is part of the Energizing People Workshop.

Six Rules for Rewards

1.Don’t promise rewards in advance.
Give rewards at unexpected times so that people don’t change their intentions and focus on the reward.

2. Keep anticipated rewards small.
You cannot always prevent people from anticipating rewards. But this may be harmless when the rewards are small.

3. Reward continuously, not just once.
Every day can be a day to celebrate something. Every day is an opportunity for a reward.

4. Reward publicly, not privately.
Everyone should know what work is appreciated and why. A regular public reminder works better than a private one.

5. Reward behaviors, not only outcomes.
Outcomes can often be achieved through shortcuts while behavior is about hard work and effort.

6. Reward peers, not only subordinates.
Peers often know better than managers which of their colleagues deserve a compliment.

Which of our Management 3.0 Practice checks off each point above? Kudos of course! This is an easy way to offer small rewards based on public peer-to-peer-recognition. Get your own deck of Kudo Cards!


Martie Management 3.0

Learn more about How to Energize People in the Management 3.0 Foundation Module Motivation and Engagement.

Have you already tried these Management 3.0 Tools & Practices?

Serious Games & Leadership Practices