http://13.50.150.85/index.php?action=history&feed=atom&title=Intrinsic_MotivationIntrinsic Motivation - Revision history2026-07-16T00:21:36ZRevision history for this page on the wikiMediaWiki 1.43.3http://13.50.150.85/index.php?title=Intrinsic_Motivation&diff=100953&oldid=prevS202854: /* Limitations */2021-02-28T21:11:05Z<p><span class="autocomment">Limitations</span></p>
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<tr><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><br></td><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><br></td></tr>
<tr><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>When it comes to fostering intrinsic motivation within project management project leaders get confronted with many difficult decisions and limitations. As stated above, in most cases project leaders need to find a way to create intrinsic motivation in order for the project to be successful. However, under certain circumstances, extrinsic motivation is also indispensable. Motivation should always meet the objectives of the project. The aim is to engender intrinsic motivation per se which ensures a coordinated stakeholder effort in keeping with the projects’ goals and deliverables. But the concept of intrinsic motivation can be limited by stakeholders who are used to working for extrinsic rewards only. It is very difficult to motivate a stakeholder intrinsically, when his goal is to deliver tasks just to be rewarded with extrinsically. If the project leader tells this stakeholder that he needs to achieve his deliverables without any extrinsic rewards, the stakeholder might not be as efficient and goal-driven as he used to be in previous projects.</div></td><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>When it comes to fostering intrinsic motivation within project management project leaders get confronted with many difficult decisions and limitations. As stated above, in most cases project leaders need to find a way to create intrinsic motivation in order for the project to be successful. However, under certain circumstances, extrinsic motivation is also indispensable. Motivation should always meet the objectives of the project. The aim is to engender intrinsic motivation per se which ensures a coordinated stakeholder effort in keeping with the projects’ goals and deliverables. But the concept of intrinsic motivation can be limited by stakeholders who are used to working for extrinsic rewards only. It is very difficult to motivate a stakeholder intrinsically, when his goal is to deliver tasks just to be rewarded with extrinsically. If the project leader tells this stakeholder that he needs to achieve his deliverables without any extrinsic rewards, the stakeholder might not be as efficient and goal-driven as he used to be in previous projects.</div></td></tr>
<tr><td class="diff-marker" data-marker="−"></td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #ffe49c; vertical-align: top; white-space: pre-wrap;"><div>Another limitation is the fact that not everyone can share an immediate passion for a certain project. These kinds of stakeholders are struggling to get started with their tasks and can quickly loose interest in the topic. Or even worse, they might not want to be part of the project team at all. </div></td><td class="diff-marker" data-marker="+"></td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #a3d3ff; vertical-align: top; white-space: pre-wrap;"><div> </div></td></tr>
<tr><td class="diff-marker" data-marker="−"></td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #ffe49c; vertical-align: top; white-space: pre-wrap;"><div>Furthermore, the so called “overjustification effect” is another limit when it comes to intrinsic motivation. An example for that is a stakeholder in aircraft wing engineering project who enjoys optimizing aircraft wing production processes in order to achieve a higher wing quality. He gets motivated intrinsically by the challenge to find ways to optimize current processes. If that engineer gets asked to be part of a project team in a wing optimization project, he is going to have to deliver results at certain deadlines. The engineers’ motivation could be limited by the fact that he is given instructions to fulfil is enjoyable tasks. That would lead to limiting his creativity and his full potential can’t be exploited.</div></td><td class="diff-marker" data-marker="+"></td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #a3d3ff; vertical-align: top; white-space: pre-wrap;"><div>Another limitation is the fact that not everyone can share an immediate passion for a certain project. These kinds of stakeholders are struggling to get started with their tasks and can quickly loose interest in the topic. Or even worse, they might not want to be part of the project team at all.</div></td></tr>
<tr><td colspan="2" class="diff-side-deleted"></td><td class="diff-marker" data-marker="+"></td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #a3d3ff; vertical-align: top; white-space: pre-wrap;"><div> </div></td></tr>
<tr><td colspan="2" class="diff-side-deleted"></td><td class="diff-marker" data-marker="+"></td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #a3d3ff; vertical-align: top; white-space: pre-wrap;"><div>Furthermore, the so called “overjustification effect” is another limit when it comes to intrinsic motivation. <ins style="font-weight: bold; text-decoration: none;"><ref> Psychology Iresearchnet (2021). Overjustification Effect [online]. Available: http://psychology.iresearchnet.com/social-psychology/control/overjustification-effect/ (Accessed: 02/21/2021). </ref> </ins>An example for that is a stakeholder in aircraft wing engineering project who enjoys optimizing aircraft wing production processes in order to achieve a higher wing quality. He gets motivated intrinsically by the challenge to find ways to optimize current processes. If that engineer gets asked to be part of a project team in a wing optimization project, he is going to have to deliver results at certain deadlines. The engineers’ motivation could be limited by the fact that he is given instructions to fulfil is enjoyable tasks. That would lead to limiting his creativity and his full potential can’t be exploited.</div></td></tr>
<tr><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>Motivating project stakeholders in the right way is a key instrument for every stakeholder in order to be successful. Experience, structure, transparency and empathy are things that a good project leader needs to own. Structure, experience and transparency can be gained over time, but empathy is an emotion that every good project leader needs to own.</div></td><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>Motivating project stakeholders in the right way is a key instrument for every stakeholder in order to be successful. Experience, structure, transparency and empathy are things that a good project leader needs to own. Structure, experience and transparency can be gained over time, but empathy is an emotion that every good project leader needs to own.</div></td></tr>
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</table>S202854http://13.50.150.85/index.php?title=Intrinsic_Motivation&diff=100902&oldid=prevS202854: /* Crowding-Out Effect within Project Management */2021-02-28T21:03:12Z<p><span class="autocomment">Crowding-Out Effect within Project Management</span></p>
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<tr><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><br></td><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><br></td></tr>
<tr><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>==== Crowding-Out Effect within Project Management ====</div></td><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>==== Crowding-Out Effect within Project Management ====</div></td></tr>
<tr><td colspan="2" class="diff-side-deleted"></td><td class="diff-marker" data-marker="+"></td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #a3d3ff; vertical-align: top; white-space: pre-wrap;"><div><ins style="font-weight: bold; text-decoration: none;"></ins></div></td></tr>
<tr><td colspan="2" class="diff-side-deleted"></td><td class="diff-marker" data-marker="+"></td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #a3d3ff; vertical-align: top; white-space: pre-wrap;"><div><ins style="font-weight: bold; text-decoration: none;">[[File:Figure 1.jpg|450px|thumb|right|Figure 1: Relationship between bonus and performance before the crowding-out effect has set in <ref name="Successful Management by Motivation: Balancing Intrinsic and Extrinsic Incentives ">Bruno S. Frey, Margit Osterloh,(2002), Springer-Verlag Berlin Heidelberg, "Successful Management by Motivation: Balancing Intrinsic and Extrinsic Incentives". </ref>]]</ins></div></td></tr>
<tr><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><br></td><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><br></td></tr>
