Business – 2.2 Motivation – Methods in practice | e-Consult
2.2 Motivation – Methods in practice (1 questions)
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Answer:
Comparison
- Intrinsic motivation derives from internal satisfaction – autonomy, mastery, purpose. In a tech start‑up, developers often enjoy problem‑solving, creative coding, and seeing their product impact users.
- Extrinsic motivation relies on external rewards – bonuses, equity, public recognition, or deadlines. Start‑ups use these to drive short‑term milestones and align individual effort with business goals.
Effectiveness
- Intrinsic drives sustained engagement, higher quality work, and lower turnover, especially when tasks are complex and require creativity.
- Extrinsic can accelerate performance on specific deliverables, provide clear metrics, and align personal gain with company success (e.g., stock options).
- Over‑reliance on extrinsic rewards may undermine intrinsic drive (the “overjustification effect”), causing team members to focus on rewards rather than learning.
- Purely intrinsic approaches may lack the urgency needed for rapid product releases or investor milestones.
Recommendations for balancing both approaches
- Implement a dual‑track reward system: combine regular performance‑based bonuses (extrinsic) with autonomy‑granting practices such as “20% time” for personal projects (intrinsic). This ensures financial incentives while preserving creative freedom.
- Use recognition tied to purpose: publicly celebrate achievements that directly contribute to the start‑up’s mission (e.g., “launching a feature that improves user accessibility”). This links extrinsic acknowledgment to intrinsic meaning, reinforcing both motivation types.
By integrating these strategies, a start‑up can harness the long‑term benefits of intrinsic motivation while meeting the short‑term performance pressures typical of early‑stage ventures.