Question: How do the predictions of self-determination theory apply to intrinsic and extrinsic

rewards?

Answer: The capacity for people to choose their paths and make decisions for themselves is
known as self-determination. According to the theory of self-determination, which examines
human motivation and personality, people can develop a sense of self-determination after their
demands for autonomy, relatedness, and competence are achieved. The theory predicts that these
needs play a significant role in shaping individuals' behaviors, including their response to
rewards. This applies to both intrinsic and extrinsic rewards.

Intrinsic: The internal gratification, pleasure, or sense of achievement people get from doing
something is considered an intrinsic reward. These benefits match what self-determination theory
predicts. Experiencing intrinsic rewards helps people feel more independent. As individuals
participate in activities consistent with their interests, values, and personal targets, they have a
sense of empowerment and control. People feel more driven and involved in their work when
they have autonomy. Furthermore, intrinsic incentives support people's sense of competence.
People who participate in activities that they find genuinely fulfilling are more likely to feel that
they've grown, accomplished something, and gained mastery. People are much more inspired to
keep up with their activities and look for chances for personal growth when they feel competent.
Additionally, intrinsic incentives foster a sense of relatedness. People prefer to connect with
people with similar interests or ideals when involved in activities that they find entertaining or
significant. Humans need social engagement and connection to feel fundamental, and this sense
of relatedness provides it. It can result in more cooperation, encouragement, and a feeling of
community, which helps boost people's motivation and general well-being.

Extrinsic: Conversely, extrinsic rewards are outside and frequently material means of
acknowledgment or compensation, including cash bonuses, material goods, or compliments from
others. Although these incentives have the potential to affect people's motivation, using extrinsic
rewards carefully is necessary to preserve people's intrinsic drive.

The self-determination hypothesis states that extrinsic incentives serve as external motivators.
They are given out by outside parties to promote particular actions or results. When viewed as a
means of improving control and choice or as informational feedback, extrinsic incentives may, in
some circumstances, strengthen people's feelings of autonomy. For instance, receiving
performance feedback may help people become more competent and skilled by giving them
information to work with. Extrinsic incentives, however, can weaken people's feelings of
autonomy and intrinsic drive if viewed as manipulative or dominating. People may lose some of
their intrinsic motivation if they believe that actions are only motivated by external rewards
rather than by their interests and morals. The overjustification effect is the name given to this
process.
Moreover, a feeling of external control may result from the overuse of extrinsic incentives.
People's feelings of autonomy and intrinsic motivation may be diminished when they believe that
the only thing motivating them to behave is the promise of external benefits. Therefore, it's
critical to apply extrinsic rewards that reduce perceptions of external control and protect people's
autonomy.

In conclusion, self-determination theory sheds light on how internal and external rewards
influence people's motivation. Incentives are intrinsically motivating and correspond with
people's psychological demands for competence, relatedness, and autonomy. When handled
properly, extrinsic rewards may serve as powerful external motivators—but only if viewed as
supporting and educational rather than dominating. Self-determination theory offers insights into
how individuals and organizations may create incentive systems that improve motivation, job
satisfaction, and general well-being.