<tr><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>To bring the example shared above in a project management context it can be ascertained that the crowding-out effect creates a relationship between extrinsic and intrinsic motivation. With that being said, activities being carried out for its own sake (intrinsic) can be undermined or even corrupted by external (extrinsic) intervention. <ref name="Successful Management by Motivation: Balancing Intrinsic and Extrinsic Incentives ">Bruno S. Frey, Margit Osterloh,(2002), Springer-Verlag Berlin Heidelberg, "Successful Management by Motivation: Balancing Intrinsic and Extrinsic Incentives". </ref> In a project environment with many different stakeholders, a successful project leader is able to foster intrinsic motivation and get people to accomplish their tasks without having extrinsic rewards. Introducing an extrinsic reward system at some point of the project can serve to increase the stakeholders’ motivation. Nevertheless, introducing a bonus system may also backfire in some situations. Team members begin to feel that the project leader attributes their good work not to their personal commitment but to the fact that their performance is being monitored. That results in stakeholders being more interested in the extrinsic reward system than in performing well for their own and the projects’ sake. The following two figures explain the mechanics of these two phenomena. </div></td><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>To bring the example shared above in a project management context it can be ascertained that the crowding-out effect creates a relationship between extrinsic and intrinsic motivation. With that being said, activities being carried out for its own sake (intrinsic) can be undermined or even corrupted by external (extrinsic) intervention. <ref name="Successful Management by Motivation: Balancing Intrinsic and Extrinsic Incentives ">Bruno S. Frey, Margit Osterloh,(2002), Springer-Verlag Berlin Heidelberg, "Successful Management by Motivation: Balancing Intrinsic and Extrinsic Incentives". </ref> In a project environment with many different stakeholders, a successful project leader is able to foster intrinsic motivation and get people to accomplish their tasks without having extrinsic rewards. Introducing an extrinsic reward system at some point of the project can serve to increase the stakeholders’ motivation. Nevertheless, introducing a bonus system may also backfire in some situations. Team members begin to feel that the project leader attributes their good work not to their personal commitment but to the fact that their performance is being monitored. That results in stakeholders being more interested in the extrinsic reward system than in performing well for their own and the projects’ sake. The following two figures explain the mechanics of these two phenomena. </div></td></tr>
<tr><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><br></td><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><br></td></tr>
<tr><td class="diff-marker" data-marker="−"></td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #ffe49c; vertical-align: top; white-space: pre-wrap;"><div>[[File:Figure <del style="font-weight: bold; text-decoration: none;">1</del>.jpg|450px|thumb|right|Figure 1: <del style="font-weight: bold; text-decoration: none;">Relationship between bonus </del>and <del style="font-weight: bold; text-decoration: none;">performance before the crowding</del>-<del style="font-weight: bold; text-decoration: none;">out effect has set in </del><ref name="Successful Management by Motivation: Balancing Intrinsic and Extrinsic Incentives ">Bruno S. Frey, Margit Osterloh,(2002), Springer-Verlag Berlin Heidelberg, "Successful Management by Motivation: Balancing Intrinsic and Extrinsic Incentives". </ref>]]</div></td><td class="diff-marker" data-marker="+"></td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #a3d3ff; vertical-align: top; white-space: pre-wrap;"><div>[[File:Figure <ins style="font-weight: bold; text-decoration: none;">2</ins>.jpg|450px|thumb|right|Figure 1: <ins style="font-weight: bold; text-decoration: none;">Net Outcome of the Price Effect </ins>and <ins style="font-weight: bold; text-decoration: none;">a Strong Crowding</ins>-<ins style="font-weight: bold; text-decoration: none;">Out Effect </ins><ref name="Successful Management by Motivation: Balancing Intrinsic and Extrinsic Incentives ">Bruno S. Frey, Margit Osterloh,(2002), Springer-Verlag Berlin Heidelberg, "Successful Management by Motivation: Balancing Intrinsic and Extrinsic Incentives". </ref>]]</div></td></tr>
<tr><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><br></td><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><br></td></tr>
<tr><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>Figure 1 illustrates how a project stakeholder puts in effort A1 into delivering his or her tasks. Provided that there is no crowding-out effect, a bonus with the value of B will increase the stakeholder’s effort from A1 to A2 with S being the motivation curve. This effect is called the price effect. <ref name="Successful Management by Motivation: Balancing Intrinsic and Extrinsic Incentives ">Bruno S. Frey, Margit Osterloh,(2002), Springer-Verlag Berlin Heidelberg, "Successful Management by Motivation: Balancing Intrinsic and Extrinsic Incentives". </ref> The bonus could be anything from a team event to a monetary reward, nevertheless it has to be an extrinsic reward. This figure shows the optimal outcome for a project leader when applying an extrinsic reward to foster the motivation in order to increase the performance and effort of a project stakeholder. It is the project leaders’ challenge to place the bonuses strategically at the right times. If not, stakeholders begin to lose interest as a result of the bonus scheme and the associated control. The extrinsic rewards become more important than the self-fulfilment of a team member. In other words, the stakeholders’ intrinsic motivation has diminished, as shown in figure 2.</div></td><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>Figure 1 illustrates how a project stakeholder puts in effort A1 into delivering his or her tasks. Provided that there is no crowding-out effect, a bonus with the value of B will increase the stakeholder’s effort from A1 to A2 with S being the motivation curve. This effect is called the price effect. <ref name="Successful Management by Motivation: Balancing Intrinsic and Extrinsic Incentives ">Bruno S. Frey, Margit Osterloh,(2002), Springer-Verlag Berlin Heidelberg, "Successful Management by Motivation: Balancing Intrinsic and Extrinsic Incentives". </ref> The bonus could be anything from a team event to a monetary reward, nevertheless it has to be an extrinsic reward. This figure shows the optimal outcome for a project leader when applying an extrinsic reward to foster the motivation in order to increase the performance and effort of a project stakeholder. It is the project leaders’ challenge to place the bonuses strategically at the right times. If not, stakeholders begin to lose interest as a result of the bonus scheme and the associated control. The extrinsic rewards become more important than the self-fulfilment of a team member. In other words, the stakeholders’ intrinsic motivation has diminished, as shown in figure 2.</div></td></tr>
<tr><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><br></td><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><br></td></tr>
<tr><td class="diff-marker" data-marker="−"></td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #ffe49c; vertical-align: top; white-space: pre-wrap;"><div>[[File:Figure <del style="font-weight: bold; text-decoration: none;">2</del>.jpg|450px|thumb|right|Figure 1: Net Outcome of the Price Effect and a <del style="font-weight: bold; text-decoration: none;">Strong </del>Crowding-Out Effect <ref name="Successful Management by Motivation: Balancing Intrinsic and Extrinsic Incentives ">Bruno S. Frey, Margit Osterloh,(2002), Springer-Verlag Berlin Heidelberg, "Successful Management by Motivation: Balancing Intrinsic and Extrinsic Incentives". </ref>]]</div></td><td class="diff-marker" data-marker="+"></td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #a3d3ff; vertical-align: top; white-space: pre-wrap;"><div>[[File:Figure <ins style="font-weight: bold; text-decoration: none;">3</ins>.jpg|450px|thumb|right|Figure 1: Net Outcome of the Price Effect and a <ins style="font-weight: bold; text-decoration: none;">Weak </ins>Crowding-Out Effect <ref name="Successful Management by Motivation: Balancing Intrinsic and Extrinsic Incentives ">Bruno S. Frey, Margit Osterloh,(2002), Springer-Verlag Berlin Heidelberg, "Successful Management by Motivation: Balancing Intrinsic and Extrinsic Incentives". </ref>]] </div></td></tr>
<tr><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div> </div></td><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div> </div></td></tr>
