Designing Reward Systems: Intrinsic vs Extrinsic Motivation Quiz Quiz

Explore the fundamentals of designing reward systems by differentiating intrinsic and extrinsic motivation, understanding their applications, and identifying effective strategies for optimal performance. This quiz is tailored for learners and professionals seeking to enhance motivation and improve workplace or educational outcomes.

1. Understanding Intrinsic Motivation

   Which of the following is the best example of intrinsic motivation in a workplace setting?

   1. An employee completes a challenging project for personal satisfaction.
   2. An employee tries to meet a quota to avoid a penalty.
   3. An employee works overtime to receive a financial bonus.
   4. An employee attends training only because it is mandatory.

   Explanation: Intrinsic motivation involves engaging in an activity for the inherent enjoyment or personal fulfillment it brings. In this case, the employee is driven by satisfaction from completing a challenging project. The other options represent extrinsic motivation, where actions are driven by external rewards or the avoidance of negative consequences rather than personal satisfaction.

2. Extrinsic Motivation in Education

   A teacher announces that students who read the most books in a month will receive a prize. Which type of motivation is the teacher mainly appealing to?

   1. Extrinsic motivation
   2. External motivetion
   3. Intrinsic movtivation
   4. Instinctual motivation

   Explanation: The teacher is using extrinsic motivation by offering a prize as an external reward for reading, rather than fostering an internal desire to read. 'Intrinsic movtivation' contains a typo and refers to the internal drive, which doesn't match the scenario. 'External motivetion' is a misspelling and is not a formally recognized term, while 'instinctual motivation' relates to basic drives or instincts, which is not applicable here.

3. Long-Term Effects of Rewards

   Which potential drawback can occur when relying too heavily on extrinsic rewards, such as frequent bonuses, to motivate employees?

   1. Employees become less aware of company policies.
   2. Employees will always remain intrinsically motivated.
   3. Employees develop negative habits unrelated to motivation.
   4. Employees may lose interest in the task itself.

   Explanation: Overuse of extrinsic rewards can reduce intrinsic motivation, making employees less interested in the intrinsic value of the task. The second option is incorrect because reliance on extrinsic rewards often undermines intrinsic motivation over time. The third and fourth choices are unrelated to the main psychological impact of reward systems on motivation.

4. Designing a Balanced Reward System

   When designing a reward system to maximize motivation, which approach is generally most effective?

   1. Relying only on negative feedback to encourage improvement.
   2. Combining both intrinsic and extrinsic motivational strategies.
   3. Focusing solely on spontaneous, unstructured praise.
   4. Exclusively using extrinsic rewards for all achievements.

   Explanation: A balanced approach that integrates both intrinsic and extrinsic motivators tends to be most effective in sustaining motivation and performance. Relying only on negative feedback can be demotivating, while using only extrinsic rewards may undermine internal motivation. Spontaneous, unstructured praise can help, but it is not sufficient on its own for a comprehensive reward system.

5. Appropriate Use of Rewards

   Which scenario demonstrates the appropriate use of extrinsic rewards to enhance motivation without undermining intrinsic interest?

   1. Providing a certificate for completing a difficult skill-based course.
   2. Rewarding routine tasks with high-value prizes every time.
   3. Offering daily bonuses for basic attendance.
   4. Giving no feedback or recognition for achievements.

   Explanation: A certificate for a challenging accomplishment recognizes effort without trivializing intrinsic value. Rewarding routine tasks with significant prizes or giving daily bonuses for basic attendance can lessen interest in the tasks themselves. Providing no recognition could lead to feeling unappreciated and lower motivation.