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The Motivation Crowding Theory
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The Motivation Crowding Theory

Stimulating critical thinking - a loose series on paradoxes

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Alexander Rink
Jan 26, 2024
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Gödel's is a newsletter about interweaving ideas and making decisions under uncertain conditions. I discuss knowledge management, mental models, and supporting Tools for Thought.


A conceptual art piece representing the Motivation Crowding Theory. The image depicts two sides: one side shows a person engaged in an activity purely for joy and satisfaction, characterized by bright, vibrant colors and symbols of happiness and fulfillment. The other side illustrates the same person performing the same task, but surrounded by grey tones and symbols of money and external rewards, depicting a lack of enthusiasm and creativity. The center of the image shows a balance scale, symbolizing the delicate balance between intrinsic and extrinsic motivation. The background is abstract, emphasizing the complex nature of human motivation.

Motivation is critical in driving human behavior, dictating the energy and effort we allocate to various activities. In understanding the intricate dynamics of motivation, one theory that challenges conventional wisdom has emerged - the motivation crowding theory. This theory highlights a paradoxical phenomenon where introducing external incentives or rewards can undermine intrinsic motivation, leaving individuals dissatisfied when the reward fails to align with their perceived value of the activity.

At the core of motivation crowding theory is recognizing that individuals possess intrinsic motivations driven by internal desires, values, and a sense of accomplishment. These inherent motivations contribute to the quantity and quality of effort invested in a task. However, the introduction of external motivators, such as monetary rewards or recognition, can inadvertently shift an individual's focus from intrinsic motivations to extrinsic ones.

The shift towards external motivators can lead to several causes and effects. First, these extrinsic rewards may introduce new expectations that alter the individual's perception of the activity. When an individual initially engages in an activity driven by their intrinsic motivations and sense of enjoyment, adding an external reward may distort their perception of the task. Consequently, the activity is devalued, as the primary focus becomes obtaining the reward rather than the inherent satisfaction derived from the task.

Furthermore, the motivation crowding theory argues that external incentives may deplete a person's sense of autonomy, competence, and relatedness. Autonomy refers to a sense of control and choice in engaging in an activity, while competence relates to belief in one's ability to complete the task. Relatedness encompasses the desire for social connections and interactions associated with the activity. Introducing a reward can undermine these fundamental psychological needs, leading to a decrease in intrinsic motivation.

The dissatisfaction arising from the mismatch between the perceived value of the activity and the reward itself poses significant challenges. Two effects may emerge when individuals perceive the reward as inadequate or incongruous with their efforts. First, there may be a decrease in the effort invested as individuals no longer find it worthwhile to expend additional energy for an underwhelming reward. Second, the quality of the effort may diminish, as individuals may adopt a "minimum effort" mindset to meet the requirements for reward attainment.

To unravel this motivation crowding paradox, researchers have proposed strategies to mitigate its adverse effects. One approach is ensuring that the external rewards align with the individual's intrinsic motivations, values, and effort. By understanding the underlying drivers behind intrinsic motivation, rewards can be appropriately tailored to respect individuals' psychological needs, effectively enhancing inherent motivation rather than undermining it.

Another potential solution involves emphasizing non-controlling and informational aspects of rewards. By framing rewards as feedback mechanisms and sources of information rather than as manipulative tools to control behavior, individuals may perceive them as more compatible with their intrinsic motivations, thus preserving their sense of autonomy and competence.

In conclusion, the motivation crowding theory sheds light on the intricate relationship between intrinsic and extrinsic motivations. It highlights the paradoxical nature of external rewards, which can undermine individuals' intrinsic motivations when the reward fails to match the perceived value of the activity. Understanding the causes and effects of this phenomenon, including the resultant dissatisfaction, is crucial in designing effective motivational strategies that enhance rather than diminish intrinsic motivation.


More paradoxes?


The detrimental effects of extrinsic reinforcement on “Intrinsic motivation,” The Behavior Analyst.


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By Alexander Rink · Launched 3 years ago
Aiming for completeness and consistency is honorable but futile - Gödel’s is a newsletter about interweaving ideas and making decisions under uncertain conditions. I talk about knowledge management, mental models, and supporting Tools for Thought.
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