<tr><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>The motivation curve for efforts shifts from S to S’. As a result, the effort falls to A3. In this case, the price effect from A1 to A2 is outweighed by the crowding-out effect from A2 to A3. But not in all cases the crowding-out effect has the same effect on the effort. Figure 3 illustrates that the intensity of the crowding-out effect plays a huge role on the motivation. A weak crowding-out effect shifts the motivation from S to S’’. The applied bonus increases the effort from A1 to A4. However, it is still doubtful whether an applied reward system results in higher project productivity of the stakeholders and a better project performance. In this particular scenario though, greater effort more likely have the effect of highly motivated stakeholders and therefore on-time and on-quality deliverables. <ref name="Successful Management by Motivation: Balancing Intrinsic and Extrinsic Incentives ">Bruno S. Frey, Margit Osterloh,(2002), Springer-Verlag Berlin Heidelberg, "Successful Management by Motivation: Balancing Intrinsic and Extrinsic Incentives". </ref></div></td><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>The motivation curve for efforts shifts from S to S’. As a result, the effort falls to A3. In this case, the price effect from A1 to A2 is outweighed by the crowding-out effect from A2 to A3. But not in all cases the crowding-out effect has the same effect on the effort. Figure 3 illustrates that the intensity of the crowding-out effect plays a huge role on the motivation. A weak crowding-out effect shifts the motivation from S to S’’. The applied bonus increases the effort from A1 to A4. However, it is still doubtful whether an applied reward system results in higher project productivity of the stakeholders and a better project performance. In this particular scenario though, greater effort more likely have the effect of highly motivated stakeholders and therefore on-time and on-quality deliverables. <ref name="Successful Management by Motivation: Balancing Intrinsic and Extrinsic Incentives ">Bruno S. Frey, Margit Osterloh,(2002), Springer-Verlag Berlin Heidelberg, "Successful Management by Motivation: Balancing Intrinsic and Extrinsic Incentives". </ref></div></td></tr>
<tr><td class="diff-marker" data-marker="−"></td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #ffe49c; vertical-align: top; white-space: pre-wrap;"><div><del style="font-weight: bold; text-decoration: none;"></del></div></td><td colspan="2" class="diff-side-added"></td></tr>
<tr><td class="diff-marker" data-marker="−"></td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #ffe49c; vertical-align: top; white-space: pre-wrap;"><div><del style="font-weight: bold; text-decoration: none;">[[File:Figure 3.jpg|450px|thumb|right|Figure 1: Net Outcome of the Price Effect and a Weak Crowding-Out Effect <ref name="Successful Management by Motivation: Balancing Intrinsic and Extrinsic Incentives ">Bruno S. Frey, Margit Osterloh,(2002), Springer-Verlag Berlin Heidelberg, "Successful Management by Motivation: Balancing Intrinsic and Extrinsic Incentives". </ref>]] </del></div></td><td colspan="2" class="diff-side-added"></td></tr>
<tr><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><br></td><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><br></td></tr>
<tr><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>To summarize the above mentioned, the crowding-out effect can be seen to counteract the price effect. For a project manager leading a team of many different-thinking stakeholders it is very difficult to forecast whether the price or the crowding-out effect will predominate if an extrinsic reward is introduced. The personality of each stakeholder plays a big role on the outcome. But before introducing a bonus system, it is essential for the project leader to have created intrinsic motivation beforehand, otherwise there would be nothing to undermine. In the case of straightforward activities where intrinsic motivation is often rare, there will be no recognizable crowding-out effect.</div></td><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>To summarize the above mentioned, the crowding-out effect can be seen to counteract the price effect. For a project manager leading a team of many different-thinking stakeholders it is very difficult to forecast whether the price or the crowding-out effect will predominate if an extrinsic reward is introduced. The personality of each stakeholder plays a big role on the outcome. But before introducing a bonus system, it is essential for the project leader to have created intrinsic motivation beforehand, otherwise there would be nothing to undermine. In the case of straightforward activities where intrinsic motivation is often rare, there will be no recognizable crowding-out effect.</div></td></tr>
</table>S202854http://13.50.150.85/index.php?title=Intrinsic_Motivation&diff=100892&oldid=prevS202854: /* Crowding-Out Effect within Project Management */2021-02-28T21:02:18Z<p><span class="autocomment">Crowding-Out Effect within Project Management</span></p>
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<td colspan="2" style="background-color: #fff; color: #202122; text-align: center;">← Older revision</td>
<td colspan="2" style="background-color: #fff; color: #202122; text-align: center;">Revision as of 21:02, 28 February 2021</td>
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<tr><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><br></td><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><br></td></tr>
<tr><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>To bring the example shared above in a project management context it can be ascertained that the crowding-out effect creates a relationship between extrinsic and intrinsic motivation. With that being said, activities being carried out for its own sake (intrinsic) can be undermined or even corrupted by external (extrinsic) intervention. <ref name="Successful Management by Motivation: Balancing Intrinsic and Extrinsic Incentives ">Bruno S. Frey, Margit Osterloh,(2002), Springer-Verlag Berlin Heidelberg, "Successful Management by Motivation: Balancing Intrinsic and Extrinsic Incentives". </ref> In a project environment with many different stakeholders, a successful project leader is able to foster intrinsic motivation and get people to accomplish their tasks without having extrinsic rewards. Introducing an extrinsic reward system at some point of the project can serve to increase the stakeholders’ motivation. Nevertheless, introducing a bonus system may also backfire in some situations. Team members begin to feel that the project leader attributes their good work not to their personal commitment but to the fact that their performance is being monitored. That results in stakeholders being more interested in the extrinsic reward system than in performing well for their own and the projects’ sake. The following two figures explain the mechanics of these two phenomena. </div></td><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>To bring the example shared above in a project management context it can be ascertained that the crowding-out effect creates a relationship between extrinsic and intrinsic motivation. With that being said, activities being carried out for its own sake (intrinsic) can be undermined or even corrupted by external (extrinsic) intervention. <ref name="Successful Management by Motivation: Balancing Intrinsic and Extrinsic Incentives ">Bruno S. Frey, Margit Osterloh,(2002), Springer-Verlag Berlin Heidelberg, "Successful Management by Motivation: Balancing Intrinsic and Extrinsic Incentives". </ref> In a project environment with many different stakeholders, a successful project leader is able to foster intrinsic motivation and get people to accomplish their tasks without having extrinsic rewards. Introducing an extrinsic reward system at some point of the project can serve to increase the stakeholders’ motivation. Nevertheless, introducing a bonus system may also backfire in some situations. Team members begin to feel that the project leader attributes their good work not to their personal commitment but to the fact that their performance is being monitored. That results in stakeholders being more interested in the extrinsic reward system than in performing well for their own and the projects’ sake. The following two figures explain the mechanics of these two phenomena. </div></td></tr>
<tr><td class="diff-marker" data-marker="−"></td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #ffe49c; vertical-align: top; white-space: pre-wrap;"><div><del style="font-weight: bold; text-decoration: none;"></del></div></td><td colspan="2" class="diff-side-added"></td></tr>
<tr><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><br></td><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><br></td></tr>
