The puzzle of reward.
In the 21st century, extrinsic rewards have proved to lead to poorer performance at the end of it all. Extrinsic rewards are rewards like money or gifts for doing some work. Why do we say it leads to poor performance in the 21st century?
Extrinsic rewards work well for ’20th century tasks’ -with manual work and simple solutions. The rewards narrows focus towards the answer, and pushes people to solve them quickly. For simple mechanical tasks, reward improves performance but if any kind of cognitive function is required, reward decreases performance.
As a leader or someone aspiring to be creative and great, you should lean more towards intrinsic motivation- the desire to do more for personal reasons. Intrinsic rewards revolve around:
1. Autonomy- The desire to direst our own lives.
2. Mastery – The urge to get better, develop skills.
2. Purpose – The need to do what we do for reasons bigger than ourselves.