Extrinsic rewards undermine intrinsic motivation when the task is of high interest , when the rewards are tangible and offered beforehand.
Intrinsic motivation is when we are inspired by personal satisfaction or pleasure rather than by external factors such as rewards or punishments. There are ways to motivate tasks more intrinsically. Extrinsic rewards can undermine intrinsic motivation when used in specific situations or when used frequently.
Rewarding behaviors that are already intrinsically motivated can erode the value of the reward. Some people may even view external reinforcement as coercion or bribery.
Experts are split up on whether extrinsic rewards have a positive or negative effect on intrinsic motivation, but recent research suggests that rewarding early in a task actually increases intrinsic motivation. Researchers examined how the timing of rewards affects intrinsic motivation.
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