<tr><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>[[File:Figure 1.jpg|450px|thumb|right|Figure 1: Relationship between bonus and performance before the crowding-out effect has set in <ref name="Successful Management by Motivation: Balancing Intrinsic and Extrinsic Incentives ">Bruno S. Frey, Margit Osterloh,(2002), Springer-Verlag Berlin Heidelberg, "Successful Management by Motivation: Balancing Intrinsic and Extrinsic Incentives". </ref>]]</div></td><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>[[File:Figure 1.jpg|450px|thumb|right|Figure 1: Relationship between bonus and performance before the crowding-out effect has set in <ref name="Successful Management by Motivation: Balancing Intrinsic and Extrinsic Incentives ">Bruno S. Frey, Margit Osterloh,(2002), Springer-Verlag Berlin Heidelberg, "Successful Management by Motivation: Balancing Intrinsic and Extrinsic Incentives". </ref>]]</div></td></tr>
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<tr><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>Figure 1 illustrates how a project stakeholder puts in effort A1 into delivering his or her tasks. Provided that there is no crowding-out effect, a bonus with the value of B will increase the stakeholder’s effort from A1 to A2 with S being the motivation curve. This effect is called the price effect. <ref name="Successful Management by Motivation: Balancing Intrinsic and Extrinsic Incentives ">Bruno S. Frey, Margit Osterloh,(2002), Springer-Verlag Berlin Heidelberg, "Successful Management by Motivation: Balancing Intrinsic and Extrinsic Incentives". </ref> The bonus could be anything from a team event to a monetary reward, nevertheless it has to be an extrinsic reward. This figure shows the optimal outcome for a project leader when applying an extrinsic reward to foster the motivation in order to increase the performance and effort of a project stakeholder. It is the project leaders’ challenge to place the bonuses strategically at the right times. If not, stakeholders begin to lose interest as a result of the bonus scheme and the associated control. The extrinsic rewards become more important than the self-fulfilment of a team member. In other words, the stakeholders’ intrinsic motivation has diminished, as shown in figure 2.</div></td><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>Figure 1 illustrates how a project stakeholder puts in effort A1 into delivering his or her tasks. Provided that there is no crowding-out effect, a bonus with the value of B will increase the stakeholder’s effort from A1 to A2 with S being the motivation curve. This effect is called the price effect. <ref name="Successful Management by Motivation: Balancing Intrinsic and Extrinsic Incentives ">Bruno S. Frey, Margit Osterloh,(2002), Springer-Verlag Berlin Heidelberg, "Successful Management by Motivation: Balancing Intrinsic and Extrinsic Incentives". </ref> The bonus could be anything from a team event to a monetary reward, nevertheless it has to be an extrinsic reward. This figure shows the optimal outcome for a project leader when applying an extrinsic reward to foster the motivation in order to increase the performance and effort of a project stakeholder. It is the project leaders’ challenge to place the bonuses strategically at the right times. If not, stakeholders begin to lose interest as a result of the bonus scheme and the associated control. The extrinsic rewards become more important than the self-fulfilment of a team member. In other words, the stakeholders’ intrinsic motivation has diminished, as shown in figure 2.</div></td></tr>
<tr><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><br></td><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><br></td></tr>
<tr><td class="diff-marker" data-marker="−"></td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #ffe49c; vertical-align: top; white-space: pre-wrap;"><div>[[File:Figure 2.jpg]]</div></td><td class="diff-marker" data-marker="+"></td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #a3d3ff; vertical-align: top; white-space: pre-wrap;"><div>[[File:Figure 2.jpg<ins style="font-weight: bold; text-decoration: none;">|450px|thumb|right|Figure 1: Net Outcome of the Price Effect and a Strong Crowding-Out Effect <ref name="Successful Management by Motivation: Balancing Intrinsic and Extrinsic Incentives ">Bruno S. Frey, Margit Osterloh,(2002), Springer-Verlag Berlin Heidelberg, "Successful Management by Motivation: Balancing Intrinsic and Extrinsic Incentives". </ref></ins>]]</div></td></tr>
<tr><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div> </div></td><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div> </div></td></tr>
<tr><td class="diff-marker" data-marker="−"></td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #ffe49c; vertical-align: top; white-space: pre-wrap;"><div><del style="font-weight: bold; text-decoration: none;">Figure 2: Net Outcome of the Price Effect and a Strong Crowding-Out Effect [2]</del></div></td><td colspan="2" class="diff-side-added"></td></tr>
<tr><td class="diff-marker" data-marker="−"></td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #ffe49c; vertical-align: top; white-space: pre-wrap;"><div><del style="font-weight: bold; text-decoration: none;"></del></div></td><td colspan="2" class="diff-side-added"></td></tr>
<tr><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>The motivation curve for efforts shifts from S to S’. As a result, the effort falls to A3. In this case, the price effect from A1 to A2 is outweighed by the crowding-out effect from A2 to A3. But not in all cases the crowding-out effect has the same effect on the effort. Figure 3 illustrates that the intensity of the crowding-out effect plays a huge role on the motivation. A weak crowding-out effect shifts the motivation from S to S’’. The applied bonus increases the effort from A1 to A4. However, it is still doubtful whether an applied reward system results in higher project productivity of the stakeholders and a better project performance. In this particular scenario though, greater effort more likely have the effect of highly motivated stakeholders and therefore on-time and on-quality deliverables. <ref name="Successful Management by Motivation: Balancing Intrinsic and Extrinsic Incentives ">Bruno S. Frey, Margit Osterloh,(2002), Springer-Verlag Berlin Heidelberg, "Successful Management by Motivation: Balancing Intrinsic and Extrinsic Incentives". </ref></div></td><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>The motivation curve for efforts shifts from S to S’. As a result, the effort falls to A3. In this case, the price effect from A1 to A2 is outweighed by the crowding-out effect from A2 to A3. But not in all cases the crowding-out effect has the same effect on the effort. Figure 3 illustrates that the intensity of the crowding-out effect plays a huge role on the motivation. A weak crowding-out effect shifts the motivation from S to S’’. The applied bonus increases the effort from A1 to A4. However, it is still doubtful whether an applied reward system results in higher project productivity of the stakeholders and a better project performance. In this particular scenario though, greater effort more likely have the effect of highly motivated stakeholders and therefore on-time and on-quality deliverables. <ref name="Successful Management by Motivation: Balancing Intrinsic and Extrinsic Incentives ">Bruno S. Frey, Margit Osterloh,(2002), Springer-Verlag Berlin Heidelberg, "Successful Management by Motivation: Balancing Intrinsic and Extrinsic Incentives". </ref></div></td></tr>
<tr><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><br></td><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><br></td></tr>
<tr><td class="diff-marker" data-marker="−"></td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #ffe49c; vertical-align: top; white-space: pre-wrap;"><div>[[File:Figure 3.jpg<del style="font-weight: bold; text-decoration: none;">]]</del></div></td><td class="diff-marker" data-marker="+"></td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #a3d3ff; vertical-align: top; white-space: pre-wrap;"><div>[[File:Figure 3.jpg<ins style="font-weight: bold; text-decoration: none;">|450px|thumb|right|</ins>Figure <ins style="font-weight: bold; text-decoration: none;">1</ins>: Net Outcome of the Price Effect and a Weak Crowding-Out Effect <ins style="font-weight: bold; text-decoration: none;"><ref name="Successful Management by Motivation: Balancing Intrinsic and Extrinsic Incentives ">Bruno S. Frey, Margit Osterloh,(2002), Springer-Verlag Berlin Heidelberg, "Successful Management by Motivation: Balancing Intrinsic and Extrinsic Incentives". </ref>]</ins>] </div></td></tr>
<tr><td class="diff-marker" data-marker="−"></td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #ffe49c; vertical-align: top; white-space: pre-wrap;"><div><del style="font-weight: bold; text-decoration: none;"> </del></div></td><td colspan="2" class="diff-side-added"></td></tr>
