Cognitive Evaluation Theory

Introduction:
Historically, motivation theorists generally assumed that intrinsic rewards
such as interesting work were dependent on extrinsic rewards such as pay. But
cognition evaluation theory suggest otherwise it argues that when extrinsic
rewards are used by organizations as payoffs for superior performance then the
intrinsic rewards that are derived from person’s will that what they want to do are
reduced.

Explanation:
Cognitive Evaluation Theory suggests that there are actually two
motivation systems:

1. Intrinsic
2. Extrinsic
They correspond to two kinds of motivators:

1. Intrinsic Motivators:
Achievement, responsibility and competence are considered as
intrinsic motivators. Motivators that come from the actual performance of
the task or job i.e. the intrinsic interest of the work.

2. Extrinsic Motivators:
Pay, promotion, feedback, working conditions are considered as
extrinsic motivators things that come from a person's environment,
controlled by others. Anyone of these may be a more powerful motivator
for a person.

Intrinsically motivated people perform for their own achievement

and satisfaction. If they come to believe that they are doing some job
because of the pay or the working conditions or some other extrinsic
reason, they begin to lose motivation.

The presence of powerful extrinsic motivators can actually reduce a

person's intrinsic motivation, particularly if the extrinsic motivators are
perceived by the person to be controlled by people. In other words, a boss
 who is always dangling this reward or that stick will turn off the intrinsically
motivated people.

Managerial Implications:
It is commonly thought that an employees salary should be related
to his performance but if Cognitive theory holds then there is an important
implication for managers that salaries (extrinsic motivators) should not be linked
with performance (Intrinsic motivators) because this will decrease the interest of
employee in work.

Criticism:
1. Methodology used and interpretations made in the theory are subject to
further clarifications because research was carried on students not on paid
organizational employees.
2. In the real world, when extrinsic rewards are stopped, it usually means the
individual is no longer part of the organization.

Conclusion:
Apart from all criticisms evidence suggests that intrinsic and extrinsic
rewards are interdependent naturally. So it can be used in organizations but its
more effectively applicable on those jobs which fall between the level of extreme
Interest and extreme dullness.