<tr><td class="diff-marker" data-marker="−"></td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #ffe49c; vertical-align: top; white-space: pre-wrap;"><div>Figure <del style="font-weight: bold; text-decoration: none;">3</del>: Net Outcome of the Price Effect and a Weak Crowding-Out Effect <del style="font-weight: bold; text-decoration: none;">[2</del>]</div></td><td colspan="2" class="diff-side-added"></td></tr>
<tr><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><br></td><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><br></td></tr>
<tr><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>To summarize the above mentioned, the crowding-out effect can be seen to counteract the price effect. For a project manager leading a team of many different-thinking stakeholders it is very difficult to forecast whether the price or the crowding-out effect will predominate if an extrinsic reward is introduced. The personality of each stakeholder plays a big role on the outcome. But before introducing a bonus system, it is essential for the project leader to have created intrinsic motivation beforehand, otherwise there would be nothing to undermine. In the case of straightforward activities where intrinsic motivation is often rare, there will be no recognizable crowding-out effect.</div></td><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>To summarize the above mentioned, the crowding-out effect can be seen to counteract the price effect. For a project manager leading a team of many different-thinking stakeholders it is very difficult to forecast whether the price or the crowding-out effect will predominate if an extrinsic reward is introduced. The personality of each stakeholder plays a big role on the outcome. But before introducing a bonus system, it is essential for the project leader to have created intrinsic motivation beforehand, otherwise there would be nothing to undermine. In the case of straightforward activities where intrinsic motivation is often rare, there will be no recognizable crowding-out effect.</div></td></tr>
</table>S202854http://13.50.150.85/index.php?title=Intrinsic_Motivation&diff=100881&oldid=prevS202854: /* Crowding-Out Effect within Project Management */2021-02-28T21:00:52Z<p><span class="autocomment">Crowding-Out Effect within Project Management</span></p>
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<td colspan="2" style="background-color: #fff; color: #202122; text-align: center;">Revision as of 21:00, 28 February 2021</td>
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<tr><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>To bring the example shared above in a project management context it can be ascertained that the crowding-out effect creates a relationship between extrinsic and intrinsic motivation. With that being said, activities being carried out for its own sake (intrinsic) can be undermined or even corrupted by external (extrinsic) intervention. <ref name="Successful Management by Motivation: Balancing Intrinsic and Extrinsic Incentives ">Bruno S. Frey, Margit Osterloh,(2002), Springer-Verlag Berlin Heidelberg, "Successful Management by Motivation: Balancing Intrinsic and Extrinsic Incentives". </ref> In a project environment with many different stakeholders, a successful project leader is able to foster intrinsic motivation and get people to accomplish their tasks without having extrinsic rewards. Introducing an extrinsic reward system at some point of the project can serve to increase the stakeholders’ motivation. Nevertheless, introducing a bonus system may also backfire in some situations. Team members begin to feel that the project leader attributes their good work not to their personal commitment but to the fact that their performance is being monitored. That results in stakeholders being more interested in the extrinsic reward system than in performing well for their own and the projects’ sake. The following two figures explain the mechanics of these two phenomena. </div></td><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>To bring the example shared above in a project management context it can be ascertained that the crowding-out effect creates a relationship between extrinsic and intrinsic motivation. With that being said, activities being carried out for its own sake (intrinsic) can be undermined or even corrupted by external (extrinsic) intervention. <ref name="Successful Management by Motivation: Balancing Intrinsic and Extrinsic Incentives ">Bruno S. Frey, Margit Osterloh,(2002), Springer-Verlag Berlin Heidelberg, "Successful Management by Motivation: Balancing Intrinsic and Extrinsic Incentives". </ref> In a project environment with many different stakeholders, a successful project leader is able to foster intrinsic motivation and get people to accomplish their tasks without having extrinsic rewards. Introducing an extrinsic reward system at some point of the project can serve to increase the stakeholders’ motivation. Nevertheless, introducing a bonus system may also backfire in some situations. Team members begin to feel that the project leader attributes their good work not to their personal commitment but to the fact that their performance is being monitored. That results in stakeholders being more interested in the extrinsic reward system than in performing well for their own and the projects’ sake. The following two figures explain the mechanics of these two phenomena. </div></td></tr>
<tr><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><br></td><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><br></td></tr>
<tr><td class="diff-marker" data-marker="−"></td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #ffe49c; vertical-align: top; white-space: pre-wrap;"><div><del style="font-weight: bold; text-decoration: none;">[[File:Figure 1.jpg]]</del></div></td><td colspan="2" class="diff-side-added"></td></tr>
<tr><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><br></td><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><br></td></tr>
<tr><td class="diff-marker" data-marker="−"></td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #ffe49c; vertical-align: top; white-space: pre-wrap;"><div>Figure 1: Relationship between bonus and performance before the crowding-out effect has set in</div></td><td class="diff-marker" data-marker="+"></td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #a3d3ff; vertical-align: top; white-space: pre-wrap;"><div><ins style="font-weight: bold; text-decoration: none;">[[File:Figure 1.jpg|450px|thumb|right|</ins>Figure 1: Relationship between bonus and performance before the crowding-out effect has set in <ins style="font-weight: bold; text-decoration: none;"><ref name="Successful Management by Motivation: Balancing Intrinsic and Extrinsic Incentives ">Bruno S. Frey, Margit Osterloh,(2002), Springer-Verlag Berlin Heidelberg, "Successful Management by Motivation: Balancing Intrinsic and Extrinsic Incentives". </ref>]]</ins></div></td></tr>
<tr><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><br></td><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><br></td></tr>
<tr><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>Figure 1 illustrates how a project stakeholder puts in effort A1 into delivering his or her tasks. Provided that there is no crowding-out effect, a bonus with the value of B will increase the stakeholder’s effort from A1 to A2 with S being the motivation curve. This effect is called the price effect. <ref name="Successful Management by Motivation: Balancing Intrinsic and Extrinsic Incentives ">Bruno S. Frey, Margit Osterloh,(2002), Springer-Verlag Berlin Heidelberg, "Successful Management by Motivation: Balancing Intrinsic and Extrinsic Incentives". </ref> The bonus could be anything from a team event to a monetary reward, nevertheless it has to be an extrinsic reward. This figure shows the optimal outcome for a project leader when applying an extrinsic reward to foster the motivation in order to increase the performance and effort of a project stakeholder. It is the project leaders’ challenge to place the bonuses strategically at the right times. If not, stakeholders begin to lose interest as a result of the bonus scheme and the associated control. The extrinsic rewards become more important than the self-fulfilment of a team member. In other words, the stakeholders’ intrinsic motivation has diminished, as shown in figure 2.</div></td><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>Figure 1 illustrates how a project stakeholder puts in effort A1 into delivering his or her tasks. Provided that there is no crowding-out effect, a bonus with the value of B will increase the stakeholder’s effort from A1 to A2 with S being the motivation curve. This effect is called the price effect. <ref name="Successful Management by Motivation: Balancing Intrinsic and Extrinsic Incentives ">Bruno S. Frey, Margit Osterloh,(2002), Springer-Verlag Berlin Heidelberg, "Successful Management by Motivation: Balancing Intrinsic and Extrinsic Incentives". </ref> The bonus could be anything from a team event to a monetary reward, nevertheless it has to be an extrinsic reward. This figure shows the optimal outcome for a project leader when applying an extrinsic reward to foster the motivation in order to increase the performance and effort of a project stakeholder. It is the project leaders’ challenge to place the bonuses strategically at the right times. If not, stakeholders begin to lose interest as a result of the bonus scheme and the associated control. The extrinsic rewards become more important than the self-fulfilment of a team member. In other words, the stakeholders’ intrinsic motivation has diminished, as shown in figure 2.</div></td></tr>
</table>S202854http://13.50.150.85/index.php?title=Intrinsic_Motivation&diff=100848&oldid=prevS202854: /* Crowding-Out Effect within Project Management */2021-02-28T20:57:24Z<p><span class="autocomment">Crowding-Out Effect within Project Management</span></p>
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<td colspan="2" style="background-color: #fff; color: #202122; text-align: center;">Revision as of 20:57, 28 February 2021</td>
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<tr><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>The motivation curve for efforts shifts from S to S’. As a result, the effort falls to A3. In this case, the price effect from A1 to A2 is outweighed by the crowding-out effect from A2 to A3. But not in all cases the crowding-out effect has the same effect on the effort. Figure 3 illustrates that the intensity of the crowding-out effect plays a huge role on the motivation. A weak crowding-out effect shifts the motivation from S to S’’. The applied bonus increases the effort from A1 to A4. However, it is still doubtful whether an applied reward system results in higher project productivity of the stakeholders and a better project performance. In this particular scenario though, greater effort more likely have the effect of highly motivated stakeholders and therefore on-time and on-quality deliverables. <ref name="Successful Management by Motivation: Balancing Intrinsic and Extrinsic Incentives ">Bruno S. Frey, Margit Osterloh,(2002), Springer-Verlag Berlin Heidelberg, "Successful Management by Motivation: Balancing Intrinsic and Extrinsic Incentives". </ref></div></td><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>The motivation curve for efforts shifts from S to S’. As a result, the effort falls to A3. In this case, the price effect from A1 to A2 is outweighed by the crowding-out effect from A2 to A3. But not in all cases the crowding-out effect has the same effect on the effort. Figure 3 illustrates that the intensity of the crowding-out effect plays a huge role on the motivation. A weak crowding-out effect shifts the motivation from S to S’’. The applied bonus increases the effort from A1 to A4. However, it is still doubtful whether an applied reward system results in higher project productivity of the stakeholders and a better project performance. In this particular scenario though, greater effort more likely have the effect of highly motivated stakeholders and therefore on-time and on-quality deliverables. <ref name="Successful Management by Motivation: Balancing Intrinsic and Extrinsic Incentives ">Bruno S. Frey, Margit Osterloh,(2002), Springer-Verlag Berlin Heidelberg, "Successful Management by Motivation: Balancing Intrinsic and Extrinsic Incentives". </ref></div></td></tr>
<tr><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><br></td><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><br></td></tr>
<tr><td colspan="2" class="diff-side-deleted"></td><td class="diff-marker" data-marker="+"></td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #a3d3ff; vertical-align: top; white-space: pre-wrap;"><div><ins style="font-weight: bold; text-decoration: none;">[[File:Figure 3.jpg]]</ins></div></td></tr>
<tr><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div> </div></td><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div> </div></td></tr>
<tr><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>Figure 3: Net Outcome of the Price Effect and a Weak Crowding-Out Effect [2]</div></td><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>Figure 3: Net Outcome of the Price Effect and a Weak Crowding-Out Effect [2]</div></td></tr>
</table>S202854http://13.50.150.85/index.php?title=Intrinsic_Motivation&diff=100839&oldid=prevS202854: /* Crowding-Out Effect within Project Management */2021-02-28T20:56:29Z<p><span class="autocomment">Crowding-Out Effect within Project Management</span></p>
<table style="background-color: #fff; color: #202122;" data-mw="interface">
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<td colspan="2" style="background-color: #fff; color: #202122; text-align: center;">Revision as of 20:56, 28 February 2021</td>
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<tr><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>Figure 1 illustrates how a project stakeholder puts in effort A1 into delivering his or her tasks. Provided that there is no crowding-out effect, a bonus with the value of B will increase the stakeholder’s effort from A1 to A2 with S being the motivation curve. This effect is called the price effect. <ref name="Successful Management by Motivation: Balancing Intrinsic and Extrinsic Incentives ">Bruno S. Frey, Margit Osterloh,(2002), Springer-Verlag Berlin Heidelberg, "Successful Management by Motivation: Balancing Intrinsic and Extrinsic Incentives". </ref> The bonus could be anything from a team event to a monetary reward, nevertheless it has to be an extrinsic reward. This figure shows the optimal outcome for a project leader when applying an extrinsic reward to foster the motivation in order to increase the performance and effort of a project stakeholder. It is the project leaders’ challenge to place the bonuses strategically at the right times. If not, stakeholders begin to lose interest as a result of the bonus scheme and the associated control. The extrinsic rewards become more important than the self-fulfilment of a team member. In other words, the stakeholders’ intrinsic motivation has diminished, as shown in figure 2.</div></td><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>Figure 1 illustrates how a project stakeholder puts in effort A1 into delivering his or her tasks. Provided that there is no crowding-out effect, a bonus with the value of B will increase the stakeholder’s effort from A1 to A2 with S being the motivation curve. This effect is called the price effect. <ref name="Successful Management by Motivation: Balancing Intrinsic and Extrinsic Incentives ">Bruno S. Frey, Margit Osterloh,(2002), Springer-Verlag Berlin Heidelberg, "Successful Management by Motivation: Balancing Intrinsic and Extrinsic Incentives". </ref> The bonus could be anything from a team event to a monetary reward, nevertheless it has to be an extrinsic reward. This figure shows the optimal outcome for a project leader when applying an extrinsic reward to foster the motivation in order to increase the performance and effort of a project stakeholder. It is the project leaders’ challenge to place the bonuses strategically at the right times. If not, stakeholders begin to lose interest as a result of the bonus scheme and the associated control. The extrinsic rewards become more important than the self-fulfilment of a team member. In other words, the stakeholders’ intrinsic motivation has diminished, as shown in figure 2.</div></td></tr>
<tr><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><br></td><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><br></td></tr>
<tr><td colspan="2" class="diff-side-deleted"></td><td class="diff-marker" data-marker="+"></td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #a3d3ff; vertical-align: top; white-space: pre-wrap;"><div><ins style="font-weight: bold; text-decoration: none;">[[File:Figure 2.jpg]]</ins></div></td></tr>
<tr><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div> </div></td><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div> </div></td></tr>
<tr><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>Figure 2: Net Outcome of the Price Effect and a Strong Crowding-Out Effect [2]</div></td><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>Figure 2: Net Outcome of the Price Effect and a Strong Crowding-Out Effect [2]</div></td></tr>
</table>S202854http://13.50.150.85/index.php?title=Intrinsic_Motivation&diff=100833&oldid=prevS202854: /* Crowding-Out Effect within Project Management */2021-02-28T20:55:50Z<p><span class="autocomment">Crowding-Out Effect within Project Management</span></p>
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<td colspan="2" style="background-color: #fff; color: #202122; text-align: center;">Revision as of 20:55, 28 February 2021</td>
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<tr><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>[[File:Figure 1.jpg]]</div></td><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>[[File:Figure 1.jpg]]</div></td></tr>
<tr><td class="diff-marker" data-marker="−"></td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #ffe49c; vertical-align: top; white-space: pre-wrap;"><div>Figure 1: Relationship between bonus and performance before the crowding-out effect has set in <del style="font-weight: bold; text-decoration: none;">[2]</del></div></td><td class="diff-marker" data-marker="+"></td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #a3d3ff; vertical-align: top; white-space: pre-wrap;"><div> </div></td></tr>
<tr><td colspan="2" class="diff-side-deleted"></td><td class="diff-marker" data-marker="+"></td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #a3d3ff; vertical-align: top; white-space: pre-wrap;"><div>Figure 1: Relationship between bonus and performance before the crowding-out effect has set in</div></td></tr>
<tr><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><br></td><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><br></td></tr>
<tr><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>Figure 1 illustrates how a project stakeholder puts in effort A1 into delivering his or her tasks. Provided that there is no crowding-out effect, a bonus with the value of B will increase the stakeholder’s effort from A1 to A2 with S being the motivation curve. This effect is called the price effect. <ref name="Successful Management by Motivation: Balancing Intrinsic and Extrinsic Incentives ">Bruno S. Frey, Margit Osterloh,(2002), Springer-Verlag Berlin Heidelberg, "Successful Management by Motivation: Balancing Intrinsic and Extrinsic Incentives". </ref> The bonus could be anything from a team event to a monetary reward, nevertheless it has to be an extrinsic reward. This figure shows the optimal outcome for a project leader when applying an extrinsic reward to foster the motivation in order to increase the performance and effort of a project stakeholder. It is the project leaders’ challenge to place the bonuses strategically at the right times. If not, stakeholders begin to lose interest as a result of the bonus scheme and the associated control. The extrinsic rewards become more important than the self-fulfilment of a team member. In other words, the stakeholders’ intrinsic motivation has diminished, as shown in figure 2.</div></td><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>Figure 1 illustrates how a project stakeholder puts in effort A1 into delivering his or her tasks. Provided that there is no crowding-out effect, a bonus with the value of B will increase the stakeholder’s effort from A1 to A2 with S being the motivation curve. This effect is called the price effect. <ref name="Successful Management by Motivation: Balancing Intrinsic and Extrinsic Incentives ">Bruno S. Frey, Margit Osterloh,(2002), Springer-Verlag Berlin Heidelberg, "Successful Management by Motivation: Balancing Intrinsic and Extrinsic Incentives". </ref> The bonus could be anything from a team event to a monetary reward, nevertheless it has to be an extrinsic reward. This figure shows the optimal outcome for a project leader when applying an extrinsic reward to foster the motivation in order to increase the performance and effort of a project stakeholder. It is the project leaders’ challenge to place the bonuses strategically at the right times. If not, stakeholders begin to lose interest as a result of the bonus scheme and the associated control. The extrinsic rewards become more important than the self-fulfilment of a team member. In other words, the stakeholders’ intrinsic motivation has diminished, as shown in figure 2.</div></td></tr>
</table>S202854http://13.50.150.85/index.php?title=Intrinsic_Motivation&diff=100822&oldid=prevS202854: /* Crowding-Out Effect within Project Management */2021-02-28T20:54:42Z<p><span class="autocomment">Crowding-Out Effect within Project Management</span></p>
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<td colspan="2" style="background-color: #fff; color: #202122; text-align: center;">Revision as of 20:54, 28 February 2021</td>
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<tr><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>To bring the example shared above in a project management context it can be ascertained that the crowding-out effect creates a relationship between extrinsic and intrinsic motivation. With that being said, activities being carried out for its own sake (intrinsic) can be undermined or even corrupted by external (extrinsic) intervention. <ref name="Successful Management by Motivation: Balancing Intrinsic and Extrinsic Incentives ">Bruno S. Frey, Margit Osterloh,(2002), Springer-Verlag Berlin Heidelberg, "Successful Management by Motivation: Balancing Intrinsic and Extrinsic Incentives". </ref> In a project environment with many different stakeholders, a successful project leader is able to foster intrinsic motivation and get people to accomplish their tasks without having extrinsic rewards. Introducing an extrinsic reward system at some point of the project can serve to increase the stakeholders’ motivation. Nevertheless, introducing a bonus system may also backfire in some situations. Team members begin to feel that the project leader attributes their good work not to their personal commitment but to the fact that their performance is being monitored. That results in stakeholders being more interested in the extrinsic reward system than in performing well for their own and the projects’ sake. The following two figures explain the mechanics of these two phenomena. </div></td><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>To bring the example shared above in a project management context it can be ascertained that the crowding-out effect creates a relationship between extrinsic and intrinsic motivation. With that being said, activities being carried out for its own sake (intrinsic) can be undermined or even corrupted by external (extrinsic) intervention. <ref name="Successful Management by Motivation: Balancing Intrinsic and Extrinsic Incentives ">Bruno S. Frey, Margit Osterloh,(2002), Springer-Verlag Berlin Heidelberg, "Successful Management by Motivation: Balancing Intrinsic and Extrinsic Incentives". </ref> In a project environment with many different stakeholders, a successful project leader is able to foster intrinsic motivation and get people to accomplish their tasks without having extrinsic rewards. Introducing an extrinsic reward system at some point of the project can serve to increase the stakeholders’ motivation. Nevertheless, introducing a bonus system may also backfire in some situations. Team members begin to feel that the project leader attributes their good work not to their personal commitment but to the fact that their performance is being monitored. That results in stakeholders being more interested in the extrinsic reward system than in performing well for their own and the projects’ sake. The following two figures explain the mechanics of these two phenomena. </div></td></tr>
<tr><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><br></td><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><br></td></tr>
<tr><td class="diff-marker" data-marker="−"></td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #ffe49c; vertical-align: top; white-space: pre-wrap;"><div>[[File:<del style="font-weight: bold; text-decoration: none;">Example</del>.jpg]]</div></td><td class="diff-marker" data-marker="+"></td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #a3d3ff; vertical-align: top; white-space: pre-wrap;"><div>[[File:<ins style="font-weight: bold; text-decoration: none;">Figure 1</ins>.jpg]]</div></td></tr>
<tr><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>Figure 1: Relationship between bonus and performance before the crowding-out effect has set in [2]</div></td><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>Figure 1: Relationship between bonus and performance before the crowding-out effect has set in [2]</div></td></tr>
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</table>S202854http://13.50.150.85/index.php?title=Intrinsic_Motivation&diff=100805&oldid=prevS202854: /* Crowding-Out Effect within Project Management */2021-02-28T20:52:12Z<p><span class="autocomment">Crowding-Out Effect within Project Management</span></p>
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<td colspan="2" style="background-color: #fff; color: #202122; text-align: center;">Revision as of 20:52, 28 February 2021</td>
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<tr><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>To bring the example shared above in a project management context it can be ascertained that the crowding-out effect creates a relationship between extrinsic and intrinsic motivation. With that being said, activities being carried out for its own sake (intrinsic) can be undermined or even corrupted by external (extrinsic) intervention. <ref name="Successful Management by Motivation: Balancing Intrinsic and Extrinsic Incentives ">Bruno S. Frey, Margit Osterloh,(2002), Springer-Verlag Berlin Heidelberg, "Successful Management by Motivation: Balancing Intrinsic and Extrinsic Incentives". </ref> In a project environment with many different stakeholders, a successful project leader is able to foster intrinsic motivation and get people to accomplish their tasks without having extrinsic rewards. Introducing an extrinsic reward system at some point of the project can serve to increase the stakeholders’ motivation. Nevertheless, introducing a bonus system may also backfire in some situations. Team members begin to feel that the project leader attributes their good work not to their personal commitment but to the fact that their performance is being monitored. That results in stakeholders being more interested in the extrinsic reward system than in performing well for their own and the projects’ sake. The following two figures explain the mechanics of these two phenomena. </div></td><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>To bring the example shared above in a project management context it can be ascertained that the crowding-out effect creates a relationship between extrinsic and intrinsic motivation. With that being said, activities being carried out for its own sake (intrinsic) can be undermined or even corrupted by external (extrinsic) intervention. <ref name="Successful Management by Motivation: Balancing Intrinsic and Extrinsic Incentives ">Bruno S. Frey, Margit Osterloh,(2002), Springer-Verlag Berlin Heidelberg, "Successful Management by Motivation: Balancing Intrinsic and Extrinsic Incentives". </ref> In a project environment with many different stakeholders, a successful project leader is able to foster intrinsic motivation and get people to accomplish their tasks without having extrinsic rewards. Introducing an extrinsic reward system at some point of the project can serve to increase the stakeholders’ motivation. Nevertheless, introducing a bonus system may also backfire in some situations. Team members begin to feel that the project leader attributes their good work not to their personal commitment but to the fact that their performance is being monitored. That results in stakeholders being more interested in the extrinsic reward system than in performing well for their own and the projects’ sake. The following two figures explain the mechanics of these two phenomena. </div></td></tr>
<tr><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><br></td><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><br></td></tr>
<tr><td class="diff-marker" data-marker="−"></td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #ffe49c; vertical-align: top; white-space: pre-wrap;"><div><del style="font-weight: bold; text-decoration: none;"> </del></div></td><td class="diff-marker" data-marker="+"></td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #a3d3ff; vertical-align: top; white-space: pre-wrap;"><div><ins style="font-weight: bold; text-decoration: none;">[[File:Example.jpg]]</ins></div></td></tr>
<tr><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>Figure 1: Relationship between bonus and performance before the crowding-out effect has set in [2]</div></td><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>Figure 1: Relationship between bonus and performance before the crowding-out effect has set in [2]</div></td></tr>
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</table>S202854http://13.50.150.85/index.php?title=Intrinsic_Motivation&diff=100764&oldid=prevS202854: /* Limitations */2021-02-28T20:48:22Z<p><span class="autocomment">Limitations</span></p>
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<tr><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>== Limitations ==</div></td><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>== Limitations ==</div></td></tr>
<tr><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><br></td><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><br></td></tr>
<tr><td class="diff-marker" data-marker="−"></td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #ffe49c; vertical-align: top; white-space: pre-wrap;"><div><del style="font-weight: bold; text-decoration: none;">page 41</del></div></td><td class="diff-marker" data-marker="+"></td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #a3d3ff; vertical-align: top; white-space: pre-wrap;"><div>When <ins style="font-weight: bold; text-decoration: none;">it comes to fostering intrinsic motivation within project management project leaders get confronted with many difficult decisions and limitations. As stated above, in most cases project leaders need to find a way to create intrinsic motivation in order for the project to be successful. However, under certain circumstances, extrinsic motivation is also indispensable. Motivation should always meet the objectives of the project. The aim is to engender intrinsic motivation per se which ensures a coordinated stakeholder effort in keeping with the projects’ goals and deliverables. But the concept of intrinsic motivation can be limited by </ins>stakeholders <ins style="font-weight: bold; text-decoration: none;">who are used to working for </ins>extrinsic rewards <ins style="font-weight: bold; text-decoration: none;">only. It is very difficult to motivate a stakeholder intrinsically, when his goal is to deliver tasks just to be rewarded with extrinsically. If </ins>the <ins style="font-weight: bold; text-decoration: none;">project leader tells this stakeholder that he needs to achieve his deliverables </ins>without any extrinsic rewards<ins style="font-weight: bold; text-decoration: none;">, the stakeholder might not be as efficient and goal-driven as he used to be in previous projects.</ins></div></td></tr>
<tr><td class="diff-marker" data-marker="−"></td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #ffe49c; vertical-align: top; white-space: pre-wrap;"><div> </div></td><td class="diff-marker" data-marker="+"></td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #a3d3ff; vertical-align: top; white-space: pre-wrap;"><div><ins style="font-weight: bold; text-decoration: none;">Another limitation is the fact that not everyone can share an immediate passion for a certain project. These kinds of stakeholders are struggling to get started with their tasks and can quickly loose interest in the topic. Or even worse, they might not want to be part of the project team at all. </ins></div></td></tr>
<tr><td class="diff-marker" data-marker="−"></td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #ffe49c; vertical-align: top; white-space: pre-wrap;"><div><del style="font-weight: bold; text-decoration: none;">- </del>When stakeholders <del style="font-weight: bold; text-decoration: none;">had </del>extrinsic rewards <del style="font-weight: bold; text-decoration: none;">before and </del>the <del style="font-weight: bold; text-decoration: none;">PL starts </del>without any extrinsic rewards</div></td><td class="diff-marker" data-marker="+"></td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #a3d3ff; vertical-align: top; white-space: pre-wrap;"><div><ins style="font-weight: bold; text-decoration: none;">Furthermore, the so called “overjustification effect” is another limit when it comes to intrinsic motivation. An example for that is a stakeholder in aircraft wing engineering project who enjoys optimizing aircraft wing production processes in order to achieve a higher wing quality. He gets motivated intrinsically by the challenge to find ways to optimize current processes. If that engineer gets asked to be part of a project team in a wing optimization project, he is going to have to deliver results at certain deadlines. The engineers’ motivation could be limited by the fact that he is given instructions to fulfil is enjoyable tasks. That would lead to limiting his creativity and his full potential can’t be exploited.</ins></div></td></tr>
<tr><td class="diff-marker" data-marker="−"></td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #ffe49c; vertical-align: top; white-space: pre-wrap;"><div><del style="font-weight: bold; text-decoration: none;">- </del></div></td><td class="diff-marker" data-marker="+"></td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #a3d3ff; vertical-align: top; white-space: pre-wrap;"><div><ins style="font-weight: bold; text-decoration: none;">Motivating project stakeholders in the right way is a key instrument for every stakeholder in order to be successful. Experience, structure, transparency and empathy are things that a good project leader needs to own. Structure, experience and transparency can be gained over time, but empathy is an emotion that every good project leader needs to own.</ins></div></td></tr>
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<tr><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><br></td><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><br></td></tr>
<tr><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>== Annotated Bibliography ==</div></td><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>== Annotated Bibliography ==</div></td></tr>
</table>S202854